Carlyle Reports

First Quarter 2024

Financial Results

MAY 1, 2024

Carlyle Reports

First Quarter 2024

Financial Results

NEW YORK AND WASHINGTON - May 1, 2024 - Global investment firm The Carlyle Group Inc. (NASDAQ: CG) today reported its unaudited results for the first quarter ended March 31, 2024.

U.S. GAAP Results

U.S. GAAP results for Q1 2024 included income before provision for income taxes of $121 million and net income per common share of $0.18 on a diluted basis.

Dividend

The Board of Directors has declared a quarterly dividend of $0.35 per common share to holders of record at the close of business on May 14, 2024, payable on May 21, 2024.

Conference Call

Carlyle will host a conference call at 8:30 a.m. EDT on Wednesday, May 1, 2024, to discuss its first quarter financial results. The call will be available via public webcast from the Shareholders section of Carlyle's website at www.carlyle.com and a replay will be available on our website soon after the call's completion.

About Carlyle

Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across its business and conducts its operations through three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $425 billion of assets under management as of March 31, 2024, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,200 people in 28 offices across four continents. Further information is available at www.carlyle.com. Follow Carlyle on X @OneCarlyle and LinkedIn at The Carlyle Group.

"Carlyle's first quarter results reflect continued momentum across the firm including another quarter of record Fee Related Earnings. This is the outcome of our efforts to invest for growth and drive shareholder value. Carlyle is well-positioned to capitalize on the steadily improving investment environment and we remain confident in our ability to deliver our financial targets for 2024."

HARVEY M. SCHWARTZ

Chief Executive Officer

Forward-Looking Statements

Statements contained in this press release that are not historical facts are based on current expectations, estimates, projections, opinions, and/or beliefs of Carlyle. Such statements involve known and unknown risks, uncertainties, and other factors, and undue reliance should not be placed thereon. Certain information contained in this press release constitutes "forward-looking statements," which can be identified by the use of forward-looking terminology such as "may," "will," "should," "seek," "expect," "anticipate," "forecast," "project," "estimate," "intend," "continue," "target," or "believe," or the negative version of these words or other comparable words. Statements related to projected Assets Under Management ("AUM"), Distributable Earnings ("DE"), Fee Related Earnings ("FRE"), FRE Margin, fundraising, and fee revenue for future periods could be impacted by the level of investment performance, our ability to fundraise and the fees we can charge on such commitments, the pace and scale of capital deployment, which may not be consistent with historical levels, the pace and success of exit activity, changes in regulations and laws (including tax laws), our ability to scale existing businesses and wind-down underperforming businesses, our ability to manage expenses and retain key personnel, our ability to manage stock dilution, and our ability to charge and retain transaction fees.

Even if we were to achieve our goals, there is no guarantee that such fundraising will translate into increased earnings and margins. There can be no assurance that Carlyle's strategic goals will ultimately be realized, or if realized that they will have the effect of accelerating our growth or earnings. All projections assume benign market conditions. These statements are subject to risks, uncertainties, and assumptions, including those listed in this disclaimer and described under the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the U.S. Securities and Exchange Commission ("SEC") on February 22, 2024, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments, or otherwise, except as required by applicable law.

This release does not constitute an offer for any Carlyle fund.

Contacts

INVESTOR RELATIONS

MEDIA

Daniel Harris

Brittany Berliner

Kristen Greco Ashton

Phone: +1 (212) 813-4527

Phone: +1 (212) 813-4839

Phone: +1 (212) 813-4763

daniel.harris@carlyle.com

brittany.berliner@carlyle.com

kristen.ashton@carlyle.com

First Quarter 2024 Financial Results

Carlyle First Quarter 2024 U.S. GAAP Results

Net income attributable to The Carlyle Group Inc. common stockholders was $66 million for Q1 2024, or $0.18 per

share on a diluted basis

(Dollars in millions, except per share amounts)

1Q'23

1Q'24

REVENUES

Fund management fees

$

500.8

$

523.6

Incentive fees

19.8

26.2

Investment income (loss), including performance allocations

172.5

(83.9)

Revenue from consolidated entities

121.9

164.9

All other revenues

44.0

57.6

Total Revenues

859.0

688.4

EXPENSES

Cash-based compensation and benefits

260.2

221.9

Equity-based compensation

54.4

108.3

Performance allocations and incentive fee related compensation

105.7

(72.8)

General, administrative and other expenses

159.2

147.7

Expenses from consolidated entities

93.7

124.6

Interest and other non-operating expenses

29.8

31.0

Total Expenses

703.0

560.7

Net investment income (loss) of consolidated funds

3.6

(7.0)

Income (loss) before provision for income taxes1

159.6

120.7

Provision (benefit) for income taxes

34.3

21.9

Net income (loss)

125.3

98.8

Net income attributable to non-controlling interests

24.6

33.2

Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders

$

100.7

$

65.6

Net income (loss) attributable to The Carlyle Group Inc. per common share:

Basic

$

0.28

$

0.18

Diluted

$

0.28

$

0.18

Income (loss) before provision for taxes margin2

18.6 %

17.5 %

Effective tax rate

21.5 %

18.1 %

Net performance revenues3

$

55.1

$

(84.2)

LTM 1Q'23

LTM 1Q'24

$

2,080.4

$

2,066.0

69.5

100.1

1,040.7

(211.6)

371.2

613.1

154.1

225.7

3,715.9

2,793.3

1,057.9

985.4

168.7

303.0

454.9

925.2

628.7

640.6

262.5

450.0

113.1

125.2

2,685.8

3,429.4

(40.7)

(3.7)

989.4

(639.8)

174.2

(116.6)

815.2

(523.2)

61.1

120.3

$

754.1

$

(643.5)

$

2.08

$

(1.78)

$

2.06

$

(1.78)

26.6 %

(22.9)%

17.6 %

18.2 %

$

323.2

$

(1,331.6)

  • Fund management fees increased 5% in 1Q'24 from the comparable period in 2023. The increase in 1Q'24 was primarily driven by the impact of fundraising across our platform, particularly in our Global Investment Solutions products, as well as an increase in fees earned under the Fortitude strategic advisory services agreement, partially offset by the impact of step-downs in certain products in our Global Private Equity segment. The impact of capital deployment in funds on which management fees are based on invested capital was largely offset by the impact of realizations in funds on which management fees are based on invested capital.
  • Investment loss, including performance allocations, in 1Q'24 primarily reflects the reversal of unrealized performance allocations in certain carry funds.
  • Equity-basedcompensation increased in 1Q'24 from the comparable period in 2023, driven by awards granted in February 2024, including awards to certain senior Carlyle professionals that are subject to vesting based on the achievement of stock price performance conditions over a service period of three years, as well as a full quarter of expense related to inducement equity awards granted to our CEO in February 2023.
  • Performance allocations and incentive fee related compensation in LTM 1Q'24 reflects a one-time charge of $1.1 billion related to a realignment of our employee compensation program to increase the proportion of our accrued performance allocations used to compensate our employees, which became effective December 31, 2023. As a result of the realignment, we expect our cash-based compensation and benefits to decrease and performance allocations and incentive fee related compensation will increase in 2024.

See Notes at end of document.

5

Carlyle First Quarter 2024 Highlights

Financial

Measures

Assets Under Management

Key Metrics

Capital

Management

  • Distributable Earnings ("DE") of $431 million for Q1 2024 on a pre-tax basis, or $1.01 per common share on a post-tax basis, and $1.6 billion, or $3.62 per common share, for the LTM
  • Fee Related Earnings ("FRE") of $266 million for Q1 2024 and $932 million for the LTM
  • Realized Net Performance Revenues of $142 million for Q1 2024 and $604 million for the LTM
  • Net Accrued Performance Revenues of $2.2 billion as of March 31, 2024
  • Total Assets Under Management: $425 billion, up 12% year-over-year
  • Fee-earningAssets Under Management: $304 billion, up 12% year-over-year
  • Perpetual Capital Fee-earning AUM: $90 billion, representing 29% of total Fee-earning AUM
  • Pending Fee-earning AUM: $15 billion, up 15% year-over-year
  • Available Capital for investment: $76 billion, up 3% year-over-year
  • Fundraising: $5.3 billion in Q1 2024 and $35.6 billion for the LTM
  • Invested Capital (carry funds): $5.0 billion in Q1 2024 and $21.0 billion for the LTM
  • Realized Proceeds (carry funds): $5.9 billion in Q1 2024 and $22.1 billion for the LTM
  • Carry Fund Appreciation: 2% in Q1 2024 and 7% for the LTM
  • Declared a quarterly dividend of $0.35 per common share, payable to shareholders of record as of May 14, 2024
  • Repurchased or withheld 3.3 million shares of common stock in Q1 2024, including shares withheld in the net share settlement of equity awards, totaling $150 million
  • As of March 31, 2024, over $1.2 billion of repurchase capacity remained under our $1.4 billion repurchase authorization

6

Carlyle First Quarter 2024 Total Segment Operating Results

(Dollars in millions, except per share amounts)

1Q'23

1Q'24

LTM 1Q'23

LTM 1Q'24

SEGMENT REVENUES

Fund management fees

$

506.2

$

515.6

$

2,048.9

$

2,073.8

Transaction and portfolio advisory fees, net and other

16.4

26.7

111.3

90.7

Fee related performance revenues1

28.8

29.1

113.6

161.3

Total segment fee revenues

551.4

571.4

2,273.8

2,325.8

Realized performance revenues

165.1

397.8

1,909.5

1,171.0

Realized principal investment income

23.8

33.7

148.1

98.7

Interest income

13.9

20.1

44.7

78.4

Total Segment Revenues

$

754.2

$

1,023.0

$

4,376.1

$

3,673.9

SEGMENT EXPENSES

Compensation and benefits

Cash-based compensation and benefits

$

260.6

$

214.3

$

1,009.0

$

985.6

Realized performance revenues related compensation

95.6

255.8

959.5

567.5

Total compensation and benefits

356.2

470.1

1,968.5

1,553.1

General, administrative and other expenses

87.5

79.7

381.0

368.7

Depreciation and amortization expense

9.9

11.1

39.3

39.2

Interest expense

29.0

30.8

109.5

122.7

Total Segment Expenses

$

482.6

$

591.7

$

2,498.3

$

2,083.7

Total Segment Revenues

$

754.2

$

1,023.0

$

4,376.1

$

3,673.9

Total Segment Expenses

482.6

591.7

2,498.3

2,083.7

(=) Distributable Earnings

$

271.6

$

431.3

$

1,877.8

$

1,590.2

(-) Realized Net Performance Revenues

69.5

142.0

950.0

603.5

(-) Realized Principal Investment Income

23.8

33.7

148.1

98.7

(+) Net Interest

15.1

10.7

64.8

44.3

(=) Fee Related Earnings

$

193.4

$

266.3

$

844.5

$

932.3

After-tax Distributable Earnings per common share2

$

0.63

$

1.01

$

4.23

$

3.62

Dividend per common share3

$

0.35

$

0.35

$

1.33

$

1.40

  1. Fee related performance revenues are the realized portion of performance revenues that are measured and received on a recurring basis, are not dependent on the disposition of investments, and which are not at risk of giveback. The related compensation expense is included in cash-based compensation and benefits.
  2. A reconciliation of Distributable Earnings to After-tax Distributable Earnings per common share is provided on page 29.
  3. The Board of Directors has declared a quarterly dividend of $0.35 per common share to holders of record at the close of business on May 14, 2024, payable on May 21, 2024. See Notes at the end of the document for our Dividend Policy.

7

Distributable Earnings

  • Distributable Earnings were $431 million in Q1 2024 and $1.6 billion for the LTM
  • Realized Net Performance Revenues were $142 million in Q1 2024 and $604 million for the LTM
  • Realized Principal Investment Income was $34 million in Q1 2024 and $99 million for the LTM

Quarterly Distributable Earnings

Distributable Earnings

in millions, except per share amounts

in millions, except per share amounts

$403

$431

$389

$1,909

$367

$1,431

$1,590

$272

$254

$266

$193

$207

$205

$859

$932

$834

1Q'23

2Q'23

3Q'23

4Q'23

1Q'24

2022

2023

1Q'24 LTM

DE per

$0.63

$0.88

$0.87

$0.86

$1.01

$4.34

$3.24

$3.62

Share

n Fee Related Earnings

n Realized Net Performance Revenues,

Realized Principal Investment Income, and

Net Interest

8

Fee Related Earnings

  • Fee Related Earnings of $266 million in Q1 2024 increased 38% compared to $193 million in Q1 2023. Fee Related Earnings was $932 for the LTM
  • FRE margin1 of 47% in Q1 2024 increased from 35% in Q1 2023. FRE margin for the LTM was 40%

Quarterly FRE and FRE Margin

dollars in millions

$266

$254

47%

$193 $207 $205 43%

37%

35%

34%

1Q'23

2Q'23

3Q'23

4Q'23

1Q'24

See notes at end of document.

FRE and FRE Margin

dollars in millions

$932

$834$859

40%

37%37%

2022

2023

1Q'24 LTM

9

Investment Performance

CARRY FUNDS

Appreciation

(Depreciation)

Fair Value of

1Q'24

LTM 1Q'24

Investments ($ bn)

Total Carry Funds

$196

2%

7%

Global Private Equity

Corporate Private Equity

$84

0%

4%

Real Estate

$21

1%

0%

Infrastructure & Natural Resources

$18

2%

10%

Global Credit

$19

2%

12%

Global Investment Solutions

$56

5%

10%

LIQUID CREDIT

Loan Level Return

Average Annual

Default Rate

Fair Value of

1Q'24

LTM 1Q'24

LTM 1Q'24

Last 3

Investments ($ bn)

Years*

U.S. CLOs

$38

2%

12%

0.5%

0.4%

European CLOs

$11

3%

12%

2.0%

1.0%

PRIVATE & OTHER CREDIT

Fair Value of

Dividend Yield

Investments ($ bn)

Business Development Companies

$4

10%

Carlyle Tactical Private Credit

$4

10%

* Last 3 Years Average Annual Default Rates exclude CBAM assets which defaulted prior to the March 2022 CBAM acquisition

Totals may not sum due to rounding.

  • Carry fund appreciation was 2% across our investment portfolio in the first quarter, with appreciation of 7% on an LTM basis
  • Our Global Investment Solutions funds appreciated 5% during the quarter, driven by our Secondaries & Portfolio Finance and Primary Investment strategies
  • The average annual default rates on our U.S. and European CLOs remain lower than the industry average, but have increased for our European CLOs over the past year, reflecting the pressure of inflation and higher financing costs on debt-service capacity
  • Our business development companies and CTAC continue to deliver double-digit dividend yields of 10% at March 31, 2024

10

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The Carlyle Group Inc. published this content on 01 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 May 2024 10:01:05 UTC.