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    CG
    Earnings call· Jun 2026(Q2 FY26)

    Carlyle Group Q2 FY26 earnings call CG

    Aug 5, 2026 Source

    Executive summary

    The Carlyle Group Inc. Q2 FY26 — Record Results and Strong Fundraising Momentum

    Carlyle delivered an outstanding second quarter, marked by record financial results and significant fundraising momentum across its diversified global platform. The firm is entering a 'fundraising super cycle,' with nearly all core strategies expected to be in the market over the next few years, underpinning its 3-year strategic plan for accelerating revenue and earnings. Management emphasized disciplined execution, strong investment performance, and a systematic approach to its growing capital markets business and expanding wealth platform, while also investing in AI and technology for future growth.

    Highlights

    6

    • Achieved highest distributed earnings in nearly 4 years at $472 million.

    • Delivered record Fee-Related Earnings (FRE) of $358 million, up 11% year-over-year.

    • Reported record fee-related performance revenue and record capital markets fees.

    • Net realized performance revenues increased more than fivefold from last quarter.

    • Reached a record $485 billion in Assets Under Management (AUM), driven by $56 billion of inflows over the last 12 months (up 10% YoY) and $30 billion of organic inflows in H1 FY26 (a firm record).

    • Returned nearly $7 billion to clients this quarter and $37 billion over the past year, with the U.S. buyout strategy returning capital at more than twice the industry average (23% of fair value over 12 months).

    Concerns

    4

    • Global Macroeconomic Volatility

    • Seasonal Transaction Flow

    • Quiet Wealth Channel (Credit)

    • Quiet Block Business (Insurance Solutions)

    Guidance & targets

    4
    CategoryTargetConfidence
    Revenue and Earnings Growth
    Accelerating revenue and earnings
    high materiality
    High
    Compensation Ratio
    ~47%
    medium materiality
    High
    Global Credit AUM from Unum transaction
    >$5 billion
    medium materiality
    High
    Fundraising Target (Super Cycle)
    $200 billion
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Carlyle AlpInvest
    Delivered record DE and FRE. Inflows driven by secondaries, portfolio finance strategies, and evergreen strategies. Second vintage single-asset secondary strategy closed at 4x larger than its predecessor.
    Distributable Earnings: $96 millionFee-Related Earnings: $87 millionFee-Related Earnings Growth YoY: 27%Total AUM: $112 billionTotal AUM Growth YoY: 16%Inflows: $4.5 billionManagement Fees Growth YTD: 10%
    		————
    Global Credit
    Delivered record DE and FRE. Inflows from structured credit, asset-backed finance, and flow reinsurance. Credit quality remains strong. Announced second block reinsurance transaction with Unum, expected to add >$5 billion to AUM.
    Distributable Earnings: $158 millionDistributable Earnings Growth YoY: >30%Fee-Related Earnings: $138 millionFee-Related Earnings Growth YoY: ~25%Transaction Fees: $93 millionFee-Related Performance Revenue: $54 millionTotal AUM: $211 billionTotal AUM Growth YoY: 4%Inflows (Q2): $6 billionInflows (LTM): $25 billionDeployment: $7 billion
    		————
    Global Private Equity
    DE rose significantly due to increased net realized performance revenue, driven by Japan buyout and sixth U.S. buyout fund. Prioritizing returning capital to fund investors. Launched dedicated defense and industrial platform.
    Fee-Related Earnings: $134 millionDistributable Earnings: $219 millionDistributable Earnings Growth QoQ: ~50%Realized Proceeds: $3.9 billionRealized Proceeds (LTM): >$20 billionNet Accrued Performance Revenues: $2.4 billionU.S. Buyout Strategy Capital Returned (LTM): 23% of fair valueU.S. Buyout Strategy Capital Returned vs. Industry Average: >2xAnchor Commitment for U.S. Buyout Fund: $5 billionDeployment: $14 billionU.S. Capital Market Fees: >$100 million
    		————

    Operational metrics

    20
    Distributable Earnings
    $472 millionHighest in nearly 4 years
    Q2 FY26

    Powered by record FRE and substantial step-up in net realized performance revenue.

    Net Realized Performance Revenue
    >5xfrom last quarter
    Q2 FY26

    Significant increase.

    Inflows
    $56 billionup 10% year-over-year
    LTM

    Strong fundraising momentum.

    Organic Inflows
    $30 billionfirm record
    H1 FY26

    Strong start to fundraising super cycle.

    Assets Under Management (AUM)
    $485 billionrecord
    Q2 FY26

    Driven by strong inflows.

    Capital Returned to Clients
    $7 billion
    Q2 FY26

    Strong and diversified across asset classes and geographies.

    Capital Returned to Clients
    $37 billion
    LTM

    Carlyle remains an industry leader in returning capital.

    Deployment
    $14 billion
    Q2 FY26

    Included several significant transactions in Corporate Private Equity.

    U.S. Capital Market Fees
    >$100 millionrecord
    Q2 FY26

    Direct result of repositioning the Capital Markets business 3 years ago. High quality and low risk earnings.

    Evergreen Wealth Solutions AUM
    $20 billionup >60% year-over-year
    Q2 FY26

    Driven by strong net inflows and gross sales.

    Evergreen Wealth Solutions Gross Sales
    >$7 billion
    LTM

    Contributing to AUM growth.

    Fund Management Fees
    $560 millionup 3% from Q1 FY26
    Q2 FY26

    Part of FRE.

    Transaction Fees
    $111 millionmore than double a year ago; up >30% year-to-date
    Q2 FY26

    Record level, natural extension of firm activity.

    Fee-Related Performance Revenues
    $89 millionmore than double last year's Q2
    Q2 FY26

    Driven by continued strength in evergreen strategies, notably AlpInvest and asset-backed finance within Global Credit.

    Adjusted Share Count Reduction
    >1%
    YTD FY26

    Achieved through share repurchases.

    Share Repurchase Authorization Remaining
    $1.6 billion
    Q2 FY26

    Part of capital management strategy.

    Shares Repurchased/Withheld
    6.7 million
    Q2 FY26

    Record deployment for repurchases.

    Dividend Per Share
    $0.35
    Q2 FY26

    Consistent with dividend policy.

    Global Defense Spending
    ~$8 trillion
    Next decade

    Driving demand for capital investment, particularly in areas where Carlyle has expertise.

    Insurance Solutions AUM
    $87 billionflat year-to-date
    Q2 FY26

    Expected to get a boost from Unum deal later this year. Analyst stated 'around $86 million, $87 billion', but context implies $86-87 billion. Corrected to billion.

    Industry KPIs

    4
    MetricValueDetails
    Fundraising inflows$16.8 billionUSD
    Performance revenue$2.4 billionUSD
    Fee related earnings$358 millionUSD
    Deployment realizations$14 billion (deployment) / $7 billion (realizations)USD

    Deals & partnerships

    4
    Sictorian SystemsNSA-certified hardware data encryption provider

    First transaction for the newly launched dedicated defense and industrial platform.

    Fortitude Re, UnumSecond block reinsurance transaction

    Announced in Global Credit alongside Fortitude Re.

    AllianceBernstein, BrookfieldPrivate market solution for the 401(k) channel

    Part of Carlyle's strategic build-out of its wealth and retirement practice.

    MAI CapitalRIA and wealth management firm

    Acquired by the U.S. buyout business as a portfolio company.

    Risks & headwinds

    4
    Global Macroeconomic VolatilityCurrent / ongoing

    U.S. economy expanding at 2%-2.5% real terms, 6% annual corporate revenue growth, but 'some pockets of stress from the Hormuz related price shock.'

    Mitigation: Carlyle's diversified global platform and deep sector expertise position it to lead and deliver in areas of growing demand for private capital (national security, energy security, data security, industrials, healthcare).

    Seasonal Transaction FlowQ3 FY26

    Not quantified for Q3, but Q2 capital markets fees were >$100 million (record).

    Mitigation: Management emphasizes long-term momentum and 'flywheel effect' of capital markets business, rather than quarter-to-quarter fluctuations.

    Quiet Wealth Channel (Credit)Past period, 'seems to be abating.'

    Not quantified, but described as 'more quiet.'

    Mitigation: Carlyle's wealth platform is seeing strong overall momentum and building out new solutions.

    Quiet Block Business (Insurance Solutions)Past period

    Not quantified.

    Mitigation: Pipeline remains good, team is sourcing opportunities, and brand as a partner is strong.

    What to watch in Q3 FY26

    5

    Fundraising Super Cycle Progress

    Next few quarters / FY27
    Current$30 billion organic inflows in H1 FY26; $5 billion anchor for U.S. buyout fund.
    TargetContinued strong inflows across flagship funds.

    Why it matters

    This is central to accelerating revenue and earnings and underpins the 3-year strategic plan.

    Looking forward, we expect to have nearly all of our core strategies in the market raising capital over the next few years. This will support accelerating revenue and earnings across our platform, underpinning our conviction in our 3-year strategic plan.

    Q&A highlights

    6

    Which funds are in market in H2, and how does that inform fundraising and management fee growth?

    Harvey Schwartz highlighted strong H1 fundraising ($30B organic inflows) and the 'super cycle' starting in H2 with flagship funds (U.S. buyout, secondaries, portfolio finance, credit opportunities, defense platform) coming to market. Justin Plouffe added that the Unum transaction ($5B AUM) will close later this year. They declined specific quarterly guidance but emphasized broad momentum.

    “We're entering the super cycle in the second half. We really just started that. So in the quarter, $5 billion earmarked for U.S. buyout will also be over the next 24 months in the market with basically every single 1 of our flagship funds...”

    asked by Steven Chubak · answered by Harvey Schwartz

    2 min read6 chapters

    Detailed Narrative

    01

    Fundraising Momentum and Super Cycle

    Carlyle reported record organic inflows of $30 billion in the first half of 2026, contributing to a record $485 billion in AUM. The company is entering a 'fundraising super cycle,' with nearly all core strategies expected to be in the market over the next few years, including a $5 billion anchor commitment for the next U.S. buyout fund. This momentum is expected to accelerate revenue and earnings, underpinning the 3-year strategic plan.

    02

    Realizations and Capital Return

    Carlyle returned nearly $7 billion to clients this quarter and $37 billion over the past year, outperforming the industry average. The U.S. buyout strategy, in particular, returned 23% of its fair value over the last 12 months, more than double the industry average of 20%. The firm expects continued strong realizations in the second half of the year due to open capital markets.

    03

    Capital Markets Business Growth

    The capital markets business generated record fees of $111 million, more than double the prior year, driven by increased transaction activity across the platform. This segment, repositioned three years ago, is now a systematic part of the firm's operations and is expected to grow as the firm expands and launches new funds, creating a 'flywheel effect.'

    04

    Wealth & Retirement Expansion

    The wealth platform, particularly Carlyle AlpInvest, is experiencing strong momentum, with AUM in Evergreen Wealth Solutions reaching a record $20 billion, up over 60% year-over-year. The firm is strategically building out its retirement practice, including a partnership with AllianceBernstein and Brookfield for a private market solution in the 401(k) channel, expected to build materially in 2027.

    05

    Defense and Industrial Platform

    Carlyle launched a dedicated defense and industrial platform, building on its nearly 40 years of expertise in the sector. This initiative addresses growing global demand for capital investment in national security, defense spending, and data security, with an estimated $8 trillion in global defense spending over the next decade. The platform will focus on middle-market opportunities and has already announced its first acquisition, Sictorian Systems.

    06

    AI and Technology Investment

    Carlyle is investing in AI and technology to enhance investment outcomes and operational efficiency across its global platform and portfolio companies. The focus is on leveraging data science to improve decision-making and workflows internally, rather than headcount reduction, and to enable portfolio companies to deploy technology efficiently.

    AI-generated summary of the company’s earnings call. Not investment advice.