The Carlyle Group (CG) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 results with net income of $596 million, driven by strategic actions, increased investment activity, and compensation realignment, resulting in best-ever Fee Related Earnings (FRE) and margin, and a nearly 30% quarterly increase in net accrued performance revenues.

• Assets under management (AUM) reached $447.4 billion as of September 30, 2024, up 17% year-over-year, with $8.8 billion in new capital inflows in Q3 and $43 billion raised over the past 12 months.

• Declared a $0.35 per share quarterly dividend and repurchased $150 million in shares in Q3, with $0.9 billion repurchase capacity remaining.

• Net accrued performance revenues increased by over $600 million to $2.8 billion, representing almost $8 of pre-tax earnings per share.

Financial highlights

• Q3 2024 net income attributable to common stockholders was $596 million, or $1.63 per diluted share, up from $81 million and $0.22 per share in Q3 2023.

• Total revenues for Q3 2024 were $2.64 billion, a 268% increase from Q3 2023, driven by a sharp rise in performance allocations and investment income.

• Fee Related Earnings (FRE) for Q3 2024 were $278 million at a 47% margin, up 36% year-over-year.

• Distributable Earnings (DE) for Q3 2024 were $367 million, or $0.95 per share post-tax, and $1.14 billion for the nine months ended September 30, 2024.

• Accrued performance allocations, net of giveback obligations, reached $7.2 billion, up 27% from June 30, 2024.

Outlook and guidance

• Management expects to capitalize on market opportunities, targeting $40 billion in capital inflows for 2024, and anticipates increased activity in carry funds as deal and IPO markets recover.

• On track to achieve the 2024 FRE target of $1.1 billion, representing nearly 30% year-over-year growth.

• Expects lower management fees in Global Private Equity due to smaller buyout fund sizes, partially offset by growth in Credit and Investment Solutions.