Carlyle Group Inc. Q2 FY2024 earnings call

• Strong momentum in the first half of 2024 with record FRE, AUM, and fundraising. - Announced a $10 billion transaction to acquire loans from Discover Financial Services and the sale of Cogentrix Energy. - First half of 2024 was the second busiest in CLO history, with The Carlyle Group as the world's largest CLO manager. - Raised $18 billion year-to-date and $41 billion over 12 months, with activity in private equity, credit, and real estate. - Global Private Equity closed its fifth Japan buyout fund, and real estate funds showed strong progress.

In the second quarter, The Carlyle Group achieved record AUM of $435 billion, up 13% year-over-year. Freestanding earnings (FRE) were $343 million for Q2, with year-to-date FRE at $539 million. Management fees in Q2 were $525 million, up 2% quarter-over-quarter, and transaction and advisory fees were up almost 60% year-over-year. In Global Credit, $5 billion was raised in the quarter, with strong CLO activity. Global Investment Solutions had high activity levels, deploying $9 billion and raising $12 million over 12 months. Global Wealth saw strength in CTAC and CAPM.

• Targeting $1.1 billion of FRE for 2024, with second half FRE expected to be higher than the first half. - Working towards a $40 billion fundraising target for 2024. - Pending fee-earning AUM of nearly $20 billion, the highest since 2021, expected to turn on over coming quarters.

Q: Glenn Schorr from Evercore ISI asked about market perception and its impact on the business.

A: Harvey Schwartz said not to overreact to market adjustments, as portfolio performance and market opportunities still look good, and nothing from recent days changes the view on the balance of the year.

Q: Alexander Blostein from Goldman Sachs inquired about fundraising targets and real estate momentum.

A: John Redett said they feel good about fundraising momentum, with strong activity in private equity, credit, and real estate, and progress in real estate fund closings.

Q: Kenneth Worthington from JPMorgan asked about fundraising for CEP VI and CAP VI.

A: John Redett mentioned being in the market for CAP VI, with CAP VI expected to be smaller than its predecessor, and strong activity in Asia for private equity.