Carlyle Group Reports 41% Revenue Growth to $973.1 Million in Q1 2025

The Carlyle Group Inc. reported significant financial performance for the first quarter of 2025, with total revenues reaching $973.1 million, a 41% increase from $688.4 million in the same period last year. This growth was primarily driven by a rise in fund management fees, which increased by 12% to $586.1 million, and a substantial recovery in performance allocations, which amounted to $222.9 million compared to a loss of $157.0 million in the prior year. The company also recorded net income of $158.6 million, up 61% from $98.8 million in Q1 2024, with net income attributable to common stockholders nearly doubling to $130.0 million from $65.6 million.

In terms of operational metrics, Carlyle's assets under management (AUM) totaled $452.6 billion as of March 31, 2025, reflecting a slight increase from $441.0 billion at the end of 2024. The firm reported fee-earning AUM of $313.8 billion, which also saw a 3% increase from the previous quarter. The Global Credit segment was a notable contributor, with AUM rising to $199.2 billion, driven by inflows of $7.5 billion and positive market activity. The Carlyle AlpInvest segment also experienced growth, with fee-earning AUM increasing to $54.4 billion, up 16% year-over-year.

Strategically, Carlyle underwent a restructuring of its investment in NGP Management, which resulted in a $92.5 million impairment charge. This restructuring aimed to align interests more closely with NGP and included changes to management fee arrangements. The company also declared a quarterly dividend of $0.35 per share, reflecting its commitment to returning capital to shareholders. As of March 31, 2025, Carlyle had $675.6 million remaining under its share repurchase program, which was reset to $1.4 billion in February 2024.

Carlyle's operational developments included a focus on expanding its investment strategies, particularly in the Global Credit segment, where it aims to capitalize on market volatility and potential opportunities arising from traditional lending channel pullbacks. The firm reported a total of $14.2 billion in inflows during the quarter, with significant contributions from fundraising activities across its segments. However, the company also noted challenges in the investment landscape, including heightened market volatility and uncertainty stemming from recent U.S. trade policies, which could impact future fundraising and investment activities.

Looking ahead, Carlyle expressed cautious optimism, anticipating continued growth in its fee-earning AUM and revenues, while remaining vigilant about external market conditions that could affect its performance. The firm emphasized its strong liquidity position, with cash and cash equivalents of approximately $1.2 billion, and a commitment to maintaining compliance with its financial covenants. Overall, Carlyle's first-quarter results reflect a robust recovery and strategic positioning for future growth amidst a complex economic environment.