On Tuesday, Baxter International Inc BAX agreed to sell its Kidney Care segment, Vantive, for $3.8 billion to The Carlyle Group Inc CG Baxter will receive approximately $3.5 billion in cash, with net after-tax proceeds currently estimated at approximately $3 billion. Baxter announced its intention to create a standalone kidney care company in January 2023 as part of its broader strategic realignment designed to enhance future performance and create value for all stakeholders. In March 2024, Baxter announced ...

The Carlyle Group Inc. (CG) reported second-quarter 2024 post-tax distributable earnings per share of 78 cents, which missed the Zacks Consensus Estimate of 84 cents. The bottom line compared unfavorably with 88 cents reported in the year-ago quarter. Results were affected due to a decrease in segment fee and realized performance revenues. However, a rise in assets under management (AUM) balance and lower expenses offered some support. The company's shares lost 7.5% following the release of its second-quart ...

The Carlyle Group CG reported worse-than-expected second-quarter financial results on Monday. Carlyle reported that in the second quarter of FY24, the adjusted EPS of $0.78 missed the consensus of $0.83, and Total Segment revenues of $788.0 million missed the consensus of $827.5 million. The company inked a deal to sell Cogentrix Energy to Quantum Capital Group and its affiliates for around $3 billion. The Cogentrix platform includes 5.3 gigawatts of efficient natural gas-fired power plants across PJM, ERCO ...

Financial Data and Key Metrics - Record FRE of $539 million for the first half of 2024, up 35% YoY [11] - Record FRE margins achieved in the first half of 2024 [5] - Record AUM of $435 billion in Q2 2024, up 13% YoY [10] - DE per share of $1.79 year-to-date, up 19% YoY [10] - Share repurchases of $330 million in the first half of 2024, with $1.1 billion remaining in the repurchase authorization [10] Business Line Data and Key Metrics - Global Credit: Raised $5 billion in Q2 2024, with strong activity in opportunistic and real asset credit strategies [7] - CLO business: Second busiest first six months in 20-year history, ended Q2 as the world's largest CLO manager [8] - Global Investment Solutions: Deployed $9 billion and raised $12 million over the last 12 months [8] - Global Wealth: CTAC private credit product had a strong first half, and CAPM wealth product added to new distribution platforms [8] Market Data and Key Metrics - Asset-backed finance: Announced a $10 billion transaction to acquire a portfolio of loans from Discover Financial Services [5] - Exit activity: Sale of Cogentrix Energy at a valuation of nearly $3 billion, with a considerable pipeline of active IPO and sale processes [6] - Fundraising: Raised $18 billion year-to-date and over $40 billion in the last 12 months, targeting $40 billion for 2024 [7][12] Company Strategy and Industry Competition - Focus on asset-backed finance, credit, and insurance businesses to drive value for clients and generate transaction fees [6] - Optimistic about the investment environment, with increased activity levels and robust competition in exit paths [13] - Strategic focus on transaction and advisory fees, with a 60% YoY increase in Q2 2024 [11] Management Commentary on Operating Environment and Future Outlook - Despite recent market volatility, underlying fundamentals support improving activity across the platform for the rest of the year [5] - Expectation of increased exit activity in the second half of 2024, with several large transactions in the pipeline [6] - Confidence in achieving the $40 billion fundraising target for 2024, with strong momentum across all segments [12] Other Important Information - Non-GAAP financial measures used during the call, with reconciliation to GAAP provided in the earnings release [3] - Forward-looking statements made with inherent risks and uncertainties, as identified in the Risk Factors section of the annual report [4] Q&A Session Summary Question: Market sentiment and capital-raising outlook for PE - Management views recent market volatility as liquidity-driven and risk sentiment-driven, with no change in the underlying economic fundamentals [15] - Confidence in the fundraising outlook, with strong momentum across the platform and multiple product strategies in the market [18] Question: Fundraising in real estate and key contributors - Strong momentum in real estate fundraising, with a number materially higher than disclosed in the earnings release [12] - Expectation of continued strength in Solutions business, credit opportunities fund, and CLO activity [18] Question: Outlook for fundraising in CEP VI and CAP VI - CAP VI expected to be smaller than its predecessor due to geopolitical headwinds, but Asia remains an important market with attractive opportunities [19] Question: Transaction advisory fees outlook - Transaction and advisory fees up 60% YoY, with a record year expected driven by a conducive transaction environment [21] Question: Deployment outlook and impact of risk-off sentiment - Long-term investment focus, with a strong pipeline of transaction activity expected in the second half of 2024 [24] - $20 billion of pending fee-earning AUM expected to turn on over the coming quarters [24] Question: FRE comp ratio and baseline expectations - FRE comp ratio in the 30% to 35% range, with expectations to operate within this range plus or minus 1% to 2% [28] Question: Merger of BDCs and direct lending strategy - Merger of public and private BDCs expected to close in Q1 2025, providing scale and financial benefits [30] Question: Management fees outlook in Global Private Equity - Expectation of flattish management fees in Global Private Equity, with strength in real estate and other parts of the business [32] Question: Progress in the retail channel and PE product design - Strong momentum in retail-focused products, with a focus on scale and long-term performance [34] Question: Capital allocation and strategic M&A - Active share repurchases with $1.1 billion remaining, and openness to strategic M&A if it aligns with growth and shareholder returns [37] Question: Contribution from Fortitude and insurance initiatives - Fortitude partnership performing well, with a focus on private investment grade and capital-light growth opportunities [41] Question: Stock-based comp modeling - Elevated stock-based comp in 2024 due to performance stock unit grants, with a step down expected in 2025 [44]

HOUSTON, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Quantum Capital Group and its affiliates ("Quantum") today announced that it has entered into an agreement to acquire Cogentrix Energy ("Cogentrix" or the "Company"), a premier U.S. independent power producer, from funds managed by Carlyle (NASDAQ: CG) for a total consideration of approximately $3 billion. The Cogentrix platform is comprised of 5.3 gigawatts of efficient and flexible natural gas-fired power plants, located throughout PJM, ERCOT, and ISO-NE, which s ...

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NEW YORK, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, "we," "us," "our," "CGBD" or the "Company") (NASDAQ: CGBD) today announced its financial results for its second quarter ended June 30, 2024. Justin Plouffe, CGBD's Chief Executive Officer said, "Our core middle-market strategy and active approach to portfolio management continued to drive strong performance in the second quarter of 2024, as we maintained a dynamic approach to origination i ...

Provides meaningful scale and diversity to CGBD through addition of a Carlyle-managed portfolio Carlyle to exchange CGBD convertible preferred stock for CGBD common stock at NAV, eliminating current 5% – 8% preferred stock dilution overhang Advisors agreed to cover transaction costs in certain circumstances up to a total cap of $5 million NEW YORK, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, "we," "us," "our," "CGBD" or the "Company") (NASDAQ ...

Core Viewpoint - Carlyle Secured Lending, Inc. reported strong performance in Q2 2024, driven by its middle-market strategy and active portfolio management, with expectations for increased deal activity through year-end [2] Financial Performance - Net investment income for Q2 2024 was $0.51 per common share [2] - Net asset value per common share decreased by 0.7% to $16.95 from $17.07 as of March 31, 2024 [2] - Total fair value of investments was $1.7 billion as of June 30, 2024 [2] Mergers and Acquisitions - On August 2, 2024, the company entered into a Merger Agreement with Carlyle Secured Lending III, which involves a two-step merger process [3] - The transaction is expected to close during the first fiscal quarter of 2025, subject to customary closing conditions [3] Dividends - The Board of Directors declared a base quarterly common dividend of $0.40 per share and a supplemental common dividend of $0.07 per share, payable on October 17, 2024 [5] - A cash dividend of $0.438 per Preferred Share was declared for the period from April 1, 2024, to June 30, 2024 [5] Company Overview - Carlyle Secured Lending, Inc. is an externally managed specialty finance company focused on lending to middle-market companies [7] - Since its inception in May 2013, the company has invested approximately $8.5 billion in aggregate principal amount of debt and equity investments [7] - The company is regulated as a business development company under the Investment Company Act of 1940 [8]

Provides meaningful scale and diversity to CGBD through addition of a Carlyle-managed portfolio Carlyle to exchange CGBD convertible preferred stock for CGBD common stock at NAV, eliminating current 5% – 8% preferred stock dilution overhang Advisors agreed to cover transaction costs in certain circumstances up to a total cap of $5 million NEW YORK, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, "we," "us," "our," "CGBD" or the "Company") (NASDAQ ...