Financial Data and Key Metrics Changes - 2025 was a record year for the company, with fee-related earnings (FRE) up 12% year-over-year, reaching a margin of 47% [5][17] - Total inflows amounted to $54 billion, significantly exceeding the original target of $40 billion, representing a 32% increase year-over-year [5][18] - Distributable earnings (DE) for 2025 were $1.7 billion, or $4.02 per share, an 11% increase from the previous year [16][19] - Total fee revenues reached a record $2.6 billion for the full year, reflecting a 10% organic growth rate [17] Business Line Data and Key Metrics Changes - Carlyle AlpInvest generated a record $274 million of FRE for the year, up nearly 60% [19][20] - Global Credit delivered a record $402 million of FRE for 2025, up 21% from the prior year [20][21] - Global Private Equity realized over $18 billion of proceeds in 2025, the highest level in the past three years [22] Market Data and Key Metrics Changes - The company was the number 1 private equity sponsor globally by IPO proceeds, generating approximately $10 billion of IPO issuance over the past two years [7][8] - The IPO of Medline raised more than $7 billion, marking it as the largest sponsor-backed IPO of all time [8][9] - CLO inflows of $7 billion in 2025 were up almost 20% from the prior year, with the company being the most active CLO manager for U.S. activity [11][20] Company Strategy and Development Direction - The company aims to continue building on its strategy of investment performance, disciplined capital allocation, and delivering long-term value for investors [14][23] - There is a strong focus on expanding the Global Wealth segment, with significant progress made in 2025 [12][14] - The company plans to host a shareholder update to share multi-year financial targets and insights into its strategic direction [15][23] Management's Comments on Operating Environment and Future Outlook - The macro environment in 2025 was resilient despite geopolitical concerns, with M&A and IPO activity accelerating [7][14] - Management expressed confidence in the economic engine, citing positive January data from their portfolio [29] - The company anticipates continued growth supported by a diversified fundraising pipeline and improving capital markets conditions [23] Other Important Information - The company returned a record $1.2 billion of capital to shareholders through dividends and share buybacks during 2025 [22] - The balance sheet remains strong, with $2 billion in cash and over $3 billion in investments [22] Q&A Session Summary Question: Sustainability of monetization momentum into 2026 - Management is optimistic about the economic engine and January data looks promising, but acknowledges market volatility [28][29] Question: State of play in direct lending and credit - Management feels well-positioned for growth in direct lending and has added key leaders to enhance origination [36][38] Question: Software exposure and CLO performance - The company has a low software exposure of 6% and CLO performance has been strong, with no expected impact from recent market volatility [40][60] Question: Capital raising and Fund 9 status - Management is confident in fundraising capabilities and will provide more insights in the upcoming shareholder update [56][57] Question: Outlook for CLOs in 2026 - The CLO market is expected to remain active, with the company well-positioned due to recent deal extensions [90] Question: Enhancements in credit originations - The company has built a strong origination team and achieved record originations in 2025, with plans for continued growth [95][96]