Carlyle's Q2 2025 Earnings Call: Key Contradictions in Growth Expectations and Fundraising Targets

AlpInvest growth expectations, capital markets revenue growth, credit and solutions organic growth drivers, and fundraising target are the key contradictions discussed in The Carlyle Group's latest 2025Q2 earnings call.



Strong Financial Performance and Record Highs:
- Carlyle Group reported a record FRE of $323 million in Q2 2025, marking an 18% year-over-year increase, with total AUM reaching $465 billion.
- The firm realized record AUM in corporate private equity, with nearly $15 billion returned to investors over the past 12 months, which is 3x the industry average.
- The strong performance was driven by significant inflows, strategic investments, and a favorable macroeconomic environment.

Global Credit and Asset-Based Finance Growth:
- Global Credit delivered record FRE with $111 million in Q2, up 37% year-over-year, supported by asset-based finance AUM growth of 40% year-over-year.
- Growth was driven by increased fee-related performance revenue and capital market activity, with strong inflows into CLO issuance and asset-backed finance.
- This expansion is due to enhanced partnerships and strategic initiatives, aligning with trends in private investment grade solutions.

Wealth and Retail Investment Initiatives:
- Assets in CAPM increased sixfold over the last year, reflecting strong demand for diversified investment strategies.
- Carlyle launched a partnership with UBS, providing access to private equity secondary solutions for international wealth clients.
- The trend is driven by the recognition of the growing wealth trend and the potential for executive orders to expand retirement product offerings.

Global Private Equity and Secondaries Success:
- Global Private Equity raised $9 billion for its tenth U.S. real estate fund, 15% larger than the previous fund, amidst a challenging fundraising environment.
- AlpInvest's FRE nearly doubled year-over-year, with strong performance in U.S. buyout funds and significant inflows into secondary funds.
- This success is attributed to the firm's strategic repositioning and the strong performance of its investment teams across diverse global markets.