Carlyle Q2 2025 slides: distributable earnings surge 26%, AUM reaches $465B

The Carlyle Group (NYSE:NASDAQ:CG) reported its second quarter 2025 financial results on August 6, 2025, showcasing robust performance across key financial metrics. The private equity giant delivered substantial growth in distributable earnings and assets under management while continuing to execute on its strategic initiatives.

Quarterly Performance Highlights

Carlyle reported distributable earnings of $431 million for Q2 2025, representing a 26% increase from $343 million in the same period last year. After-tax distributable earnings per common share reached $0.91, up from $0.78 in Q2 2024. The firm declared a quarterly dividend of $0.35 per common share, payable to shareholders of record as of August 18, 2025.

As shown in the following chart of quarterly distributable earnings growth:

Fee-related earnings (FRE) also demonstrated strong growth, reaching $323 million in Q2 2025, an 18% increase from $273 million in Q2 2024. The FRE margin improved to 48% from 46% in the same period last year, reflecting enhanced operational efficiency.

The following chart illustrates the consistent growth in fee-related earnings and margins:

Total (EPA:TTEF) assets under management (AUM) grew to $465 billion as of June 30, 2025, a 7% increase year-over-year. Fee-earning AUM reached $325 billion, up 6% from the previous year, with perpetual capital representing 31% of fee-earning AUM at $101 billion.

The distribution of AUM across segments and product types is illustrated in the following chart:

Detailed Financial Analysis

On a GAAP basis, Carlyle reported net income attributable to common stockholders of $320 million, or $0.87 per diluted share, for Q2 2025. Total revenues increased significantly to $1.57 billion from $1.07 billion in Q2 2024, primarily driven by higher investment income and performance allocations.

The following table provides a comprehensive breakdown of Carlyle’s GAAP financial results:

From a segment perspective, total segment revenues increased to $984 million in Q2 2025, up from $789 million in Q2 2024. This growth was supported by higher fund management fees, which rose to $590 million from $526 million, and increased realized performance revenues of $260 million compared to $157 million in the prior year.

The detailed segment operating results are presented in the following table:

Net accrued performance revenues reached $2.9 billion as of June 30, 2025, up from $2.7 billion at the end of 2024. Realized net performance revenues for Q2 2025 totaled $88 million, with the Global Private Equity segment contributing $84 million.

The following chart and table break down the performance revenues by segment:

Segment Performance

The Global Private Equity segment, which includes Corporate Private Equity, Real Estate, and Infrastructure & Natural Resources, maintained stable AUM at $165 billion, a 1% increase year-over-year. The segment generated distributable earnings of $232 million in Q2 2025, up from $199 million in Q2 2024, driven by higher realized net performance revenues.

The segment’s financial performance is detailed in the following table:

The Global Credit segment demonstrated strong growth, with AUM increasing to $203 billion, up 2% quarter-over-quarter. The segment’s fee-related earnings reached $111 million in Q2 2025, a 37% increase from $81 million in Q2 2024. Fund management fees included approximately $19 million of catch-up fees.

The following chart and table provide a comprehensive view of the Global Credit segment’s performance:

Carlyle AlpInvest, the firm’s fund of funds business, showed significant growth with AUM reaching $97 billion, an 8% increase from the previous quarter. The segment’s fee-related earnings surged to $68 million in Q2 2025, a 70% increase from $40 million in Q2 2024, driven by higher fund management fees.

Strategic Initiatives

Carlyle continued to execute on its strategic initiatives during the quarter, focusing on deployment, fundraising, and returning capital to shareholders. The firm deployed $14.6 billion in Q2 2025 and $50.9 billion over the last twelve months, demonstrating its ability to identify attractive investment opportunities across various asset classes.

Inflows remained strong at $13.4 billion for the quarter and $50.6 billion for the last twelve months, reflecting continued investor confidence in Carlyle’s investment strategies. The firm’s available capital for investment stood at $89 billion as of June 30, 2025, up 7% year-over-year.

The following table summarizes key activity metrics:

Carlyle also continued its commitment to returning capital to shareholders, repurchasing or withholding 2.3 million shares of common stock in Q2 2025, totaling $104 million. As of June 30, 2025, $0.6 billion of repurchase capacity remained under the firm’s $1.4 billion repurchase authorization.

Forward-Looking Statements

Building on the momentum from its record Q1 2025 performance, where the firm reported fee-related earnings of $311 million and set a $40 billion fundraising target for the year, Carlyle’s Q2 results demonstrate continued execution of its growth strategy. The firm’s diversified platform across geographies and asset classes positions it well to navigate market uncertainties, including potential impacts from trade policies and geopolitical tensions.

The growth in perpetual capital, now representing 31% of fee-earning AUM, provides Carlyle with a more stable and predictable revenue stream. The firm’s strong performance in the Global Credit and Carlyle AlpInvest segments also highlights the success of its diversification strategy beyond traditional private equity.

With $89 billion in available capital for investment and a robust pipeline of opportunities, Carlyle remains well-positioned to continue delivering value to its investors and shareholders in the second half of 2025 and beyond.

Full presentation:

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