The Carlyle Group (CG) Q4 2024 earnings summary

Executive summary

• Achieved record Fee Related Earnings (FRE) of $1.1 billion in 2024, up nearly 30% year-over-year, with a FRE margin of 46%, and robust inflows across all business segments.

• Assets under management (AUM) grew 4% to $441 billion as of December 31, 2024, driven by $40.8 billion in fundraising inflows and strong deployment.

• Net income attributable to common stockholders was $1.02 billion for 2024, compared to a net loss of $608 million in 2023, reflecting higher performance allocations and investment income.

• Returned over $1 billion to shareholders through $503 million in dividends and $555 million in share repurchases and equity award settlements.

• Significant progress in leadership, compensation strategy, and capital allocation, driving performance and alignment.

Financial highlights

• Distributable Earnings (DE) reached $1.53 billion for 2024, or $3.66 per share, with Fee Related Earnings at $1.1 billion.

• Total revenues increased 83% year-over-year to $5.43 billion, driven by a $2.1 billion increase in performance allocations and higher management fees.

• Fund management fees rose 7% to $2.19 billion, with growth in Global Credit and Global Investment Solutions offsetting a decline in Global Private Equity.

• Compensation and benefits expense increased 14% to $2.70 billion, reflecting higher performance-related compensation and equity-based awards.

• Net income margin improved significantly, with an effective tax rate of 21.7% for 2024.

Outlook and guidance

• 2025 FRE expected to increase 6% over 2024, with potential upside from wealth, capital markets, insurance flows, and credit.

• Management expects high activity across the platform in 2025, with a continued focus on long-term shareholder value.

• Inflows in 2025 projected to be similar to 2024, with credit expected to raise the most capital.

• Anticipates launching the next U.S. buyout fund in late 2025, with fee activation in 2026.

• Dividend policy remains at $1.40 per share annually, subject to board discretion and market conditions.