The Carlyle Group (NASDAQ:CG) Q2 2023 Earnings Conference Call August 2, 2023 8:30 AM ET Company Participants Daniel Harris - Head of Investor Relations John Redett - Incoming Chief Financial Officer & Head of Corporate Strategy Harvey Schwartz - Chief Executive Officer Curtis Buser - Chief Financial Officer Conference Call Participants Alexander Blostein - Goldman Sachs Kenneth Worthington - JP Morgan Brian McKenna - JMP Securities Glenn Schorr - Evercore ISI Brian Bedell - Deutsche Bank Michael Cyprus - M ...

On January 1, 2020, we completed our conversion from a Delaware limited partnership named The Carlyle Group L.P. into a Delaware Corporation named The Carlyle Group Inc. (the conversion, together with such restructuring steps and related transactions, the "Conversion"). Unless the context suggests otherwise, references in this report to "Carlyle," the "Company," "we," "us" and "our" refer to The Carlyle Group Inc. and its consolidated subsidiaries. When we refer to our "senior Carlyle professionals," we are ...

Financial Data and Key Metrics Changes - For Q1 2023, the company generated $193 million in fee-related earnings (FRE) and $272 million in distributable earnings (DE), with DE per common share at $0.63 [61] - Fee-related performance revenue decreased to $29 million from $45 million year-over-year, while global credit fee-related performance revenue increased by over 30% [87] - FRE margin was 35%, down from 36% in the same quarter last year, attributed to an 8% increase in FRE expenses [113] Business Line Data and Key Metrics Changes - The global credit carry fund portfolio rose by 3% in the quarter and is up 7% over the past 12 months, while the corporate private equity portfolio increased by 1% in the quarter and 3% over the past year [114] - The company raised $6.8 billion in new capital and deployed $3.8 billion across carry funds [61] - The accrued carry balance remains robust at $4 billion, indicating strong potential for future monetization [85] Market Data and Key Metrics Changes - M&A volumes are about half of what they were last year, and IPO activity is sluggish, impacting earnings and transaction fees [3] - The company noted a significant decline in U.S. leveraged loans, which are at their lowest levels in many years, affecting overall market activity [3] Company Strategy and Development Direction - The company aims to grow its global credit and investment solutions businesses, with a focus on disciplined growth and operational excellence [66][83] - The recent Fortitude reinsurance transaction, valued at $28 billion, is expected to accelerate growth and enhance the company's capabilities in the insurance sector [86] - The company is committed to leveraging its strong balance sheet and cash flow generation to pursue growth opportunities [6][80] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the current complex financial market environment, which is expected to impact FRE and distributable earnings throughout the year [64] - Despite short-term challenges, management remains optimistic about long-term growth opportunities, particularly in private equity and global credit [90][92] - The company anticipates a modest decline in FRE for 2023 compared to the previous year, but expects top-line fee growth [70] Other Important Information - The company repurchased $100 million in shares during the first quarter, with a new repurchase authorization increased to $500 million [89] - Equity-based compensation expense increased to $57 million from $41 million in the first quarter of the previous year, expected to remain elevated [73] Q&A Session Summary Question: What is the company's strategy for growth? - The new CEO emphasized the importance of disciplined growth and the potential for expanding the global credit and investment solutions businesses [124][128] Question: How does the company plan to address the valuation gap? - Management acknowledged the valuation gap and expressed confidence in the brand's strength, indicating a focus on execution and growth to close this gap [190] Question: Can you provide insights on the private equity fundraising environment? - The company noted a challenging fundraising environment, particularly for buy-out funds, but remains optimistic about future opportunities [167] Question: What is the expected contribution from the Fortitude deal? - The fee arrangement with Fortitude is variable and tied to performance, with expectations for significant contributions as the deal closes and assets are migrated into Carlyle's funds [165][186]

| --- | --- | --- | --- | --- | |-----------------------------|-------|--------------------------------|-------|-------------------------------------| | | | 2023 \n(Dollars in millions) | | Three Months Ended March 31, \n2022 | | Global Private Equity | $ | 17.8 | $ | 328.2 | | Global Credit | | (18.9) | | (2.7) | | Global Investment Solutions | | 9.4 | | 2.6 | | Total | $ | 8.3 | $ | 328.1 | The Company consolidates the financial positions and results of operations of certain CLOs in which it is the primar ...

"Fortitude" refers to Fortitude Group Holdings, LLC ("Fortitude Holdings") prior to October 1, 2021 and to FGH Parent, L.P. ("FGH Parent") as of October 1, 2021. On October 1, 2021, the owners of Fortitude Holdings contributed their interests to FGH Parent such that FGH Parent became the direct parent of Fortitude Holdings. Fortitude Holdings owns 100% of the outstanding common shares of Fortitude Reinsurance Company Ltd., a Bermuda domiciled reinsurer ("Fortitude Re"). See Note 6 to the consolidated financ ...

Carlyle Group, Inc. (NASDAQ:CG) Q4 2022 Earnings Conference Call February 7, 2023 8:30 AM ET Company Participants Daniel Harris - Partner & Head, Public IR William Conway - Co-Founder, Interim CEO & Non-Executive Co-Chairman Curtis Buser - CFO Conference Call Participants Glenn Schorr - Evercore ISI William Katz - Crédit Suisse Alexander Blostein - Goldman Sachs Group Rufus Hone - BMO Capital Markets Gerald O'Hara - Jefferies Michael Cyprys - Morgan Stanley Kenneth Worthington - JPMorgan Chase & Co. Adam Be ...

The Carlyle Group Inc. (NASDAQ:CG) Q3 2022 Earnings Conference Call November 8, 2022 8:30 AM ET Company Participants Daniel Harris - Head of IR Bill Conway - Interim-CEO Curtis Buser - CFO Pete Clare - Chief Investment Officer, Corporate Private Equity Mark Jenkins - Head of Global Credit Ruulke Bagijn - Head of Global Investment Solutions Conference Call Participants William Katz - Credit Suisse Ken Worthington - JPMorgan Patrick Davitt - Autonomous Research Brian McKenna - JMP Securities Glenn Schorr - Ev ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2022 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 001-35538 The Carlyle Group Inc. (Exact name of registrant as specified in its charter) 45-2832612 Delaware (State or other juris ...

Carlyle Group, Inc. (NASDAQ:CG) Q2 2022 Earnings Conference Call July 28, 2022 8:30 AM ET Company Participants Daniel Harris - Partner & Head, Public IR Kewsong Lee - CEO & Director Curtis Buser - CFO Conference Call Participants Alexander Blostein - Goldman Sachs Group Craig Siegenthaler - Bank of America Merrill Lynch Christoph Kotowski - Oppenheimer Robert Lee - KBW Rufus Hone - BMO Capital Markets Glenn Schorr - Evercore ISI Michael Cyprys - Morgan Stanley Kenneth Worthington - JPMorgan Chase & Co. Oper ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2022 OR ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number: 001-35538 The Carlyle Group Inc. (Exact name of registrant as specified in its charter) Delaware 45-2832612 (State or other jurisdicti ...