The Carlyle Group (CG) Q4 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024, meeting or surpassing all financial targets, with Fee Related Earnings (FRE) over $1.1 billion, a near 30% increase year-over-year, and robust inflows across all business segments.

• Assets under management (AUM) grew 4% to $441 billion, driven by $40.8 billion in fundraising inflows and strong deployment across segments.

• Net income attributable to common stockholders was $1.02 billion for 2024, compared to a net loss of $608 million in 2023, reflecting higher performance allocations and investment income.

• Returned over $1 billion to shareholders through $503 million in dividends and $555 million in share repurchases and equity award settlements.

• Strategic focus on growth areas: global credit, insurance, investment solutions, global wealth, and capital markets, which delivered 40% revenue growth over two years.

Financial highlights

• Distributable Earnings (DE) reached $1.53 billion for 2024, or $3.66 per share, with Fee Related Earnings at $1.1 billion, both records.

• Total revenues increased 83% year-over-year to $5.43 billion, driven by a $2.1 billion increase in performance allocations and higher management fees.

• Fund management fees rose 7% to $2.19 billion, with growth in Global Credit and Global Investment Solutions offsetting a decline in Global Private Equity.

• Transaction fees more than doubled to $164 million in 2024.

• Compensation and benefits expense increased 14% to $2.70 billion, reflecting higher performance-related compensation and equity-based awards.

Outlook and guidance

• 2025 FRE expected to grow 6% over 2024, with potential upside from market opportunities.

• Management expects continued fundraising momentum, especially in credit and investment solutions, but notes that buyout fund sizes are declining, which may pressure future management fees.

• FRE margin anticipated to remain at 2024 levels.

• Inflows in 2025 projected to be similar to 2024, with credit expected to raise the most capital.

• Anticipates launching the next U.S. buyout fund in late 2025, with fee activation in 2026.