The Carlyle Group Inc. (CG) 7 Nov 232023 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Carlyle Group Third 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 your speaker today, Daniel Harris, Head of Investor Relations.

Thank you, Josh. to Quarter welcome Earnings and morning, Carlyle's XXXX Third Call. Good morning on Chief Chief Redett. the me is Financial call John and With Schwartz; this our Harvey Executive Officer, Officer,

detailed a our on Relations our replay website. being release issued will also is Investor we call and morning, which is this and Earlier website. a webcast, earnings This be presentation, available on press a available

certain to refer non-GAAP will during call. financial We today's measures

in a not should isolation considered with substitute principles. for accounting be prepared as measures These from measures in accordance accepted generally or

We have guarantee GAAP forward-looking to reasonably provided undue on a these not measures not Any performance, future reconciliation the in to of should statements available. do placed reliance release our today and made earnings be extent them.

current and inherent on results cause the and statements to report our in identified could materially are uncertainties, indicated. those Factors Form from management risks section Risk of actual differ on annual based involve expectations that including XX-K These those

forward-looking time. to obligation no at statements update assumes Carlyle any any

turning So our to results.

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

declared net per quarterly Our balance billion we $X.X of dividend end carry of and quarter, of was the $X.XX common the share. as accrued a

follow-ups. participation additional on one please limit question In by yourself all order any the to to queue the and ensure those call for today, return to

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

for and on where morning, focused areas Good Dan. we Today, and thanks we growth. everyone, us. momentum where you accelerating I'll strong Thanks, the joining update have on are

with Middle higher has Multiple and environment already on touch unfolding wars, along levels. and in that, uncertainty has the Before the East. let me events getting become economic volatility confidence uncertain increasingly tragic An reduced complex the increased rates with macro. into

shown That third improvement greatest market activity has the quarter is deal backdrop, was at sentiment the signs year. activity past pace of has as in activity negative know, sentiment elixir, year. market despite all a we the the highest said, slowed transaction and over As challenging buyout over

activity likely is reduced opinion a own will and levels bit that confidence my for However, lower longer. persist

As central cost rates will we and and reality repricing intervention, After is said stay the bank rates XX reluctantly view for higher capital longer. have on outcome. this of market may this our years has declining shifted begun accepted some overall past, in Market for so of remain time. and assets based higher participants that the

in uncertain economic will lack Ultimately, market However, market all over as environments this navigating and digestion through as time. regime process we've case necessarily activity. take Complex mean don't is decades dampen seen market could cycles. rates often of opportunity a the shifts, higher of

our in Gap] [Audio over stay Our deploy we flexibility across market teams environment. to excess of with platform, generating dry this billion powder to focused on the on have and capital investment build continue partnerships. alpha $XX And strategic

Now for areas to shift [Audio we focus of as the let growth. me position Gap]

First, our very momentum. strategy insurance underlying strong has

is month. transaction with has Lincoln all this expected and Fortitude's later to closing conditions announced met close Financial

Fortitude's general in We assets Carlyle additional that into increase billion capital account from rotates up will $XX well new approximately AUM as in pick the as funds.

We the this insurance of potential In needs our insurance investment the investors to that strategies and addition target credit private our transactions across developing and new team is distribution transaction, business. and substantial new vertical. see growth

channel, momentum. always that building has received been and private on in wealth. private Next, The wealth we're well the Carlyle brand

feel $X billion. channel have raised I more billion We good this we strength raised And channel for $XX time. given year, the this about brand. than this of over have our over

and significantly further wealth, distribution. accelerate in lot in expect be and coming footprint development sales product Over growth see the quarters our private we years. of we to years, to and a coming There's expect and larger upside in

of on several estate across to strategies set momentum few are seeing the are relationships secondaries. and these grow performance, U.S. examples and buyout, strategies our real of today. we deployment in attractive track strong of an include Each opportunities. investment deep client on, A meaningfully Japan market Moving to our investment due

quarter, bringing $X.X raised billion new During of the higher in is fourth with we in pleased not Overall, year-to-date the we've a billion. to in our our current fundraising capital, quarter. throughout expectation raised capital new for pace thus far fundraising been step but $XX XXXX,

deals have corporate pursue $XX around dry now allow globe. the in under our that private size U.S. assets any the With CP to strategy, of final of billion equity buyout management, funds us close latest powder $XXX including of we billion our across

coming to and Europe We which to buyout amount strategies, further Asia, continue quarters. raise the this in capital Japan for should add [indiscernible]

ago, Moving This accelerating a growth we time. are strategies an nearly years larger number Global be and built X increasing the our to level focused to CLO manage expect in to triple private credit. today, an has largest of just LPs, institutional area diverse of billion serve of is and business. assets significantly wealth over on over world's including set the $XXX Credit to

the balance capital to trend a we strategies, on to migrate attract expect to sheets years. focused significant the that opportunity several out private is ahead team next play assets Our from over bank

let Finally, on focus me expense management.

give areas expenses. area identified a credit lower to have I this driving several this in of rate the progress that faster made for lot led already originally to I than a have team run We've process. We expected. of

to result, talent our an The impact As the changes helping organizational across I expect platform. across strength, structure, we making grow emphasizing third even are in our improving best-in-class areas FRE. and a maintain quarter firm XXXX. our our better-than-expected larger are enhancing we ability to delivered of

for taking now focused and me to our to on investors that, With meaningful John. let Closing, team drive shareholders. is the over leadership long-term actions call our turn value

Thanks, Harvey. Good morning, everyone.

quarter our results generated or delivered billion assets over $XXX late transaction management under we in of which focus highlighted, of per million occur quarter, billion by of DE in the our share. X% with should management, on We $X.XX year-over-year. we have $XXX Year-to-date, November. closing We DE Lincoln, $X.XX Harvey As up platform. upon increase global to $X is distributable or in with expense poised DE and per supported better-than-expected finished diversified this produced AUM the third earnings share. the in Fortitude

expect our this in deployed strategy year-to-date solution add infrastructure natural in global platform, to of We in capital XXXX. FRE. our X/X million deployed billion resources. incremental $XX.X over billion we billion quarter $X transaction headwinds, and nearly capital Despite Across of we $X.X real estate, $XX this with investment and

our generally $X.X level few Carlyle than between fundraising. deliver as strategies. has capital returned cash each have And We is raised quarter Year-to-date, said, proceeds our segments. this the expect We a we $X.X our of and LPs, of credit power been that quarter of over of LPs, for one firms in the solutions higher we realized deployed. across a we billion fourth able in quarter, billion to energy, this our largely billion in Harvey to stronger split outcome. $XX

our finance new fund, we In for direct Solutions, we which $X credit, in raised raise $X.X to asset-based their billion co-investment Solutions, strategy. capital continue private secondaries CTAC. for lending billion Credit, fundraising finalize capital and raised for XXXX. nearly have And Carlyle Strategic wealth our largely and our will year-to-date, we attracted opportunistic and Global strategies, In

raised we buyout committed [indiscernible], billion our over capital. eighth along equity, Global of our In Private U.S. $XX fund and closed we've with Growth

the and capital Asia across raised addition, latest renewables. vintage In NGP buyout strategy, we

Management fee-related million the fees to quarter, prior Shifting in $XXX modestly year. up earnings. compared third totaled the to

million of persist and products, previously higher signaled, to with That QX. asset and last and year, We fee-earning markets quarter third declined transaction we we grow capital. than performance said, additional have strong activity $XX higher pending sharply as slow transaction year. Capital declined of our as fees trend were it of billion generation. Global while largely we that QX private but visibility remained $XX into to credit fee likely will in the declined of sequentially, good move flows revenue have activate advisory FRPR in revenue performance good that AUM global million equity $XX sequentially. we evergreen near-term is last expect deploy a continue from Fee-related to fees as

compensation $XXX firm we our efforts actioned efficiently. performance more the million declined as have annual due well compensation lower $XX $XX and the revenue second more compared quarter date, million approximately Cash to run savings. rate operate than in as to benefits To of to million fee-related expense

innings. Our in early the work here remains

lower were also costs. fundraising expense G&A we benefited as discipline lower expenses and from

year-end controlling We to focused expect G&A QX growth expense to modestly seasonality increase in remain and we XXXX. in annual expense due that on

on third of driving million of to XXXX the earnings margin second in over to We relatively the now and $XXX were quarter in higher quarter higher third XX%, level remain deliver to relative flat time. FRE we focused of the half a the fee-related expect was last this half. FRE margin first Overall, quarter.

small $X.X to decline billion Our QX from balance carry net a accrued totaled due realizations. with

quarter natural by rates strength relative carry fund be global in portfolio And despite credit. X% pressured Our portfolio in the with underlying resources to strong infrastructure, real performance. higher continued our estate asset and appreciated

are global Wrapping to and see across the opportunities across challenging we platform and both backdrop, for executing firm the up, value despite our good create investors shareholders.

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

Instructions] [Operator

with question Patrick Autonomous first from Davitt Research. comes Our

sizing on more Could update already And idea large remaining of in gross on market you Maybe XQ funds your better XX the closed how has the flows? far and to any XQ so much then months? better next between potential over potential AUM frame dynamics thoughts X perhaps a of timing in us XQ? the broadly,

as question. thanks -- said, Patrick, and So I the for

we're the As remarks, in I my fundraising. said year-to-date particularly with prepared pleased

we time company about to over things And a that and and now -- externally. the the time a XXX get of wanted one I CEO think feel really met internally, people our momentum can our a a spend building. investors was my on then bit. a globally arrival, focus I about months. new I having my in talked with, X lot new I've this think, With really of with as really me lot I know of of to

up momentum now, we'll delays. XXXX I said, see fourth the as Japan, and about think expect environments shakes we pretty And can't positive, the then And in real these we're things. good. optimistic. quarter in secondaries, I into quite promise funds but a we how have But estate, feels be feels it Market fundraising. you and step -- we out, marketplace the would so feeling come quite quarter I think fourth when meaningful could as

comes with next Goldman Alex Our question Sachs. Blostein from

bit expenses [indiscernible] there. savings, so you far quarter, I on more was from nice more [indiscernible] hoping rate there go run this is alluded to so to progress with a little and

for trajectory us shake then And year? out more rate year? in on and How do thoughts So of kind next your that quarter? maybe expect what of into importantly, frame you FRE really early growth the third end expense the help what's to run the are

Alex, it's John.

on As But we our slight on we It's uptick earnings said we third a the in drive area margin. really key want base. call, the we FRE firm. margin higher. In for to a focused expense our really quarter, second quarter been we've focus look, -- the saw

made we've think some I progress.

sacred we're as And getting the very made a earlier, weeks, rate. the I'd faster overall, early very, overall, expense, you. process. I than frankly tell is pretty continue pace say, is And number we've on the grow it As gotten But would seat describe run the actioned already thought very we There single we and I the CFO focus of pleased And we've I in million we've quarter. we in every a is table, been progress expect for which to terms just Look, I would. expenses on are would this days. what much we said expense of with this X $XX with as but third no quite thing pleased in such expenses. I'm -- I've as to at. [indiscernible]

with America. Siegenthaler Our question Craig from next comes Bank of

very, the on the turn of trending you this I where there a in came defaults you scenarios loss on But you subordination very did see could inherent just CLO CBAM this. CLO the picking the thought off be vehicles? where year? that have management perspective base. up noted, deal a also, given few is And unique CLO there given the perspective question largest are could CLO, low you're world first and business. my we but with I over are your a years as wanted on in what tranches? And manager are the you'd And the remember next triggers the equity where So them ago, you just up in terms issue also, translation loss the fees now, thinking off

our of So just the broader let nature on business. CLO comment me

So excellent the job. team has done actually an

team here We the business. in history that quite fact largest the have of world. the mantle an proud XX-year of taken over the managing that has in We're

been expect very think a average to Our we putting deteriorate environment capital here. by expectation been credit credit putting that to work, of is implied a to it's benign from to on that, our Having said has we've work. in comments time from be the fantastic and would capital I think standpoint

over they're points low default in and running the you past to of even If at years, average today, rates, history. look relative couple

markets where And world so is banking, as long 'XX, into that our private be stay again later expectation see up, would rates whether which this industry. are, as expectation. 'XX it's refinancing across is our credit you're you to come [indiscernible] full stay going in particularly -- in they and cetera, pick markets, 'XX, as that et and high the

really So detail right how job strategically doing it. the a very you the about this. of business. a is we're little the about in We're managing process now good give investing very, team in thinking To

any a have raised, that's will why that, or details. support We follow through December, help business of we'll we will those just be fund, don't of like specific being of then anything with process fund should terms close equity and take on really that in in November, level growth up triggers captive which have the a which end the you offline, of Dan

Craig, [indiscernible] you to happy give I'm call. a I'll

with question Worthington comes Ken next Our from JPMorgan.

prior and to have about quite vintages be performance XX we to start good. and strong As seems NGP a of think the fundraising energy, seems had

think good look realizations XX could we pipeline you fund as XX for next natural had smaller out Carlyle? this record-sized look resource And for energy I a fund, a quarter. past in few NGP quarters? then energy over does be realizations the the How

think have done job. the excellent teams I an

complex and think, opportunity we I energy, think of I excellent This in sort a our done set. sort have and in the when capability across entire set. terms of Our job monetization you infrastructure, team, look renewables, has area, Europe-based an particular, of our team unique really of

individual pipeline tell speaking, I because I particular team and excellent to monetizations, So asset for quite specifically specifics about growth. to market obviously think But that's pretty and but performance, good. an confident they the subject with their can Not me difficult That's you, job. opportunity the environment. continue this broadly going monetization too get we do to feels to point to for into is an feel

more the the really think X, breadth this climate. discuss in set could I of importantly, team. terms the I you energy we broadly feel And transition we And well years, when the XX, next think opportunity about and of over and positioned. really, XX trends think XX,

some folks have talented I think we the very ground. on

Glenn comes Next Evercore Schorr from ISI. question with

investments. to And being optimistic I comments lot on chew insurance think seeking all So dangled your a I terms appreciate some and dry products both -- some private in about developed and wealth. you powder gave in of us you

is when and working been wait think businesses the bringing plans individual they're it's on? more of outsiders And the years? glimpse -- do question of strategic. a my get but have investors. question targets how it goals you that appreciate [indiscernible] couple just about is, midstream that next I for and So long that a all that the together we to Do

That's question. fine. the appreciate responsibility, It's my I

the our provide the think I expenses that, about a it. LPs, going the the process we sort can our I'll the we go how textbook ranges all we it. that based. how think mean, how have very let's really team or want we not value operating by that I of methodical what most to sound platform. So call, manage principles how And investors, where from approach create just can to reviews, business across drive to there's sure adjacencies we boring as with making through growth, can interactions we and how thinks about back And is, and we're entire flexibility

all process. So are in things those

areas to we've good feel terms about progress made momentum. and In date, really I of specific growth the of

in CFO, firm. you leadership a Harvey, -- that were I where here, shape the team firm in of the made transitioned said, in be the would have the firm the and begun I this put and of Distribution, in a to we which we entire catching in a with you have back had would team don't allows I you and new in Technology, the anybody way, Head nobody the new really of not -- do February brought and you of hey, new mobilize to I Head I architecture progress. the think think don't think patting If but really November. brought don't a back in Head up Wealth much would know

I good that. So about really feel

In terms you of update, yourself update an for outsiders. outsider what call

that's to before, sort really As really process. of that's an a together and the me, to you output I've run quite is -- said to But very have well. we coming foundation surgically methodical this

ready as we'll as that's team, your around truly output. do. I'll come in I urgency myself, thing business, is to have But promise John, [indiscernible] say we back whole you the last to folks than an so way to you you, the we're I appreciate more this. urgency And soon leadership me, the can And

a we're will. a that, for as to but great I position answer all do soon our as it's that's in So we you, not know process.

Michael from comes with Morgan question next Stanley. Cyprys Our

private on ask to wanted I credit.

rules anticipate how areas opportunities which And see opportunity most? you which areas credit? -- the which need do from new may are to more opportunities areas to back may impact could for particular, curious are do of in you take banks the the versus talk Carlyle to pulling the you And capture there any and private fill in be And you the need bit on some you of set to you which order bank most a in capital the Just less think proposed maybe attractive set areas steps for product attractive?

Sure.

So Chief to I was Financial think as you I from the all XXXX XXXX. Officer at know, Goldman

through banking first really wave that system. so regulatory came of the And significant was change that the

Valley And across of so I similar particularly the Bank, would expect et saw system, that to upclose. on Republic process banking be Silicon the back entire process I cetera. this Bank,

activity, of is my personal I potential a X, liability but here, say their X, you expectation. X And distribution be there'll as flurry and but there's And sort systemic job not feel see X, a identify our is really in it this community expectation, the several in a simple activity. really best which We're outcomes where think we of you'll flurry of years. deploy maybe of And regulatory I process side, I the cases. I markets, involved personal a the expectation transactions. they so doing seen dialogues private as very [indiscernible] think we've really and out to I'll know, think risk is ability of on give long-term as already plays management, number capital. that and have one-off capital my to wide But really My a that asset you in

to term we, So economy. I transactions think there's over maybe longer a year. market to And very you the quick -- other valuable next things. see see a and phase a borrowers sort Carlyle and provide flurry settling participants, of in like then we provide capital can where you as X we It's the where

it think those could leveraged in extend in multiyear. weighted mean, Where assets that sponsor an it risk-weighted I loans plays to lending, gamut. that's old will asset-backed sort -- most seen and be the And full think we've that's heavily the already a market. of I to That's continue process. out? in I

this through years, there. have see is as debt consumer we're to estate to exists system, in an going going could a You multiple but work as real take and to Certainly, economy that things loans. out

the it's over up think set going longer-term again, ends I But based. broad be very So to playing multiple actually I think, out years. opportunity

Hawken Brennan UBS. with from comes question next Our

on I to expenses encouraging there. the messaging and definitely appreciate focus hear So your

size in the understand balance is discipline in maybe So believe strike I equity moving so private what a base we you the some in quarter. items right between those curious efficiency? Could were how to can there about onetime and you us think help forward? And

focused to impacts expense Yes, Brennan, growth. it's We We're growth. see growth. where the expenses, do we're going near We're for not some on be cutting but focused very John. more on savings. Look, more anywhere we're focused point on it opportunity very to

focus of $XX quarter, describe number in that as a million G&A, fourth and occur million-ish the terms more And rest in one-off managing In in G&A kind fourth around again the really the $XX The trend of quarter won't very I [indiscernible] expect the of fourth the million-ish focused result more beat as $X $XX to was I said we on likely items our my than the was third XXXX. higher would remarks, quarter. million roughly our the of expenses. work in we're G&A the do G&A but quarter of

I think -- John said it perfectly.

think operational X I excellence. about level. is said sacred. earlier, things, John as One And about there's is this nothing high

so going exceptionally we're be And disciplined. to

it the on, has give rate of is short But we'll the areas parts them I period And I going team think the with operating lot credit. lot invest -- sure a a to think, again, credit, in gives growth. up building keep are creates other flexibility. I'm pleased run time we're in have a of operational of a flexibility to us lot it where areas resources that make is those wealth, done with to savings, really insurance, of thing which we growth come to participate. I like just of

question with next Deutsche Our Brian Bedell comes Bank. from

if to in more I mentioned we -- the could thanks structurally on last thanks that there. I building rate -- you keep for think G&A down? the you think and million whether can And a this guess, disclosure for change or fourth in is know then that then commentary line on compensation for run whether $XX at $XX stage? XXXX, answer growth. in between compensation or third invest or either any Any worked contemplated quarter that about, just is into definitely did partially move you that side, sense of you're XXXX expense this starting savings for structure the that in you think the And is million The just And the the that innings you as any nonrecurring quarter? want just on is talk I on, the you the just around flat early and being to is regard.

Brian, been it's mean, would early it and I review why Yes. I run more in I I've weeks, of referred John. kind this just process. to a number. look, of seat the of X That's think the as earlier, this we rate this as process. really as started I expense of innings kind said

capital of look, competition, human terms I In we're a mean, business.

expense And -- of our Our It's G&A. kind of compensation-driven I And just roughly what say the competitors on. something We're number largest aware the obviously focused overall largely on say, in have it's expense certainly is think very review part would would it's that we're very again, front. I compensation done the XX% $XX comp-driven and million is of, going forward. overall, I of look, compensation.

with next JMP comes from Brian Our question Securities. Mckenna

Solutions this from a are the And how other there think incremental And opportunities some nice some drive about of here Investment longer into could fundraising away growth middle business in should But that we is should core within cycle. we strategies XXXX. see the expansion So strong over strategic time? growth any term?

yes. is that short the answer So to

where across a look, right? great is Primary kind is, team. puck it's fantastic industry the the business. a It's little a slower. It's -- it's So of

Secondary activity lot is a higher.

that and for fit while. is be are will business nicely different number team a Our building. a expectation There the that here adjacencies is sustained that growing of

we see the expect an So fantastic would growth several a area over years, next and of to team. as I this have

question from with Steven comes next Chubak Research. Our Wolfe

a I wanted And and about have ask at of for million $XX savings you of efficiency some ask further. expenses lot it's on given in the being And should of in horse, given gross contemplate Harvey, a outlook? still a risk to versus off priorities point, dig those bit whether the a net realization FRE want FRE do Whether that growth savings jumping the this dead rate on versus margin of So incremental cost of any trajectory investment? to run maybe margins how think you well, figure 'XX quarter's we as benefits? the outlined? just the

Yes.

mean, So of bit John this. [indiscernible] I

would very, meaningful, really that's on there's working One look think want we're happening. I expenses. that more. I to But about not there's I a going would little specifics you not levers a you, at XXXX. on, but couple we're dig we're we'll of you when bit don't real which sort into completed tell transaction give rate that the run X and team this say to very I disappoint has big, Insurance. the savings. while the When is proud, you And high-level I'm of is things just in cutting that ready,

that about billion. transaction. In transaction incremental million will of drive $XX in of at that fees, As $XX about, that the over top capital that undrawn John years, line million the will X drive FRE next you adjust that about $XX look talked the

really have know that work we've there's do. as lot So I I talked funnel momentum. then, And raising of happening a I would There's course, X of work about don't And of months to a feel I said, FRE to about. terms do. there's I good you lot in. the growth. thought in But the

with Fannon question Our comes Jefferies. from next Dan

area you private be from organic from that And a mentioned how $X you see larger billion terms an talk channel? you the growth in much in product evolving market think today? that then and about wealth that what's as is Harvey, goal in of what close. you perspective year-to-date in Can can you reasonable a

Carlyle. for a area growth of So this market a the long-term long in time. really I'm enthusiastic about as had We've products for

heavily. the spending to product X, space. of don't feel month month big fair a And a optimistic me we've bit I'm mentioned, X. billion pretty investing substantially, this on has do became team for I and I I development, personally initiative The very team. As [indiscernible] time grown in, We're of know, really in And $XX funds. there's we but here. work growth evergreen more wealth quite raised across

I to to be think migrate have an capital as industry, continues thoughtful sector. into really as the we

you if assets world, small think will wealth which I we around it's look to very grow, continue a all expect at the the alternatives. in percentage

brand So for things growth these that this play out Carlyle, happens, and the the history going of think founders, David over But to is out of I over going the additive, but the presence I as is really, powerful recognition, momentum to think of really provide years. a decade. brand firm, itself, Rubenstein, the play all are historic this this in Carlyle,

have most I performance, and to on. really investor have importantly, wealth the we're focused high that we to that's what gets think products right just ensure the

comes question Barclays. next with Ben Our Budish from

I versus up of of developing new opportunity. growth the of talked of asset-backed of discussion about investment growth about sort number you sort follow areas, for terms the and wanted to cost made talked mentioned credit you a private and savings. on of distribution kind Harvey, the And hiring. strategies. in earlier, you kind Insurance, investing progress the of you

that. back of kind circling to all we can of So

where might after future In have terms you or hiring, of do the need you have? need the investment do you increased of sort want on of you you you you opportunity do capabilities what the those can growth, future like sets Is of kind distribution Or side? to hiring? go like feel side, with feel kind it do you to to what the

is here new so Broadly gas. I've cost resources terms key reinvestment. want We just effectively to that people. since the World-class with redeploy impressed all, And tap is of team operational as management leaders. how We're of know drive We're about been to create first speaking, attract said, the the organizations, how they people, best the and to flexibility. I well, -- hit not structure retain here to expense make science the think I down. not the brakes, got in have we trying best best over business we I So the how the to the creating think and sure here amazing. people,

that is flexibility. team partners Fortitude. this our through vastly about out insurance in So really all is operational built creating The

the think we well there. I built credit time investment engine to think made continue is investing in meaningful but over broadly will as I out. scales And scale,

much will But Some of as I don't margin. at big holes gaping be the at stage. or about this this investments see more

things going dynamic. to world is build. certainly, will be So And the

it's running most business dynamic. on possible equally And so in growth. way. we'll we're to focused we're certainly the very where But focused But this pivot disciplined on

Next comes from Brian Bank. with Deutsche Bedell question

into just lot Harvey, and you you didn't the area you and the update if for on there's have give you on is a right, product talent a move currently? of on where Maybe you could that an Carlyle that Or the we environment? have markets a course, that longer-term fairly of focused normal opportunity as little think revenue of is set area significantly know you of business. stream can build we more bit think build? have a where us an I year-over-year market XXXX, you an provided, Maybe that that's the a basis capital

such that's base you, then here the capital really don't that in we're think build. in longer-term markets. we I a deliver strategy, that my more the coming the And don't a world it's be environment for If normalized a incremental No, want we're be but pretty for not don't doing market growth should job. biggest feeling We to our easy. in from low

think into I quarter in feels pretty environment. muted mentioned pretty was good, more So normalized quarter, but fourth it pipeline XXXX John coming a

positioned much 'XX, better aligned way, that incentives be a that we the in again, have the the should and of think degree and businesses conditions. now team in to market of focus coming opportunity resources into I with terms think subject I set

Version we just Now in all come a before, through as lot we But right back the leverage of to terms value get stay we'll out. of I build raw need drive said adjacencies to would can describe all a the we we have you have how Version X.X, material. We the we this, When to X.X. it focused that this. I've and then internally, have incentives, as

Can back That's one in more I the great color. just ask or get queue?

All that. will. ask about that, to that [indiscernible] the kind got about am. You right Dan to I you but That's I of guy talk Harris

one. quick a be will It

the January the still camp a of 'XX around Are exceed sort little December, time you do bump fundraising Or might the on where the squishy into side, XXXX XQ. on could in we timing that of optimistic for be think bit? Just frame obviously, XXXX? to they in fundraising

No.

quarter. the I'll stuff, term. exceed Our we're place expectations long other for insights, and I I is And to but will focus right? conditions running the But running XXXX understand your not much as thing say think. we're subject market for trying the give So to some we're you November, on the December, it

good, good. No, that's no, that's

Autonomous comes Research. last Patrick And from with Davitt our question

Harvey, still you the environment. uncertain mentioned

could better XQ XQ? pipeline versus looks how the you maybe So realization frame

said, a of uncertainty is that's Yes. is some that in powder, like the I investments as we're confidence But look, dry elevated. made we've I lot been question fact at today. dry would a better And I powder. the lot answer is of today. Carlyle have Harvey the sense Patrick, difficult where say have of markets mean, in some we have markets. challenging to obviously we a like elevated low Uncertainty in

we is very that's So to us projecting difficult looking do. I think feel good that. for realizations forward, But about something

now turn Daniel And closing over any I'd remarks. like call to back for Harris to the

Thanks, this time in We morning your appreciate your interest Yes. and Carlyle. everybody.

you Relations. again any to to Investor next look out talking reach or questions forward you If follow-ups, quarter. please to have further We

Thank participating. today's concludes conference for This you. Thank call. you

You may disconnect. now