Carlyle Group Inc., like the other leading alternative asset management firms has bought into insurance subsidiaries, according to Wolfteam Ltd.'s analysis.
From the excerpt from Carlyle's second quarter 2024 financial statement 81 billion USD from Carlyle's 435 billion USD total assets under management is invested in its insurance business, names global investment solutions:
Total Assets Under Management1 of $435 billion at June 30, 2024 increased 2% from the prior quarter as Q2
2024 inflows and appreciation were partially offset by realizations and outflows. Total Assets Under
Management was up 13% from one year ago
$435BN
Total AUM
See notes at end of document. Totals may not sum due to rounding.
n Carry Funds n Fortitude
n Credit & Other (non-carry funds)3
Total AUM by Segment
in billions
Total AUM by Product Type
in billions
Available
Capital2 $72 billion $83 billion
n GPE n GC n GIS
YoY
Change
13%
14%
25%
1%
This leads to 50 % + growth in revenue for the second quarter of 2024, compared to the second quarter of 2023:
REVENUES
Fund management fees $ 507.8 $ 534.4 $ 1,008.6 $ 1,058.0
Incentive fees 21.0 31.3 40.8 57.5
Investment income (loss), including performance allocations (254.0) 286.3 (81.5) 202.4
Revenue from consolidated entities 137.1 165.6 259.0 330.5
All other revenues 50.2 52.1 94.2 109.7
Total Revenues 462.1 1,069.7 1,321.1 1,758.1
EXPENSES
Cash-based compensation and benefits 270.6 206.3 530.8 428.2
Equity-based compensation 68.0 125.2 122.4 233.5
Performance allocations and incentive fee related compensation (92.2) 144.2 13.5 71.4
General, administrative and other expenses 168.5 187.9 327.7 335.6
Expenses from consolidated entities 102.1 152.1 195.8 276.7
Interest and other non-operating expenses 30.7 30.1 60.5 61.1
Total Expenses 547.7 845.8 1,250.7 1,406.5
Net investment income (loss) of consolidated funds 15.6 (5.1) 19.2 (12.1)
Income (loss) before provision for income taxes1 (70.0) 218.8 89.6 339.5
Provision (benefit) for income taxes (7.3) 69.5 27.0 91.4
Net income (loss) (62.7) 149.3 62.6 248.1
Net income attributable to non-controlling interests 35.7 1.1 60.3 34.3
Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders $ (98.4) $ 148.2 $ 2.3 $ 213.8
Net income (loss) attributable to The Carlyle Group Inc. per common share:
Basic $ (0.27) $ 0.41 $ 0.01 $ 0.59
Diluted $ (0.27) $ 0.40 $ 0.01 $ 0.58
Income (loss) before provision for taxes margin2 (15.1) % 20.5 % 6.8 % 19.3 %
Effective tax rate 10.4 % 31.8 % 30.1 % 26.9 %
Net performance revenues3 $ (154.6) $ 54.0 $ (99.5) $ (30.2)
Carlyle uses the insurance premiums from its insurance subsidiaries to invest in its main private equity and global credit business lines for the long-term. Insurance premiums provide long-term, stable capital which could be invested for more than 10 years to earn compound interest and increase several fold for example for 20 years via compounding. Akin to the Warren Buffett controlled Berkshire Hathaway.
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