CG - Earnings call 4 2023 | The Carlyle Group Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Carlyle Group's Fourth Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to hand the call over to Daniel Harris, Head of Public Investor Relations.

You may begin.

Daniel Harris

Thank you, operator. to Quarter welcome XXXX Full and Call. Earnings morning, Carlyle's and Fourth Year Good the morning Officer, call Executive on me With this Schwartz; our Officer, is and Chief Redett. Financial John Harvey Chief our presentation, we morning, our release detailed available a Earlier which website. this also issued is Relations and press a earnings Investor on webcast, replay is will This available. being call be and a

placed substitute expectations report in in These measures extent current XX-K statements made the measures forward-looking on based cause should These on with will We not identified isolation involve or accounting provided including today's of and indicated. are from our them. during annual principles. on materially refer prepared from undue do to today GAAP future Any to be performance, statements management these guarantee risks a Factors those section certain call. our for in as accepted generally and reconciliation actual the a those differ be earnings Form available. and release inherent accordance Risk measures non-GAAP results considered measures uncertainties, to in could not financial reliance We that reasonably not should to of

update order to please all front release, earnings our our queue the obligation John statements In additional quarter, no time. to forward-looking the one during refer and In yourself you'll in this that to follow-ups. remarks. presentation additional limit assumes Carlyle on any the for any with of will Page return then Harvey several pages starting X find to the to at by participation today, ensure any those line question and

Officer, our on over And follow me that, I turn the Executive mentioned, with presentation to our website IR to you Harvey along. As find can let call Chief Schwartz. the

Harvey Schwartz

us. Dan. morning, joining you everyone, and Good for Thanks, thank

we momentum. margin They XXXX finished last finished set and significant QX at $XXX record firm on FRE X. FRE billion. include with with at record Page year, million, AUM you record XX%, which several $XXX see the records year at We Our

fourth quarter, raised the We put work. also our $XX quarter us fundraising which largest firm. billion the the investing finished of to clients up trust for third in we with our significant fiduciary team entire want in and thank We in the the they capital for Carlyle the sets hard of Again, in XXXX. their their us success year for history as momentum,

plan our turn first, key going to are please X and document. compensation today's X explicit shareholders; on to alignment John in initiatives to Now Page will enhancing for second, the targets and areas: lastly, in model; optimizing XXXX. strategic approach to third, financial In we XXXX. to focus make capital changes we capital stakeholder And delineate discussion, and I to returning our

shift to more stakeholder Now clients, employees compensation designed professionals in explicitly alignment a to we're Page our and strategy and to across X, shareholders. announcing want enhance tightly our Today, turning a most, our senior skin and investing culture win-win-win has significant our in our a all employees It game. investing the our our earnings Carlyle also clients, in FRE our our tied And get performance-driven and you, of step-up a margin. their from alignment. compensation of each value more performance. clients senior our having enhancing shareholders. our more recurring also benefit they for teams is steady our of investing Shareholders what fee-related investing stakeholders, stakeholders,

capital Second, changes I'd our like to to strategy. discuss allocation

for incremental to $X repurchase capacity X. of billion by We've our an Please turn increased $X.X total a billion. share Slide

John to capital Board approach this opportunity shareholders enterprise, our to in our return leadership compelling. balance provides in share more through to the detail. and will to At Given our the positive management flexibility sheet our outlook, price, thinking value quite about see excess walk capital strong and us senior capital incremental capacity and this tremendous is return clearly shareholders.

on Global to Page our Now Global want strategic largest billion several to AUM. almost growth. initiatives. I is $XXX Credit of segment and positioned XX, with Credit moving now touch for Insurance strong is

a the increase added XXX% AUM in insurance, We of Lincoln have in from credit nearly past driven years. X over including the XXXX AUM Fortitude, billion $XX transaction. In we Financial

pipeline years billion. We've and We into strong In XXXX grown operating the momentum. have AUM coming Investment X Solutions, opportunities. have XX% momentum great to deep a $XX of also we over growth past

see our higher environment. of and wealth should investors are made strong secondaries attractive producing as growing to also strategy. impacts are results. in progress shift Investment strategies well co-investment and Global current XXXX our returns sharply fundraising in their Our for opportunities the effect FRE Solutions positioned capture We've the

powerful The billion we Since Carlyle $XX is inception, unique a raised and brand assets. wealth of asset. nearly

as appreciative we partners of We behalf grow together. clients. on placed the business are trust incredibly of them their with our this wealth work look that us management in forward to to have continuing We

the credit the interval CTAC our in secondary quarters. fund, and have market several in a have to our product excited fund, next PE are We in market CAPM will and today, the PE we

Now switching to expense management.

the on While expenses. are eye time, also we a keeping In careful XXXX, continue we as focus, remains will invest at we our platform. executing headcount the on across growth, margins we disciplined to same us while we in At other key time. growth strategy grew allow area manner areas. our expand to in a delivered savings of same expense our focus Again,

pass XX, John, let preview turning me targets. to Before financial quick Page our XXXX you give on to a I it

We are $X.X FRE targeting of billion.

XX% to are to range FRE margins We targeting a increase to of XX%.

clear our active stock over let shareholders. me be John. in to increased shareholders by inflows capital return capacity. And to billion ability to significantly to to we buyback expanding targeting to turn capital buyers with the value Again, we returning share the intend We of again, see momentum. we now as $XX are our with We our XXXX. have exceed strong began XXXX you, that, And call

John Redett

topics comments made. want Good a morning, everyone. this several Harvey. few and Thanks, to already cover echo I morning

our changes and to alignment compensation strategy. stakeholder First,

allocation. capital Second,

Third, by create compensation Essentially, success-based. driven stakeholder compensation our provide our results. Updates fee-related on even drive want to better comments more senior to I our were targets. for our to shareholders. to lastly, will become alignment earnings people our strategy desire financial And some XXXX XXXX and our an

follow will ways. This our Page changes increasingly to result, model over earnings flip shareholder-friendly a the X. you X in compensation main show And As more want in a mix phased years. up to our shift fee-related next earnings few if to along, as should

related ratio Our XX% to compensation XX%. decline to FRE from cash to will XX% XX%

billion, our value Even to charge of earnings going ended future largely should clear, year future want allow neutral GAAP increase higher in This of from the over XX% $X.X carry driven. revenue is performance accrued after compensation the will XX% XX% to with to FRE about changing our be and level this changes, for related shareholders. carry a noncash but net this billion not higher at of to rather us per of share In portion ratio time. be to DE having will more This represent Our we over these employees. realized to $X generate shareholders compensation, overall charge, compensation quickly. success balance to connection to XX%. to I incurred being the change onetime a for continued $X.X

our professionals we have that of growth help addition, units to achieve performance the In a us accountability objectives. stock awarded select senior to number

with they invest appreciation. price significant units These highly only as are with aligned share shareholders

As have of in billion million. annual back capacity in Harvey $XXX the to dividend expected stock. shareholders mentioned, is to we now over buy This an $X.X addition to

not to the return us strong into both invest balance exclusive our mutually importantly, priority. our and shareholders flexibility remains These sheet are provides growth. businesses Our top capital Investing to decisions. meaningful for

generated DE per share, backdrop. on Moving or just despite difficult record. our on, let few million produced revenues net of $X.X in billion third realized a best $X.XX me a year-end market We results. $XXX highlight performance in our We year

$XXX Turning we in in earnings. of FRE a a an FRE $XXX also produced record to XX%, We fee-related the a record for And quarter with year, FRE. produced margin fourth record. of million the million

and shift As we expect margin. meaningful already for noted, both a higher XXXX FRE in we

strong prior we $X Included terms that by raised quarter the fundraising, Global than capital total the in had in Credit more billion Harvey than year more to is Finally, as in bringing finish fourth year. in mentioned, XXXX, new in XX% the a than $XX billion alone. of in higher

We have significant momentum going into XXXX.

We than billion, higher expect XX% XXXX. more be than $X.X FRE to approximately

finished our FRE more And be increase to expect XX%. than $XX with XX% we we momentum. year produced We to strong closing, the inflows margin expect in to and lastly, XXXX, to In record results billion. we

Now let me the your take to questions. we so can the call over operator turn

Operator

Our Sachs. [Operator question Instructions] Goldman with from Alexander Blostein comes first

Alexander Blostein

is making changes we with remarks. also today. all -- so So was all on the I you more guys explicit helpful. the in discussion disclosure highlighted first, And appreciate could you the great. prepared obviously, your are That's the I momentum very start the hoping strategic appreciate

XXXX, into to out $XX respect look you over particularly you know billion. As highlighted fundraising, with I

So sort you walk the repurchase of think pacing well? in momentum the today us that that, through related inform that. I how then the was business, about of And announcement the as could hoping as made you to share you does guys

Harvey Schwartz

thanks. Alex, Okay.

it feel built. So really you could

I new spend As mean clients. XXXX my teams think I felt time about like over and investing of talked I in time course with coming the we priority my my as was the the I and I with CEO of clients know, this, spent XXX to to year. and a my during company, really -- And new met and you investing ops

terms to me And them. I came going and margin, feel was results, cost-saving the of the that the seeing could my it really you it record brand, think FRE, with fundraising. focus, -- building and teams the receptivity initiatives feel getting the together you even I which me, talked and to of obviously, we of important record momentum quarter, And internally. the about you're even lot third more all really in in is the time know than execution, spent these the And a about know could record

momentum environment upside coming optimistic a complicated. in tailwind I of feel provide In And these targets. cautiously in which XXXX, the terms the maybe and feels [indiscernible] should good backdrop some 'XX, and to about

around putting the it year. together, quarter-to-quarter. to what knowing provide terms about all we'll think. fundraising the I Specifically the best focused we of But together of know can value make in put focus course One, you X way fundraising, we be you how up We in built LPs. a comments. really in it on the our We I'll on think

numbers. And these feel about so we good

John Redett

in terms approach capital about of allocation. Alex, allocation, been time how question, of to a of capital your thinking buyback part much lot And disciplined more and terms on spending in take execute a of the look, going we we're we've

the of franchise. the think $X.X the important think buyback reflects an true billion I don't is we and stock value step, the first

consider So to should of stock. active buyers you us be our

I $X.X to giving enables in flexibility shareholders to also a dividend, to very strong balance addition important remember, to the sheet, capital think balance to we business billion our invest strength have have via -- back a the have it's sheet and to to for which buyback we continue flexibility our stock and our us growth. in

Operator

comes with question next JPMorgan. Worthington from Our Ken

Kenneth Worthington

look numbers. like at like these It XX% it we first the CLOs you more at to than feels and fundraising combined, X looks billion. credit, but As on was more CTAC, gave in the the year there's elevated some $X color deck quarters in you of and raised

jump So should in quarter sort can the that you of fundraising continue how flesh credit this and this into in year? out

John Redett

for think question. quarter. the expect good of We it's fundraising year great importantly lot that. I that on I obviously actually Thanks a be great and will look, great, Yes. fourth really momentum going We into I fundraising as fundraising a for to tough There's at And continue We've kind got credit well in well. had credit to that, would XXXX. volatility. fundraising of a visibility had Yes. quarter-to-quarter. look say,

which we the It all really that [ mentioned, products as which of ], across of for our is raising you is always our CLOs, spread we're well money CCOP and raised fund. Solutions, was market. really, our asset-backed kind Strategic in CTAC, money Carlyle it as credit for products retail

platform. So pretty the across consistent it's

and is important had fundraising We fundraising think focusing credit takeaway not frankly, we going quite the XXXX have really good broadly. good I a year quarter-to-quarter. more momentum but into for

Operator

next from Our comes Autonomous Davitt question Research. with Patrick

Patrick Davitt

will You compensation phase framework in. the mentioned

don't do in you billion do transactions assuming you are what you if for guide? subdued, in your have these from ratio? will are XXXX if to that and And a $X.X realizations And compensation better? commitment vein, assuming employees FRPR? realizations to the for what get In words, abandon other targets have these remain you So

John Redett

idea going The were important. out is like. this really we us execute of super Look, you We're to our very deliberately. pages, on I the reasons walk Look, this the the what to range. to compensation our going But backdrop flexibility neutral. execute one no It's think put for change look, this away prepared through market be gives is we remarks have deliberately. thinking we when should from will on look this in this intent the range a DE

The period, it. There will will or not our for be for not and impacted. a be be not you compensation senior at But if vast variability majority of couple folks employees down, in compensation our it we'll in be year-to-year. that's of is to intent year some manage up our look how over

senior their that performance the it's to that in stock units. I and compensation, also them grant some remarks, my we mentioned important out, point have will variability think did I people in

alignment stock upon best quite units These really friendly. senior So and vest really share And here they have we shareholder-friendly very shareholder performance everyone think great hopes they're only price on frankly, people. appreciation. I with instrument. actually because do the are call They our

from billion XXXX, XX% $X.X target, look the we XXXX, feel million step-up FRE terms very good in you $XXX FRE it. our of In about the at

continue expenses. X is prudently focused really compensation we the change we're third, growth, on. It to it's in components. will which It's of and terms business the manage very Two,

changes. a cutting expense no will compensation bone, business prudent have we it but prudently, manage but We the of and intention the to management is growth,

Operator

Oppenheimer with Our next Kotowski Chris Company. from & comes question

Christoph Kotowski

drill a you -- Yes. me? and that wondering of fundraising I give us into you hear Asia composition under can't raising? of the flagship like $XX and course kind of the the even what big particular, X you kind funds and could numbers Europe to relating but to billion if target, your was down more that year if should the the during the Can bit -- in the expect in -- you're we of

Harvey Schwartz

Yes.

I it broadly you should think So think the about platform. across

lot platform, record good the our have We in the our activity whole off you credit space. fundraising coming as should momentum, quarter. see to private of expect saw business, infrastructure, fourth equity real really private the the fundraising equity across the a But activity business you across in estate

we franchise. So this model built up entire across the

specifically, about definition I'm like the equity, rest equity, of corporate I private think in the the private equity. industry, narrow talking of private

our the We still again, will in feel there'll quarter platform, for business feel don't good think the we the report $XX headwinds the good I industry don't But We about we the quarterly. numbers but across about be number. a good in that. think about billion I for fundraising. momentum really just John emphasize we about it. these run business, with

John Redett

in showing couple And business, the momentum as solutions the only to add thing private great solutions in in I'd credit. equity a in the have And well we of market. we're is and we're funds addition seeing --

Christoph Kotowski

of is kind and year? is more buyback as dividend, you it the the actually of authorization, add that $X.X lot a DE you up a Or that conceived ends of Because the X-year just the $X.X And then your end quite when Great. authorization? the add curious, -- of at speaking likely billion share flexible? for Okay. billion it's

Harvey Schwartz

Yes.

So a and again, take this, let's framed just step back. the way John

how and the think is really where And returning to and the of of the step I capital, of a about we events marginal have and ROI. of in we terms about But when I this discipline just shareholders think taking shareholder purely capital. about we think think me growth capital in years through investing you known alignment think for many around back, growth. really

the that's to fact and have about thing our So in important when of to return compelling we This that. growth available this shareholders. to the repurchase the first investing is quite at capital the it's value we for that most allocation share reflects enterprise firm, capital look

returning to we for very terms the We're but give the going to want range disciplined, about sure, flexibility. X we the where narrowed So finding this driving of of that efficient exists. shareholders year frontier in what do balance, is growth, systematic to capital very to effectively of full and this haven't be ourselves

X how that's dividend, But addition as year, should thinking to a it's be John how it. about see not is And this you we're it. which year we're in again, you as $XXX buying million back. about the thinking earlier, stock implied, because that's expect to active But said us

Operator

Citizens comes question with next McKenna Our Instructions] JMP. [Operator from Brian

Brian Mckenna

After revenues income XX% performance apples-to-apples more strategies? the specifically the about that to flagship realizations? Net performance you're kind heels just bit the the are curious, morning. year-over-year decline relates as with of thinking And of you know of comp some I it solid private I'm time? over Accrued deemphasizing rebuild Harvey, the a rebuild from on in changes equity a how this XXXX of contribution But recent

John Redett

Yes, performance Brian, our expect still be of a of still to business, -- realization. deemphasizing a very we we're component business it's say it core our it's John. I and carrier revenue It's forward. core wouldn't or going component

of You're employees comp this is more fee and is going as right, that and to going as are getting earnings shareholders more reset. far shareholders to less high-margin

price. of a percentage still still in share. remarks, a said think which very accrued it's have represents $X billion I I As net carry roughly we still of $X.X our my share meaningful

Operator

Our Brian comes Deutsche next question with from Bank. Bedell

Brian Bedell

we as sort the profile through of because be and this the key a year or on with longer in the longer-term you actual to intent build steady sort variabilities for margin to And the 'XX to just that? growth margin FRE to wide a comment can bit the margin, sort and would term, at to And of congrats of a if maybe is and have to show not from the And 'XX more I reported quarter that, guess, getting I comp Markets building range that know year. up. as compensation fee target what good well. is XX%. FRE business. it range, And looks it of this on the you've results FRE, your that, transaction XX% on contribution Capital fourth 'XX little talk Harvey, both looks line very the what ends you the change like working about on of been just and each then of march

Harvey Schwartz

leadership thinking how a about me just take a So and tell let step little a as back we're it bit you team.

First in of The terms of about will actually capital of came of out It's XXXX foremost, and team and markets. for first that for only And -- the pretty markets into capital we all, retaining is for best the really think noting the together the The thanks momentum, attracting environment compensation the for that is, muted the embraced carry talent. reasons focus. sure. it's one John model about range and change range, talent. why and us, through

an have team here. We extraordinary

that sure sure make to make and as want we over this actually this, that we introduce time. have we And the to do flexibility patiently we methodically

the will I can foremost. deliver long because most hear range investing and don't you'll but gets absorber, But and think see designed talent their So and critical model. that's for how outperformance of the and acts Who's everyone for we periods That's up? We're that shareholders. performance deliver the run, talent our sure and that clients our deliver within for first basically an you. manage move periods shock a the we this output. see where will is this you'll as make this us to it'll thing that going in paid for

Operator

Our comes Budish Barclays. next with from Ben question

Benjamin Budish

strategic funds we flagships major you deck, one in same raise of of Harvey, just typically, And X and sort Investment go your kind curious, as the of see around initiatives. the time. Solutions I'm identified your

a AUM by like pickup we large AUM, flatter followed very so see in And growth. period of maybe

XXXX? indicated potentially fundraising? vehicles just in But we to might sharp see What change initiative, in expect more that should this identified terms curious, or see XXXX cadence that strategic there? upswing given in that Does run-of-the-mill you as mean You XXXX should a a sort we of FRE. of and that more how

Harvey Schwartz

lucky year ago, businesses recipient look, talent. So up and I of amazing everyday. showed some literally I And 'XX, some a almost was in franchise the great

in FRE. things amount our of course expecting of doubling momentum. of prepared One as And business. team remarks, of is those talented growth. we're over we It's And secondary the year, an the our indicated with huge incredibly their a a

continue is Obviously, mentioned There's fact business. just that launched that financing in the that to a recently build aspects CAPM. of we business that I we've component

really I think consistent it's this a a with tremendous for wealth opportunity clients, is diversified portfolio performance.

grow way. I -- just you'll in business us see think So prudent a you'll this

I team momentum. highlighted with think strong historically, really is this it as get a but much. didn't maybe lot a of

Operator

comes question next Hawken UBS. from Our Brennan with

Brennan Hawken

comp hoping time. little John phased So a of have you because maybe a guys change this in understanding you function as but it believe references could made indicated somewhat peel a a we indicated over little I Harvey, bit, to touched I'm And absorber. on that you've it couple was shock the was a

over there's maybe to distill going time. look could help I'm So the it, bit, sure and what to is you a but us nuance little phase-in layers

And the the the absorbers. even in it's you us how X for years? play help in coming between understand in out phased Could will entire play the just once fully still range difference shock next those is allowing

Harvey Schwartz

alignment for this for process of performance over a quarter we're constituencies, I a about It's year. all really again, talking or time. pay So what managing would and across a long period incentive our say, not very

And think be performance. compensation so I the said reflecting the I again, absorber, about dynamic stock will the it way when is ratio

course, we be I sure repurchase around be out a And fundraising. margin, and put around our that ratio our of years make may target tick lower We're little But up investing share to billion you there'll FRE our the are realizations most giving because is know $X.X new flex. financial The want the and obviously, the we announcement our the talent bit. ourselves rewarding confidence compensation targets about thing in that's talent, there'll important capacity. consistently. see we that And the the where

insight into things how about you numbers, those a around confident highly leadership feel as we but some we're we team. think giving So

Brennan Hawken

though, that referenced us John, period. help you like? look a what phase-in Could it. would understand you Got

John Redett

Yes.

look, going I our of business. compensation. is think in component of -- of a Harvey to how We're this that. do phase covered very It's business. over terms going it deliberate important be capital we This I is mean, a We're human we're to years. it's this. couple very in -- a

a should think don't it of you frankly, like. over couple years. know quite markets of So And I the look what

So kind we're react how markets to to the going of are.

create I important walk think the Again, stockholder do we only to is better thing not from alignment. away

is intent pay to not Our people more or less.

Our what in intent performance-based, compensation this is really that's a to achieved with we've have success-based structure structure. place, and

Operator

Our Cowen. with Will next question Katz comes from TD

William Katz

supplement. terms are incremental I if terms in How what of was missed of very this in terms issuing just a in wondering key many fund of of through $XX where then I you you could you And sort to sort And you success Europe are bit Asia to in little could prepared we opportunity. the wondering just comments, the stock? the -- but it at that underline broad assumption went know return test the of some shares in I perhaps unpack your And think of you billion just further. management? of you said and level, are a

Harvey Schwartz

Yes.

-- me fundraising take let first. terms In the

co-investment. solutions, As in have we in in Harvey investment of said, momentum terms great secondaries

returns. for demand the market equity, our soon be has we In fantastic our real in We'll fund. with buyout great terms estate product, Japan have private which of

I well. buyout that our couple XXXX, think face in headwinds buyout, in of I some private do which I of But very, Asia continue in optimistic and equity demand, well the and they seeing market we're our credit we're industry we about. of in be peers think will the the are covered will look, very received multiple that a products have with to products very European good seeing terms market, In as

in the were are senior-most of that targeted really PSUs, And growth. that individuals are growth. these level professionals for the these accountable professionals again, to the Carlyle. These the individuals are driving terms In are

instruments. very these think I are shareholder-friendly

roughly are it to shareholders vest. price instruments. I very $XXX share of million in XX%, as Again, these XX%. appreciation think want XX% shareholder-friendly will are value Think the these targets of and our

do If targets, our vest. those hit share doesn't not these price shares

Operator

comes from Our next Jefferies. question with Daniel Fannon

Daniel Fannon

John, last in talk like on million with place FRE in that far have $XX follow expense. savings those today? the to to stuff so other also expansion non-comp to kind rate to I think run initiatives margin come. look and you complement you what of Can XXXX in Wanted you more up and/or numbers addition quarter, about mentioned you comp might announced

Harvey Schwartz

Look, terms faster I think not than We're expenses. in firm done. anticipated. to XXXX. the expenses. of opportunity Daniel. focus record think quarter going going the manage on look shows I margin our which made is Thanks, I I We're if be prudently continue made. to think think just To at just we've I it We're progress you honest, us, some to still into fourth there's of really for a XX%, we've progress going

get isn't It's But about going expenses be story. going going expense investing in additional not focused much be the But some but on out I this businesses. story. We're opportunity would more on more be that's We're importantly, there's to say more growth. XXXX, growth. probably to to we'll in an look, the that

Operator

from Our Wolfe Steven question Chubak comes with next Research.

Steven Chubak

improving that think originations up to in as look I we given wanted to The 'XX? And the the that on markets the landscape we should pickup the you credit business. in backdrop business capital out be evolve just about fairly the has deployment subdued, how improving. the cited? How nicely the ask space in to liquid business outlook CLO but in remains picked admittedly appears

Harvey Schwartz

CLO again In partners. for equity it's business leader. incredible Carlyle, So fund, the an our franchise market quarter, captive we first raised

what strength oversubscribed long literally raise really was in a to quality against were market was backdrop. tough performance. accurate XX-year say market have It the the out think as a of of I people of and they history of team, the -- the to the with fund many would it's franchise franchise, months. The a thought the speaks in few

it's CLO of equity the fastest in the fundraise history think maybe I captive time.

the they've really work really, the have. so of they proud done that and momentum And

Now again, improving. the market backdrop has been

picking up investing is credit all in banks in see You're starting reflection again. tighter. spreads coming a of to This AAAs

the momentum feel we about here. is the extraordinary. So team And good business

Operator

Mike Our next comes from question Brown KBW. with

Michael Brown

Okay. makes certainly large valuation buyback given here Great. peer versus share the disconnect group. The the sense authorization

ask in consider lever I when for priority Just and a a start to it enter know like about seems to first could wanted the year, little the an the you capital strategic about top eventually but effective to potential allocation? for for Carlyle become Harvey, you, if that hasn't it M&A been could more equation think road. your that down

Harvey Schwartz

Yes.

me see many you open the let of the right? clear growing first to sort of to We [indiscernible] in that's know marginal opportunity building my approach. me, franchise, would it, principles have of you footings. and all So certainly on but very the family, framing. us base We I give say, my Again,

We a business I business, have just private estate this real leading a world-leading franchise, corporate world-leading little world-leading world equity business. talked credit business. about a secondaries growing

So to, manager, all and in footings global the brand. they're as need the what a we place of private markets all

see, have we've you start last given in can momentum again, off for and year the in you So to and this lot year. of, record that we from we a results numbers build the

the we never principles, first I think, take again, anything table. would off

investing makes our logic clients. for I think if industrial sense, the good it's

but Our shareholders, and we'd consider be this it, open momentum. things, teams with of we'll this not kind feeling at any certainly not to and our pressure we're stage,

Operator

Stanley. Cyprys Michael Our Morgan next question with comes from

Michael Cyprys

insurance. Just wanted credit on to ask

steps pipeline products and growth accelerate that fill growth insurance. Maybe for make sense with in opportunity credit of a taking hiring? you're bit opportunities that best some you And us that set capture the and you could to make alluded update just the see could that you If areas insurance, on new the of on there in sense? could to any to you credit and just deep elaborate can what in

Harvey Schwartz

So again, of you out credit billion John performance saw really insurance platform. the in the fourth quarter. inflows strong the referenced $X

I really our positioning like we here. think that

of So us number amount flexibility directions. to in us the gives model pivot able capital-light to be different and huge allows of a a

the here. about And so I feel very good future

to build and on the sector really the reflects will and Fortitude Fortitude partnership I future opportunity we be clear. quite activity insurance with happening the think pipeline the is for foreseeable platform really have what in the potential the

steps a different have to take keep number can growing. we So we of

feels over of outlook the quite So next good. couple the years

Operator

[Operator Instructions] ISI. from question with Glenn Schorr next comes Our Evercore

Glenn Schorr

the I'm a to more. on conversation. investing buyback finer curious versus one point put Sorry,

reduction scaled So of and see not stock-based bigger is this growth. the momentum. shares? I offsetting But I make you're Part is a of comp? bunch I the in will much you want a on areas are also A that Or the markets to this result point is areas just in net across private hear so and yet There there's growth all

how return capital this you be on of that opportunity across curious balance work plethora you I'm private this could of money So versus just in? markets to putting

Harvey Schwartz

Yes.

me a again, sacrificing you've I about and not about say, time, think same This the to capital time. capital approach think long because why and That's so listen, we're growth. Glenn, we return At the here. that's back step value the I management. known I want shareholders us this think understand for we I to So and to why underscore, compelling gives enterprise is flexibility to the

we And this we the invest will making are we forward back move growth. couple we so flexibility, wanted XXX% of over and in forth, when years, we and next but sure look

pretty financial think for momentum. and Carlyle think are you And I opportunities the see have we it And in growth we targets. the extraordinary, the

would agree I So with you.

Glenn Schorr

shares down? go Net buyback,

Harvey Schwartz

John I of it what is earlier, it market. the -- about know what don't think said XX% I

I on easy think be the math should that. pretty

math easy. utilizing So I the quarters, is think next this, pretty several if the up all we over think of I end

Operator

are no further Daniel the to questions. to any turn like for back remarks. Thank There closing call Harris you. I'd over

Daniel Harris

you, call today, Should with give and Thank forward Investor a follow-ups, we Relations to have you any time operator, questions. for your look talking quarter. your you for call. and everyone, Otherwise, next our please for joining you, thank again

Harvey Schwartz

Thanks, everyone.

John Redett

Thanks.

Operator

Thank Everyone, you for great participation. the does day. a your now program, disconnect. This and you may have conclude

The Carlyle Group Inc. (CG) 7 Feb 242023 Q4 Earnings call transcript