Carlyle 1st Quarter 2025 Earnings Analysis

 

Carlyle Group Inc, the global alternative investment management firm reported 130 million USDs in net income on 973.1 million USDs in revenues in the 1st Quarter 2025 compared to 65.6 million USDs in net income on 688.4 million USDs in revenue in the 1st Quarter 2024. So Carlyle's results show a marked improvement from an year ago.

Carlyle has 453 billion USDs of assets under management, with 314 billion USDs in fee earning assets under management. Carlyle sports 99 billion USDs of perpetual capital assets under management. The large part of perpetual capital under management helps Carlyle invest for the long-term and achieve higher capital appreciation in the long-term.

164 billion USDs of Carlyle's assets under management are in private equity, 199 billion USDs are in global credit, 89 billion are in Carlyle Alpinvest, where the perpetual capital management lies.

Evident from the size and composition of its asset mix Carlyle is one of the leading alternative asset managers in private equity and private credit. Private credit is currently in a boom phase globally and Carlyle's leading position in private credit ensures Carlyle would be able to unlock tens of billions of USDs of additional value.

Carlyle's market capitalization is 16.68 billion USDs. Carlyle's intrinsic value is 52 billion USDs, according to Wolfteam Ltd.'s projections and estimates.

Below is Caryle's 1st Quarter 2025 earnings statement:

Dollars in millions, except per share amounts) 1Q'24 1Q'25 LTM 1Q'24 LTM 1Q'25
REVENUES
Fund management fees $ 523.6 $ 586.1 $ 2,066.0 $ 2,250.6
Incentive fees 26.2 43.2 100.1 150.5
Investment income (loss), including performance allocations (83.9) 159.8 (211.6) 2,498.1
Revenue from consolidated entities 164.9 133.4 613.1 600.1
All other revenues 57.6 50.6 225.7 211.2
Total Revenues 688.4 973.1 2,793.3 5,710.5
EXPENSES
Cash-based compensation and benefits 221.9 218.4 985.4 872.0
Equity-based compensation 108.3 103.5 303.0 463.1
Performance allocations and incentive fee related compensation (72.8) 171.4 925.2 1,605.7
General, administrative and other expenses 147.7 173.6 640.6 691.5
Expenses from consolidated entities 124.6 113.5 450.0 553.8
Interest and other non-operating expenses 31.0 27.8 125.2 117.5
Total Expenses 560.7 808.2 3,429.4 4,303.6
Net investment income (loss) of consolidated funds (7.0) 6.1 (3.7) 37.1
Income (loss) before provision for income taxes1 120.7 171.0 (639.8) 1,444.0
Provision (benefit) for income taxes 21.9 12.4 (116.6) 293.1
Net income (loss) 98.8 158.6 (523.2) 1,150.9
Net income attributable to non-controlling interests 33.2 28.6 120.3 66.1
Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders $ 65.6 $ 130.0 $ (643.5) $ 1,084.8
Net income (loss) attributable to The Carlyle Group Inc. per common share:
Basic $ 0.18 $ 0.36 $ (1.78) $ 3.03
Diluted $ 0.18 $ 0.35 $ (1.78) $ 2.95
Margin on income (loss) before provision for taxes2 17.5 % 17.6 % (22.9) % 25.3 %
Effective tax rate 18.1 % 7.3 % 18.2 % 20.3 %
Net performance revenues3 $ (84.2) $ 51.5 $ (1,331.6) $ 789.9