Carlyle(US:CG)2026-02-05 22:39Financial Performance - Carlyle reported Q4 2025 net income attributable to common stockholders of $358 million, translating to $0.96 per diluted share, and full-year net income of $809 million, or $2.18 per diluted share[15]. - Total revenues for Q4 2025 reached $1.9 billion, a significant increase from $1.03 billion in Q4 2024, while full-year revenues were $4.78 billion, down from $5.43 billion in FY 2024[15]. - Distributable Earnings ("DE") were $436 million for Q4 2025, or $1.01 per common share, and $1.7 billion, or $4.02 per common share for FY 2025[21]. - Fee Related Earnings ("FRE") of $290 million for Q4 2025, up 1% year-over-year, and $1.2 billion for FY 2025, up 12% from FY 2024[34]. - Total segment revenues for FY 2025 were $3,901.5 million, compared to $3,655.4 million in FY 2024, reflecting a growth of 6.7%[84]. - Distributable earnings for FY 2025 were $1,691.2 million, up from $1,525.5 million in FY 2024[84]. - Net income attributable to The Carlyle Group Inc. for FY'25 is projected to be $1,020.4 million, a recovery from a loss of $608.4 million in FY'24[136]. Revenue Sources - Fund management fees increased to $606.8 million in Q4 2025, up from $597.4 million in Q4 2024, and full-year fees rose to $2.40 billion from $2.19 billion[15]. - Incentive fees for Q4 2025 were $55.4 million, compared to $37.3 million in Q4 2024, with full-year incentive fees increasing to $190.5 million from $133.5 million[15]. - Total investment income for FY'25 is projected at $1,341.7 million, compared to $2,254.4 million in FY'24, showing a decrease of 40.5%[136]. Assets Under Management - Carlyle's assets under management stood at $477 billion as of December 31, 2025, reflecting strong investor confidence and disciplined execution of strategy[7]. - Total Assets Under Management reached $477 billion, an 8% increase year-over-year, with Fee-earning Assets Under Management at $337 billion, up 11% year-over-year[22]. - Performance Fee Eligible AUM increased by 3% to $236 billion, primarily due to inflows in Alplnvest funds and an 8% appreciation across the carry fund portfolio[47]. - Total AUM for Global Private Equity was flat at $164 billion as of December 31, 2025, with inflows of $1.3 billion offset by realizations[67]. - Total AUM reached $211 billion as of December 31, 2025, a 1% increase from the prior quarter, driven by inflows of $5.4 billion and market activity[73]. Expenses and Compensation - Total expenses for Q4 2025 were $1.38 billion, up from $800.7 million in Q4 2024, with significant increases in cash-based and equity-based compensation[15]. - The total compensation and benefits for FY'25 are projected to be $2,206.2 million, a decrease from $2,704.9 million in FY'24, reflecting a reduction of approximately 18.4%[136]. - Equity-based compensation expenses for FY'25 are expected to be $376.6 million, a decrease from $476.5 million in FY'24, reflecting a reduction of approximately 21%[123]. Shareholder Returns - The company declared a quarterly dividend of $0.35 per common share, payable on February 20, 2026[4]. - The dividend per common share for FY 2025 was $1.40, with a consistent quarterly dividend of $0.35[116]. - The total cost of shares repurchased and retired during the period was $686.5 million[117]. Market Outlook and Strategy - Carlyle anticipates entering 2026 with strong momentum and a focus on long-term value creation for investors and portfolio companies[6]. - The company has indicated plans for market expansion and new product development, although specific details were not disclosed in the earnings call[126]. - Future outlook includes continued market expansion and potential acquisitions to drive growth[157]. Performance Metrics - The gross multiple on invested capital (MOIC) for various funds ranged from 1.1x to 2.9x, indicating strong performance across different vintages[112]. - The Net Internal Rate of Return (Net IRR) represents an annualized return on Limited Partner invested capital after the impact of all management fees and expenses, with certain funds potentially generating accrued performance revenues below the preferred return hurdle[171]. - The estimated effective tax rate for distributable earnings was 13.9% for FY 2025, influenced by tax deductions from restricted stock units[116].