Carlyle Group (CG) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

April 28, 2022 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Carlyle Group First Quarter 2022 Earnings Conference Call. (Operator Instructions) I would now like to turn the conference over to your speaker for today, Daniel Harris, Head of Investor Relations. You may begin.

Daniel Harris

Thank you, Towanda. Good morning, and welcome to Carlyle's First Quarter 2020 Earnings Call. With me on the call this morning is our Chief Executive Officer, Kewsong Lee; and our Chief Financial Officer, Curt Buser. Earlier this morning, we issued a press release and detailed earnings presentation, both of which are available on our Investor Relations website at ir.carlyle.com. This call is being webcast and a replay will be available on our website. We will refer to certain non-GAAP financial measures during today's call. These measures should not be considered in isolation from or as a substitute for measures prepared in accordance with generally accepted accounting principles. We have provided reconciliations of these measures to GAAP in our earnings presentation to the extent reasonably available.

Any forward-looking statements made today do not guarantee future performance, and undue reliance should not be placed on them. These statements are based on current management expectations and involve inherent risks and uncertainties, including those identified in the Risk Factors section of our annual report on Form 10-K that could cause actual results to differ materially from those indicated. Carlyle assumes no obligation to update any forward-looking statements at any time. Turning to our results. For the first quarter, we generated $183 million in fee-related earnings and $303 million in distributable earnings, with DE per common share of $0.74. We produced net realized performance revenues of $118 million and grew our accrued carry balance to $4.3 billion. We declared a quarterly dividend of $0.325 per common share. To ensure participation by all whose on the call this morning, please limit yourself to one question and then return to the queue for any additional follow-ups. With that, let me turn the call over to our Chief Executive Officer, Kewsong Lee.

Kewsong Lee

Thanks, Dan. Hello, everyone, and thank you for joining us today. We're accelerating Carlyle's growth by diversifying our global business and running the firm better than ever before to drive long-term shareholder value. This strategy helped us continue to deliver for our shareholders and investors in the first quarter. Our FRE grew over 40% compared to the first quarter last year. Our leading investment platform demonstrated continued excellence as witnessed by record accrued carry balances, and we are increasingly diversified as over 2/3 of our total AUM is away from corporate private equity. We are pleased with our progress, and we will continue to pursue organic and inorganic opportunities to drive further growth and diversification while maintaining investment excellence and business discipline as we navigate market and geopolitical uncertainty.