8-K: Carlyle Group Reports Strong 2024 Financial Results, Meeting All Targets

The Carlyle Group Inc. announced strong fourth quarter and full-year 2024 financial results, meeting all financial targets and reporting record Fee Related Earnings and FRE margin.

Summary

• The Carlyle Group Inc. reported its unaudited results for the fourth quarter and full-year ended December 31, 2024.
• For the fourth quarter and full-year 2024, U.S. GAAP results included income before provision for income taxes of $265 million and $1.4 billion, respectively, and a margin on income before provision for income taxes of 25.7% and 25.7%, respectively.
• The Board of Directors has declared a quarterly dividend of $0.35 per common share to holders of record at the close of business on February 21, 2025, payable on February 28, 2025.
• For full-year 2024, the Board of Directors declared $1.40 in aggregate distributions to common shareholders.
• As of December 31, 2024, Carlyle had $441 billion of assets under management.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong financial results, meeting targets, and increasing AUM. The management's comments are optimistic, and the dividend declaration is a positive sign for investors.

Positives

• Carlyle met all financial targets for 2024.
• Record Fee Related Earnings and FRE margin were achieved.
• Robust inflows were reported.
• The company declared a consistent quarterly dividend of $0.35 per share.
• Total Assets Under Management increased by 4% year-over-year.
• Fee Related Earnings increased 29% from $859 million in FY 2023 to $1.1 billion in FY 2024.
• Deployment increased 48% from $28.8 billion in FY 2023 to $42.7 billion for FY 2024.
• Realized Proceeds from carry funds increased 39% from $20.6 billion in FY 2023 to $28.6 billion for FY 2024.
• Pending Fee-earning AUM of $23 billion was up from $15 billion one year ago
• Available Capital for investment increased 10% year-over-year.

Negatives

• Fee-earning Assets Under Management decreased 1% year-over-year, driven by a decrease in Global Private Equity.
• Total AUM for Global Private Equity was down 3% from the prior quarter as realizations in Q4 2024 more than offset Inflows of $2.3 billion.
• Total AUM for Global Credit was a 1% decrease quarter over quarter, as market activity and outflows more than offset Inflows of $8.0 billion in Q4 2024.

Risks

• The press release contains forward-looking statements subject to various risks, uncertainties, and assumptions as detailed in the company's filings with the SEC.
• Factors described in the Risk Factors section of the Annual Report on Form 10-K for the year ended December 31, 2023, could cause actual outcomes or results to differ materially from those indicated in forward-looking statements.

Future Outlook

Carlyle expects a high level of activity across its platform in 2025 and remains focused on driving long-term shareholder value.

Management Comments

• Carlyle delivered a strong 2024, meeting every financial target we set, including record Fee Related Earnings and FRE margin, and robust inflows.
• As we enter 2025, we expect a high level of activity across our platform and remain focused on driving long-term shareholder value.

Industry Context

This announcement reflects the ongoing trends in the alternative asset management industry, where firms are focused on growing AUM, generating fee-related earnings, and delivering returns to investors.

Comparison to Industry Standards

• Blackstone's Q4 2024 results showed a similar focus on fee-related earnings and AUM growth, indicating a broader industry trend.
• Apollo Global Management also reported strong inflows and deployment figures, suggesting a competitive landscape for capital allocation.
• Compared to KKR, Carlyle's FRE margin of 46% is competitive, reflecting efficient management of fee-generating assets.
• Similar to Ares Management, Carlyle's focus on Global Credit and Investment Solutions segments aligns with the industry's diversification strategies.

Stakeholder Impact

• Shareholders will benefit from the declared quarterly dividend of $0.35 per share.
• Investors will be encouraged by the strong financial performance and positive outlook.
• Employees may benefit from the company's success through compensation and career opportunities.
• Portfolio companies may benefit from Carlyle's continued investment and expertise.

Next Steps

• Carlyle will host a conference call on February 11, 2025, to discuss the fourth quarter and full-year 2024 financial results.

Key Dates