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]

Core Viewpoint - Carlyle Group Inc. reported strong second-quarter 2025 results with post-tax distributable earnings per share of 91 cents, matching estimates and showing an increase from 78 cents in the prior year [1][10] Financial Performance - Net income attributable to Carlyle was $319.7 million, significantly up from $148.2 million in the year-ago quarter [2] - Total segmental revenues reached $984 million, a 24.7% increase year over year, surpassing the Zacks Consensus Estimate by 2.8% [3][10] - Total segment fee revenues increased by 15.1% year over year to $676.2 million, driven by higher transaction and portfolio advisory fees [3] - Realized performance revenues surged 66% from the previous year to $259.8 million [3] Expenses and AUM - Total segmental expenses rose 24.1% to $553 million [4] - As of June 30, 2025, total assets under management (AUM) were $465 billion, up 6.9% from the prior year, with fee-earning AUM increasing by 5.9% to $325 billion [5][10] Capital Distribution - In the reported quarter, Carlyle repurchased or withheld 2.3 million shares for $104 million, with $0.6 billion worth of shares remaining under authorization [6] - The company declared a quarterly dividend of 35 cents per share, payable on August 28, 2025 [6] Future Outlook - The rising total AUM and efforts to expand investment platforms are expected to support long-term revenue growth, although increasing expenses present a challenge [7]

Core Viewpoint - Centerra Gold Inc. has completed a technical study for its Goldfield project in Nevada, confirming strong economic metrics including an after-tax NPV5% of $245 million and an IRR of 30% based on a long-term gold price of $2,500 per ounce [2][4][6]. Project Economics - The Goldfield project is expected to yield an after-tax NPV5% of $245 million and an IRR of 30%, utilizing a long-term gold price assumption of $2,500 per ounce [4][6]. - The initial capital investment required for the project is approximately $252 million, which includes about $40 million in pre-production stripping and other costs [4][12]. - Average annual gold production is projected to be around 100,000 ounces during peak production years, with an all-in sustaining cost (AISC) of approximately $1,392 per ounce [3][6]. Production Timeline - First production from the Goldfield project is anticipated by the end of 2028, contributing to Centerra's near-term gold production profile [3][6]. - The project has an estimated mine life of approximately seven years, with production expected to ramp up significantly during the initial years [4][6]. Gold Hedging Strategy - Centerra has implemented a gold hedging strategy covering 50% of production in 2029 and 2030, with a price floor of $3,200 per ounce and average price caps of $4,435 and $4,705 for those years, respectively [10][11]. - This strategy aims to lock in strong margins and safeguard project economics while allowing for exposure to rising gold prices for the life of the mine [10][11]. Technical Optimizations - Recent technical work has optimized the project’s processing strategy, improving average recoveries from mid-60% to approximately 76% [5][4]. - The project will utilize a three-stage semi-portable crushing circuit for high-grade material and run-of-mine processing for lower-grade material, enhancing overall project returns [5][4]. Community and Economic Impact - The Goldfield project is expected to create approximately 300 to 400 jobs during construction and 250 to 300 jobs during operations, contributing over $300 million on labor, supplies, and services over its life [25][24]. - The project is projected to generate approximately $100 million in direct taxes, supporting local community initiatives and sustainable development [25][24]. Mineral Resource Estimates - As of June 30, 2025, the Goldfield project has a total measured and indicated gold mineral resource of 794,000 ounces, with proven and probable reserves totaling 706,000 ounces [18][19]. - The mineral reserves consist of 334,000 ounces proven and 372,000 ounces probable, with a total of 33,348 kt at an average grade of 0.66 g/t [19][18].

Financial Data and Key Metrics Changes - The company reported record FRE of $323 million, an 18% increase year over year, with a FRE margin of 48% for the first half [7][22] - Total AUM reached a record $465 billion, with first half inflows totaling $28 billion and $51 billion over the last twelve months, reflecting a 12% organic growth rate [23][24] - Management fees for the quarter were $590 million, a 7% increase year to date, while capital market fees were $48 million in the second quarter, more than double from last year [22][23] Business Line Data and Key Metrics Changes - Carlyle Alpinvest experienced a record quarter with fee revenues up more than 50% and FRE nearly doubling over the past year [17] - Global Credit delivered strong performance with FRE of $111 million, a 37% year over year increase, and asset-backed finance AUM up 40% year over year [25][26] - The U.S. Buyout funds appreciated approximately 20% over the past twelve months, while the tenth vintage U.S. Real Estate fund closed at $9 billion, nearly 15% larger than its predecessor [13][27] Market Data and Key Metrics Changes - The macro environment showed improved sentiment, with equity markets near record highs and increased M&A activity due to reduced uncertainty from tariff negotiations and tax policy [9][10] - The company deployed $26 billion in 2025, up almost 50% year over year, indicating strong demand for private capital [10][11] Company Strategy and Development Direction - The company is focused on expanding its wealth management capabilities, with a partnership with UBS to provide private equity secondary solutions for their international wealth clients [20][110] - The strategic emphasis is on leveraging brand recognition and diversification of the platform to enhance growth in wealth management and private equity [111][112] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting full year FRE growth of approximately 10%, up from a prior outlook of 6% [30] - The leadership transition is seen as a natural evolution to enhance operational scale and agility in executing the company's strategy [21][88] Other Important Information - The company returned nearly $15 billion to investors over the last twelve months, which is three times the industry average [11][29] - The firm is actively pursuing opportunities in the capital markets, generating over $230 million in fees over the last twelve months, with expectations for further growth as M&A and IPO activities increase [20][21] Q&A Session Summary Question: Drivers of FRE growth and future guidance - Management indicated that the revised outlook reflects strong momentum across the platform, with organic growth at Alpinvest being exceptional [41][42] Question: Retail commentary and fundraising potential - Management highlighted the systematic strategy for engaging wealth clients and the expected positive impact of the upcoming CPAP launch [52][56] Question: Outlook for the credit business - The company sees significant growth potential in the credit business, particularly in private credit and asset-based finance, driven by increasing demand for capital [66][67] Question: Near-term outlook for Alpenvest and Solutions business - Management noted that the business has evolved to generate consistent growth, with CAPM being a significant driver [73][76] Question: Capital markets fees growth and strategy - The company expects capital markets fees to continue growing, driven by organic opportunities and the scale of the platform [101][106] Question: Wealth products and future vision - Management emphasized the importance of brand recognition and diversification in driving success in wealth management [110][112]

Financial Data and Key Metrics Changes - The company reported record FRE of $323 million, an 18% increase year over year, with a FRE margin of 48% for the first half [6][19] - Total DE for the first six months was $2.5 per share, marking a record start for the firm [19] - Management fees reached $590 million for the quarter, a 7% increase year over year, while capital market fees were $48 million, more than double last year [20][19] - Firm-wide AUM ended the quarter at $465 billion, with inflows totaling $28 billion for the first half and $51 billion over the last twelve months, reflecting a 12% organic growth rate [20][6] Business Line Data and Key Metrics Changes - Global Credit and Carlyle Alpinvest delivered record FRE, together accounting for 55% of firm-wide FRE, up from less than 30% two years ago [21] - Carlyle Alpinvest FRE reached a record $68 million for the second quarter, with year-to-date FRE of $134 million, up more than 80% [21] - Global Credit FRE was $111 million for the quarter, a 37% year-over-year increase, with strong capital markets activity driving performance [22][23] - The U.S. Buyout funds appreciated approximately 20% over the past twelve months, with the tenth vintage U.S. Real Estate fund closing at $9 billion, nearly 15% larger than its predecessor [11][24] Market Data and Key Metrics Changes - The macro environment showed improved sentiment, with markets functioning well and activity accelerating, particularly in M&A and deal activity [7][8] - The company deployed $26 billion in 2025, up almost 50% year over year, indicating strong demand for private capital [8] - Asset-backed finance AUM increased by 40% year over year, reflecting significant growth in this area [14] Company Strategy and Development Direction - The company is focused on leveraging its global brand and diversified investment platform to drive growth, particularly in wealth management and capital markets [16][17] - A partnership with UBS was launched to provide private equity secondary solutions for their international wealth clients, expected to be a strong growth driver [17] - The company aims to enhance its capabilities in credit and private equity, with a focus on organic growth and strategic partnerships [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's momentum and performance, expecting full-year FRE growth of approximately 10%, up from a prior outlook of 6% [26] - The company anticipates full-year inflows of $50 billion, compared to a previous estimate of $40 billion, indicating strong fundraising momentum [26] - Management highlighted the importance of collaboration across the Carlyle platform to drive better outcomes and performance [78] Other Important Information - The company returned nearly $15 billion to investors over the last twelve months, significantly exceeding the industry average [10][25] - Leadership appointments were announced, including John Ruddett as Co-President and Justin Bluff as the new CFO, aimed at enhancing operational scale and agility [18][26] Q&A Session All Questions and Answers Question: Drivers of FRE growth and outlook for 2026 - Management noted that the revised outlook reflects strong momentum across the platform, with organic growth at Alpinvest being exceptional [39][40] - They acknowledged the desire for longer-term guidance but emphasized the unpredictability of forecasting five years ahead [36][41] Question: Retail commentary and fundraising potential - Management discussed the systematic strategy for engaging wealth globally, highlighting the importance of brand recognition and partnerships [48][49] Question: Credit business growth outlook - Management emphasized the convergence of insurance and private credit as a significant growth opportunity, with a focus on collaborative partnerships [58][60] Question: Near-term outlook for Alpenvest and Solutions business - Management expressed confidence in consistent growth for Alpenvest, driven by new fund launches and partnerships [71][73] Question: Transition back to global private equity and collaboration - Management highlighted the strong collaborative culture within Carlyle and the exceptional performance of the corporate private equity business [78][81] Question: Net IRR of CP7 and realization performance - Management indicated that CP7 is not expected to be the best fund, but performance improvements are being made, with a focus on driving realizations [91][92] Question: Capital markets fees growth and strategy - Management discussed the strategic development of capital markets fees, emphasizing high-quality revenue streams and organic growth opportunities [98][102] Question: Wealth products and future product development - Management outlined the importance of client-centric solutions in the wealth space, with a focus on developing products that meet long-term needs [127][128]