Do You Believe in the Growth Prospects of The Carlyle Group (CG)?
Wesley ParkWednesday, Jan 15, 2025 9:42 am ET

As an investor, I'm always on the lookout for companies with strong growth prospects. One name that keeps popping up on my radar is The Carlyle Group (CG), a global investment firm with a diverse portfolio and a track record of success. But the question remains: do I believe in the growth prospects of The Carlyle Group? Let's dive into the data and find out.
First, let's take a look at Carlyle Group's earnings growth rate. The company is forecast to grow earnings by a staggering 19.6% per annum. This impressive figure indicates that Carlyle Group is well-positioned to generate revenue and increase profits over time. Additionally, the company's EPS is expected to grow by the same rate, reflecting the growth in earnings per share and the company's financial health and profitability.
Carlyle Group's revenue growth rate is projected to be 6.3% per annum, showing the company's ability to increase its top-line earnings and drive overall growth. Furthermore, the company's future return on equity is forecast to be 19.2% in 3 years, indicating strong profitability and a high return on shareholder investments.
But what about Carlyle Group's strategic plan? The company has set ambitious targets to more than double Distributable Earnings to at least $1.6 billion by 2024, comprised of $800 million or more in Fee Related Earnings and $800 million or more in Net Realized Performance Revenues. Additionally, Carlyle Group aims to raise at least $130+ billion in new Limited Partner commitments across its global platform with a focus on its next series of flagship funds. These targets suggest that Carlyle Group is well-positioned to capture new opportunities in an evolving market and continue delivering strong returns and long-term growth for its clients and shareholders.
Now, let's talk about acquisitions and divestments. Carlyle Group has been actively acquiring businesses to expand its portfolio and drive growth. Some notable acquisitions include the acquisition of WORLDPAC, Inc. from Advance Auto Parts, Inc. for $1.5 billion, the acquisition of a 60% stake in Seidor, S.A. from Benito family for approximately €1 billion, and the acquisition of a 51.2% stake in KFC Holdings Japan, Ltd. (TSE:9873). These acquisitions reflect Carlyle Group's strategic approach to growing its business by investing in promising opportunities.
However, Carlyle Group has also been divesting certain businesses to focus on core operations and generate liquidity. Some examples include the sale of its stake in Avendus Capital to Nomura Holdings and Mizuho Financial Group, the sale of its stake in PNB Housing Finance for INR 12,560 million, and the sale of its stake in Nobian. These divestments indicate that Carlyle Group is focused on optimizing its portfolio and generating value for its shareholders.
In conclusion, I believe in the growth prospects of The Carlyle Group. The company's strong earnings growth rate, impressive revenue growth rate, and ambitious strategic targets suggest that Carlyle Group is well-positioned to capture new opportunities and continue delivering strong returns for its clients and shareholders. Additionally, the company's acquisition and divestment strategy indicates a focus on optimizing its portfolio and generating value for its stakeholders. So, if you're looking for a company with strong growth prospects, The Carlyle Group should be on your radar.
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