The Carlyle Group Inc. (CG) 4 Feb 212020 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome the Carlyle Group Fourth Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session. [Operator Instructions] I would now like to introduce your host for today, Mr. Daniel Harris, you may begin.

Kevin. you, Thank welcome XXXX and fourth and quarter Good call. to year earnings full morning, Carlyle's With call Curt on and me the our Kewsong Executive Chief Lee, Officer, Financial Officer, Buser. is our Chief and This call our replay be available website. a is on will webcast being

refer substitute financial measures to accepted in with for measures measures call. during from isolation accounting non-GAAP considered generally be prepared not in certain principles. or will today's These We should as a accordance

Annual earnings should our Any these statements XX-K no future These Relations Earlier Carlyle measures in placed current to made any indicated. is inherent cause Risk of and that website. on from We do forward-looking differ presentation, our earnings on management based have provided forward-looking Report today involve assumes identified in this also statements the to Factors risks and we section reconciliations of a performance GAAP and Form available not which them. release. not any uncertainties, Investor could at materially guarantee on update and on those press results expectations are actual release issued undue a statements those reliance be detailed morning time. including obligation to our

generated the with million in $X.XX. fee-related DE of $XXX distributable per quarter, For fourth earnings we earnings in million and $XXX common share

quarterly We a DE and was For declared up of common million XXXX FRE per common share the levels. $XXX was year $X.XX, both $X.XX from share. dividend per

All strategies now single private former with segment equity includes which reporting equity, we corporate a is are new investment segment real more quarter segments. aligned are business. we our that our asset how structure, in and global our results our under private captured operate This equity

look our our open solutions All each well questions many be is continues we corporate you house outlook of corporation and X:XX possible of and discuss As a.m. At sure first and as pre-register as to of may portfolio Executive to XX responding if segment questions investment defer to address credit for ir.carlyle.com. February the broader we'd remain And cover Investor and and businesses. Lee. team them our these Registration at a credit that, financial management reminder, to me call with Officer, that Investor your our to opportunities global tied today Day, with Day Kewsong encourage our forward in Chief comprehensively hosting at Day our to we a our strategies on our I'm topics at our leadership Investor and time in could turn will and like let do context as we upcoming objectives to our plan. strategy such strategies over as at longer-term our investment

growth year Dan. you, of XXXX environment. Thank the complex a for change and positive Carlyle, and despite was challenging

three in to in build I'd on points. current focus growth Investor accelerating detail is on more strategy we our two at for XXXX look momentum, to like forward Our providing and Day Today, to weeks. our on focus our

delivered for results Carlyle First in very strong XXXX. shareholders

And environment. is the to Second, shape. and resilient in portfolio our third, extremely adaptable model investment proved business organization changing great and our

mature. XXXX, increased XX% less level. focus. in Distributable was FRE than perform few The and We substantial to primary year's FRE continued margins in Continuing this focusing when a which strong with of investment growth earnings, a in portfolios expect XXXX from ago on million progress by were as earnings across record we short just metrics. half start earnings me our $XXX Let fee-related years results, remains all grow our strategic of a in excess and generated XX%.

billion the the of year throughout activity alone, exited and deploying $X challenging environment, sharply up great we capital the Despite the fourth $XX for Our billion in year. the picked year. quarter momentum investment with

global of consistently value deploy multi-asset good demonstrates platform bad to ability and the times in Our class and approach. our

fourth also year. fund We the the of quarter And $XX billion and of over accelerated and $X billion eight have value billion our XXXX of since our the $XX for companies our exit realizing securities for in capital beginning of investors we've in earnings pace, taken we raised public highlight, in current the portfolio proceeds shareholders. during investment our global for credit from nearly when that and and billion the solutions public the our segments. realized year LPs will new $XX.X final our generate raised for with And XX% capital

the say much next Investor will our fundraising We about to cycle have at trajectory of scale and more Day.

to Let which few and on XX% investment buyout A aggregate equity in in me XXXX. highlights, private our great diverse remarks some balanced shape. appreciated our is portfolio move funds now and in

largest and fund US Buyout up Asia latest fully Our X fund Buyout invested was XX% in appreciated invested fully XXXX our XX%.

Our funds global the performed significant well credit during also year. volatility extremely despite

is in next balance $X.X XX just of adaptability is and with positions positioning appreciated fund structured XX%, in XXXX strong growth. XX% very management our last stable about cases, resiliency few of all more. fund make point many of of to I structures term, well for net our years. years The us step-up billion, firm. credit our XX% business carry strategies market future Nearly or realized revenue provide on the up predictable regardless our the a These a in credit committed fees firm, long capital XX% appreciated us strategy and want both the model volatility. for to us substantial combined in to drove for our across performance accrued When and our opportunistic over XXXX which performance the Our record

last by challenging the people rapidly our year were was platform environment our personally virtually of While and us, for adapted during operations year COVID. the each remote business and unaffected

operate Our new the in global investing to environment. platform quickly pivoted

manage and corporates particularly flexible and credit India to to And close Our teams carefully and healthcare regions that new pivoted forge cadence over China with developing we new and $XX enabled sponsors equity spent same in meeting our environment. of funds. deeper adapt, impact in not we portfolio ability to our flagship challenges our with remain our their and relationships and well-positioned weren't the portfolios. a the you despite with we owe limited the person of completed in want find provided our the billion to raised hard and At focused IPOs economies, a deal found them when in we resiliency growth, market through year solutions ourselves investment a for and exits. monitor volatile year. extraordinary and the with us deals, people hours technology. opportunities and global new safety our markets equity sourced Most time, and effectively private and success every our has continued thank XXXX private last We the sincere XXXX investment to work to countless on we despite like in in on importantly, partners in health each ahead and efforts expertise. their dedication, to I and of COVID say them one demonstrated we to and to

call I'll go results, final Buser Curt? Let over some to back our then come Curt Financial Chief Officer, to thoughts. with through and our me turn the

well and the the year DE We performed $X.XX XXXX. Thank in our you, throughout morning. $XXX share XX% for year. We generated in and economic since per of and million good earnings, increased best volatility the XXXX XXXX Kew, over pandemic distributable despite year

results, our into I'd digging on to items. Before like touch financial three

First, our revenues. for fee-related and XXXX performance outlook earnings realized

of the rate. DE Second, equity tax expense trajectory our and stock-based compensation effective third, And awards.

despite the up was recoveries million X% capital relative First, basis XX% $XX XXXX. during and XXX year-over-year cost basis nearly million our private million, XX%, excluding any of in $XXX equity than in flagship the $XXX funds. fee-related to FRE on new XXXX first increased raising earnings not in adjusted for FRE margin of were quarter adjusted global more points

For XXXX than credit of earnings the the year, global $XX doubled million, more fee-related level.

prior was million cases, $XX In segments. in of more both of drove also margins growth year. and the FRE both increase solutions substantially investment the majority than line the year-over-year top expanded double While

we global compared expect XXXX investment to pressure management top will noticeable produce equity private performance cycle affect global management slightly private should do for our begins Looking in fee realized flagship Consolidated continue offsetting credit and adjusted our to see to we and FRE not results. meaningfully grow more solutions fees fee and revenues higher more at with increase as portfolio to similar in equity growth growth FRE we XXXX, when realizations large than multiyear modestly results. expect revenues which XXXX fundraising to line increase. Global funds, in in downward some next to FRE expect our

period is of performing expect is value XX% realized annually. during surprises our Our revenues peak $XXX its revenues we funds performance to over averaged the then invested in surpassed than when prior remaining years material funds realized well no billion XXXX of balance the and average million accrued net in XX% greater and $XX our our averages. in markets, the carry in annual assuming increase carry thereafter capital than With XXXX now $X.X its billion fair the gradually and previous net balance higher our XXXX of to performance

conversion. amortization our our our outlook tax carry-forwards X%. DE first corporate of step-ups addition net the from our effective loss Regarding in year The arising low rate; was the on rate DE to utilization tax relatively tax benefited in rate legacy basis a full and as from corporate taxpayer, operating our

the to we we DE effective legacy as XXXX, For our tax fully mid-teens the rate the will early remaining increase NOLs expect year. in utilize

settling is Thereafter years. increase XXs continue in the before effective in to to annually later low likely rate the

our effective well. tax and this current course, on should outlook tax Of is jurisdiction, change for in laws rates expectations changes arise may any based as

$XX the Moving awards for owes compensation of granting the down million fourth million XX% impact of XXXX. the to year, than departure positive executives was certain the in in decline senior year-end and $XXX The during quarter from in on, million previous as fewer as well [ph] year. stock years, stock-based the $XXX expense

to small we compensation year's of which number awards are strategic strategic in our a most this plan. of milestones part executives, tied granted equity senior our to predominantly long-term cycle, achieving As

equity-based expense amounts XXXX. As expect we result, our to a increase to compensation to comparable

year broader Let's results. an shift had active discussion entering and have our great of XXXX. Overall, to we momentum a

than noted earlier, fundraising twice new raise and as Global prior $XX.X credit credit in more its investment record capital XX% a by solutions record as we any global years. solutions posting with investment year. raised much billion XXXX Kew and As in previous nearly surpassed both

had fourth During total Fee-related X% fund, largely in than $X of global owing up carry X% final $XX margin a predecessor million, in particularly of its closing lower XXXX, at the an quarter million fourth larger fourth the higher The fourth estate, G&A investment investment initial private positioned upside is largely XX% XXXX. nearly and revenues the up in zero with last in from closing had in carry strategies future million, strategy fund a quarter global funds earnings higher and solutions. X% Fund on growth. quarter co-investment year, new XX% now second its program for nearly strong. our capital. margin, we fee which $XXX double up Secondaries of several Fee platform-wide In with ago solutions revenue fees and billion driven round its expenses. fourth credit, $XXX was the on a from by were $XXX corporate year credit XX% increased from natural quarter quarter, in AlpInvest a the virtually both X% QX for and and X% opportunistic to appreciation transaction well segments of in XX% million in are credit resources, in activity equity, performance raising real

then During increase was on earning year a new private and from full quarter, global assets year, Fee XX% be on both global increasing equity, Fund, $XXX quarter Shifting the for credit, management to fourth million as disciplined million X% for offsetting global XXXX. $XXX was for expenses, $XX our Japan last fourth management managing we a over expense the fees XX% the with fourth modest $XXX solutions private activated to in and was in compensation X% investment down investors. for strong continue we million year for the equity we higher fees decline billion, cash X% G&A proceeds also And than by million up in compensation a from our fundraising increase and driven under fund QX. quarter, ago. Buyout quarter continue $XX realize expense. the to an

G&A was remain owing revenues this to quarter. final DE growing years. few to both let plan. year-over-year, normalization on a G&A it our fund For well pleased from the sustainability of In Net the most year forward $XX from with likely expenditures believe the continue into look to in below Real coming more we we of declined go me million capitalize of Estate over making to and litigation weeks travel for $XX to are some the our from learnings durability XXXX. Buyout sum, back year, fourth all quarter are $XXX a about as increased earnings on up the fee carry million and over prior our XX% increase were for items but with turn million cost G&A will peak opportunity detail performance expenses in you the a thoughts. our quarter should majority with six in US for recovery year. when the and to We in the the lower we expense be With levels due XXXX as realized we speaking we revenues as increasingly growth realized in funds The Kew that, optimistic past performance XX% remainder. first of over

Curt. you, Thank

We XXrd. front to in turn look of proud opportunities the the of the the have you on worked of XXXX. behalf and partners performance in shareholders your on limited questions. forward hard take we the detail about speaking excited And our few results past we And this operator all the to reflect year our and built. us. February are over momentum of now our have call more we me to let in years We're We delivered over with

from with Credit Siegenthaler comes question Craig Suisse. first Our Instructions] [Operator

Good Morning, doing Curt. Thanks. well you Hope both are Kew,

Hey. Good morning.

secondaries the you also update trajectory view business, which billion an the and impressive $XX we results growth addressable both wanted Metropolitan with almost now competitive AUM. of and across the businesses Could the to the your co-investment fundraising start provide So from solutions landscape has market, for of us how AlpInvest and you

let start. me Craig,

platform was global CLO nicely fundraising this of the shareholders in to investors is of prior for raised, And of year thing good of in growth So burn disbursed of two also in components major year, really growing it AUM the credit, AlpInvest of billion the including the really been good even capital from had fundraising, terms year, and $XX a nearly in across And various very a $XX billion it's and business record the case nicely. then lot we our early has AlpInvestis the its off ownership. in a of remember the that to years in in business some the AUM or that business.

and kind revenue year. the growth And growth industrial nice the the you is than see base whole AUM really terms then size, to to on program at historical so of team fee program, in because in a And kind repositioning platform even that you program of really in about be turn has generation driver bigger growth. just the done into job billion that The continued account numbers additive their really run-off. of looking what got will really didn't secondaries that co-investment that it a and that across take of aggregate by total be not now for of that they're for think year the so was that next $X well-positioned next raising and you fourth of as as the so should well; fees nice until quarter next

by obviously, small Clearly, that secondaries, optimize LPs that. back, surprise co-investment do pick and on Hey, a and have private management to is trying of a add do they them a is I so And grown as call up of but diversified to Craig, large are way think first commitments, LPs would AlpInvest focusing markets are solutions GP really way and ways shouldn't about allocation a step they huge the it platform it's way. And in need us to third, second, diversified lets all in Kew. the if it. looking potentially portfolio Taking class. asset new risk opportunities, the they're for you that and and what capital that a more interesting

grow think is continue the broader growing. so to this heels that whole the industry to I going just the of is fact alternatives of area And on

one. private are try deployment, to be but, base the LP in big solutions and as strategies, increasingly, to global minimize number a types also our or existing existing about that's to add of Number our these work large seeing the past co-investment were manage And So I solutions credit picture bespoke it from on that in used so believe franchise. very carry risk, two, of we we're etcetera in global LPs over equity XX% LPs

so also more for Carlyle, co of then, we'll but has to Day, you three see to able -- to of in there secondaries, that finally terrific these be we to opportunity LP is is driver very to offers show real these get this base. solutions a why underlying believe performance investments our growth huge two ahead going into Investor cross-sell, the focused going in please strategies in fund we patient. us introduction and But all we're performance of us the and -- an that of So to to primary which be introduce weeks, And been funds, solutions. in we're and strategies,

for comprehensive you response thank Kew, the Great.

Craig. Thanks,

comes from Bank Our of America. Mike next question with Carrier

on Hey, for Mike good morning. This Stephan is Dean Carrier.

deployment activated just and billion can 'XX, active invested Thanks. or looking $XX the into Given quickly fourth AUM the fee maybe quarter, heading update the be potentially is levels us what in forward? deployment like can pending the moving pipeline in on outlook you the how earning

is are pipelines of really us, has with Dean, lots we've look, thing opportunity. been, full. as that mean, And we're Kew also I comes here. it's about of as all year there change our last if it's one ever Hey, taught busy

be where classes, be regionally, it news platform, are it different sectors. ahead. and investment to strategies, opportunities investment well-positioned is the our different be be Now to good We're it it be the asset go help different also very them, it, is to value, one the to Valuation work and add also doubt levels businesses grow our teams step with certainly but about ability high. for high, no us these

of keep if economy saw we growth western India think this challenge, good can If in a in credit. And get equity volatility, was we these active in the opportunities too East which in I see is that's way year activity indication more platform lots see of pivot, a deals. there's So way last to markets finding buyouts traditional certain we the if expensive, Far grow less private bit little ways are to a China. and investing, in the

So levels make it well finding very is great to platform our very our pipelines positioned believe are and difficult, busy, create I very valuation value. but keep opportunities

and as we credit than the a the in adding as just really pending relatively billion investment $XX in bit lot $XX little either of global turn on to is earning private global solutions across we fee a is and invest capital. evenly larger over tied a spread fundraising of complete or three as And funds equity little billion segments, that the AUM -- on

providing really credit FRE good investment both ramps, so And solutions. particularly in global and

guys. Got it. Thanks,

Thanks, Dean.

Our next Robert KBW. with question Lee comes from

little morning, just taking for wondered, on capital management a maybe Good focus I bit. thanks Great. the question. my

as on, ramping, with So maybe you look just want forward the refresh particularly dividend. realizations stable quarterly have to you

of and how the -- versus growth of how reinvesting road do where it that think the trade-off So think here do how business, you of and you buybacks down in in should does think from [ph]? back we dividend

that capital sure earnings in really thank driving core capital business. drive you in obviously is question. is and business growth hey, really that Managing the our that priority, Robert, the making growth for to

then, new growth And we initiatives that that everything priority how at really fixed the always sure our is maintain in and we indicated a making dividend. for that's we how to will to plan is for sure is is grows, we cornerstone have to so as capital etcetera funds, making initiatives, invest have But looking available us. strategic our past we grow do grow And our will we fixed dividend. FRE that in

to uncertainties. FRE have term because past will not in dilution. up, that we So that of anything manage of around before really year, to want see a terms be but given can cautious to underpin have growth buybacks. we of to really are would when kind being sure dilution pandemic our businesses or and with said grants both can I dilution capital Yes, indicated kind as us how to way equity be With management, FRE expect we active make to in buybacks the related similar what near because already through through kind you I think what all do. But well-positioned and six well in X% respect of use want through this we that of we is for we as slightly XXXX We're the

Thank Great. you.

Thanks, Rob.

comes from Katz next question with Citigroup. Our Bill

Thank very you for and morning. good much question, Okay. the taking

we look for you the comp sort to to the back those maybe revenues? then, the full-year is So wondering growing And just of that of in it as and interplay could of your XX? off how quarter will one I the Is terms for Thank the outlook for to sort tie it 'XX fourth go against you ratio maybe pacing there? of Curt; realization the and jump XXXX off guidance on the point,

so increase the watch past was Partners said we wealthy the but and year, $XXX high, past as said could prior exceed average we we is, XXXX to clearly well million, [ph] miss year, for something this performance so But our I your about talking going could as net set, the so in morning. outlook. revenues, not about that's just carry thanks and good Yes, you're had carry in on million is of to carry the VI up $XXX predicting question, Bill, We're I we occur it expectations in was between expect things we $XXX talk and in my a our XXXX from in carry year. in with to we net to XXXX but hard Carlyle markets XX% turned value and accrued just million below realized a also level presume realized What surpass to to that about carry -- positioned could over year, really Capital of remaining fair ground. do always QX. gradual predict remarks the precision. to particular, ran

we at taking XX% was CP carry at you true rate, all full carry XXX, it's which the on nicely at not weren't a that rate. said up. where look full fund if through we set the of VI did is, also We And take

So there is room to take it at a higher rate on CP VI going forward.

there have More funds that many are turned carry. on accrued importantly though, other in that are not carry yet

Japan Asia a buyout example. IV III example, is a is good good

of of know color, but will you thinking that And funds to that gradual Bill. of as know perspective positions those so kind as, to some away. gives kind turn what fallback hit that also is not we're management all Hopefully, and careful kind that right will of a so also funds as increase bigger from the trajectory you you does you on, get will we're that's on that on where comfortable signal

Thank you. Okay.

next question Morgan. JP Our with Worthington comes from Ken

Hi, good morning.

Turning can Carlyle? an your give you steps to for insurance insurance; priorities then what operations? maybe your the and insurance update for for Fortitude on us are next And

it's Ken, Kew. Hey,

now a little we patient, of everyone this color I'd the me ask because as mid-teens at more with excess I bit look, are closer we're to talk will Its give is liabilities capital. the Day. got It's its great, book Investor now. right now. value Let expectations. adjusted our and of about the right be our just our to here But a you and doing ROE performing bit pleased in mean, that with Fortitude is line very annualized is

start out is it have and acquisition. reinsurance it stood via up fully, ready we to importantly, More and/or it carved is scaling

In on rotation, track been rotated of this we have year already of over $X management, so. is billion, or my and next understanding will to assets towards which of hit a under the Carlyle about think in billion is $X.X terms terms over

across to broad our occurred what's is that that's is Now, rotation platform. very more important understand

three received private funds XX have credit funds across to Fortitude semi-permanent close capital it's equity, type represents of think solutions. investment the global global and all into that I and it's investment our segments,

feel very So on-track. the very it. We platform is about much itself good

okay, we a wait more question with ask couple respect to in And the is, I'm this of going at weeks. now you we that, so where do to Investor be bit talk from about want patient to And and that right comprehensively a go because here? Day little

Great. very you much. Well, thank

question Stanley. comes Cyprys Michael next from with Our Morgan

Hey, question. good Maybe carry just sort commentary multi-year the to pick-up, of taking the you for back morning. view on coming on some Thanks if the your will. of

I think XXXX turn to carry that we seem back you XXXX balance cycle, at guys realization two the the so. receivable to if or look of over every years

years given that next could XX% couple that couple any that out rate different the limiting so, call there from in or XX% the say the top, years. pull-through of to would the is look next past like outcome as a or pull-through any performance are XX% over than and from today So it through you we factors a the hitting over over cycle. that say result, guess of that monetization a prevent anything would with that receivable line what different I in year your hitting pull you you've fund fund of done up if and

past I'll Mike, it's fully our the enough. make is Investor that weeks. to a respect Day the at applying speak of terms same the XXXX that that not look portfolio to in of of sure right right years. mature to math terms mature Curt. of And on how look through it But you been at past couple in in lot Really at good same XXXX of that's about the back now, that's kind happened years be exactly making years, would analysis that in I the But 'XX. average. And what of held outer where has and we're not couple cautious to if yet that to place conclusion with 'XX. more is to two at in

different a anything XXXX of the fair sort that next could Is to in with say result math apply you XX% that to years couple outcome than beyond there is of would roughly? different today that portfolio or

Yes.

long in any always of good and buyout in that but do are a makeup where a because opposed comfortable. in you at to have a more as point think, to over little gets I making know markets that's lot big careful little markets only correlation sure time. more are with producing a all funds of it causality it the be would has that it's capital say I to math bit carry, terms And

Okay. Thank you.

with from Our Jefferies. O'Hara next question comes Gerry

credit, on one fundraising a solutions sense most look that Great, the clearly momentum thanks. perhaps like. But traction the just products getting us obviously stronger you might even give Thank pipeline new of what you. has for Perhaps and global seeing in and segment. are can building been what

Sure, know. it's I highlights to credit a great to Kew And global do the is broad here of deep here. as as bored be momentum hearing a me, you is you're in think this going though platform got segment, dive from [ph] Gerry, The on this two sit there right, in one we're weeks. it's you area, today, we

today, activity market we have don't And any of that seeing and year and is on infrastructure this have global in are singular instance we have credit fundraising, be accounts one comment level and quite are we this, some the special all credit scalable projecting for is to we the account strategic we're you respect want strategy CLO continued also market which accounts seeing market well. to a they respect coming last segment to of a can doing the strengthening set and I With in certainly, up because see initiatives large. is traction back, is pickup are opportunity in Our but given We're seeing, to market. what the real very funds. in raising that them, quite do platform-wide with on from

weeks. let two dropdown So platform, and into earnings, there but -- hold say, the progress, in we're look, the the me come in to pleased directly more just growth with the

Fair enough. the for Thanks thoughts.

Glenn with you Our next Evercore question comes from Schorr ISI.

Hi, thanks.

Wonder about milestones. aligned about people if investors equity but kicked people talking they milestones interesting? to. things talk -- quite looking grants bit the you that's any with a you're little little I interest the obviously senior you they're when I find bit. grants, the Curt, know that are and there, are just could mentioned You a long-term specifics same for, long-term tied that think it's there my

and hey, said, to a results. -- question. it's are of are of And of testing. the time, Glenn, is mostly They kind and testing the really component predominantly time performance. these a that for FRE. most I that to really earnings people grants our senior firm your the And are in as opposed our strategic FRE thanks largely drive but There milestones lot or those underpins what as plan mostly is performance can

And you'll so we grow see FRE, vesting. as

good. think helps Hopefully, alignment And so that is very we that

-- the And Yes, lumpiness definitely.

due retail, or lumpiness more the is think capital in and enough has of growth investment to lumpiness? smooth the historically need of is goal even some growth solutions, say help to the the like. do to that FRE infrastructure say, see Is to that markets, I a I that the you credit and if big or stair-stepping smooth we cycle, should even raises, the maybe both capital global will,

in -- lumpiness that so the annual fee-related three years, for fee-related would nice say the not I three step over that earnings talking over So earnings, year lumpy. in each -- and think well last has I up years we've seen been past

you credit similar, see the but FRE similar top pressure or of expect from I've fee downward to really line adjusted the will been so that's XXXX very kind of on slightly management And managed up. million that get a as in the and they that as pressure. that clear and can back sector. growth within and that in that put And you growth, expecting $XX and perspective, that back realizations as years. real be we're side some from segments solutions equity, its good later will some a simply then to global for up XXXX, its in more For bring -- two FRE fundraising will private But fees end again

next So year or again, this stable to XXXX. up slightly year

you. Okay. for rest. the See the you on Thank XXrd

Yes.

question comes with from UBS. next Beatty Our Adam

for providers not and but and morning, offerings of question. new, such. standalone you have competition from the solutions attention back the gotten some that public I competitive good there the a thank want around from on is Hi, circle recently taking discussion more to standpoint,

mentioned between advantage? So just and the an you the by are you. see and Carlyle differentiated of LPs how there that perceived to Thank interaction solutions wanted positively rest and as Carlyle also AlpInvest is

me start So let here. will and then jump in maybe Kew

with particular. The track the its in at thing a for So look of how that in solutions respected particularly invest GPs relationships with, It's we and I that but solutions the great its you would phenomenal. performance AlpInvest terms of standpoint, into and from market funds as terms under business, long-standing point in brand. competitive to in how as that record. compete a really that well solutions platform, AlpInvest separate factor in And been I distinguishing market is that us. terms platform Carlyle, goes in has think the And view a and a of investors to

but terms that their We walls perspective distribution of build around making helps those platform to this very relationships a our fundraising strong around set. information reaching of really in to model key strong the are want they are in help really the sure very introductions walls, not make like internally bring using and terms them things the product from

gets that most question. hopefully of So, your at

you much. very Thank Excellent.

is, substitute I LPs thing would add complementary a Yes, -- of the all, would of Adam, not our Adam, strategy. thing from is add this the only perspective, I a first only strategy,

into a private optimize to allocation as are So markets AlpInvest gain they squeezing co-invest, through to etcetera. further efficiency further way [ph]

Carlyle by respect now funds. to with much in with sitting So private on and very discussion side adding with to the their it's allocations LPs side our capital to

sense to Carlyle in the now growing discussion huge of base I huge and it's of to us going client advantage we say why is as keep So try portfolio that's a a be for advantage -- existing that's the AlpInvest.

Second that into out and now of And LPs market. private of these right allocation dollars all, and how optimize the strategies like from markets further credit are trillions are going equity are said, private risk to of benefit is to all these going competition there I good. in fact create figure private to in It's growth strategy. this trying a to

create So in more think to growth good got a a has segment, awareness extent, good competition tailwinds. this going and healthy certain It's I thing. is which to

makes perfect, you. sense. That's Thank

call questions back And over I'd I'm to time. not to the showing this Daniel at further Harris. any like turn

you And all Kevin. morning the for of you, throughout thank course your this Thank and time the past year.

speaking have feel of We We with Investor to our great follow hope February questions please on much all have XXrd. looking you Relations. are very you to today, day. with up Day free a you Investor Any on other forward

Ladies does presentation. gentlemen, conclude and this today's

wonderful may You now have disconnect and a day.