Core Insights - The Carlyle Group Inc. has announced an agreement to acquire intelliflo from Invesco Ltd. to enhance its exposure to financial software [1] Group 1: Acquisition Details - intelliflo, founded in 2004 and based in London, supports over 30,000 professionals across 2,600 advisory firms, managing approximately £450 billion in client assets [2] - The acquisition includes intelliflo's cloud-based practice management software in the UK and its US subsidiaries, RedBlack and intelliflo Portfolio, which serve Registered Investment Advisors (RIAs) [3][9] - The total purchase price is valued at up to $200 million, with $135 million payable at closing expected in the fourth quarter of 2025, and up to an additional $65 million in potential future earn-outs [4][9] Group 2: Strategic Implications - The acquisition is expected to accelerate Carlyle's growth in wealthtech across the UK, the United States, and Australia [4] - intelliflo's US subsidiaries will be carved out into a standalone entity named RedBlack, focusing on supporting RIAs, while intelliflo will concentrate on the UK and Australian markets [5][9] - Carlyle aims to scale both platforms independently while driving innovation and client-centric growth by combining intelliflo's UK leadership with RedBlack's US specialization [7] Group 3: Broader Strategy - The acquisition is backed by Carlyle Europe Technology Partners V, a €3 billion fund focused on technology investments across Europe, with a strong track record in financial software and vertically focused SaaS [6] - Recent investments by CETP include SER Group, CSS, SurePay, and Calastone, indicating a commitment to expanding its portfolio in the financial software sector [6] Group 4: Market Performance - Over the past year, shares of Carlyle Group have surged 62.3%, significantly outperforming the industry's growth of 17.9% [8]

Core Viewpoint - Carlyle has agreed to acquire intelliflo from Invesco, enhancing its position in the UK financial advisory software market and expanding into Australia [1][3]. Company Overview - Carlyle is a global investment firm with $465 billion in assets under management as of June 30, 2025, focusing on private capital across various sectors [8]. - Invesco is a global independent investment management firm managing $2 trillion in assets as of June 30, 2025, offering a range of investment capabilities [11]. - intelliflo, founded in 2004, provides cloud-based practice management software for independent financial advisors in the UK, supporting over 30,000 users and managing approximately £450 billion in client assets [3][9]. - RedBlack, a US-based subsidiary of intelliflo, specializes in SaaS-based portfolio rebalancing tools and will operate as a standalone business post-acquisition [1][4][10]. Transaction Details - The acquisition price is up to $200 million, consisting of $135 million at closing and up to $65 million in potential future earn-outs [2]. - The transaction is expected to close in the fourth quarter of 2025, subject to certain conditions [2]. Strategic Implications - The acquisition aims to strengthen intelliflo's market position in the UK and accelerate growth in Australia, while RedBlack will focus on the US market [4]. - Carlyle will support the separation of both businesses from Invesco and partner with their leadership teams to drive growth initiatives [4][6]. Market Position - intelliflo's platform integrates with over 120 third-party applications, providing comprehensive solutions including CRM, financial planning, and compliance workflows [3]. - RedBlack supports over $825 billion in assets across its platforms, emphasizing its role in the wealth management industry [10].

Core Viewpoint - Carlyle Group (CG.US) has agreed to acquire Intelliflo, a software developer supported by Invesco (IVZ.US), for up to $200 million, consisting of an initial payment of $135 million and potential future performance payments of up to $65 million [1] Group 1 - Intelliflo, headquartered in London, was founded in 2004 and its financial planning and management software platform is utilized by approximately 2,600 consulting firms and over 30,000 professionals [1] - As part of the transaction, Intelliflo's U.S. subsidiary will be renamed RedBlack and will operate as an independent entity managed by a dedicated team [1] - Invesco acquired Intelliflo from Hg in 2018, although the specific transaction amount was not disclosed [1]

Core Insights - Carlyle Group has acquired a 5% stake in Shenzhen Mindray Bio-Medical Electronics Co., a leading biopharmaceutical company in China, indicating a strategic investment in the growing healthcare sector [1][2] - Mindray, founded in 1998, is among the top 20 biopharmaceutical companies in China and is recognized for its innovative products in chronic disease treatment, particularly in cardiovascular care [1][2] Company Overview - Shenzhen Mindray Bio-Medical Electronics Co. operates in two main segments: finished pharmaceuticals and medical devices, and is actively developing innovative drugs for chronic diseases [1] - The company has made significant progress in expanding its product pipeline through self-research, strategic acquisitions, and licensing agreements [2] Market Dynamics - The Chinese pharmaceutical market is entering a stable long-term growth phase due to factors such as an aging population, increased health awareness, and economic growth [1] - There is a rising demand for high-quality, cost-effective, and innovative products, which presents opportunities for leading companies that successfully transition to a robust drug pipeline [1] Strategic Partnership - The partnership between Carlyle and Mindray aims to leverage Carlyle's industry expertise and global resources to enhance Mindray's growth both in China and internationally [2] - Mindray's management expresses confidence that Carlyle's investment will optimize operations and expand its international influence [2] Investment History - Carlyle Group has a long-standing investment history in the healthcare sector, with over 80 projects and a total equity investment exceeding $13.4 billion globally [3] - Notable investments in China include various healthcare companies, showcasing Carlyle's commitment to the medical and pharmaceutical industries [3]

Group 1 - The private equity giant Carlyle Group is nearing a significant deal to sell its Dutch tech services company HSO to Bain Capital, with an estimated valuation of approximately $1 billion [1][2] - HSO's management plans to reinvest in the business through this transaction, indicating a commitment to the company's future development [1] - The deal reflects a resurgence in the private equity market after a prolonged period of inactivity, driven by investor demands for accelerated capital deployment and cash flow [1] Group 2 - HSO specializes in designing, implementing, and operating business application systems based on Microsoft cloud technologies, serving around 1,200 clients globally with approximately 2,800 employees [2] - Carlyle Group made a strategic investment in HSO in 2019 and has since expanded its business through multiple acquisitions, including the purchase of cloud transformation service provider Motion10 in 2022 [2] - If the transaction proceeds, it will mark another landmark deal in the private equity sector, enhancing Bain Capital's influence in the cloud computing and enterprise services space [2]

Group 1 - Jefferies raised the target price for Blackstone Group from $176 to $207 [1] - Jefferies increased the target price for Carlyle Group from $54 to $66 [1]

Group 1 - The core viewpoint of the article indicates that Carlyle Group has taken a long position in the popular brokerage firm Robinhood during the second quarter, as revealed by the 13F report [1] - Carlyle Group has increased its holdings in StandardAero, indicating confidence in the company's performance [1] - The firm has completely exited its positions in WeRide, Seacor Marine, Spruce Bio, and Instacart, suggesting a strategic shift in investment focus [1] Group 2 - Carlyle Group has reduced its stakes in Smart Share, Global, and Complete Solaria, reflecting a potential reevaluation of these investments [1] - The firm's significant holdings now include StandardAero, Soleno, Phathom Pharma, Pony AI, and Invitation Homes, highlighting a diversified investment strategy [1]

[PART I – FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for The Carlyle Group Inc. as of June 30, 2025, and for the three and six-month periods then ended, showing significant increases in net income and total assets [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $25.1 billion from $23.1 billion at year-end 2024, driven by growth in investments of Consolidated Funds, while total liabilities rose to $18.4 billion and total equity increased to $6.7 billion Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$25,067.8** | **$23,103.5** | | Cash and cash equivalents | $1,275.8 | $1,266.0 | | Investments | $11,203.1 | $10,936.7 | | Investments of Consolidated Funds | $9,857.5 | $7,782.4 | | **Total Liabilities** | **$18,350.2** | **$16,755.9** | | Debt obligations | $2,155.3 | $2,143.5 | | Loans payable of Consolidated Funds | $8,056.1 | $6,864.2 | | Accrued compensation and benefits | $5,598.9 | $5,446.6 | | **Total Equity** | **$6,717.6** | **$6,347.6** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, total revenues surged to $1.57 billion from $1.07 billion in the prior-year quarter, primarily due to a significant increase in performance allocations, leading to a net income of $319.7 million, or $0.89 per basic share Key Operating Results (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$1,572.9** | **$1,069.7** | **$2,546.0** | **$1,758.1** | | Fund management fees | $620.4 | $534.4 | $1,206.5 | $1,058.0 | | Performance allocations | $638.8 | $198.2 | $861.7 | $41.2 | | **Total Expenses** | **$1,179.1** | **$845.8** | **$1,987.3** | **$1,406.5** | | **Net Income Attributable to CG** | **$319.7** | **$148.2** | **$449.7** | **$213.8** | | Basic EPS | $0.89 | $0.41 | $1.25 | $0.59 | | Diluted EPS | $0.87 | $0.40 | $1.23 | $0.58 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities significantly improved to $520.9 million, with net cash provided by financing activities totaling $526.8 million, resulting in a slight increase in total cash Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(520.9) | $(1,198.6) | | Net cash used in investing activities | $(34.2) | $(36.9) | | Net cash provided by financing activities | $526.8 | $717.2 | | **Increase (decrease) in cash** | **$10.4** | **$(525.0)** | [Notes to the Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies, including consolidation of VIEs, revenue recognition for performance allocations, and fair value measurement, alongside significant disclosures on investments, borrowings, and equity-based compensation - The company consolidates Variable Interest Entities (VIEs) where it is the primary beneficiary. As of June 30, 2025, assets and liabilities of consolidated VIEs were **$10.6 billion** and **$9.1 billion**, respectively[59](index=59&type=chunk) - Performance allocations (carried interest) are accounted for under ASC 323 as earnings from financial assets and are recognized based on the amount that would be due if the funds were hypothetically liquidated at the reporting date[70](index=70&type=chunk)[87](index=87&type=chunk) - On March 31, 2025, the company restructured its strategic investment in NGP, resulting in an impairment charge of **$92.5 million** on its investment in NGP Management and a **$38 million** reduction in accrued performance allocations[195](index=195&type=chunk)[196](index=196&type=chunk)[199](index=199&type=chunk) - The company's Board of Directors reset the share repurchase authorization to **$1.4 billion** effective February 6, 2024. As of June 30, 2025, **$572.0 million** of repurchase capacity remained[305](index=305&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=72&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance amidst a volatile macroeconomic environment, highlighting strong investment and realization pace, segment-specific results, and robust liquidity management strategies [Overview and Business Trends](index=72&type=section&id=Overview%20and%20Business%20Trends) Management observed a volatile Q2 2025, marked by tariff concerns and strong financial market performance, with ongoing risks from trade policy changes, subdued M&A deal count, and continued strong investment and realization activity for Carlyle - The market faced volatility from higher-than-expected tariffs, though it ultimately performed well, with the S&P 500 up **10.6%** in Q2 2025. However, changes in trade policy pose ongoing risks to corporate profit margins and global growth[382](index=382&type=chunk)[385](index=385&type=chunk) - Global M&A activity was subdued in terms of deal count (**8,700 transactions**, the lowest since 2005), despite high aggregate dollar volumes flattered by mega-deals. Sponsor-led exit activity was also sluggish[388](index=388&type=chunk) - Carlyle's investment activity remained strong, deploying **$14.6 billion** and realizing **$7.6 billion** in proceeds in Q2 2025, significantly higher than Q2 2024. The carry fund portfolio appreciated **2%** during the quarter[390](index=390&type=chunk)[391](index=391&type=chunk) [Consolidated Results of Operations](index=85&type=section&id=Consolidated%20Results%20of%20Operations) The company's consolidated results for Q2 2025 show a 47% increase in total revenues to $1.57 billion, driven by a 222% surge in performance allocations, leading to a 116% increase in net income attributable to common stockholders Consolidated Results of Operations Summary (in millions) | Metric | Q2 2025 | Q2 2024 | Change % | YTD 2025 | YTD 2024 | Change % | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$1,572.9** | **$1,069.7** | **47%** | **$2,546.0** | **$1,758.1** | **45%** | | Fund management fees | $620.4 | $534.4 | 16% | $1,206.5 | $1,058.0 | 14% | | Performance allocations | $638.8 | $198.2 | 222% | $861.7 | $41.2 | NM | | **Total Expenses** | **$1,179.1** | **$845.8** | **39%** | **$1,987.3** | **$1,406.5** | **41%** | | **Net Income Attributable to CG** | **$319.7** | **$148.2** | **116%** | **$449.7** | **$213.8** | **110%** | - The increase in fund management fees for the six months ended June 30, 2025 was driven by the commencement of investment periods for newly raised funds and higher transaction fees, which more than doubled to **$122.5 million** from **$50.0 million** in the prior year period[464](index=464&type=chunk)[468](index=468&type=chunk) - The decrease in Principal Investment Income for the six months ended June 30, 2025 was primarily due to a **$92.5 million** impairment charge and a **$38.0 million** reduction in accrued carry related to the NGP restructuring[478](index=478&type=chunk) [Segment Analysis](index=95&type=section&id=Segment%20Analysis) This section details the performance of Carlyle's three segments, showing Global Private Equity's Distributable Earnings (DE) slightly down, Global Credit's DE up 27% due to higher fee-related earnings, and Carlyle AlpInvest's DE surging 96% from increased fund management fees and principal investment income Distributable Earnings by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Global Private Equity | $231.9 | $199.1 | $497.5 | $512.2 | | Global Credit | $120.9 | $99.8 | $231.4 | $181.9 | | Carlyle AlpInvest | $78.2 | $44.3 | $157.5 | $80.4 | | **Total Distributable Earnings** | **$431.0** | **$343.2** | **$886.4** | **$774.5** | Fee Related Earnings by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Global Private Equity | $143.6 | $151.6 | $284.8 | $312.7 | | Global Credit | $111.4 | $81.3 | $215.3 | $152.5 | | Carlyle AlpInvest | $68.3 | $40.1 | $133.8 | $74.1 | | **Total Fee Related Earnings** | **$323.3** | **$273.0** | **$633.9** | **$539.3** | [Liquidity and Capital Resources](index=118&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $1.3 billion in cash and equivalents and $1.0 billion available credit, utilizing capital for business growth, debt service, and shareholder returns through dividends and share repurchases, with detailed contractual obligations - As of June 30, 2025, Carlyle had approximately **$1.3 billion** in cash and cash equivalents and **$1.0 billion** of available capacity under its senior revolving credit facility[598](index=598&type=chunk)[599](index=599&type=chunk) - The company maintains a quarterly dividend policy of **$0.35 per common share**. Dividends paid during the first six months of 2025 totaled **$252.7 million**[621](index=621&type=chunk)[622](index=622&type=chunk) - During the six months ended June 30, 2025, the company paid **$280.1 million** to repurchase or retire **5.6 million shares**, including shares withheld for tax obligations on equity awards[628](index=628&type=chunk)[638](index=638&type=chunk) Contractual Obligations Summary as of June 30, 2025 (in millions) | Obligation Type (Carlyle Operating Entities) | Total | | :--- | :--- | | Debt obligations | $2,176.7 | | Interest payable | $1,997.9 | | Operating lease obligations | $590.4 | | Capital commitments to Carlyle funds (Company portion) | $674.8 | | Tax receivable agreement payments | $71.6 | | **Total** | **$5,569.5** | [Quantitative and Qualitative Disclosures About Market Risk](index=129&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is linked to the fair value of its fund investments, with no material changes observed during the first six months of 2025 - The company's main market risk is tied to the fair value of its funds' investments, which affects management fees, incentive fees, and performance allocations[670](index=670&type=chunk) - There was no material change in market risks during the six months ended June 30, 2025[672](index=672&type=chunk) [Controls and Procedures](index=129&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of the end of the reporting period[674](index=674&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[675](index=675&type=chunk) [PART II – OTHER INFORMATION](index=131&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=131&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal matters, including the Authentix Matter concerning breach of fiduciary duty and the Tax Receivable Agreement Matter regarding stockholder payments, with outcomes not expected to materially exceed accrued amounts - The company is a defendant in the Authentix Matter, where former minority shareholders allege breach of fiduciary duty in the sale of a portfolio company. A trial court decision in favor of Carlyle is currently on appeal[255](index=255&type=chunk) - The company is also involved in the Tax Receivable Agreement Matter, a stockholder lawsuit challenging payments made to certain officers and directors in connection with the company's 2020 corporate conversion[256](index=256&type=chunk) [Risk Factors](index=131&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the comprehensive discussion of potential risks and uncertainties detailed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - For a discussion of potential risks and uncertainties, the report refers to Item 1A, "Risk Factors," in the Annual Report on Form 10-K for the year ended December 31, 2024[678](index=678&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=131&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased approximately 2.2 million shares of common stock for $100.0 million under its share repurchase program, with $572.0 million remaining authorized as of June 30, 2025 Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Total Value (millions) | | :--- | :--- | :--- | :--- | | April 2025 | — | — | — | | May 2025 | 835,494 | $45.84 | $38.3 | | June 2025 | 1,338,472 | $46.13 | $61.7 | | **Total Q2** | **2,173,966** | **-** | **$100.0** | - The maximum remaining value of shares that may be purchased under the plan was **$572.0 million** as of June 30, 2025, factoring in both open market repurchases and net share settlements of equity-based awards[684](index=684&type=chunk) [Exhibits](index=132&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, credit agreements, compensatory plan forms, and officer certifications

Core Insights - Carlyle Group Inc. (CG) shares reached a 52-week high of $64.09, closing at $61.57, with a 57.5% increase over the past year, outperforming the industry growth of 22.9% [1][7] - The strong performance is attributed to solid Q2 2025 results, with post-tax distributable earnings per share of 91 cents, a 16.7% increase year-over-year, and segmental revenues rising 24.7% [4][5] Price Performance - CG's stock has shown significant growth, gaining 55.6% over the past year [7] - The stock's performance reflects investor optimism following strong earnings and revenue growth [4][5] Revenue and Earnings Growth - Fee Related Earnings (FRE) reached a record high of $323 million, up 18.3% year-over-year, prompting an increase in the full-year 2025 FRE growth outlook from 6% to approximately 10% [5] - The company's revenues have shown a CAGR of 10.8% over the past four years, continuing to grow in the first half of 2025 [10] Assets Under Management (AUM) - Fee-earning AUM and total AUM have demonstrated strong growth, with a CAGR of 15.6% and 15.7% respectively from 2020 to 2024 [6] - Strategic partnerships, including those with Citigroup and Fortitude Re, have significantly boosted AUM, adding approximately $50 billion and $24 billion respectively [9][8] Capital Distribution Activities - The company has a share repurchase program authorized for up to $1.4 billion, with $0.6 billion available as of June 30, 2025 [12] - CG raised its quarterly dividend by 14.3% to 40 cents per share, with a current dividend yield of 2.23% [13] Return on Equity (ROE) - CG's trailing 12-month ROE stands at 23.60%, significantly above the industry average of 12.46% [15] Valuation Analysis - CG is trading at a trailing P/E ratio of 13.74X, lower than the industry average of 17.41X, indicating it may be undervalued compared to peers like BlackRock and Lazard [20]

Group 1 - Shares of the Carlyle Group (NASDAQ: CG) have increased by 58% over the past year, driven by strong asset flows and positive regulatory outlook [1] - The company's stock is approaching a 52-week high, indicating strong market performance [1] - The solid performance is attributed to the company's strategic positioning and macroeconomic factors [1]