Carlyle Charges Forward: Momentum Builds with Q2 Beat and Rising AUM

This week, Carlyle Group delivered a standout performance in its Q2 2025 results, showing that leadership changes and strategic focus can turn momentum into measurable success. The firm exceeded expectations, both in profitability and investor confidence, as it solidified its position in the private markets.

Q2 2025 Financial Highlights

• Distributable earnings surged 25.6% year over year to $431 million (91 cents per share), beating the consensus of 89 cents.

• Fee-related earnings (FRE) climbed 18.4% to $323.3 million, powered by 16% growth in fund management fees and an impressive 66% jump in transaction and advisory fees.

• Assets under management (AUM) increased by 7%, reaching $465 billion, notably driven by strength in the AlpInvest secondary funds unit.

• Capital activity was strong: Carlyle raised $13.4 billion, deployed $14.6 billion, and had $89 billion available for investment at the quarter’s end.

Strategic Tailwinds and Executive Momentum

Under CEO Harvey Schwartz, Carlyle has worked to reset its trajectory, and the results reflect that work. The firm elevated three veteran executives to co-president roles, strengthening investor confidence. Carlyle is leaning heavily into private markets, global growth, and high-demand segments.

Why It Matters for Investors

Carlyle’s upside in both earnings and AUM suggests a rebounding appetite for private market exposure under its new leadership. With robust capital inflows, strong portfolio deployment, and ample dry powder, the firm is well positioned to capture value even amid macroeconomic uncertainty.

Carlyle Stock Snapshot

As of August 21, 2025, Carlyle (CG) is trading at $62.30, showing notable year-to-date gains.

To conclude, Carlyle’s Q2 results show a firm on the move, embracing opportunity and driving investor value through execution. For long-term investors, this momentum is an attractive signal. Now is an excellent moment to reassess how private market managers like Carlyle fit into your strategy.

If you would like to explore this further, and see how it aligns with your goals or portfolio positioning, please reach out. I would be happy to walk you through the details and implications.

Disclaimer

This blog post is for informational purposes only and does not constitute investment advice, financial guidance, or a recommendation to buy or sell any securities. Past performance does not guarantee future results. Investing involves risks, including the potential loss of principal. Always conduct your own research or consult a licensed financial advisor before making investment decisions.