Group 1 - TD Cowen raised the price target on Carlyle (CG) to $67 from $65 while maintaining a Buy rating on the shares [1] - The firm attended the investor day and noted two main observations: the company is transitioning from a period of retooling to stronger execution [1] - The pathway to achieving over $6 in 2028E Distributable Earnings (DE) appears compelling yet conservative [1]

Core Viewpoint - Carlyle is actively engaging with shareholders and stakeholders, emphasizing the importance of communication and transparency in its operations [1]. Group 1 - Daniel Harris serves as the Head of Public Investor Relations at Carlyle, highlighting the company's commitment to shareholder engagement [1]. - The company acknowledges the efforts of attendees to participate in the event despite adverse weather conditions, indicating a focus on building relationships with investors [1]. - Carlyle has issued a press release and a detailed presentation, which are accessible on its Investor Relations website, showcasing its commitment to transparency [2]. Group 2 - The event is being webcasted, and a replay will be available, reflecting the company's efforts to reach a broader audience [2]. - Carlyle will refer to certain non-GAAP financial measures during the presentation, indicating a focus on providing comprehensive financial insights [2].

Assets Under Management (AUM) - As of December 31, 2025, Carlyle's Global Private Equity segment had $164 billion in AUM, representing 34% of total AUM, with 975+ active investments[50]. - Carlyle's real estate funds managed $36 billion in AUM as of December 31, 2025, with $2.2 billion invested in 2025 and $1.6 billion in proceeds realized[47]. - The infrastructure and natural resources funds had $23.3 billion in AUM as of December 31, 2025, with $2.3 billion invested in 2025 and $5.2 billion in proceeds realized[48]. - Carlyle's Global Credit segment had $211.3 billion in AUM as of December 31, 2025, making it the fastest-growing segment with total AUM nearly quadrupling over the past five years[52]. - Carlyle AlpInvest had $102 billion in AUM as of December 31, 2025, with $66 billion in fee-earning AUM and $111 billion invested since inception[63]. - The secondary & portfolio finance investments program of AlpInvest totaled $45.7 billion in AUM as of December 31, 2025[64]. - As of December 31, 2025, Carlyle's direct lending investment team advised vehicles with AUM totaling $13.6 billion[55]. - The total assets under management reached $477 billion as of December 31, 2025, across various global business segments[76]. Investment Performance - In 2025, Carlyle invested $5.9 billion in new and follow-on investments through its corporate private equity funds and realized $11.3 billion in proceeds[46]. - Performance allocations decreased to $1,222.5 million in 2025 from $2,015.7 million in 2024, a decline of 39.4%[881]. - A 10% increase in total remaining fair value could result in performance allocations revenue increasing by $2,724.3 million, while a 10% decrease could lead to a reduction of $3,591.3 million[854]. - A 10% decline in foreign currency exchange rates against the U.S. dollar could decrease fund management fees by $60.5 million and performance allocations by $27.0 million[856]. - The carrying value of the Company's investments was approximately $11.2 billion as of December 31, 2025, with significant inputs based on management's estimates of fair value[868]. Financial Overview - Total revenues decreased to $4,779.8 million in 2025 from $5,425.8 million in 2024, a decline of 11.9%[881]. - Net income attributable to The Carlyle Group Inc. was $808.7 million in 2025, down from $1,020.4 million in 2024, a decrease of 20.7%[881]. - Total liabilities increased to $22,058.9 million in 2025 from $16,755.9 million in 2024, a rise of 31.5%[879]. - Total equity increased to $7,057.1 million in 2025 from $6,347.6 million in 2024, a growth of 11.1%[879]. - Basic net income per share decreased to $2.25 in 2025 from $2.85 in 2024, a decline of 21.1%[881]. - Cash and cash equivalents grew to $1,970.2 million in 2025 from $1,266.0 million in 2024, an increase of 55.6%[879]. - Cash flows from operating activities showed a net cash used of $3,275.5 million in 2025, compared to $759.5 million in 2024[890]. Investor Relations and Services - Carlyle's diverse investor base includes over 3,200 active carry fund investors from 87 countries, highlighting its global reach and appeal[84]. - The firm manages $18 billion in assets under management and serves over 45,000 investors across Global Wealth products as of December 31, 2025[85]. - Approximately 93% of commitments (by dollar amount) were from investors committed to more than one product, and 76% were from those committed to more than five products as of December 31, 2025[88]. - The investor services team consists of over 1,000 professionals worldwide, ensuring compliance and providing timely investor reports[89]. - The firm has devoted substantial resources to creating comprehensive and timely investor reports, which are increasingly important to the investor base[89]. Compliance and Regulatory Environment - The Board of Directors oversees Carlyle's enterprise risk management strategy, including cybersecurity risks, through its Audit Committee[129]. - Carlyle has developed compliance policies focusing on insider trading, anti-corruption, and conflicts of interest, ensuring adherence to legal and regulatory requirements[176]. - Compliance with AIFMD II may increase the cost and complexity of raising capital and limit operations for Carlyle's investment funds[154]. - Regulatory capital and liquidity adequacy requirements have increased for CECP, CELF, and AlpInvest UK under the IFPR, which may impede intra-group capital flows[160]. - Compliance with the OECD's Common Reporting Standard (CRS) is mandatory, imposing due diligence and reporting requirements on Carlyle entities, with noncompliance risking reputational harm[163]. Corporate Social Responsibility - In 2025, more than 280 Carlyle employees contributed over 500 philanthropic gifts, which were matched by the company, supporting over 250 nonprofit organizations globally[122]. - Carlyle has invested in a framework for managing material environmental, social, and governance (ESG) risks and opportunities across its portfolio[123]. Competition - Carlyle faces competition from a broad array of regional and global investment firms, with competition varying across business lines and geographies[131]. - Some competitors may have lower costs of capital and greater resources, creating competitive disadvantages for Carlyle in sourcing investment opportunities[135]. - Carlyle's main competitors in the Global Private Equity segment include other private equity sponsors and sovereign wealth funds[134]. Operational Efficiency and Technology - The company emphasizes the use of technological innovations and AI tools to improve operational efficiency across the investment lifecycle[72]. - Carlyle has developed a dedicated group for digital transformation strategies to drive growth and efficiencies within portfolio companies[73].

Core Insights - The Carlyle Group Inc. (CG) reported record-breaking performance in 2025, driven by disciplined execution and a strategic growth plan, despite a challenging macroeconomic environment [1][2] Financial Performance - Fee related earnings (FRE) reached $1.236 billion in 2025, up from $859 million in 2023, reflecting a compound annual growth rate (CAGR) of approximately 20% [3] - FRE margin expanded from 37% in 2023 to 47% in 2025, an increase of about 1,000 basis points [3] - Distributable earnings per share rose from $3.24 in 2023 to $4.02 in 2025, showing an 11% CAGR [3] - Fee revenues climbed to $2.64 billion in 2025 from $2.31 billion in 2023, while transaction fees increased from $80 million in 2023 to $225 million in 2025 [6] Growth Targets - Carlyle aims for over $200 billion in inflows from 2026 to 2028, up from $158 billion registered over 2023-2025 [12] - The firm targets FRE to exceed $1.9 billion and management fees to surpass $2.8 billion by 2028, with a FRE margin exceeding 50% [12][14] - Distributable earnings per share are projected to reach $6 or more by 2028, indicating a more than 15% three-year CAGR from the 2025 level [12] Strategic Initiatives - Carlyle has transformed its client business from a single-product focus to a multi-product solutions platform, integrating Global Wealth business and expanding evergreen offerings [15] - The wealth channel is seen as a significant long-term opportunity, with private markets currently comprising only about 3% of high-net-worth portfolios [16] - Carlyle's Global Credit business, managing $211 billion in AUM, is expected to generate $90 billion or more in inflows over the next three years [17] Market Position - Carlyle's shares have gained 9.3% over the past year, contrasting with a 12% decline in the industry [23]

Core Insights - The Carlyle Group Inc. is recognized as one of the 14 Best GARP Stocks to Buy according to analysts [1] Group 1: Investment Recommendations - BofA raised its price target for The Carlyle Group Inc. to $54 from $52 while maintaining an Underperform rating on the shares [2] - The firm is updating EPS estimates for various brokers, asset managers, and exchanges following recent earnings reports [2] Group 2: Strategic Investments - Carlyle plans to invest 21 billion rupees ($232 million) in the housing finance arm of India's Edelweiss Financial, acquiring a 45% stake and injecting 15 billion rupees in fresh equity into Nido Home Finance [3] - Post-transaction, investment funds linked to Carlyle Asia Partners are expected to hold approximately 73% of Nido, which manages assets totaling 48.04 billion rupees [3] Group 3: Market Positioning - This investment positions Carlyle alongside other global investors like Blackstone and Sumitomo Mitsui Financial Group, who are also expanding into India's housing finance market [4] - The move reflects Carlyle's ongoing involvement in India's financial sector, following its exit from long-standing investments in PNB Housing Finance and Yes Bank last year [4] Group 4: Company Overview - The Carlyle Group Inc. operates through three main segments: Global Private Equity, Global Credit, and Carlyle AlpInvest [5]

Core Viewpoint - Carlyle aims to raise $200 billion in new capital by the end of 2028, enhancing earnings from managing this capital, following a turnaround led by CEO Harvey Schwartz [1][2] Financial Performance - Carlyle's fourth-quarter earnings slightly exceeded analysts' expectations, driven by income from its private equity arm and gains in credit and secondaries [3] - The firm reported that its latest private equity fund has returned 70% of investors' capital [3] Future Targets - The targeted capital inflows of $200 billion would surpass the $158 billion raised between 2023 and 2025, with total assets under management at approximately $477 billion [4] - Projected fee-related earnings are expected to reach $1.9 billion by 2028, up from $1.2 billion in 2025, with distributed earnings per common share anticipated to exceed $6 in 2028 compared to $4.02 in 2025 [5] Strategic Advantages - Carlyle's location in Washington, D.C. is seen as a strategic advantage for investing in aerospace and defense, leveraging its 40-year history and relationships with policymakers [7] - The firm is positioned to benefit from rising global defense spending, which is considered one of its core investment areas [7]

Core Viewpoint - Quest Global, an engineering services firm backed by Carlyle, plans to go public in India within the next 12 to 18 months, driven by increasing demand from energy and defense sectors [1] Company Summary - Quest Global is headquartered in Singapore and aims to capitalize on the global shift towards complex hardware-embedded software services as traditional IT growth slows [1] - The firm has publicly disclosed its IPO plans for the first time and is considering various options for the offering, including a sale by existing investors or a fresh issue of shares [1] - Quest Global anticipates its revenue will grow from $1.1 billion last year to $2.5 billion over the next five years, reflecting an average annual growth rate of approximately 20% [1] Industry Summary - The Engineering, Research & Development (ER&D) segment, which supports global hardware-oriented industries, represents about one-fifth of India's $315 billion IT industry [1] - The energy sector is expected to experience significant growth, particularly as data centers require substantial energy resources [1] - The ER&D sector is projected to grow at a rate of 6.8% to reach $63 billion in fiscal 2026, outpacing the core IT services sector's growth of 4.2% [1]

Core Insights - Carlyle Group has increased its targets for fee-related earnings, distributable earnings per share, and inflows up to 2028, surpassing consensus expectations and reflecting growth over the past few years [2][4] Company Strategy - The company has undergone a systematic overhaul over the past three years, focusing on strategic growth initiatives, operating model improvements, compensation strategy changes, capital allocation, and leadership restructuring [3][4] - Leadership changes have been fundamental in mobilizing the firm, contributing to significant growth and setting a conservative model for the next three years without relying on inorganic growth strategies [4][5] Market Sentiment and Economic Outlook - Despite market volatility, Carlyle remains the best performer among its peers, although it has seen a 12% decline month-to-date [6] - The firm does not overly react to daily market sentiment, instead relying on data from its portfolio companies, which employ over 700,000 people across various sectors [7][8] - Economic indicators suggest a positive outlook, with GDP growth potentially exceeding 3% to 4% in the first quarter, supported by favorable financial conditions [9] Capital Demand and Industry Trends - There is a growing global demand for capital, driven by economic growth, reindustrialization, and national security investments, which Carlyle has been engaged in for 40 years [15][16] - The geopolitical landscape has shifted towards a competition for capital, making private capital increasingly important for economic growth [16]

Summary of The Carlyle Group Update - February 26, 2026 Company Overview - **Company**: The Carlyle Group (NasdaqGS:CG) - **Industry**: Investment Management and Private Equity Core Points and Arguments 1. **Positive Momentum and Growth**: Carlyle is experiencing significant positive momentum, reflecting a transformation and growth strategy that is diversified across strategies, geographies, and distribution channels [3][4] 2. **Leadership Changes**: The firm has made several senior leadership changes to enhance its management infrastructure, including the appointment of three co-presidents and a new CFO [12][11] 3. **Financial Performance**: - Record Fee Related Earnings (FRE) of $1.24 billion, up 50% from 2023, with a FRE margin of 47%, up 1,000 basis points [17] - Distributable Earnings of $1.7 billion, or over $4 per share, up 11% [17] - Fee revenues reached $2.6 billion, reflecting 7% organic growth [17] - Transaction fees hit a record $225 million, nearly triple the level from two years ago [17] 4. **Shareholder Returns**: Carlyle has increased capital returned to shareholders by 70% through share repurchases and dividends while investing in growth initiatives [18] 5. **Future Targets**: - Targeting FRE of $1.9 billion by 2028, representing a 15% compound growth rate [19] - Cumulative inflows of $200 billion from 2026-2028 [19] - Distributable Earnings per share of $6 or more [19] 6. **Market Positioning**: Carlyle emphasizes its global presence and local expertise, which provides structural advantages in sourcing and building management relationships [21][22] 7. **Diversification Strategy**: The firm operates across various asset classes and geographies, which creates durable earnings across cycles [25][26] 8. **Focus on National Security and Economic Growth**: Carlyle is well-positioned to capitalize on rising global defense budgets and the demand for capital across various sectors [27][28] Additional Important Content 1. **Client-Centric Approach**: Carlyle's strategy is centered around client needs, with a focus on delivering exceptional performance and solutions [33][34] 2. **Wealth Management Growth**: The firm aims to grow its wealth management business significantly, targeting $40 billion in wealth evergreen inflows from 2026 to 2028 [50][51] 3. **Global Credit Platform**: Carlyle's Global Credit platform has over $211 billion in AUM, with a focus on diverse credit solutions and a strong origination platform [55][56] 4. **Performance Metrics**: The firm has achieved a 17% CAGR in fee revenue and a 34% CAGR in fee-related earnings over the past three years, demonstrating strong operating leverage [57] 5. **Investment Discipline**: Carlyle maintains a disciplined approach to investment, focusing on quality growth and capital protection [64][65] This summary encapsulates the key points from the conference call, highlighting Carlyle's strategic direction, financial performance, and market positioning within the investment management industry.

F E B R U A R Y 2 6 , 2 0 2 6 Important Information This presentation has been prepared by The Carlyle Group Inc. (together with its affiliates, "Carlyle") and may only be used for informational purposes. All information contained herein is presented as of December 31, 2025, unless otherwise specifically noted. Unless otherwise expressly stated herein, any analysis or outlook relating to the matters discussed herein express Carlyle's views only as of February 26, 2026. This presentation may not be reference ...