The Carlyle Group (CG) Goldman Sachs 2024 U.S. Financial Services Conference summary

Strategic repositioning and performance

• Systematic repositioning for growth included realigning compensation, new leadership, and a focus on share repurchases.

• Achieved record fee-related earnings (FRE) of $1.1 billion, up 33% year-over-year, and record AUM at $450 billion.

• Margins increased by 1,100 basis points, with a target of 50% FRE margin in sight.

• Fundraising momentum is strong, with $27 billion raised and $13 billion deployed in 2024.

• Share count is now stable to declining, reversing years of dilution.

Market environment and outlook

• Post-election certainty and clear business policies have created a highly favorable business environment.

• Portfolio companies showed 7-10% EBITDA growth in 2024, with some sectoral slowdowns but overall strong performance.

• Record year for CLO business and significant growth in accrued carry.

• Monetization and deployment activity expected to remain strong into 2025.

Fundraising and business segment growth

• Private equity remains the core, but real estate and infrastructure are growing, with real estate expected to expand in 2024.

• Credit business has grown at a 30% CAGR over five years, now at $200 billion.

• Solutions (secondaries) business is experiencing dramatic growth, offsetting slower private equity fundraising.

• Large U.S. buyout fund launch expected at end of 2025, likely larger than its predecessor.