How does the MAI acquisition accelerate wealth ambitions, and what's the early feedback on the private market solution with AllianceBernstein/Brookfield for defined contribution?

Harvey Schwartz explained that MAI Capital is a portfolio company acquisition by U.S. buyout, not directly part of the wealth channel strategy. He detailed the systematic approach to building the wealth and retirement platform, including a new Head of Retirement. The AllianceBernstein/Brookfield solution for 401(k) is a strategic partnership, expected to build materially in 2027, leveraging Carlyle's brand and expertise. “We do think the 401(k) channel, along with the target [indiscernible] date front channel, will be very significant over time... You're going to start to see this build, I think, in '27.”

Why did the comp ratio tick up, and how should it be modeled given strong FRPR and transaction revenues?

Justin Plouffe stated that the comp ratio is expected to be consistent with last year, around 47%, for FY26. The increase is due to investments in people, AI, technology, and the wealth platform, prioritizing growth. He expects the margin to tick up in 2027 and 2028 as fundraising flows through. “Yes, Brennan, we expect the comp ratio this year to be roughly consistent with last year, around that 47%... That's when I'd expect to see the margin tick up.”

What were the key drivers for capital markets this quarter, and is this level of activity sustainable for H2 2026 and 2027?

Harvey Schwartz explained that the capital markets business, repositioned three years ago, is now a systematic part of the firm's operations and correlates with overall growth and activity. While Q2 was strong, he doesn't expect the same level in Q3/Q4 due to seasonality, but emphasized the long-term momentum and 'flywheel effect' as bigger funds are raised. “Quarter-to-quarter, the numbers may move around a fair bit. Personally, I think that's completely irrelevant that you should think about the value generation here. The business will systematically continue to grow as the firm grows and as we launch new funds...”

Carlyle Group (CG) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 5, 2026

Source: earnings call transcript

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

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

Global Macroeconomic Volatility
Seasonal Transaction Flow
Quiet Wealth Channel (Credit)
Quiet Block Business (Insurance Solutions)

Guidance & targets

Category	Target	Timeline	Confidence
Revenue and Earnings Growth	Accelerating revenue and earnings high materiality	Next few years	High
Compensation Ratio	~47% medium materiality	FY26	High
Global Credit AUM from Unum transaction	>$5 billion medium materiality	Later this year · FY26	High
Fundraising Target (Super Cycle)	$200 billion high materiality	Super Cycle (multi-year)	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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	—	—	—	—

CG operating KPIs by quarter

CG operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Assets under management (AUM) Evergreen wealth strategies	$19B Fee-related performance revenues of $45 million in the quarter were 15% higher year-over-year, driven by growth in our Evergreen wealth strategies, where AUM now stands at $19 billion. Source: earnings call transcript	$20B We generated over $7 billion in gross sales across Evergreen Wealth over the past year, driving AUM in the strategies to a record $20 billion. Source: earnings call transcript	+5.3%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

Sictorian Systems NSA-certified hardware data encryption provider

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

Fortitude Re, Unum Second block reinsurance transaction

Announced in Global Credit alongside Fortitude Re.

AllianceBernstein, Brookfield Private market solution for the 401(k) channel

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

MAI Capital RIA and wealth management firm

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

Risks & headwinds

Global Macroeconomic Volatility Current / 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 Flow Q3 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

Fundraising Super Cycle Progress

Next few quarters / FY27

Current $30 billion organic inflows in H1 FY26; $5 billion anchor for U.S. buyout fund.

Target Continued 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.

Find out whether CG delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.'

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.