The Carlyle Group Inc.

What they do

Carlyle operates three segments: Global Private Equity (buyout, growth, real estate, infrastructure & natural resources), Global Credit (insurance solutions, liquid credit, direct lending, structured credit), and Carlyle AlpInvest (secondaries, co-investments, primary fund investments). It earns management fees, transaction and advisory fees, and performance fees (carried interest) from the funds it advises.

Revenue drivers

• Global Credit — Largest segment with $211.1B AUM (June 30, 2026), driven by insurance solutions ($86.4B), liquid credit ($47.9B), and private credit ($76.8B). In 2025, it generated $28.3B inflows and priced 39 CLOs.
• Global Private Equity — Second-largest with $162.7B AUM, including $101.3B corporate private equity and $35.6B real estate; 2025 saw $10.4B deployments and $18.2B realizations.
• Carlyle AlpInvest — Fastest-growing segment with $111.7B AUM (up 20% YoY in 2025); focuses on secondaries ($50.7B) and co-investments ($24.4B).

Recent performance

Q2 2026 revenue was $1.12B, up from $254.0M in Q1 2026; income before taxes was $274M with a 24.4% margin. Full-year 2025 revenue was $4.78B with net income of $808.7M and diluted EPS of $2.18. Operating cash flow was negative $3.28B for 2025. The company returned approximately $0.9B to shareholders in 2025 via dividends ($505M) and buybacks ($400M).

Strategy

Carlyle emphasizes platform diversification across three segments, with a focus on scaling Global Credit and Carlyle AlpInvest. Management highlights strong fundraising momentum, including $53.7B of inflows in 2025, and exceptional realization activity, distributing nearly $7B in Q2 2026 and $37B over the past year. The firm also continues to return capital to shareholders via dividends and buybacks.

Risks

• Market and economic conditions — Adverse global economic conditions, interest rate changes, inflation, tariffs, and geopolitical tensions (including Taiwan Strait disruptions) could reduce investment values and fundraising.
• Credit market volatility — The large Global Credit segment is exposed to credit spreads, CLO performance, and direct lending defaults, which could hurt management fees and carry.
• Realization dependence — Carried interest and performance fees depend on successful exits and realizations, which are cyclical and can be delayed in tough markets.
• Consolidation and regulatory risk — GAAP consolidation of advised funds and changes in tax or securities regulations could materially affect reported earnings and cash flows.

Outlook

Management states Q2 2026 was one of the strongest quarters in recent years, citing record Fee Related Earnings and highest Distributable Earnings in nearly four years. The firm expects continued momentum across fundraising, deployment, and realizations, driven by its diversified platform. A quarterly dividend of $0.35 per share was declared for Q2 2026.