The Carlyle Group Inc. (CG) 2 Aug 232023 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the Carlyle Group Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Daniel Harris, Head of Investor Relations. Please go ahead, sir.

Norma. you, Thank welcome and second XXXX quarter Good to call. earnings morning Carlyle's incoming morning the Financial Chief and and on Redett. me Strategy, is of Officer, Financial Corporate Head call Buser; Chief With Schwartz; this our John Officer Harvey Executive Curt Chief Officer, Earlier press and earnings issued a on our a also which is available we Investor this detailed morning, release presentation Relations website. webcast and available website. be a on will being replay is call This our

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

We undue including the results measures to extent risks Factors reliance placed cause on Form should provided at guarantee statements made GAAP involve to actual inherent forward-looking Any section reconciliation available. expectations no Carlyle not statements materially release statements not obligation to based our any forward-looking be assumes and earnings XX-K annual have management of Risk update and identified of These on current on any to reasonably those today them. from a report and uncertainties, in are performance in indicated. time. the could differ these do our that future those

to turning results. So our

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

follow-ups. then common the of all per of one line for of by and return quarter the the please $X.XX declared In ensure as quarterly additional end queue $X.X yourself the today, carry billion dividend was to to on any Our balance and we order question those a limit participation share. to

Chief call the And Harvey with our me Schwartz. to that, Executive let Officer, over turn

hear to like and X joining later thank I'd from are areas Redett Good be as to you'll you who Dan. excited cover. for Thanks, as today There well by joined Curt. John I'm morning, us. everyone

long-term to will growth. streams First, review a of work several us the for position macro environment; drive that and second,

First, the macro environment.

for As sustained that economic away complex we rates to sentiment. and in interest of other X of our factors, case is corresponding The in contributes corporate led bank stay one days cycle the capital. most of understanding It rates as I've we're inflation a passed of cost the in with the further a liquidity. elevated has periods rate central but of have inflationary and said may decade shift capital combination base the to impact hikes remains in appetite increase this shift recent higher The shift along previously, policy. of history. peak longer in from investor interest structures early on this mixed Among rate

XXX economic the from and gathered views over estate companies, loans vast includes our are to and nearly proprietary real set XXX part, market In global portfolio. And data investments. insights issuers. X,XXX informed data The our by

Let's inflationary more cost, portfolio for our peaked. companies start to has the with that cycle increased We're starting inflation. through the difficult view to reinforcing see pass it's

activity in company approaching environment with broadly, have over of but portfolios they're portfolio generally accelerating operating EBITDA the remain our cautious seen CEOs Our XX% growth. terms how

As pace have the you'd these of forces the across economic industry. slowed expect, investment

pace allocations. seeing see signs you classes. general, across flow and lower decision-making access an deploying of in capital most fundraising You amount in deal in it new on teams are LPs we the asset early our this see of fund slow said are of Having increasing that,

a these X are are areas just leadership you I want sample team. Though on around we Now focused to the firm. as activities of update a key on that

We have each mobilized these. and teams launched streams of for work

you let into methodical what manner. doing. a line in while And we expect give me we're you'd very sight As these a and early, are of approaching deliberate

Insurance First, business. Solutions our

set. vital but Fortitude with profitable, relationship the and opportunity strategic one in Our is only piece

of look companies their free us ROE, part and a insurance to partner we're interest variety liabilities greater with ways. capital to in on improve to seeing shift important up a their As

capital impact. also our their markets Second, team. They have to opportunity large a scale

key private capital for markets a all equity ingredients well-positioned growth, an We and experienced active and have in franchise team. today place the

expect As will portfolio deal activity rates further need tailwind pick our capital up, that create our companies business. and a natural we flow we leverage for this to in

AI an of well long technology focused term. and Third we're us as on scale growth companies firm over as across at also is create to allows our our the important our and driver strategy. efficiencies operational portfolio the This and

Head appointed strategy work drive the and recently Transformation. entire will of the as leadership with We Juarez She CS team Chief operations. and closely Technology Officer to transformation Information new our technology

fourth, said hired around a we Wealth new We've private we as recently long-term Private of opportunity wealth. before, Head Now strategy. see

we only of X covering important market have products as today, the view While X in we billion channel assets an growth. for this

growth, composition is distribution to top margin. bring the as closely the last improving with fifth, the This to here. brand globally the capital working partners I'll is our as the well as of platform in Wealth a mention to our expense FRE and monitoring be overall work differentiator huge around importantly, run means We'll the required as line management well Carlyle product stream wisely firm. investing drive Cal. level and Most expense And innovation to

critical a effort. is strategic This

as we risk market we a I important these a one will and within to of to see will around to be same update state somewhat capitalizing the continue need disciplined that operating while at To when patient attractive continue capital we're opportunities reward. progress. move be, It's said, we sense on you time, challenging backdrop. deploy where with to of still close, each these We to we'll urgency as

shareholder leadership for focused excellence our and team, long-term we delivering intensely driving value. performance investors are As on a

Carlisle's taking are We and teams to drive action I'm to around priority future. areas growth. for mobilize really enthusiastic disciplined

I've it am years. on. I Carlyle for to and past months as transitioned I his like counsel and enjoyed all in getting you'll know to his the him nearly wishing before personally into thankful Carlyle me I in support upcoming a X hand last I'd also join Curt really I Now over to for tremendous the retirement. best take it the thank moment to John, Curt's contributions over XX

And over John, to now, you.

also Thanks, morning, continues Carlyle everyone. of to forward Harvey. the I of transition me thank many guidance XX coming want as look role. more his years to for provide and working I he at into leadership Curt closely Good I with you in for to CFO periods. the the

driven per in Year-to-date, million solid share. we generated earnings $X.XX DE quarter second in by global for highlighted, Harvey in investment tough distributable and delivered diversified of $XXX teams. DE As have focus a share. per a of million $XXX environment, the produced the we quarter platform investment We this results DE or or $X.XX our in

million repurchased areas: in have year. near-term a We reached outlook, $XX X in fee-related of fundraising. of the the accrued the in my second half quarter I'm first the shares earnings carry Today, on going and main to million and $XXX remarks focus

earnings. $XXX period quarter in QX as year, continued X% First, growth FRE was to and people the in compared the last the Year-to-date, was by FRE million teams. XXXX. offset $XXX to our declined down revenue million fee-related Increased investment from same XX% second $XXX Relative quarter, last year. of into up million modest to in

a after increases Second fees million quarters quarter with few increased for declined of each sequentially $XXX having in our management of segments.

launches management fee fund few fee Over the support activations continued and should growth. next new quarters,

$XX from revenue. benefited results quarter million in second fee-related performance Our

in markets material to fees revenue of are and remain quarter, though not were credit equity $XX Looking advisory expecting ahead, and down revenue the both pressured fee-related stable. should in activity we the in from performance capital year generate XXXX, ago, second private muted FRE global the has million significantly a margins. fee-related global given performance which Transaction half

our heard quarter major focus of Compensation platforms is revenue increase A revenue. expense revenue area at an a of driving Harvey, in as XX% $XXX second level higher And as of quarter for the you a generally the year-over-year. this function fee-related accrue XX% we increase transaction majority was of from associated was million performance increasing compensation an the investment from firm.

firm-wide reflects levels relative only the saw normalized this of G&A activities compensation increased million lower to impact, year-over-year. Excluding pandemic. $XXX more we expense set a X% of expense during

This similar back LP up fundraising may which our top diversifying typically quarter tied We also quarter. year FRE outlook, we the costs aggregate is as FRE. fundraising solutions XXXX be external the second expense growing and supported investment to growth to well fourth regards the the in G&A conferences. operating sustainable tick largely With to as with first our as half included of of half captured increased to global in on likely half XXXX generating have line in revenue costs stronger FRE relatively momentum. remain a focused

like discuss our I'd accrued to on, carry. Moving net

and uptick an with quarter infrastructure muted portfolio private had owing appreciation X% estate. in Our to We in resources, global the fund and appreciated real announced carry in equity relative more natural strength transactions. in

Most carry shareholder was share of with a Our the at billion quarter. this equity. substantial net balance $X.X private a accrual per in reduction $XXX Even balance with million due accrued global of accrued last of net robust the decline, this billion a in from to decline driven in value. source realizations declined which carry future net remains $XX by $X is

billion update the in than capital of slowdown, in finish first larger still on face to Through we XXXX, to XXXX year's me and Approximately commitments previous this slowly $XX of make did investors new of challenging continue years. decisions last we capital. with an fundraising. amount fundraising Despite a up Let expect Fund we than total. raise to halfway raised half in more XXXX.

in which XXXX. weighted in fourth continue start Global the of should are year off strategies the and likely momentum several of quarter. vintage should and Investment secondaries latest have towards second co-investment our important good inflows a see to both that the we half half into Solutions, for into We XXXX, second strategies the In

we This none CLOs this Credit, XXXX. fees to Global to on new We've X grow priced capital the a second turn in after start the quarter year. expect slower will in management In quarter. later first off

number fourth In are raise in stronger positioned capital several year Global than positive asset Our opportunities various relatively capital fund in of funds to should expect Private equity, SMAs we quarter to strategies. likely the and a of flows, in to third attract generate credit second be the to strategies buyout real more half quarter. the continue and the with

and shareholder be the working to Carlyle Harvey Wrapping role up, entire team let in drive new to value. reiterate alongside me this excitement my

are improved about continued We and the operational growth performance. excited opportunities for

operator your questions. me to With that, call turn the for over let the

with [Operator Instructions] of the come Goldman line First Blostein from Sachs. will Alexander question

the prepared in Harvey, you a zone maybe starting, some your priorities what and little one key you I that in in Could you structure honing really of the around highlighted just mentioned remarks that in terms guess, means. bit last for FRE on expense we can the of margins. more

fresh pair a with came business obviously buys. You into the

mix for how compensation curious FRE the margins firm? that So longer could impact term ultimately and the

which it you When voice. question, said would hear Alex. impact for the Good mix. your to Thanks

a how talk of stream line that about said, both about in obviously, want really ton piece. critical piece There work But than And narrowed Curt expense X. up kind the on kicked handing that. John. flavor you on the and a to the So a as a process seat, the in the he's top but this work we you can over gave think of to growth those, in the We is more off I I compensation of We were margin and obviously. stream. more was focused let

super disciplined going we're doing the making about line-by-line So through review a basically business we're sure expense. and

compensation, to way Now you a it. relates first as before, we're And as principle obviously component me very it that the say is heard approaching based. that's of critical

people they're for just performance. first But sheet we're taking making mean know, what you that, going that And to we by that things there's the and we're and is we with a that say really best the align being compensation. to sure as real paper I attract to have it retain start about on think aligned is really thoughtful And that reward LPs most opportunity want want we're employees shareholders. perfect stage, as are around making very the And here. that our team, progress to sure white and it our make constituencies, we would And as we critical to we with LPs, of relates importantly, I really, work we're our at this principle, our as good as can and I this it. people a our stream I with the think a

Our next question comes from Ken the with Worthington of line JPMorgan.

of following level, starting FRE question, of fund Carlyle of margins margins can John, margins go talk up how context maybe role? market some decision just you transition back us but Alex's basically, sort year? on background into through time the then you the you to give maybe on and quarter. number us high direction And the do at investment the outlook dipped the the backdrop, and your evolving we of Can this CFO to increased your see fee launches of challenging as for in in half

Thank you in you, meeting to at Ken and some I future. look the forward near point

of my I've services. career XX private Just quickly background, part financial spent question on in in the and first The my Carlyle. entire years at equity on your last

record the While I in just And portfolio Carlyle. large creation track services that of at at add, at focused Ken, team A the on has the investing financial value company Carlyle, services was globally. financial I component great level. job, a would

yes. carrier decision forward team this value. easy ever I'm excited CFO role starting the Harvey with presented working when to further X. drive It in shareholder And be opportunity an I it to really October the super easiest And me, to the look and was I've made. honestly, to was was

very these your on margin. on terms updated the question, better. mentioned, would I revenue of on the as part very And delivering growth. say, just work we're periods. know of we're just expenses Harvey say, coming make focused we you And In importantly, And more keep FRE second as can and I do your in streams, we focused look, we margin, we'll would disciplined progress

comes Our with from next McKenna question Securities. JMP Brian

based might of to seen of take initiatives on know underway. thus a everything the are Carlyle have just time I'm you've but some underlying do what quarters out growth for And trajectory time And longer-term it seat expectations on frame firm been the of you based more your growth could the the far? early Harvey, any assuming you the continue to now think you So some in on like business. you've couple then I at look that over you analyze

Yes, great question.

feeling focus on seen feel I future So not but industry I work these some better growth I not And the I I've I LPs, teams here give turning long-term us months. a days. markets, the to already composition about allow now XX with think also us and we I've internally would want quarter-to-quarter things how some margin to imagined we're informed X of trajectory think the power industry how think It on could that, compensation I opportunity. traveled with up growth, informed streams. of I'm I to flavor part they coming to number quite think the think is the the number good. what of talked a be obviously my may brands I this allows and our say I trajectory of think I allow the Carlyle XXX -- and in on capital business of parts dialogue do how sitting ever of almost the feel work tried fantastic. our on levels, about and when I of prioritize directly, LPs fantastic And streams but to to obviously, quite in us met and think is I've And which the than when is it's by about. you credit today whether have it I of insurance, the to it's focus the of things is various is And and view for

that I in this the it the includes which better world the great is Curt best engagement brings this also, the really on way focus team thing and I've together some terms about of and serves together. streams. and is team together Another is that coming across work the it various the in And the John, know including, investors brought you of team myself obviously, feel

I going so February felt excited better you momentum. to in I got immediate when feel me great about not thing. an the trajectory, third, really feel But the And now. if I here fourth I This quarter be about ask is and long-term

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

Chris, we can't hear.

Barclays. muted. [ph] of be Question the Butch Dan line may your with Chris, from comes

the fundraising private slowing sort that expectations, of issues optimism the Any kind markets side. this transacting getting -- seeing remarks, into of maybe of next of vintage ask your ones expected or buyout I for of the are later green to indicated year sort and prepared is shoots as particularly The in investment fundraising wanted in sort kind 'XX? Japan, to that you're But of denominator kind general. expectations you in know some increased pace taking your is are of come overall about any Asia are private broader Europe, as the the little of activity, I slowing. kind resolved a equity recovering, effect funds and equity of bit. for updated

is year. said, the better So So of a we diversified as of be we the there's there's broadly momentum lot That's across feel insurance on going across a lot in this There's of fundraising, speaking complex. year solutions, last to lot than momentum a credit. platform, right? momentum broadly

comments how we in now. into lot of the year So balance that. market Private for optimistic can't fundraising remarks, other we but it in of now. areas. specifics that momentum But I say certain you in of we heard real the world about those aspects good about equity, estate. prepared right I There's around get because about market some of that the in the headwinds go are in still they're the momentum feel a the our obviously right globally but feel the lot a feel you would when generally

from ISI. Next Schorr of line question Glenn the Evercore comes with

was and now. second slow in kind towards talk that half fourth versus we're of right given third clear that a quarter it's So bunch And comments first it weighted quarter the you that gave very of half.

help you wonder how much weighted quarter then dimensionalize about And versus thinking can if fourth those quarter on third when some of So I items. growth.

insurance talked get but drive is could we going to private is else was the about but the a feels if process what recovering, there of pretty backdrop little wondering You are because of in bit good credit I good. not growth optimistic the CLOs a credit more opposite

a and you on bit direct more So lending. if insurance can maybe talk little

Sure.

have mentioned we an streams work asset hugely valuable we insurance. and there. mobilized I Obviously, So in ownership our around effort Fortitude, it's a the

in talked very, respects good. is pipeline you work in And mobilize way between Glenn, the so where very streams insurance adjacencies because we origination the some that around exactly the about,

For relates and we to than Fortitude further natural pipeline of to can into transactions pipeline this not we the of half third feels or good. our is the the the our tell desire Also, fourth as event. franchise, and it of This of flow year. is back the a momentum with has Again, for the see little quarter expected A the performance work but been is good that see. longer fundraising credit I creator a you about we business. term, a in confident slower feels team it terms and credit the

So those all of and pieces. adjacencies we there's And in that terms we capital distribute of trajectory all how course, of I markets the how feel bring good about together. in with there

the together. of these teams really It's the is about work That these purpose around opportunities. bringing teams mobilizing just

we think margin company don't and [indiscernible], we I I the about feel quarter it know. the you really way FRE would on talked very, I down It's very fourth about to things. as about But pin certainly third that. trajectory feel our say that the and quarter, and we So focus things about. run the I confident can't good not

question Bank. with the Brian line comes of next from Bedell Deutsche Our

could building have right talked year, effort. But margin raw trajectory. that not insurance you've next about we Maybe solutions, just second ingredients It aside the do FRE and about you And think put the there sounds markets back Harvey up really, if on capital the half. next the now. like to

is, an you move that into So scaling as in the that well. that, more growth compensation of comp coming leveraged next assuming FRE revenue element business structure And quite be year, and including and view and be is or do kind and I'm But revenue. that into mentioned any FRE margin expense initiatives? compensation out of we more change expansion of can you would performance-based more from of

Thanks.

little Let me a that bit. unpack

So I your make I just hit want points. to sure

That said, disciplined So us. on that also means for And line means margin, we we're that long said, how how in about top a I've but growth for thinking it feel that process capital is. stream that driving we're been I what exceptionally over expenses I critical focused and momentum being very the that FRE as about I and transitioning occurred that's is, how work terms does of John. good of here deployment. to started the given And as this the team now mean?

table. trajectory compensation for the we our the with to making want with we sure on so And alignment Yes, and as there give teams our composition LPs. on constituencies this we aligning as details sure the we'll would time, them, again, soon them. make constituencies to and right And you the but people reward perfectly share at get good. same and the our to and be respect that’s and early yes, that's for XXX% compensation again, compensation, of have we best our that Too our

tell to should expense process it FRE be margin, laser-focused. management, I and both a we're relates very And you can to methodical. But you it differently. we're that's and no as also hear But going growth

revenues a up And we Now don't don't drop to to there's We're you second. okay? with rocket team. incremental valuable want bit building which provide scale. where had the we're markets. to of the where going need real you want for here talked world science, here markets be want we We're a about set adjacencies Basically, think the JPMorgan’s We but competing not doing build do there little I work opportunity channels and over in for any big into can a differently. without question what to significant the a space it to a capital capital team is inside mobilizing to I minimize just not not

from Michael Cyprus our line Stanley. Morgan question next with of comes And the

years, flow If like business. it of next out set are to couple the the we guys cash seems you across generate look

be you're important how what cash or meaningful be inorganic? versus return curious portion for organic retain generation, inorganic point? shareholders opportunities what might could to versus Just thinking And portion might how about you at that this deploying growth

math oversimplify So I don't it. question. to want a for me, it's

just a we shareholders it's be of question think more that capital, to moment the right attractive really I thinking the time. be in to think before, presented opportunities returning through I strategic may versus return talked about as capital may the now, us opportunities but that's a

the think have, terms quite the the I we and that footings when look firm an firm the what which insurance you critical of have firm. position at the of of in to investment we is

out one. and we go So need don't to acquire

We have is which organically. business continuing to build a credit

We the solutions business. have

So certainly all wouldn't they could accelerate have where strategic I out they'd good are we rule to growth the be here. component pieces partnerships but really think a fit.

them. front say there's But brand make And I we'll out term. has right just to at the I very I sense. for in wouldn't center when the if is says consider scale us But ways the certainly choices those now, know the the always over opportunities But this make are rule we'll it is presented. inorganic, long math Everybody would And that case. and but that's again, to margin powerful. not

of line the Hone comes Our next Capital question from with Markets. BMO Rufus

call product not in internationally oil wealth and look X Maybe or just from wealth in years opportunity what now X channel get set and around I'm curious the private well. your coming back the like as the the might but U.S. to to thoughts

Yes.

everybody feel they of the firm powerful world opinion, So knows of of David where the the this journey. for journey. those Again, this say, is the Rubenstein the recognition, beginning differentiator. and this founders would like and brand is is we're it. what sort a and beginning just -- the The the it's in very and the industry very, at at we iconic actually represent I presence name my of

product development will think improve. continue I to

years. where next only innovation And Carlyle, to the products have couple this. think the think our at early to as the a thoughtful I be But product I in is if have journey. market at there'll the share we the this X so be But of market about in over in now. We -- very we're real and be sure it. focused team a want right we're to going we it's going place on make

Patrick Autonomous Our comes next Research. question from [ph] from

of now? chunky can fee that realizations you the how speak pipeline to now first in call? performance XQ on relative tangible but about or are second full to quarter is you thinking tangible were a building helped can the pipeline tone realizations There And half your speak you the there to

have We wouldn't want to Curt this his without call ever opening mouth.

So it let we're to Curt actually going want question. looks like to speak, you a Patrick, take

call. I just on don't this think that question have the poor guys one

you me great of lots total leadership, to at founders. want Appreciate our really taking -- tenure the and been to bench just thank answer, an have we've I forward. And all look, of Over our time. role. with team. you. the before a It's It's to all shareholders. question. It's And I thank working the analysts in John's been And to just I that want got team And I me big a in let for this say to great you privilege to us. say honor honor. this confidence really really thank you Harvey say thank and it you follow really on Carlyle, great been serve

$X.X of John of roughly roughly as delivered XXXX carry terms said, just we in and $X.X a $X net XXXX, of we it realizations, billion was accrued carry, $XX net realizations share, billion In Look, got billion.

of and going more to look the of I've of half to turn nail year past, $X.X year out. first less pole to and into First carry is said nickel I cash. in look, call -- it's half hard, picks to activity really up which on thing kind this plays that a lot I'd deal to able to I down. really billion $XXX it's would until second think on But the it, that things say going half hard it's all again, be carry. and the about But like of the year, a how very Look, excited again, that as million. gas slide really is we're close and the in in or can

Yes, -- a chest I just view share. It's that as incredible. $XX at war a and

from next America. Siegenthaler our with Craig comes Bank of And question

is markets Day, this provided And million business. XXXX. than greater on I the transaction business. looking the know $XXX grow of capital at to by a Investor question fee target you're XXXX My Carlyle

think this is So we about curious valid as still I'm our target if just updating models.

that. I we give in insight of we're as to than So been I can't how insight can little set team so want I wasn't you here haven't more and you this but maybe work targets. But focused we've an systematically into right drive is speak a working XXXX, with firm the pocket we business, the by ensure in the we here. to stream -- we're right working of that value business connectivity, have terms plan across that to the of mobilize, we on how systematically the want literally every a

be to we're I a going nature have activity. giant It's a as going business be sensitive an And not looking it's And think I a to to business, it to predict. think committer market here. to it's episodic that difficult capital because to

targets back in But very be us being from look and And to small about million looks way about reluctant date. at put a we would them So meaningful. the you it. when hard give the this $XX really marginally come scope is way opportunity the opportunities out can backwards to versus would personally we'll now, of to I growing. moving But at that I but you good later sense we ball the I some there feel approach we

[indiscernible] venture. you, of luck Best And Thank next your Curtis with Harvey. you. with

it it's appreciate been and fun. Thanks, Greg. Really

[Operator with Instructions] Our question from UBS. line of comes Adam the next [ph]

this the a I around comment a deal. significant press potential in and was in don't piece if expect realizations, twofer quarter Curt just vehicle. that you the a the asset gets China. a I specific out press obviously, because wanted other But might a there's during And broaden recently up I of to continuation included be don't that to on part know holding been Following of out of the but around monetization more

wanted And ask given assets deal to of that you in potential broaden mature that and continuation the and amount maybe different the that the backdrop in use out the the portfolios on for firm? a at I about Carlyle have benefits China. also So vehicles of of just comment potential

for question. the Thanks

few a Let me comments make here.

we record first, We've on got team our the countries China, job track and operating just a India across great Asia. Asia. business So a phenomenal arena. across operations focus of in really that the many and there does

together. it's any specific look because team that a of feel And kind And things of the talk Continuation examining some aren't potential conflicts I'm and premature that on we all you're But We to say at, that pull tools time and they've through do. comment as would and what to take things hesitant good with really time the there's so it they on spend routinely what around this. are continue also deal aware about accomplished not and funds that. we continuation to something of I so lot anything done. thinking it's those all specifically really, about do. to complexities funds,

of in way near-term half right the the it still second modeling. your made I comments are for before to think terms So about

[Operator Stanley. with with Instructions] Michael Cyprys follow-up Morgan I a have

elaborate the completed? see markets and you could are could How adjusting? for a key deal peak maybe hurdles seems funds pipeline a here, at evolving? equity you're was deals And deployment reduction activity. improvement do bit given structures what the bit how point Maybe hoping are getting about and in in I I backdrop on what potential seeing you and terms that and for the new getting talk the volatility, announced you just Fed like this little guess

from I my the team we've the talked think deal that market going a across capital which marketplace, would And I I I flows the we is feels still perspective in But about that. forward. But shift, and on activity obviously, And think digested. still and optimistic we're seeing CEO I'd the say being confidence would say improved the fragile. about. you a sentiment. more perspective that's cost had improvement say give be improving. in I of been major can I'll there's marked

but perspective opportunities. interesting course, Of give seeing level through. that some But would you a worked we're at will high be this that

selective in capital. deploying are being Our teams very

John, I if add don't you that? to to know anything want

down comes we're high of I executives. it see the I think we're the confidence think confidence. you're among positive still that's I do think Look, rate And environment increase to think Yes. level And starting absorbing thing. a to I in.

I think that capital off caught Thankfully, a people guard. structures. of lot we've most our hedged of

across to platform. think activity, more to our the see I look, looking So going start pipelines you're at

think it's logs better looking but little to time. pipeline a going are I take Our

a Any you to may may first what longer come versus expect activity back? not particular and where areas return little bit take what might

I would to think in other. at one going say, pretty the ahead see you're activity equity behind private necessarily is I I in same back don't come or the time. credit much think

no showing Harris back further time. like questions currently to to at over for remarks. hand Mr. this the I'd conference Daniel I'm closing

thank your this Carlyle. all interest time and, Thank for you, course, and in you your morning operator of

call. If Relations to free Investor you after a up feel questions, Have the day. have any follow with great

conference today's your for concludes Thank call. This you participation.

disconnect. Everyone, wonderful day. have a now may You