The Carlyle Group (CG) Investor update summary

Strategic transformation and growth momentum

• Achieved record financial results in 2025, including $1.24B in Fee Related Earnings (FRE), a 50% increase from 2023, and a 47% FRE margin, up 1,000 basis points.

• Distributable Earnings reached $1.7B, $4+ per share, up 11%, with fee revenues at $2.6B, reflecting 7% organic growth.

• Overhauled leadership, compensation, and capital allocation strategies, aligning teams and investing in scalable growth initiatives.

• Diversified business across strategies, geographies, and channels, with a focus on client-centric, multi-product solutions.

• Set ambitious 2028 targets: $1.9B+ FRE, $2.8B+ management fees, 50%+ FRE margin, $200B+ cumulative inflows, and $6+ DE per share.

Business segment performance and growth

• Global Credit AUM surpassed $211B, with nearly half in perpetual capital, and fee-related earnings nearly doubled over three years.

• Private Equity delivered strong returns: 29% gross IRR in US, 26% globally, and 17% in real assets, with significant realization activity and capital returned to LPs.

• AlpInvest achieved high organic growth, now 22% of firm-wide FRE, with $40B inflows in three years and a 25-year track record.

• Asset-Backed Finance scaled from zero to $10B since 2021, leveraging structural market shifts and diversified capital sources.

• Wealth business expanded evergreen AUM 3x in three years, targeting $40B inflows from 2026-2028, and deepened distribution relationships.

Client business and inflows

• Transitioned to a client-centric, multi-product approach, integrating global wealth and leveraging advanced analytics.

• Exceeded 2025 inflows target by 35%, raising $54B in 2025 and $95B over two years across 30 strategies.

• Targeting $200B+ inflows from 2026-2028, with $40B+ expected from wealth evergreen solutions.

• Diversified client base includes 3,200+ limited partners across 87 countries, with 450+ new LPs in the past three years.

• Wealth and retirement channels expected to contribute 20% of inflows, with diversification providing resilience against market cycles.