Carlyle And AI

 

Carlyle Group Inc or Carlyle, the world's fourth largest listed private equity, private credit, real estate asset management company in terms of market capitalization and the third largest in terms of managed assets alternative asset manager has invested heavily in artificial intelligence, AI by using its newly raised fund from the last 7 years, especially via its private credit business.

Carlyle, the fourth largest private credit asset manager in the world in terms of assets is using large part of its multi billion USDs raised for private credit to give out loans at 7 % to 15 % interest rates to artificial intelligence, AI technology companies. Artificial intelligence, AI companies, operating in a still fledgling and yet to prove sustainable business are often with sub investment grade rating and are considered risky, high yield or even "junk" bond rated issuers. That is why the loans to the small and mid-sized artificial intelligence, AI technology firms often come with interest rates of 7 % to 15 %.

Big money center banks like JPMorgan, Bank of America, Citigroup and Wells Fargo and even investment banking revenue high banks like Goldman Sachs and Morgan Stanley eschew such sub investment grade borrowers like small and mid-sized artificial intelligence, AI technology companies, because they are considered too risky and thus non bankable. 

Here come companies like Blackstone, KKR, Apollo, Carlyle, Ares, Blue Owl, CVC etc. which finance such  small and mid-sized artificial intelligence, AI technology companies via giving them loans out of their private credit assets under management with interest rates of 7 % to 15 %.

The artificial intelligence, AI hyperscalers Microsoft, Amazon, Alphabet and Meta are different, of course, because they are rated investment grade. The AI hyperscalers Microsoft, Amazon, Alphabet and Meta are hugely profitable each of them making more than 34 billion USDs in profit in 2024. So the AI hyperscalers Microsoft, Amazon, Alphabet and Meta can finance the build out of AI technology data centers themselves via their profits. In 2026 it is forecast that AI hyperscalers Microsoft, Amazon, Alphabet and Meta alone would invest more than 200 billion USDs in AI data centers.

For the small and mid-sized artificial intelligence, AI technology companies companies like Carlyle via their private credit high interest loans are indispensable since many small and mid-sized artificial intelligence, AI technology companies are loss making or cannot afford the multi billions of USDs AI data centers need alone.

So as long as the AI boom keeps going, Carlyle will keep lending out private credit 7 % to 15 % loans to small and mid-sized artificial intelligence, AI technology companies and if AI ends up changing profoundly our world by improving, making more efficient how we work, rest and communicate, Carlyle's market capitalization could rise to 127 billion USDs from its Carlyle's current 21.98 billion market capitalization. , according to Wolfteam Ltd.'s projections and estimates.