Carlyle Group (NASDAQ:CG) reported that its total revenue dropped from $973 million in the first quarter of 2025 to $254 million in the first quarter of 2026, driven by a wider loss in investment income.
The firm also reported a net income loss of $132 million, or 37 cents a share, in Q1, compared to $130 million profit or 35 cents a share last year.
Despite the loss, management described Q1 as a "strong quarter," highlighting record U.S. buyout realizations, high inflows, and fee-related earnings of $300 million.
"Momentum across the platform continues to accelerate and performance remains strong, reinforcing our confidence in our strategic plan. These results came against a complex global backdrop," said CEO Harvey Schwartz.
"Geopolitical uncertainty and splintering are front of mind for investors and are influencing capital allocation and investment decisions. Of course, this is not new. Over the past five years, we’ve navigated COVID, the ongoing Ukraine-Russia war, and now the war in the Middle East. Everywhere I go in the world, the message is the same. The demand for private capital continues to grow. In today’s environment, diversification is a distinct advantage," Schwartz said during the conference call with analysts.
Carlyle's total assets under management (AUM) hit $475 billion, as of March 31, up 5% year-over-year. AUM was flat prior to the quarter as a 5% increase in Carlyle's AlpInvest was offset by a 3% decrease in Global Private Equity AUM and a 1% decrease in Global Credit AUM, the firm explained.
Fee Related Earnings (FRE) of $300 million for Q1 2026 decreased by 3% in Q1, compared to $311 million in Q1 ‘25.
During the quarter the firm saw $13 billion in inflows, this was driven by fundraising across Carlyle AlphInvest and Global Credit segments.
Carlyle AlphInvest
Carlyle AlpInvest raised $7 billion in the quarter. The CEO attributed the momentum to "strong demand for our broad set of secondaries, co-investment, and portfolio finance strategies."
Fee related earnings (FRE) hit $68 million in Q1, higher year-over-year, despite having $13 million less in catch-up fees for the quarter, CFO Justin Plouffe explained.
Total AUM for AlpInvest reached a record $107 billion in, up 20% year-over-year.
"Carlyle AlpInvest delivered another quarter of exceptional growth, fundraising for both institutional and wealth clients had a strong start to the year, and we had a record quarter
for the U.S," Schwartz wrote.
Q1 saw record quarterly inflows of $6.8 billion, driven by fundraising across the segment particularly in its secondaries and portfolio finance, CAPS, and CAPM funds.
Net accrued performance revenues reached $643 million, a 13% increase from $569 million in Q1 ‘25.
Carlyle Global Credit
In global credit, total AUM was $209 billion, down 1% from the prior quarter. The segment saw inflows of $3.9 billion, driven by asset-backed finance, insurance solutions, and Europe liquid
credit strategies, the firm said.
"Demand remains strong across our diversified platform," Schwartz said, highlighting a first close on a new closed-end asset-backed finance strategy. That strategy now exceeds $12 billion in assets, representing growth of more than 30% year over year. He added that Carlyle "continues to benefit from a diversified platform positioned to deliver durable results through shifting geopolitical and market conditions."
In structured credit, the firm’s default rate of about 50 basis points remains at half the industry average.
"We continue to actively manage the entire portfolio; we feel well-positioned to take advantage if credit markets experience increased volatility over the rest of 2026," Plouffe said.
Overall, Plouffe stated that the firm will enter the quarter with a record $96 billion in dry powder. The CEO stated that he remains confident the firm will "reach or exceed" the targets it previously presented in February.
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