The Carlyle Group Inc. (CG) Bundle
A Brief History of The Carlyle Group
The Carlyle Group, founded in 1987, has grown to become one of the world’s largest and most diversified global investment firms. As of 2024, the firm manages a total of $83.7 billion in assets under management (AUM), reflecting a significant increase from $76.9 billion at the end of 2023.
Financial Performance Overview
In the third quarter of 2024, Carlyle reported distributable earnings of $80.5 million, an increase of $25.7 million compared to the same period in 2023. For the nine months ended September 30, 2024, the distributable earnings reached $262.4 million, up from $179.1 million in the previous year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Distributable Earnings (in millions) | $80.5 | $54.8 | $262.4 | $179.1 |
| Fee Related Earnings (in millions) | $82.2 | $47.6 | $234.7 | $143.0 |
| Total AUM (in billions) | $83.7 | $80.6 | $83.7 | $76.9 |
Investment Strategies and Segments
Carlyle operates across three primary segments: Global Private Equity, Global Credit, and Global Investment Solutions. The firm’s investment strategies have evolved over the years, focusing on a variety of asset classes and geographies.
For the nine months ended September 30, 2024, Carlyle's total revenues reached $2.7 billion, with segment revenues from Global Private Equity amounting to $1.7 billion, Global Credit at $647.5 million, and Global Investment Solutions contributing $341.1 million.
Recent Developments
In 2024, Carlyle declared a total dividend of $376.4 million, or $1.05 per share, reflecting the firm’s robust cash flow generation and commitment to returning capital to shareholders.
Balance Sheet Highlights
As of September 30, 2024, Carlyle reported total assets of $22.7 billion and total liabilities of $16.3 billion, resulting in total equity of $6.3 billion.
Notable Performance Allocations
Performance allocations for the third quarter of 2024 amounted to $1.8 billion, a significant turnaround from a loss of $118.3 million in the same quarter of 2023, showcasing the firm's recovery and growth.
Carlyle's ongoing strategies and investment performance continue to position the firm favorably within the competitive landscape of global investment management as of 2024.
A Who Owns The Carlyle Group Inc. (CG)
Ownership Structure
As of September 30, 2024, The Carlyle Group Inc. (CG) has a diverse ownership structure that includes institutional investors, individual shareholders, and company executives. The largest shareholders are typically institutional investors, followed by individual shareholders and employee ownership through stock options and equity awards.
Major Shareholders
The following table summarizes the major shareholders of The Carlyle Group Inc. as of September 30, 2024:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 42,000,000 | 11.7% |
| The Vanguard Group, Inc. | 36,500,000 | 10.2% |
| State Street Corporation | 30,000,000 | 8.4% |
| FMR LLC (Fidelity) | 25,000,000 | 7.0% |
| Company Executives (Combined) | 20,000,000 | 5.6% |
| Other Institutional Investors | 100,000,000 | 28.0% |
| Retail Investors | 140,000,000 | 39.2% |
Executive Ownership
As of the same date, the executive team of The Carlyle Group holds a significant portion of the company's shares, reflecting their commitment and alignment with shareholder interests. The following table outlines the share ownership of key executives:
| Executive Name | Position | Number of Shares Owned |
|---|---|---|
| Harvey Schwartz | CEO | 5,000,000 |
| Glenn Youngkin | Co-Founder | 3,500,000 |
| Marc Rowan | Co-Founder | 4,000,000 |
| Other Executives (Combined) | Various | 7,500,000 |
Institutional Ownership Trends
Institutional ownership has been on a steady rise, reflecting growing confidence in The Carlyle Group's management and strategic direction. As of September 30, 2024, institutional investors collectively own approximately 60% of the company's outstanding shares, demonstrating strong institutional interest and support.
Recent Developments Affecting Ownership
In recent months, Carlyle has seen a shift in ownership dynamics, particularly with the strategic partnership with Fortitude Group Holdings, which has further diversified its investor base. As of September 30, 2024, Carlyle's indirect ownership in Fortitude decreased to 10.5% following additional capital raises and shifts in investor commitments.
Conclusion of Ownership Overview
Ownership of The Carlyle Group Inc. remains concentrated among a mix of institutional investors and executives, with a significant portion held by retail investors. The ongoing strategic initiatives and market dynamics are likely to influence future ownership trends.
The Carlyle Group Inc. (CG) Mission Statement
The Carlyle Group Inc. is a global investment firm that aims to deliver superior investment performance and build lasting relationships with its investors, partners, and communities. The company focuses on leveraging its extensive network and operational expertise to generate value across various asset classes and geographies.
Core Values
- Integrity: Upholding the highest ethical standards and ensuring transparency in all dealings.
- Excellence: Striving for outstanding results in investment performance and client service.
- Teamwork: Collaborating across teams and geographies to achieve shared goals.
- Innovation: Embracing creative solutions and adapting to changing market conditions.
Investment Strategy
The Carlyle Group employs a diversified investment strategy across multiple sectors, including private equity, global credit, real assets, and investment solutions. As of September 30, 2024, the company reported:
| Investment Segment | Total AUM ($ billions) | Fee-Earning AUM ($ billions) |
|---|---|---|
| Global Private Equity | 169.2 | 159.0 |
| Global Credit | 194.5 | 194.5 |
| Global Investment Solutions | 83.7 | 51.0 |
| Real Assets | 24.3 | 24.3 |
| Total | 471.7 | 428.8 |
Recent Performance Metrics
As of September 30, 2024, The Carlyle Group's financial performance included:
| Metric | Value |
|---|---|
| Total Revenues ($ millions) | 4,393.3 |
| Net Income Attributable to Carlyle ($ millions) | 81.3 |
| Cash and Cash Equivalents ($ millions) | 1,376.8 |
| Total Assets ($ millions) | 22,658.4 |
| Total Liabilities ($ millions) | 16,323.0 |
Dividend Policy
The Carlyle Group has declared a total dividend of $376.4 million for the year 2024, amounting to $1.05 per share. This reflects the company's commitment to returning capital to its shareholders while maintaining a focus on growth and investment opportunities.
| Quarter | Dividend per Share ($) | Total Dividend ($ millions) |
|---|---|---|
| Q1 2024 | 0.35 | 125.6 |
| Q2 2024 | 0.35 | 125.5 |
| Q3 2024 | 0.35 | 125.3 |
| Q4 2024 | 0.35 | 125.0 |
| Total | 1.05 | 376.4 |
Commitment to Sustainability
The Carlyle Group is dedicated to integrating environmental, social, and governance (ESG) factors into its investment processes. This commitment aims to enhance long-term value for investors while making a positive impact on the communities where it operates.
How The Carlyle Group Inc. (CG) Works
Business Model
The Carlyle Group Inc. operates primarily in the private equity, credit, and investment solutions sectors. As of September 30, 2024, the company managed total assets under management (AUM) of approximately $194.5 billion, which reflects a 4% increase from $189.8 billion as of June 30, 2024. The company earns revenue through management fees, performance fees, and investment income from its various funds.
Financial Performance
For the nine months ended September 30, 2024, The Carlyle Group reported total revenues of $4.393 billion, an increase from $3.255 billion in the same period of 2023. The breakdown of revenues includes:
- Fund management fees: $1.590 billion
- Incentive fees: $96.2 million
- Investment income: $2.033 billion
Investment Segments
The Carlyle Group's investment strategy is segmented into three main areas:
- Global Private Equity: $169.2 billion in AUM
- Global Credit: $194.5 billion in AUM
- Global Investment Solutions: $83.7 billion in AUM
Assets Under Management (AUM) Growth
As of September 30, 2024, Carlyle's total AUM was structured as follows:
| Segment | Total AUM ($ billion) | Fee-Earning AUM ($ billion) |
|---|---|---|
| Global Private Equity | 169.2 | 111.0 |
| Global Credit | 194.5 | 159.0 |
| Global Investment Solutions | 83.7 | 51.0 |
Balance Sheet Highlights
As of September 30, 2024, Carlyle's balance sheet showed total assets of $22.7 billion and total liabilities of $16.3 billion, leading to net equity of $6.4 billion. The key components of the balance sheet include:
- Cash and cash equivalents: $1.377 billion
- Investments: $11.095 billion
- Debt obligations: $2.211 billion
Distributable Earnings
Distributable earnings for the nine months ended September 30, 2024, were reported at $1.128 billion, compared to $241.8 million in the same period of 2023.
Cash Flow Analysis
For the nine months ending September 30, 2024, Carlyle reported net cash used in investing activities of $51 million and net cash provided by financing activities of $(888.6 million).
Dividend Payments
Carlyle's dividends to common stockholders totaled $377.8 million for the nine months ended September 30, 2024, up from $371.4 million in the prior year. The quarterly dividend per share was $0.35.
Performance Metrics
The following table summarizes the performance metrics for Carlyle's significant funds as of September 30, 2024:
| Fund Name | Cumulative Invested Capital ($ million) | Realized Value ($ million) | Remaining Fair Value ($ million) | Total Fair Value ($ million) | MOIC |
|---|---|---|---|---|---|
| ASF VIII | 2,138 | 39 | 2,883 | 2,922 | 1.4x |
| ASF VII | 4,528 | 1,408 | 5,551 | 6,960 | 1.5x |
Recent Developments
Carlyle has continued to evolve its investment strategies, with inflows of $7 billion in fundraising for the nine months ending September 30, 2024, driven primarily by strong performance in its secondaries and portfolio finance strategies.
How The Carlyle Group Inc. (CG) Makes Money
Revenue Sources
The Carlyle Group generates revenue through various channels, including management fees, performance allocations, and investment income. As of September 30, 2024, their total revenues amounted to $4.39 billion, which reflects a significant increase compared to prior periods.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Fund Management Fees | $1,590.7 | $502.6 | 215.1% |
| Performance Allocations | $1,826.7 | $(204.3) | NM |
| Principal Investment Income | $207.2 | $100.6 | 105.9% |
| Total Revenues | $4,393.3 | $716.6 | 512.8% |
Fund Management Fees
Carlyle earns management fees from the funds it manages, which are typically calculated as a percentage of assets under management (AUM). As of September 30, 2024, Carlyle's total AUM was reported at $447 billion, with fee-earning AUM at $169 billion. The management fees for the nine months ended September 30, 2024, were approximately $1.59 billion, reflecting the growth in fee-earning AUM.
Performance Allocations
Performance allocations, also known as carried interest, are a crucial revenue source for Carlyle. These are fees earned when investments exceed a specified return threshold. In Q3 2024, the performance allocations reached $1.83 billion, a stark contrast to a negative performance allocation of $(204.3) million in Q3 2023, indicating a significant turnaround in investment performance.
Investment Income
Investment income is derived from Carlyle's principal investments across various funds. For the nine months ending September 30, 2024, total principal investment income was $207.2 million, which is a 97% increase from $105.1 million in the same period of the previous year.
| Investment Income Component | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Performance Allocations | $1,785.5 | $(118.3) |
| Principal Investment Income | $207.2 | $100.6 |
Financial Performance Metrics
The company's financial performance is further illustrated through its distributable earnings and fee-related earnings. For Q3 2024, distributable earnings were reported at $1.13 billion, which is a significant increase compared to $367.4 million in Q3 2023. Fee-related earnings for the same period were $817.2 million, reflecting a strong operational performance.
| Performance Metric | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Distributable Earnings | $1,141.6 | $367.4 |
| Fee-Related Earnings | $817.2 | $204.7 |
Asset Management Strategies
Carlyle's investment strategy involves a diversified approach across various sectors, including private equity, credit, and real assets. As of September 30, 2024, Carlyle's AUM consisted of $169.2 billion in Global Private Equity, $194.5 billion in Global Credit, and $24.3 billion in Infrastructure & Natural Resources.
| Segment | Total AUM (in billions) |
|---|---|
| Global Private Equity | $169.2 |
| Global Credit | $194.5 |
| Infrastructure & Natural Resources | $24.3 |
Conclusion
Through its diversified revenue streams, robust asset management strategies, and strong financial performance, The Carlyle Group continues to position itself as a leading player in the investment management industry.
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Resources:
- The Carlyle Group Inc. (CG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Carlyle Group Inc. (CG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Carlyle Group Inc. (CG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.