The Carlyle Group (CG) Q2 2024 earnings summary

Executive summary

• Achieved record Fee Related Earnings (FRE), FRE margins, and assets under management (AUM) of $435 billion as of June 30, 2024, with strong fundraising momentum and improved market sentiment driving business activity.

• Net income attributable to common stockholders was $148.2 million for Q2 2024, a turnaround from a net loss in Q2 2023; distributable earnings for Q2 2024 were $343.2 million.

• Raised $18 billion year to date and $41 billion over the last 12 months, with a 2024 fundraising target of $40 billion.

• Announced major transactions, including a $10 billion loan portfolio acquisition from Discover Financial Services and the $3 billion sale of Cogentrix Energy.

• Activity accelerated in the first half of 2024, positioning the company and stakeholders to benefit as the environment improves.

Financial highlights

• Total revenues for Q2 2024 were $1.07 billion, up 131% year-over-year, driven by positive investment income and higher fund management fees.

• Fee Related Earnings reached $273 million in Q2 2024, up over 30% year-over-year, with a FRE margin of 46%.

• Management fees in global credit and solutions grew double digits year-over-year, reaching record levels.

• Transaction and advisory fees up almost 60% year-over-year, with expectations for a record year.

• Compensation and benefits expense increased 93% to $475.7 million in Q2 2024, mainly due to higher performance allocation-related compensation and equity-based awards.

Outlook and guidance

• On track to achieve 2024 financial targets, including $1.1 billion in FRE and $40 billion in capital inflows.

• Management expects higher FRE and significant capital raising in the second half of 2024, with a strong pipeline of IPOs and sales.

• Future earnings and margins depend on investment performance, fundraising pace, capital deployment, and regulatory changes.