Carlyle Group Inc. — Call Transcript 2026

As you heard, my name is Daniel Harris. I'm Head of Shareholder Relations here at Carlyle. It is so great to see all of you here. Thank you for joining us today. We appreciate your efforts to get here through the weather, obviously. To everyone around the webcast, around the world, we appreciate your time today and your interest in Carlyle. Before we begin, I have the pleasure of going over some legal disclosures. Earlier this morning, we issued a press release and a detailed presentation, which are also available on our IR website. This event is being webcast, and a replay will be available. We will refer to certain non-GAAP financial metrics today. These measures should not be considered in isolation from, or as a substitute for, measures prepared in accordance with GAAP. We've provided reconciliation of these measures to GAAP in our presentation to the extent reasonably available. Any forward-looking statements made today do not guarantee future performance, and undue reliance should not be placed on them. These statements are based on current management expectations and involve inherent risks and uncertainties, including those identified in the Risk Factor section in our Form 10-K, that could cause actual results to differ from those indicated. Carlyle assumes no obligation to update any forward-looking statements at any time. Lastly, today's presentation does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any Carlyle product. With that, we're really excited to get started today. It's been a really great experience for us preparing for this event. As you've heard us say, we have enormous positive momentum at the firm, which has really made preparing for this event so exciting, and it's given all of us here at Carlyle the opportunity to reflect on the transformation and growth and substantial opportunities that we have in front of us. Our business today is exceptionally diversified across strategies, geographies, and distribution channels. We're incredibly proud of what we've been delivering for our shareholders over the past few years, and what's most compelling to me is that we are far from done. Today's program is designed to give you a clear view of our priorities and our long-term outlook, and how we plan to execute on those priorities over the coming years. We have a targeted agenda, which you'll see on the screen for today's meeting. Our CEO, Harvey Schwartz, will kick off our presentation, followed by a deep dive into our global client business, led by our Co-President and Head of Client Business, Jeff Nedelman. We'll shift into a discussion of each of our segments: Global Credit, led by Mark Jenkins, and the Global Private Equity and Carlyle AlpInvest business, led by Co-President John Redett. After a quick break, we're gonna shift into a few topical panels that I think you'll find really interesting on AI, and then some high-conviction opportunities that we see here at Carlyle. Our newly appointed CFO, Justin Plouffe, will go through our performance and multi-year financial outlook, which I know you're all very focused on. I'm gonna ask that you keep track and hold all of your questions till the end. We'll address them during our Q&A session when all the presentations have completed today. All this is gonna wrap up later this morning, at which point we'll break for lunch. Before we kick off with Harvey's presentation, we have a brief video that we want to share with you. We all hope here at Carlyle that you leave today as excited as we are about what lies ahead for Carlyle. Thank you. What's the value of connection? In private markets, it's the raw power of your network, the relationship capital that opens the right doors and closes the right deals. At Carlyle, we know a thing or two about connection. We've been mastering it for four decades, building and cementing global circles of trust, connecting insight from the hill to expertise on the ground. That's how we keep you a step ahead of change. Partnering with businesses to fuel growth and taking investors straight to the source of long-term performance by combining insight, access, and execution to unlock value. We focus our capital where conviction is highest, backing opportunities that can transform industries. Where it matters most, you're always connected to what matters most, because the right connections drive performance. Carlyle connects you. Good morning, everybody. On behalf of the whole team, truly appreciate all of you being here. We know you're super busy. You electing to spend the time with us, we're very grateful. I also wanna say, for all of you who've engaged with us over the last couple of years, we've really. We're grateful for your covering us, your engagement, your feedback. Just over three years ago, as all of you know, I had the privilege of joining the firm as the Chief Executive Officer, and when I showed up, you know, it was immediately obvious to me all the incredible strengths of the firm: global iconic brand, recognizable everywhere around the world, extraordinary talent, deep client relationships, and, you know, a culture that was inspired by the founders when they launched private capital in the firm nearly 40 years ago. Of course, we also had some work to do, and we did this work not through a single initiative, but through a thoughtful decision-making process, really designed to build a more diversified, more durable, firm, and it was a very systematic decision-making process. Let me summarize that for you a bit. We basically distilled this process across three guiding principles. The first, creating a strategic growth plan. We identified areas really where our strengths best fit our client needs. You'll hear from Jeff later, how we put the client at the center of everything we do, because that is most critical. We launched a series of growth initiatives, and then we invested heavily in those areas. You know many of them. They included, and not limited to, creating a wealth, a well-defined wealth strategy for our wealth clients, establishing an integrated credit and insurance strategy that levered our partnership with Fortitude Re and our long history in private credit. We invested significantly and strategically in Carlyle AlpInvest. It was very clear when we got here, that was a power alley that could really be levered. The strength in secondaries, co-invest, financial solutions, really critical for the marketplace. We also drove growth in our capital markets business and systematically integrated data science into the platform. Second, we did a really thorough and rigorous evaluation of the operating business model. This included a review of the expense base, identifying expense savings. We needed that to fund scalable growth initiatives, and when we had to, we de-emphasized or just eliminated underperforming business lines. We overhauled the compensation plan to better align our teams with all of our stakeholders, and we created a capital allocation strategy that balanced investment in growth with the return of capital to our shareholders. Now, the third thing, and maybe the most important thing, is really the leadership and organizational design changes we made, because you can't drive significant change without change. You certainly can't drive this much change in 3 years unless you have a world-class leadership team. You have to be able to mobilize the firm effectively. Since my arrival, we made a number of senior leadership changes, each one very much designed to build the institutional management infrastructure that a firm of Carlyle's scale requires. Most recently, as you can see on the slide, we appointed three co-presidents. Actually, for the first time, I just noticed I'm the only bald part of the leadership team. Our team has great hair, actually. They, most recently, we appointed these three co-presidents: Mark Jenkins, Jeff Nedelman, John Redett, proven veterans who partner with me to drive overall firm-wide strategy, investment performance, and client strategy across the platform. Lindsay LoBue, not to leave Lindsay out. Great hair, Lindsay. Lindsay LoBue joined as our chief operating officer. She brings more than two decades of experience building and scaling businesses. As of January, Justin Plouffe stepped into the chief financial officer role, been at the firm for nearly 20 years. These changes are just part of more than a dozen senior leadership changes made across the firm in the past three years. Of course, this cascades down through the organization because they all bring their unique strengths and change to the firm, and they again mobilize all this change. You'll hear all from them during the course of the day, they really drive the team and our success in everything we're doing. When Carlyle was founded by David, Bill, and Dan, you know, they set the foundation for our firm's culture. You know, it's 1987, it's not 2026. You know, if you're doing a startup in 2026, maybe you hire some consultants, you use an LLM, you craft your principles. You know, they didn't do this through elaborate studies or hiring consultants. They just lived it. They just started it. They walked the walk, they set the tone, we've all talked quite a bit about this. I certainly have since I got here, and what really became quite clear as they really pioneered private capital, is that they focused on two fundamental values. The first is around care. The second is around excellence. Care for fellow colleagues, our clients, how we interact with our strategic partners and our portfolio companies. It's really centered around kindness and, of course, performance in all aspects of everything we do. Our leadership team, what do we do with respect to that? We feel the great burden and responsibility to enhance these principles and reinforce them in everything that we do. You hear a lot about strategy today, but I really hope you get a sense for how deeply we care as a management team about the success of our firm and the success of our people in everything we do. We do really take the responsibility of protecting and promoting this culture quite seriously. All right, where are we today? I don't know. If I have a favorite slide, it's a pretty good slide, okay? This team and everybody out there working globally for Carlyle has done an amazing job. As you can see on the slide, we come into 2026 off a super strong 2025. Lots of records on this page. Record FRE, record margin, realizations. Not an accident. This is really reflective of everybody's hard work over 3 years, and we are super grateful, maybe me more than anyone, of the collective effort of the 2,500 people at Carlyle that come into work every day, and the effort of our global team. Let's take a second, let's just dig into some of the financial performance more specifically. On this slide, you'll see Fee Related Earnings, FRE margin, DE per share. Record Fee Related Earnings of $1.24 billion. That's up 50% from 2023. That's a 20% compound organic growth rate. FRE margin in the middle of the page, 47%. That's a record, up 1,000 basis points, not easily achieved. Distributable Earnings, $1.7 billion, $4+ a share, up 11%. Fee revenues, $2.6 billion, a record reflecting 7% organic growth. Obviously, everything we've done over the last three years has been 100% organic. Transaction fees, in the middle of the slide, hit a record $225 million. That's almost triple the level from two years ago. Over the last several years, we have increased the amount of capital returned to shareholders by 70% through a combination of share repurchase and dividends. At the same time, we invested in the growth initiatives, and you can see the capital return on the far right. When I got to Carlyle, all of you were great. Sometimes a little intense. I'm a big guy, but a little intense, and you were very, very focused on financial targets. We set them, and you wanted them, and of course, you should have them. Given the team's performance, it's really no surprise, they set the targets, they exceeded the targets both in 2024 and 2025. I will say it's a real testament. You can see it on the slide, whether it's FRE growth, FRE margin, inflows. It's really evidence of this team's ability to set a strategy, execute a strategy, exceed a target. This discipline that this team has brought to the entire organization and drove these results is now really fundamental to this next phase of growth. Here are the targets. It's very clear to us, we see a path to scaling the platform, and the targets reflect that. Let's just quickly walk through them on the slide. By the end of 2028, we're targeting Fee Related Earnings of $1.9 billion. That's a 15% compound growth rate. $2.8 billion+ in management fees. FRE margin, excuse me, targeting 50%. Cumulative inflows, $200 billion from 2026-2028, and Distributable Earnings per share of $6 or more. The question you're all asking, of course, is the question you asked me when we put out the first targets, which is: how did you come up with these numbers? How do we set the targets? Super straightforward, bottoms-up build. We don't assume any inorganic growth in these targets, 100% organic. We don't assume any significant strategic transactions. We don't assume any strategic partnerships. This is the fundamental model that we believe we can execute over the next three years. There are no magical surprises that we're hoping occur that we can't identify as we sit here today. How would I describe it? I'd say there's a lot of operational leverage in the plan and upside to what we've laid out today. You can feel the momentum of what we're doing. I don't think the firm's ever been as well positioned as it is today, and certainly with this extraordinary team. I, when I showed up at Carlyle, I spent a lot of time externally, a lot of time internally, obviously, and getting to know our teams, and I would speak to our investment professionals, and when I asked them about when they were investing, kinda like to give me a sense of their process. Obviously, it's quite intricate, from diligence to execution. There was one thing that really resonated with me, they said, every time they look at a company, obviously, they do all the mathematical work and the analytics and everything else, but they come back to a fundamental question, which is, what is this company's right to win? What is their right to win? When we think about deploying capital on behalf of our clients, we have to ask ourselves, the people that are getting that capital, what's their right to win? Obvious common sense applies. We apply that same lens to ourself. Let me walk you through why we believe these targets are achievable and why we believe we're uniquely positioned to win. We win because we're global but have local expertise. In a de-globalizing, somewhat globally splintering world, this is incredibly powerful. We operate across four continents, deep local knowledge, dedicated funds across global regions. It gives us a lot of advantages, structural advantages in sourcing, building management team relationships, and accessing opportunities. I mentioned before, we have 2,500 employees, 27 offices around the world, but it's not about just the offices and being in the regions, it's how long they've been in the region and the commitment to the region. 39 years, obviously, in the Americas with the launch of the firm, but 29 years in EMEA, 28 years in APAC. Japan just got exciting for everybody in the world. We've been excited about Japan for 25 years since we launched the office, stayed, committed, grew, built relationships, built networks. This is a talent-driven business. The whole firm is about the people. It's also a business like all of you and your, the work you do, it's an experiential business. Reps matter. Just to give you a sense, of the partners at Carlyle, the average tenure is 15 years. They have experience, they've seen cycles, they know how to deploy capital, they know how to work with relationships, and they know how to build value. Why else do we win? We win because connectivity is embedded in our model. Since the founding of the firm, we've built one of the most recognized and trusted brands in global finance, and trust is critical. The teams built this over 40 years by creating deep, enduring connections with investors, companies, and stakeholders. We have CEOs that continually come back to the firm to lead portfolio companies because they like Carlyle and our investing teams. It's about trust and the experience they have. What else makes us somewhat unique? Our Washington, D.C. roots. They just differentiate us. It's a distinctive insight into policy, regulation, geopolitical dynamics, and obviously, in the current environment and the foreseeable environment, all these factors increasingly shape capital flows and markets, and how capital has to be deployed. A bit of an accident. David grew up in Baltimore, lived in D.C., started the firm, but ended up being a unique advantage. You know, global connectivity, for lack of better language, is not just, like, part of the story as I just described it. It's a structural competitive advantage for Carlyle, and it helps support our sustained growth. Why else do we win? We win because we operate at scale, and we have a diverse revenue stream. There are certainly times when you want to be more monoline focused. There are times you want to be more diversified. I would argue the current environment, the foreseeable environment, really plays to diversification. You can see this on this slide. We offer a full range of solutions across the platform. We're not wholly dependent on one solution set. You know, from private equity to Carlyle AlpInvest to credit, we have a really diverse set of clients, and the combination allows us, when we go in a room, to talk to the client and help them solve their problem. It's a broad set of solutions that allows us to fit their priorities. The geographic footprint, the breadth of the business lines, and the global client base is diversified. Diversification creates durable earnings across cycles. Today, the discussion's about we don't happen to be a big SaaS player, but when I showed up, everybody told me, "You should have been way bigger in direct lending before you got here, I mean. You should have been way bigger in SaaS." Okay, three years later, now it's a virtue to be smaller in SaaS and still have a great direct lending business, which we can now grow as others retreat. Okay, the world evolves, okay? Diversity underpins the financial architecture of this plan and why we feel confident about the targets. Okay, why else do we feel good? We feel good about this because you know the expression, you want to be, you know, you go... What is it? You want to be where the puck goes. The puck is coming to us. What do I mean by that? The markets today map pretty directly onto our distinctive footprint. A global focus on national security, rising global defense budgets, increasing geopolitical complexity, that's like home turf for our nearly four-decade track record in aerospace, defense, government services. There is not a country in the world that is not prioritizing national security. We're the only ones that do this at scale for 40 years, nearly 40 years. Everywhere I travel in the world, the discussion is about economic growth. It's not just a U.S. phenomenon, it's everywhere in the world: Japan, Europe, Middle East, Southeast Asia, Canada. Everyone, every prime minister, every official, every company CEO wants to create economic growth. The capital that these companies and governments need, it can't come from the government exclusively. Deficits are too high. There is a unique demand for capital of all forms, by the way, not just private capital, bank capital, but wherever that capital can be sourced, there is a unique demand for capital. It happens to map with our expertise, along with aerospace, defense, and government services. This cuts across all key industries for us: industrial, financial services, all the real assets that we have decades of experience in. This fits us really, really well. I said this to some reporters. I said, "Who knew the old economy was the new economy?" There's some real traction to that. I also happen to think the new economy is the new economy. All this plays to our power alleys: healthcare, industrials, financial services. This is where we have decades of experience deploying capital, and it's exciting. It cuts across industries, geographies. Again, the capital structure from equity to debt, and again, it's this diversification that makes the earning stream durable and gives us confidence. If one thing's not firing, we're not wholly dependent on it, and the structure of the firm gives it a lot of ballast. You know, the secondaries business, the primary private equity business, they can both fire at the same time, but there's ballast in that mix, and it's pretty fantastic for us. As we look ahead, we've organized around three firm-wide priorities: delivering exceptional investment performance, scaling the platform advantages that we have, and accelerating high-growth opportunities. You know, these priorities, they're not independent of each other. You know, they reinforce each other, and they compound over time. Look, you're gonna hear a lot more about each of them today from Mark, Jeff, John, Lindsay, and Justin, and from the panels. They'll take you through deeper how we plan to execute. Again, most importantly, we truly appreciate you being here. We truly appreciate you supporting Carlyle. We appreciate you challenging Carlyle. Again, never hurts my feelings. We love your feedback. It's actually been quite helpful for me over the last three years, joining Carlyle and hearing all your thoughts. Mostly, we appreciate you being here today and engaging us. Everybody, thanks so much. Please welcome Jeff Nedelman. Thank you, Harvey. And by the way, before I start, I've worked with Harvey for 20 years, you know that puck analogy? That was gonna be my analogy and my presentation, just to let you know. By the way, for those of you who don't know, that's Wayne Gretzky on where the puck's gonna go. Again, thank you very much, Harvey, and thanks to everybody in the room. I am Jeff Nedelman. I'm Co-President of Carlyle, and I lead the Global Client business. Our strategy is simple: It begins and ends with our clients and the solutions we create on their behalf. This really isn't a tagline, it's an operating principle. It's what I think of as our Rosetta Stone, the lens through which every decision in the business gets made. Everything I'm gonna walk you through today, the organizational changes, the talent we brought in, the products we built, the channels we're targeting, it all flows from the single commitment of our clients and solutions. You got an essence of this when Harvey spoke, and you see a lot of our intellectual capital in this slide, what connected me to an institution like Carlyle is the power of this brand. What does that mean? It's long-term track record, it's diversified and durable client base, and the ability to convene and connect on a global scale. Whether we're in Davos meeting thought leaders, or in Singapore with the Sovereign Wealth Fund, or in a wealth advisor's office in Texas or California, our brand is consistent and our partners always lean in. A lot has happened in the last three years, and the power of the brand allowed me to optimize our client business strategy. This is really almost a three-year look back on some of the things that have happened and the milestones: org redesign, prioritizing talent, solution-focused, advanced analytics. Hey, just very quickly on advanced analytics, Harvey uses a term called clever. We want our salespeople to be clever how we use data science and AI, and Lucia will talk about that later today. Really, on org design, we transitioned from a single product mentality to a genuinely client-centric, multi-product model, not in name, but in how we're structured, how we're incentivized, and how we show up for clients every day. As importantly, we integrated global wealth into the heart of the platform. You know, on talent acquisition, the people behind this transformation, our goal always and will be to find the best talent, whether within our organization or externally. Internally, we did that with new leadership in AlpInvest, credit sales, and the U.S. institutional business, but we also made several senior hires align with our strategic priorities. Shane will talk later, be part of a panel, so I'll mention him by name, but we hired Shane in 2023 to redesign our wealth business. In a short time, he and his team and us created a durable, diversified business, which gives us the right to win in wealth. In the last six months, we hired an exceptional person from Goldman Sachs to head our North American client business. We leveraged her dual fluency in both the institutional and wealth businesses to deepen our presence in both channels and manage our people. She's got exceptional EQ. Finally, in the last few months, we hired a 25-year thought leader to actually lead our retirement business, building solutions for the 401(k) channel, defined contribution, and plan sponsor community. Let me walk you through the key goals for the client business and the way we think about this. Priority one, grow a diversified and durable client base, deliver exceptional performance, be a solutions first partner, invest in talent. Priority two, scale and expand our client solutions, exceed $200 billion of inflows over the next 3 years, scale our flagship strategies, deepen partnerships, and expand into key channels. Priority three, drive excellence in wealth, expand and innovate our product suite, strengthen RIA channel penetration, engage and educate our client base. The wealth opportunity is generational. We are built for it. You know, you're going to hear a lot about performance and exceptional performance. Before I talk about these goals in detail, I want to state the obvious: Any client conversation starts with exceptional performance. Performance is the price of admission in our business. It's purely just table stakes. The foundation of everything we do is rooted in the client relationship. Let me share a dashboard about our clients and our team. I do love this slide, too. We have 32 limited partners across 87 countries. That's not a client list, that's a relationship map built over 40 years. In the last three years, we've added 450 new limited partners, while simultaneously seeing 250 existing LPs expand into multiple Carlyle strategies. That's simply cross-selling. Our clients average 11 years with Carlyle. In wealth alone, we've developed over 200 distribution relationships. I'll talk about that in a bit. Today, our sales team is 274 people strong, operating across 27 global offices, and our investor relation partners average 11 years at the firm. This is something we're exceptionally proud of. How do we source capital globally? This is a 2023 to 2025 chart. Since 2023, we've sourced capital on every major continent: $110 billion from the Americas, $24 billion from APAC, $15 billion from Europe, $9 billion from MENA. Our clients are everywhere their capital is deployed, and our team is structured to meet them where they are, in their language, and the context that matters to them. Again, local to local. Okay, Harvey did it, but everyone gets to at least use one sports analogy in their presentation. When we think about Wayne Gretzky and where the puck's going, this is where I think the puck's going, and we think the puck's going. Of course, the puck's going to retirement. That's a $44 trillion TAM. It's the largest pool of capital in the world, it will increase its allocation to the private markets. Our goal is to build a focused business around the defined contribution and 401 opportunity. What does that mean? We plan to be key to the ecosystem of plan sponsors, financial advisors, managed account providers, and record keepers. The puck also goes to the RIAs, the fastest growing distribution channel in wealth management. I call them the hyperscalers, gaining market share and massive asset flows. They are a key distribution channel for the next generation of products, but are also our next generation of model portfolios. Lastly, the puck is going to family offices, $5 trillion TAM. Sophisticated investors want institutional quality access. Carlyle's brand, track record, and intellectual capital resonates deeply here. We've built the team, we've deepened our client relationships. Now let me share some key financial results. This is our 2025 scorecard. In 2025, we raised $54 billion, we beat our internal $40 billion target by 35%. What's nice is we source capital from a diverse, durable client base: pensions, sovereign wealth funds, family offices, private wealth partners, foundations and endowments, and insurance clients. Over the last three years, we raised capital across 30 different strategies. You know, this is exceptionally important for a variety of reasons. The first thing is, our clients tell us repeatedly they want a solutions provider. They don't want a vendor, a partner who can meet them across their portfolios, across asset classes, geographies, and risk profiles. You know, when I look at this, I see, yes, US Buyout IX, I see Japan Partners, I see US Real Estate X, I see SECF IV, I see Secondaries IX. Here's why this breadth matters so much right now. Almost every solution on our platform will be in the market in the next three years. This is what powers the multi-year super cycle. It's not about macroeconomic tailwinds, it's about our calendar, our platform, and our client relationships converging at exactly the right moment. Running across all of it, Global Wealth, bringing evergreen access to this entire platform. You heard this from Harvey, but this brings us to our new target of $200 billion+ of inflows by 2028, and we intend to exceed it. The composition tells the story: $50 billion from Global Private Equity, $90 billion from Global Credit & Insurance, and $60 billion from Carlyle AlpInvest. Every business contributes, every channel is activated. $40 billion of that, or 20%, will come from wealth evergreen solutions alone, a business that barely existed here three years ago. Slightly repetitive, but I want to do this again. I want to connect this back to what I said on the last slide. The reason $200 billion is achievable, the reason it's not aspirational but structural, because every key Carlyle strategy comes back to the market in this window. The demand is built into the cadence of our platform. I want to talk about where the biggest client opportunity is and how Carlyle is positioned to win it. This is what I think about in the long game. You know, the adoption of private markets and wealth, I intellectually call this the direction of travel. Obviously, it's topical right now and well disseminated. It's hard to predict if the direction of travel is linear growth, geometric growth, parabolic growth, and it's also hard to predict the timing. I'm going to reiterate something that everybody knows, the pure opportunity set in wealth. If you look at this, alternatives represent only 3% of high net worth portfolios. That's a four and a half trillion against a $150 trillion individual wealth market. In 10 years, depending on what third party you believe, that allocation is projected to nearly triple, reaching $12 trillion. The direction of travel is robust. I also, in my own mind, think about this as a superhighway. What specific lane do you choose to play in? Carlyle will continue to be product quality, structural integrity, client education, and client trust. Lastly, we'll play the systematic long game as we continue to scale and build new and diversified solutions for the wealth channel. This is a bucket list of almost success, so let me spend a minute on the success of our wealth management business in the last three years. Congratulations to Shane and his team. On evergreen products, from three to nine, a threefold expansion of the solutions we can put in front of wealth clients. On dedicated professionals, 46 to over 110, more than doubled, because you can't serve a growing client base without growing the team to match. On evergreen AUMs, 3x growth in three years. That's the market responding to what we're building or what I think of as proof of concept. Lastly, and this is very key, distribution relationships from 120-200, 'cause the best products mean nothing if it can't reach the client. We've invested in distribution the same way we've invested in everything else, deliberately and at scale. Our wealth strategy has two big gears: scale what's working and build what's next. Today, we're scaling our platform strategies, we have acronyms from everything, CTAC, CAPM, and CPEP, the flagship evergreen vehicles that have already earned client trust and capital. These are the engines of our current wealth growth. Then on a three-year look, 2026-2028, we have a clear build-out agenda. Our Asset-Backed Finance and our CIT build on the retirement channel are closest in scope. Every product we build starts with the same question: What is the client need that they can't get today? That's the filter. That's the absolute discipline. I'm very proud of this. This was a lot of time and effort for many people here. In wealth, product is only half the equation. The other half is something we call reach, getting our solutions in front of the right clients through the right advisors at the right moment. Our collaboration with UBS on what we call CAPS is a perfect example. You see Carlyle AlpInvest, 25 years of experience executing complex secondary transactions globally, $46 billion in secondaries, 250 unique investments since inception, deep expertise, proven track record. The other hand, UBS, $330 billion combined of invested assets, a global network drives a robust deal funnel, and one of the most powerful distribution platforms in wealth management. You look at this, the result is a product called CAPS, a vehicle designed specifically around wealth clients, what wealth clients need. Institutional quality, secondaries exposure, with the accessibility and structure that the wealth channel requires. Simply, this is where expertise meets reach. For all you possible F1 gearheads, that is the new car for next year, okay? Just to be clear. Again, to emphasize expertise and reach, this is the new Oracle Red Bull car, and it's where we partner with a technology-forward, performance-driven organization, Oracle Red Bull. As it relates to F1 and demographics, it's pretty extraordinary. 827 million fans with exceptional age and gender demographics. The partnership alone has generated $325 million in total media reach and $72 million in equivalent advertising exposure. For instance, when Harvey appears on CNBC with the Oracle Red Bull team manager, Laurent Mekies, we're able to connect to a vast audience, 500,000 strong. Again, this is where expertise meets reach. This brings me to our targets for the wealth business. We're targeting $40 billion in wealth evergreen inflows from 2026 to 2028, more than 3x the $12 billion we raised in the prior three-year period. The growth will benefit from the same super cycle effect I mentioned earlier. Each business segment will contribute to enhancing our wealth platform to meet client demand. The three things I want to leave you with today. One, performance first and solutions first approach. Two, we will continue to grow our wealth franchise methodically. The long-term structural shift into alternatives is underway. We build our wealth business the right way, the right products, the right team, and the right partners. Three, most importantly, deliver $200 billion of inflows by 2028, I want to be specific about why this is achievable. Again, every major Carlyle solution across every business segment comes back to market in the next three years. The super cycle isn't a vision, it's our fundraising calendar, and it points directly to $200 billion+. I'm going to end where I began, which is clients and solutions, relentless and methodical. The team we built, the channels we're targeting, the partnerships we're forming, the products we're creating, all of it exists to serve one purpose, to be the best partner. Thank you very much. Please welcome Mark Jenkins. Well, thank you, Jeff. I'm Mark Jenkins. I'm responsible for Global Credit Insurance. Two areas I'm happy to see is not getting much focus on in the news lately. As Harvey mentioned in his opening remarks, Carlyle's Global Credit platform really represents the continuation of a strategy and a growth story, whose foundation and differentiated strategy we started almost 10 years ago today. Today, I want to provide you with an overview of our Global Credit business, how we've built a differentiated platform, and why we have extremely strong conviction in our continued growth opportunities going forward. Global Credit is a purpose-built platform that delivers solutions to both our borrowers and investors. It's a scale-diversified platform with over $211 billion of AUM and continues to grow. ... Nearly half of our capital, as you can see, is perpetual, giving us the benefit of semi-permanent capital, I'm sure we'll talk about that in Q&A, with greater visibility into management fee streams going forward, and obviously compounding value for our shareholders. We combine that with scale and a highly active and differentiated origination, which has allowed us in the past year to deploy over $30 billion alone, underscoring really the strength of our origination platform and our ability to generate management fees at scale. Credit, as you all know, is not a monolithic asset class, right? It does span a wide risk-return spectrum. We built a platform that covers that full spectrum of credit, okay? From liquid corporate credit, which is all of our CLOs, BSLs, to private credit, direct lending, which I know is in vogue right now, opportunistic, hybrid capital, real asset credit, which for us is infrastructure credit, aviation finance, and real estate, all the way through to and including asset-backed finance. This purpose-built platform provides a broad array of expected returns that allows us to invest at various points through a cycle, and more importantly, move capital to where we see the most attractive risk-adjusted returns for our investors. It's that breadth of product that creates one of the industry's broadest origination funnels, and it generates a vast amount of information flow for us to make investment decisions, obviously, and allows us to deliver very differentiated and direct outcomes for our borrowers and investors. Over the past three years, we've had significant strong growth. As you can see, fee revenue has grown at a 17% CAGR, but probably more importantly, fee-related earnings have nearly doubled over that same period of time. It's grown at about a 34% CAGR. That really demonstrates the meaningful operating leverage that we have in that platform and allows us to expand margins in our business as we grow. Margin expansion, for us, really reflects all the prior investment that we've made in infrastructure and technology, and most importantly, talent, as we built out that broad array of product expertise. That allows us, for each incremental dollar of AUM, is increasingly profitable, okay? That growth has been deliberate. We set out a very deliberate growth pattern. We scaled high-performing strategies, we've expanded into fast-growing areas of the credit segment, and we've launched evergreen vehicles, you know, as Jeff talked about, which is bolstering our capital formation. At the end of the day, sustainable growth requires quality. Quality growth requires persistent and consistent investment returns for our investors within a very defined, expected range of opportunities, we have to provide compelling solutions for our borrowers as well, that all translates into strong, durable AUM growth, which Harvey talked about. Now, I'd like to frame, I'm sure you've heard a lot of presentations on how people frame the private credit market, I think the traditional view has always been this $2 trillion market of what I would call leveraged private credit. More than half of which, by the way, is in direct lending to sponsors. For us, private credit is a much broader opportunity set that exceeds $25 trillion. It's 12x that traditional view, as you can see here, and it spans all these multiple assets, classes, and structures that our platform is built and designed to focus on. Our $211 billion of AUM represents actually less than 1% penetration of that addressable market, so we have plenty of room to grow. Capital, as you know, is increasingly consolidating with scaled managers, like Carlyle, and we know our diversified, differentiated platform positions us extremely well to capture our share of that market. More importantly, or as importantly, I would say, depending on how you want to look at it, I think as an investor, it allows us to maintain that investment discipline, right? Take advantage of that underlying operating leverage that we have in our platform. I think, you know, we've talked about it throughout, that, you know, performance matters because nobody wants your products if you're not performing. How do we capture that market share? Well, we're gonna scale into what is already working, right? We're gonna continue to expand in already proven strategies like Asset-Backed Finance. Yes, direct lending, where we are probably under-scaled relative to some of our peers, opportunistic credit, and cross-platform accounts. Secondly, we're gonna move into adjacent markets and geographies. We see a lot of white space in select regions. Let's think about Asia, Korea, Japan, Australia, India. We've been doing more in Europe recently, and we think there are specific sectors like sports, media, and entertainment that are attractive from an investment perspective. We want to optimize our distribution. Each of the institutional, insurance, and wealth channels have very distinct needs as to how we deliver what they want and how we deliver it, and we're well-positioned to meet them through our broad product array and the multiple access points that we have as a firm. We're targeting just over $90 billion of inflows over the next three years, a goal that's well-grounded in our historical flows, which in the past three years were around $80 billion+, with potential upside from insurance solutions, which I'll talk about, and other new product launches that we're considering as I stand here today. How are we executing against our firm-wide priorities that Harvey laid out up front? Well, first, we have to deliver exceptional performance, right? Without strong, consistent performance, nothing else matters.... Second, we're scaling our platform advantages, reinforcing that flywheel effect that compounds the benefits of the business as we continue to grow. Third, we're going to accelerate into high-growth opportunities, right? Insurance, as I mentioned, asset-backed finance, cross-platform credit, they're all scalable things that are going to drive our next phase of growth. Now, let's talk about performance. Across our platform, we have delivered exceptional performance, and that is defined as consistent and persistent returns through cycles. Our track record spans multiple market cycles. Think of the GFC, think of COVID, think of, like, the interest rate increases in 2022, 2023, and a lot of other minor little dislocations along the way. In liquid credit, our CLO management equity returns of 13% reflect 26 years of investment experience and underscore our history of outperformance. We have driven double-digit performance in private credit, and we've made and delivered a premium to the index benchmarks that we use, in asset-backed finance. Just looking at CTAC for a minute, which is our flagship cross-platform vehicle, which provides investors with really exposure across all of our credit capabilities within global credit in one single allocation. It's delivering double-digit returns over the past three years. We're able to drive these outcomes across, our platform of $211 billion through proprietary originations, rigorous underwriting, which everybody talks about, but it only comes out of the other end when you get your money back, and a focus on downside protection, right? The integrated benefits of being in a scaled provider, but not just scaled within global credit, but scaled within that broad context of Carlyle overall. That's how 40 years of operating history of dealing with clients and dealing with industries on a global basis. Harvey has a favorite slide, and I have a favorite one, 'cause I've been a credit analyst for over 35 years, and for me, it's not how you generate the how you generate the returns is really important. To me, it is, if you generate these returns with a lot of volatility, that's not a great outcome in credit. Ultimately, our objective is not just to generate returns, but protect capital. Over 26 years, if you take a look here, our historical bank's indicated loss rate has been about one-third of the broad industry loss rate. In direct lending, which I know people are focused on right now for different reasons, our default rate's roughly 1/9 of the industry average, but importantly, our loss rate has been 10 basis points. Translate that into what does that mean? That's about if you made 10%, 12 basis points, or you'd be making 9.88% versus 10%. That has been our loss rate. It underscores not just the underwriting discipline, 'cause that's part of it, right? Putting that investment in your portfolio, but it also underscores what we do after we put it in our portfolio and what our asset management capabilities are. When something goes wrong, how do we recover that capital? Why does that matter for shareholders? Durable earnings are built, I think, on a disciplined credit culture, right? The rigorous underwriting that we go through, that consistent focus on downside protection, and that investors trust us with their capital when we invest it for them. Let's talk about how the platform is designed to compound growth and reinforce, let's call it a flywheel. At the core, you can see here, of the flywheel, is really that integrated platform engine I talked about, right? It's the breadth of our capabilities, all of our product knowledge. It's the scale of our capital. It's the industry expertise. It's our sourcing relationships. It's our proprietary sourcing relationships. It's the investment we'll talk about in AI and technology, which helps us drive these decisions. It's the engine that powers everything that we do as a platform. That middle layer right there, that's our credit foundation. It spans all of those products, all that content, if you will, that our investors are looking for. Frankly, our borrowers are looking for solutions, so that is the content to how we deliver that, right? From liquid credit, private credit, real asset, and asset-backed, don't think of them as individual products. We think of them as a universe source of capital for solutions and for investors. Each of these strategies generates its own deal flow and market intelligence, borrower relationships, right, that inform investment decisions and help us create new investment opportunities for our investors. This allows us to scale and compound solutions for both investors and borrowers, right? Capital markets helps us enhance execution. It generates fees that we deliver to the firm and revenue for Carlyle. Cross, cross-platform accounts deploy capital across that whole platform of strategies at scale and give us that meaningful operating leverage, where we don't have to hire more people to put something into a cross-platform account. Insurance solutions leverage that diversified credit complex, if you will, so we can deliver capital-efficient solutions to insurance clients. Again, at our core, we are solution providers to investors and borrowers. There's an engine, we have a diversified credit foundation and scale that allows us to compound over time. We're just building and continuing to build on what we already have in place. Let's talk about some of the flywheel in action. I know Harvey Schwartz showed part of this chart before, really, you know, when Harvey Schwartz came in, we made a very deliberate focus on capital markets. Over the past three years, you can see it's driven that focus has driven significant growth. Importantly, what you can see is we've diversified the sources of capital markets fees, and we expect to see much further growth in global credit and AlpInvest going forward, where we think there's meaningful fee growth going forward for the firm. Okay. Let's talk about insurance. Really, there's three pillars to our insurance strategy, if you will, and we see significant opportunity to further accelerate the growth in the insurance channel. There's three key things I'd focus on. One is our investment in Fortitude Re. We have a 10.5% interest in them. It was the catalyst, if you will, for our insurance solutions business. This partnership, which continues to grow, and Fortitude Re continues to grow, enabled us to deepen our understanding of insurer asset management needs and ultimately build purpose-built solutions for insurance companies. Think about, we have built the product array in our platform that allows us to deliver that to third-party insurers. That expertise compare, you know, and our capital-light approach to the channel has made us much more relevant to third parties. Why is that? 'Cause we don't have a captive that we're feeding all the time, and our relationship with Fortitude is really based on an open architecture. That open architecture approach has allowed us to penetrate more down the third-party channel. Lastly, we are selectively exploring strategic relationships where we can use our capital-light approach but judiciously use our capital to expand our insurance AUM. The growth of our insurance capabilities, both in structuring and, you know, in distribution, has also allowed us to generate more fees, if you will, from a capital markets perspective. It's really a comprehensive approach, again, that's gonna provide solutions to insurers and also the growth of Fortitude that will continue to drive, you know, revenue there. Asset-backed Finance, it's one of our fastest-growing verticals right now. It's supported by strong secular tailwinds, I'm sure you've all heard about, and we think there's significant runway for expansion. As we, you know, highlighted in our market opportunity slide, the addressable market for asset-backed is substantial, and we're moving very decisively, and you'll hear from some of my colleagues today about how we're seizing on that opportunity. Since 2021, we've actually scaled that business from virtually nothing to over $10 billion, and as I mentioned, our partnership with Fortitude Re really was a catalyst, right? Looking ahead, we have the launch of Evergreen Vehicles in 2026 and beyond, that we're gonna lead to our next phase of growth in ABF. These vehicles, Evergreen Vehicles, will open up additional distribution channels, which will include non-insurance, institutional, and high net worth. Importantly, the growth drivers for asset-backed finance are really structural versus cyclical. I'm sure you've heard it from my peers, but basically, banks are retrenching from asset-backed lending due to mostly regulatory accounting and other regulatory events, and then capital market volatility has constrained financing, and pushed it into the private markets, where there's more durability, if you will, of providing that. That trend has created a sustained opportunity for private credit across hard assets, consumer, corporate, and intangible assets that traditionally have been held on bank balance sheets. We're not really investing in anything that hasn't been held in the market for 50-plus years, probably by banks. These are relatively good, secure assets that have been held by different constituents. We believe our Asset-Backed Finance strategy has the potential to be multiples of what you see on the screen here in the next coming years. Evergreen Vehicles, Jeff addressed these and talked about them. They have been one aspect of our growth, and they're very scalable and recurring. They provide semi-permanent capital, again, we'll talk about that, with more visible fee streams. We've grown our Evergreen Vehicles from AUM from $12 billion to $19 billion. In a very deliberate, steady way over the past three years, but it really does reflect the scalability that we have of these vehicles. As you know, which are continuously fundraising and reinvesting, it allows that AUM to compound over time for investors and for us, and reduces the reliance on going back to market with these drawdown funds. We've got a comprehensive set of products that allows us to serve the institutional market and the wealth channels, and it does position us extremely well for the retirement flows that we anticipate down the road, where the demand for private market exposure continues to increase, and I'd argue probably they'll look to credit as their first step, if you will. Again, we're leveraging the full breadth of the platform, differentiated exposures, that might be my time, making us highly relevant across all distribution channels, and we think we've got a meaningful runway. Okay. CTAC, which you've heard about, I think, is proof of our platform creating a differentiated product for the wealth channel. It's a multi-asset solution of credit that draws across that full breadth of global credit. It has grown at about a 44% CAGR over the past three years and represents roughly $7 billion in AUM for our platform, and as I said, delivering 10% returns over the past three years. What's the key to it? The performance is really driven by a dynamic asset allocation model that occurs through time. What that means by that, we have a top-down asset allocation model that allows us, again, to move capital where we see the opportunities, and we can, you know, the most compelling risk-adjusted opportunities, but rather relying on one single strategy, like direct lending, for instance. Today, that portfolio holds over 950 positions. I'll say that again, 950 positions. They're marked daily, so it provides significant diversification, but importantly, in this market, transparency to our investors. Again, this just allows us to invest through cycles and lean in where we see the opportunities. We built the Global Credit platform intentionally to enable this type of cross-strategy approach, which goes both institutional and high net worth. It's a key differentiator for our platform, and it represents really the best of Carlyle Global Credit in a single semi-liquid vehicle continue to, we think, enormous runway for growth in a methodical way. Let me just finish by saying we have a purpose-built, diversified Global Credit platform, and it's differentiated by the breadth of that platform, which enables us, again, to deliver tailored solutions to both our borrowers, which we need on one side, and our investors on the other side. We operate across a opportunity set that exceeds 25 trillion, we think we have a huge amount of runway for growth, and our target of more than $90 billion of inflows is highly achievable, and we think we have meaningful upside from there. Don't hold that to me too much, but we think we have upside there. We have strong conviction, if you will, in global credit's ability to drive sustained AUM and earnings growth, as we have demonstrated over the past 10 years of our platform's growth. With that, I'll thank you, and I'll pass it on to my colleague, John Redett. Please welcome John Redett. Good job, man. Good morning, everyone. Great to see some familiar faces. I'm John Redett. I've been with the firm for nearly 20 years. Up until my recent new role as Co-President, I was Chief Financial Officer for several years. I've spent the vast majority of my career at Carlyle on the global private equity side of the business. This is a business I know really well. This is a business I really love. For us at Carlyle, global private equity consists of corporate private equity and real assets. We have a 35-year track record in global private equity. I mean, this is where it all began for Carlyle 35+ years ago. We have an incredibly strong brand, a very well-respected brand. I think Harvey used the term iconic. It's a very much an iconic brand. The global private equity business, it's scaled, it's a global business, and it's also a very profitable business for Carlyle. We manage roughly $165 billion of AUM. In our portfolio companies globally, we employ 700,000 employees. That would rank us a top 10 employer in the US. You know, what does this give us? This gives us a tremendous amount of data. It also gives us great visibility into the global economy, which is a real advantage when you're investing. Kind of what Harvey touched on a little bit this earlier, when I think about this business looking forward, I think it's gonna be a great business, it's really gonna come down to what I call kind of the traditional private equity approach. You're gonna have to be a disciplined buyer. You're gonna have to be incredibly focused on driving returns through value creation, and you're gonna have to monetize assets earlier in the fund life, like we've done in CP VIII. I think the days of multiple expansion-driven returns are largely behind us. When we look at our returns in global private equity, nearly 80% of the return is driven by value creation. What do I mean by value creation? Improving the technology, the efficiency, expanding the business, focused on pricing, growing the business. These are just a few areas we focus on. Look, AI has been something we have been using in global private equity for years. It is obviously probably a topic that's top of mind for everyone in this room. It seems to be in every single article. Again, we've been focused on this for years. When we take an investment to the investment committee, AI is topics one through five. We spend the vast majority of the time talking about AI, how it benefits this investment, what are perhaps some of the risk of AI. I'm not gonna spend a lot of time on it. I don't want to minimize it, but we have a panel later today specifically dedicated to AI. As I said, this is a diversified business. It's a very durable business. As you can see here, we're not overly reliant on any particular fund. You can see corporate private equity is the cornerstone. Not surprising, given our 35-year history and track record in corporate private equity. This business really helps drive the Carlyle brand. When we buy a company like Vantive, we get tremendous coverage. When we monetize, like the highly successful Medline IPO, we get even more coverage. The business is a big driver of capital markets revenues. You saw that on Mark's slide. This has been a key focus area for the management team for the last few years, and we've had a lot of success in Global Private Equity, driving capital market fees. This is an incredibly important business to Carlyle. In terms of firm-wide priorities as it relates to Global Private Equity, look, investment performance, we are laser-like focused on investment performance. It's core to what we do. We're incredibly focused on scaling, continuing to scale the business, and we're looking for ways to find new areas to accelerate growth in this business. Investment performance, in the global private equity business has really been strong across the board. You can see on this slide, in our, in our U.S. corporate private equity business in the U.S., a 29% gross IRR. We have strong performance in Europe, in Asia, in Japan. When you look at corporate private equity across the globe, that's a 26% IRR. In our real asset business, real estate, a 17% IRR. And if you actually look at the real estate business and, and look at it kind of post the Great Financial Crisis, that 17% is closer to, 25. Very good performance there. Look, I think it's very clear the management team and our investment professionals are very focused on investment performance. When you look at the corporate private equity business, we could not be more pleased with where it sits today. I actually do have favorite slides, and this is probably within the global private equity, my favorite slide. The business is clearly showing real momentum. When you look at CP VIII, that's the current fund we're investing out of in the US, it's around 80% committed. It's looking like a great fund. CP VIII is first quartile on net IRR, second quartile on other metrics. It appreciated 17% in 2025. DPI is already 0.3. Okay, DPI is 0.3, and it's only 80% committed or invested. We are returning capital to our LPs in CP VIII, and the fund is not fully invested. CP VII is progressing, and it's improving. When you look at CP VII relative to previous vintage funds, on the left of this slide, CP VII's performance is generally in line at a similar point of those previous vintage fund lives. I'd also point out for CP VII, DPI has improved to 0.7. We are very pleased with how the U.S. corporate private equity business is performing. I think when you think about this extraordinary performance, and you add in the tremendous realization activity we've had, it really shows the momentum we have in this business, and we're very happy with where this business is today. This is another great slide. I actually guess I have two favorite slides. This is my second one. Maybe this is my first one. Look, in terms of realizations, and we've been talking about this for quite a while, we're an outlier. We are returning more capital to our investors than the industry. In 2025, we returned $18 billion of capital to our investors. It's continued in 2026. We're two months in, and we have already closed or pending closed $7.5 billion, which is largely in our U.S. corporate private equity business. In U.S. corporate private equity, which is again, largely CP VII and CP VIII, we returned $11 billion the last 12 months. That is a 100% increase year-over-year. How have we done this? It's been a mix of IPOs, trade sales, but it's driven by the great companies we own in CP VII and CP VIII. We basically opened the IPO market with StandardAero in October of 2024. We followed that with several more high-profile, successful IPOs. We did Rigaku in Japan, we did Hexaware in India, and I think everyone in this room is fully aware of the highly successful Medline IPO we recently completed. Medline was the largest ever sponsor-backed IPO, the largest ever healthcare IPO, and we are the number one sponsor by global IPO proceeds, over $10 billion of issuance. Clearly, our investment teams are focused on returning capital back to our LPs. I mentioned this is a global business, and Harvey touched on this. Look, we're able to take on a very complex global company and work across the globe together and make that investment. Some of our better investments that we've done in our 35-plus year history, they span the globe, with teams working together across multiple geographies, like our recently announced BASF transaction. I would just say collaboration is just part of the Carlyle culture. Harvey touched on this as well. We invest out of regional funds, which we think today is a real strength, and we've been doing this for decades. We've been in Japan for 25 years. Amazing brand, amazing leadership in that business, really a deep investment bench. We've been investing in Asia and Europe for 25+ years, long-tenured leadership. Very, very pleased with where we are in each of the regions we invest. We've always had an investment focus that I would describe as highly specialized. It's sector-focused. It's always been sector-focused. Our power alleys include industrials, financial services, healthcare, and aerospace and defense. We have never been a big software investor. We think our sector focus is perfectly matched for today's market and the opportunity set we're seeing today. We have a very deep bench of investors. I'm very pleased with that. That's a great thing to see. Our senior investors are long tenure. The average time at Carlyle for senior investors is 16 years. One of our real power alleys or real strengths is just global corporate carve-outs. We are a leader in corporate carve-outs, we've done over 80 corporate carve-outs. We've invested $30 billion in corporate carve-outs, the returns are really strong. We recently announced the BASF carve-out. That was a complex, multi-geography carve-out. Asia, US, Europe working together, and really leveraging that local market expertise that having local regional funds provides us. We announced Vantive before, BASF, and we also announced another carve-out, Worldpac. Look, we think carve-out activity is going to accelerate, and we think we're perfectly positioned to capture that opportunity set. Okay, aerospace and defense. This is a real core strength at Carlyle. Any stat you look at or any projection you see, they all call for a substantial increase in global defense government spending. The increases are in the trillions of dollars. This will go well beyond just defense. This will be a re-industrialization of certain countries, and it will require a massive upgrade in infrastructure. Aerospace and defense is actually where it started at Carlyle in corporate private equity. We are the only large global alt, alts firm with a dedicated aerospace and defense team. I think being a D.C.-based firm, we just have an edge in this space. We've invested $14 billion in A&D, and you can see the returns at 3.3 MOIC. They're just fantastic. We have a really good A&D team. The leader of that team's been at Carlyle for 25+ years. The bench is deep, but we see this as an enormous opportunity that's approaching us. Real assets. For us, that is real estate, we have a great real estate business, energy and infrastructure. We've been in the energy space for 25 years. We invest in energy globally. Real estate, we've been doing real estate for 30 years, and the returns are actually very, very strong. We were able to raise our tenth vintage real estate fund in the 2024/2025 timeframe, we raised $9 billion. This was in a timeframe where no one was raising real estate money. How did we do that? I think it just comes down to returns. We have outperformed the market, and our returns are durable and consistent. Our infrastructure business, look, we have very good performance in infrastructure. I think this is gonna be a big growth area for us going forward. Jeff Nedelman touched a little bit on the flow, our views on flows for the next three years. We're expecting $50 billion of flows over the next three years. That is up 70% from the prior three years. What is it driven by? Our existing core business. All flagship strategies will be in the market over the next three years. Really, Jeff used the term super fundraising cycle. It is a super fundraising cycle for global private equity. We're leaning into areas where we clearly have an edge, like carve-outs in aerospace defense, national security. Lastly, we're gonna scale our private equity wealth product, which we just launched in the fall of 2025, and this product really, it really benefits from the best of Carlyle across the private equity product or platform, sorry. All right, leave you with a couple thoughts. I only have a couple seconds left. We are incredibly focused on delivering performance excellence, investment performance excellence. We think the business is incredibly well-positioned, particularly for the opportunity set we're looking at today. We have a incredibly strong brand in global private equity. We've got a great long-term track record. We are delivering beyond what we have conveyed to our LPs. Business is really showing momentum, targeting $50 billion of flows. It's a super cycle for global private equity as well. Now I'm gonna shift gears and talk about AlpInvest. We don't need the voice of God, I'm still John Redett. I'm gonna start by just stating the obvious: This is a great business. This is a high-growth scale business with over $100 billion of AUM. High growth, 100% organic. We didn't buy this growth. The business is diversified. We have a 25-year track record. The easiest way to describe this business, and I like to simplify things, it's a liquidity solutions provider to the private markets. Harvey touched on this a bit earlier. We really focused on integrating this business several years ago, into the Carlyle, the broader Carlyle platform, and the results are clearly positive. I think the integration actually accelerated this high growth we've seen. AlpInvest benefits from being part of Carlyle, and Carlyle benefits from AlpInvest. Again, this is just an amazing business. As a PE investor, it has all the attributes one looks for when you buy a company: high growth, scale, strong margins, industry leader, and the last one I love, high barriers to entry. I think most people think of AlpInvest, and I would have put myself in this camp several years ago before I became CFO, as a secondaries business, and we have a great secondaries business, but it's a very diversified business. We have a great co-investment business, a primary business, and a portfolio finance business. We have a 25-year track record. The returns are strong and consistent. High barriers to entry, I touched on that. I'm not sure how you replicate 25 years of data on 30,000 companies and long-standing GP relationships. There are only a handful of scaled industry participants. You have really strong industry tailwinds that are both secular and cyclical. Supply, investment supply, exceeds capital formation. That's a, that's a healthy dynamic. The wealth opportunity set, it's real. I should say wealth and retirement. It's basically diversified PE exposure with limited J-curve, and we've had great success scaling CAPM. Flows are up almost 3x over the last 12 months. This business is certainly benefiting from cyclical tailwinds, but more fundamentally, it's structural. We are in the middle of reshaping how the traditional private equity model works. For LPs, we buy exposure, we lend against exposure, help rebalance portfolios, unlock new capital, and we create liquidity. For GPs, we touch GPs at literally every point of their life cycle. We optimize every dollar of capital, we provide GP financings, mid-life co-investment, continuation vehicles, and fund financing. We go incredibly deep in the sponsor ecosystem, positioned to be a winner in both private equity and credit. You can really see how the businesses are connected. Over around 60% of our GPs use multiple AlpInvest strategies or products. We're really a real solutions provider. I mentioned earlier, this is a diversified business, but the businesses are incredibly connected. They're not just funds. Each business helps drive activity across the broader platform. The primary business, that very much drives a lot of activity in the secondary business because of the connectivity with the GPs. Secondaries and portfolio finance are roughly 50% of the business, primary is around 25% of the business, and co-investment, 25% of the business. I don't have wealth on the pie chart, but wealth is roughly 7% of the AUM, but that's cross-platform, so that would be embedded into these percentages. I think of this business as a scaled liquidity solutions provider, but it's also a data-driven business. There are only a handful of scaled competitors. We have 375 GP relationships, over 700 LP relationships. The scale and depth of these GP relationships, long track record, really enable us to capture new areas of growth, like credit secondaries. Data. This is a data-driven business. We have data on 30,000 companies. That's 11 million data points. This massive amount of data, it puts a moat around this business, and it really gives us tremendous leverage in this business. I guess I have a lot of favorite slides because this is my absolute favorite slide. I probably don't even need to say much, but you can see we're able to drive management fee growth by nearly a 40% CAGR over the last three years in this business. FRE is up nearly 4x over the last three years. It's important to note again, this was 100% organic. We did not buy this growth. Three years ago, this business was 8% of Carlyle FRE. Today, that number is 22% of firm-wide FRE. Very, very pleased with that. We are also able to drive real margin improvement in this business. FRE margins have improved 2,000 basis points over the last three years. The margin now better reflects the scale of this business, and these margins were achieved through growth and scale. We did not cut our way to these margins, and we had $40 billion of inflows the last three years in this business. The priorities for the firm relating to this business... Look, investment performance is key to any investment business we have. It's been strong across the business. It's been consistent. We're really focusing on leveraging our current scale in this business. It's an advantage. We're looking for ways to accelerate already a high growth rate. How are we doing that? Well, wealth retirement, credit secondaries, portfolio finance, and insurance. Again, the core of the business, will continue to be a very high growth business as well. Real tailwinds in this, in this industry. Since inception, this slide's fairly self-explanatory, but since inception, the returns have been strong across the platform. Secondaries gross IRR, 19%, co-investment around 18%. Our investment professionals take a view on the assets, the quality of the assets, and the quality of the GP. We don't approach the market like a big index buyer or a top-down buyer. We also don't play in the deep discount space. That's just never been a focus area for Carlyle AlpInvest. We transact on 5% of what we see, so we can be incredibly selective, which is a real advantage. I've said that this business has a lot of tailwinds. They're both secular and cyclical. In the secondaries market, that's a big market. Let's use that one as an example. The secondaries market is doubling in size every four years to five years. It's an incredible tailwind. This is creating a real shortfall in capital versus supply. I think this trend will continue for the foreseeable future. When we talk to GPs today, 75% of the GPs we talk to are going to use the secondary market over the next two years. Five years ago, I think this number would have been closer to 25%. Real pickup in penetration on the secondary product. Let's talk about the forward-looking flows. We expect this business to continue to be a high growth business. That growth is going to be driven by the existing business, secondaries, co-investment, they're key growth drivers. Supply exceeds capital formation. There's only enough capital that's been raised to last to meet supply for a little over one year, and if you look at over time, that has been coming down for the last five years. Five years ago, it was about three years. Today, that's one year. This is a huge tailwind. It's not a constraint to us deploying capital. It enables us to be very selective. We transact in only 5% of what we see. The current secondaries platform is 80% committed. Deployment pace was similar to the previous vintage. I like our pacing on that. As we think about scaling some of the newer businesses, we think that will further accelerate what we think will be already strong growth from our core business. Credit secondaries, portfolio finance, and insurance should further accelerate growth when we look forward. Again, wealth, we expect wealth to continue to be a driver. Maybe it's not linear, but long term, we think it's a great wealth product. We expect $60 billion of flows over the next three years. To put it in perspective, we had $40 billion of flows the last three years, we're looking for a 50% increase of flows in the next three years. Like credit, like global private equity, this is a super cycle for Carlyle AlpInvest. Every single strategy will be in the market in the next three years. A couple of key takeaways. We've proven this is a high-growth business, and we expect it to continue. The industry has real tailwinds. Our growth has been 100% organic. This business is driven by deep, long-standing GP relationships and the proprietary data we've collected over the last 25 years. We touch the GP at every part of their life cycle, you can't really replicate 25 years of data on 30,000 companies. There are only a handful of scaled industry participants, and there are real barriers to entry in this industry. You read a lot about new industry participants. I think they're highly specialized, and they're small. They completely lack the depth and breadth of GP relationships, and we have the ability to attack them when we want. In this business, I think we have a clear right to win. Thank you. We will now take a brief break. The session will resume momentarily with Leveraging AI Across Carlyle. We will now resume the session with Leveraging AI Across Carlyle. All right. Hi, everyone. I am Lindsay LoBue, the Chief Operating Officer at Carlyle. This morning we've been talking about how Carlyle's continued to evolve and grow across the firm. As part of my job as a chief operating officer, is actually to create an operating model that allows our businesses to scale and to build. AI is a core part of our operating model. Today I'm here with two of my colleagues to actually talk about how we're putting AI in the works of everybody's hands across the firm, and actually, how we're using it to scale our business. Here I have Lúcia Soares, who is our Chief Information Officer and Head of Transformation, and Matt Anderson, who is our Chief Digital Officer and Head of Data Science. With that, we're just going to get started. Lúcia, can you walk us through Carlyle's AI journey? Yes. Our journey with AI started years before the AI hype infused every boardroom. Six years ago, our data science team, led by Matt, posited that machine learning could actually help us drive superior investment outcomes, and they started seeing some early results even before foundational models came onto the scene. In 2023, when generative AI became big news, we immediately recognized that democratizing this AI across the firm would have transformational power. As a result of that, we decided to lean in early and very quickly. We were the first private markets asset management firm to deploy ChatGPT Enterprise for our employees. We didn't just deploy one tool, we deployed multiple tools, because the size of our firm actually allows us to be more nimble and agile versus larger enterprises. We can play around with more things. We achieved 90% adoption in 9 months with these tools at employees' hands. They started to experiment with them, put them into their everyday work, and we saw recently an increase of about 213% usage of these tools. The breadth and the depth of what we're doing is really transformational for how our employees are engaged. It's important to think about, you know, these numbers, but really, what we're seeing is that AI is being embedded into the DNA of the firm, and it's transforming how people work, and because of that, our people are working alongside our engineers, developing AI solutions with us. We have more than 50 AI solutions today deployed across the firm. 65% of our technology investments are focused at the tip of the spear, transforming how our deal teams and how our sales teams are operating. We're also scaling our engineering platform. We grew our generative AI talent by 180% since 2023, and we also have deployed, since April, 10 million lines of code into our environment, leveraging AI, which we would not have been able to do pre-AI, period. More recently, one of our LLM providers indicated to us that we're in the top percentile of token usage, which means that we're actually leaning in, meaningfully developing solutions in our organization. Carlyle was really made for this moment. We saw the opportunity early, we leaned in, and we were able to execute with AI embedded across the firm. Clearly, we were fast and we were early, but AI is only as good as the data that drives it. Matt, can you talk a little bit about how data at Carlyle, and does it give us a little bit of a competitive edge? Yeah, you know, we quietly entered the AI space about six years ago. For actually many years before that, you know, five years, 10 years before that, we'd actually been accumulating the data into a database, so it was structured and organized from all of our investing. There had been a lot of work that went on really before even I arrived here, and, you know, I think we've really emerged as a force. The reason for that is because Carlyle has a huge and rich history of investing and the data around that, and we've been capturing that data, right? Sometimes. Long, long ago, before the computers, it's been in notebooks, but really, you know, PDFs and other kinds of things. We've taken a very concerted effort to extract all that information out of what we call unstructured information, and put it in a database where it's structured. Now, if you look at our statistics, when I arrived in 2020, we had. It was about 72 terabytes of data, and it covered about 11,000 companies at the time. Over the last five, six years, so as of basically last month, we've grown that, you know, almost 800%. It's around 790%, about 200% a year. If you, if you want to figure out, like, how much we've been adding, we've added the equivalent of 10 petabytes per year. Harvey Schwartz asked me yesterday, "What is a petabyte?" I'll tell you what a petabyte is: 10 petabytes is basically equal to 100,000 4K high-definition movies, or if you were just to divide that by our employee count, it basically means we have hundreds of hours of movies per employee. It's really a lot of data about what we've been doing and how we've been working, and that kind of thing. Now our data set is actually 62,770 terabytes or 62 petabytes, when you think about what that means, it means that we effectively have unstructured, structured information, context around where companies are, employees, technology. We really understand a lot of the ecosystem around the company, and then we have some very highly proprietary data. About 30,000 companies, you heard John refer to it yesterday or sorry, earlier today, and that corresponds to about 11 million data points. Why does all this matter? It all matters because one day, all of these great foundational models are all going to converge around basically the same capability. They're all going to be able to do something very similar to each other, and what's going to matter is how your data unlocks incremental insights in the middle of a deal process, and that's what we've really been working on unleashing. Our data is all organized, it's stored. We have it in Snowflake and Databricks, a whole host of different solutions, and that means that we can sort of bring that data to our investors in days when we get new datasets or new models. We've really been working on our agility around that data, because it's going to be the source of differentiation in our industry, and we have one of the largest datasets that I know of in this industry. Okay. Well, clearly, we've led when it comes to adoption and scale and organizing our data. How do we actually measure the value AI is creating and delivering into the firm? Yeah, early on, you know, experimentation is key. Moving fast, we don't get tied down by bureaucracy, because we already had hypotheses of where we could drive value with AI, we created a framework early on to measure that value. What that means is you have accountable owners, you have targeted ROI for the different initiatives, and then you measure the value of those initiatives. As an example, we defined a BHAG, a Big Hairy Audacious Goal for ourselves. We said in three years we want to drive a certain level of soft hard cost savings across the firm with the use of AI. We're about a third of the way into that journey. We've already achieved 30% of our value realization target, with line of sight to get to the end. That translates into roughly 217,000 hours of gained productivity already that is infused in the front office, in the back office, in the middle office, of everything that we're doing. That being said, we're not here to just use AI to automate the same processes we have today, because that would kind of be a waste of time. We're here to look at how we reinvent how we work, how we change the fabric, the DNA of the firm, with a competitive advantage using AI. Let me give you an example of what that looks like. Earlier today, you heard Mark Jenkins talk about our Asset-Backed Finance business and how it's growing very quickly. It's an important area for us. Well, our deal analysts in that area in the past, they would have a very manual process to do deal screening and deal modeling. It would involve lots of spreadsheets, lots of time, and lots of complexity and calculations. We decided to reimagine that process using AI. Using AI, our solution that we custom-built basically ingests and analyzes more than 100,000 loans per tape. It builds hundreds of rep lines across multiple dimensions, and it performs interactive loan stratification. That's really cool. You can do that with generative AI. As we know, generative AI is not always 100% accurate and quantitative. Taking that base model, we then built proprietary Python code where we can drive accuracy, and then our solution delivers results across the full loan pool at each rep line in seconds, and it calculates millions of cash flow statements. Our deal teams get the projected IRR, projected MOIC, and other outputs. This speed, of course, is transformational because we've taken something that the deal teams were doing one days to two days, and now they can do it in 15 minutes. Besides it being faster, we've transformed the actual process. We've strengthened our underwriting accuracy, and we have built more deal velocity, making us more competitive. Having all of that data now in one cloud repository with AI on top of it, we can use it after the transaction and to build better models for the future. We're doing these solutions across multiple of our segments in private equity and in AlpInvest as well. Maybe I can jump in and sort of take a real-life example. When we talk about all this data being in our AI platform, this is not like experimentation. We certainly have things in proof of concept in pilot mode, but we've done hundreds of these diligences in private equity since 2024, and 3,700, you know, what I would call light screens of companies, you know, since that date. One of my favorite stories is there's a healthcare company. It basically is a contract manufacturer, so they put out, you know, raw materials into medical devices. The deal team was looking at the deal and said: "Hey, we noticed the revenue is slowing down a little bit. We wonder if that's from demand pull forward or destocking, or maybe there's something, you know, structural inside the company that's a little weak. They asked us to help take a look at it with our AI platform. Our AI platform ingested thousands of documents, databases, Excel files, and in basically 2 days-3 days, it had found another set of data sources that are industry specific. This is true, right? Every time you do a diligence, you're interested in companies in general, but you're also interested in what are the datasets that say what they're doing. For instance, a hospital's nowhere near like a biotech company, right? They're two totally different datasets. Our actual platform grabs those datasets, connects it into the core dataset, and links it in real time. What we're able then to do is to gain much more incremental insight. This case, we found a dataset around the FDA, sort of certification, type one, two, three, that you get when your medical device is granted its ability to sell to consumers. Ultimately, the AI platform went, and it took the SKU file. If you've ever seen a SKU file, they're just complete gibberish. You know, it's 20 lines of A's and B's, and 1s and 2s. You can't really understand it. It was able to actually tag that to the description, go back to that dataset, so we're talking multi-hop connections in real time across the datasets, and figure out that what had been going on at the company was that their material was going into more and more what's called a Type 1 certification, which is the least protected by the FDA. You can substitute for that more easily, versus Type 3, where they had traditionally been. Those are things like pacemakers, kind of mission critical. You know, were kind of the core bread and butter. What's really interesting about this is, we actually had consultants working on this with us, 'cause, you know, we use them occasionally for our diligence. They were able to look at the top 10 customers, and when you looked at that revenue, the revenue looked relatively stable. Our AI platform went and looked at every single customer, every single SKU, every single sale, every single day, and it calculated sort of that the revenue had in fact been declining in the middle, in the long tail of that business. The reason was because that part of the business had weakened its position around those FDA certifications. This kind of insight, it would take months, if not years, in order to get that kind of insight out with the types of datasets we're talking about. We generated that in three days, we iterated on it once or twice with the deal team. It's an incredible competitive advantage. It's a real flywheel. Yeah, I mean, the work that's been going on internally has been pretty amazing, and that's what we've been focusing on right now. I want to actually just broaden the lens a little bit and talk about how we're actually adding value across our portfolio. Lucy, you want to start? Yes, across our portfolio, we drive AI value creation with the same aggressiveness and passion that we do inside. Our deal teams work with our global portfolio solutions teams, and they look at the portfolio companies in three ways: They look at AI risk and exposure. How can AI change this industry or this market in the next 3 years-5 years? The other side of the coin is, what are the AI opportunities? How can AI drive more strategic opportunities for the company? Finally, we look at AI readiness and capabilities. Does the company have the right talent and the right resources to prioritize against the actions that they need to take? Sometimes, by the way, we use AI to help to deliver some of these value creation plans. As an example, one of our AI tools helped to unearth new acquisition targets for our highly acquisitive portfolio companies. At the end of the day, you know, we have these models in place, and then we offer our portfolio companies two channels to accelerate AI value creation. The first channel is our strategic partnerships around technology and AI that we offer our portfolio companies. We've built this platform over eight years of over 60 enterprise AI-native companies that we have partnerships with for preferred pricing, for access to strategic talent, and we have leaned in early to build deep relationships that allow our portfolio companies to work with these companies with the same Carlyle AUM power and leverage. The second channel that we offer our portfolio companies is access to AI leadership forums. We have over 200 technology portfolio leaders across our business, and we offer multiple webinars on different topics. As you know, technology, cybersecurity, AI, these are all interrelated topics. It's important for leaders to learn from each other what's happening, to share best practices. One example that we did last year was we launched AI Innovation Day. We had more than 300 people attend AI Innovation Day, including CEOs from our portfolio companies. We curated some AI startups, and we got to listen to their stories, how they're approaching disruptive business models, and it gave our portfolio companies ideas about the art of the possible with how this is happening. Across our portfolio, we're seeing AI value creation materialize. We're seeing, for example, profitability gains driven by AI-powered pricing. In one company, we've seen that AI has helped to drive a double-digit EBITDA increase for that company. We're also seeing productivity gains, that productivity gains are not just manual work hours saved. Productivity gains are translating into higher customer satisfaction, into better products that our companies are delivering, with higher accuracy and better quality. The overall theme that we're seeing is that when a company leans into AI, it unlocks new product ideas, and it releases more competitive energy inside of the market. I'll say also, what was true is still true today, meaning the way we approached value creation with our portfolio companies is to look at putting the right executive leadership team in place, driving disciplined execution, and making sure our companies have the ability to embrace innovation. Those three things are true, whether it's a digital transformation, a cloud transformation, an AI transformation, that's where we're really focused on driving value in our portfolio companies. Well, clearly, our portfolio companies are using innovation to create value, just to reiterate your point, because I think it's critically important. We take that same lens, but we actually turn it internally, Matt, how are we actually embedding AI within our investment teams to enhance performance and returns? You know, I think one of our real advantages, Harvey says this a lot, is that we can make our firm very small in the sense that we can work really closely with each other in a very agile and nimble way. I can't tell you the number of times Harvey or Lindsay connect me with a business leader, and I have a team of specialists I can embed in a business, right, to solve a problem. We actually, inside of AlpInvest, Carlyle AlpInvest, we embedded about four or five of our team. These are AI engineers, LLM engineers, data scientists, that, you know, really the gamut of how you deliver solution. We co-created, we envisioned a tool that would really unleash something new inside of the business, because it had a massive growing TAM. You heard John share that a little earlier. You know, this is a market that if you could, you know, get a bigger net, you could catch more fish, is the idea, right? You know, as we, as we sort of stepped back, we said, "Okay, we need our people to be able to do more," because a human capital business, it's hard to produce more and more humans of quality every single year. You can, right? Ultimately, that's an apprenticeship model, and this market is scaling really quickly, so we needed to bend our leverage curve, right? We needed to bend the leverage of our people. What we developed was a platform that could ingest, locate in structured databases, build automatically LBOs for hundreds of companies at a time, roll those up, and put a valuation. What that lets our very talented investors do is not do any of that work. That is very manual. It's usually done in spreadsheets. Instead, what they now do is they spend their time running scenarios, running sensitivities, thinking about Monte Carlos, having discussions with IC that are very robust, 'cause on the fly, they can basically say, "What if this one variable changes?" See the impact to that underlying investment. It's a real capability now that AlpInvest has been leveraging. Through a lot of the operational work they've done, the strategic work they've done, and this platform sort of working hand in hand, again, this idea that we can make ourselves very nimble, you know, that business has doubled its deployments, not just on an overall basis, but, in the secondary space, but actually, per head count. There's a real gain here right now in our ability to evaluate more opportunities. Great. One last question, and sort of a lightning round, so for both of you, so in 1 minute or less, AI is gonna continue to evolve, and our industry is gonna continue to evolve with it. What do we actually think when it comes to why are we positioned not only to adapt, but to win? I think we're positioned to win because we've combined early conviction with operational excellence. We've been able to scale quickly across the firm, and we've matched that speed, by the way, with strong governance, with cybersecurity, and data privacy and compliance, which are really critical to ensure we can use these solutions with trust and confidence. We also have the strategic access to the partners, as we mentioned earlier, that has given us early insights around the AI corner, and because of that, we're more nimble and agile than people who started after us. Finally, I think that's really important, that AI's become a talent magnet for us. We're getting innovative employees wanting to work at Carlyle, coming to Carlyle because they're seeing that they can innovate meaningfully and drive superior customer results. ... part of the reason that we get a lot of really innovative AI employees is because we've been very well positioned from the very beginning with some of the most important foundational model players. I won't tutor at home, but if you wanna go watch DevDays for some of these people, you'll see some of our work and our name featured in there. That lets us see around the corner, it lets us build a reputation in the market around talent. When you can see around the corner, you can do some really important work. What I mean by that is this: in AI, there's a lot of people talking about, "Hey, I use AI to write an IC memo," or, "I use it to drive efficiencies." Our industry definitely needs to adopt more technology to become more efficient, but that isn't core to what we do. What we do fundamentally is we invest, right? We need to use our capabilities in AI to invest better, to pick better investments, to manage those better, and to make our people be able to do more faster, because we have this growing market. When you step back and you say, "Well, how are we gonna have enduring advantage?" It's really that we're, number one, we see what's coming, we can focus on the areas that are really gonna matter, and we're right now not just trying to pick out efficiency. We're definitely doing that work, but we're trying to make our investors better by being able to handle these amounts of big data, and not just external data, but we talked about it before, if you wanna win in AI, you have to have a large data set. It's that simple. If you woke up, you know, four years or five years ago when GPT started to come out, and you said, "Oh, wow, we should start capturing our data," that's water under the bridge, you can't go back and get it, right? We've been capturing it, structuring it. It's not, like, theoretical, it's in structured environments that we can turn on, basically present to an investor in a matter of days. That kind of capability is the agility. What it means is this, Lindsay: if an investor has more time to look at more deals, it spits off more data. More data gives you a better perspective on the deals, and vice versa. That's a flywheel. It's a real advantage, right? The faster you go, the more and more you start to pull away. Well, I appreciate everybody's insights here. I know it's a lot of content, I'll leave you with three sort of core messages that we'd love for you to take away with. One is, we moved early and we moved fast, which is rare in this industry, especially when it comes to tech adoption. Two, we're cutting through the hype, and we're focusing on real value for the firm and for our stakeholders. Three, we've unlocked a differentiated data set that gives us a level of precision that is hard to replicate. Data is our scaled advantage. Thank you. Appreciate everybody's time today. Please welcome the High-Conviction Opportunities Panel. Nice work. Good morning, everyone. I'm Meg Starr, Chief People Officer at Carlyle. My job is about talent, identifying it, developing it, and putting it behind our highest conviction opportunities. As Harvey said, our strategy is only as good as the teams that are executing it. Today, we're profiling four high-conviction businesses across Carlyle. This is not the full list, but these are really important examples of where we see structural growth, differentiated access, and a real right to win advantage. Each of these leaders oversees high-performing teams that are operating in markets that we think are compelling today and far into the future. We're gonna explore why these markets matter, how Carlyle is positioned to capitalize on these opportunities, and what makes each of these leaders so confident in the forward trajectory. Let's dive in. We're gonna start with asset-backed finance, go to liquidity solutions, aerospace and defense, and the belle of the ball, global wealth, to close us out. First, Akhil Bansal, Head of Asset-Backed Finance for Carlyle. Akhil, asset-backed finance is one of the most attractive areas in private markets right now. What do you think the structural reasons are for that growth, and what makes us well-positioned in that market? Yeah, absolutely. When many people talk about the structural growth in asset-backed finance, they tend to focus on the accounting, regulatory, capital frameworks that are driving a lot of this real economy lending into the private markets, that's certainly important, but we think there's actually a more fundamental driver, frankly, all of you in the room are driving it, which is your love for capital-light, recurring revenue businesses. When you look into the public markets when you see what businesses get the highest multiples, it's those capital-light, recurring revenue businesses. What we see is banks, finance companies, corporates, they're looking to reduce their capital intensity, they're looking to bring up their return on equity. They're doing that by partnering with players like Carlyle to buy their loans, to buy their assets, but where they can still constrain control of their business, retain control of their customers, and still drive growth. We think that dynamic is structural. It is beyond regulatory or accounting, and as long as the public markets continue valuing and rewarding businesses that are capital light and that have the recurring revenue, this phenomenon will continue. The second element of it is what's happening on the capital side. We are increasingly seeing investors wanting to diversify away from their leverage lending exposures and complement those exposures with real economy exposures. When you look at what we're doing in asset-backed finance, we're financing the consumption of goods and services, that's an exposure many investors are underweight in. We're seeing that be the other durable driver in the growth of private Asset-Backed Finance. I can feel the high conviction, Akhil. You've built a really interesting platform. What about the platform is differentiated? How does that set up your right to win? Yeah, I really think that comes across, you know, four dimensions. First is that we have an agile, nimble, flexible investment strategy. We invest up and down the capital structure, we invest across asset classes, we invest across duration spectrums. The idea is that by having such a flexible investment strategy, we can find the areas with the best risk-adjusted returns, but importantly, we can find the areas where Carlyle has a competitive advantage because of its multi-asset platform and its global reach, and those are the areas where we have a right to win. Second is our balanced origination model. I think you've seen some market participants who have decided to focus solely on owning origination platforms. You've seen others who have gone and said, "I really wanna just be partners." We think the right answer for Carlyle is a balanced model. Take stakes in origination platforms where there's a moat around them, there's a scalable, durable, competitive advantage, where others can't come in. In other areas, partner with folks, where Carlyle's platform can add value, where we can bring value beyond capital, which brings me to my third point, which is bringing that value beyond capital. You know, money is a commodity, and as ABF gets more competitive, what we look to bring to our companies is not only being a capital provider, but being a strategic partner, by helping them with their growth initiatives, their capital structures, capital markets expertise. By bringing a value proposition beyond capital, we believe we're bringing a more durable relationship, a stickier relationship, while not necessarily having to own the platform, and we think that balanced approach allows us to best attack the market. The final thing that I talk about is our diversifying our capital base. You know, insurance has certainly been an important part of our asset-backed finance platform, and will continue to be. Increasingly, what we're doing and investing in is diversifying into other non-insurance institutional investors. Very sticky capital still, trying to attack other areas where we think a more diversified share capital base allows our strategy, once and our platform to have more durability, by not being relying on one customer segment, but by having a diverse client base. We're in a room of public market investors and analysts, so let's talk about what's most relevant. How do you see ABF contributing to Carlyle's long-term earnings growth? I think there's a couple of elements to that. I think it first starts with a multidimensional revenue model. You know, as we scale our insurance mandates, our SMAs, and funds, we are definitely gonna be generating recurring management fee revenue streams. In addition to that, when we're doing ABF deals, we're bringing our capital markets capabilities. Many of those deals require financing, and we're arranging that financing ourselves and partnering with Jeff Nedelman's team and the distribution network he's created. We are now distributing those financings directly to investors, which has a flywheel effect. They get co-invest, they get access directly from Carlyle, which helps feed back into the driving of insurance as mandates and SMA and fund capital. I think the second big driver is that ABF investing is not transactional, it's programmatic. When we do a transaction with a finance company or bank, that can lead to multiple repeat transactions that stack upon one another. We are not chasing one-off transactions, so what that means from a resourcing perspective is that we think this business has the potential to generate really attractive margins, because that origination, once again, is not one-off transactions, it's repeatable, programmatic deal flow. That's why we're excited that with that scale that we have, with the multidimensional revenue model, the stack origination, we can build a very accretive business for Carlyle. Amazing. Thank you, Akhil. All right, Mike Hacker, over to you, Global Head of Portfolio Finance for Carlyle AlpInvest. As John mentioned, AlpInvest has an incredible secondaries business. We're known for it, but we also have a much more diversified business. You look after a segment called portfolio finance. Yep. Can we start with the basics? Like, what is portfolio finance? What does that market look like? Why are we excited about it? Everyone doesn't know that already? Portfolio finance, I think the easiest way to think about it's really the credit side of our secondaries business. You can think of that in two different parts. One is thinking about that as lending to the private equity market. Everything we're doing in secondaries, where we're buying assets from LPs and from GPs, well, think about that on the credit side. We're lending to LPs, we're lending to GPs, we're lending to funds, so things like NAV lending to funds, that's a big part of that. Actually, the part that I think is really sort of unknown is really lending to LPs. This is a part of the market that we've really been pioneering in the last few years. There's huge amounts of growth. We'll talk about that in just a minute. You know, if you think about the other side of portfolio finance or credit secondaries, in some ways, that's kind of buried in the name. That market has really achieved scale. I think it's gotten a lot of attention, especially with the continuous talk about what's going on in private credit more generally. We hope that credit secondaries will be part of the solution there. We've had a lot of activity in the last few years. That market's really achieved scale, think about $20 billion of activity in 2025. That's up from less than $10 billion two years ago, so that market's sort of doubling every year, and we think there's sort of one way for that market to reach something like $80 billion by the end of the decade. You know, 4x opportunity for growth there. You know, if you think about, you know, what that is, you know, it's really building out a business that, in some ways, we think we can scale to be as large as where the secondaries business is today. If you think about it, there's a whole opportunity to continue to grow that business in real scale, and really complement what we're doing on the traditional equity side. Amazing. pretty tremendous upside to the current opportunity? Yeah. Liquidity has been a big focus in private markets recently, particularly noise around exits, which Carlyle has been a notable outlier to. Yeah. Growth in AlpInvest secondaries and portfolio businesses really has predated that. Yeah. Do you see this as more of a cyclical moment? Yeah. is this more of a secular shift in terms of what types of solutions- Yeah ... private markets need? Look, we've been through, and I've been doing secondaries for over 20 years now, and we've been through multiple cycles. What I think is interesting is that, you know, and there certainly is an element of cyclicality to what's going on today. What's very interesting when you look at the secondaries market, each time there's been a cycle, when that cycle turns and recedes, the market stays larger than it was before the cycle. What you're finding is that a couple things are happening. Each time there's a cycle, we in the secondaries and portfolio finance world, we're innovating. What we're trying to do is find interesting transactions that solve the problems of our counterparties, be they LPs or GPs. If you go back to how we defined secondaries when I first started in the business, it was a very niche sort of liquidity for LPs, buying LP interests. It was really a small market, and not used broadly. I think as you sort of saw the GFC and Brexit and COVID, and obviously, whatever you know, the cycle that we've been in the last few years, you know, each time you've gone through one of those cycles, you know, we've innovated, and that's, you know, first thinking about the continuation fund market, which is now really, you know, representing 10%-15% of exits in private equity- Wow ... as an asset class, right? That's a massive, you know, part of what's going on in the private equity ecosystem. That's not cyclical, that's structural. What we're really doing, and John touched on it in his talk, you know, we're hitting the private equity firm and the private equity fund at every point along its life cycle. What we've really been thinking about is, think about the traditional private equity fund structure, in some ways, very inefficient for what private equity is today. What we've been doing, whether it's lending to funds, buying assets, buying LP interests, what we're trying to do is create liquidity in a market that fundamentally wasn't. I think the answer is, it's structural. You know, I think what's also though interesting is, you know, we talked about credit for just a minute. You know, if you think about one of the reasons why we're building portfolio finance and credit secondaries, is we want the business to be more diversified. We right now are clicking on every cylinder. LP market's very active, the GP market's very active. Mm-hmm. You know, we wanna have, you know, we wanna have more diverse sort of parts of the market so that, you know, we're not under any illusion that all things will always be operating at full speed. For our business, you know, we think that, you know, we're very well-positioned. You know, the AlpInvest's platform and, and how the different parts of the business together, huge competitive moats. We talked about that earlier today. What we're really trying to do is make sure that we're a leader in each one of the segments. Yeah ... you know, we'll be ready for whatever cycles we do face. It gets back to those points of durable and diversified and providing solutions across there. Yeah. Amazing, Mike. Brian Bernasek, Co-Head of Americas Corporate Private Equity, 25-year Carlyle veteran, and Head of our Washington, D.C. office. Brian, I wanna talk about aerospace and defense. One of the core power alleys for Carlyle has been since the very beginning. Can you talk to us, how does that sector fit into our corporate private equity business? Given the massive amount of geopolitical turbulence in the world, how do you see the go-forward market opportunity? Sure. No, happy to do that, and very grateful to be here with everyone. You know, this is our aerospace defense practice is core to our overall practice, our private equity practice. It fits firmly into the power alley theme that's been mentioned a couple of times in the presentation today. We have other key power alleys as well. All of them share a few characteristics. Key among them is that we're gonna have a unique edge and angle in how we approach a segment and an opportunity, and we certainly have that in aerospace and defense. We take that edge, that angle, and we're assessing every opportunity to say, "Hey, is this a business that's unique, that's special, that we know it's special because of our edge? Is there something that we can do to drive value in this company that's unique and special? Are we able to attract world-class management teams because of those capabilities?" As I said, we have it in spades in aerospace and defense. It's been articulated very well early in the conversation, and I think very well publicized, you know, massive spending trends heading towards the defense industry. Around $1 trillion in the U.S. on the spend, on the budget, expectations that it could go to $1.5 trillion. Even $1 trillion is an awful lot of money to spend. You see it in the in Europe, where 3.5% GDP targets on spend, and as Harvey mentioned earlier, there isn't a country in the world that's not thinking about national security. Really massive trends. Underneath that, importantly, there's a real push towards innovation and modernization within this spend, where if you're well-positioned, you can really benefit from that as well. Look, we shouldn't lose sight of aerospace. It's a very interesting area for our team. Very strong team focus in that area as well. Passenger miles, as you all know well, continue to increase year-over-year. Big aftermarket opportunity, big OE opportunity, big supply opportunity. Lots to do in this sector. When I look at the team that we have and our position that we have, I mean, I'm just thrilled with what we've got. We have a fantastic unit that's been doing this for a long time. As has been mentioned earlier, 40 years of investing in the sector. It was the beginnings of the firm in many ways, in Washington. That team that we have leading that group today has over 125 years of collective service and focus on the A&D effort. They've invested in 40 different companies and over 100 different deals and platforms. Deals beget deals, opportunities beget opportunities. You know, we have great relationships with CEOs, with advisors, with folks in town, that you make it unique for us. I can't tell you how many government services and defense businesses are located between our offices on 10th and Pennsylvania in Washington and Dulles Airport. There are a lot. Mm-hmm. It's a really good target-rich opportunity for the team. They do a great job in finding those opportunities, no question. They're also able to leverage, you know, huge firm resources, right? We have David Rubenstein, who I would argue is the most well-connected person in the world. I'd love to see somebody more connected than David. You have the Admiral Stavridis, who was the Supreme Allied Commander in NATO. You know, a really powerful man, and in many ways, very well-networked, helps us tremendously. Great government affairs team. I mentioned those board members, those CEOs, that connectivity in town, it is differentiating in our practice. We seek that in every business that we have, every power alley that we have. This one, you know, we're really bullish on going forward. ... team also has some wild security clearances, too. Yes, yes. Our business is really well-positioned for the current moment and clearly far into the future. Can you just give us a couple of examples of what are the types of investments that we're really interested in at this moment in time? Sure, sure. you know, the nice thing about our practice is we're able to punch in the middle market, we're able to punch in large scale, we can punch in defense, we can punch in aerospace. It's a broad swath of opportunities. I'll mention a couple of deals that we've done that might give you a sense of the kind of opportunities that we've seen and what we expect to see going forward. Two Six Technologies is a good example. This is a cyber tools business that plays right in the center of national security. We bought that in 2020, had about $10 million of EBITDA after seven acquisitions, really good organic growth. We're pushing 80+, so we can play that middle market and grow, buy, and build. That will be a very interesting asset for strategics or for a public offering at some point. StandardAero has been mentioned previously, very well-known business for sure. This is an aerospace company that's in the MRO side of the equation, so they're repairing aircraft engines. We bought this in 2019. Interestingly, I think this highlights as much as anything... Well, the sector is one we really like, but we're going to load up and really help businesses to grow, regardless of what's happening on the outside. You can imagine, we bought in 2019, they or they repair aircraft engines. COVID comes through, not a lot of folks are flying. We were managing that business in a tough environment. The team did a great job on managing efficiencies, got a bunch of new contracts that had long lead times, did a bunch of acquisitions as well, seven acquisitions in this business as well. It was $350 million of EBITDA in the depths of COVID, and it's well over $800 million today. As you all know, it's a public company, trading very well. It's a very nice win for both our, both of Fund VII investors there. Very successful IPO. Congrats, Brian, and the team. Thanks, Meg. Shane Clifford, to close it out. Shane, Head of Global Wealth for Carlyle, you have the privilege of looking after a business that actually enables access to all of these high conviction areas to our wealth clients. You know, there's been a lot of emphasis today on global wealth being a major driver of growth going forward for Carlyle. It's a competitive landscape, what is the Carlyle advantage, and how does that translate to where you see our right to win in the wealth space? Yeah. I think broadly, first of all, hopefully, you got a sense here from the excitement of this panel, and really for the folks on the webcast and here in the room, you know, from the analysts on up to the C-suite, there's a lot of excitement and energy right now at Carlyle. When I think about why that is the case, it really is because of the expansion and growth journey that we're on right now. It's really a fun place. I don't know that that always comes across when you're up on a stage, but it's an incredibly fun place to work right now. It's hard yards at times, but ton of excitement, ton of fun because we're growing, and there's a lot of great talent that wants to come work with us. From my seat, I was thinking a little about what Harvey and Jeff had said about where the puck is going. I think from my seat today, the puck is wealth. And what I mean by that is really, you know, the opportunity for us just grows exponentially year-over-year. Why do people want to come work with Carlyle in the wealth space? I think it's straightforward. I think at the moment, particularly, it's the institutional rigor of Carlyle. It's around things like our risk management, our liquidity management. It's what we do there in a very durable manner, that institutional LPs have had access to for many, many years. Finally, we're offering that to our wealth clients and their advisors here at the firm. That DNA is something that globally our distribution partners want from us these days. Secondly, it was a comment that Harvey made earlier in his presentation around that concept of global and local. I will tell you that wealth is a relationship business. No doubt about it. It is hand-to-hand combat, and it is all about the day-to-day wholesaling of the business and telling people the story of Carlyle. That is a local effort. I would say from my seat right now, it's having the local trust with the global platform is something that's very unique to Carlyle, and I think sets us apart from many of our peers. Then thirdly, when I look at it from my seat, we've got to be vehicle agnostic and really focused on solutions, right? The first question that always comes up when we're thinking about a new idea is, what does that solve for in the client's portfolio? Is that something that they actually need? That solutions-based thought process is where we start every conversation. When I think about what we've got up on this panel today, these are all great investment solutions, but are they appropriate in the wealth channel, and do they solve for something for our end clients, right? Those are all the component parts broadly that kind of get us to the outcome that we need. I would say we're going to be disciplined, we're going to scale in a very durable manner and ultimately do this over multiple investment cycles. This is a multi-year trending cycle that we're on, and we're quite excited about it. I think that brand point is an important one. We talk a lot about the Carlyle brand and why is it so important. I think the wealth market is the key example. Our brand is one of the most widely recognized in private markets, and when people know our brand, they associate it with a trusted partner, a safe pair of hands, well-connected performance. That's a huge advantage when we think about going in the door and talking about our wealth products. I think that's the kind of full circle of why that brand matters so much. I want to go back to Jeff Nedelman when he was talking about our distribution business, our client business, he had that great slide of all the Carlyle strategies that are in the market in the next three years. We obviously have a very broad platform. How do you decide which strategies are appropriate to bring into the wealth market, and how do you think about adding new strategies and doing it in a responsible, scaled way? Yeah, I think Jeff brought up a great point, when he said, you know, we're not looking to push a product. That's not the business we're in. The great news for us today is we really have a deep breadth of investment capabilities that really allow us to talk about portfolio construction when we're with our wealth partners. What does that mean for me in my seat? That means that I have the opportunity to get out in front of folks and discuss that investment solution, and then come back inside and see what capabilities do we have in-house that can match that. For example, on this panel, here are three great examples, whether it be ABF, portfolio finance, defense, and aerospace, and in the industrials. Really, when I said earlier that I'm vehicle-agnostic, what do I mean by that? Well, maybe we do an interval fund with Akil. Maybe we're doing an LTIF structure in a ICAV vehicle for what we do at Michael Hacker on the portfolio finance side. By the way, perhaps it's a drawdown vehicle for our defense fund, potentially, right? These are all things that you're kind of thinking about in real time, because at the end of the day, we've got to be very thoughtful and careful. We're sometimes, I think, a fast follower in this space, and I'm okay with that, because ultimately, we're going to play the long game, and we're going to be very thoughtful, and we're going to sequence out how we do these things. I do think today, as a firm, we've done a great job of putting our flagship funds in place, and now I think it's about what do we add along what is additive to our wealth clients in addition to those capabilities? I think CAPS was a great example in 2025 of that. Great. The money question, Shane. Yeah. As Carlyle continues to build a scaled, high-conviction investment platform, how does the expansion of global wealth contribute to that growth? Just how significant do you think it can be over time? Yeah. You know, at times, I looked at the numbers earlier, and they actually excite me because I think they're quite achievable for us as a firm. One, because one data is the banking platform, and let me just use that in a very generic way for you, right? That is globally working with a wirehouse IBD or RIA in the U.S., or it's working with a global bank across Europe, the Middle East and Asia, or perhaps it's a regional or country-specific banking platform. We're in that business today, and we're damn good at that business. Quite frankly, we're still only in the second or third inning of that. From my seat, we still have significant scaling there to do. Now, we've got retirement coming here. We'll see how it plays out, and it's going to be very interesting to see kind of how it evolves over the next two, three years, but that's going to be a new lane for us as well. I actually think the opportunity only grows from here. What we define as wealth today, that umbrella has kind of the banking channel in it right now. Retirement's going to show up, and we'll see what happens with insurance ultimately as well, question mark. I suspect first or second inning here, tremendous growth for us going forward. I just think we need to be thoughtful about how we do it and not get ahead of ourselves, and really make sure that we keep the client at the center of everything we're doing. As long as we do that, as a firm, we're always going to be okay, coupled with the great investment performance that I know these guys are going to deliver. Perfect. Thank you, Shane. Thank you to our panelists, and with that, we will turn it over to our CFO, Justin Plouffe. Please welcome Justin Plouffe. Morning, everyone. I'm Justin Plouffe, I'm the CFO. What I want to do is take everything you've heard today and tie it together into a comprehensive vision of our financial goals for the next three years. I want to do that first by talking about the tremendous momentum that we have as a firm coming out of 2025. I want to talk about how we position the firm today and how that's going to lead to growth in the future, and then exactly how we're going to unlock shareholder value over the next three years. We'll start with the momentum. We've got fantastic top-line momentum. We grew our fee revenues by 10% last year, and we grew them really with every part of the fee revenue mix. Our management fees grew, especially in global credit, they grew 9%, in AlpInvest, they grew 37%. Our transaction fees grew. A lot of that is coming out of global private equity. All of that great transaction volume John spoke about, when we buy a company, when we refinance a company, when we IPO a company, those are all opportunities for us to generate transaction fees. Those have nearly tripled over the last couple of years. Our fee-related performance revenue, our incentive fees, those are growing. That's largely due to our increased presence in the wealth space. Tremendous momentum here on the top line, and that's driving our FRE growth. As Harvey hit right up front, we've grown FRE at a 20% CAGR over the last three years. While we've grown our CAGR, we've also been able to grow the margin. We've gone up 1,000 basis points in margin. This is from operating discipline, but it's also because we have scalable strategies where we can take in capital without adding significantly more costs. It's also due to the fact that we realigned our compensation system a couple of years ago, which has had tremendous benefits. Our FRE is also becoming more diversified. Three years ago, only 34% of our FRE came from global credit and AlpInvest, and today it's 55%. This top-line growth down to FRE is what's driving our DE growth. We've gone up 24% since 2023. We're now over $4 a share in DE. Three years ago, about 50% of that DE came from top line, came down through FRE. Now it's 70%. Our DE is even more repeatable. Finally, I think something that's a little bit overlooked about how we've done over the past few years is that our balance sheet has now become a real source of strength. We've got a fantastic amount of liquidity and flexibility in our balance sheet. $2 billion of cash versus just $2.6 billion of debt. We've got over $3 billion of investments, and mostly what those investments are things that are helping to fuel the growth of our business. For example, our private equity wealth product, CPEP, we warehouse investments for that, so that as we raise capital, can immediately be deployed. We've got $2.9 billion of net accrued performance revenues, excuse me, that will flow through the balance sheet over the next three years-four years. That's tremendous amount of value that will eventually come through DE for shareholders. If you add all of that up, just the balance sheet is worth $15 per share of value to our investors. We're in an incredibly strong position. Harvey showed this slide before, but I'll show it again because it's so important. Record FRE, record FRE margin, record AUM, Global Wealth, Carlyle, AlpInvest, and Credit. We had our third best year in inflows last year, leading realization activity. It's not on the slide, we actually had our best ever year of deployment last year, with over $54 billion across the firm. Really, every part of our business is working incredibly well as we head into this three-year period. All right, why do we believe that we're positioned for growth? We've built an incredibly diversified and durable business. If you look at all those strategies at the top, we are diversified by geography, by asset class, and by channel that we're raising money in. We have many paths to success. We're not tied to just one fund or one channel, right? We have many different ways that we can raise capital and deploy capital across the firm. I'm really excited that Global Wealth now actually has a product in every segment that's open. I had the good fortune to be part of the team that built our CTAC product, and when we did that was the only product we had for private wealth. It was a credit product, and it was in that channel. Now, we have CPEP and private equity. We have multiple products in credit and multiple products in AlpInvest. As we grow our presence, many ways to take in capital from that channel. As Jeff mentioned, we're entering a super cycle for some of our largest vintage funds. In the next 18 months, buyout from U.S., secondaries, opportunistic credit, all will be in the market raising capital. If you think about the fact that we had our third best inflow year ever last year without really any of those large vintage funds in the market, I think that's really impressive, and it gives us a lot of confidence in our ability to continue to build on that momentum going forward. I think you've heard from every presenter today how important performance is for our business. If you look at the funds that we will be marketing over the next three years that are going to drive our growth, the performance is outstanding. Private equity, as John mentioned, that's a 35-year track record. By the way, those real estate returns are outstanding compared to what the market has been like for real estate the last few years. Global Credit, Mark started the opportunistic business back in 2018. It's provided great returns. Then those returns for CTAC and direct lending, those are the consistent yielding returns that people want in the private wealth space. This is exactly what they're looking for, that consistent yield with very low risk. Those are very attractive returns. In AlpInvest, fantastic total returns, maybe even more important than that's a 25-year track record. For all the people that are now seeing secondaries and now trying to get into that space, that's not something that they can replicate. We will be marketing on the back of really strong track records for all the funds that we're going to need to raise capital for to meet our goals. We've had tremendous momentum over the last three years, and we've improved our margins materially, but it has not come at the expense of investing back into the business, and that's a really important thing to understand. We've moved our margins up, but we're also hiring people. That's not the only way that we do. We also invest in technology, data science. You heard all the great things that are going on on the panel earlier today. This is incredibly important. Harvey said, "This is a talent business." I'll call out private wealth. We've made significant investment there, and we're going to continue to do that. We could actually today run this business at a higher margin than we do. We don't. Why? Because it would come at the expense of future growth. We're not going to do that. We've been investing in the business, and we're gonna continue to. As we start this three-year period, we really come from an incredible position of strength. We have scalable investment strategies. We don't have to worry that our strategies will exhaust the opportunity set or that we have to add a tremendous amount of cost in order to continue doing what we're doing. We have scalable strategies. The fund performance that we're gonna be marketing over the next three years, it's excellent. Our balance sheet is in great position. We run a balance sheet light strategy. We've always done that, we will continue to do it going forward, but it gives us a tremendous amount of flexibility to pursue whatever the best opportunity is to generate value for the firm. We have a durable and diversified set of strategies. We're not tied to one channel, we're not tied to one fund, we're not tied to one geography. We have many different ways that we can reach our goals. How are we gonna unlock shareholder value over the next three years? Well, here are the goals: $1.9 billion in FRE. That's 50% more than 2025. It's a 15% CAGR over the next three years. $200 billion in fundraising, $2.8 billion in management fees, We expect to grow management fees and every other part of the top line like we've been doing over the past three years. We think we can run the business at a greater than 50% margin, while still investing back in the business, as I just mentioned. All of this adds up to a 50% growth in DE per share. We expect to be over $6, which would be the best ever for Carlyle, by 2028. Let's unpack that a little bit. The inflows are going to come from a variety of sources, a diversified set of sources. You can see here, every one of our segments, we expect will have inflows of at least $50 billion over the next three years. 20% of those inflows, we expect to come from the wealth strategy. That's an increase for us, but as Shane said, this is a massive opportunity here. I think we're being very realistic about the level of inflows that we can get from wealth and retirement over time. This is 27% growth, and it's all organic. This fundraising is all organic. This does not assume we acquire something. This does not assume a major insurance transaction. This is organic scaling of our existing strategies. We expect to grow fee revenues by about 12% CAGR between now and 2028. Again, that's gonna come from all three aspects of fee revenues. It's going to come from management fees, raising capital organically. It's going to come from fee-related performance revenue, those incentive fees we get as we expand in wealth. It's gonna come from transaction fees. If you think about the capital that will come in through this super cycle into U.S. buyout, into credit opportunities, all this capital has to be deployed. When we deploy it, those are transaction fee opportunities for us, right? Our transaction fee income is really a direct derivative of all of the activity that we do across the firm and investing capital. The more capital we bring in, this is the flywheel, the more transaction fee opportunity we have. I want to be clear about something, though. This is not going to be linear. Our growth on the top line will be more muted in 2026, it will accelerate into 2027, it will accelerate further into 2028. Why is that? Basic math of fundraising. We have to go out and raise the capital. We will then deploy it. We will start to see that increase in top line, likely in the second half of 2026, into 2027, into 2028. We are very confident about this 3-year plan, I want to be clear about the timing there. We expect this top-line growth to be the main driver of FRE. We expect to go up 50% over the next three years, $1.2 billion-$1.9 billion. Again, even though we're gonna run this business, we believe at higher than 50%, that's also with investing back into the business, right? we can always run this business at a higher margin if we want to, but the number 1 goal right now is to invest back in, to continue to drive that top-line growth. These projections take that into account. Operational discipline and scaled investment strategies will be core to this, scaling what we have. This, ultimately, we believe, will drive a 50% increase in DE. I mentioned before, today, about 70% of our DE is coming from the top line. Expect that to continue. I think that ratio will continue. Today, we're generating about $350 million a year of net realized performance revenues. I expect that to double by 2028. We'll be closer to $700 million. Again, we have $2.9 billion already accrued on the balance sheet that should flow through over the next three years. A large chunk of that is already there, but I think there's upside to it, and I'll give you an example. If you take just our US buyout funds, CP VII and VIII, and you assume that they get to 2x multiple, just a 2x multiple, they're well on track to do that. If you assume they get there, that's an extra $1 billion of net realized performance revenue, just right there, over and above the $2.9 that's already on the balance sheet. We feel really good about our ability to hit these DE targets. I mentioned our balance sheet is a source of strength, and we're gonna use it in a number of different ways to drive growth. The first and foremost, always, invest back in the business to drive growth. However, our board of directors just this week actually approved a new $2 billion share repurchase authorization over and above the one that we had existing. This gives us an enormous ability to take advantage of any volatility in our stock price. I would go so far as to say that at the current market, you should expect us to be very active in using this repurchase authorization. This is a tool in our toolkit to return capital to shareholders, to generate value for our investors. We are going to use it. I think this is a big statement by our board about what we think the true value of this firm is. I'm gonna leave you with these targets and with a couple of thoughts. Number 1, Harvey hit this right at the top: We did a bottoms-up build, right? These aren't... We didn't back into these numbers. We looked at our business on a granular level. We built it up. We feel incredibly confident in these numbers. They're all organic. This is us taking the business that we have and scaling it. No inorganic M&A, no unforeseen giant block insurance transactions. This is organic. Second thing is, we've put out a number of financial targets over the last few years since Harvey arrived. We've beat every single one of them. Every single one of them. I would tell you, we are highly confident that we will meet or beat these projections. We feel great about them. Maybe lastly, I'll pick up on something that Shane said in the prior panel. Carlyle is a really fun place to work right now. I've been here for almost 20 years. There's never been a time when we had so many interesting things going on here. From our normal investment strategies to AI, to entering new channels, there is so much going on that is hard to capture in the numbers. I can tell you from my perspective, I have never been more excited to be part of Carlyle, never been more excited for our future, and our growth prospects over the next three years. Thanks, everybody, for taking some time. We need to do a little bit of reshuffling here on the stage, we're going to immediately move into your questions. All right? Thank you very much. I mean, attention today. As Justin said, we're going to move to Q&A. As we reset the stage and we get all our speakers back on stage, I hope you can hear what we started with today earlier. There's incredible momentum at the firm. There's incredible excitement at the firm. As you heard from the key priorities that were really weaved throughout all of our presentations, there's, you know, enormous focus on investment excellence across all geographies and all assets. There's enormous focus on scale and how we use data to our advantage, and you saw that through multiple presentations, including the great AI panel. Lastly, as we think about high-growth opportunities, and you heard from a number of our people, there's just enormous ways for us to continue to grow. All of our guys are on stage now. We're ready to take your questions. We're gonna have mic runners in each area, so I'd ask for you to raise your hands when you're ready for a question, wait for the mic, and introduce yourself and your firm, and we're ready to take your questions. First question, right here in the middle, Brennan? Hello, Brennan Hawkin from BMO. Harvey, you spoke to our collective intensity on targets. I don't want to disappoint you. Yeah. The $1.9 billion, can you speak to? You guys used a lot of pluses on that slide. Yeah. Could you speak to maybe how you view it, whether it's conservative, aggressive, and maybe give us some texture around some of the parts, the major parts of that? Well, again, everybody, thanks for being here, Brennan, and thanks for the question. The reason we have the pluses is the point that Justin just made, which is we haven't incorporated any, what I'll call, upside surprises. When Justin was saying any large insurance transactions, we haven't modeled in that over a likely three-year period, there'd be a large block transaction that Fortitude would do or a partnership we would do with Fortitude in some particular way that would enable a large insurance transaction. We haven't modeled in anything like that. We haven't modeled in any, I'll call it, excessive effect of the flywheel effect of what everybody talked about in terms of capital raising on transaction fees. We haven't done any of that, and so when we looked at it, we really wanted to put together a case that you could hold us accountable to and we could hold ourselves accountable to. That's how we built the model, but I think there are obviously things that can go wrong in the world. There are a lot of things that can go right with this plan. Things can grow faster. We can deploy capital more effectively. You know, when you heard Shane earlier, he made a really, really important point. I'm sure there'll be some discussion around wealth. We're agnostic. It's not our job to tell wealth advisors how they should use private capital, how they should think about a particular structure. It's our job to figure out the vehicle that they want. Could be a drawdown fund, could be an evergreen fund. Our job is to create these vehicles in a way that capture the investment talent of the firm and distribute it globally in the way that people need it. I think over the next three years, the trends in our business for the industry are quite good because the demand for capital is so high. It's just a question of: how do we create the flywheel effect? I just think the firm's well positioned for it. hey, now I feel like the need to hedge myself, I'd make a little plus. I'm just kidding. I would just reiterate the point that Justin said. I mean, this year, we've been pretty clear about this. I think you're going to see sort of mid to upper single digits in the base model, but then it accelerates pretty quickly, and it's all driven by Jeff's super cycle of fundraising. I think there's upside in the model. Great. Next question here, Bill Katz. Thank you very much. Bill Katz, TD Cowen. Hey, Bill, good to see you. Thank you. Great to be here. Great presentation. Thank you. Thank you. Maybe pick up where Justin left off, so, Harvey. On one hand, the stock's cheap, you're buying it's great to hear. We agree. On the other hand, and a lot of de novo growth, but also, we mentioned at the beginning of your commentary about the possibility that there could be other things to do. I'm wondering if you could maybe prioritize how we should think about capital return and how quickly you might go through the $2 billion, or what kind of deals you might be looking at, and how do we should think about maybe framing that out? The most important thing about the model, and we have a strong preference for it, is staying capital light. There are certainly days where. You know, you all know my background. I come from a very capital-intensive, big balance sheet world. There are certainly days where I think, "Oh, you know, it'd be great to have an extra couple of billion dollars 'cause we could fuel the business faster." The reality is, we really like the capital light model, and we want to stick with that. I will say, the benefit of having the capital light model are all the things that Justin articulated. There's also no distraction when you have velocity. When you have volatility in the marketplace, we can focus on our portfolios and our investment and our clients. We don't have that third aspect of a distraction. That's just my personal bias, it's the bias of our board, and it's the bias of the team. We are in a great capital position. We are gonna continuously balance capital invested in the business and capital return to the shareholders, and we'll do it methodically. This $2 billion, obviously a big step up from the first plan. When I arrived, John and I spent a lot of time on this when he was the CFO. You know, the firm had systematically diluted shareholders, really, since the firm went public, and we just decided that didn't make any sense. Certainly didn't make any sense at that valuation, and we don't think it makes sense at this valuation. But again, growth first, and then returning capital to shareholders is a big priority, and that's why we wanted this flexibility, and the board want us to have this flexibility. Now, how will we use our capital? We really want to use our capital very surgically to fuel new businesses. The way we do that is trying to be as thoughtful as possible, and sometimes working with Mike Hacker and his team to figure out, hey, what's the most creative way? Like, we have all this expertise in the firm that works with GPs everywhere. We'd be pretty foolish not to be using that. We work with our teams to basically figure out how to most optimize, and we really think of our capital as quite precious. I mean, like, every dollar is... If you want $1, you got to beg for $1 here, okay? We want to be very disciplined about capital return. When we give it to the businesses, we want them to optimize how to use that, but we want them to use that to grow businesses, and we want them to use that to grow businesses that have repeatable streams of revenue, where we can provide value to the clients. That's the thinking. You know, Justin even mentioned, you had it on the slide, opportunistic M&A. You know, we don't need opportunistic M&A to drive value in this platform. We're certainly open to it. I would say it's a very high bar also for us. It has to meet the screening of the industrial logic, culture, really important at Carlyle. You know, obviously, the economics got to make a ton of sense. Chris Kotowski? Chris Kotowski from Oppenheimer. If I disaggregate your $200 billion fundraising target a bit, if I've done my math right, it, like, shows a 6% pickup in credit fundraising, but a 72% pickup in private equity fundraising, which seems to, you know, also probably be a key revenue driver towards that $1.9 billion, right? You know, I understand you've got CP IX coming in, but on the other hand, you had the real estate fund in the last year. Can you disaggregate kind of the building blocks to get to that $50 billion? Yeah, we can certainly go through in a lot of detail offline with you, Chris. I think the way to think about it is, you're gonna have real estate come back in a couple of years, you'll have AlpInvest come in, you have CP IX, you'll have the Japanese fund come back in. Then, of course, you have, as I mentioned, the flagship fund in SECF, all coming in over the next three years. Remember, this is not everything being launched in March of 2026. This is gonna come across a three-year period of fundraising. The other thing, you didn't ask about this, but I think it's worth really noting, last year, of the $54 billion, I guess about 15%, Jeff, came from what we'll call the wealth channel, broadly. You know, that represents about $40 billion across the entire platform. That's really moving it from 15% to 20%. Wealth is important, but we don't really see it growing to more than 20% of the aggregate fundraising. That's how you get it wrapped around the whole platform. Hey, can I just add one simple thing as well? I said this earlier, it's just embedded in the cadence of our fundraising. It was organic, it was bottoms-up built, and you touched it's just basically embedded in the cadence. Yeah, I mean, just quickly, in the global private equity business, every single fund will be in the market at some point in this three-year period, those are basically the building blocks. We'll go over here. Patrick Davitt in front. Thanks. Patrick Davitt, Autonomous Research. I have a question on the wealth channel. Obviously, a lot of misleading noise out there, so I'd like to get a real-time update on what you're hearing from the big distributors and advisors to the extent all this direct lending news flow is potentially impacting their demand for private credit products specifically, and also any comfort that you can provide that it doesn't infect the demand algorithm for all retail alternative products. Yeah. Hey, Patrick, good question. You know, when I, when I got to Carlyle, you know, the wealth channel, was already in motion, and I knew immediately, as I said before, I knew the power of our brand and our reach and our scale, but we didn't have a well-defined wealth strategy. You know, Mark and Justin had designed CTAC, but we didn't have other vehicles, and we didn't have a well-articulated strategy. One of the things I did. Obviously, the team drove all this, and Shane coming on board and all the people he's brought on board drove all this, but one of the things that was really critical to me was to spend a lot of time with the end client, Patrick, so I spent a lot of time with advisors, and I continue to spend a lot of time with advisors. As soon as I showed up, this notion of liquidity in the vehicles was something that I thought a lot about. Really, from the day I've shown up, I've been saying to advisors in small rooms, big rooms, presentations, I've said it publicly, I think the industry did itself a bit of a disservice, calling the vehicles semi-liquid, and we just should have called them sometimes not liquid at all. And it's you know, these advisors are quite smart people, and they're managing very sophisticated portfolios. Again, we don't show up and say, "Oh, you need to have Carlyle AlpInvest in your portfolio. You don't need to have CTAC." It's really the decision of the advisor to understand what their end client needs. Now, I took your question sort of down the liquidity path. Your question really started with direct lending. You know, in direct lending, a lot of that discussion today is around what's happening in SaaS, and I'm just gonna touch on that for a minute, and I realize it's a very long answer, Patrick, but I think it's an important question. What's happening in direct lending today as it relates to SaaS, and everybody knows we're not. SaaS, as I sort of made a joke about earlier, SaaS was not the core competency that was built up out of our private equity business. You know, this is not about direct lending, this is about businesses being bought at really, really high multiples. In 2021, 2022, you had companies that were perceived to have very stable recurring revenue, that were bought at very high multiples. Those multiples have systematically come down a bit before this new concern around AI disrupting all the businesses. It's actually an equity problem, which is then transferring up the capital structure, potentially to a direct lending problem. In wealth, we have a very strong bias that diversification is a real advantage for the client. There's many times I'll meet with a group of advisors and they'll say, "Hey, we'd really like to have, like, co-invest in this one asset," or, you know, "Whatever you think is the best thing," and I completely understand that. I don't love that. I understand why some clients would like that. You know, John, one of our best investors, Brian, one of our best investors in the world, if they make 100 investments, one might not be great. I think in the wealth channel, you want diversification, one of the great things about CTAC that Mark built is that it has that diversification across the whole platform. Yeah, if you're dependent on direct lending, monoline, you probably ended up with a meaningful part of SaaS exposure just because of the cycle during 2021, 2022, and now those multiples are a problem. This is a complicated convergence of factors, which is really getting extrapolated in a whole host of different ways. That's the long answer. I hope that sort of satisfied your question. Feedback from the platform so far is that interest remains high, and I think to Jeff's point, it may not be linear. When you think of the size of the wealth opportunity, when you think of retirement, where millions of people have already, teachers, municipal employees, already are having the benefit of private markets in their portfolios through pension plans, you know, it's just a question of the industry needs to do it right, we need to do it thoughtfully, we need to do it at pace, and we really have to work on thoughtful solutions, particularly as retirement comes into play. The industry has a great obligation to most importantly, get it right, not rush to market. up here in front, Michael Brown. Hey, Michael Brown, UBS. Hey, Mike. Thank you so much for the day. Kind of a related question. There is certainly a lot more volatility in the market lately. The last six quarters have been very, very active for Carlyle on the exit front. Can you maybe just give us an update on the IPO and M&A exit opportunities now? Is it still business as usual? Like, what are you kind of hearing from the investment teams? I'll kick it off, and then I'll ask John to talk a bit about it, and then to the extent Mark should add some color. Our exits, this is not an accident. Two years ago, we looked at the world, and we basically said: credit spreads are very tight, markets were doing quite well. We knew that our clients, broadly, in the private equity world, and I'm talking across the whole industry, so our clients were also clients of the whole industry, that DPI was lagging. In part, it was lagging because of that multiple problem from 2021 and 2022, where assets were bought at higher multiples. We just strategically decided we were not gonna let that window. We don't know how long those windows will stay open. A lot of credit to Brian and Steve in the U.S., our teams in Japan, all around the world, they made a decision to very actively prepare to monetize. As John said, we did the largest ever owned private equity IPO in India, Japan, the United States. We opened the market with StandardAero. This was a very strategic decision, and it was about creating value for all of our clients, returning capital when they wanted capital and others weren't doing it. At the same time, again, we're not waiting for the market to go up another 5% or 10% for every last dollar. That's not, that's not what we wanna do. We wanna create value, and we wanna hit these windows when we can, because the world can be a vulnerable place. As you said, it can be somewhat volatile. As much as we have a very good look into the economy because of our platform, there's a lot of stuff happening out there. I don't know, John, you can give a better sense of the forward view. Yeah, I mean, look, when you look at the ingredients, you want to have a conducive, healthy monetization environment. I mean, they're all in place, right? The economy is strong. The IPO markets are. I mean, investment bankers would tell you, they're opening, they're open. I think they're opening, they're opening, and they're definitely open for great companies like a Medline. M&A activity is accelerating, spreads are tight, CEO confidence is improving. You're seeing trade buyers more present. The regulatory environment's getting more favorable. Like, all the ingredients are there to have a lot of activity. I think people were a little surprised, industry-wise. Mm ... 2025 was not as active. For us, it was incredibly active, but for the industry, it wasn't as active. I think we would have had a even better year. We had Liberation Day in 2025, and we had an extended government shutdown. When I look at those two factors and look at what we did in 2025, I think it's actually amazing. When you look at kinda where we are year to date, and let's just talk about the U.S., we have $7.5 billion of realizations closed or pending in 2026. You know, I think it'll be a very active year. Anybody else, or is it just to lunch? One in the back. Glenn Schorr. Hi. I guess I want to follow up on the AI conversation. I appreciate that that wasn't your strong point in software, and you didn't overpay on some names that are at risk. I think a lot of discussion in the market is bigger, broader, and that AI is having potential massive implications across many industries. I'm curious to see how you think about what's left in your existing portfolios, and then, more importantly, how you underwrite new assets for what we now know. You know, you're using it. A lot of your presentation was how you use it to make your systems and your processes better, but I would think it has a pretty big implication on how we underwrite going forward, and just a little more color on that would be great. Yeah. In 2010, little bit of history here I think is important one, because some of this is just people doing really thoughtful things that ultimately end up being really brilliant things. In 2010, Bill Conway decided that he really wanted to understand what the KPIs were in the portfolio companies. Obviously, you know, Bill, one of the greatest investors ever existing in private markets and become a great friend and co-chair of our board. He sought out to start organizing data around all those companies to see what kind of proprietary advantage we have. That started in 2010. Nobody even knew chat was coming in 2023 and the launch of LLMs. That was the beginning of the journey of harnessing our proprietary data. The team comes along and says: "Hey, is there any way we can use this data to use machine learning to be better investors?" LLMs come on the scene three years ago and have this great step function change in technological capability and a lot of promise. The reason we walked you through that panel is there is a lot of, I think, It may sound a little critical, little parlor trick stuff going on, like, oh, you know, we write our IC memos. Personally, I don't know if 7th graders can get their term papers written in an LLM. I don't think it should be that hard to write an IC. I don't actually think it's great for people to write IC memos with large language model. I think they should just be writing them themselves. I think it's really good for young people. That's, like, not our focus, right? Because we have a data advantage, the team started organizing all the data. They organized the data not knowing LLMs were coming. LLMs come. That's the convenient cross-section of when these things intersect. I luckily. This all happens before I get here. I show up literally almost two years ago to the day. The LLMs come a couple of months, you know, Chat launches a couple of months before I get here. It's this perfect convergence of data with technological capability, which has only continued to accelerate. To your point, now let's get to the fundamental question. Immediately, we started saying to ourselves: How can we use these tools to be better investors? You know, what we wanted to do today, and I hope it was helpful, was kind of really give you a look under the hood at how we use things, 'cause there's too much general discussion out there and not enough explicit discussion. The example that Matt gave you about that healthcare company is really critical, because if you avoid investments that somehow underperform because you just have better data advantage and you can inform your teams, you get outperformance. It's all about outperformance. It's all about investment performance. If you can get an extra 100 basis points, 200 basis points, 300 basis points, you're talking about remarkable outcomes over a 10-year, 20-year, 30-year period. Our whole focus is on use cases and how do we fund the investment in the team, the talent, using the models, because we want use cases. Like, I'm obsessed with use cases, and this whole team spends a lot of time with that team. What we wanna do is we want to identify where can we better enhance our team's performance the day they commit the capital? Once we commit the capital, we've made a decision. First and foremost, how do we most inform our teams? How do we make our teams better? By the way, you know, Lúcia did an amazing job describing all the things we're doing in productivity. It is not a headcount thing. We're 2,500 people. We're not looking to eliminate 100 people. We're actually looking to add more people and make them incrementally more productive and get an exponential effect. When we inform the teams better, give them maximum information, and allow them to make the best investment decision, you get better investment outcomes. For the companies we own, I think the team explained it really well. You know, it's hard to scale engineers, and so it's not like you can say to every portfolio company, "Hey, we'll give you 10 engineers." Nobody can do that. The talent pool's not deep enough, it's not rich enough, it doesn't exist in the external environment. What we do is, we make sure the teams know about the technological capabilities. We want to keep them very, the portfolio companies, very current, and at the same time, we wanna make sure, and Lucia described it, we wanna make sure they have access to all the resources that exist in the world. Okay, how do we then leverage that? We funnel that back in. If they have the, you know, that day she described where we had hundreds of presentations to CEOs and CTOs, we want the people running the portfolio companies to make sure they have access to the most current knowledge, so they can then hire the right firms, engage the right firms, use the technology, they can have breakthroughs. Now, our responsibility is then, once we get them access, to create the flywheel effect around that. By the way, in terms of committing capital, the way we think about the investment process is no different in private equity than it is in Mark's business, than it is in Carlyle AlpInvest. It's all about leveraging the technology to make better investment decisions and make our people more productive. Question up here. Mike Vinci. Hey, guys. Mike Vinci from Goldman. You guys spoke about warehousing some deal flow on the balance sheet for CPEP. Can we maybe talk through the interplay between choosing to warehouse that deal flow versus giving it to LPs, and maybe what the longer-term puts and takes of that could be for the either management fee rate growth algorithm or any other interplay you see there? Thanks. Well, we don't, we don't, there's no cherry-picking of one thing in one bucket versus another bucket, so we wanna make sure we have waterfalls, so there's no conflict between our LPs. We basically create the opportunity for our retail vehicles off the flow that's in our institutional business. We don't want our institutional clients to be in conflict with our wealth clients. We don't want our wealth clients to be in conflict with our institutional clients. You know, for example, in Carlyle AlpInvest, there's an allocation methodology. We don't describe, "Oh, well, this will go here, or this will go there." The retail vehicle has its own investment committee. John can speak to that process more. Yeah. The reason Justin used that as an example is, we want that capital... When we're deploying capital, and again, we are gonna be a bit psychotic at the margin about how we deploy it. When we deploy that capital, we want velocity in it as best we can. His point was, "Hey, we're using it to launch the vehicle, 'cause we've got to ramp up for the vehicle, but we're gonna get that capital back, and then we're gonna redeploy it back into the business." John can talk a bit more about- Yeah, I would just reiterate what Harvey said. The balance sheet warehousing for CPEP, the private equity wealth product, it's just because the product's new, right? You think about the episodic nature of the content origination in a private equity business, we wanted to have enough content when we started to raise money to put into the fund. Over time, that warehousing will go to zero, and there will be no need going forward for a warehousing capability in that product. It was just I think of it more as kinda seeding the fund, getting it going. Yeah ... versus kind of a warehouse concept. Hey, Harvey, can I just add one small thing? When we originated secondary, and I think Brian can speak to this, I think with CP VII and CP VIII, there was $22 billion of secondary origination, so large notional amounts done just in those funds alone. Question back here with Glenn Schorr. Hi, sorry, one more. Maybe a good wrap-up question. I personally am still a huge believer in the secular growth story of private markets. I think you guys laid out a very good job of your individual businesses. This big ramp- is interesting, and I think you backed it up with performance and everything you laid out. You know, when we step back, we see LPs are super cash-starved because DPI in other firms hasn't been as good. You see, the wealth industry being more cautious, hopefully just a moment in time, but there's less gross sales and higher redemption requests on certain products. Then there's a lot of competition. There's at least, you know, 93 or so new evergreen funds launched across the industry last year. Is it that we're gonna see a consolidation of winners, or is this just a cyclical moment of time, of softness? I'd love to get your thoughts on how we should balance your big growth drivers while you have these temporary, hopefully temporary, slowdowns. I would say, you know, to Jeff's point, the reason we're able to articulate this growth, and we're just articulating the facts, is the cadence of the fundraising. That's it. We have funds coming to market, and we expect those funds to grow. I think I'm gonna answer your question, but I think what you're getting at is: why should you feel confident in our ability to execute? You know, we put these numbers here, we try to be really explicit for you, because if I'm not explicit, you guys kill me, and I don't want you guys to kill me. We want to be as explicit. Also, we want to hold ourselves to this discipline. The reality is, I don't know, wealth could be bigger, retirement could be bigger, wealth could be a little smaller, AlpInvest could be bigger, we could deploy capital faster, CTAC could SECF could grow dramatically based on its performance. I think from our perspective, the reason we're comfortable with the output around FREDE is our starting point of the diversification of the platform. I think it'd be much harder for me to tell you that if I was just a middle-market private equity firm, or if Carlyle was just a secondaries firm, or if Carlyle was just a direct lending platform. It's the diversity of the platform, Glenn, that gives us comfort that there's ballast, right? I don't know, maybe over the next three years, for whatever reason, private equity is a little slower. I suspect that means Carlyle AlpInvest will scale faster, vice versa. They're kinda two sides of the coin, although I agree with everything Mike said. The industry is evolving in a way where solutions and corporate finance, which is really more the world I come from originally, is super exciting. Super exciting. I just think, ultimately, Glenn, the demand for capital will pull capital. You know, when I started my opening comments, I said, everywhere I go in the world, everybody wants capital. by the way, they want bank capital, they want public market capital, they want high-yield bonds. People want to finance growth. Private capital is an incredibly important part of that growth. We've lost half the public companies in the Wilshire in 25 years, 26 years, the demand for capital will be higher. This is our best estimate sitting here today with a ground-up build of what we think is achievable. These numbers will move a little bit, and we'll keep you updated. Maybe one last follow-up. Bill? Sorry, Glenn. Bill Katz again, TD Cowen. Just thinking through the margin opportunity, just listening to each of the segments and just doing the mental math on the margins are already pretty high. As you think about going forward, I appreciate the reinvestment opportunity, and you could run the business at a higher margin if you wanted to today. When you look across the different businesses, where do you see the best incremental margin opportunity? Best? I don't really think of it that way, Bill. I mean, I don't know that we rank it as best. We really take a very long-term view because we're not steering ourselves to, oh, this has the best margin. I will say that over the past three years, what we've done is been really thoughtful about making sure opportunities are scalable. You know, Mark, talked a lot about this in the credit platform, and he talked about. Mark, you can jump in, but he talked about how when he's thought about the platform, and he has these, they're not just evergreen vehicles for wealth, but sort of vehicles for institutional clients, cross-platform. Why don't you- Yeah give a sense of the cross-platform and why that's a margin driver? I think the margin expansion comes from. I, you know, I got 20 minutes, so I didn't have the detail, but we built purposely that platform with, you've got key strategies that are, you know, feeding the origination, if you will, but we have both institutional and wealth cross-platform accounts for each incremental. It's open architecture, so when we bring an opportunity in, it gets allocated across that whole platform, not just to one specific strategy. That one origination, you know, as it grows and the capital grows, you know, you're just getting a higher margin because we're not hiring more people to originate, right? We're not hiring more people to prosecute them. That leads to just a higher margin for the platform. Yeah. You know, direct lending, obviously getting a lot of attention today because of the exposure to SaaS and everything like that. Again, when I showed up, everybody said to me, "Oh, you have a problem. You don't have a big enough direct lending business. Yeah. We're investing in our direct lending business. We're adding resources. We actually think there could be a pullback in the marketplace, people will be more disciplined about spending, about the next marginal dollar that goes into direct lending. Direct lending is not going away. We think it could be an important part of Mark's toolkit. I don't really think about, oh, this has the next best margin opportunity, just because that sort of takes the whole rest of the equation. Obviously, it's an important input, but it's not how I prioritize it. Obviously, the team does all that work, and Justin obsesses about it. I really do go back to first principles, Bill, and I say: "What does the client need? What does the wealth advisor need? What does the sovereign wealth fund need? What does the pension fund need? What does the insurance company need? What do these clients need? How can we construct that in a way that delivers value for the firm and for our team, and people wanna be, you know, involved with and excited about? Honestly, they've never said that to me before publicly. They talk about how hard they're working, but it's great to know they're having fun, too. Everybody, we could not be more grateful for your support. I really meant it when I said it before. A lot of you, when I showed up, gave me great feedback. Sometimes it was intense, but super appreciated. Keep giving us the feedback. We learn from all of you, and we truly appreciate all your support and your time. Thank you. Thanks so much, everybody.

Speaker 6: As you heard, my name is Daniel Harris. I'm Head of Shareholder Relations here at Carlyle. It is so great to see all of you here. Thank you for joining us today. We appreciate your efforts to get here through the weather, obviously. To everyone around the webcast, around the world, we appreciate your time today and your interest in Carlyle. Before we begin, I have the pleasure of going over some legal disclosures. Earlier this morning, we issued a press release and a detailed presentation, which are also available on our IR website. This event is being webcast, and a replay will be available. We will refer to certain non-GAAP financial metrics today. These measures should not be considered in isolation from, or as a substitute for, measures prepared in accordance with GAAP. As you heard, my name is Daniel Harris. as you heard my name is daniel harris I'm Head of Shareholder Relations here at Carlyle. i'm head of shareholder relations here at carlyle It is so great to see all of you here. it is so great to see all of you here Thank you for joining us today. thank you for joining us today We appreciate your efforts to get here through the weather, obviously. we appreciate your efforts to get here through the weather obviously To everyone around the webcast, around the world, we appreciate your time today and your interest in Carlyle. to everyone around the webcast around the world we appreciate your time today and your interest in carlyle Before we begin, I have the pleasure of going over some legal disclosures. before we begin i have the pleasure of going over some legal disclosures Earlier this morning, we issued a press release and a detailed presentation, which are also available on our IR website. earlier this morning we issued a press release and a detailed presentation which are also available on our ir website This event is being webcast, and a replay will be available. this event is being webcast and a replay will be available We will refer to certain non-GAAP financial metrics today. we will refer to certain non-gaap financial metrics today These measures should not be considered in isolation from, or as a substitute for, measures prepared in accordance with GAAP. these measures should not be considered in isolation from or as a substitute for measures prepared in accordance with gaap We've provided reconciliation of these measures to GAAP in our presentation to the extent reasonably available. Any forward-looking statements made today do not guarantee future performance, and undue reliance should not be placed on them. These statements are based on current management expectations and involve inherent risks and uncertainties, including those identified in the Risk Factor section in our Form 10-K, that could cause actual results to differ from those indicated. Carlyle assumes no obligation to update any forward-looking statements at any time. Lastly, today's presentation does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any Carlyle product. With that, we're really excited to get started today. It's been a really great experience for us preparing for this event. We've provided reconciliation of these measures to GAAP in our presentation to the extent reasonably available. we've provided reconciliation of these measures to gaap in our presentation to the extent reasonably available Any forward-looking statements made today do not guarantee future performance, and undue reliance should not be placed on them. any forward-looking statements made today do not guarantee future performance and undue reliance should not be placed on them These statements are based on current management expectations and involve inherent risks and uncertainties, including those identified in the Risk Factor section in our Form 10-K, that could cause actual results to differ from those indicated. these statements are based on current management expectations and involve inherent risks and uncertainties including those identified in the risk factor section in our form 10-k that could cause actual results to differ from those indicated Carlyle assumes no obligation to update any forward-looking statements at any time. carlyle assumes no obligation to update any forward-looking statements at any time Lastly, today's presentation does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any Carlyle product. lastly today's presentation does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any carlyle product With that, we're really excited to get started today. with that we're really excited to get started today It's been a really great experience for us preparing for this event. it's been a really great experience for us preparing for this event As you've heard us say, we have enormous positive momentum at the firm, which has really made preparing for this event so exciting, and it's given all of us here at Carlyle the opportunity to reflect on the transformation and growth and substantial opportunities that we have in front of us. Our business today is exceptionally diversified across strategies, geographies, and distribution channels. We're incredibly proud of what we've been delivering for our shareholders over the past few years, and what's most compelling to me is that we are far from done. Today's program is designed to give you a clear view of our priorities and our long-term outlook, and how we plan to execute on those priorities over the coming years. We have a targeted agenda, which you'll see on the screen for today's meeting. As you've heard us say, we have enormous positive momentum at the firm, which has really made preparing for this event so exciting, and it's given all of us here at Carlyle the opportunity to reflect on the transformation and growth and substantial opportunities that we have in front of us. as you've heard us say we have enormous positive momentum at the firm which has really made preparing for this event so exciting and it's given all of us here at carlyle the opportunity to reflect on the transformation and growth and substantial opportunities that we have in front of us Our business today is exceptionally diversified across strategies, geographies, and distribution channels. our business today is exceptionally diversified across strategies geographies and distribution channels We're incredibly proud of what we've been delivering for our shareholders over the past few years, and what's most compelling to me is that we are far from done. we're incredibly proud of what we've been delivering for our shareholders over the past few years and what's most compelling to me is that we are far from done Today's program is designed to give you a clear view of our priorities and our long-term outlook, and how we plan to execute on those priorities over the coming years. today's program is designed to give you a clear view of our priorities and our long-term outlook and how we plan to execute on those priorities over the coming years We have a targeted agenda, which you'll see on the screen for today's meeting. we have a targeted agenda which you'll see on the screen for today's meeting Our CEO, Harvey Schwartz, will kick off our presentation, followed by a deep dive into our global client business, led by our Co-President and Head of Client Business, Jeff Nedelman. We'll shift into a discussion of each of our segments: Global Credit, led by Mark Jenkins, and the Global Private Equity and Carlyle AlpInvest business, led by Co-President John Redett. After a quick break, we're gonna shift into a few topical panels that I think you'll find really interesting on AI, and then some high-conviction opportunities that we see here at Carlyle. Our newly appointed CFO, Justin Plouffe, will go through our performance and multi-year financial outlook, which I know you're all very focused on. Our CEO, Harvey Schwartz, will kick off our presentation, followed by a deep dive into our global client business, led by our Co-President and Head of Client Business, Jeff Nedelman. our ceo harvey schwartz will kick off our presentation followed by a deep dive into our global client business led by our co-president and head of client business jeff nedelman We'll shift into a discussion of each of our segments: Global Credit, led by Mark Jenkins, and the Global Private Equity and Carlyle AlpInvest business, led by Co-President John Redett. we'll shift into a discussion of each of our segments global credit led by mark jenkins and the global private equity and carlyle alpinvest business led by co-president john redett After a quick break, we're gonna shift into a few topical panels that I think you'll find really interesting on AI, and then some high-conviction opportunities that we see here at Carlyle. after a quick break we're gonna shift into a few topical panels that i think you'll find really interesting on ai and then some high-conviction opportunities that we see here at carlyle Our newly appointed CFO, Justin Plouffe, will go through our performance and multi-year financial outlook, which I know you're all very focused on. our newly appointed cfo justin plouffe will go through our performance and multi-year financial outlook which i know you're all very focused on I'm gonna ask that you keep track and hold all of your questions till the end. We'll address them during our Q&A session when all the presentations have completed today. All this is gonna wrap up later this morning, at which point we'll break for lunch. Before we kick off with Harvey's presentation, we have a brief video that we want to share with you. We all hope here at Carlyle that you leave today as excited as we are about what lies ahead for Carlyle. Thank you. I'm gonna ask that you keep track and hold all of your questions till the end. i'm gonna ask that you keep track and hold all of your questions till the end We'll address them during our Q&A session when all the presentations have completed today. we'll address them during our q&a session when all the presentations have completed today All this is gonna wrap up later this morning, at which point we'll break for lunch. all this is gonna wrap up later this morning at which point we'll break for lunch Before we kick off with Harvey's presentation, we have a brief video that we want to share with you. before we kick off with harvey's presentation we have a brief video that we want to share with you We all hope here at Carlyle that you leave today as excited as we are about what lies ahead for Carlyle. we all hope here at carlyle that you leave today as excited as we are about what lies ahead for carlyle Thank you. thank you

Speaker 24: What's the value of connection? In private markets, it's the raw power of your network, the relationship capital that opens the right doors and closes the right deals. At Carlyle, we know a thing or two about connection. We've been mastering it for four decades, building and cementing global circles of trust, connecting insight from the hill to expertise on the ground. That's how we keep you a step ahead of change. Partnering with businesses to fuel growth and taking investors straight to the source of long-term performance by combining insight, access, and execution to unlock value. We focus our capital where conviction is highest, backing opportunities that can transform industries. Where it matters most, you're always connected to what matters most, because the right connections drive performance. Carlyle connects you. What's the value of connection? what's the value of connection In private markets, it's the raw power of your network, the relationship capital that opens the right doors and closes the right deals. in private markets it's the raw power of your network the relationship capital that opens the right doors and closes the right deals At Carlyle, we know a thing or two about connection. at carlyle we know a thing or two about connection We've been mastering it for four decades, building and cementing global circles of trust, connecting insight from the hill to expertise on the ground. we've been mastering it for four decades building and cementing global circles of trust connecting insight from the hill to expertise on the ground That's how we keep you a step ahead of change. that's how we keep you a step ahead of change Partnering with businesses to fuel growth and taking investors straight to the source of long-term performance by combining insight, access, and execution to unlock value. partnering with businesses to fuel growth and taking investors straight to the source of long-term performance by combining insight access and execution to unlock value We focus our capital where conviction is highest, backing opportunities that can transform industries. we focus our capital where conviction is highest backing opportunities that can transform industries Where it matters most, you're always connected to what matters most, because the right connections drive performance. where it matters most you're always connected to what matters most because the right connections drive performance Carlyle connects you. carlyle connects you

Speaker 8: Good morning, everybody. On behalf of the whole team, truly appreciate all of you being here. We know you're super busy. You electing to spend the time with us, we're very grateful. I also wanna say, for all of you who've engaged with us over the last couple of years, we've really. We're grateful for your covering us, your engagement, your feedback. Just over three years ago, as all of you know, I had the privilege of joining the firm as the Chief Executive Officer, and when I showed up, you know, it was immediately obvious to me all the incredible strengths of the firm: global iconic brand, recognizable everywhere around the world, extraordinary talent, deep client relationships, and, you know, a culture that was inspired by the founders when they launched private capital in the firm nearly 40 years ago. Good morning, everybody. good morning everybody On behalf of the whole team, truly appreciate all of you being here. on behalf of the whole team truly appreciate all of you being here We know you're super busy. we know you're super busy You electing to spend the time with us, we're very grateful. you electing to spend the time with us we're very grateful I also wanna say, for all of you who've engaged with us over the last couple of years, we've really. i also wanna say for all of you who've engaged with us over the last couple of years we've really We're grateful for your covering us, your engagement, your feedback. we're grateful for your covering us your engagement your feedback Just over three years ago, as all of you know, I had the privilege of joining the firm as the Chief Executive Officer, and when I showed up, you know, it was immediately obvious to me all the incredible strengths of the firm: global iconic brand, recognizable everywhere around the world, extraordinary talent, deep client relationships, and, you know, a culture that was inspired by the founders when they launched private capital in the firm nearly 40 years ago. just over three years ago as all of you know i had the privilege of joining the firm as the chief executive officer and when i showed up you know it was immediately obvious to me all the incredible strengths of the firm global iconic brand recognizable everywhere around the world extraordinary talent deep client relationships and you know a culture that was inspired by the founders when they launched private capital in the firm nearly 40 years ago Of course, we also had some work to do, and we did this work not through a single initiative, but through a thoughtful decision-making process, really designed to build a more diversified, more durable, firm, and it was a very systematic decision-making process. Let me summarize that for you a bit. We basically distilled this process across three guiding principles. The first, creating a strategic growth plan. We identified areas really where our strengths best fit our client needs. You'll hear from Jeff later, how we put the client at the center of everything we do, because that is most critical. We launched a series of growth initiatives, and then we invested heavily in those areas. Of course, we also had some work to do, and we did this work not through a single initiative, but through a thoughtful decision-making process, really designed to build a more diversified, more durable, firm, and it was a very systematic decision-making process. of course we also had some work to do and we did this work not through a single initiative but through a thoughtful decision-making process really designed to build a more diversified more durable firm and it was a very systematic decision-making process Let me summarize that for you a bit. let me summarize that for you a bit We basically distilled this process across three guiding principles. we basically distilled this process across three guiding principles The first, creating a strategic growth plan. the first creating a strategic growth plan We identified areas really where our strengths best fit our client needs. we identified areas really where our strengths best fit our client needs You'll hear from Jeff later, how we put the client at the center of everything we do, because that is most critical. you'll hear from jeff later how we put the client at the center of everything we do because that is most critical We launched a series of growth initiatives, and then we invested heavily in those areas. we launched a series of growth initiatives and then we invested heavily in those areas You know many of them. They included, and not limited to, creating a wealth, a well-defined wealth strategy for our wealth clients, establishing an integrated credit and insurance strategy that levered our partnership with Fortitude Re and our long history in private credit. We invested significantly and strategically in Carlyle AlpInvest. It was very clear when we got here, that was a power alley that could really be levered. The strength in secondaries, co-invest, financial solutions, really critical for the marketplace. We also drove growth in our capital markets business and systematically integrated data science into the platform. Second, we did a really thorough and rigorous evaluation of the operating business model. This included a review of the expense base, identifying expense savings. We needed that to fund scalable growth initiatives, and when we had to, we de-emphasized or just eliminated underperforming business lines. You know many of them. you know many of them They included, and not limited to, creating a wealth, a well-defined wealth strategy for our wealth clients, establishing an integrated credit and insurance strategy that levered our partnership with Fortitude Re and our long history in private credit. they included and not limited to creating a wealth a well-defined wealth strategy for our wealth clients establishing an integrated credit and insurance strategy that levered our partnership with fortitude re and our long history in private credit We invested significantly and strategically in Carlyle AlpInvest. we invested significantly and strategically in carlyle alpinvest It was very clear when we got here, that was a power alley that could really be levered. it was very clear when we got here that was a power alley that could really be levered The strength in secondaries, co-invest, financial solutions, really critical for the marketplace. the strength in secondaries co-invest financial solutions really critical for the marketplace We also drove growth in our capital markets business and systematically integrated data science into the platform. we also drove growth in our capital markets business and systematically integrated data science into the platform Second, we did a really thorough and rigorous evaluation of the operating business model. second we did a really thorough and rigorous evaluation of the operating business model This included a review of the expense base, identifying expense savings. this included a review of the expense base identifying expense savings We needed that to fund scalable growth initiatives, and when we had to, we de-emphasized or just eliminated underperforming business lines. we needed that to fund scalable growth initiatives and when we had to we de-emphasized or just eliminated underperforming business lines We overhauled the compensation plan to better align our teams with all of our stakeholders, and we created a capital allocation strategy that balanced investment in growth with the return of capital to our shareholders. Now, the third thing, and maybe the most important thing, is really the leadership and organizational design changes we made, because you can't drive significant change without change. You certainly can't drive this much change in 3 years unless you have a world-class leadership team. You have to be able to mobilize the firm effectively. Since my arrival, we made a number of senior leadership changes, each one very much designed to build the institutional management infrastructure that a firm of Carlyle's scale requires. Most recently, as you can see on the slide, we appointed three co-presidents. We overhauled the compensation plan to better align our teams with all of our stakeholders, and we created a capital allocation strategy that balanced investment in growth with the return of capital to our shareholders. we overhauled the compensation plan to better align our teams with all of our stakeholders and we created a capital allocation strategy that balanced investment in growth with the return of capital to our shareholders Now, the third thing, and maybe the most important thing, is really the leadership and organizational design changes we made, because you can't drive significant change without change. now the third thing and maybe the most important thing is really the leadership and organizational design changes we made because you can't drive significant change without change You certainly can't drive this much change in 3 years unless you have a world-class leadership team. you certainly can't drive this much change in 3 years unless you have a world-class leadership team You have to be able to mobilize the firm effectively. you have to be able to mobilize the firm effectively Since my arrival, we made a number of senior leadership changes, each one very much designed to build the institutional management infrastructure that a firm of Carlyle's scale requires. since my arrival we made a number of senior leadership changes each one very much designed to build the institutional management infrastructure that a firm of carlyle's scale requires Most recently, as you can see on the slide, we appointed three co-presidents. most recently as you can see on the slide we appointed three co-presidents Actually, for the first time, I just noticed I'm the only bald part of the leadership team. Our team has great hair, actually. They, most recently, we appointed these three co-presidents: Mark Jenkins, Jeff Nedelman, John Redett, proven veterans who partner with me to drive overall firm-wide strategy, investment performance, and client strategy across the platform. Lindsay LoBue, not to leave Lindsay out. Great hair, Lindsay. Lindsay LoBue joined as our chief operating officer. She brings more than two decades of experience building and scaling businesses. As of January, Justin Plouffe stepped into the chief financial officer role, been at the firm for nearly 20 years. These changes are just part of more than a dozen senior leadership changes made across the firm in the past three years. Actually, for the first time, I just noticed I'm the only bald part of the leadership team. actually for the first time i just noticed i'm the only bald part of the leadership team Our team has great hair, actually. our team has great hair actually They, most recently, we appointed these three co-presidents: Mark Jenkins, Jeff Nedelman, John Redett, proven veterans who partner with me to drive overall firm-wide strategy, investment performance, and client strategy across the platform. they most recently we appointed these three co-presidents mark jenkins jeff nedelman john redett proven veterans who partner with me to drive overall firm-wide strategy investment performance and client strategy across the platform Lindsay LoBue, not to leave Lindsay out. lindsay lobue not to leave lindsay out Great hair, Lindsay. great hair lindsay Lindsay LoBue joined as our chief operating officer. lindsay lobue joined as our chief operating officer She brings more than two decades of experience building and scaling businesses. she brings more than two decades of experience building and scaling businesses As of January, Justin Plouffe stepped into the chief financial officer role, been at the firm for nearly 20 years. as of january justin plouffe stepped into the chief financial officer role been at the firm for nearly 20 years These changes are just part of more than a dozen senior leadership changes made across the firm in the past three years. these changes are just part of more than a dozen senior leadership changes made across the firm in the past three years Of course, this cascades down through the organization because they all bring their unique strengths and change to the firm, and they again mobilize all this change. You'll hear all from them during the course of the day, they really drive the team and our success in everything we're doing. When Carlyle was founded by David, Bill, and Dan, you know, they set the foundation for our firm's culture. You know, it's 1987, it's not 2026. You know, if you're doing a startup in 2026, maybe you hire some consultants, you use an LLM, you craft your principles. You know, they didn't do this through elaborate studies or hiring consultants. They just lived it. They just started it. They walked the walk, they set the tone, we've all talked quite a bit about this. Of course, this cascades down through the organization because they all bring their unique strengths and change to the firm, and they again mobilize all this change. of course this cascades down through the organization because they all bring their unique strengths and change to the firm and they again mobilize all this change You'll hear all from them during the course of the day, they really drive the team and our success in everything we're doing. you'll hear all from them during the course of the day they really drive the team and our success in everything we're doing When Carlyle was founded by David, Bill, and Dan, you know, they set the foundation for our firm's culture. when carlyle was founded by david bill and dan you know they set the foundation for our firm's culture You know, it's 1987, it's not 2026. you know it's 1987 it's not 2026 You know, if you're doing a startup in 2026, maybe you hire some consultants, you use an LLM, you craft your principles. you know if you're doing a startup in 2026 maybe you hire some consultants you use an llm you craft your principles You know, they didn't do this through elaborate studies or hiring consultants. you know they didn't do this through elaborate studies or hiring consultants They just lived it. they just lived it They just started it. they just started it They walked the walk, they set the tone, we've all talked quite a bit about this. they walked the walk they set the tone we've all talked quite a bit about this I certainly have since I got here, and what really became quite clear as they really pioneered private capital, is that they focused on two fundamental values. The first is around care. The second is around excellence. Care for fellow colleagues, our clients, how we interact with our strategic partners and our portfolio companies. It's really centered around kindness and, of course, performance in all aspects of everything we do. Our leadership team, what do we do with respect to that? We feel the great burden and responsibility to enhance these principles and reinforce them in everything that we do. You hear a lot about strategy today, but I really hope you get a sense for how deeply we care as a management team about the success of our firm and the success of our people in everything we do. I certainly have since I got here, and what really became quite clear as they really pioneered private capital, is that they focused on two fundamental values. i certainly have since i got here and what really became quite clear as they really pioneered private capital is that they focused on two fundamental values The first is around care. the first is around care The second is around excellence. the second is around excellence Care for fellow colleagues, our clients, how we interact with our strategic partners and our portfolio companies. care for fellow colleagues our clients how we interact with our strategic partners and our portfolio companies It's really centered around kindness and, of course, performance in all aspects of everything we do. it's really centered around kindness and of course performance in all aspects of everything we do Our leadership team, what do we do with respect to that? our leadership team what do we do with respect to that We feel the great burden and responsibility to enhance these principles and reinforce them in everything that we do. we feel the great burden and responsibility to enhance these principles and reinforce them in everything that we do You hear a lot about strategy today, but I really hope you get a sense for how deeply we care as a management team about the success of our firm and the success of our people in everything we do. you hear a lot about strategy today but i really hope you get a sense for how deeply we care as a management team about the success of our firm and the success of our people in everything we do We do really take the responsibility of protecting and promoting this culture quite seriously. All right, where are we today? I don't know. If I have a favorite slide, it's a pretty good slide, okay? This team and everybody out there working globally for Carlyle has done an amazing job. As you can see on the slide, we come into 2026 off a super strong 2025. Lots of records on this page. Record FRE, record margin, realizations. Not an accident. This is really reflective of everybody's hard work over 3 years, and we are super grateful, maybe me more than anyone, of the collective effort of the 2,500 people at Carlyle that come into work every day, and the effort of our global team. We do really take the responsibility of protecting and promoting this culture quite seriously. we do really take the responsibility of protecting and promoting this culture quite seriously All right, where are we today? all right where are we today I don't know. i don't know If I have a favorite slide, it's a pretty good slide, okay? if i have a favorite slide it's a pretty good slide okay This team and everybody out there working globally for Carlyle has done an amazing job. this team and everybody out there working globally for carlyle has done an amazing job As you can see on the slide, we come into 2026 off a super strong 2025. as you can see on the slide we come into 2026 off a super strong 2025 Lots of records on this page. lots of records on this page Record FRE, record margin, realizations. record fre record margin realizations Not an accident. not an accident This is really reflective of everybody's hard work over 3 years, and we are super grateful, maybe me more than anyone, of the collective effort of the 2,500 people at Carlyle that come into work every day, and the effort of our global team. this is really reflective of everybody's hard work over 3 years and we are super grateful maybe me more than anyone of the collective effort of the 2,500 people at carlyle that come into work every day and the effort of our global team Let's take a second, let's just dig into some of the financial performance more specifically. On this slide, you'll see Fee Related Earnings, FRE margin, DE per share. Record Fee Related Earnings of $1.24 billion. That's up 50% from 2023. That's a 20% compound organic growth rate. FRE margin in the middle of the page, 47%. That's a record, up 1,000 basis points, not easily achieved. Distributable Earnings, $1.7 billion, $4+ a share, up 11%. Fee revenues, $2.6 billion, a record reflecting 7% organic growth. Obviously, everything we've done over the last three years has been 100% organic. Transaction fees, in the middle of the slide, hit a record $225 million. That's almost triple the level from two years ago. Let's take a second, let's just dig into some of the financial performance more specifically. let's take a second let's just dig into some of the financial performance more specifically On this slide, you'll see Fee Related Earnings, FRE margin, DE per share. on this slide you'll see fee related earnings fre margin de per share Record Fee Related Earnings of $1.24 billion. record fee related earnings of $1.24 billion That's up 50% from 2023. that's up 50% from 2023 That's a 20% compound organic growth rate. that's a 20% compound organic growth rate FRE margin in the middle of the page, 47%. fre margin in the middle of the page 47% That's a record, up 1,000 basis points, not easily achieved. that's a record up 1,000 basis points not easily achieved Distributable Earnings, $1.7 billion, $4 + a share, up 11%. distributable earnings $1.7 billion $4 + a share up 11% Fee revenues, $2.6 billion, a record reflecting 7% organic growth. fee revenues $2.6 billion a record reflecting 7% organic growth Obviously, everything we've done over the last three years has been 100% organic. obviously everything we've done over the last three years has been 100% organic Transaction fees, in the middle of the slide, hit a record $225 million. transaction fees in the middle of the slide hit a record $225 million That's almost triple the level from two years ago. that's almost triple the level from two years ago Over the last several years, we have increased the amount of capital returned to shareholders by 70% through a combination of share repurchase and dividends. At the same time, we invested in the growth initiatives, and you can see the capital return on the far right. When I got to Carlyle, all of you were great. Sometimes a little intense. I'm a big guy, but a little intense, and you were very, very focused on financial targets. We set them, and you wanted them, and of course, you should have them. Given the team's performance, it's really no surprise, they set the targets, they exceeded the targets both in 2024 and 2025. I will say it's a real testament. You can see it on the slide, whether it's FRE growth, FRE margin, inflows. Over the last several years, we have increased the amount of capital returned to shareholders by 70% through a combination of share repurchase and dividends. over the last several years we have increased the amount of capital returned to shareholders by 70% through a combination of share repurchase and dividends At the same time, we invested in the growth initiatives, and you can see the capital return on the far right. at the same time we invested in the growth initiatives and you can see the capital return on the far right When I got to Carlyle, all of you were great. when i got to carlyle all of you were great Sometimes a little intense. sometimes a little intense I'm a big guy, but a little intense, and you were very, very focused on financial targets. i'm a big guy but a little intense and you were very very focused on financial targets We set them, and you wanted them, and of course, you should have them. we set them and you wanted them and of course you should have them Given the team's performance, it's really no surprise, they set the targets, they exceeded the targets both in 2024 and 2025. given the team's performance it's really no surprise they set the targets they exceeded the targets both in 2024 and 2025 I will say it's a real testament. i will say it's a real testament You can see it on the slide, whether it's FRE growth, FRE margin, inflows. you can see it on the slide whether it's fre growth fre margin inflows It's really evidence of this team's ability to set a strategy, execute a strategy, exceed a target. This discipline that this team has brought to the entire organization and drove these results is now really fundamental to this next phase of growth. Here are the targets. It's very clear to us, we see a path to scaling the platform, and the targets reflect that. Let's just quickly walk through them on the slide. By the end of 2028, we're targeting Fee Related Earnings of $1.9 billion. That's a 15% compound growth rate. $2.8 billion+ in management fees. FRE margin, excuse me, targeting 50%. Cumulative inflows, $200 billion from 2026-2028, and Distributable Earnings per share of $6 or more. It's really evidence of this team's ability to set a strategy, execute a strategy, exceed a target. it's really evidence of this team's ability to set a strategy execute a strategy exceed a target This discipline that this team has brought to the entire organization and drove these results is now really fundamental to this next phase of growth. this discipline that this team has brought to the entire organization and drove these results is now really fundamental to this next phase of growth Here are the targets. here are the targets It's very clear to us, we see a path to scaling the platform, and the targets reflect that. it's very clear to us we see a path to scaling the platform and the targets reflect that Let's just quickly walk through them on the slide. let's just quickly walk through them on the slide By the end of 2028, we're targeting Fee Related Earnings of $1.9 billion. by the end of 2028 we're targeting fee related earnings of $1.9 billion That's a 15% compound growth rate. $2.8 billion+ in management fees. that's a 15% compound growth rate $2.8 billion+ in management fees FRE margin, excuse me, targeting 50%. fre margin excuse me targeting 50% Cumulative inflows, $200 billion from 2026-2028, and Distributable Earnings per share of $6 or more. cumulative inflows $200 billion from 2026-2028 and distributable earnings per share of $6 or more The question you're all asking, of course, is the question you asked me when we put out the first targets, which is: how did you come up with these numbers? How do we set the targets? Super straightforward, bottoms-up build. We don't assume any inorganic growth in these targets, 100% organic. We don't assume any significant strategic transactions. We don't assume any strategic partnerships. This is the fundamental model that we believe we can execute over the next three years. There are no magical surprises that we're hoping occur that we can't identify as we sit here today. How would I describe it? I'd say there's a lot of operational leverage in the plan and upside to what we've laid out today. You can feel the momentum of what we're doing. The question you're all asking, of course, is the question you asked me when we put out the first targets, which is: how did you come up with these numbers? the question you're all asking of course is the question you asked me when we put out the first targets which is how did you come up with these numbers How do we set the targets? how do we set the targets Super straightforward, bottoms-up build. super straightforward bottoms-up build We don't assume any inorganic growth in these targets, 100% organic. we don't assume any inorganic growth in these targets 100% organic We don't assume any significant strategic transactions. we don't assume any significant strategic transactions We don't assume any strategic partnerships. we don't assume any strategic partnerships This is the fundamental model that we believe we can execute over the next three years. this is the fundamental model that we believe we can execute over the next three years There are no magical surprises that we're hoping occur that we can't identify as we sit here today. there are no magical surprises that we're hoping occur that we can't identify as we sit here today How would I describe it? how would i describe it I'd say there's a lot of operational leverage in the plan and upside to what we've laid out today. i'd say there's a lot of operational leverage in the plan and upside to what we've laid out today You can feel the momentum of what we're doing. you can feel the momentum of what we're doing I don't think the firm's ever been as well positioned as it is today, and certainly with this extraordinary team. I, when I showed up at Carlyle, I spent a lot of time externally, a lot of time internally, obviously, and getting to know our teams, and I would speak to our investment professionals, and when I asked them about when they were investing, kinda like to give me a sense of their process. Obviously, it's quite intricate, from diligence to execution. There was one thing that really resonated with me, they said, every time they look at a company, obviously, they do all the mathematical work and the analytics and everything else, but they come back to a fundamental question, which is, what is this company's right to win? What is their right to win? I don't think the firm's ever been as well positioned as it is today, and certainly with this extraordinary team. i don't think the firm's ever been as well positioned as it is today and certainly with this extraordinary team I, when I showed up at Carlyle, I spent a lot of time externally, a lot of time internally, obviously, and getting to know our teams, and I would speak to our investment professionals, and when I asked them about when they were investing, kinda like to give me a sense of their process. i when i showed up at carlyle i spent a lot of time externally a lot of time internally obviously and getting to know our teams and i would speak to our investment professionals and when i asked them about when they were investing kinda like to give me a sense of their process Obviously, it's quite intricate, from diligence to execution. obviously it's quite intricate from diligence to execution There was one thing that really resonated with me, they said, every time they look at a company, obviously, they do all the mathematical work and the analytics and everything else, but they come back to a fundamental question, which is, what is this company's right to win? there was one thing that really resonated with me they said every time they look at a company obviously they do all the mathematical work and the analytics and everything else but they come back to a fundamental question which is what is this company's right to win What is their right to win? what is their right to win When we think about deploying capital on behalf of our clients, we have to ask ourselves, the people that are getting that capital, what's their right to win? Obvious common sense applies. We apply that same lens to ourself. Let me walk you through why we believe these targets are achievable and why we believe we're uniquely positioned to win. We win because we're global but have local expertise. In a de-globalizing, somewhat globally splintering world, this is incredibly powerful. We operate across four continents, deep local knowledge, dedicated funds across global regions. It gives us a lot of advantages, structural advantages in sourcing, building management team relationships, and accessing opportunities. When we think about deploying capital on behalf of our clients, we have to ask ourselves, the people that are getting that capital, what's their right to win? when we think about deploying capital on behalf of our clients we have to ask ourselves the people that are getting that capital what's their right to win Obvious common sense applies. obvious common sense applies We apply that same lens to ourself. we apply that same lens to ourself Let me walk you through why we believe these targets are achievable and why we believe we're uniquely positioned to win. let me walk you through why we believe these targets are achievable and why we believe we're uniquely positioned to win We win because we're global but have local expertise. we win because we're global but have local expertise In a de-globalizing, somewhat globally splintering world, this is incredibly powerful. in a de-globalizing somewhat globally splintering world this is incredibly powerful We operate across four continents, deep local knowledge, dedicated funds across global regions. we operate across four continents deep local knowledge dedicated funds across global regions It gives us a lot of advantages, structural advantages in sourcing, building management team relationships, and accessing opportunities. it gives us a lot of advantages structural advantages in sourcing building management team relationships and accessing opportunities I mentioned before, we have 2,500 employees, 27 offices around the world, but it's not about just the offices and being in the regions, it's how long they've been in the region and the commitment to the region. 39 years, obviously, in the Americas with the launch of the firm, but 29 years in EMEA, 28 years in APAC. Japan just got exciting for everybody in the world. We've been excited about Japan for 25 years since we launched the office, stayed, committed, grew, built relationships, built networks. This is a talent-driven business. The whole firm is about the people. It's also a business like all of you and your, the work you do, it's an experiential business. Reps matter. Just to give you a sense, of the partners at Carlyle, the average tenure is 15 years. I mentioned before, we have 2,500 employees, 27 offices around the world, but it's not about just the offices and being in the regions, it's how long they've been in the region and the commitment to the region. 39 years, obviously, in the Americas with the launch of the firm, but 29 years in EMEA, 28 years in APAC. i mentioned before we have 2,500 employees 27 offices around the world but it's not about just the offices and being in the regions it's how long they've been in the region and the commitment to the region 39 years obviously in the americas with the launch of the firm but 29 years in emea 28 years in apac Japan just got exciting for everybody in the world. japan just got exciting for everybody in the world We've been excited about Japan for 25 years since we launched the office, stayed, committed, grew, built relationships, built networks. we've been excited about japan for 25 years since we launched the office stayed committed grew built relationships built networks This is a talent-driven business. this is a talent-driven business The whole firm is about the people. the whole firm is about the people It's also a business like all of you and your, the work you do, it's an experiential business. it's also a business like all of you and your the work you do it's an experiential business Reps matter. reps matter Just to give you a sense, of the partners at Carlyle, the average tenure is 15 years. just to give you a sense of the partners at carlyle the average tenure is 15 years They have experience, they've seen cycles, they know how to deploy capital, they know how to work with relationships, and they know how to build value. Why else do we win? We win because connectivity is embedded in our model. Since the founding of the firm, we've built one of the most recognized and trusted brands in global finance, and trust is critical. The teams built this over 40 years by creating deep, enduring connections with investors, companies, and stakeholders. We have CEOs that continually come back to the firm to lead portfolio companies because they like Carlyle and our investing teams. It's about trust and the experience they have. What else makes us somewhat unique? Our Washington, D.C. roots. They just differentiate us. They have experience, they've seen cycles, they know how to deploy capital, they know how to work with relationships, and they know how to build value. they have experience they've seen cycles they know how to deploy capital they know how to work with relationships and they know how to build value Why else do we win? why else do we win We win because connectivity is embedded in our model. we win because connectivity is embedded in our model Since the founding of the firm, we've built one of the most recognized and trusted brands in global finance, and trust is critical. since the founding of the firm we've built one of the most recognized and trusted brands in global finance and trust is critical The teams built this over 40 years by creating deep, enduring connections with investors, companies, and stakeholders. the teams built this over 40 years by creating deep enduring connections with investors companies and stakeholders We have CEOs that continually come back to the firm to lead portfolio companies because they like Carlyle and our investing teams. we have ceos that continually come back to the firm to lead portfolio companies because they like carlyle and our investing teams It's about trust and the experience they have. it's about trust and the experience they have What else makes us somewhat unique? what else makes us somewhat unique Our Washington, D.C. roots. our washington d.c roots They just differentiate us. they just differentiate us It's a distinctive insight into policy, regulation, geopolitical dynamics, and obviously, in the current environment and the foreseeable environment, all these factors increasingly shape capital flows and markets, and how capital has to be deployed. A bit of an accident. David grew up in Baltimore, lived in D.C., started the firm, but ended up being a unique advantage. You know, global connectivity, for lack of better language, is not just, like, part of the story as I just described it. It's a structural competitive advantage for Carlyle, and it helps support our sustained growth. Why else do we win? We win because we operate at scale, and we have a diverse revenue stream. There are certainly times when you want to be more monoline focused. There are times you want to be more diversified. It's a distinctive insight into policy, regulation, geopolitical dynamics, and obviously, in the current environment and the foreseeable environment, all these factors increasingly shape capital flows and markets, and how capital has to be deployed. it's a distinctive insight into policy regulation geopolitical dynamics and obviously in the current environment and the foreseeable environment all these factors increasingly shape capital flows and markets and how capital has to be deployed A bit of an accident. a bit of an accident David grew up in Baltimore, lived in D.C., started the firm, but ended up being a unique advantage. david grew up in baltimore lived in d.c started the firm but ended up being a unique advantage You know, global connectivity, for lack of better language, is not just, like, part of the story as I just described it. you know global connectivity for lack of better language is not just like part of the story as i just described it It's a structural competitive advantage for Carlyle, and it helps support our sustained growth. it's a structural competitive advantage for carlyle and it helps support our sustained growth Why else do we win? why else do we win We win because we operate at scale, and we have a diverse revenue stream. we win because we operate at scale and we have a diverse revenue stream There are certainly times when you want to be more monoline focused. there are certainly times when you want to be more monoline focused There are times you want to be more diversified. there are times you want to be more diversified I would argue the current environment, the foreseeable environment, really plays to diversification. You can see this on this slide. We offer a full range of solutions across the platform. We're not wholly dependent on one solution set. You know, from private equity to Carlyle AlpInvest to credit, we have a really diverse set of clients, and the combination allows us, when we go in a room, to talk to the client and help them solve their problem. It's a broad set of solutions that allows us to fit their priorities. The geographic footprint, the breadth of the business lines, and the global client base is diversified. Diversification creates durable earnings across cycles. Today, the discussion's about we don't happen to be a big SaaS player, but when I showed up, everybody told me, "You should have been way bigger in direct lending before you got here, I mean. I would argue the current environment, the foreseeable environment, really plays to diversification. i would argue the current environment the foreseeable environment really plays to diversification You can see this on this slide. you can see this on this slide We offer a full range of solutions across the platform. we offer a full range of solutions across the platform We're not wholly dependent on one solution set. we're not wholly dependent on one solution set You know, from private equity to Carlyle AlpInvest to credit, we have a really diverse set of clients, and the combination allows us, when we go in a room, to talk to the client and help them solve their problem. you know from private equity to carlyle alpinvest to credit we have a really diverse set of clients and the combination allows us when we go in a room to talk to the client and help them solve their problem It's a broad set of solutions that allows us to fit their priorities. it's a broad set of solutions that allows us to fit their priorities The geographic footprint, the breadth of the business lines, and the global client base is diversified. the geographic footprint the breadth of the business lines and the global client base is diversified Diversification creates durable earnings across cycles. diversification creates durable earnings across cycles Today, the discussion's about we don't happen to be a big SaaS player, but when I showed up, everybody told me, "You should have been way bigger in direct lending before you got here, I mean. today the discussion's about we don't happen to be a big saas player but when i showed up everybody told me "you should have been way bigger in direct lending before you got here i mean You should have been way bigger in SaaS." Okay, three years later, now it's a virtue to be smaller in SaaS and still have a great direct lending business, which we can now grow as others retreat. Okay, the world evolves, okay? Diversity underpins the financial architecture of this plan and why we feel confident about the targets. Okay, why else do we feel good? We feel good about this because you know the expression, you want to be, you know, you go... What is it? You want to be where the puck goes. The puck is coming to us. What do I mean by that? The markets today map pretty directly onto our distinctive footprint. A global focus on national security, rising global defense budgets, increasing geopolitical complexity, that's like home turf for our nearly four-decade track record in aerospace, defense, government services. You should have been way bigger in SaaS." Okay, three years later, now it's a virtue to be smaller in SaaS and still have a great direct lending business, which we can now grow as others retreat. you should have been way bigger in saas." okay three years later now it's a virtue to be smaller in saas and still have a great direct lending business which we can now grow as others retreat Okay, the world evolves, okay? okay the world evolves okay Diversity underpins the financial architecture of this plan and why we feel confident about the targets. diversity underpins the financial architecture of this plan and why we feel confident about the targets Okay, why else do we feel good? okay why else do we feel good We feel good about this because you know the expression, you want to be, you know, you go... we feel good about this because you know the expression you want to be you know you go What is it? what is it You want to be where the puck goes. you want to be where the puck goes The puck is coming to us. the puck is coming to us What do I mean by that? what do i mean by that The markets today map pretty directly onto our distinctive footprint. the markets today map pretty directly onto our distinctive footprint A global focus on national security, rising global defense budgets, increasing geopolitical complexity, that's like home turf for our nearly four-decade track record in aerospace, defense, government services. a global focus on national security rising global defense budgets increasing geopolitical complexity that's like home turf for our nearly four-decade track record in aerospace defense government services There is not a country in the world that is not prioritizing national security. We're the only ones that do this at scale for 40 years, nearly 40 years. Everywhere I travel in the world, the discussion is about economic growth. It's not just a U.S. phenomenon, it's everywhere in the world: Japan, Europe, Middle East, Southeast Asia, Canada. Everyone, every prime minister, every official, every company CEO wants to create economic growth. The capital that these companies and governments need, it can't come from the government exclusively. Deficits are too high. There is a unique demand for capital of all forms, by the way, not just private capital, bank capital, but wherever that capital can be sourced, there is a unique demand for capital. It happens to map with our expertise, along with aerospace, defense, and government services. There is not a country in the world that is not prioritizing national security. there is not a country in the world that is not prioritizing national security We're the only ones that do this at scale for 40 years, nearly 40 years. we're the only ones that do this at scale for 40 years nearly 40 years Everywhere I travel in the world, the discussion is about economic growth. everywhere i travel in the world the discussion is about economic growth It's not just a U.S. phenomenon, it's everywhere in the world: Japan, Europe, Middle East, Southeast Asia, Canada. it's not just a u.s phenomenon it's everywhere in the world japan europe middle east southeast asia canada Everyone, every prime minister, every official, every company CEO wants to create economic growth. everyone every prime minister every official every company ceo wants to create economic growth The capital that these companies and governments need, it can't come from the government exclusively. the capital that these companies and governments need it can't come from the government exclusively Deficits are too high. deficits are too high There is a unique demand for capital of all forms, by the way, not just private capital, bank capital, but wherever that capital can be sourced, there is a unique demand for capital. there is a unique demand for capital of all forms by the way not just private capital bank capital but wherever that capital can be sourced there is a unique demand for capital It happens to map with our expertise, along with aerospace, defense, and government services. it happens to map with our expertise along with aerospace defense and government services This cuts across all key industries for us: industrial, financial services, all the real assets that we have decades of experience in. This fits us really, really well. I said this to some reporters. I said, "Who knew the old economy was the new economy?" There's some real traction to that. I also happen to think the new economy is the new economy. All this plays to our power alleys: healthcare, industrials, financial services. This is where we have decades of experience deploying capital, and it's exciting. It cuts across industries, geographies. Again, the capital structure from equity to debt, and again, it's this diversification that makes the earning stream durable and gives us confidence. If one thing's not firing, we're not wholly dependent on it, and the structure of the firm gives it a lot of ballast. This cuts across all key industries for us: industrial, financial services, all the real assets that we have decades of experience in. this cuts across all key industries for us industrial financial services all the real assets that we have decades of experience in This fits us really, really well. this fits us really really well I said this to some reporters. i said this to some reporters I said, "Who knew the old economy was the new economy?" There's some real traction to that. i said "who knew the old economy was the new economy?" there's some real traction to that I also happen to think the new economy is the new economy. i also happen to think the new economy is the new economy All this plays to our power alleys: healthcare, industrials, financial services. all this plays to our power alleys healthcare industrials financial services This is where we have decades of experience deploying capital, and it's exciting. this is where we have decades of experience deploying capital and it's exciting It cuts across industries, geographies. it cuts across industries geographies Again, the capital structure from equity to debt, and again, it's this diversification that makes the earning stream durable and gives us confidence. again the capital structure from equity to debt and again it's this diversification that makes the earning stream durable and gives us confidence If one thing's not firing, we're not wholly dependent on it, and the structure of the firm gives it a lot of ballast. if one thing's not firing we're not wholly dependent on it and the structure of the firm gives it a lot of ballast You know, the secondaries business, the primary private equity business, they can both fire at the same time, but there's ballast in that mix, and it's pretty fantastic for us. As we look ahead, we've organized around three firm-wide priorities: delivering exceptional investment performance, scaling the platform advantages that we have, and accelerating high-growth opportunities. You know, these priorities, they're not independent of each other. You know, they reinforce each other, and they compound over time. You know, the secondaries business, the primary private equity business, they can both fire at the same time, but there's ballast in that mix, and it's pretty fantastic for us. you know the secondaries business the primary private equity business they can both fire at the same time but there's ballast in that mix and it's pretty fantastic for us As we look ahead, we've organized around three firm-wide priorities: delivering exceptional investment performance, scaling the platform advantages that we have, and accelerating high-growth opportunities. as we look ahead we've organized around three firm-wide priorities delivering exceptional investment performance scaling the platform advantages that we have and accelerating high-growth opportunities You know, these priorities, they're not independent of each other. you know these priorities they're not independent of each other You know, they reinforce each other, and they compound over time. you know they reinforce each other and they compound over time Look, you're gonna hear a lot more about each of them today from Mark, Jeff, John, Lindsay, and Justin, and from the panels. They'll take you through deeper how we plan to execute. Again, most importantly, we truly appreciate you being here. We truly appreciate you supporting Carlyle. Look, you're gonna hear a lot more about each of them today from Mark, Jeff, John, Lindsay, and Justin, and from the panels. look you're gonna hear a lot more about each of them today from mark jeff john lindsay and justin and from the panels They'll take you through deeper how we plan to execute. they'll take you through deeper how we plan to execute Again, most importantly, we truly appreciate you being here. again most importantly we truly appreciate you being here We truly appreciate you supporting Carlyle. we truly appreciate you supporting carlyle We appreciate you challenging Carlyle. Again, never hurts my feelings. We love your feedback. It's actually been quite helpful for me over the last three years, joining Carlyle and hearing all your thoughts. Mostly, we appreciate you being here today and engaging us. Everybody, thanks so much. We appreciate you challenging Carlyle. we appreciate you challenging carlyle Again, never hurts my feelings. again never hurts my feelings We love your feedback. we love your feedback It's actually been quite helpful for me over the last three years, joining Carlyle and hearing all your thoughts. it's actually been quite helpful for me over the last three years joining carlyle and hearing all your thoughts Mostly, we appreciate you being here today and engaging us. mostly we appreciate you being here today and engaging us Everybody, thanks so much. everybody thanks so much

Speaker 20: Please welcome Jeff Nedelman. Please welcome Jeff Nedelman. please welcome jeff nedelman

Speaker 9: Thank you, Harvey. And by the way, before I start, I've worked with Harvey for 20 years, you know that puck analogy? That was gonna be my analogy and my presentation, just to let you know. By the way, for those of you who don't know, that's Wayne Gretzky on where the puck's gonna go. Again, thank you very much, Harvey, and thanks to everybody in the room. I am Jeff Nedelman. I'm Co-President of Carlyle, and I lead the Global Client business. Our strategy is simple: It begins and ends with our clients and the solutions we create on their behalf. This really isn't a tagline, it's an operating principle. It's what I think of as our Rosetta Stone, the lens through which every decision in the business gets made. Thank you, Harvey. thank you harvey And by the way, before I start, I've worked with Harvey for 20 years, you know that puck analogy? and by the way before i start i've worked with harvey for 20 years you know that puck analogy That was gonna be my analogy and my presentation, just to let you know. that was gonna be my analogy and my presentation just to let you know By the way, for those of you who don't know, that's Wayne Gretzky on where the puck's gonna go. by the way for those of you who don't know that's wayne gretzky on where the puck's gonna go Again, thank you very much, Harvey, and thanks to everybody in the room. again thank you very much harvey and thanks to everybody in the room I am Jeff Nedelman. i am jeff nedelman I'm Co-President of Carlyle, and I lead the Global Client business. i'm co-president of carlyle and i lead the global client business Our strategy is simple: It begins and ends with our clients and the solutions we create on their behalf. our strategy is simple it begins and ends with our clients and the solutions we create on their behalf This really isn't a tagline, it's an operating principle. this really isn't a tagline it's an operating principle It's what I think of as our Rosetta Stone, the lens through which every decision in the business gets made. it's what i think of as our rosetta stone the lens through which every decision in the business gets made Everything I'm gonna walk you through today, the organizational changes, the talent we brought in, the products we built, the channels we're targeting, it all flows from the single commitment of our clients and solutions. You got an essence of this when Harvey spoke, and you see a lot of our intellectual capital in this slide, what connected me to an institution like Carlyle is the power of this brand. What does that mean? It's long-term track record, it's diversified and durable client base, and the ability to convene and connect on a global scale. Whether we're in Davos meeting thought leaders, or in Singapore with the Sovereign Wealth Fund, or in a wealth advisor's office in Texas or California, our brand is consistent and our partners always lean in. Everything I'm gonna walk you through today, the organizational changes, the talent we brought in, the products we built, the channels we're targeting, it all flows from the single commitment of our clients and solutions. everything i'm gonna walk you through today the organizational changes the talent we brought in the products we built the channels we're targeting it all flows from the single commitment of our clients and solutions You got an essence of this when Harvey spoke, and you see a lot of our intellectual capital in this slide, what connected me to an institution like Carlyle is the power of this brand. you got an essence of this when harvey spoke and you see a lot of our intellectual capital in this slide what connected me to an institution like carlyle is the power of this brand What does that mean? what does that mean It's long-term track record, it's diversified and durable client base, and the ability to convene and connect on a global scale. it's long-term track record it's diversified and durable client base and the ability to convene and connect on a global scale Whether we're in Davos meeting thought leaders, or in Singapore with the Sovereign Wealth Fund, or in a wealth advisor's office in Texas or California, our brand is consistent and our partners always lean in. whether we're in davos meeting thought leaders or in singapore with the sovereign wealth fund or in a wealth advisor's office in texas or california our brand is consistent and our partners always lean in A lot has happened in the last three years, and the power of the brand allowed me to optimize our client business strategy. This is really almost a three-year look back on some of the things that have happened and the milestones: org redesign, prioritizing talent, solution-focused, advanced analytics. Hey, just very quickly on advanced analytics, Harvey uses a term called clever. We want our salespeople to be clever how we use data science and AI, and Lucia will talk about that later today. Really, on org design, we transitioned from a single product mentality to a genuinely client-centric, multi-product model, not in name, but in how we're structured, how we're incentivized, and how we show up for clients every day. As importantly, we integrated global wealth into the heart of the platform. A lot has happened in the last three years, and the power of the brand allowed me to optimize our client business strategy. a lot has happened in the last three years and the power of the brand allowed me to optimize our client business strategy This is really almost a three-year look back on some of the things that have happened and the milestones: org redesign, prioritizing talent, solution-focused, advanced analytics. this is really almost a three-year look back on some of the things that have happened and the milestones org redesign prioritizing talent solution-focused advanced analytics Hey, just very quickly on advanced analytics, Harvey uses a term called clever. hey just very quickly on advanced analytics harvey uses a term called clever We want our salespeople to be clever how we use data science and AI, and Lucia will talk about that later today. we want our salespeople to be clever how we use data science and ai and lucia will talk about that later today Really, on org design, we transitioned from a single product mentality to a genuinely client-centric, multi-product model, not in name, but in how we're structured, how we're incentivized, and how we show up for clients every day. really on org design we transitioned from a single product mentality to a genuinely client-centric multi-product model not in name but in how we're structured how we're incentivized and how we show up for clients every day As importantly, we integrated global wealth into the heart of the platform. as importantly we integrated global wealth into the heart of the platform You know, on talent acquisition, the people behind this transformation, our goal always and will be to find the best talent, whether within our organization or externally. Internally, we did that with new leadership in AlpInvest, credit sales, and the U.S. institutional business, but we also made several senior hires align with our strategic priorities. Shane will talk later, be part of a panel, so I'll mention him by name, but we hired Shane in 2023 to redesign our wealth business. In a short time, he and his team and us created a durable, diversified business, which gives us the right to win in wealth. In the last six months, we hired an exceptional person from Goldman Sachs to head our North American client business. You know, on talent acquisition, the people behind this transformation, our goal always and will be to find the best talent, whether within our organization or externally. you know on talent acquisition the people behind this transformation our goal always and will be to find the best talent whether within our organization or externally Internally, we did that with new leadership in AlpInvest, credit sales, and the U.S. institutional business, but we also made several senior hires align with our strategic priorities. internally we did that with new leadership in alpinvest credit sales and the u.s institutional business but we also made several senior hires align with our strategic priorities Shane will talk later, be part of a panel, so I'll mention him by name, but we hired Shane in 2023 to redesign our wealth business. shane will talk later be part of a panel so i'll mention him by name but we hired shane in 2023 to redesign our wealth business In a short time, he and his team and us created a durable, diversified business, which gives us the right to win in wealth. in a short time he and his team and us created a durable diversified business which gives us the right to win in wealth In the last six months, we hired an exceptional person from Goldman Sachs to head our North American client business. in the last six months we hired an exceptional person from goldman sachs to head our north american client business We leveraged her dual fluency in both the institutional and wealth businesses to deepen our presence in both channels and manage our people. She's got exceptional EQ. Finally, in the last few months, we hired a 25-year thought leader to actually lead our retirement business, building solutions for the 401(k) channel, defined contribution, and plan sponsor community. Let me walk you through the key goals for the client business and the way we think about this. Priority one, grow a diversified and durable client base, deliver exceptional performance, be a solutions first partner, invest in talent. Priority two, scale and expand our client solutions, exceed $200 billion of inflows over the next 3 years, scale our flagship strategies, deepen partnerships, and expand into key channels. We leveraged her dual fluency in both the institutional and wealth businesses to deepen our presence in both channels and manage our people. we leveraged her dual fluency in both the institutional and wealth businesses to deepen our presence in both channels and manage our people She's got exceptional EQ. she's got exceptional eq Finally, in the last few months, we hired a 25-year thought leader to actually lead our retirement business, building solutions for the 401(k) channel, defined contribution, and plan sponsor community. finally in the last few months we hired a 25-year thought leader to actually lead our retirement business building solutions for the 401(k) channel defined contribution and plan sponsor community Let me walk you through the key goals for the client business and the way we think about this. let me walk you through the key goals for the client business and the way we think about this Priority one, grow a diversified and durable client base, deliver exceptional performance, be a solutions first partner, invest in talent. priority one grow a diversified and durable client base deliver exceptional performance be a solutions first partner invest in talent Priority two, scale and expand our client solutions, exceed $200 billion of inflows over the next 3 years, scale our flagship strategies, deepen partnerships, and expand into key channels. priority two scale and expand our client solutions exceed $200 billion of inflows over the next 3 years scale our flagship strategies deepen partnerships and expand into key channels Priority three, drive excellence in wealth, expand and innovate our product suite, strengthen RIA channel penetration, engage and educate our client base. The wealth opportunity is generational. We are built for it. You know, you're going to hear a lot about performance and exceptional performance. Before I talk about these goals in detail, I want to state the obvious: Any client conversation starts with exceptional performance. Performance is the price of admission in our business. It's purely just table stakes. The foundation of everything we do is rooted in the client relationship. Let me share a dashboard about our clients and our team. I do love this slide, too. We have 32 limited partners across 87 countries. That's not a client list, that's a relationship map built over 40 years. Priority three, drive excellence in wealth, expand and innovate our product suite, strengthen RIA channel penetration, engage and educate our client base. priority three drive excellence in wealth expand and innovate our product suite strengthen ria channel penetration engage and educate our client base The wealth opportunity is generational. the wealth opportunity is generational We are built for it. we are built for it You know, you're going to hear a lot about performance and exceptional performance. you know you're going to hear a lot about performance and exceptional performance Before I talk about these goals in detail, I want to state the obvious: Any client conversation starts with exceptional performance. before i talk about these goals in detail i want to state the obvious any client conversation starts with exceptional performance Performance is the price of admission in our business. performance is the price of admission in our business It's purely just table stakes. it's purely just table stakes The foundation of everything we do is rooted in the client relationship. the foundation of everything we do is rooted in the client relationship Let me share a dashboard about our clients and our team. let me share a dashboard about our clients and our team I do love this slide, too. i do love this slide too We have 32 limited partners across 87 countries. we have 32 limited partners across 87 countries That's not a client list, that's a relationship map built over 40 years. that's not a client list that's a relationship map built over 40 years In the last three years, we've added 450 new limited partners, while simultaneously seeing 250 existing LPs expand into multiple Carlyle strategies. That's simply cross-selling. Our clients average 11 years with Carlyle. In wealth alone, we've developed over 200 distribution relationships. I'll talk about that in a bit. Today, our sales team is 274 people strong, operating across 27 global offices, and our investor relation partners average 11 years at the firm. This is something we're exceptionally proud of. How do we source capital globally? This is a 2023 to 2025 chart. Since 2023, we've sourced capital on every major continent: $110 billion from the Americas, $24 billion from APAC, $15 billion from Europe, $9 billion from MENA. In the last three years, we've added 450 new limited partners, while simultaneously seeing 250 existing LPs expand into multiple Carlyle strategies. in the last three years we've added 450 new limited partners while simultaneously seeing 250 existing lps expand into multiple carlyle strategies That's simply cross-selling. that's simply cross-selling Our clients average 11 years with Carlyle. our clients average 11 years with carlyle In wealth alone, we've developed over 200 distribution relationships. in wealth alone we've developed over 200 distribution relationships I'll talk about that in a bit. i'll talk about that in a bit Today, our sales team is 274 people strong, operating across 27 global offices, and our investor relation partners average 11 years at the firm. today our sales team is 274 people strong operating across 27 global offices and our investor relation partners average 11 years at the firm This is something we're exceptionally proud of. this is something we're exceptionally proud of How do we source capital globally? how do we source capital globally This is a 2023 to 2025 chart. this is a 2023 to 2025 chart Since 2023, we've sourced capital on every major continent: $110 billion from the Americas, $24 billion from APAC, $15 billion from Europe, $9 billion from MENA. since 2023 we've sourced capital on every major continent $110 billion from the americas $24 billion from apac $15 billion from europe $9 billion from mena Our clients are everywhere their capital is deployed, and our team is structured to meet them where they are, in their language, and the context that matters to them. Again, local to local. Okay, Harvey did it, but everyone gets to at least use one sports analogy in their presentation. When we think about Wayne Gretzky and where the puck's going, this is where I think the puck's going, and we think the puck's going. Of course, the puck's going to retirement. That's a $44 trillion TAM. It's the largest pool of capital in the world, it will increase its allocation to the private markets. Our goal is to build a focused business around the defined contribution and 401 opportunity. What does that mean? We plan to be key to the ecosystem of plan sponsors, financial advisors, managed account providers, and record keepers. Our clients are everywhere their capital is deployed, and our team is structured to meet them where they are, in their language, and the context that matters to them. our clients are everywhere their capital is deployed and our team is structured to meet them where they are in their language and the context that matters to them Again, local to local. again local to local Okay, Harvey did it, but everyone gets to at least use one sports analogy in their presentation. okay harvey did it but everyone gets to at least use one sports analogy in their presentation When we think about Wayne Gretzky and where the puck's going, this is where I think the puck's going, and we think the puck's going. when we think about wayne gretzky and where the puck's going this is where i think the puck's going and we think the puck's going Of course, the puck's going to retirement. of course the puck's going to retirement That's a $44 trillion TAM. that's a $44 trillion tam It's the largest pool of capital in the world, it will increase its allocation to the private markets. it's the largest pool of capital in the world it will increase its allocation to the private markets Our goal is to build a focused business around the defined contribution and 401 opportunity. our goal is to build a focused business around the defined contribution and 401 opportunity What does that mean? what does that mean We plan to be key to the ecosystem of plan sponsors, financial advisors, managed account providers, and record keepers. we plan to be key to the ecosystem of plan sponsors financial advisors managed account providers and record keepers The puck also goes to the RIAs, the fastest growing distribution channel in wealth management. I call them the hyperscalers, gaining market share and massive asset flows. They are a key distribution channel for the next generation of products, but are also our next generation of model portfolios. Lastly, the puck is going to family offices, $5 trillion TAM. Sophisticated investors want institutional quality access. Carlyle's brand, track record, and intellectual capital resonates deeply here. We've built the team, we've deepened our client relationships. Now let me share some key financial results. This is our 2025 scorecard. In 2025, we raised $54 billion, we beat our internal $40 billion target by 35%. What's nice is we source capital from a diverse, durable client base: pensions, sovereign wealth funds, family offices, private wealth partners, foundations and endowments, and insurance clients. The puck also goes to the RIAs, the fastest growing distribution channel in wealth management. the puck also goes to the rias the fastest growing distribution channel in wealth management I call them the hyperscalers, gaining market share and massive asset flows. i call them the hyperscalers gaining market share and massive asset flows They are a key distribution channel for the next generation of products, but are also our next generation of model portfolios. they are a key distribution channel for the next generation of products but are also our next generation of model portfolios Lastly, the puck is going to family offices, $5 trillion TAM. lastly the puck is going to family offices $5 trillion tam Sophisticated investors want institutional quality access. sophisticated investors want institutional quality access Carlyle's brand, track record, and intellectual capital resonates deeply here. carlyle's brand track record and intellectual capital resonates deeply here We've built the team, we've deepened our client relationships. we've built the team we've deepened our client relationships Now let me share some key financial results. now let me share some key financial results This is our 2025 scorecard. this is our 2025 scorecard In 2025, we raised $54 billion, we beat our internal $40 billion target by 35%. in 2025 we raised $54 billion we beat our internal $40 billion target by 35% What's nice is we source capital from a diverse, durable client base: pensions, sovereign wealth funds, family offices, private wealth partners, foundations and endowments, and insurance clients. what's nice is we source capital from a diverse durable client base pensions sovereign wealth funds family offices private wealth partners foundations and endowments and insurance clients Over the last three years, we raised capital across 30 different strategies. You know, this is exceptionally important for a variety of reasons. The first thing is, our clients tell us repeatedly they want a solutions provider. They don't want a vendor, a partner who can meet them across their portfolios, across asset classes, geographies, and risk profiles. You know, when I look at this, I see, yes, US Buyout IX, I see Japan Partners, I see US Real Estate X, I see SECF IV, I see Secondaries IX. Here's why this breadth matters so much right now. Almost every solution on our platform will be in the market in the next three years. This is what powers the multi-year super cycle. It's not about macroeconomic tailwinds, it's about our calendar, our platform, and our client relationships converging at exactly the right moment. Over the last three years, we raised capital across 30 different strategies. over the last three years we raised capital across 30 different strategies You know, this is exceptionally important for a variety of reasons. you know this is exceptionally important for a variety of reasons The first thing is, our clients tell us repeatedly they want a solutions provider. the first thing is our clients tell us repeatedly they want a solutions provider They don't want a vendor, a partner who can meet them across their portfolios, across asset classes, geographies, and risk profiles. they don't want a vendor a partner who can meet them across their portfolios across asset classes geographies and risk profiles You know, when I look at this, I see, yes, US Buyout IX, I see Japan Partners, I see US Real Estate X, I see SECF IV, I see Secondaries IX. you know when i look at this i see yes us buyout ix i see japan partners i see us real estate x i see secf iv i see secondaries ix Here's why this breadth matters so much right now. here's why this breadth matters so much right now Almost every solution on our platform will be in the market in the next three years. almost every solution on our platform will be in the market in the next three years This is what powers the multi-year super cycle. this is what powers the multi-year super cycle It's not about macroeconomic tailwinds, it's about our calendar, our platform, and our client relationships converging at exactly the right moment. it's not about macroeconomic tailwinds it's about our calendar our platform and our client relationships converging at exactly the right moment Running across all of it, Global Wealth, bringing evergreen access to this entire platform. You heard this from Harvey, but this brings us to our new target of $200 billion+ of inflows by 2028, and we intend to exceed it. The composition tells the story: $50 billion from Global Private Equity, $90 billion from Global Credit & Insurance, and $60 billion from Carlyle AlpInvest. Every business contributes, every channel is activated. $40 billion of that, or 20%, will come from wealth evergreen solutions alone, a business that barely existed here three years ago. Slightly repetitive, but I want to do this again. I want to connect this back to what I said on the last slide. The reason $200 billion is achievable, the reason it's not aspirational but structural, because every key Carlyle strategy comes back to the market in this window. Running across all of it, Global Wealth, bringing evergreen access to this entire platform. running across all of it global wealth bringing evergreen access to this entire platform You heard this from Harvey, but this brings us to our new target of $200 billion+ of inflows by 2028, and we intend to exceed it. you heard this from harvey but this brings us to our new target of $200 billion+ of inflows by 2028 and we intend to exceed it The composition tells the story: $50 billion from Global Private Equity, $90 billion from Global Credit & Insurance, and $60 billion from Carlyle AlpInvest. the composition tells the story $50 billion from global private equity $90 billion from global credit & insurance and $60 billion from carlyle alpinvest Every business contributes, every channel is activated. $40 billion of that, or 20%, will come from wealth evergreen solutions alone, a business that barely existed here three years ago. every business contributes every channel is activated $40 billion of that or 20% will come from wealth evergreen solutions alone a business that barely existed here three years ago Slightly repetitive, but I want to do this again. slightly repetitive but i want to do this again I want to connect this back to what I said on the last slide. i want to connect this back to what i said on the last slide The reason $200 billion is achievable, the reason it's not aspirational but structural, because every key Carlyle strategy comes back to the market in this window. the reason $200 billion is achievable the reason it's not aspirational but structural because every key carlyle strategy comes back to the market in this window The demand is built into the cadence of our platform. I want to talk about where the biggest client opportunity is and how Carlyle is positioned to win it. This is what I think about in the long game. You know, the adoption of private markets and wealth, I intellectually call this the direction of travel. Obviously, it's topical right now and well disseminated. It's hard to predict if the direction of travel is linear growth, geometric growth, parabolic growth, and it's also hard to predict the timing. I'm going to reiterate something that everybody knows, the pure opportunity set in wealth. If you look at this, alternatives represent only 3% of high net worth portfolios. That's a four and a half trillion against a $150 trillion individual wealth market. The demand is built into the cadence of our platform. the demand is built into the cadence of our platform I want to talk about where the biggest client opportunity is and how Carlyle is positioned to win it. i want to talk about where the biggest client opportunity is and how carlyle is positioned to win it This is what I think about in the long game. this is what i think about in the long game You know, the adoption of private markets and wealth, I intellectually call this the direction of travel. you know the adoption of private markets and wealth i intellectually call this the direction of travel Obviously, it's topical right now and well disseminated. obviously it's topical right now and well disseminated It's hard to predict if the direction of travel is linear growth, geometric growth, parabolic growth, and it's also hard to predict the timing. it's hard to predict if the direction of travel is linear growth geometric growth parabolic growth and it's also hard to predict the timing I'm going to reiterate something that everybody knows, the pure opportunity set in wealth. i'm going to reiterate something that everybody knows the pure opportunity set in wealth If you look at this, alternatives represent only 3% of high net worth portfolios. if you look at this alternatives represent only 3% of high net worth portfolios That's a four and a half trillion against a $150 trillion individual wealth market. that's a four and a half trillion against a $150 trillion individual wealth market In 10 years, depending on what third party you believe, that allocation is projected to nearly triple, reaching $12 trillion. The direction of travel is robust. I also, in my own mind, think about this as a superhighway. What specific lane do you choose to play in? Carlyle will continue to be product quality, structural integrity, client education, and client trust. Lastly, we'll play the systematic long game as we continue to scale and build new and diversified solutions for the wealth channel. This is a bucket list of almost success, so let me spend a minute on the success of our wealth management business in the last three years. Congratulations to Shane and his team. On evergreen products, from three to nine, a threefold expansion of the solutions we can put in front of wealth clients. In 10 years, depending on what third party you believe, that allocation is projected to nearly triple, reaching $12 trillion. in 10 years depending on what third party you believe that allocation is projected to nearly triple reaching $12 trillion The direction of travel is robust. the direction of travel is robust I also, in my own mind, think about this as a superhighway. i also in my own mind think about this as a superhighway What specific lane do you choose to play in? what specific lane do you choose to play in Carlyle will continue to be product quality, structural integrity, client education, and client trust. carlyle will continue to be product quality structural integrity client education and client trust Lastly, we'll play the systematic long game as we continue to scale and build new and diversified solutions for the wealth channel. lastly we'll play the systematic long game as we continue to scale and build new and diversified solutions for the wealth channel This is a bucket list of almost success, so let me spend a minute on the success of our wealth management business in the last three years. this is a bucket list of almost success so let me spend a minute on the success of our wealth management business in the last three years Congratulations to Shane and his team. congratulations to shane and his team On evergreen products, from three to nine, a threefold expansion of the solutions we can put in front of wealth clients. on evergreen products from three to nine a threefold expansion of the solutions we can put in front of wealth clients On dedicated professionals, 46 to over 110, more than doubled, because you can't serve a growing client base without growing the team to match. On evergreen AUMs, 3x growth in three years. That's the market responding to what we're building or what I think of as proof of concept. Lastly, and this is very key, distribution relationships from 120-200, 'cause the best products mean nothing if it can't reach the client. We've invested in distribution the same way we've invested in everything else, deliberately and at scale. Our wealth strategy has two big gears: scale what's working and build what's next. Today, we're scaling our platform strategies, we have acronyms from everything, CTAC, CAPM, and CPEP, the flagship evergreen vehicles that have already earned client trust and capital. On dedicated professionals, 46 to over 110, more than doubled, because you can't serve a growing client base without growing the team to match. on dedicated professionals 46 to over 110 more than doubled because you can't serve a growing client base without growing the team to match On evergreen AUMs, 3 x growth in three years. on evergreen aums 3 x growth in three years That's the market responding to what we're building or what I think of as proof of concept. that's the market responding to what we're building or what i think of as proof of concept Lastly, and this is very key, distribution relationships from 120 - 200, 'cause the best products mean nothing if it can't reach the client. lastly and this is very key distribution relationships from 120 - 200 'cause the best products mean nothing if it can't reach the client We've invested in distribution the same way we've invested in everything else, deliberately and at scale. we've invested in distribution the same way we've invested in everything else deliberately and at scale Our wealth strategy has two big gears: scale what's working and build what's next. our wealth strategy has two big gears scale what's working and build what's next Today, we're scaling our platform strategies, we have acronyms from everything, CTAC, CAPM, and CPEP, the flagship evergreen vehicles that have already earned client trust and capital. today we're scaling our platform strategies we have acronyms from everything ctac capm and cpep the flagship evergreen vehicles that have already earned client trust and capital These are the engines of our current wealth growth. Then on a three-year look, 2026-2028, we have a clear build-out agenda. Our Asset-Backed Finance and our CIT build on the retirement channel are closest in scope. Every product we build starts with the same question: What is the client need that they can't get today? That's the filter. That's the absolute discipline. I'm very proud of this. This was a lot of time and effort for many people here. In wealth, product is only half the equation. The other half is something we call reach, getting our solutions in front of the right clients through the right advisors at the right moment. Our collaboration with UBS on what we call CAPS is a perfect example. These are the engines of our current wealth growth. these are the engines of our current wealth growth Then on a three-year look, 2026-2028, we have a clear build-out agenda. then on a three-year look 2026-2028 we have a clear build-out agenda Our Asset-Backed Finance and our CIT build on the retirement channel are closest in scope. our asset-backed finance and our cit build on the retirement channel are closest in scope Every product we build starts with the same question: What is the client need that they can't get today? every product we build starts with the same question what is the client need that they can't get today That's the filter. that's the filter That's the absolute discipline. that's the absolute discipline I'm very proud of this. i'm very proud of this This was a lot of time and effort for many people here. this was a lot of time and effort for many people here In wealth, product is only half the equation. in wealth product is only half the equation The other half is something we call reach, getting our solutions in front of the right clients through the right advisors at the right moment. the other half is something we call reach getting our solutions in front of the right clients through the right advisors at the right moment Our collaboration with UBS on what we call CAPS is a perfect example. our collaboration with ubs on what we call caps is a perfect example You see Carlyle AlpInvest, 25 years of experience executing complex secondary transactions globally, $46 billion in secondaries, 250 unique investments since inception, deep expertise, proven track record. The other hand, UBS, $330 billion combined of invested assets, a global network drives a robust deal funnel, and one of the most powerful distribution platforms in wealth management. You look at this, the result is a product called CAPS, a vehicle designed specifically around wealth clients, what wealth clients need. Institutional quality, secondaries exposure, with the accessibility and structure that the wealth channel requires. Simply, this is where expertise meets reach. For all you possible F1 gearheads, that is the new car for next year, okay? Just to be clear. You see Carlyle AlpInvest, 25 years of experience executing complex secondary transactions globally, $46 billion in secondaries, 250 unique investments since inception, deep expertise, proven track record. you see carlyle alpinvest 25 years of experience executing complex secondary transactions globally $46 billion in secondaries 250 unique investments since inception deep expertise proven track record The other hand, UBS, $330 billion combined of invested assets, a global network drives a robust deal funnel, and one of the most powerful distribution platforms in wealth management. the other hand ubs $330 billion combined of invested assets a global network drives a robust deal funnel and one of the most powerful distribution platforms in wealth management You look at this, the result is a product called CAPS, a vehicle designed specifically around wealth clients, what wealth clients need. you look at this the result is a product called caps a vehicle designed specifically around wealth clients what wealth clients need Institutional quality, secondaries exposure, with the accessibility and structure that the wealth channel requires. institutional quality secondaries exposure with the accessibility and structure that the wealth channel requires Simply, this is where expertise meets reach. simply this is where expertise meets reach For all you possible F1 gearheads, that is the new car for next year, okay? for all you possible f1 gearheads that is the new car for next year okay Just to be clear. just to be clear Again, to emphasize expertise and reach, this is the new Oracle Red Bull car, and it's where we partner with a technology-forward, performance-driven organization, Oracle Red Bull. As it relates to F1 and demographics, it's pretty extraordinary. 827 million fans with exceptional age and gender demographics. The partnership alone has generated $325 million in total media reach and $72 million in equivalent advertising exposure. For instance, when Harvey appears on CNBC with the Oracle Red Bull team manager, Laurent Mekies, we're able to connect to a vast audience, 500,000 strong. Again, this is where expertise meets reach. This brings me to our targets for the wealth business. We're targeting $40 billion in wealth evergreen inflows from 2026 to 2028, more than 3x the $12 billion we raised in the prior three-year period. Again, to emphasize expertise and reach, this is the new Oracle Red Bull car, and it's where we partner with a technology-forward, performance-driven organization, Oracle Red Bull. again to emphasize expertise and reach this is the new oracle red bull car and it's where we partner with a technology-forward performance-driven organization oracle red bull As it relates to F1 and demographics, it's pretty extraordinary. 827 million fans with exceptional age and gender demographics. as it relates to f1 and demographics it's pretty extraordinary 827 million fans with exceptional age and gender demographics The partnership alone has generated $325 million in total media reach and $72 million in equivalent advertising exposure. the partnership alone has generated $325 million in total media reach and $72 million in equivalent advertising exposure For instance, when Harvey appears on CNBC with the Oracle Red Bull team manager, Laurent Mekies, we're able to connect to a vast audience, 500,000 strong. for instance when harvey appears on cnbc with the oracle red bull team manager laurent mekies we're able to connect to a vast audience 500,000 strong Again, this is where expertise meets reach. again this is where expertise meets reach This brings me to our targets for the wealth business. this brings me to our targets for the wealth business We're targeting $40 billion in wealth evergreen inflows from 2026 to 2028, more than 3x the $12 billion we raised in the prior three-year period. we're targeting $40 billion in wealth evergreen inflows from 2026 to 2028 more than 3x the $12 billion we raised in the prior three-year period The growth will benefit from the same super cycle effect I mentioned earlier. Each business segment will contribute to enhancing our wealth platform to meet client demand. The three things I want to leave you with today. One, performance first and solutions first approach. Two, we will continue to grow our wealth franchise methodically. The long-term structural shift into alternatives is underway. We build our wealth business the right way, the right products, the right team, and the right partners. Three, most importantly, deliver $200 billion of inflows by 2028, I want to be specific about why this is achievable. Again, every major Carlyle solution across every business segment comes back to market in the next three years. The super cycle isn't a vision, it's our fundraising calendar, and it points directly to $200 billion+. The growth will benefit from the same super cycle effect I mentioned earlier. the growth will benefit from the same super cycle effect i mentioned earlier Each business segment will contribute to enhancing our wealth platform to meet client demand. each business segment will contribute to enhancing our wealth platform to meet client demand The three things I want to leave you with today. the three things i want to leave you with today One, performance first and solutions first approach. one performance first and solutions first approach Two, we will continue to grow our wealth franchise methodically. two we will continue to grow our wealth franchise methodically The long-term structural shift into alternatives is underway. the long-term structural shift into alternatives is underway We build our wealth business the right way, the right products, the right team, and the right partners. we build our wealth business the right way the right products the right team and the right partners Three, most importantly, deliver $200 billion of inflows by 2028, I want to be specific about why this is achievable. three most importantly deliver $200 billion of inflows by 2028 i want to be specific about why this is achievable Again, every major Carlyle solution across every business segment comes back to market in the next three years. again every major carlyle solution across every business segment comes back to market in the next three years The super cycle isn't a vision, it's our fundraising calendar, and it points directly to $200 billion +. the super cycle isn't a vision it's our fundraising calendar and it points directly to $200 billion + I'm going to end where I began, which is clients and solutions, relentless and methodical. The team we built, the channels we're targeting, the partnerships we're forming, the products we're creating, all of it exists to serve one purpose, to be the best partner. Thank you very much. I'm going to end where I began, which is clients and solutions, relentless and methodical. i'm going to end where i began which is clients and solutions relentless and methodical The team we built, the channels we're targeting, the partnerships we're forming, the products we're creating, all of it exists to serve one purpose, to be the best partner. the team we built the channels we're targeting the partnerships we're forming the products we're creating all of it exists to serve one purpose to be the best partner Thank you very much. thank you very much

Speaker 20: Please welcome Mark Jenkins. Please welcome Mark Jenkins. please welcome mark jenkins

Speaker 14: Well, thank you, Jeff. I'm Mark Jenkins. I'm responsible for Global Credit Insurance. Two areas I'm happy to see is not getting much focus on in the news lately. As Harvey mentioned in his opening remarks, Carlyle's Global Credit platform really represents the continuation of a strategy and a growth story, whose foundation and differentiated strategy we started almost 10 years ago today. Today, I want to provide you with an overview of our Global Credit business, how we've built a differentiated platform, and why we have extremely strong conviction in our continued growth opportunities going forward. Global Credit is a purpose-built platform that delivers solutions to both our borrowers and investors. It's a scale-diversified platform with over $211 billion of AUM and continues to grow. Well, thank you, Jeff. well thank you jeff I'm Mark Jenkins. i'm mark jenkins I'm responsible for Global Credit Insurance. i'm responsible for global credit insurance Two areas I'm happy to see is not getting much focus on in the news lately. two areas i'm happy to see is not getting much focus on in the news lately As Harvey mentioned in his opening remarks, Carlyle's Global Credit platform really represents the continuation of a strategy and a growth story, whose foundation and differentiated strategy we started almost 10 years ago today. as harvey mentioned in his opening remarks carlyle's global credit platform really represents the continuation of a strategy and a growth story whose foundation and differentiated strategy we started almost 10 years ago today Today, I want to provide you with an overview of our Global Credit business, how we've built a differentiated platform, and why we have extremely strong conviction in our continued growth opportunities going forward. today i want to provide you with an overview of our global credit business how we've built a differentiated platform and why we have extremely strong conviction in our continued growth opportunities going forward Global Credit is a purpose-built platform that delivers solutions to both our borrowers and investors. global credit is a purpose-built platform that delivers solutions to both our borrowers and investors It's a scale-diversified platform with over $211 billion of AUM and continues to grow. it's a scale-diversified platform with over $211 billion of aum and continues to grow ... Nearly half of our capital, as you can see, is perpetual, giving us the benefit of semi-permanent capital, I'm sure we'll talk about that in Q&A, with greater visibility into management fee streams going forward, and obviously compounding value for our shareholders. We combine that with scale and a highly active and differentiated origination, which has allowed us in the past year to deploy over $30 billion alone, underscoring really the strength of our origination platform and our ability to generate management fees at scale. Credit, as you all know, is not a monolithic asset class, right? It does span a wide risk-return spectrum. We built a platform that covers that full spectrum of credit, okay? ... Nearly half of our capital, as you can see, is perpetual, giving us the benefit of semi-permanent capital, I'm sure we'll talk about that in Q&A, with greater visibility into management fee streams going forward, and obviously compounding value for our shareholders. nearly half of our capital as you can see is perpetual giving us the benefit of semi-permanent capital i'm sure we'll talk about that in q&a with greater visibility into management fee streams going forward and obviously compounding value for our shareholders We combine that with scale and a highly active and differentiated origination, which has allowed us in the past year to deploy over $30 billion alone, underscoring really the strength of our origination platform and our ability to generate management fees at scale. we combine that with scale and a highly active and differentiated origination which has allowed us in the past year to deploy over $30 billion alone underscoring really the strength of our origination platform and our ability to generate management fees at scale Credit, as you all know, is not a monolithic asset class, right? credit as you all know is not a monolithic asset class right It does span a wide risk-return spectrum. it does span a wide risk-return spectrum We built a platform that covers that full spectrum of credit, okay? we built a platform that covers that full spectrum of credit okay From liquid corporate credit, which is all of our CLOs, BSLs, to private credit, direct lending, which I know is in vogue right now, opportunistic, hybrid capital, real asset credit, which for us is infrastructure credit, aviation finance, and real estate, all the way through to and including asset-backed finance. This purpose-built platform provides a broad array of expected returns that allows us to invest at various points through a cycle, and more importantly, move capital to where we see the most attractive risk-adjusted returns for our investors. It's that breadth of product that creates one of the industry's broadest origination funnels, and it generates a vast amount of information flow for us to make investment decisions, obviously, and allows us to deliver very differentiated and direct outcomes for our borrowers and investors. Over the past three years, we've had significant strong growth. From liquid corporate credit, which is all of our CLOs, BSLs, to private credit, direct lending, which I know is in vogue right now, opportunistic, hybrid capital, real asset credit, which for us is infrastructure credit, aviation finance, and real estate, all the way through to and including asset-backed finance. from liquid corporate credit which is all of our clos bsls to private credit direct lending which i know is in vogue right now opportunistic hybrid capital real asset credit which for us is infrastructure credit aviation finance and real estate all the way through to and including asset-backed finance This purpose-built platform provides a broad array of expected returns that allows us to invest at various points through a cycle, and more importantly, move capital to where we see the most attractive risk-adjusted returns for our investors. this purpose-built platform provides a broad array of expected returns that allows us to invest at various points through a cycle and more importantly move capital to where we see the most attractive risk-adjusted returns for our investors It's that breadth of product that creates one of the industry's broadest origination funnels, and it generates a vast amount of information flow for us to make investment decisions, obviously, and allows us to deliver very differentiated and direct outcomes for our borrowers and investors. it's that breadth of product that creates one of the industry's broadest origination funnels and it generates a vast amount of information flow for us to make investment decisions obviously and allows us to deliver very differentiated and direct outcomes for our borrowers and investors Over the past three years, we've had significant strong growth. over the past three years we've had significant strong growth As you can see, fee revenue has grown at a 17% CAGR, but probably more importantly, fee-related earnings have nearly doubled over that same period of time. It's grown at about a 34% CAGR. That really demonstrates the meaningful operating leverage that we have in that platform and allows us to expand margins in our business as we grow. Margin expansion, for us, really reflects all the prior investment that we've made in infrastructure and technology, and most importantly, talent, as we built out that broad array of product expertise. That allows us, for each incremental dollar of AUM, is increasingly profitable, okay? That growth has been deliberate. We set out a very deliberate growth pattern. We scaled high-performing strategies, we've expanded into fast-growing areas of the credit segment, and we've launched evergreen vehicles, you know, as Jeff talked about, which is bolstering our capital formation. As you can see, fee revenue has grown at a 17% CAGR, but probably more importantly, fee-related earnings have nearly doubled over that same period of time. as you can see fee revenue has grown at a 17% cagr but probably more importantly fee-related earnings have nearly doubled over that same period of time It's grown at about a 34% CAGR. it's grown at about a 34% cagr That really demonstrates the meaningful operating leverage that we have in that platform and allows us to expand margins in our business as we grow. that really demonstrates the meaningful operating leverage that we have in that platform and allows us to expand margins in our business as we grow Margin expansion, for us, really reflects all the prior investment that we've made in infrastructure and technology, and most importantly, talent, as we built out that broad array of product expertise. margin expansion for us really reflects all the prior investment that we've made in infrastructure and technology and most importantly talent as we built out that broad array of product expertise That allows us, for each incremental dollar of AUM, is increasingly profitable, okay? that allows us for each incremental dollar of aum is increasingly profitable okay That growth has been deliberate. that growth has been deliberate We set out a very deliberate growth pattern. we set out a very deliberate growth pattern We scaled high-performing strategies, we've expanded into fast-growing areas of the credit segment, and we've launched evergreen vehicles, you know, as Jeff talked about, which is bolstering our capital formation. we scaled high-performing strategies we've expanded into fast-growing areas of the credit segment and we've launched evergreen vehicles you know as jeff talked about which is bolstering our capital formation At the end of the day, sustainable growth requires quality. Quality growth requires persistent and consistent investment returns for our investors within a very defined, expected range of opportunities, we have to provide compelling solutions for our borrowers as well, that all translates into strong, durable AUM growth, which Harvey talked about. Now, I'd like to frame, I'm sure you've heard a lot of presentations on how people frame the private credit market, I think the traditional view has always been this $2 trillion market of what I would call leveraged private credit. More than half of which, by the way, is in direct lending to sponsors. For us, private credit is a much broader opportunity set that exceeds $25 trillion. At the end of the day, sustainable growth requires quality. at the end of the day sustainable growth requires quality Quality growth requires persistent and consistent investment returns for our investors within a very defined, expected range of opportunities, we have to provide compelling solutions for our borrowers as well, that all translates into strong, durable AUM growth, which Harvey talked about. quality growth requires persistent and consistent investment returns for our investors within a very defined expected range of opportunities we have to provide compelling solutions for our borrowers as well that all translates into strong durable aum growth which harvey talked about Now, I'd like to frame, I'm sure you've heard a lot of presentations on how people frame the private credit market, I think the traditional view has always been this $2 trillion market of what I would call leveraged private credit. now i'd like to frame i'm sure you've heard a lot of presentations on how people frame the private credit market i think the traditional view has always been this $2 trillion market of what i would call leveraged private credit More than half of which, by the way, is in direct lending to sponsors. more than half of which by the way is in direct lending to sponsors For us, private credit is a much broader opportunity set that exceeds $25 trillion. for us private credit is a much broader opportunity set that exceeds $25 trillion It's 12x that traditional view, as you can see here, and it spans all these multiple assets, classes, and structures that our platform is built and designed to focus on. Our $211 billion of AUM represents actually less than 1% penetration of that addressable market, so we have plenty of room to grow. Capital, as you know, is increasingly consolidating with scaled managers, like Carlyle, and we know our diversified, differentiated platform positions us extremely well to capture our share of that market. More importantly, or as importantly, I would say, depending on how you want to look at it, I think as an investor, it allows us to maintain that investment discipline, right? Take advantage of that underlying operating leverage that we have in our platform. It's 12 x that traditional view, as you can see here, and it spans all these multiple assets, classes, and structures that our platform is built and designed to focus on. it's 12 x that traditional view as you can see here and it spans all these multiple assets classes and structures that our platform is built and designed to focus on Our $211 billion of AUM represents actually less than 1% penetration of that addressable market, so we have plenty of room to grow. our $211 billion of aum represents actually less than 1% penetration of that addressable market so we have plenty of room to grow Capital, as you know, is increasingly consolidating with scaled managers, like Carlyle, and we know our diversified, differentiated platform positions us extremely well to capture our share of that market. capital as you know is increasingly consolidating with scaled managers like carlyle and we know our diversified differentiated platform positions us extremely well to capture our share of that market More importantly, or as importantly, I would say, depending on how you want to look at it, I think as an investor, it allows us to maintain that investment discipline, right? more importantly or as importantly i would say depending on how you want to look at it i think as an investor it allows us to maintain that investment discipline right Take advantage of that underlying operating leverage that we have in our platform. take advantage of that underlying operating leverage that we have in our platform I think, you know, we've talked about it throughout, that, you know, performance matters because nobody wants your products if you're not performing. How do we capture that market share? Well, we're gonna scale into what is already working, right? We're gonna continue to expand in already proven strategies like Asset-Backed Finance. Yes, direct lending, where we are probably under-scaled relative to some of our peers, opportunistic credit, and cross-platform accounts. Secondly, we're gonna move into adjacent markets and geographies. We see a lot of white space in select regions. Let's think about Asia, Korea, Japan, Australia, India. We've been doing more in Europe recently, and we think there are specific sectors like sports, media, and entertainment that are attractive from an investment perspective. We want to optimize our distribution. I think, you know, we've talked about it throughout, that, you know, performance matters because nobody wants your products if you're not performing. i think you know we've talked about it throughout that you know performance matters because nobody wants your products if you're not performing How do we capture that market share? how do we capture that market share Well, we're gonna scale into what is already working, right? well we're gonna scale into what is already working right We're gonna continue to expand in already proven strategies like Asset-Backed Finance. we're gonna continue to expand in already proven strategies like asset-backed finance Yes, direct lending, where we are probably under-scaled relative to some of our peers, opportunistic credit, and cross-platform accounts. yes direct lending where we are probably under-scaled relative to some of our peers opportunistic credit and cross-platform accounts Secondly, we're gonna move into adjacent markets and geographies. secondly we're gonna move into adjacent markets and geographies We see a lot of white space in select regions. we see a lot of white space in select regions Let's think about Asia, Korea, Japan, Australia, India. let's think about asia korea japan australia india We've been doing more in Europe recently, and we think there are specific sectors like sports, media, and entertainment that are attractive from an investment perspective. we've been doing more in europe recently and we think there are specific sectors like sports media and entertainment that are attractive from an investment perspective We want to optimize our distribution. we want to optimize our distribution Each of the institutional, insurance, and wealth channels have very distinct needs as to how we deliver what they want and how we deliver it, and we're well-positioned to meet them through our broad product array and the multiple access points that we have as a firm. We're targeting just over $90 billion of inflows over the next three years, a goal that's well-grounded in our historical flows, which in the past three years were around $80 billion+, with potential upside from insurance solutions, which I'll talk about, and other new product launches that we're considering as I stand here today. How are we executing against our firm-wide priorities that Harvey laid out up front? Well, first, we have to deliver exceptional performance, right? Without strong, consistent performance, nothing else matters.... Each of the institutional, insurance, and wealth channels have very distinct needs as to how we deliver what they want and how we deliver it, and we're well-positioned to meet them through our broad product array and the multiple access points that we have as a firm. each of the institutional insurance and wealth channels have very distinct needs as to how we deliver what they want and how we deliver it and we're well-positioned to meet them through our broad product array and the multiple access points that we have as a firm We're targeting just over $90 billion of inflows over the next three years, a goal that's well-grounded in our historical flows, which in the past three years were around $80 billion+, with potential upside from insurance solutions, which I'll talk about, and other new product launches that we're considering as I stand here today. we're targeting just over $90 billion of inflows over the next three years a goal that's well-grounded in our historical flows which in the past three years were around $80 billion+ with potential upside from insurance solutions which i'll talk about and other new product launches that we're considering as i stand here today How are we executing against our firm-wide priorities that Harvey laid out up front? how are we executing against our firm-wide priorities that harvey laid out up front Well, first, we have to deliver exceptional performance, right? well first we have to deliver exceptional performance right Without strong, consistent performance, nothing else matters.... without strong consistent performance nothing else matters Second, we're scaling our platform advantages, reinforcing that flywheel effect that compounds the benefits of the business as we continue to grow. Third, we're going to accelerate into high-growth opportunities, right? Insurance, as I mentioned, asset-backed finance, cross-platform credit, they're all scalable things that are going to drive our next phase of growth. Now, let's talk about performance. Across our platform, we have delivered exceptional performance, and that is defined as consistent and persistent returns through cycles. Our track record spans multiple market cycles. Think of the GFC, think of COVID, think of, like, the interest rate increases in 2022, 2023, and a lot of other minor little dislocations along the way. In liquid credit, our CLO management equity returns of 13% reflect 26 years of investment experience and underscore our history of outperformance. Second, we're scaling our platform advantages, reinforcing that flywheel effect that compounds the benefits of the business as we continue to grow. second we're scaling our platform advantages reinforcing that flywheel effect that compounds the benefits of the business as we continue to grow Third, we're going to accelerate into high-growth opportunities, right? third we're going to accelerate into high-growth opportunities right Insurance, as I mentioned, asset-backed finance, cross-platform credit, they're all scalable things that are going to drive our next phase of growth. insurance as i mentioned asset-backed finance cross-platform credit they're all scalable things that are going to drive our next phase of growth Now, let's talk about performance. now let's talk about performance Across our platform, we have delivered exceptional performance, and that is defined as consistent and persistent returns through cycles. across our platform we have delivered exceptional performance and that is defined as consistent and persistent returns through cycles Our track record spans multiple market cycles. our track record spans multiple market cycles Think of the GFC, think of COVID, think of, like, the interest rate increases in 2022, 2023, and a lot of other minor little dislocations along the way. think of the gfc think of covid think of like the interest rate increases in 2022 2023 and a lot of other minor little dislocations along the way In liquid credit, our CLO management equity returns of 13% reflect 26 years of investment experience and underscore our history of outperformance. in liquid credit our clo management equity returns of 13% reflect 26 years of investment experience and underscore our history of outperformance We have driven double-digit performance in private credit, and we've made and delivered a premium to the index benchmarks that we use, in asset-backed finance. Just looking at CTAC for a minute, which is our flagship cross-platform vehicle, which provides investors with really exposure across all of our credit capabilities within global credit in one single allocation. It's delivering double-digit returns over the past three years. We're able to drive these outcomes across, our platform of $211 billion through proprietary originations, rigorous underwriting, which everybody talks about, but it only comes out of the other end when you get your money back, and a focus on downside protection, right? The integrated benefits of being in a scaled provider, but not just scaled within global credit, but scaled within that broad context of Carlyle overall. We have driven double-digit performance in private credit, and we've made and delivered a premium to the index benchmarks that we use, in asset-backed finance. we have driven double-digit performance in private credit and we've made and delivered a premium to the index benchmarks that we use in asset-backed finance Just looking at CTAC for a minute, which is our flagship cross-platform vehicle, which provides investors with really exposure across all of our credit capabilities within global credit in one single allocation. just looking at ctac for a minute which is our flagship cross-platform vehicle which provides investors with really exposure across all of our credit capabilities within global credit in one single allocation It's delivering double-digit returns over the past three years. it's delivering double-digit returns over the past three years We're able to drive these outcomes across, our platform of $211 billion through proprietary originations, rigorous underwriting, which everybody talks about, but it only comes out of the other end when you get your money back, and a focus on downside protection, right? we're able to drive these outcomes across our platform of $211 billion through proprietary originations rigorous underwriting which everybody talks about but it only comes out of the other end when you get your money back and a focus on downside protection right The integrated benefits of being in a scaled provider, but not just scaled within global credit, but scaled within that broad context of Carlyle overall. the integrated benefits of being in a scaled provider but not just scaled within global credit but scaled within that broad context of carlyle overall That's how 40 years of operating history of dealing with clients and dealing with industries on a global basis. Harvey has a favorite slide, and I have a favorite one, 'cause I've been a credit analyst for over 35 years, and for me, it's not how you generate the how you generate the returns is really important. To me, it is, if you generate these returns with a lot of volatility, that's not a great outcome in credit. Ultimately, our objective is not just to generate returns, but protect capital. Over 26 years, if you take a look here, our historical bank's indicated loss rate has been about one-third of the broad industry loss rate. That's how 40 years of operating history of dealing with clients and dealing with industries on a global basis. that's how 40 years of operating history of dealing with clients and dealing with industries on a global basis Harvey has a favorite slide, and I have a favorite one, 'cause I've been a credit analyst for over 35 years, and for me, it's not how you generate the how you generate the returns is really important. harvey has a favorite slide and i have a favorite one 'cause i've been a credit analyst for over 35 years and for me it's not how you generate the how you generate the returns is really important To me, it is, if you generate these returns with a lot of volatility, that's not a great outcome in credit. to me it is if you generate these returns with a lot of volatility that's not a great outcome in credit Ultimately, our objective is not just to generate returns, but protect capital. ultimately our objective is not just to generate returns but protect capital Over 26 years, if you take a look here, our historical bank's indicated loss rate has been about one-third of the broad industry loss rate. over 26 years if you take a look here our historical bank's indicated loss rate has been about one-third of the broad industry loss rate In direct lending, which I know people are focused on right now for different reasons, our default rate's roughly 1/9 of the industry average, but importantly, our loss rate has been 10 basis points. Translate that into what does that mean? That's about if you made 10%, 12 basis points, or you'd be making 9.88% versus 10%. That has been our loss rate. It underscores not just the underwriting discipline, 'cause that's part of it, right? Putting that investment in your portfolio, but it also underscores what we do after we put it in our portfolio and what our asset management capabilities are. When something goes wrong, how do we recover that capital? Why does that matter for shareholders? In direct lending, which I know people are focused on right now for different reasons, our default rate's roughly 1/9 of the industry average, but importantly, our loss rate has been 10 basis points. in direct lending which i know people are focused on right now for different reasons our default rate's roughly 1/9 of the industry average but importantly our loss rate has been 10 basis points Translate that into what does that mean? translate that into what does that mean That's about if you made 10%, 12 basis points, or you'd be making 9.88% versus 10%. that's about if you made 10% 12 basis points or you'd be making 9.88% versus 10% That has been our loss rate. that has been our loss rate It underscores not just the underwriting discipline, 'cause that's part of it, right? it underscores not just the underwriting discipline 'cause that's part of it right Putting that investment in your portfolio, but it also underscores what we do after we put it in our portfolio and what our asset management capabilities are. putting that investment in your portfolio but it also underscores what we do after we put it in our portfolio and what our asset management capabilities are When something goes wrong, how do we recover that capital? when something goes wrong how do we recover that capital Why does that matter for shareholders? why does that matter for shareholders Durable earnings are built, I think, on a disciplined credit culture, right? The rigorous underwriting that we go through, that consistent focus on downside protection, and that investors trust us with their capital when we invest it for them. Let's talk about how the platform is designed to compound growth and reinforce, let's call it a flywheel. At the core, you can see here, of the flywheel, is really that integrated platform engine I talked about, right? Durable earnings are built, I think, on a disciplined credit culture, right? durable earnings are built i think on a disciplined credit culture right The rigorous underwriting that we go through, that consistent focus on downside protection, and that investors trust us with their capital when we invest it for them. the rigorous underwriting that we go through that consistent focus on downside protection and that investors trust us with their capital when we invest it for them Let's talk about how the platform is designed to compound growth and reinforce, let's call it a flywheel. let's talk about how the platform is designed to compound growth and reinforce let's call it a flywheel At the core, you can see here, of the flywheel, is really that integrated platform engine I talked about, right? at the core you can see here of the flywheel is really that integrated platform engine i talked about right It's the breadth of our capabilities, all of our product knowledge. It's the scale of our capital. It's the industry expertise. It's our sourcing relationships. It's our proprietary sourcing relationships. It's the investment we'll talk about in AI and technology, which helps us drive these decisions. It's the engine that powers everything that we do as a platform. That middle layer right there, that's our credit foundation. It's the breadth of our capabilities, all of our product knowledge. it's the breadth of our capabilities all of our product knowledge It's the scale of our capital. it's the scale of our capital It's the industry expertise. it's the industry expertise It's our sourcing relationships. it's our sourcing relationships It's our proprietary sourcing relationships. it's our proprietary sourcing relationships It's the investment we'll talk about in AI and technology, which helps us drive these decisions. it's the investment we'll talk about in ai and technology which helps us drive these decisions It's the engine that powers everything that we do as a platform. it's the engine that powers everything that we do as a platform That middle layer right there, that's our credit foundation. that middle layer right there that's our credit foundation It spans all of those products, all that content, if you will, that our investors are looking for. Frankly, our borrowers are looking for solutions, so that is the content to how we deliver that, right? From liquid credit, private credit, real asset, and asset-backed, don't think of them as individual products. We think of them as a universe source of capital for solutions and for investors. Each of these strategies generates its own deal flow and market intelligence, borrower relationships, right, that inform investment decisions and help us create new investment opportunities for our investors. This allows us to scale and compound solutions for both investors and borrowers, right? Capital markets helps us enhance execution. It generates fees that we deliver to the firm and revenue for Carlyle. It spans all of those products, all that content, if you will, that our investors are looking for. it spans all of those products all that content if you will that our investors are looking for Frankly, our borrowers are looking for solutions, so that is the content to how we deliver that, right? frankly our borrowers are looking for solutions so that is the content to how we deliver that right From liquid credit, private credit, real asset, and asset-backed, don't think of them as individual products. from liquid credit private credit real asset and asset-backed don't think of them as individual products We think of them as a universe source of capital for solutions and for investors. we think of them as a universe source of capital for solutions and for investors Each of these strategies generates its own deal flow and market intelligence, borrower relationships, right, that inform investment decisions and help us create new investment opportunities for our investors. each of these strategies generates its own deal flow and market intelligence borrower relationships right that inform investment decisions and help us create new investment opportunities for our investors This allows us to scale and compound solutions for both investors and borrowers, right? this allows us to scale and compound solutions for both investors and borrowers right Capital markets helps us enhance execution. capital markets helps us enhance execution It generates fees that we deliver to the firm and revenue for Carlyle. it generates fees that we deliver to the firm and revenue for carlyle Cross, cross-platform accounts deploy capital across that whole platform of strategies at scale and give us that meaningful operating leverage, where we don't have to hire more people to put something into a cross-platform account. Insurance solutions leverage that diversified credit complex, if you will, so we can deliver capital-efficient solutions to insurance clients. Again, at our core, we are solution providers to investors and borrowers. There's an engine, we have a diversified credit foundation and scale that allows us to compound over time. We're just building and continuing to build on what we already have in place. Let's talk about some of the flywheel in action. I know Harvey Schwartz showed part of this chart before, really, you know, when Harvey Schwartz came in, we made a very deliberate focus on capital markets. Cross, cross-platform accounts deploy capital across that whole platform of strategies at scale and give us that meaningful operating leverage, where we don't have to hire more people to put something into a cross-platform account. cross cross-platform accounts deploy capital across that whole platform of strategies at scale and give us that meaningful operating leverage where we don't have to hire more people to put something into a cross-platform account Insurance solutions leverage that diversified credit complex, if you will, so we can deliver capital-efficient solutions to insurance clients. insurance solutions leverage that diversified credit complex if you will so we can deliver capital-efficient solutions to insurance clients Again, at our core, we are solution providers to investors and borrowers. again at our core we are solution providers to investors and borrowers There's an engine, we have a diversified credit foundation and scale that allows us to compound over time. there's an engine we have a diversified credit foundation and scale that allows us to compound over time We're just building and continuing to build on what we already have in place. we're just building and continuing to build on what we already have in place Let's talk about some of the flywheel in action. let's talk about some of the flywheel in action I know Harvey Schwartz showed part of this chart before, really, you know, when Harvey Schwartz came in, we made a very deliberate focus on capital markets. i know harvey schwartz showed part of this chart before really you know when harvey schwartz came in we made a very deliberate focus on capital markets Over the past three years, you can see it's driven that focus has driven significant growth. Importantly, what you can see is we've diversified the sources of capital markets fees, and we expect to see much further growth in global credit and AlpInvest going forward, where we think there's meaningful fee growth going forward for the firm. Okay. Let's talk about insurance. Really, there's three pillars to our insurance strategy, if you will, and we see significant opportunity to further accelerate the growth in the insurance channel. There's three key things I'd focus on. One is our investment in Fortitude Re. We have a 10.5% interest in them. It was the catalyst, if you will, for our insurance solutions business. Over the past three years, you can see it's driven that focus has driven significant growth. over the past three years you can see it's driven that focus has driven significant growth Importantly, what you can see is we've diversified the sources of capital markets fees, and we expect to see much further growth in global credit and AlpInvest going forward, where we think there's meaningful fee growth going forward for the firm. importantly what you can see is we've diversified the sources of capital markets fees and we expect to see much further growth in global credit and alpinvest going forward where we think there's meaningful fee growth going forward for the firm Okay. okay Let's talk about insurance. let's talk about insurance Really, there's three pillars to our insurance strategy, if you will, and we see significant opportunity to further accelerate the growth in the insurance channel. really there's three pillars to our insurance strategy if you will and we see significant opportunity to further accelerate the growth in the insurance channel There's three key things I'd focus on. there's three key things i'd focus on One is our investment in Fortitude Re. one is our investment in fortitude re We have a 10.5% interest in them. we have a 10.5% interest in them It was the catalyst, if you will, for our insurance solutions business. it was the catalyst if you will for our insurance solutions business This partnership, which continues to grow, and Fortitude Re continues to grow, enabled us to deepen our understanding of insurer asset management needs and ultimately build purpose-built solutions for insurance companies. Think about, we have built the product array in our platform that allows us to deliver that to third-party insurers. That expertise compare, you know, and our capital-light approach to the channel has made us much more relevant to third parties. This partnership, which continues to grow, and Fortitude Re continues to grow, enabled us to deepen our understanding of insurer asset management needs and ultimately build purpose-built solutions for insurance companies. this partnership which continues to grow and fortitude re continues to grow enabled us to deepen our understanding of insurer asset management needs and ultimately build purpose-built solutions for insurance companies Think about, we have built the product array in our platform that allows us to deliver that to third-party insurers. think about we have built the product array in our platform that allows us to deliver that to third-party insurers That expertise compare, you know, and our capital-light approach to the channel has made us much more relevant to third parties. that expertise compare you know and our capital-light approach to the channel has made us much more relevant to third parties Why is that? 'Cause we don't have a captive that we're feeding all the time, and our relationship with Fortitude is really based on an open architecture. That open architecture approach has allowed us to penetrate more down the third-party channel. Lastly, we are selectively exploring strategic relationships where we can use our capital-light approach but judiciously use our capital to expand our insurance AUM. Why is that? 'Cause we don't have a captive that we're feeding all the time, and our relationship with Fortitude is really based on an open architecture. why is that 'cause we don't have a captive that we're feeding all the time and our relationship with fortitude is really based on an open architecture That open architecture approach has allowed us to penetrate more down the third-party channel. that open architecture approach has allowed us to penetrate more down the third-party channel Lastly, we are selectively exploring strategic relationships where we can use our capital-light approach but judiciously use our capital to expand our insurance AUM. lastly we are selectively exploring strategic relationships where we can use our capital-light approach but judiciously use our capital to expand our insurance aum The growth of our insurance capabilities, both in structuring and, you know, in distribution, has also allowed us to generate more fees, if you will, from a capital markets perspective. It's really a comprehensive approach, again, that's gonna provide solutions to insurers and also the growth of Fortitude that will continue to drive, you know, revenue there. Asset-backed Finance, it's one of our fastest-growing verticals right now. It's supported by strong secular tailwinds, I'm sure you've all heard about, and we think there's significant runway for expansion. As we, you know, highlighted in our market opportunity slide, the addressable market for asset-backed is substantial, and we're moving very decisively, and you'll hear from some of my colleagues today about how we're seizing on that opportunity. The growth of our insurance capabilities, both in structuring and, you know, in distribution, has also allowed us to generate more fees, if you will, from a capital markets perspective. the growth of our insurance capabilities both in structuring and you know in distribution has also allowed us to generate more fees if you will from a capital markets perspective It's really a comprehensive approach, again, that's gonna provide solutions to insurers and also the growth of Fortitude that will continue to drive, you know, revenue there. it's really a comprehensive approach again that's gonna provide solutions to insurers and also the growth of fortitude that will continue to drive you know revenue there Asset-backed Finance, it's one of our fastest-growing verticals right now. asset-backed finance it's one of our fastest-growing verticals right now It's supported by strong secular tailwinds, I'm sure you've all heard about, and we think there's significant runway for expansion. it's supported by strong secular tailwinds i'm sure you've all heard about and we think there's significant runway for expansion As we, you know, highlighted in our market opportunity slide, the addressable market for asset-backed is substantial, and we're moving very decisively, and you'll hear from some of my colleagues today about how we're seizing on that opportunity. as we you know highlighted in our market opportunity slide the addressable market for asset-backed is substantial and we're moving very decisively and you'll hear from some of my colleagues today about how we're seizing on that opportunity Since 2021, we've actually scaled that business from virtually nothing to over $10 billion, and as I mentioned, our partnership with Fortitude Re really was a catalyst, right? Looking ahead, we have the launch of Evergreen Vehicles in 2026 and beyond, that we're gonna lead to our next phase of growth in ABF. These vehicles, Evergreen Vehicles, will open up additional distribution channels, which will include non-insurance, institutional, and high net worth. Importantly, the growth drivers for asset-backed finance are really structural versus cyclical. I'm sure you've heard it from my peers, but basically, banks are retrenching from asset-backed lending due to mostly regulatory accounting and other regulatory events, and then capital market volatility has constrained financing, and pushed it into the private markets, where there's more durability, if you will, of providing that. Since 2021, we've actually scaled that business from virtually nothing to over $10 billion, and as I mentioned, our partnership with Fortitude Re really was a catalyst, right? since 2021 we've actually scaled that business from virtually nothing to over $10 billion and as i mentioned our partnership with fortitude re really was a catalyst right Looking ahead, we have the launch of Evergreen Vehicles in 2026 and beyond, that we're gonna lead to our next phase of growth in ABF. looking ahead we have the launch of evergreen vehicles in 2026 and beyond that we're gonna lead to our next phase of growth in abf These vehicles, Evergreen Vehicles, will open up additional distribution channels, which will include non-insurance, institutional, and high net worth. these vehicles evergreen vehicles will open up additional distribution channels which will include non-insurance institutional and high net worth Importantly, the growth drivers for asset-backed finance are really structural versus cyclical. importantly the growth drivers for asset-backed finance are really structural versus cyclical I'm sure you've heard it from my peers, but basically, banks are retrenching from asset-backed lending due to mostly regulatory accounting and other regulatory events, and then capital market volatility has constrained financing, and pushed it into the private markets, where there's more durability, if you will, of providing that. i'm sure you've heard it from my peers but basically banks are retrenching from asset-backed lending due to mostly regulatory accounting and other regulatory events and then capital market volatility has constrained financing and pushed it into the private markets where there's more durability if you will of providing that That trend has created a sustained opportunity for private credit across hard assets, consumer, corporate, and intangible assets that traditionally have been held on bank balance sheets. We're not really investing in anything that hasn't been held in the market for 50-plus years, probably by banks. These are relatively good, secure assets that have been held by different constituents. We believe our Asset-Backed Finance strategy has the potential to be multiples of what you see on the screen here in the next coming years. Evergreen Vehicles, Jeff addressed these and talked about them. They have been one aspect of our growth, and they're very scalable and recurring. They provide semi-permanent capital, again, we'll talk about that, with more visible fee streams. We've grown our Evergreen Vehicles from AUM from $12 billion to $19 billion. That trend has created a sustained opportunity for private credit across hard assets, consumer, corporate, and intangible assets that traditionally have been held on bank balance sheets. that trend has created a sustained opportunity for private credit across hard assets consumer corporate and intangible assets that traditionally have been held on bank balance sheets We're not really investing in anything that hasn't been held in the market for 50-plus years, probably by banks. we're not really investing in anything that hasn't been held in the market for 50-plus years probably by banks These are relatively good, secure assets that have been held by different constituents. these are relatively good secure assets that have been held by different constituents We believe our Asset-Backed Finance strategy has the potential to be multiples of what you see on the screen here in the next coming years. we believe our asset-backed finance strategy has the potential to be multiples of what you see on the screen here in the next coming years Evergreen Vehicles, Jeff addressed these and talked about them. evergreen vehicles jeff addressed these and talked about them They have been one aspect of our growth, and they're very scalable and recurring. they have been one aspect of our growth and they're very scalable and recurring They provide semi-permanent capital, again, we'll talk about that, with more visible fee streams. they provide semi-permanent capital again we'll talk about that with more visible fee streams We've grown our Evergreen Vehicles from AUM from $12 billion to $19 billion. we've grown our evergreen vehicles from aum from $12 billion to $19 billion In a very deliberate, steady way over the past three years, but it really does reflect the scalability that we have of these vehicles. As you know, which are continuously fundraising and reinvesting, it allows that AUM to compound over time for investors and for us, and reduces the reliance on going back to market with these drawdown funds. We've got a comprehensive set of products that allows us to serve the institutional market and the wealth channels, and it does position us extremely well for the retirement flows that we anticipate down the road, where the demand for private market exposure continues to increase, and I'd argue probably they'll look to credit as their first step, if you will. In a very deliberate, steady way over the past three years, but it really does reflect the scalability that we have of these vehicles. in a very deliberate steady way over the past three years but it really does reflect the scalability that we have of these vehicles As you know, which are continuously fundraising and reinvesting, it allows that AUM to compound over time for investors and for us, and reduces the reliance on going back to market with these drawdown funds. as you know which are continuously fundraising and reinvesting it allows that aum to compound over time for investors and for us and reduces the reliance on going back to market with these drawdown funds We've got a comprehensive set of products that allows us to serve the institutional market and the wealth channels, and it does position us extremely well for the retirement flows that we anticipate down the road, where the demand for private market exposure continues to increase, and I'd argue probably they'll look to credit as their first step, if you will. we've got a comprehensive set of products that allows us to serve the institutional market and the wealth channels and it does position us extremely well for the retirement flows that we anticipate down the road where the demand for private market exposure continues to increase and i'd argue probably they'll look to credit as their first step if you will Again, we're leveraging the full breadth of the platform, differentiated exposures, that might be my time, making us highly relevant across all distribution channels, and we think we've got a meaningful runway. Okay. CTAC, which you've heard about, I think, is proof of our platform creating a differentiated product for the wealth channel. It's a multi-asset solution of credit that draws across that full breadth of global credit. It has grown at about a 44% CAGR over the past three years and represents roughly $7 billion in AUM for our platform, and as I said, delivering 10% returns over the past three years. What's the key to it? The performance is really driven by a dynamic asset allocation model that occurs through time. Again, we're leveraging the full breadth of the platform, differentiated exposures, that might be my time, making us highly relevant across all distribution channels, and we think we've got a meaningful runway. again we're leveraging the full breadth of the platform differentiated exposures that might be my time making us highly relevant across all distribution channels and we think we've got a meaningful runway Okay. okay CTAC, which you've heard about, I think, is proof of our platform creating a differentiated product for the wealth channel. ctac which you've heard about i think is proof of our platform creating a differentiated product for the wealth channel It's a multi-asset solution of credit that draws across that full breadth of global credit. it's a multi-asset solution of credit that draws across that full breadth of global credit It has grown at about a 44% CAGR over the past three years and represents roughly $7 billion in AUM for our platform, and as I said, delivering 10% returns over the past three years. it has grown at about a 44% cagr over the past three years and represents roughly $7 billion in aum for our platform and as i said delivering 10% returns over the past three years What's the key to it? what's the key to it The performance is really driven by a dynamic asset allocation model that occurs through time. the performance is really driven by a dynamic asset allocation model that occurs through time What that means by that, we have a top-down asset allocation model that allows us, again, to move capital where we see the opportunities, and we can, you know, the most compelling risk-adjusted opportunities, but rather relying on one single strategy, like direct lending, for instance. Today, that portfolio holds over 950 positions. I'll say that again, 950 positions. They're marked daily, so it provides significant diversification, but importantly, in this market, transparency to our investors. Again, this just allows us to invest through cycles and lean in where we see the opportunities. We built the Global Credit platform intentionally to enable this type of cross-strategy approach, which goes both institutional and high net worth. What that means by that, we have a top-down asset allocation model that allows us, again, to move capital where we see the opportunities, and we can, you know, the most compelling risk-adjusted opportunities, but rather relying on one single strategy, like direct lending, for instance. what that means by that we have a top-down asset allocation model that allows us again to move capital where we see the opportunities and we can you know the most compelling risk-adjusted opportunities but rather relying on one single strategy like direct lending for instance Today, that portfolio holds over 950 positions. today that portfolio holds over 950 positions I'll say that again, 950 positions. i'll say that again 950 positions They're marked daily, so it provides significant diversification, but importantly, in this market, transparency to our investors. they're marked daily so it provides significant diversification but importantly in this market transparency to our investors Again, this just allows us to invest through cycles and lean in where we see the opportunities. again this just allows us to invest through cycles and lean in where we see the opportunities We built the Global Credit platform intentionally to enable this type of cross-strategy approach, which goes both institutional and high net worth. we built the global credit platform intentionally to enable this type of cross-strategy approach which goes both institutional and high net worth It's a key differentiator for our platform, and it represents really the best of Carlyle Global Credit in a single semi-liquid vehicle continue to, we think, enormous runway for growth in a methodical way. Let me just finish by saying we have a purpose-built, diversified Global Credit platform, and it's differentiated by the breadth of that platform, which enables us, again, to deliver tailored solutions to both our borrowers, which we need on one side, and our investors on the other side. We operate across a opportunity set that exceeds 25 trillion, we think we have a huge amount of runway for growth, and our target of more than $90 billion of inflows is highly achievable, and we think we have meaningful upside from there. Don't hold that to me too much, but we think we have upside there. It's a key differentiator for our platform, and it represents really the best of Carlyle Global Credit in a single semi-liquid vehicle continue to, we think, enormous runway for growth in a methodical way. it's a key differentiator for our platform and it represents really the best of carlyle global credit in a single semi-liquid vehicle continue to we think enormous runway for growth in a methodical way Let me just finish by saying we have a purpose-built, diversified Global Credit platform, and it's differentiated by the breadth of that platform, which enables us, again, to deliver tailored solutions to both our borrowers, which we need on one side, and our investors on the other side. let me just finish by saying we have a purpose-built diversified global credit platform and it's differentiated by the breadth of that platform which enables us again to deliver tailored solutions to both our borrowers which we need on one side and our investors on the other side We operate across a opportunity set that exceeds 25 trillion, we think we have a huge amount of runway for growth, and our target of more than $90 billion of inflows is highly achievable, and we think we have meaningful upside from there. we operate across a opportunity set that exceeds 25 trillion we think we have a huge amount of runway for growth and our target of more than $90 billion of inflows is highly achievable and we think we have meaningful upside from there Don't hold that to me too much, but we think we have upside there. don't hold that to me too much but we think we have upside there We have strong conviction, if you will, in global credit's ability to drive sustained AUM and earnings growth, as we have demonstrated over the past 10 years of our platform's growth. With that, I'll thank you, and I'll pass it on to my colleague, John Redett. We have strong conviction, if you will, in global credit's ability to drive sustained AUM and earnings growth, as we have demonstrated over the past 10 years of our platform's growth. we have strong conviction if you will in global credit's ability to drive sustained aum and earnings growth as we have demonstrated over the past 10 years of our platform's growth With that, I'll thank you, and I'll pass it on to my colleague, John Redett. with that i'll thank you and i'll pass it on to my colleague john redett

Speaker 20: Please welcome John Redett. Please welcome John Redett. please welcome john redett

Speaker 10: Good job, man. Good job, man. good job man Good morning, everyone. Great to see some familiar faces. I'm John Redett. I've been with the firm for nearly 20 years. Up until my recent new role as Co-President, I was Chief Financial Officer for several years. I've spent the vast majority of my career at Carlyle on the global private equity side of the business. This is a business I know really well. This is a business I really love. For us at Carlyle, global private equity consists of corporate private equity and real assets. We have a 35-year track record in global private equity. I mean, this is where it all began for Carlyle 35+ years ago. We have an incredibly strong brand, a very well-respected brand. I think Harvey used the term iconic. It's a very much an iconic brand. Good morning, everyone. good morning everyone Great to see some familiar faces. great to see some familiar faces I'm John Redett. i'm john redett I've been with the firm for nearly 20 years. i've been with the firm for nearly 20 years Up until my recent new role as Co-President, I was Chief Financial Officer for several years. up until my recent new role as co-president i was chief financial officer for several years I've spent the vast majority of my career at Carlyle on the global private equity side of the business. i've spent the vast majority of my career at carlyle on the global private equity side of the business This is a business I know really well. this is a business i know really well This is a business I really love. this is a business i really love For us at Carlyle, global private equity consists of corporate private equity and real assets. for us at carlyle global private equity consists of corporate private equity and real assets We have a 35-year track record in global private equity. we have a 35-year track record in global private equity I mean, this is where it all began for Carlyle 35 + years ago. i mean this is where it all began for carlyle 35 + years ago We have an incredibly strong brand, a very well-respected brand. we have an incredibly strong brand a very well-respected brand I think Harvey used the term iconic. i think harvey used the term iconic It's a very much an iconic brand. it's a very much an iconic brand The global private equity business, it's scaled, it's a global business, and it's also a very profitable business for Carlyle. We manage roughly $165 billion of AUM. In our portfolio companies globally, we employ 700,000 employees. That would rank us a top 10 employer in the US. You know, what does this give us? This gives us a tremendous amount of data. It also gives us great visibility into the global economy, which is a real advantage when you're investing. Kind of what Harvey touched on a little bit this earlier, when I think about this business looking forward, I think it's gonna be a great business, it's really gonna come down to what I call kind of the traditional private equity approach. The global private equity business, it's scaled, it's a global business, and it's also a very profitable business for Carlyle. the global private equity business it's scaled it's a global business and it's also a very profitable business for carlyle We manage roughly $165 billion of AUM. we manage roughly $165 billion of aum In our portfolio companies globally, we employ 700,000 employees. in our portfolio companies globally we employ 700,000 employees That would rank us a top 10 employer in the US. that would rank us a top 10 employer in the us You know, what does this give us? you know what does this give us This gives us a tremendous amount of data. this gives us a tremendous amount of data It also gives us great visibility into the global economy, which is a real advantage when you're investing. it also gives us great visibility into the global economy which is a real advantage when you're investing Kind of what Harvey touched on a little bit this earlier, when I think about this business looking forward, I think it's gonna be a great business, it's really gonna come down to what I call kind of the traditional private equity approach. kind of what harvey touched on a little bit this earlier when i think about this business looking forward i think it's gonna be a great business it's really gonna come down to what i call kind of the traditional private equity approach You're gonna have to be a disciplined buyer. You're gonna have to be incredibly focused on driving returns through value creation, and you're gonna have to monetize assets earlier in the fund life, like we've done in CP VIII. I think the days of multiple expansion-driven returns are largely behind us. When we look at our returns in global private equity, nearly 80% of the return is driven by value creation. What do I mean by value creation? Improving the technology, the efficiency, expanding the business, focused on pricing, growing the business. These are just a few areas we focus on. Look, AI has been something we have been using in global private equity for years. It is obviously probably a topic that's top of mind for everyone in this room. It seems to be in every single article. You're gonna have to be a disciplined buyer. you're gonna have to be a disciplined buyer You're gonna have to be incredibly focused on driving returns through value creation, and you're gonna have to monetize assets earlier in the fund life, like we've done in CP VIII. you're gonna have to be incredibly focused on driving returns through value creation and you're gonna have to monetize assets earlier in the fund life like we've done in cp viii I think the days of multiple expansion-driven returns are largely behind us. i think the days of multiple expansion-driven returns are largely behind us When we look at our returns in global private equity, nearly 80% of the return is driven by value creation. when we look at our returns in global private equity nearly 80% of the return is driven by value creation What do I mean by value creation? what do i mean by value creation Improving the technology, the efficiency, expanding the business, focused on pricing, growing the business. improving the technology the efficiency expanding the business focused on pricing growing the business These are just a few areas we focus on. these are just a few areas we focus on Look, AI has been something we have been using in global private equity for years. look ai has been something we have been using in global private equity for years It is obviously probably a topic that's top of mind for everyone in this room. it is obviously probably a topic that's top of mind for everyone in this room It seems to be in every single article. it seems to be in every single article Again, we've been focused on this for years. When we take an investment to the investment committee, AI is topics one through five. We spend the vast majority of the time talking about AI, how it benefits this investment, what are perhaps some of the risk of AI. I'm not gonna spend a lot of time on it. I don't want to minimize it, but we have a panel later today specifically dedicated to AI. As I said, this is a diversified business. It's a very durable business. As you can see here, we're not overly reliant on any particular fund. You can see corporate private equity is the cornerstone. Not surprising, given our 35-year history and track record in corporate private equity. This business really helps drive the Carlyle brand. Again, we've been focused on this for years. again we've been focused on this for years When we take an investment to the investment committee, AI is topics one through five. when we take an investment to the investment committee ai is topics one through five We spend the vast majority of the time talking about AI, how it benefits this investment, what are perhaps some of the risk of AI. we spend the vast majority of the time talking about ai how it benefits this investment what are perhaps some of the risk of ai I'm not gonna spend a lot of time on it. i'm not gonna spend a lot of time on it I don't want to minimize it, but we have a panel later today specifically dedicated to AI. i don't want to minimize it but we have a panel later today specifically dedicated to ai As I said, this is a diversified business. as i said this is a diversified business It's a very durable business. it's a very durable business As you can see here, we're not overly reliant on any particular fund. as you can see here we're not overly reliant on any particular fund You can see corporate private equity is the cornerstone. you can see corporate private equity is the cornerstone Not surprising, given our 35-year history and track record in corporate private equity. not surprising given our 35-year history and track record in corporate private equity This business really helps drive the Carlyle brand. this business really helps drive the carlyle brand When we buy a company like Vantive, we get tremendous coverage. When we monetize, like the highly successful Medline IPO, we get even more coverage. The business is a big driver of capital markets revenues. You saw that on Mark's slide. This has been a key focus area for the management team for the last few years, and we've had a lot of success in Global Private Equity, driving capital market fees. This is an incredibly important business to Carlyle. In terms of firm-wide priorities as it relates to Global Private Equity, look, investment performance, we are laser-like focused on investment performance. It's core to what we do. We're incredibly focused on scaling, continuing to scale the business, and we're looking for ways to find new areas to accelerate growth in this business. When we buy a company like Vantive, we get tremendous coverage. when we buy a company like vantive we get tremendous coverage When we monetize, like the highly successful Medline IPO, we get even more coverage. when we monetize like the highly successful medline ipo we get even more coverage The business is a big driver of capital markets revenues. the business is a big driver of capital markets revenues You saw that on Mark's slide. you saw that on mark's slide This has been a key focus area for the management team for the last few years, and we've had a lot of success in Global Private Equity, driving capital market fees. this has been a key focus area for the management team for the last few years and we've had a lot of success in global private equity driving capital market fees This is an incredibly important business to Carlyle. this is an incredibly important business to carlyle In terms of firm-wide priorities as it relates to Global Private Equity, look, investment performance, we are laser-like focused on investment performance. in terms of firm-wide priorities as it relates to global private equity look investment performance we are laser-like focused on investment performance It's core to what we do. it's core to what we do We're incredibly focused on scaling, continuing to scale the business, and we're looking for ways to find new areas to accelerate growth in this business. we're incredibly focused on scaling continuing to scale the business and we're looking for ways to find new areas to accelerate growth in this business Investment performance, in the global private equity business has really been strong across the board. You can see on this slide, in our, in our U.S. corporate private equity business in the U.S., a 29% gross IRR. We have strong performance in Europe, in Asia, in Japan. When you look at corporate private equity across the globe, that's a 26% IRR. In our real asset business, real estate, a 17% IRR. And if you actually look at the real estate business and, and look at it kind of post the Great Financial Crisis, that 17% is closer to, 25. Very good performance there. Look, I think it's very clear the management team and our investment professionals are very focused on investment performance. Investment performance, in the global private equity business has really been strong across the board. investment performance in the global private equity business has really been strong across the board You can see on this slide, in our, in our U.S. corporate private equity business in the U.S., a 29% gross IRR. you can see on this slide in our in our u.s corporate private equity business in the u.s a 29% gross irr We have strong performance in Europe, in Asia, in Japan. we have strong performance in europe in asia in japan When you look at corporate private equity across the globe, that's a 26% IRR. when you look at corporate private equity across the globe that's a 26% irr In our real asset business, real estate, a 17% IRR. in our real asset business real estate a 17% irr And if you actually look at the real estate business and, and look at it kind of post the Great Financial Crisis, that 17% is closer to, 25. and if you actually look at the real estate business and and look at it kind of post the great financial crisis that 17% is closer to 25 Very good performance there. very good performance there Look, I think it's very clear the management team and our investment professionals are very focused on investment performance. look i think it's very clear the management team and our investment professionals are very focused on investment performance When you look at the corporate private equity business, we could not be more pleased with where it sits today. I actually do have favorite slides, and this is probably within the global private equity, my favorite slide. The business is clearly showing real momentum. When you look at CP VIII, that's the current fund we're investing out of in the US, it's around 80% committed. It's looking like a great fund. CP VIII is first quartile on net IRR, second quartile on other metrics. It appreciated 17% in 2025. DPI is already 0.3. Okay, DPI is 0.3, and it's only 80% committed or invested. We are returning capital to our LPs in CP VIII, and the fund is not fully invested. CP VII is progressing, and it's improving. When you look at the corporate private equity business, we could not be more pleased with where it sits today. when you look at the corporate private equity business we could not be more pleased with where it sits today I actually do have favorite slides, and this is probably within the global private equity, my favorite slide. i actually do have favorite slides and this is probably within the global private equity my favorite slide The business is clearly showing real momentum. the business is clearly showing real momentum When you look at CP VIII, that's the current fund we're investing out of in the US, it's around 80% committed. when you look at cp viii that's the current fund we're investing out of in the us it's around 80% committed It's looking like a great fund. it's looking like a great fund CP VIII is first quartile on net IRR, second quartile on other metrics. cp viii is first quartile on net irr second quartile on other metrics It appreciated 17% in 2025. it appreciated 17% in 2025 DPI is already 0.3. dpi is already 0.3 Okay, DPI is 0.3, and it's only 80% committed or invested. okay dpi is 0.3 and it's only 80% committed or invested We are returning capital to our LPs in CP VIII, and the fund is not fully invested. we are returning capital to our lps in cp viii and the fund is not fully invested CP VII is progressing, and it's improving. cp vii is progressing and it's improving When you look at CP VII relative to previous vintage funds, on the left of this slide, CP VII's performance is generally in line at a similar point of those previous vintage fund lives. I'd also point out for CP VII, DPI has improved to 0.7. We are very pleased with how the U.S. corporate private equity business is performing. I think when you think about this extraordinary performance, and you add in the tremendous realization activity we've had, it really shows the momentum we have in this business, and we're very happy with where this business is today. This is another great slide. I actually guess I have two favorite slides. This is my second one. Maybe this is my first one. When you look at CP VII relative to previous vintage funds, on the left of this slide, CP VII's performance is generally in line at a similar point of those previous vintage fund lives. when you look at cp vii relative to previous vintage funds on the left of this slide cp vii's performance is generally in line at a similar point of those previous vintage fund lives I'd also point out for CP VII, DPI has improved to 0.7. i'd also point out for cp vii dpi has improved to 0.7 We are very pleased with how the U.S. corporate private equity business is performing. we are very pleased with how the u.s corporate private equity business is performing I think when you think about this extraordinary performance, and you add in the tremendous realization activity we've had, it really shows the momentum we have in this business, and we're very happy with where this business is today. i think when you think about this extraordinary performance and you add in the tremendous realization activity we've had it really shows the momentum we have in this business and we're very happy with where this business is today This is another great slide. this is another great slide I actually guess I have two favorite slides. i actually guess i have two favorite slides This is my second one. this is my second one Maybe this is my first one. maybe this is my first one Look, in terms of realizations, and we've been talking about this for quite a while, we're an outlier. We are returning more capital to our investors than the industry. In 2025, we returned $18 billion of capital to our investors. It's continued in 2026. We're two months in, and we have already closed or pending closed $7.5 billion, which is largely in our U.S. corporate private equity business. In U.S. corporate private equity, which is again, largely CP VII and CP VIII, we returned $11 billion the last 12 months. That is a 100% increase year-over-year. How have we done this? It's been a mix of IPOs, trade sales, but it's driven by the great companies we own in CP VII and CP VIII. Look, in terms of realizations, and we've been talking about this for quite a while, we're an outlier. look in terms of realizations and we've been talking about this for quite a while we're an outlier We are returning more capital to our investors than the industry. we are returning more capital to our investors than the industry In 2025, we returned $18 billion of capital to our investors. in 2025 we returned $18 billion of capital to our investors It's continued in 2026. it's continued in 2026 We're two months in, and we have already closed or pending closed $7.5 billion, which is largely in our U.S. corporate private equity business. we're two months in and we have already closed or pending closed $7.5 billion which is largely in our u.s corporate private equity business In U.S. corporate private equity, which is again, largely CP VII and CP VIII, we returned $11 billion the last 12 months. in u.s corporate private equity which is again largely cp vii and cp viii we returned $11 billion the last 12 months That is a 100% increase year-over-year. that is a 100% increase year-over-year How have we done this? how have we done this It's been a mix of IPOs, trade sales, but it's driven by the great companies we own in CP VII and CP VIII. it's been a mix of ipos trade sales but it's driven by the great companies we own in cp vii and cp viii We basically opened the IPO market with StandardAero in October of 2024. We followed that with several more high-profile, successful IPOs. We did Rigaku in Japan, we did Hexaware in India, and I think everyone in this room is fully aware of the highly successful Medline IPO we recently completed. Medline was the largest ever sponsor-backed IPO, the largest ever healthcare IPO, and we are the number one sponsor by global IPO proceeds, over $10 billion of issuance. Clearly, our investment teams are focused on returning capital back to our LPs. I mentioned this is a global business, and Harvey touched on this. Look, we're able to take on a very complex global company and work across the globe together and make that investment. We basically opened the IPO market with StandardAero in October of 2024. we basically opened the ipo market with standardaero in october of 2024 We followed that with several more high-profile, successful IPOs. we followed that with several more high-profile successful ipos We did Rigaku in Japan, we did Hexaware in India, and I think everyone in this room is fully aware of the highly successful Medline IPO we recently completed. we did rigaku in japan we did hexaware in india and i think everyone in this room is fully aware of the highly successful medline ipo we recently completed Medline was the largest ever sponsor-backed IPO, the largest ever healthcare IPO, and we are the number one sponsor by global IPO proceeds, over $10 billion of issuance. medline was the largest ever sponsor-backed ipo the largest ever healthcare ipo and we are the number one sponsor by global ipo proceeds over $10 billion of issuance Clearly, our investment teams are focused on returning capital back to our LPs. clearly our investment teams are focused on returning capital back to our lps I mentioned this is a global business, and Harvey touched on this. i mentioned this is a global business and harvey touched on this Look, we're able to take on a very complex global company and work across the globe together and make that investment. look we're able to take on a very complex global company and work across the globe together and make that investment Some of our better investments that we've done in our 35-plus year history, they span the globe, with teams working together across multiple geographies, like our recently announced BASF transaction. I would just say collaboration is just part of the Carlyle culture. Harvey touched on this as well. We invest out of regional funds, which we think today is a real strength, and we've been doing this for decades. We've been in Japan for 25 years. Amazing brand, amazing leadership in that business, really a deep investment bench. We've been investing in Asia and Europe for 25+ years, long-tenured leadership. Very, very pleased with where we are in each of the regions we invest. We've always had an investment focus that I would describe as highly specialized. It's sector-focused. It's always been sector-focused. Some of our better investments that we've done in our 35-plus year history, they span the globe, with teams working together across multiple geographies, like our recently announced BASF transaction. some of our better investments that we've done in our 35-plus year history they span the globe with teams working together across multiple geographies like our recently announced basf transaction I would just say collaboration is just part of the Carlyle culture. i would just say collaboration is just part of the carlyle culture Harvey touched on this as well. harvey touched on this as well We invest out of regional funds, which we think today is a real strength, and we've been doing this for decades. we invest out of regional funds which we think today is a real strength and we've been doing this for decades We've been in Japan for 25 years. we've been in japan for 25 years Amazing brand, amazing leadership in that business, really a deep investment bench. amazing brand amazing leadership in that business really a deep investment bench We've been investing in Asia and Europe for 25+ years, long-tenured leadership. we've been investing in asia and europe for 25+ years long-tenured leadership Very, very pleased with where we are in each of the regions we invest. very very pleased with where we are in each of the regions we invest We've always had an investment focus that I would describe as highly specialized. we've always had an investment focus that i would describe as highly specialized It's sector-focused. it's sector-focused It's always been sector-focused. it's always been sector-focused Our power alleys include industrials, financial services, healthcare, and aerospace and defense. We have never been a big software investor. We think our sector focus is perfectly matched for today's market and the opportunity set we're seeing today. We have a very deep bench of investors. I'm very pleased with that. That's a great thing to see. Our senior investors are long tenure. The average time at Carlyle for senior investors is 16 years. One of our real power alleys or real strengths is just global corporate carve-outs. We are a leader in corporate carve-outs, we've done over 80 corporate carve-outs. We've invested $30 billion in corporate carve-outs, the returns are really strong. We recently announced the BASF carve-out. That was a complex, multi-geography carve-out. Our power alleys include industrials, financial services, healthcare, and aerospace and defense. our power alleys include industrials financial services healthcare and aerospace and defense We have never been a big software investor. we have never been a big software investor We think our sector focus is perfectly matched for today's market and the opportunity set we're seeing today. we think our sector focus is perfectly matched for today's market and the opportunity set we're seeing today We have a very deep bench of investors. we have a very deep bench of investors I'm very pleased with that. i'm very pleased with that That's a great thing to see. that's a great thing to see Our senior investors are long tenure. our senior investors are long tenure The average time at Carlyle for senior investors is 16 years. the average time at carlyle for senior investors is 16 years One of our real power alleys or real strengths is just global corporate carve-outs. one of our real power alleys or real strengths is just global corporate carve-outs We are a leader in corporate carve-outs, we've done over 80 corporate carve-outs. we are a leader in corporate carve-outs we've done over 80 corporate carve-outs We've invested $30 billion in corporate carve-outs, the returns are really strong. we've invested $30 billion in corporate carve-outs the returns are really strong We recently announced the BASF carve-out. we recently announced the basf carve-out That was a complex, multi-geography carve-out. that was a complex multi-geography carve-out Asia, US, Europe working together, and really leveraging that local market expertise that having local regional funds provides us. We announced Vantive before, BASF, and we also announced another carve-out, Worldpac. Look, we think carve-out activity is going to accelerate, and we think we're perfectly positioned to capture that opportunity set. Okay, aerospace and defense. This is a real core strength at Carlyle. Any stat you look at or any projection you see, they all call for a substantial increase in global defense government spending. The increases are in the trillions of dollars. This will go well beyond just defense. This will be a re-industrialization of certain countries, and it will require a massive upgrade in infrastructure. Aerospace and defense is actually where it started at Carlyle in corporate private equity. Asia, US, Europe working together, and really leveraging that local market expertise that having local regional funds provides us. asia us europe working together and really leveraging that local market expertise that having local regional funds provides us We announced Vantive before, BASF, and we also announced another carve-out, Worldpac. we announced vantive before basf and we also announced another carve-out worldpac Look, we think carve-out activity is going to accelerate, and we think we're perfectly positioned to capture that opportunity set. look we think carve-out activity is going to accelerate and we think we're perfectly positioned to capture that opportunity set Okay, aerospace and defense. okay aerospace and defense This is a real core strength at Carlyle. this is a real core strength at carlyle Any stat you look at or any projection you see, they all call for a substantial increase in global defense government spending. any stat you look at or any projection you see they all call for a substantial increase in global defense government spending The increases are in the trillions of dollars. the increases are in the trillions of dollars This will go well beyond just defense. this will go well beyond just defense This will be a re-industrialization of certain countries, and it will require a massive upgrade in infrastructure. this will be a re-industrialization of certain countries and it will require a massive upgrade in infrastructure Aerospace and defense is actually where it started at Carlyle in corporate private equity. aerospace and defense is actually where it started at carlyle in corporate private equity We are the only large global alt, alts firm with a dedicated aerospace and defense team. I think being a D.C.-based firm, we just have an edge in this space. We've invested $14 billion in A&D, and you can see the returns at 3.3 MOIC. They're just fantastic. We have a really good A&D team. The leader of that team's been at Carlyle for 25+ years. The bench is deep, but we see this as an enormous opportunity that's approaching us. Real assets. For us, that is real estate, we have a great real estate business, energy and infrastructure. We've been in the energy space for 25 years. We invest in energy globally. Real estate, we've been doing real estate for 30 years, and the returns are actually very, very strong. We are the only large global alt, alts firm with a dedicated aerospace and defense team. we are the only large global alt alts firm with a dedicated aerospace and defense team I think being a D.C.-based firm, we just have an edge in this space. i think being a d.c.-based firm we just have an edge in this space We've invested $14 billion in A&D, and you can see the returns at 3.3 MOIC. we've invested $14 billion in a&d and you can see the returns at 3.3 moic They're just fantastic. they're just fantastic We have a really good A&D team. we have a really good a&d team The leader of that team's been at Carlyle for 25+ years. the leader of that team's been at carlyle for 25+ years The bench is deep, but we see this as an enormous opportunity that's approaching us. the bench is deep but we see this as an enormous opportunity that's approaching us Real assets. real assets For us, that is real estate, we have a great real estate business, energy and infrastructure. for us that is real estate we have a great real estate business energy and infrastructure We've been in the energy space for 25 years. we've been in the energy space for 25 years We invest in energy globally. we invest in energy globally Real estate, we've been doing real estate for 30 years, and the returns are actually very, very strong. real estate we've been doing real estate for 30 years and the returns are actually very very strong We were able to raise our tenth vintage real estate fund in the 2024/2025 timeframe, we raised $9 billion. This was in a timeframe where no one was raising real estate money. How did we do that? I think it just comes down to returns. We have outperformed the market, and our returns are durable and consistent. Our infrastructure business, look, we have very good performance in infrastructure. I think this is gonna be a big growth area for us going forward. Jeff Nedelman touched a little bit on the flow, our views on flows for the next three years. We're expecting $50 billion of flows over the next three years. That is up 70% from the prior three years. What is it driven by? Our existing core business. We were able to raise our tenth vintage real estate fund in the 2024/2025 timeframe, we raised $9 billion. we were able to raise our tenth vintage real estate fund in the 2024/2025 timeframe we raised $9 billion This was in a timeframe where no one was raising real estate money. this was in a timeframe where no one was raising real estate money How did we do that? how did we do that I think it just comes down to returns. i think it just comes down to returns We have outperformed the market, and our returns are durable and consistent. we have outperformed the market and our returns are durable and consistent Our infrastructure business, look, we have very good performance in infrastructure. our infrastructure business look we have very good performance in infrastructure I think this is gonna be a big growth area for us going forward. i think this is gonna be a big growth area for us going forward Jeff Nedelman touched a little bit on the flow, our views on flows for the next three years. jeff nedelman touched a little bit on the flow our views on flows for the next three years We're expecting $50 billion of flows over the next three years. we're expecting $50 billion of flows over the next three years That is up 70% from the prior three years. that is up 70% from the prior three years What is it driven by? what is it driven by Our existing core business. our existing core business All flagship strategies will be in the market over the next three years. Really, Jeff used the term super fundraising cycle. It is a super fundraising cycle for global private equity. We're leaning into areas where we clearly have an edge, like carve-outs in aerospace defense, national security. Lastly, we're gonna scale our private equity wealth product, which we just launched in the fall of 2025, and this product really, it really benefits from the best of Carlyle across the private equity product or platform, sorry. All flagship strategies will be in the market over the next three years. all flagship strategies will be in the market over the next three years Really, Jeff used the term super fundraising cycle. really jeff used the term super fundraising cycle It is a super fundraising cycle for global private equity. it is a super fundraising cycle for global private equity We're leaning into areas where we clearly have an edge, like carve-outs in aerospace defense, national security. we're leaning into areas where we clearly have an edge like carve-outs in aerospace defense national security Lastly, we're gonna scale our private equity wealth product, which we just launched in the fall of 2025, and this product really, it really benefits from the best of Carlyle across the private equity product or platform, sorry. lastly we're gonna scale our private equity wealth product which we just launched in the fall of 2025 and this product really it really benefits from the best of carlyle across the private equity product or platform sorry All right, leave you with a couple thoughts. I only have a couple seconds left. We are incredibly focused on delivering performance excellence, investment performance excellence. We think the business is incredibly well-positioned, particularly for the opportunity set we're looking at today. All right, leave you with a couple thoughts. all right leave you with a couple thoughts I only have a couple seconds left. i only have a couple seconds left We are incredibly focused on delivering performance excellence, investment performance excellence. we are incredibly focused on delivering performance excellence investment performance excellence We think the business is incredibly well-positioned, particularly for the opportunity set we're looking at today. we think the business is incredibly well-positioned particularly for the opportunity set we're looking at today We have a incredibly strong brand in global private equity. We've got a great long-term track record. We are delivering beyond what we have conveyed to our LPs. Business is really showing momentum, targeting $50 billion of flows. It's a super cycle for global private equity as well. Now I'm gonna shift gears and talk about AlpInvest. We don't need the voice of God, I'm still John Redett. I'm gonna start by just stating the obvious: This is a great business. This is a high-growth scale business with over $100 billion of AUM. High growth, 100% organic. We didn't buy this growth. The business is diversified. We have a 25-year track record. The easiest way to describe this business, and I like to simplify things, it's a liquidity solutions provider to the private markets. We have a incredibly strong brand in global private equity. we have a incredibly strong brand in global private equity We've got a great long-term track record. we've got a great long-term track record We are delivering beyond what we have conveyed to our LPs. we are delivering beyond what we have conveyed to our lps Business is really showing momentum, targeting $50 billion of flows. business is really showing momentum targeting $50 billion of flows It's a super cycle for global private equity as well. it's a super cycle for global private equity as well Now I'm gonna shift gears and talk about AlpInvest. now i'm gonna shift gears and talk about alpinvest We don't need the voice of God, I'm still John Redett. we don't need the voice of god i'm still john redett I'm gonna start by just stating the obvious: This is a great business. i'm gonna start by just stating the obvious this is a great business This is a high-growth scale business with over $100 billion of AUM. this is a high-growth scale business with over $100 billion of aum High growth, 100% organic. high growth 100% organic We didn't buy this growth. we didn't buy this growth The business is diversified. the business is diversified We have a 25-year track record. we have a 25-year track record The easiest way to describe this business, and I like to simplify things, it's a liquidity solutions provider to the private markets. the easiest way to describe this business and i like to simplify things it's a liquidity solutions provider to the private markets Harvey touched on this a bit earlier. We really focused on integrating this business several years ago, into the Carlyle, the broader Carlyle platform, and the results are clearly positive. I think the integration actually accelerated this high growth we've seen. AlpInvest benefits from being part of Carlyle, and Carlyle benefits from AlpInvest. Again, this is just an amazing business. As a PE investor, it has all the attributes one looks for when you buy a company: high growth, scale, strong margins, industry leader, and the last one I love, high barriers to entry. I think most people think of AlpInvest, and I would have put myself in this camp several years ago before I became CFO, as a secondaries business, and we have a great secondaries business, but it's a very diversified business. Harvey touched on this a bit earlier. harvey touched on this a bit earlier We really focused on integrating this business several years ago, into the Carlyle, the broader Carlyle platform, and the results are clearly positive. we really focused on integrating this business several years ago into the carlyle the broader carlyle platform and the results are clearly positive I think the integration actually accelerated this high growth we've seen. i think the integration actually accelerated this high growth we've seen AlpInvest benefits from being part of Carlyle, and Carlyle benefits from AlpInvest. alpinvest benefits from being part of carlyle and carlyle benefits from alpinvest Again, this is just an amazing business. again this is just an amazing business As a PE investor, it has all the attributes one looks for when you buy a company: high growth, scale, strong margins, industry leader, and the last one I love, high barriers to entry. as a pe investor it has all the attributes one looks for when you buy a company high growth scale strong margins industry leader and the last one i love high barriers to entry I think most people think of AlpInvest, and I would have put myself in this camp several years ago before I became CFO, as a secondaries business, and we have a great secondaries business, but it's a very diversified business. i think most people think of alpinvest and i would have put myself in this camp several years ago before i became cfo as a secondaries business and we have a great secondaries business but it's a very diversified business We have a great co-investment business, a primary business, and a portfolio finance business. We have a 25-year track record. The returns are strong and consistent. High barriers to entry, I touched on that. I'm not sure how you replicate 25 years of data on 30,000 companies and long-standing GP relationships. There are only a handful of scaled industry participants. You have really strong industry tailwinds that are both secular and cyclical. Supply, investment supply, exceeds capital formation. That's a, that's a healthy dynamic. We have a great co-investment business, a primary business, and a portfolio finance business. we have a great co-investment business a primary business and a portfolio finance business We have a 25-year track record. we have a 25-year track record The returns are strong and consistent. the returns are strong and consistent High barriers to entry, I touched on that. high barriers to entry i touched on that I'm not sure how you replicate 25 years of data on 30,000 companies and long-standing GP relationships. i'm not sure how you replicate 25 years of data on 30,000 companies and long-standing gp relationships There are only a handful of scaled industry participants. there are only a handful of scaled industry participants You have really strong industry tailwinds that are both secular and cyclical. you have really strong industry tailwinds that are both secular and cyclical Supply, investment supply, exceeds capital formation. supply investment supply exceeds capital formation That's a, that's a healthy dynamic. that's a that's a healthy dynamic The wealth opportunity set, it's real. I should say wealth and retirement. It's basically diversified PE exposure with limited J-curve, and we've had great success scaling CAPM. Flows are up almost 3x over the last 12 months. This business is certainly benefiting from cyclical tailwinds, but more fundamentally, it's structural. The wealth opportunity set, it's real. the wealth opportunity set it's real I should say wealth and retirement. i should say wealth and retirement It's basically diversified PE exposure with limited J-curve, and we've had great success scaling CAPM. it's basically diversified pe exposure with limited j-curve and we've had great success scaling capm Flows are up almost 3x over the last 12 months. flows are up almost 3x over the last 12 months This business is certainly benefiting from cyclical tailwinds, but more fundamentally, it's structural. this business is certainly benefiting from cyclical tailwinds but more fundamentally it's structural We are in the middle of reshaping how the traditional private equity model works. For LPs, we buy exposure, we lend against exposure, help rebalance portfolios, unlock new capital, and we create liquidity. For GPs, we touch GPs at literally every point of their life cycle. We optimize every dollar of capital, we provide GP financings, mid-life co-investment, continuation vehicles, and fund financing. We are in the middle of reshaping how the traditional private equity model works. we are in the middle of reshaping how the traditional private equity model works For LPs, we buy exposure, we lend against exposure, help rebalance portfolios, unlock new capital, and we create liquidity. for lps we buy exposure we lend against exposure help rebalance portfolios unlock new capital and we create liquidity For GPs, we touch GPs at literally every point of their life cycle. for gps we touch gps at literally every point of their life cycle We optimize every dollar of capital, we provide GP financings, mid-life co-investment, continuation vehicles, and fund financing. we optimize every dollar of capital we provide gp financings mid-life co-investment continuation vehicles and fund financing We go incredibly deep in the sponsor ecosystem, positioned to be a winner in both private equity and credit. You can really see how the businesses are connected. Over around 60% of our GPs use multiple AlpInvest strategies or products. We're really a real solutions provider. I mentioned earlier, this is a diversified business, but the businesses are incredibly connected. They're not just funds. Each business helps drive activity across the broader platform. We go incredibly deep in the sponsor ecosystem, positioned to be a winner in both private equity and credit. we go incredibly deep in the sponsor ecosystem positioned to be a winner in both private equity and credit You can really see how the businesses are connected. you can really see how the businesses are connected Over around 60% of our GPs use multiple AlpInvest strategies or products. over around 60% of our gps use multiple alpinvest strategies or products We're really a real solutions provider. we're really a real solutions provider I mentioned earlier, this is a diversified business, but the businesses are incredibly connected. i mentioned earlier this is a diversified business but the businesses are incredibly connected They're not just funds. they're not just funds Each business helps drive activity across the broader platform. each business helps drive activity across the broader platform The primary business, that very much drives a lot of activity in the secondary business because of the connectivity with the GPs. Secondaries and portfolio finance are roughly 50% of the business, primary is around 25% of the business, and co-investment, 25% of the business. I don't have wealth on the pie chart, but wealth is roughly 7% of the AUM, but that's cross-platform, so that would be embedded into these percentages. The primary business, that very much drives a lot of activity in the secondary business because of the connectivity with the GPs. the primary business that very much drives a lot of activity in the secondary business because of the connectivity with the gps Secondaries and portfolio finance are roughly 50% of the business, primary is around 25% of the business, and co-investment, 25% of the business. secondaries and portfolio finance are roughly 50% of the business primary is around 25% of the business and co-investment 25% of the business I don't have wealth on the pie chart, but wealth is roughly 7% of the AUM, but that's cross-platform, so that would be embedded into these percentages. i don't have wealth on the pie chart but wealth is roughly 7% of the aum but that's cross-platform so that would be embedded into these percentages I think of this business as a scaled liquidity solutions provider, but it's also a data-driven business. There are only a handful of scaled competitors. We have 375 GP relationships, over 700 LP relationships. The scale and depth of these GP relationships, long track record, really enable us to capture new areas of growth, like credit secondaries. Data. I think of this business as a scaled liquidity solutions provider, but it's also a data-driven business. i think of this business as a scaled liquidity solutions provider but it's also a data-driven business There are only a handful of scaled competitors. there are only a handful of scaled competitors We have 375 GP relationships, over 700 LP relationships. we have 375 gp relationships over 700 lp relationships The scale and depth of these GP relationships, long track record, really enable us to capture new areas of growth, like credit secondaries. the scale and depth of these gp relationships long track record really enable us to capture new areas of growth like credit secondaries Data. data This is a data-driven business. We have data on 30,000 companies. That's 11 million data points. This massive amount of data, it puts a moat around this business, and it really gives us tremendous leverage in this business. I guess I have a lot of favorite slides because this is my absolute favorite slide. I probably don't even need to say much, but you can see we're able to drive management fee growth by nearly a 40% CAGR over the last three years in this business. FRE is up nearly 4x over the last three years. It's important to note again, this was 100% organic. We did not buy this growth. Three years ago, this business was 8% of Carlyle FRE. This is a data-driven business. this is a data-driven business We have data on 30,000 companies. we have data on 30,000 companies That's 11 million data points. that's 11 million data points This massive amount of data, it puts a moat around this business, and it really gives us tremendous leverage in this business. this massive amount of data it puts a moat around this business and it really gives us tremendous leverage in this business I guess I have a lot of favorite slides because this is my absolute favorite slide. i guess i have a lot of favorite slides because this is my absolute favorite slide I probably don't even need to say much, but you can see we're able to drive management fee growth by nearly a 40% CAGR over the last three years in this business. i probably don't even need to say much but you can see we're able to drive management fee growth by nearly a 40% cagr over the last three years in this business FRE is up nearly 4x over the last three years. fre is up nearly 4x over the last three years It's important to note again, this was 100% organic. it's important to note again this was 100% organic We did not buy this growth. we did not buy this growth Three years ago, this business was 8% of Carlyle FRE. three years ago this business was 8% of carlyle fre Today, that number is 22% of firm-wide FRE. Very, very pleased with that. We are also able to drive real margin improvement in this business. FRE margins have improved 2,000 basis points over the last three years. The margin now better reflects the scale of this business, and these margins were achieved through growth and scale. We did not cut our way to these margins, and we had $40 billion of inflows the last three years in this business. The priorities for the firm relating to this business... Look, investment performance is key to any investment business we have. It's been strong across the business. It's been consistent. We're really focusing on leveraging our current scale in this business. Today, that number is 22% of firm-wide FRE. today that number is 22% of firm-wide fre Very, very pleased with that. very very pleased with that We are also able to drive real margin improvement in this business. we are also able to drive real margin improvement in this business FRE margins have improved 2,000 basis points over the last three years. fre margins have improved 2,000 basis points over the last three years The margin now better reflects the scale of this business, and these margins were achieved through growth and scale. the margin now better reflects the scale of this business and these margins were achieved through growth and scale We did not cut our way to these margins, and we had $40 billion of inflows the last three years in this business. we did not cut our way to these margins and we had $40 billion of inflows the last three years in this business The priorities for the firm relating to this business... the priorities for the firm relating to this business Look, investment performance is key to any investment business we have. look investment performance is key to any investment business we have It's been strong across the business. it's been strong across the business It's been consistent. it's been consistent We're really focusing on leveraging our current scale in this business. we're really focusing on leveraging our current scale in this business It's an advantage. We're looking for ways to accelerate already a high growth rate. How are we doing that? Well, wealth retirement, credit secondaries, portfolio finance, and insurance. Again, the core of the business, will continue to be a very high growth business as well. Real tailwinds in this, in this industry. Since inception, this slide's fairly self-explanatory, but since inception, the returns have been strong across the platform. Secondaries gross IRR, 19%, co-investment around 18%. Our investment professionals take a view on the assets, the quality of the assets, and the quality of the GP. We don't approach the market like a big index buyer or a top-down buyer. We also don't play in the deep discount space. That's just never been a focus area for Carlyle AlpInvest. It's an advantage. it's an advantage We're looking for ways to accelerate already a high growth rate. we're looking for ways to accelerate already a high growth rate How are we doing that? how are we doing that Well, wealth retirement, credit secondaries, portfolio finance, and insurance. well wealth retirement credit secondaries portfolio finance and insurance Again, the core of the business, will continue to be a very high growth business as well. again the core of the business will continue to be a very high growth business as well Real tailwinds in this, in this industry. real tailwinds in this in this industry Since inception, this slide's fairly self-explanatory, but since inception, the returns have been strong across the platform. since inception this slide's fairly self-explanatory but since inception the returns have been strong across the platform Secondaries gross IRR, 19%, co-investment around 18%. secondaries gross irr 19% co-investment around 18% Our investment professionals take a view on the assets, the quality of the assets, and the quality of the GP. our investment professionals take a view on the assets the quality of the assets and the quality of the gp We don't approach the market like a big index buyer or a top-down buyer. we don't approach the market like a big index buyer or a top-down buyer We also don't play in the deep discount space. we also don't play in the deep discount space That's just never been a focus area for Carlyle AlpInvest. that's just never been a focus area for carlyle alpinvest We transact on 5% of what we see, so we can be incredibly selective, which is a real advantage. I've said that this business has a lot of tailwinds. They're both secular and cyclical. In the secondaries market, that's a big market. Let's use that one as an example. The secondaries market is doubling in size every four years to five years. It's an incredible tailwind. This is creating a real shortfall in capital versus supply. I think this trend will continue for the foreseeable future. When we talk to GPs today, 75% of the GPs we talk to are going to use the secondary market over the next two years. Five years ago, I think this number would have been closer to 25%. We transact on 5% of what we see, so we can be incredibly selective, which is a real advantage. we transact on 5% of what we see so we can be incredibly selective which is a real advantage I've said that this business has a lot of tailwinds. i've said that this business has a lot of tailwinds They're both secular and cyclical. they're both secular and cyclical In the secondaries market, that's a big market. in the secondaries market that's a big market Let's use that one as an example. let's use that one as an example The secondaries market is doubling in size every four years to five years. the secondaries market is doubling in size every four years to five years It's an incredible tailwind. years it's an incredible tailwind This is creating a real shortfall in capital versus supply. this is creating a real shortfall in capital versus supply I think this trend will continue for the foreseeable future. i think this trend will continue for the foreseeable future When we talk to GPs today, 75% of the GPs we talk to are going to use the secondary market over the next two years. when we talk to gps today 75% of the gps we talk to are going to use the secondary market over the next two years Five years ago, I think this number would have been closer to 25%. five years ago i think this number would have been closer to 25% Real pickup in penetration on the secondary product. Let's talk about the forward-looking flows. We expect this business to continue to be a high growth business. That growth is going to be driven by the existing business, secondaries, co-investment, they're key growth drivers. Supply exceeds capital formation. There's only enough capital that's been raised to last to meet supply for a little over one year, and if you look at over time, that has been coming down for the last five years. Five years ago, it was about three years. Today, that's one year. This is a huge tailwind. It's not a constraint to us deploying capital. It enables us to be very selective. We transact in only 5% of what we see. Real pickup in penetration on the secondary product. real pickup in penetration on the secondary product Let's talk about the forward-looking flows. let's talk about the forward-looking flows We expect this business to continue to be a high growth business. we expect this business to continue to be a high growth business That growth is going to be driven by the existing business, secondaries, co-investment, they're key growth drivers. that growth is going to be driven by the existing business secondaries co-investment they're key growth drivers Supply exceeds capital formation. supply exceeds capital formation There's only enough capital that's been raised to last to meet supply for a little over one year, and if you look at over time, that has been coming down for the last five years. there's only enough capital that's been raised to last to meet supply for a little over one year and if you look at over time that has been coming down for the last five years Five years ago, it was about three years. five years ago it was about three years Today, that's one year. today that's one year This is a huge tailwind. this is a huge tailwind It's not a constraint to us deploying capital. it's not a constraint to us deploying capital It enables us to be very selective. it enables us to be very selective We transact in only 5% of what we see. we transact in only 5% of what we see The current secondaries platform is 80% committed. Deployment pace was similar to the previous vintage. I like our pacing on that. As we think about scaling some of the newer businesses, we think that will further accelerate what we think will be already strong growth from our core business. Credit secondaries, portfolio finance, and insurance should further accelerate growth when we look forward. Again, wealth, we expect wealth to continue to be a driver. Maybe it's not linear, but long term, we think it's a great wealth product. We expect $60 billion of flows over the next three years. The current secondaries platform is 80% committed. the current secondaries platform is 80% committed Deployment pace was similar to the previous vintage. deployment pace was similar to the previous vintage I like our pacing on that. i like our pacing on that As we think about scaling some of the newer businesses, we think that will further accelerate what we think will be already strong growth from our core business. as we think about scaling some of the newer businesses we think that will further accelerate what we think will be already strong growth from our core business Credit secondaries, portfolio finance, and insurance should further accelerate growth when we look forward. credit secondaries portfolio finance and insurance should further accelerate growth when we look forward Again, wealth, we expect wealth to continue to be a driver. again wealth we expect wealth to continue to be a driver Maybe it's not linear, but long term, we think it's a great wealth product. maybe it's not linear but long term we think it's a great wealth product We expect $60 billion of flows over the next three years. we expect $60 billion of flows over the next three years To put it in perspective, we had $40 billion of flows the last three years, we're looking for a 50% increase of flows in the next three years. Like credit, like global private equity, this is a super cycle for Carlyle AlpInvest. Every single strategy will be in the market in the next three years. A couple of key takeaways. We've proven this is a high-growth business, and we expect it to continue. The industry has real tailwinds. Our growth has been 100% organic. This business is driven by deep, long-standing GP relationships and the proprietary data we've collected over the last 25 years. We touch the GP at every part of their life cycle, you can't really replicate 25 years of data on 30,000 companies. To put it in perspective, we had $40 billion of flows the last three years, we're looking for a 50% increase of flows in the next three years. to put it in perspective we had $40 billion of flows the last three years we're looking for a 50% increase of flows in the next three years Like credit, like global private equity, this is a super cycle for Carlyle AlpInvest. like credit like global private equity this is a super cycle for carlyle alpinvest Every single strategy will be in the market in the next three years. every single strategy will be in the market in the next three years A couple of key takeaways. a couple of key takeaways We've proven this is a high-growth business, and we expect it to continue. we've proven this is a high-growth business and we expect it to continue The industry has real tailwinds. the industry has real tailwinds Our growth has been 100% organic. our growth has been 100% organic This business is driven by deep, long-standing GP relationships and the proprietary data we've collected over the last 25 years. this business is driven by deep long-standing gp relationships and the proprietary data we've collected over the last 25 years We touch the GP at every part of their life cycle, you can't really replicate 25 years of data on 30,000 companies. we touch the gp at every part of their life cycle you can't really replicate 25 years of data on 30,000 companies There are only a handful of scaled industry participants, and there are real barriers to entry in this industry. You read a lot about new industry participants. I think they're highly specialized, and they're small. They completely lack the depth and breadth of GP relationships, and we have the ability to attack them when we want. In this business, I think we have a clear right to win. Thank you. There are only a handful of scaled industry participants, and there are real barriers to entry in this industry. there are only a handful of scaled industry participants and there are real barriers to entry in this industry You read a lot about new industry participants. you read a lot about new industry participants I think they're highly specialized, and they're small. i think they're highly specialized and they're small They completely lack the depth and breadth of GP relationships, and we have the ability to attack them when we want. they completely lack the depth and breadth of gp relationships and we have the ability to attack them when we want In this business, I think we have a clear right to win. in this business i think we have a clear right to win Thank you. thank you

Speaker 20: We will now take a brief break. The session will resume momentarily with Leveraging AI Across Carlyle. We will now resume the session with Leveraging AI Across Carlyle. We will now take a brief break. we will now take a brief break The session will resume momentarily with Leveraging AI Across Carlyle. the session will resume momentarily with leveraging ai across carlyle We will now resume the session with Leveraging AI Across Carlyle. we will now resume the session with leveraging ai across carlyle

Speaker 12: All right. Hi, everyone. I am Lindsay LoBue, the Chief Operating Officer at Carlyle. This morning we've been talking about how Carlyle's continued to evolve and grow across the firm. As part of my job as a chief operating officer, is actually to create an operating model that allows our businesses to scale and to build. AI is a core part of our operating model. Today I'm here with two of my colleagues to actually talk about how we're putting AI in the works of everybody's hands across the firm, and actually, how we're using it to scale our business. Here I have Lúcia Soares, who is our Chief Information Officer and Head of Transformation, and Matt Anderson, who is our Chief Digital Officer and Head of Data Science. With that, we're just going to get started. All right. all right Hi, everyone. hi everyone I am Lindsay LoBue, the Chief Operating Officer at Carlyle. i am lindsay lobue the chief operating officer at carlyle This morning we've been talking about how Carlyle's continued to evolve and grow across the firm. this morning we've been talking about how carlyle's continued to evolve and grow across the firm As part of my job as a chief operating officer, is actually to create an operating model that allows our businesses to scale and to build. as part of my job as a chief operating officer is actually to create an operating model that allows our businesses to scale and to build AI is a core part of our operating model. ai is a core part of our operating model Today I'm here with two of my colleagues to actually talk about how we're putting AI in the works of everybody's hands across the firm, and actually, how we're using it to scale our business. today i'm here with two of my colleagues to actually talk about how we're putting ai in the works of everybody's hands across the firm and actually how we're using it to scale our business Here I have Lúcia Soares, who is our Chief Information Officer and Head of Transformation, and Matt Anderson, who is our Chief Digital Officer and Head of Data Science. here i have lúcia soares who is our chief information officer and head of transformation and matt anderson who is our chief digital officer and head of data science With that, we're just going to get started. with that we're just going to get started Lúcia, can you walk us through Carlyle's AI journey? Lúcia, can you walk us through Carlyle's AI journey? lúcia can you walk us through carlyle's ai journey

Speaker 13: Yes. Our journey with AI started years before the AI hype infused every boardroom. Six years ago, our data science team, led by Matt, posited that machine learning could actually help us drive superior investment outcomes, and they started seeing some early results even before foundational models came onto the scene. In 2023, when generative AI became big news, we immediately recognized that democratizing this AI across the firm would have transformational power. As a result of that, we decided to lean in early and very quickly. We were the first private markets asset management firm to deploy ChatGPT Enterprise for our employees. We didn't just deploy one tool, we deployed multiple tools, because the size of our firm actually allows us to be more nimble and agile versus larger enterprises. We can play around with more things. Yes. yes Our journey with AI started years before the AI hype infused every boardroom. our journey with ai started years before the ai hype infused every boardroom Six years ago, our data science team, led by Matt, posited that machine learning could actually help us drive superior investment outcomes, and they started seeing some early results even before foundational models came onto the scene. six years ago our data science team led by matt posited that machine learning could actually help us drive superior investment outcomes and they started seeing some early results even before foundational models came onto the scene In 2023, when generative AI became big news, we immediately recognized that democratizing this AI across the firm would have transformational power. in 2023 when generative ai became big news we immediately recognized that democratizing this ai across the firm would have transformational power As a result of that, we decided to lean in early and very quickly. as a result of that we decided to lean in early and very quickly We were the first private markets asset management firm to deploy ChatGPT Enterprise for our employees. we were the first private markets asset management firm to deploy chatgpt enterprise for our employees We didn't just deploy one tool, we deployed multiple tools, because the size of our firm actually allows us to be more nimble and agile versus larger enterprises. we didn't just deploy one tool we deployed multiple tools because the size of our firm actually allows us to be more nimble and agile versus larger enterprises We can play around with more things. we can play around with more things We achieved 90% adoption in 9 months with these tools at employees' hands. They started to experiment with them, put them into their everyday work, and we saw recently an increase of about 213% usage of these tools. The breadth and the depth of what we're doing is really transformational for how our employees are engaged. It's important to think about, you know, these numbers, but really, what we're seeing is that AI is being embedded into the DNA of the firm, and it's transforming how people work, and because of that, our people are working alongside our engineers, developing AI solutions with us. We have more than 50 AI solutions today deployed across the firm. 65% of our technology investments are focused at the tip of the spear, transforming how our deal teams and how our sales teams are operating. We achieved 90% adoption in 9 months with these tools at employees' hands. we achieved 90% adoption in 9 months with these tools at employees' hands They started to experiment with them, put them into their everyday work, and we saw recently an increase of about 213% usage of these tools. they started to experiment with them put them into their everyday work and we saw recently an increase of about 213% usage of these tools The breadth and the depth of what we're doing is really transformational for how our employees are engaged. the breadth and the depth of what we're doing is really transformational for how our employees are engaged It's important to think about, you know, these numbers, but really, what we're seeing is that AI is being embedded into the DNA of the firm, and it's transforming how people work, and because of that, our people are working alongside our engineers, developing AI solutions with us. it's important to think about you know these numbers but really what we're seeing is that ai is being embedded into the dna of the firm and it's transforming how people work and because of that our people are working alongside our engineers developing ai solutions with us We have more than 50 AI solutions today deployed across the firm. 65% of our technology investments are focused at the tip of the spear, transforming how our deal teams and how our sales teams are operating. we have more than 50 ai solutions today deployed across the firm 65% of our technology investments are focused at the tip of the spear transforming how our deal teams and how our sales teams are operating We're also scaling our engineering platform. We grew our generative AI talent by 180% since 2023, and we also have deployed, since April, 10 million lines of code into our environment, leveraging AI, which we would not have been able to do pre-AI, period. More recently, one of our LLM providers indicated to us that we're in the top percentile of token usage, which means that we're actually leaning in, meaningfully developing solutions in our organization. Carlyle was really made for this moment. We saw the opportunity early, we leaned in, and we were able to execute with AI embedded across the firm. We're also scaling our engineering platform. we're also scaling our engineering platform We grew our generative AI talent by 180% since 2023, and we also have deployed, since April, 10 million lines of code into our environment, leveraging AI, which we would not have been able to do pre-AI, period. we grew our generative ai talent by 180% since 2023 and we also have deployed since april 10 million lines of code into our environment leveraging ai which we would not have been able to do pre-ai period More recently, one of our LLM providers indicated to us that we're in the top percentile of token usage, which means that we're actually leaning in, meaningfully developing solutions in our organization. more recently one of our llm providers indicated to us that we're in the top percentile of token usage which means that we're actually leaning in meaningfully developing solutions in our organization Carlyle was really made for this moment. carlyle was really made for this moment We saw the opportunity early, we leaned in, and we were able to execute with AI embedded across the firm. we saw the opportunity early we leaned in and we were able to execute with ai embedded across the firm

Speaker 12: Clearly, we were fast and we were early, but AI is only as good as the data that drives it. Matt, can you talk a little bit about how data at Carlyle, and does it give us a little bit of a competitive edge? Clearly, we were fast and we were early, but AI is only as good as the data that drives it. clearly we were fast and we were early but ai is only as good as the data that drives it Matt, can you talk a little bit about how data at Carlyle, and does it give us a little bit of a competitive edge? matt can you talk a little bit about how data at carlyle and does it give us a little bit of a competitive edge

Speaker 15: Yeah, you know, we quietly entered the AI space about six years ago. For actually many years before that, you know, five years, 10 years before that, we'd actually been accumulating the data into a database, so it was structured and organized from all of our investing. There had been a lot of work that went on really before even I arrived here, and, you know, I think we've really emerged as a force. The reason for that is because Carlyle has a huge and rich history of investing and the data around that, and we've been capturing that data, right? Sometimes. Long, long ago, before the computers, it's been in notebooks, but really, you know, PDFs and other kinds of things. Yeah, you know, we quietly entered the AI space about six years ago. yeah you know we quietly entered the ai space about six years ago For actually many years before that, you know, five years , 10 years before that, we'd actually been accumulating the data into a database, so it was structured and organized from all of our investing. for actually many years before that you know five years 10 years before that we'd actually been accumulating the data into a database so it was structured and organized from all of our investing There had been a lot of work that went on really before even I arrived here, and, you know, I think we've really emerged as a force. there had been a lot of work that went on really before even i arrived here and you know i think we've really emerged as a force The reason for that is because Carlyle has a huge and rich history of investing and the data around that, and we've been capturing that data, right? the reason for that is because carlyle has a huge and rich history of investing and the data around that and we've been capturing that data right Sometimes. sometimes Long, long ago, before the computers, it's been in notebooks, but really, you know, PDFs and other kinds of things. long long ago before the computers it's been in notebooks but really you know pdfs and other kinds of things We've taken a very concerted effort to extract all that information out of what we call unstructured information, and put it in a database where it's structured. Now, if you look at our statistics, when I arrived in 2020, we had. It was about 72 terabytes of data, and it covered about 11,000 companies at the time. Over the last five, six years, so as of basically last month, we've grown that, you know, almost 800%. It's around 790%, about 200% a year. If you, if you want to figure out, like, how much we've been adding, we've added the equivalent of 10 petabytes per year. We've taken a very concerted effort to extract all that information out of what we call unstructured information, and put it in a database where it's structured. we've taken a very concerted effort to extract all that information out of what we call unstructured information and put it in a database where it's structured Now, if you look at our statistics, when I arrived in 2020, we had. now if you look at our statistics when i arrived in 2020 we had It was about 72 terabytes of data, and it covered about 11,000 companies at the time. it was about 72 terabytes of data and it covered about 11,000 companies at the time Over the last five, six years, so as of basically last month, we've grown that, you know, almost 800%. over the last five six years so as of basically last month we've grown that you know almost 800% It's around 790%, about 200% a year. it's around 790% about 200% a year If you, if you want to figure out, like, how much we've been adding, we've added the equivalent of 10 petabytes per year. if you if you want to figure out like how much we've been adding we've added the equivalent of 10 petabytes per year Harvey Schwartz asked me yesterday, "What is a petabyte?" I'll tell you what a petabyte is: 10 petabytes is basically equal to 100,000 4K high-definition movies, or if you were just to divide that by our employee count, it basically means we have hundreds of hours of movies per employee. It's really a lot of data about what we've been doing and how we've been working, and that kind of thing. Now our data set is actually 62,770 terabytes or 62 petabytes, when you think about what that means, it means that we effectively have unstructured, structured information, context around where companies are, employees, technology. We really understand a lot of the ecosystem around the company, and then we have some very highly proprietary data. Harvey Schwartz asked me yesterday, "What is a petabyte?" I'll tell you what a petabyte is: 10 petabytes is basically equal to 100,000 4K high-definition movies, or if you were just to divide that by our employee count, it basically means we have hundreds of hours of movies per employee. harvey schwartz asked me yesterday "what is a petabyte?" i'll tell you what a petabyte is 10 petabytes is basically equal to 100,000 4k high-definition movies or if you were just to divide that by our employee count it basically means we have hundreds of hours of movies per employee It's really a lot of data about what we've been doing and how we've been working, and that kind of thing. it's really a lot of data about what we've been doing and how we've been working and that kind of thing Now our data set is actually 62,770 terabytes or 62 petabytes, when you think about what that means, it means that we effectively have unstructured, structured information, context around where companies are, employees, technology. now our data set is actually 62,770 terabytes or 62 petabytes when you think about what that means it means that we effectively have unstructured structured information context around where companies are employees technology We really understand a lot of the ecosystem around the company, and then we have some very highly proprietary data. we really understand a lot of the ecosystem around the company and then we have some very highly proprietary data About 30,000 companies, you heard John refer to it yesterday or sorry, earlier today, and that corresponds to about 11 million data points. Why does all this matter? It all matters because one day, all of these great foundational models are all going to converge around basically the same capability. They're all going to be able to do something very similar to each other, and what's going to matter is how your data unlocks incremental insights in the middle of a deal process, and that's what we've really been working on unleashing. Our data is all organized, it's stored. We have it in Snowflake and Databricks, a whole host of different solutions, and that means that we can sort of bring that data to our investors in days when we get new datasets or new models. About 30,000 companies, you heard John refer to it yesterday or sorry, earlier today, and that corresponds to about 11 million data points. about 30,000 companies you heard john refer to it yesterday or sorry earlier today and that corresponds to about 11 million data points Why does all this matter? why does all this matter It all matters because one day, all of these great foundational models are all going to converge around basically the same capability. it all matters because one day all of these great foundational models are all going to converge around basically the same capability They're all going to be able to do something very similar to each other, and what's going to matter is how your data unlocks incremental insights in the middle of a deal process, and that's what we've really been working on unleashing. they're all going to be able to do something very similar to each other and what's going to matter is how your data unlocks incremental insights in the middle of a deal process and that's what we've really been working on unleashing Our data is all organized, it's stored. our data is all organized it's stored We have it in Snowflake and Databricks, a whole host of different solutions, and that means that we can sort of bring that data to our investors in days when we get new datasets or new models. we have it in snowflake and databricks a whole host of different solutions and that means that we can sort of bring that data to our investors in days when we get new datasets or new models We've really been working on our agility around that data, because it's going to be the source of differentiation in our industry, and we have one of the largest datasets that I know of in this industry. We've really been working on our agility around that data, because it's going to be the source of differentiation in our industry, and we have one of the largest datasets that I know of in this industry. we've really been working on our agility around that data because it's going to be the source of differentiation in our industry and we have one of the largest datasets that i know of in this industry

Speaker 12: Okay. Well, clearly, we've led when it comes to adoption and scale and organizing our data. How do we actually measure the value AI is creating and delivering into the firm? Okay. okay Well, clearly, we've led when it comes to adoption and scale and organizing our data. well clearly we've led when it comes to adoption and scale and organizing our data How do we actually measure the value AI is creating and delivering into the firm? how do we actually measure the value ai is creating and delivering into the firm

Speaker 13: Yeah, early on, you know, experimentation is key. Moving fast, we don't get tied down by bureaucracy, because we already had hypotheses of where we could drive value with AI, we created a framework early on to measure that value. What that means is you have accountable owners, you have targeted ROI for the different initiatives, and then you measure the value of those initiatives. As an example, we defined a BHAG, a Big Hairy Audacious Goal for ourselves. We said in three years we want to drive a certain level of soft hard cost savings across the firm with the use of AI. We're about a third of the way into that journey. We've already achieved 30% of our value realization target, with line of sight to get to the end. Yeah, early on, you know, experimentation is key. yeah early on you know experimentation is key Moving fast, we don't get tied down by bureaucracy, because we already had hypotheses of where we could drive value with AI, we created a framework early on to measure that value. moving fast we don't get tied down by bureaucracy because we already had hypotheses of where we could drive value with ai we created a framework early on to measure that value What that means is you have accountable owners, you have targeted ROI for the different initiatives, and then you measure the value of those initiatives. what that means is you have accountable owners you have targeted roi for the different initiatives and then you measure the value of those initiatives As an example, we defined a BHAG, a Big Hairy Audacious Goal for ourselves. as an example we defined a bhag a big hairy audacious goal for ourselves We said in three years we want to drive a certain level of soft hard cost savings across the firm with the use of AI. we said in three years we want to drive a certain level of soft hard cost savings across the firm with the use of ai We're about a third of the way into that journey. we're about a third of the way into that journey We've already achieved 30% of our value realization target, with line of sight to get to the end. we've already achieved 30% of our value realization target with line of sight to get to the end That translates into roughly 217,000 hours of gained productivity already that is infused in the front office, in the back office, in the middle office, of everything that we're doing. That being said, we're not here to just use AI to automate the same processes we have today, because that would kind of be a waste of time. We're here to look at how we reinvent how we work, how we change the fabric, the DNA of the firm, with a competitive advantage using AI. Let me give you an example of what that looks like. Earlier today, you heard Mark Jenkins talk about our Asset-Backed Finance business and how it's growing very quickly. It's an important area for us. Well, our deal analysts in that area in the past, they would have a very manual process to do deal screening and deal modeling. That translates into roughly 217,000 hours of gained productivity already that is infused in the front office, in the back office, in the middle office, of everything that we're doing. that translates into roughly 217,000 hours of gained productivity already that is infused in the front office in the back office in the middle office of everything that we're doing That being said, we're not here to just use AI to automate the same processes we have today, because that would kind of be a waste of time. that being said we're not here to just use ai to automate the same processes we have today because that would kind of be a waste of time We're here to look at how we reinvent how we work, how we change the fabric, the DNA of the firm, with a competitive advantage using AI. we're here to look at how we reinvent how we work how we change the fabric the dna of the firm with a competitive advantage using ai Let me give you an example of what that looks like. let me give you an example of what that looks like Earlier today, you heard Mark Jenkins talk about our Asset-Backed Finance business and how it's growing very quickly. earlier today you heard mark jenkins talk about our asset-backed finance business and how it's growing very quickly It's an important area for us. it's an important area for us Well, our deal analysts in that area in the past, they would have a very manual process to do deal screening and deal modeling. well our deal analysts in that area in the past they would have a very manual process to do deal screening and deal modeling It would involve lots of spreadsheets, lots of time, and lots of complexity and calculations. We decided to reimagine that process using AI. Using AI, our solution that we custom-built basically ingests and analyzes more than 100,000 loans per tape. It builds hundreds of rep lines across multiple dimensions, and it performs interactive loan stratification. It would involve lots of spreadsheets, lots of time, and lots of complexity and calculations. it would involve lots of spreadsheets lots of time and lots of complexity and calculations We decided to reimagine that process using AI. we decided to reimagine that process using ai Using AI, our solution that we custom-built basically ingests and analyzes more than 100,000 loans per tape. using ai our solution that we custom-built basically ingests and analyzes more than 100,000 loans per tape It builds hundreds of rep lines across multiple dimensions, and it performs interactive loan stratification. it builds hundreds of rep lines across multiple dimensions and it performs interactive loan stratification That's really cool. You can do that with generative AI. As we know, generative AI is not always 100% accurate and quantitative. Taking that base model, we then built proprietary Python code where we can drive accuracy, and then our solution delivers results across the full loan pool at each rep line in seconds, and it calculates millions of cash flow statements. Our deal teams get the projected IRR, projected MOIC, and other outputs. That's really cool. that's really cool You can do that with generative AI. you can do that with generative ai As we know, generative AI is not always 100% accurate and quantitative. as we know generative ai is not always 100% accurate and quantitative Taking that base model, we then built proprietary Python code where we can drive accuracy, and then our solution delivers results across the full loan pool at each rep line in seconds, and it calculates millions of cash flow statements. taking that base model we then built proprietary python code where we can drive accuracy and then our solution delivers results across the full loan pool at each rep line in seconds and it calculates millions of cash flow statements Our deal teams get the projected IRR, projected MOIC, and other outputs. our deal teams get the projected irr projected moic and other outputs This speed, of course, is transformational because we've taken something that the deal teams were doing one days to two days, and now they can do it in 15 minutes. Besides it being faster, we've transformed the actual process. We've strengthened our underwriting accuracy, and we have built more deal velocity, making us more competitive. Having all of that data now in one cloud repository with AI on top of it, we can use it after the transaction and to build better models for the future. We're doing these solutions across multiple of our segments in private equity and in AlpInvest as well. This speed, of course, is transformational because we've taken something that the deal teams were doing one days to two days, and now they can do it in 15 minutes. this speed of course is transformational because we've taken something that the deal teams were doing one days to two days and now they can do it in 15 minutes Besides it being faster, we've transformed the actual process. besides it being faster we've transformed the actual process We've strengthened our underwriting accuracy, and we have built more deal velocity, making us more competitive. we've strengthened our underwriting accuracy and we have built more deal velocity making us more competitive Having all of that data now in one cloud repository with AI on top of it, we can use it after the transaction and to build better models for the future. having all of that data now in one cloud repository with ai on top of it we can use it after the transaction and to build better models for the future We're doing these solutions across multiple of our segments in private equity and in AlpInvest as well. we're doing these solutions across multiple of our segments in private equity and in alpinvest as well

Speaker 15: Maybe I can jump in and sort of take a real-life example. When we talk about all this data being in our AI platform, this is not like experimentation. We certainly have things in proof of concept in pilot mode, but we've done hundreds of these diligences in private equity since 2024, and 3,700, you know, what I would call light screens of companies, you know, since that date. One of my favorite stories is there's a healthcare company. It basically is a contract manufacturer, so they put out, you know, raw materials into medical devices. The deal team was looking at the deal and said: "Hey, we noticed the revenue is slowing down a little bit. Maybe I can jump in and sort of take a real-life example. maybe i can jump in and sort of take a real-life example When we talk about all this data being in our AI platform, this is not like experimentation. when we talk about all this data being in our ai platform this is not like experimentation We certainly have things in proof of concept in pilot mode, but we've done hundreds of these diligences in private equity since 2024, and 3,700, you know, what I would call light screens of companies, you know, since that date. we certainly have things in proof of concept in pilot mode but we've done hundreds of these diligences in private equity since 2024 and 3,700 you know what i would call light screens of companies you know since that date One of my favorite stories is there's a healthcare company. one of my favorite stories is there's a healthcare company It basically is a contract manufacturer, so they put out, you know, raw materials into medical devices. it basically is a contract manufacturer so they put out you know raw materials into medical devices The deal team was looking at the deal and said: "Hey, we noticed the revenue is slowing down a little bit. the deal team was looking at the deal and said "hey we noticed the revenue is slowing down a little bit We wonder if that's from demand pull forward or destocking, or maybe there's something, you know, structural inside the company that's a little weak. They asked us to help take a look at it with our AI platform. Our AI platform ingested thousands of documents, databases, Excel files, and in basically 2 days-3 days, it had found another set of data sources that are industry specific. This is true, right? Every time you do a diligence, you're interested in companies in general, but you're also interested in what are the datasets that say what they're doing. For instance, a hospital's nowhere near like a biotech company, right? They're two totally different datasets. Our actual platform grabs those datasets, connects it into the core dataset, and links it in real time. We wonder if that's from demand pull forward or destocking, or maybe there's something, you know, structural inside the company that's a little weak. we wonder if that's from demand pull forward or destocking or maybe there's something you know structural inside the company that's a little weak They asked us to help take a look at it with our AI platform. they asked us to help take a look at it with our ai platform Our AI platform ingested thousands of documents, databases, Excel files, and in basically 2 days -3 days, it had found another set of data sources that are industry specific. our ai platform ingested thousands of documents databases excel files and in basically 2 days -3 days it had found another set of data sources that are industry specific This is true, right? this is true right Every time you do a diligence, you're interested in companies in general, but you're also interested in what are the datasets that say what they're doing. every time you do a diligence you're interested in companies in general but you're also interested in what are the datasets that say what they're doing For instance, a hospital's nowhere near like a biotech company, right? for instance a hospital's nowhere near like a biotech company right They're two totally different datasets. they're two totally different datasets Our actual platform grabs those datasets, connects it into the core dataset, and links it in real time. our actual platform grabs those datasets connects it into the core dataset and links it in real time What we're able then to do is to gain much more incremental insight. This case, we found a dataset around the FDA, sort of certification, type one, two, three, that you get when your medical device is granted its ability to sell to consumers. Ultimately, the AI platform went, and it took the SKU file. If you've ever seen a SKU file, they're just complete gibberish. You know, it's 20 lines of A's and B's, and 1s and 2s. You can't really understand it. What we're able then to do is to gain much more incremental insight. what we're able then to do is to gain much more incremental insight This case, we found a dataset around the FDA, sort of certification, type one, two, three, that you get when your medical device is granted its ability to sell to consumers. this case we found a dataset around the fda sort of certification type one two three that you get when your medical device is granted its ability to sell to consumers Ultimately, the AI platform went, and it took the SKU file. ultimately the ai platform went and it took the sku file If you've ever seen a SKU file, they're just complete gibberish. if you've ever seen a sku file they're just complete gibberish You know, it's 20 lines of A's and B's, and 1s and 2s. you know it's 20 lines of a's and b's and 1s and 2s You can't really understand it. you can't really understand it It was able to actually tag that to the description, go back to that dataset, so we're talking multi-hop connections in real time across the datasets, and figure out that what had been going on at the company was that their material was going into more and more what's called a Type 1 certification, which is the least protected by the FDA. You can substitute for that more easily, versus Type 3, where they had traditionally been. Those are things like pacemakers, kind of mission critical. You know, were kind of the core bread and butter. What's really interesting about this is, we actually had consultants working on this with us, 'cause, you know, we use them occasionally for our diligence. They were able to look at the top 10 customers, and when you looked at that revenue, the revenue looked relatively stable. It was able to actually tag that to the description, go back to that dataset, so we're talking multi-hop connections in real time across the datasets, and figure out that what had been going on at the company was that their material was going into more and more what's called a Type 1 certification, which is the least protected by the FDA. it was able to actually tag that to the description go back to that dataset so we're talking multi-hop connections in real time across the datasets and figure out that what had been going on at the company was that their material was going into more and more what's called a type 1 certification which is the least protected by the fda You can substitute for that more easily, versus Type 3, where they had traditionally been. you can substitute for that more easily versus type 3 where they had traditionally been Those are things like pacemakers, kind of mission critical. those are things like pacemakers kind of mission critical You know, were kind of the core bread and butter. you know were kind of the core bread and butter What's really interesting about this is, we actually had consultants working on this with us, 'cause, you know, we use them occasionally for our diligence. what's really interesting about this is we actually had consultants working on this with us 'cause you know we use them occasionally for our diligence They were able to look at the top 10 customers, and when you looked at that revenue, the revenue looked relatively stable. they were able to look at the top 10 customers and when you looked at that revenue the revenue looked relatively stable Our AI platform went and looked at every single customer, every single SKU, every single sale, every single day, and it calculated sort of that the revenue had in fact been declining in the middle, in the long tail of that business. The reason was because that part of the business had weakened its position around those FDA certifications. This kind of insight, it would take months, if not years, in order to get that kind of insight out with the types of datasets we're talking about. We generated that in three days, we iterated on it once or twice with the deal team. It's an incredible competitive advantage. It's a real flywheel. Our AI platform went and looked at every single customer, every single SKU, every single sale, every single day, and it calculated sort of that the revenue had in fact been declining in the middle, in the long tail of that business. our ai platform went and looked at every single customer every single sku every single sale every single day and it calculated sort of that the revenue had in fact been declining in the middle in the long tail of that business The reason was because that part of the business had weakened its position around those FDA certifications. the reason was because that part of the business had weakened its position around those fda certifications This kind of insight, it would take months, if not years, in order to get that kind of insight out with the types of datasets we're talking about. this kind of insight it would take months if not years in order to get that kind of insight out with the types of datasets we're talking about We generated that in three days, we iterated on it once or twice with the deal team. we generated that in three days we iterated on it once or twice with the deal team It's an incredible competitive advantage. it's an incredible competitive advantage It's a real flywheel. it's a real flywheel

Speaker 12: Yeah, I mean, the work that's been going on internally has been pretty amazing, and that's what we've been focusing on right now. I want to actually just broaden the lens a little bit and talk about how we're actually adding value across our portfolio. Lucy, you want to start? Yeah, I mean, the work that's been going on internally has been pretty amazing, and that's what we've been focusing on right now. yeah i mean the work that's been going on internally has been pretty amazing and that's what we've been focusing on right now I want to actually just broaden the lens a little bit and talk about how we're actually adding value across our portfolio. i want to actually just broaden the lens a little bit and talk about how we're actually adding value across our portfolio Lucy, you want to start? lucy you want to start

Speaker 13: Yes, across our portfolio, we drive AI value creation with the same aggressiveness and passion that we do inside. Our deal teams work with our global portfolio solutions teams, and they look at the portfolio companies in three ways: They look at AI risk and exposure. How can AI change this industry or this market in the next 3 years-5 years? The other side of the coin is, what are the AI opportunities? How can AI drive more strategic opportunities for the company? Yes, across our portfolio, we drive AI value creation with the same aggressiveness and passion that we do inside. yes across our portfolio we drive ai value creation with the same aggressiveness and passion that we do inside Our deal teams work with our global portfolio solutions teams, and they look at the portfolio companies in three ways: They look at AI risk and exposure. our deal teams work with our global portfolio solutions teams and they look at the portfolio companies in three ways they look at ai risk and exposure How can AI change this industry or this market in the next 3 years -5 years? how can ai change this industry or this market in the next 3 years -5 years The other side of the coin is, what are the AI opportunities? years the other side of the coin is what are the ai opportunities How can AI drive more strategic opportunities for the company? how can ai drive more strategic opportunities for the company Finally, we look at AI readiness and capabilities. Does the company have the right talent and the right resources to prioritize against the actions that they need to take? Sometimes, by the way, we use AI to help to deliver some of these value creation plans. As an example, one of our AI tools helped to unearth new acquisition targets for our highly acquisitive portfolio companies. At the end of the day, you know, we have these models in place, and then we offer our portfolio companies two channels to accelerate AI value creation. The first channel is our strategic partnerships around technology and AI that we offer our portfolio companies. Finally, we look at AI readiness and capabilities. finally we look at ai readiness and capabilities Does the company have the right talent and the right resources to prioritize against the actions that they need to take? does the company have the right talent and the right resources to prioritize against the actions that they need to take Sometimes, by the way, we use AI to help to deliver some of these value creation plans. sometimes by the way we use ai to help to deliver some of these value creation plans As an example, one of our AI tools helped to unearth new acquisition targets for our highly acquisitive portfolio companies. as an example one of our ai tools helped to unearth new acquisition targets for our highly acquisitive portfolio companies At the end of the day, you know, we have these models in place, and then we offer our portfolio companies two channels to accelerate AI value creation. at the end of the day you know we have these models in place and then we offer our portfolio companies two channels to accelerate ai value creation The first channel is our strategic partnerships around technology and AI that we offer our portfolio companies. the first channel is our strategic partnerships around technology and ai that we offer our portfolio companies We've built this platform over eight years of over 60 enterprise AI-native companies that we have partnerships with for preferred pricing, for access to strategic talent, and we have leaned in early to build deep relationships that allow our portfolio companies to work with these companies with the same Carlyle AUM power and leverage. The second channel that we offer our portfolio companies is access to AI leadership forums. We've built this platform over eight years of over 60 enterprise AI-native companies that we have partnerships with for preferred pricing, for access to strategic talent, and we have leaned in early to build deep relationships that allow our portfolio companies to work with these companies with the same Carlyle AUM power and leverage. we've built this platform over eight years of over 60 enterprise ai-native companies that we have partnerships with for preferred pricing for access to strategic talent and we have leaned in early to build deep relationships that allow our portfolio companies to work with these companies with the same carlyle aum power and leverage The second channel that we offer our portfolio companies is access to AI leadership forums. the second channel that we offer our portfolio companies is access to ai leadership forums We have over 200 technology portfolio leaders across our business, and we offer multiple webinars on different topics. As you know, technology, cybersecurity, AI, these are all interrelated topics. It's important for leaders to learn from each other what's happening, to share best practices. One example that we did last year was we launched AI Innovation Day. We had more than 300 people attend AI Innovation Day, including CEOs from our portfolio companies. We have over 200 technology portfolio leaders across our business, and we offer multiple webinars on different topics. we have over 200 technology portfolio leaders across our business and we offer multiple webinars on different topics As you know, technology, cybersecurity, AI, these are all interrelated topics. as you know technology cybersecurity ai these are all interrelated topics It's important for leaders to learn from each other what's happening, to share best practices. it's important for leaders to learn from each other what's happening to share best practices One example that we did last year was we launched AI Innovation Day. one example that we did last year was we launched ai innovation day We had more than 300 people attend AI Innovation Day, including CEOs from our portfolio companies. we had more than 300 people attend ai innovation day including ceos from our portfolio companies We curated some AI startups, and we got to listen to their stories, how they're approaching disruptive business models, and it gave our portfolio companies ideas about the art of the possible with how this is happening. Across our portfolio, we're seeing AI value creation materialize. We're seeing, for example, profitability gains driven by AI-powered pricing. In one company, we've seen that AI has helped to drive a double-digit EBITDA increase for that company. We curated some AI startups, and we got to listen to their stories, how they're approaching disruptive business models, and it gave our portfolio companies ideas about the art of the possible with how this is happening. we curated some ai startups and we got to listen to their stories how they're approaching disruptive business models and it gave our portfolio companies ideas about the art of the possible with how this is happening Across our portfolio, we're seeing AI value creation materialize. across our portfolio we're seeing ai value creation materialize We're seeing, for example, profitability gains driven by AI-powered pricing. we're seeing for example profitability gains driven by ai-powered pricing In one company, we've seen that AI has helped to drive a double-digit EBITDA increase for that company. in one company we've seen that ai has helped to drive a double-digit ebitda increase for that company We're also seeing productivity gains, that productivity gains are not just manual work hours saved. Productivity gains are translating into higher customer satisfaction, into better products that our companies are delivering, with higher accuracy and better quality. The overall theme that we're seeing is that when a company leans into AI, it unlocks new product ideas, and it releases more competitive energy inside of the market. We're also seeing productivity gains, that productivity gains are not just manual work hours saved. we're also seeing productivity gains that productivity gains are not just manual work hours saved Productivity gains are translating into higher customer satisfaction, into better products that our companies are delivering, with higher accuracy and better quality. productivity gains are translating into higher customer satisfaction into better products that our companies are delivering with higher accuracy and better quality The overall theme that we're seeing is that when a company leans into AI, it unlocks new product ideas, and it releases more competitive energy inside of the market. the overall theme that we're seeing is that when a company leans into ai it unlocks new product ideas and it releases more competitive energy inside of the market I'll say also, what was true is still true today, meaning the way we approached value creation with our portfolio companies is to look at putting the right executive leadership team in place, driving disciplined execution, and making sure our companies have the ability to embrace innovation. Those three things are true, whether it's a digital transformation, a cloud transformation, an AI transformation, that's where we're really focused on driving value in our portfolio companies. I'll say also, what was true is still true today, meaning the way we approached value creation with our portfolio companies is to look at putting the right executive leadership team in place, driving disciplined execution, and making sure our companies have the ability to embrace innovation. i'll say also what was true is still true today meaning the way we approached value creation with our portfolio companies is to look at putting the right executive leadership team in place driving disciplined execution and making sure our companies have the ability to embrace innovation Those three things are true, whether it's a digital transformation, a cloud transformation, an AI transformation, that's where we're really focused on driving value in our portfolio companies. those three things are true whether it's a digital transformation a cloud transformation an ai transformation that's where we're really focused on driving value in our portfolio companies

Speaker 12: Well, clearly, our portfolio companies are using innovation to create value, just to reiterate your point, because I think it's critically important. We take that same lens, but we actually turn it internally, Matt, how are we actually embedding AI within our investment teams to enhance performance and returns? Well, clearly, our portfolio companies are using innovation to create value, just to reiterate your point, because I think it's critically important. well clearly our portfolio companies are using innovation to create value just to reiterate your point because i think it's critically important We take that same lens, but we actually turn it internally, Matt, how are we actually embedding AI within our investment teams to enhance performance and returns? we take that same lens but we actually turn it internally matt how are we actually embedding ai within our investment teams to enhance performance and returns

Speaker 15: You know, I think one of our real advantages, Harvey says this a lot, is that we can make our firm very small in the sense that we can work really closely with each other in a very agile and nimble way. I can't tell you the number of times Harvey or Lindsay connect me with a business leader, and I have a team of specialists I can embed in a business, right, to solve a problem. We actually, inside of AlpInvest, Carlyle AlpInvest, we embedded about four or five of our team. These are AI engineers, LLM engineers, data scientists, that, you know, really the gamut of how you deliver solution. You know, I think one of our real advantages, Harvey says this a lot, is that we can make our firm very small in the sense that we can work really closely with each other in a very agile and nimble way. you know i think one of our real advantages harvey says this a lot is that we can make our firm very small in the sense that we can work really closely with each other in a very agile and nimble way I can't tell you the number of times Harvey or Lindsay connect me with a business leader, and I have a team of specialists I can embed in a business, right, to solve a problem. i can't tell you the number of times harvey or lindsay connect me with a business leader and i have a team of specialists i can embed in a business right to solve a problem We actually, inside of AlpInvest, Carlyle AlpInvest, we embedded about four or five of our team. we actually inside of alpinvest carlyle alpinvest we embedded about four or five of our team These are AI engineers, LLM engineers, data scientists, that, you know, really the gamut of how you deliver solution. these are ai engineers llm engineers data scientists that you know really the gamut of how you deliver solution We co-created, we envisioned a tool that would really unleash something new inside of the business, because it had a massive growing TAM. You heard John share that a little earlier. You know, this is a market that if you could, you know, get a bigger net, you could catch more fish, is the idea, right? You know, as we, as we sort of stepped back, we said, "Okay, we need our people to be able to do more," because a human capital business, it's hard to produce more and more humans of quality every single year. You can, right? Ultimately, that's an apprenticeship model, and this market is scaling really quickly, so we needed to bend our leverage curve, right? We needed to bend the leverage of our people. We co-created, we envisioned a tool that would really unleash something new inside of the business, because it had a massive growing TAM. we co-created we envisioned a tool that would really unleash something new inside of the business because it had a massive growing tam You heard John share that a little earlier. you heard john share that a little earlier You know, this is a market that if you could, you know, get a bigger net, you could catch more fish, is the idea, right? you know this is a market that if you could you know get a bigger net you could catch more fish is the idea right You know, as we, as we sort of stepped back, we said, "Okay, we need our people to be able to do more," because a human capital business, it's hard to produce more and more humans of quality every single year. you know as we as we sort of stepped back we said "okay we need our people to be able to do more," because a human capital business it's hard to produce more and more humans of quality every single year You can, right? you can right Ultimately, that's an apprenticeship model, and this market is scaling really quickly, so we needed to bend our leverage curve, right? ultimately that's an apprenticeship model and this market is scaling really quickly so we needed to bend our leverage curve right We needed to bend the leverage of our people. we needed to bend the leverage of our people What we developed was a platform that could ingest, locate in structured databases, build automatically LBOs for hundreds of companies at a time, roll those up, and put a valuation. What that lets our very talented investors do is not do any of that work. That is very manual. It's usually done in spreadsheets. Instead, what they now do is they spend their time running scenarios, running sensitivities, thinking about Monte Carlos, having discussions with IC that are very robust, 'cause on the fly, they can basically say, "What if this one variable changes?" See the impact to that underlying investment. It's a real capability now that AlpInvest has been leveraging. What we developed was a platform that could ingest, locate in structured databases, build automatically LBOs for hundreds of companies at a time, roll those up, and put a valuation. what we developed was a platform that could ingest locate in structured databases build automatically lbos for hundreds of companies at a time roll those up and put a valuation What that lets our very talented investors do is not do any of that work. what that lets our very talented investors do is not do any of that work That is very manual. that is very manual It's usually done in spreadsheets. it's usually done in spreadsheets Instead, what they now do is they spend their time running scenarios, running sensitivities, thinking about Monte Carlos, having discussions with IC that are very robust, 'cause on the fly, they can basically say, "What if this one variable changes?" See the impact to that underlying investment. instead what they now do is they spend their time running scenarios running sensitivities thinking about monte carlos having discussions with ic that are very robust 'cause on the fly they can basically say "what if this one variable changes?" see the impact to that underlying investment It's a real capability now that AlpInvest has been leveraging. it's a real capability now that alpinvest has been leveraging Through a lot of the operational work they've done, the strategic work they've done, and this platform sort of working hand in hand, again, this idea that we can make ourselves very nimble, you know, that business has doubled its deployments, not just on an overall basis, but, in the secondary space, but actually, per head count. There's a real gain here right now in our ability to evaluate more opportunities. Through a lot of the operational work they've done, the strategic work they've done, and this platform sort of working hand in hand, again, this idea that we can make ourselves very nimble, you know, that business has doubled its deployments, not just on an overall basis, but, in the secondary space, but actually, per head count. through a lot of the operational work they've done the strategic work they've done and this platform sort of working hand in hand again this idea that we can make ourselves very nimble you know that business has doubled its deployments not just on an overall basis but in the secondary space but actually per head count There's a real gain here right now in our ability to evaluate more opportunities. there's a real gain here right now in our ability to evaluate more opportunities

Speaker 12: Great. One last question, and sort of a lightning round, so for both of you, so in 1 minute or less, AI is gonna continue to evolve, and our industry is gonna continue to evolve with it. What do we actually think when it comes to why are we positioned not only to adapt, but to win? Great. great One last question, and sort of a lightning round, so for both of you, so in 1 minute or less, AI is gonna continue to evolve, and our industry is gonna continue to evolve with it. one last question and sort of a lightning round so for both of you so in 1 minute or less ai is gonna continue to evolve and our industry is gonna continue to evolve with it What do we actually think when it comes to why are we positioned not only to adapt, but to win? what do we actually think when it comes to why are we positioned not only to adapt but to win

Speaker 13: I think we're positioned to win because we've combined early conviction with operational excellence. We've been able to scale quickly across the firm, and we've matched that speed, by the way, with strong governance, with cybersecurity, and data privacy and compliance, which are really critical to ensure we can use these solutions with trust and confidence. I think we're positioned to win because we've combined early conviction with operational excellence. i think we're positioned to win because we've combined early conviction with operational excellence We've been able to scale quickly across the firm, and we've matched that speed, by the way, with strong governance, with cybersecurity, and data privacy and compliance, which are really critical to ensure we can use these solutions with trust and confidence. we've been able to scale quickly across the firm and we've matched that speed by the way with strong governance with cybersecurity and data privacy and compliance which are really critical to ensure we can use these solutions with trust and confidence We also have the strategic access to the partners, as we mentioned earlier, that has given us early insights around the AI corner, and because of that, we're more nimble and agile than people who started after us. Finally, I think that's really important, that AI's become a talent magnet for us. We're getting innovative employees wanting to work at Carlyle, coming to Carlyle because they're seeing that they can innovate meaningfully and drive superior customer results. We also have the strategic access to the partners, as we mentioned earlier, that has given us early insights around the AI corner, and because of that, we're more nimble and agile than people who started after us. we also have the strategic access to the partners as we mentioned earlier that has given us early insights around the ai corner and because of that we're more nimble and agile than people who started after us Finally, I think that's really important, that AI's become a talent magnet for us. finally i think that's really important that ai's become a talent magnet for us We're getting innovative employees wanting to work at Carlyle, coming to Carlyle because they're seeing that they can innovate meaningfully and drive superior customer results. we're getting innovative employees wanting to work at carlyle coming to carlyle because they're seeing that they can innovate meaningfully and drive superior customer results

Speaker 15: ... part of the reason that we get a lot of really innovative AI employees is because we've been very well positioned from the very beginning with some of the most important foundational model players. I won't tutor at home, but if you wanna go watch DevDays for some of these people, you'll see some of our work and our name featured in there. That lets us see around the corner, it lets us build a reputation in the market around talent. When you can see around the corner, you can do some really important work. ... part of the reason that we get a lot of really innovative AI employees is because we've been very well positioned from the very beginning with some of the most important foundational model players. part of the reason that we get a lot of really innovative ai employees is because we've been very well positioned from the very beginning with some of the most important foundational model players I won't tutor at home, but if you wanna go watch DevDays for some of these people, you'll see some of our work and our name featured in there. i won't tutor at home but if you wanna go watch devdays for some of these people you'll see some of our work and our name featured in there That lets us see around the corner, it lets us build a reputation in the market around talent. that lets us see around the corner it lets us build a reputation in the market around talent When you can see around the corner, you can do some really important work. when you can see around the corner you can do some really important work What I mean by that is this: in AI, there's a lot of people talking about, "Hey, I use AI to write an IC memo," or, "I use it to drive efficiencies." Our industry definitely needs to adopt more technology to become more efficient, but that isn't core to what we do. What we do fundamentally is we invest, right? We need to use our capabilities in AI to invest better, to pick better investments, to manage those better, and to make our people be able to do more faster, because we have this growing market. What I mean by that is this: in AI, there's a lot of people talking about, "Hey, I use AI to write an IC memo," or, "I use it to drive efficiencies." Our industry definitely needs to adopt more technology to become more efficient, but that isn't core to what we do. what i mean by that is this in ai there's a lot of people talking about "hey i use ai to write an ic memo," or "i use it to drive efficiencies." our industry definitely needs to adopt more technology to become more efficient but that isn't core to what we do What we do fundamentally is we invest, right? what we do fundamentally is we invest right We need to use our capabilities in AI to invest better, to pick better investments, to manage those better, and to make our people be able to do more faster, because we have this growing market. we need to use our capabilities in ai to invest better to pick better investments to manage those better and to make our people be able to do more faster because we have this growing market When you step back and you say, "Well, how are we gonna have enduring advantage?" It's really that we're, number one, we see what's coming, we can focus on the areas that are really gonna matter, and we're right now not just trying to pick out efficiency. We're definitely doing that work, but we're trying to make our investors better by being able to handle these amounts of big data, and not just external data, but we talked about it before, if you wanna win in AI, you have to have a large data set. It's that simple. If you woke up, you know, four years or five years ago when GPT started to come out, and you said, "Oh, wow, we should start capturing our data," that's water under the bridge, you can't go back and get it, right? When you step back and you say, "Well, how are we gonna have enduring advantage?" It's really that we're, number one, we see what's coming, we can focus on the areas that are really gonna matter, and we're right now not just trying to pick out efficiency. when you step back and you say "well how are we gonna have enduring advantage?" it's really that we're number one we see what's coming we can focus on the areas that are really gonna matter and we're right now not just trying to pick out efficiency We're definitely doing that work, but we're trying to make our investors better by being able to handle these amounts of big data, and not just external data, but we talked about it before, if you wanna win in AI, you have to have a large data set. we're definitely doing that work but we're trying to make our investors better by being able to handle these amounts of big data and not just external data but we talked about it before if you wanna win in ai you have to have a large data set It's that simple. it's that simple If you woke up, you know, four years or five years ago when GPT started to come out, and you said, "Oh, wow, we should start capturing our data," that's water under the bridge, you can't go back and get it, right? if you woke up you know four years or five years ago when gpt started to come out and you said "oh wow we should start capturing our data," that's water under the bridge you can't go back and get it right We've been capturing it, structuring it. It's not, like, theoretical, it's in structured environments that we can turn on, basically present to an investor in a matter of days. That kind of capability is the agility. What it means is this, Lindsay: if an investor has more time to look at more deals, it spits off more data. More data gives you a better perspective on the deals, and vice versa. That's a flywheel. It's a real advantage, right? The faster you go, the more and more you start to pull away. We've been capturing it, structuring it. we've been capturing it structuring it It's not, like, theoretical, it's in structured environments that we can turn on, basically present to an investor in a matter of days. it's not like theoretical it's in structured environments that we can turn on basically present to an investor in a matter of days That kind of capability is the agility. that kind of capability is the agility What it means is this, Lindsay: if an investor has more time to look at more deals, it spits off more data. what it means is this lindsay if an investor has more time to look at more deals it spits off more data More data gives you a better perspective on the deals, and vice versa. more data gives you a better perspective on the deals and vice versa That's a flywheel. that's a flywheel It's a real advantage, right? it's a real advantage right The faster you go, the more and more you start to pull away. the faster you go the more and more you start to pull away

Speaker 12: Well, I appreciate everybody's insights here. I know it's a lot of content, I'll leave you with three sort of core messages that we'd love for you to take away with. One is, we moved early and we moved fast, which is rare in this industry, especially when it comes to tech adoption. Two, we're cutting through the hype, and we're focusing on real value for the firm and for our stakeholders. Three, we've unlocked a differentiated data set that gives us a level of precision that is hard to replicate. Data is our scaled advantage. Thank you. Appreciate everybody's time today. Well, I appreciate everybody's insights here. well i appreciate everybody's insights here I know it's a lot of content, I'll leave you with three sort of core messages that we'd love for you to take away with. i know it's a lot of content i'll leave you with three sort of core messages that we'd love for you to take away with One is, we moved early and we moved fast, which is rare in this industry, especially when it comes to tech adoption. one is we moved early and we moved fast which is rare in this industry especially when it comes to tech adoption Two, we're cutting through the hype, and we're focusing on real value for the firm and for our stakeholders. two we're cutting through the hype and we're focusing on real value for the firm and for our stakeholders Three, we've unlocked a differentiated data set that gives us a level of precision that is hard to replicate. three we've unlocked a differentiated data set that gives us a level of precision that is hard to replicate Data is our scaled advantage. data is our scaled advantage Thank you. thank you Appreciate everybody's time today. appreciate everybody's time today

Speaker 20: Please welcome the High-Conviction Opportunities Panel. Please welcome the High-Conviction Opportunities Panel. please welcome the high-conviction opportunities panel

Speaker 16: Nice work. Good morning, everyone. I'm Meg Starr, Chief People Officer at Carlyle. My job is about talent, identifying it, developing it, and putting it behind our highest conviction opportunities. As Harvey said, our strategy is only as good as the teams that are executing it. Today, we're profiling four high-conviction businesses across Carlyle. Nice work. nice work Good morning, everyone. good morning everyone I'm Meg Starr, Chief People Officer at Carlyle. i'm meg starr chief people officer at carlyle My job is about talent, identifying it, developing it, and putting it behind our highest conviction opportunities. my job is about talent identifying it developing it and putting it behind our highest conviction opportunities As Harvey said, our strategy is only as good as the teams that are executing it. as harvey said our strategy is only as good as the teams that are executing it Today, we're profiling four high-conviction businesses across Carlyle. today we're profiling four high-conviction businesses across carlyle This is not the full list, but these are really important examples of where we see structural growth, differentiated access, and a real right to win advantage. Each of these leaders oversees high-performing teams that are operating in markets that we think are compelling today and far into the future. We're gonna explore why these markets matter, how Carlyle is positioned to capitalize on these opportunities, and what makes each of these leaders so confident in the forward trajectory. Let's dive in. This is not the full list, but these are really important examples of where we see structural growth, differentiated access, and a real right to win advantage. this is not the full list but these are really important examples of where we see structural growth differentiated access and a real right to win advantage Each of these leaders oversees high-performing teams that are operating in markets that we think are compelling today and far into the future. each of these leaders oversees high-performing teams that are operating in markets that we think are compelling today and far into the future We're gonna explore why these markets matter, how Carlyle is positioned to capitalize on these opportunities, and what makes each of these leaders so confident in the forward trajectory. we're gonna explore why these markets matter how carlyle is positioned to capitalize on these opportunities and what makes each of these leaders so confident in the forward trajectory Let's dive in. let's dive in We're gonna start with asset-backed finance, go to liquidity solutions, aerospace and defense, and the belle of the ball, global wealth, to close us out. First, Akhil Bansal, Head of Asset-Backed Finance for Carlyle. Akhil, asset-backed finance is one of the most attractive areas in private markets right now. What do you think the structural reasons are for that growth, and what makes us well-positioned in that market? We're gonna start with asset-backed finance, go to liquidity solutions, aerospace and defense, and the belle of the ball, global wealth, to close us out. we're gonna start with asset-backed finance go to liquidity solutions aerospace and defense and the belle of the ball global wealth to close us out First, Akhil Bansal, Head of Asset-Backed Finance for Carlyle. first akhil bansal head of asset-backed finance for carlyle Akhil, asset-backed finance is one of the most attractive areas in private markets right now. akhil asset-backed finance is one of the most attractive areas in private markets right now What do you think the structural reasons are for that growth, and what makes us well-positioned in that market? what do you think the structural reasons are for that growth and what makes us well-positioned in that market

Speaker 1: Yeah, absolutely. When many people talk about the structural growth in asset-backed finance, they tend to focus on the accounting, regulatory, capital frameworks that are driving a lot of this real economy lending into the private markets, that's certainly important, but we think there's actually a more fundamental driver, frankly, all of you in the room are driving it, which is your love for capital-light, recurring revenue businesses. When you look into the public markets when you see what businesses get the highest multiples, it's those capital-light, recurring revenue businesses. What we see is banks, finance companies, corporates, they're looking to reduce their capital intensity, they're looking to bring up their return on equity. Yeah, absolutely. yeah absolutely When many people talk about the structural growth in asset-backed finance, they tend to focus on the accounting, regulatory, capital frameworks that are driving a lot of this real economy lending into the private markets, that's certainly important, but we think there's actually a more fundamental driver, frankly, all of you in the room are driving it, which is your love for capital-light, recurring revenue businesses. when many people talk about the structural growth in asset-backed finance they tend to focus on the accounting regulatory capital frameworks that are driving a lot of this real economy lending into the private markets that's certainly important but we think there's actually a more fundamental driver frankly all of you in the room are driving it which is your love for capital-light recurring revenue businesses When you look into the public markets when you see what businesses get the highest multiples, it's those capital-light, recurring revenue businesses. when you look into the public markets when you see what businesses get the highest multiples it's those capital-light recurring revenue businesses What we see is banks, finance companies, corporates, they're looking to reduce their capital intensity, they're looking to bring up their return on equity. what we see is banks finance companies corporates they're looking to reduce their capital intensity they're looking to bring up their return on equity They're doing that by partnering with players like Carlyle to buy their loans, to buy their assets, but where they can still constrain control of their business, retain control of their customers, and still drive growth. We think that dynamic is structural. It is beyond regulatory or accounting, and as long as the public markets continue valuing and rewarding businesses that are capital light and that have the recurring revenue, this phenomenon will continue. They're doing that by partnering with players like Carlyle to buy their loans, to buy their assets, but where they can still constrain control of their business, retain control of their customers, and still drive growth. they're doing that by partnering with players like carlyle to buy their loans to buy their assets but where they can still constrain control of their business retain control of their customers and still drive growth We think that dynamic is structural. we think that dynamic is structural It is beyond regulatory or accounting, and as long as the public markets continue valuing and rewarding businesses that are capital light and that have the recurring revenue, this phenomenon will continue. it is beyond regulatory or accounting and as long as the public markets continue valuing and rewarding businesses that are capital light and that have the recurring revenue this phenomenon will continue The second element of it is what's happening on the capital side. We are increasingly seeing investors wanting to diversify away from their leverage lending exposures and complement those exposures with real economy exposures. When you look at what we're doing in asset-backed finance, we're financing the consumption of goods and services, that's an exposure many investors are underweight in. The second element of it is what's happening on the capital side. the second element of it is what's happening on the capital side We are increasingly seeing investors wanting to diversify away from their leverage lending exposures and complement those exposures with real economy exposures. we are increasingly seeing investors wanting to diversify away from their leverage lending exposures and complement those exposures with real economy exposures When you look at what we're doing in asset-backed finance, we're financing the consumption of goods and services, that's an exposure many investors are underweight in. when you look at what we're doing in asset-backed finance we're financing the consumption of goods and services that's an exposure many investors are underweight in We're seeing that be the other durable driver in the growth of private Asset-Backed Finance. We're seeing that be the other durable driver in the growth of private Asset-Backed Finance. we're seeing that be the other durable driver in the growth of private asset-backed finance

Speaker 16: I can feel the high conviction, Akhil. You've built a really interesting platform. What about the platform is differentiated? How does that set up your right to win? I can feel the high conviction, Akhil. i can feel the high conviction akhil You've built a really interesting platform. you've built a really interesting platform What about the platform is differentiated? what about the platform is differentiated How does that set up your right to win? how does that set up your right to win

Speaker 1: Yeah, I really think that comes across, you know, four dimensions. First is that we have an agile, nimble, flexible investment strategy. We invest up and down the capital structure, we invest across asset classes, we invest across duration spectrums. The idea is that by having such a flexible investment strategy, we can find the areas with the best risk-adjusted returns, but importantly, we can find the areas where Carlyle has a competitive advantage because of its multi-asset platform and its global reach, and those are the areas where we have a right to win. Second is our balanced origination model. I think you've seen some market participants who have decided to focus solely on owning origination platforms. You've seen others who have gone and said, "I really wanna just be partners." We think the right answer for Carlyle is a balanced model. Yeah, I really think that comes across, you know, four dimensions. yeah i really think that comes across you know four dimensions First is that we have an agile, nimble, flexible investment strategy. first is that we have an agile nimble flexible investment strategy We invest up and down the capital structure, we invest across asset classes, we invest across duration spectrums. we invest up and down the capital structure we invest across asset classes we invest across duration spectrums The idea is that by having such a flexible investment strategy, we can find the areas with the best risk-adjusted returns, but importantly, we can find the areas where Carlyle has a competitive advantage because of its multi-asset platform and its global reach, and those are the areas where we have a right to win. the idea is that by having such a flexible investment strategy we can find the areas with the best risk-adjusted returns but importantly we can find the areas where carlyle has a competitive advantage because of its multi-asset platform and its global reach and those are the areas where we have a right to win Second is our balanced origination model. second is our balanced origination model I think you've seen some market participants who have decided to focus solely on owning origination platforms. i think you've seen some market participants who have decided to focus solely on owning origination platforms You've seen others who have gone and said, "I really wanna just be partners." We think the right answer for Carlyle is a balanced model. you've seen others who have gone and said "i really wanna just be partners." we think the right answer for carlyle is a balanced model Take stakes in origination platforms where there's a moat around them, there's a scalable, durable, competitive advantage, where others can't come in. In other areas, partner with folks, where Carlyle's platform can add value, where we can bring value beyond capital, which brings me to my third point, which is bringing that value beyond capital. Take stakes in origination platforms where there's a moat around them, there's a scalable, durable, competitive advantage, where others can't come in. take stakes in origination platforms where there's a moat around them there's a scalable durable competitive advantage where others can't come in In other areas, partner with folks, where Carlyle's platform can add value, where we can bring value beyond capital, which brings me to my third point, which is bringing that value beyond capital. in other areas partner with folks where carlyle's platform can add value where we can bring value beyond capital which brings me to my third point which is bringing that value beyond capital You know, money is a commodity, and as ABF gets more competitive, what we look to bring to our companies is not only being a capital provider, but being a strategic partner, by helping them with their growth initiatives, their capital structures, capital markets expertise. By bringing a value proposition beyond capital, we believe we're bringing a more durable relationship, a stickier relationship, while not necessarily having to own the platform, and we think that balanced approach allows us to best attack the market. You know, money is a commodity, and as ABF gets more competitive, what we look to bring to our companies is not only being a capital provider, but being a strategic partner, by helping them with their growth initiatives, their capital structures, capital markets expertise. you know money is a commodity and as abf gets more competitive what we look to bring to our companies is not only being a capital provider but being a strategic partner by helping them with their growth initiatives their capital structures capital markets expertise By bringing a value proposition beyond capital, we believe we're bringing a more durable relationship, a stickier relationship, while not necessarily having to own the platform, and we think that balanced approach allows us to best attack the market. by bringing a value proposition beyond capital we believe we're bringing a more durable relationship a stickier relationship while not necessarily having to own the platform and we think that balanced approach allows us to best attack the market The final thing that I talk about is our diversifying our capital base. You know, insurance has certainly been an important part of our asset-backed finance platform, and will continue to be. Increasingly, what we're doing and investing in is diversifying into other non-insurance institutional investors. Very sticky capital still, trying to attack other areas where we think a more diversified share capital base allows our strategy, once and our platform to have more durability, by not being relying on one customer segment, but by having a diverse client base. The final thing that I talk about is our diversifying our capital base. the final thing that i talk about is our diversifying our capital base You know, insurance has certainly been an important part of our asset-backed finance platform, and will continue to be. you know insurance has certainly been an important part of our asset-backed finance platform and will continue to be Increasingly, what we're doing and investing in is diversifying into other non-insurance institutional investors. increasingly what we're doing and investing in is diversifying into other non-insurance institutional investors Very sticky capital still, trying to attack other areas where we think a more diversified share capital base allows our strategy, once and our platform to have more durability, by not being relying on one customer segment, but by having a diverse client base. very sticky capital still trying to attack other areas where we think a more diversified share capital base allows our strategy once and our platform to have more durability by not being relying on one customer segment but by having a diverse client base

Speaker 16: We're in a room of public market investors and analysts, so let's talk about what's most relevant. How do you see ABF contributing to Carlyle's long-term earnings growth? We're in a room of public market investors and analysts, so let's talk about what's most relevant. we're in a room of public market investors and analysts so let's talk about what's most relevant How do you see ABF contributing to Carlyle's long-term earnings growth? how do you see abf contributing to carlyle's long-term earnings growth

Speaker 1: I think there's a couple of elements to that. I think it first starts with a multidimensional revenue model. You know, as we scale our insurance mandates, our SMAs, and funds, we are definitely gonna be generating recurring management fee revenue streams. In addition to that, when we're doing ABF deals, we're bringing our capital markets capabilities. Many of those deals require financing, and we're arranging that financing ourselves and partnering with Jeff Nedelman's team and the distribution network he's created. We are now distributing those financings directly to investors, which has a flywheel effect. They get co-invest, they get access directly from Carlyle, which helps feed back into the driving of insurance as mandates and SMA and fund capital. I think the second big driver is that ABF investing is not transactional, it's programmatic. I think there's a couple of elements to that. i think there's a couple of elements to that I think it first starts with a multidimensional revenue model. i think it first starts with a multidimensional revenue model You know, as we scale our insurance mandates, our SMAs, and funds, we are definitely gonna be generating recurring management fee revenue streams. you know as we scale our insurance mandates our smas and funds we are definitely gonna be generating recurring management fee revenue streams In addition to that, when we're doing ABF deals, we're bringing our capital markets capabilities. in addition to that when we're doing abf deals we're bringing our capital markets capabilities Many of those deals require financing, and we're arranging that financing ourselves and partnering with Jeff Nedelman's team and the distribution network he's created. many of those deals require financing and we're arranging that financing ourselves and partnering with jeff nedelman's team and the distribution network he's created We are now distributing those financings directly to investors, which has a flywheel effect. we are now distributing those financings directly to investors which has a flywheel effect They get co-invest, they get access directly from Carlyle, which helps feed back into the driving of insurance as mandates and SMA and fund capital. they get co-invest they get access directly from carlyle which helps feed back into the driving of insurance as mandates and sma and fund capital I think the second big driver is that ABF investing is not transactional, it's programmatic. i think the second big driver is that abf investing is not transactional it's programmatic When we do a transaction with a finance company or bank, that can lead to multiple repeat transactions that stack upon one another. We are not chasing one-off transactions, so what that means from a resourcing perspective is that we think this business has the potential to generate really attractive margins, because that origination, once again, is not one-off transactions, it's repeatable, programmatic deal flow. That's why we're excited that with that scale that we have, with the multidimensional revenue model, the stack origination, we can build a very accretive business for Carlyle. When we do a transaction with a finance company or bank, that can lead to multiple repeat transactions that stack upon one another. when we do a transaction with a finance company or bank that can lead to multiple repeat transactions that stack upon one another We are not chasing one-off transactions, so what that means from a resourcing perspective is that we think this business has the potential to generate really attractive margins, because that origination, once again, is not one-off transactions, it's repeatable, programmatic deal flow. we are not chasing one-off transactions so what that means from a resourcing perspective is that we think this business has the potential to generate really attractive margins because that origination once again is not one-off transactions it's repeatable programmatic deal flow That's why we're excited that with that scale that we have, with the multidimensional revenue model, the stack origination, we can build a very accretive business for Carlyle. that's why we're excited that with that scale that we have with the multidimensional revenue model the stack origination we can build a very accretive business for carlyle

Speaker 16: Amazing. Thank you, Akhil. All right, Mike Hacker, over to you, Global Head of Portfolio Finance for Carlyle AlpInvest. As John mentioned, AlpInvest has an incredible secondaries business. We're known for it, but we also have a much more diversified business. You look after a segment called portfolio finance. Amazing. amazing Thank you, Akhil. thank you akhil All right, Mike Hacker, over to you, Global Head of Portfolio Finance for Carlyle AlpInvest. all right mike hacker over to you global head of portfolio finance for carlyle alpinvest As John mentioned, AlpInvest has an incredible secondaries business. as john mentioned alpinvest has an incredible secondaries business We're known for it, but we also have a much more diversified business. we're known for it but we also have a much more diversified business You look after a segment called portfolio finance. you look after a segment called portfolio finance

Speaker 18: Yep. Yep. yep

Speaker 16: Can we start with the basics? Like, what is portfolio finance? What does that market look like? Why are we excited about it? Can we start with the basics? can we start with the basics Like, what is portfolio finance? like what is portfolio finance What does that market look like? what does that market look like Why are we excited about it? why are we excited about it

Speaker 18: Everyone doesn't know that already? Portfolio finance, I think the easiest way to think about it's really the credit side of our secondaries business. You can think of that in two different parts. One is thinking about that as lending to the private equity market. Everything we're doing in secondaries, where we're buying assets from LPs and from GPs, well, think about that on the credit side. We're lending to LPs, we're lending to GPs, we're lending to funds, so things like NAV lending to funds, that's a big part of that. Actually, the part that I think is really sort of unknown is really lending to LPs. This is a part of the market that we've really been pioneering in the last few years. There's huge amounts of growth. Everyone doesn't know that already? everyone doesn't know that already Portfolio finance, I think the easiest way to think about it's really the credit side of our secondaries business. portfolio finance i think the easiest way to think about it's really the credit side of our secondaries business You can think of that in two different parts. you can think of that in two different parts One is thinking about that as lending to the private equity market. one is thinking about that as lending to the private equity market Everything we're doing in secondaries, where we're buying assets from LPs and from GPs, well, think about that on the credit side. everything we're doing in secondaries where we're buying assets from lps and from gps well think about that on the credit side We're lending to LPs, we're lending to GPs, we're lending to funds, so things like NAV lending to funds, that's a big part of that. we're lending to lps we're lending to gps we're lending to funds so things like nav lending to funds that's a big part of that Actually, the part that I think is really sort of unknown is really lending to LPs. actually the part that i think is really sort of unknown is really lending to lps This is a part of the market that we've really been pioneering in the last few years. this is a part of the market that we've really been pioneering in the last few years There's huge amounts of growth. there's huge amounts of growth We'll talk about that in just a minute. You know, if you think about the other side of portfolio finance or credit secondaries, in some ways, that's kind of buried in the name. That market has really achieved scale. I think it's gotten a lot of attention, especially with the continuous talk about what's going on in private credit more generally. We hope that credit secondaries will be part of the solution there. We've had a lot of activity in the last few years. That market's really achieved scale, think about $20 billion of activity in 2025. We'll talk about that in just a minute. we'll talk about that in just a minute You know, if you think about the other side of portfolio finance or credit secondaries, in some ways, that's kind of buried in the name. you know if you think about the other side of portfolio finance or credit secondaries in some ways that's kind of buried in the name That market has really achieved scale. that market has really achieved scale I think it's gotten a lot of attention, especially with the continuous talk about what's going on in private credit more generally. i think it's gotten a lot of attention especially with the continuous talk about what's going on in private credit more generally We hope that credit secondaries will be part of the solution there. we hope that credit secondaries will be part of the solution there We've had a lot of activity in the last few years. we've had a lot of activity in the last few years That market's really achieved scale, think about $20 billion of activity in 2025. that market's really achieved scale think about $20 billion of activity in 2025 That's up from less than $10 billion two years ago, so that market's sort of doubling every year, and we think there's sort of one way for that market to reach something like $80 billion by the end of the decade. You know, 4x opportunity for growth there. You know, if you think about, you know, what that is, you know, it's really building out a business that, in some ways, we think we can scale to be as large as where the secondaries business is today. If you think about it, there's a whole opportunity to continue to grow that business in real scale, and really complement what we're doing on the traditional equity side. That's up from less than $10 billion two years ago, so that market's sort of doubling every year, and we think there's sort of one way for that market to reach something like $80 billion by the end of the decade. that's up from less than $10 billion two years ago so that market's sort of doubling every year and we think there's sort of one way for that market to reach something like $80 billion by the end of the decade You know, 4x opportunity for growth there. you know 4x opportunity for growth there You know, if you think about, you know, what that is, you know, it's really building out a business that, in some ways, we think we can scale to be as large as where the secondaries business is today. you know if you think about you know what that is you know it's really building out a business that in some ways we think we can scale to be as large as where the secondaries business is today If you think about it, there's a whole opportunity to continue to grow that business in real scale, and really complement what we're doing on the traditional equity side. if you think about it there's a whole opportunity to continue to grow that business in real scale and really complement what we're doing on the traditional equity side

Speaker 16: Amazing. pretty tremendous upside to the current opportunity? Amazing. pretty tremendous upside to the current opportunity? amazing pretty tremendous upside to the current opportunity

Speaker 18: Yeah. Yeah. yeah

Speaker 16: Liquidity has been a big focus in private markets recently, particularly noise around exits, which Carlyle has been a notable outlier to. Liquidity has been a big focus in private markets recently, particularly noise around exits, which Carlyle has been a notable outlier to. liquidity has been a big focus in private markets recently particularly noise around exits which carlyle has been a notable outlier to

Speaker 18: Yeah. Yeah. yeah

Speaker 16: Growth in AlpInvest secondaries and portfolio businesses really has predated that. Growth in AlpInvest secondaries and portfolio businesses really has predated that. growth in alpinvest secondaries and portfolio businesses really has predated that

Speaker 18: Yeah. Yeah. yeah

Speaker 16: Do you see this as more of a cyclical moment? Do you see this as more of a cyclical moment? do you see this as more of a cyclical moment

Speaker 18: Yeah. Yeah. yeah

Speaker 16: is this more of a secular shift in terms of what types of solutions- is this more of a secular shift in terms of what types of solutions- is this more of a secular shift in terms of what types of solutions-

Speaker 18: Yeah Yeah yeah

Speaker 16: ... private markets need? ... private markets need? private markets need

Speaker 18: Look, we've been through, and I've been doing secondaries for over 20 years now, and we've been through multiple cycles. What I think is interesting is that, you know, and there certainly is an element of cyclicality to what's going on today. What's very interesting when you look at the secondaries market, each time there's been a cycle, when that cycle turns and recedes, the market stays larger than it was before the cycle. What you're finding is that a couple things are happening. Each time there's a cycle, we in the secondaries and portfolio finance world, we're innovating. What we're trying to do is find interesting transactions that solve the problems of our counterparties, be they LPs or GPs. Look, we've been through, and I've been doing secondaries for over 20 years now, and we've been through multiple cycles. look we've been through and i've been doing secondaries for over 20 years now and we've been through multiple cycles What I think is interesting is that, you know, and there certainly is an element of cyclicality to what's going on today. what i think is interesting is that you know and there certainly is an element of cyclicality to what's going on today What's very interesting when you look at the secondaries market, each time there's been a cycle, when that cycle turns and recedes, the market stays larger than it was before the cycle. what's very interesting when you look at the secondaries market each time there's been a cycle when that cycle turns and recedes the market stays larger than it was before the cycle What you're finding is that a couple things are happening. what you're finding is that a couple things are happening Each time there's a cycle, we in the secondaries and portfolio finance world, we're innovating. each time there's a cycle we in the secondaries and portfolio finance world we're innovating What we're trying to do is find interesting transactions that solve the problems of our counterparties, be they LPs or GPs. what we're trying to do is find interesting transactions that solve the problems of our counterparties be they lps or gps If you go back to how we defined secondaries when I first started in the business, it was a very niche sort of liquidity for LPs, buying LP interests. It was really a small market, and not used broadly. I think as you sort of saw the GFC and Brexit and COVID, and obviously, whatever you know, the cycle that we've been in the last few years, you know, each time you've gone through one of those cycles, you know, we've innovated, and that's, you know, first thinking about the continuation fund market, which is now really, you know, representing 10%-15% of exits in private equity- If you go back to how we defined secondaries when I first started in the business, it was a very niche sort of liquidity for LPs, buying LP interests. if you go back to how we defined secondaries when i first started in the business it was a very niche sort of liquidity for lps buying lp interests It was really a small market, and not used broadly. it was really a small market and not used broadly I think as you sort of saw the GFC and Brexit and COVID, and obviously, whatever you know, the cycle that we've been in the last few years, you know, each time you've gone through one of those cycles, you know, we've innovated, and that's, you know, first thinking about the continuation fund market, which is now really, you know, representing 10%-15% of exits in private equity- i think as you sort of saw the gfc and brexit and covid and obviously whatever you know the cycle that we've been in the last few years you know each time you've gone through one of those cycles you know we've innovated and that's you know first thinking about the continuation fund market which is now really you know representing 10%-15% of exits in private equity-

Speaker 16: Wow Wow wow

Speaker 18: ... as an asset class, right? That's a massive, you know, part of what's going on in the private equity ecosystem. That's not cyclical, that's structural. What we're really doing, and John touched on it in his talk, you know, we're hitting the private equity firm and the private equity fund at every point along its life cycle. What we've really been thinking about is, think about the traditional private equity fund structure, in some ways, very inefficient for what private equity is today. What we've been doing, whether it's lending to funds, buying assets, buying LP interests, what we're trying to do is create liquidity in a market that fundamentally wasn't. I think the answer is, it's structural. ... as an asset class, right? as an asset class right That's a massive, you know, part of what's going on in the private equity ecosystem. that's a massive you know part of what's going on in the private equity ecosystem That's not cyclical, that's structural. that's not cyclical that's structural What we're really doing, and John touched on it in his talk, you know, we're hitting the private equity firm and the private equity fund at every point along its life cycle. what we're really doing and john touched on it in his talk you know we're hitting the private equity firm and the private equity fund at every point along its life cycle What we've really been thinking about is, think about the traditional private equity fund structure, in some ways, very inefficient for what private equity is today. what we've really been thinking about is think about the traditional private equity fund structure in some ways very inefficient for what private equity is today What we've been doing, whether it's lending to funds, buying assets, buying LP interests, what we're trying to do is create liquidity in a market that fundamentally wasn't. what we've been doing whether it's lending to funds buying assets buying lp interests what we're trying to do is create liquidity in a market that fundamentally wasn't I think the answer is, it's structural. i think the answer is it's structural You know, I think what's also though interesting is, you know, we talked about credit for just a minute. You know, if you think about one of the reasons why we're building portfolio finance and credit secondaries, is we want the business to be more diversified. We right now are clicking on every cylinder. LP market's very active, the GP market's very active. You know, I think what's also though interesting is, you know, we talked about credit for just a minute. you know i think what's also though interesting is you know we talked about credit for just a minute You know, if you think about one of the reasons why we're building portfolio finance and credit secondaries, is we want the business to be more diversified. you know if you think about one of the reasons why we're building portfolio finance and credit secondaries is we want the business to be more diversified We right now are clicking on every cylinder. we right now are clicking on every cylinder LP market's very active, the GP market's very active. lp market's very active the gp market's very active

Speaker 16: Mm-hmm. Mm-hmm. mm-hmm

Speaker 18: You know, we wanna have, you know, we wanna have more diverse sort of parts of the market so that, you know, we're not under any illusion that all things will always be operating at full speed. For our business, you know, we think that, you know, we're very well-positioned. You know, the AlpInvest's platform and, and how the different parts of the business together, huge competitive moats. We talked about that earlier today. What we're really trying to do is make sure that we're a leader in each one of the segments. You know, we wanna have, you know, we wanna have more diverse sort of parts of the market so that, you know, we're not under any illusion that all things will always be operating at full speed. you know we wanna have you know we wanna have more diverse sort of parts of the market so that you know we're not under any illusion that all things will always be operating at full speed For our business, you know, we think that, you know, we're very well-positioned. for our business you know we think that you know we're very well-positioned You know, the AlpInvest's platform and, and how the different parts of the business together, huge competitive moats. you know the alpinvest's platform and and how the different parts of the business together huge competitive moats We talked about that earlier today. we talked about that earlier today What we're really trying to do is make sure that we're a leader in each one of the segments. what we're really trying to do is make sure that we're a leader in each one of the segments

Speaker 16: Yeah Yeah yeah

Speaker 18: ... you know, we'll be ready for whatever cycles we do face. ... you know, we'll be ready for whatever cycles we do face. you know we'll be ready for whatever cycles we do face

Speaker 16: It gets back to those points of durable and diversified and providing solutions across there. It gets back to those points of durable and diversified and providing solutions across there. it gets back to those points of durable and diversified and providing solutions across there

Speaker 18: Yeah. Yeah. yeah

Speaker 16: Amazing, Mike. Brian Bernasek, Co-Head of Americas Corporate Private Equity, 25-year Carlyle veteran, and Head of our Washington, D.C. office. Brian, I wanna talk about aerospace and defense. One of the core power alleys for Carlyle has been since the very beginning. Can you talk to us, how does that sector fit into our corporate private equity business? Given the massive amount of geopolitical turbulence in the world, how do you see the go-forward market opportunity? Amazing, Mike. amazing mike Brian Bernasek, Co-Head of Americas Corporate Private Equity, 25-year Carlyle veteran, and Head of our Washington, D.C. office. brian bernasek co-head of americas corporate private equity 25-year carlyle veteran and head of our washington d.c office Brian, I wanna talk about aerospace and defense. brian i wanna talk about aerospace and defense One of the core power alleys for Carlyle has been since the very beginning. one of the core power alleys for carlyle has been since the very beginning Can you talk to us, how does that sector fit into our corporate private equity business? can you talk to us how does that sector fit into our corporate private equity business Given the massive amount of geopolitical turbulence in the world, how do you see the go-forward market opportunity? given the massive amount of geopolitical turbulence in the world how do you see the go-forward market opportunity

Speaker 4: Sure. No, happy to do that, and very grateful to be here with everyone. You know, this is our aerospace defense practice is core to our overall practice, our private equity practice. It fits firmly into the power alley theme that's been mentioned a couple of times in the presentation today. We have other key power alleys as well. All of them share a few characteristics. Sure. sure No, happy to do that, and very grateful to be here with everyone. no happy to do that and very grateful to be here with everyone You know, this is our aerospace defense practice is core to our overall practice, our private equity practice. you know this is our aerospace defense practice is core to our overall practice our private equity practice It fits firmly into the power alley theme that's been mentioned a couple of times in the presentation today. it fits firmly into the power alley theme that's been mentioned a couple of times in the presentation today We have other key power alleys as well. we have other key power alleys as well All of them share a few characteristics. all of them share a few characteristics Key among them is that we're gonna have a unique edge and angle in how we approach a segment and an opportunity, and we certainly have that in aerospace and defense. We take that edge, that angle, and we're assessing every opportunity to say, "Hey, is this a business that's unique, that's special, that we know it's special because of our edge? Is there something that we can do to drive value in this company that's unique and special? Key among them is that we're gonna have a unique edge and angle in how we approach a segment and an opportunity, and we certainly have that in aerospace and defense. key among them is that we're gonna have a unique edge and angle in how we approach a segment and an opportunity and we certainly have that in aerospace and defense We take that edge, that angle, and we're assessing every opportunity to say, "Hey, is this a business that's unique, that's special, that we know it's special because of our edge? we take that edge that angle and we're assessing every opportunity to say "hey is this a business that's unique that's special that we know it's special because of our edge Is there something that we can do to drive value in this company that's unique and special? is there something that we can do to drive value in this company that's unique and special Are we able to attract world-class management teams because of those capabilities?" As I said, we have it in spades in aerospace and defense. It's been articulated very well early in the conversation, and I think very well publicized, you know, massive spending trends heading towards the defense industry. Around $1 trillion in the U.S. on the spend, on the budget, expectations that it could go to $1.5 trillion. Even $1 trillion is an awful lot of money to spend. You see it in the in Europe, where 3.5% GDP targets on spend, and as Harvey mentioned earlier, there isn't a country in the world that's not thinking about national security. Really massive trends. Are we able to attract world-class management teams because of those capabilities?" As I said, we have it in spades in aerospace and defense. are we able to attract world-class management teams because of those capabilities?" as i said we have it in spades in aerospace and defense It's been articulated very well early in the conversation, and I think very well publicized, you know, massive spending trends heading towards the defense industry. it's been articulated very well early in the conversation and i think very well publicized you know massive spending trends heading towards the defense industry Around $1 trillion in the U.S. on the spend, on the budget, expectations that it could go to $1.5 trillion. around $1 trillion in the u.s on the spend on the budget expectations that it could go to $1.5 trillion Even $1 trillion is an awful lot of money to spend. even $1 trillion is an awful lot of money to spend You see it in the in Europe, where 3.5% GDP targets on spend, and as Harvey mentioned earlier, there isn't a country in the world that's not thinking about national security. you see it in the in europe where 3.5% gdp targets on spend and as harvey mentioned earlier there isn't a country in the world that's not thinking about national security Really massive trends. really massive trends Underneath that, importantly, there's a real push towards innovation and modernization within this spend, where if you're well-positioned, you can really benefit from that as well. Look, we shouldn't lose sight of aerospace. It's a very interesting area for our team. Very strong team focus in that area as well. Passenger miles, as you all know well, continue to increase year-over-year. Big aftermarket opportunity, big OE opportunity, big supply opportunity. Lots to do in this sector. When I look at the team that we have and our position that we have, I mean, I'm just thrilled with what we've got. We have a fantastic unit that's been doing this for a long time. As has been mentioned earlier, 40 years of investing in the sector. Underneath that, importantly, there's a real push towards innovation and modernization within this spend, where if you're well-positioned, you can really benefit from that as well. underneath that importantly there's a real push towards innovation and modernization within this spend where if you're well-positioned you can really benefit from that as well Look, we shouldn't lose sight of aerospace. look we shouldn't lose sight of aerospace It's a very interesting area for our team. it's a very interesting area for our team Very strong team focus in that area as well. very strong team focus in that area as well Passenger miles, as you all know well, continue to increase year-over-year. passenger miles as you all know well continue to increase year-over-year Big aftermarket opportunity, big OE opportunity, big supply opportunity. big aftermarket opportunity big oe opportunity big supply opportunity Lots to do in this sector. lots to do in this sector When I look at the team that we have and our position that we have, I mean, I'm just thrilled with what we've got. when i look at the team that we have and our position that we have i mean i'm just thrilled with what we've got We have a fantastic unit that's been doing this for a long time. we have a fantastic unit that's been doing this for a long time As has been mentioned earlier, 40 years of investing in the sector. as has been mentioned earlier 40 years of investing in the sector It was the beginnings of the firm in many ways, in Washington. That team that we have leading that group today has over 125 years of collective service and focus on the A&D effort. They've invested in 40 different companies and over 100 different deals and platforms. Deals beget deals, opportunities beget opportunities. You know, we have great relationships with CEOs, with advisors, with folks in town, that you make it unique for us. I can't tell you how many government services and defense businesses are located between our offices on 10th and Pennsylvania in Washington and Dulles Airport. There are a lot. It was the beginnings of the firm in many ways, in Washington. it was the beginnings of the firm in many ways in washington That team that we have leading that group today has over 125 years of collective service and focus on the A&D effort. that team that we have leading that group today has over 125 years of collective service and focus on the a&d effort They've invested in 40 different companies and over 100 different deals and platforms. they've invested in 40 different companies and over 100 different deals and platforms Deals beget deals, opportunities beget opportunities. deals beget deals opportunities beget opportunities You know, we have great relationships with CEOs, with advisors, with folks in town, that you make it unique for us. you know we have great relationships with ceos with advisors with folks in town that you make it unique for us I can't tell you how many government services and defense businesses are located between our offices on 10th and Pennsylvania in Washington and Dulles Airport. i can't tell you how many government services and defense businesses are located between our offices on 10th and pennsylvania in washington and dulles airport There are a lot. there are a lot

Speaker 16: Mm-hmm. Mm-hmm. mm-hmm

Speaker 4: It's a really good target-rich opportunity for the team. They do a great job in finding those opportunities, no question. They're also able to leverage, you know, huge firm resources, right? We have David Rubenstein, who I would argue is the most well-connected person in the world. I'd love to see somebody more connected than David. It's a really good target-rich opportunity for the team. it's a really good target-rich opportunity for the team They do a great job in finding those opportunities, no question. they do a great job in finding those opportunities no question They're also able to leverage, you know, huge firm resources, right? they're also able to leverage you know huge firm resources right We have David Rubenstein, who I would argue is the most well-connected person in the world. we have david rubenstein who i would argue is the most well-connected person in the world I'd love to see somebody more connected than David. i'd love to see somebody more connected than david You have the Admiral Stavridis, who was the Supreme Allied Commander in NATO. You know, a really powerful man, and in many ways, very well-networked, helps us tremendously. Great government affairs team. I mentioned those board members, those CEOs, that connectivity in town, it is differentiating in our practice. We seek that in every business that we have, every power alley that we have. This one, you know, we're really bullish on going forward. You have the Admiral Stavridis, who was the Supreme Allied Commander in NATO. you have the admiral stavridis who was the supreme allied commander in nato You know, a really powerful man, and in many ways, very well-networked, helps us tremendously. you know a really powerful man and in many ways very well-networked helps us tremendously Great government affairs team. great government affairs team I mentioned those board members, those CEOs, that connectivity in town, it is differentiating in our practice. i mentioned those board members those ceos that connectivity in town it is differentiating in our practice We seek that in every business that we have, every power alley that we have. we seek that in every business that we have every power alley that we have This one, you know, we're really bullish on going forward. this one you know we're really bullish on going forward

Speaker 16: ... team also has some wild security clearances, too. ... team also has some wild security clearances, too. team also has some wild security clearances too

Speaker 4: Yes, yes. Yes, yes. yes yes

Speaker 16: Our business is really well-positioned for the current moment and clearly far into the future. Can you just give us a couple of examples of what are the types of investments that we're really interested in at this moment in time? Our business is really well-positioned for the current moment and clearly far into the future. our business is really well-positioned for the current moment and clearly far into the future Can you just give us a couple of examples of what are the types of investments that we're really interested in at this moment in time? can you just give us a couple of examples of what are the types of investments that we're really interested in at this moment in time

Speaker 4: Sure, sure. you know, the nice thing about our practice is we're able to punch in the middle market, we're able to punch in large scale, we can punch in defense, we can punch in aerospace. It's a broad swath of opportunities. I'll mention a couple of deals that we've done that might give you a sense of the kind of opportunities that we've seen and what we expect to see going forward. Two Six Technologies is a good example. This is a cyber tools business that plays right in the center of national security. We bought that in 2020, had about $10 million of EBITDA after seven acquisitions, really good organic growth. We're pushing 80+, so we can play that middle market and grow, buy, and build. Sure, sure. you know, the nice thing about our practice is we're able to punch in the middle market, we're able to punch in large scale, we can punch in defense, we can punch in aerospace. sure sure you know the nice thing about our practice is we're able to punch in the middle market we're able to punch in large scale we can punch in defense we can punch in aerospace It's a broad swath of opportunities. it's a broad swath of opportunities I'll mention a couple of deals that we've done that might give you a sense of the kind of opportunities that we've seen and what we expect to see going forward. i'll mention a couple of deals that we've done that might give you a sense of the kind of opportunities that we've seen and what we expect to see going forward Two Six Technologies is a good example. two six technologies is a good example This is a cyber tools business that plays right in the center of national security. this is a cyber tools business that plays right in the center of national security We bought that in 2020, had about $10 million of EBITDA after seven acquisitions, really good organic growth. we bought that in 2020 had about $10 million of ebitda after seven acquisitions really good organic growth We're pushing 80+, so we can play that middle market and grow, buy, and build. we're pushing 80+ so we can play that middle market and grow buy and build That will be a very interesting asset for strategics or for a public offering at some point. StandardAero has been mentioned previously, very well-known business for sure. This is an aerospace company that's in the MRO side of the equation, so they're repairing aircraft engines. We bought this in 2019. Interestingly, I think this highlights as much as anything... Well, the sector is one we really like, but we're going to load up and really help businesses to grow, regardless of what's happening on the outside. You can imagine, we bought in 2019, they or they repair aircraft engines. COVID comes through, not a lot of folks are flying. We were managing that business in a tough environment. That will be a very interesting asset for strategics or for a public offering at some point. that will be a very interesting asset for strategics or for a public offering at some point StandardAero has been mentioned previously, very well-known business for sure. standardaero has been mentioned previously very well-known business for sure This is an aerospace company that's in the MRO side of the equation, so they're repairing aircraft engines. this is an aerospace company that's in the mro side of the equation so they're repairing aircraft engines We bought this in 2019. we bought this in 2019 Interestingly, I think this highlights as much as anything... interestingly i think this highlights as much as anything Well, the sector is one we really like, but we're going to load up and really help businesses to grow, regardless of what's happening on the outside. well the sector is one we really like but we're going to load up and really help businesses to grow regardless of what's happening on the outside You can imagine, we bought in 2019, they or they repair aircraft engines. you can imagine we bought in 2019 they or they repair aircraft engines COVID comes through, not a lot of folks are flying. covid comes through not a lot of folks are flying We were managing that business in a tough environment. we were managing that business in a tough environment The team did a great job on managing efficiencies, got a bunch of new contracts that had long lead times, did a bunch of acquisitions as well, seven acquisitions in this business as well. It was $350 million of EBITDA in the depths of COVID, and it's well over $800 million today. As you all know, it's a public company, trading very well. It's a very nice win for both our, both of Fund VII investors there. The team did a great job on managing efficiencies, got a bunch of new contracts that had long lead times, did a bunch of acquisitions as well, seven acquisitions in this business as well. the team did a great job on managing efficiencies got a bunch of new contracts that had long lead times did a bunch of acquisitions as well seven acquisitions in this business as well It was $350 million of EBITDA in the depths of COVID, and it's well over $800 million today. it was $350 million of ebitda in the depths of covid and it's well over $800 million today As you all know, it's a public company, trading very well. as you all know it's a public company trading very well It's a very nice win for both our, both of Fund VII investors there. it's a very nice win for both our both of fund vii investors there

Speaker 16: Very successful IPO. Congrats, Brian, and the team. Very successful IPO. very successful ipo Congrats, Brian, and the team. congrats brian and the team

Speaker 4: Thanks, Meg. Thanks, Meg. thanks meg

Speaker 16: Shane Clifford, to close it out. Shane, Head of Global Wealth for Carlyle, you have the privilege of looking after a business that actually enables access to all of these high conviction areas to our wealth clients. You know, there's been a lot of emphasis today on global wealth being a major driver of growth going forward for Carlyle. It's a competitive landscape, what is the Carlyle advantage, and how does that translate to where you see our right to win in the wealth space? Shane Clifford, to close it out. shane clifford to close it out Shane, Head of Global Wealth for Carlyle, you have the privilege of looking after a business that actually enables access to all of these high conviction areas to our wealth clients. shane head of global wealth for carlyle you have the privilege of looking after a business that actually enables access to all of these high conviction areas to our wealth clients You know, there's been a lot of emphasis today on global wealth being a major driver of growth going forward for Carlyle. you know there's been a lot of emphasis today on global wealth being a major driver of growth going forward for carlyle It's a competitive landscape, what is the Carlyle advantage, and how does that translate to where you see our right to win in the wealth space? it's a competitive landscape what is the carlyle advantage and how does that translate to where you see our right to win in the wealth space

Speaker 22: Yeah. I think broadly, first of all, hopefully, you got a sense here from the excitement of this panel, and really for the folks on the webcast and here in the room, you know, from the analysts on up to the C-suite, there's a lot of excitement and energy right now at Carlyle. When I think about why that is the case, it really is because of the expansion and growth journey that we're on right now. It's really a fun place. I don't know that that always comes across when you're up on a stage, but it's an incredibly fun place to work right now. It's hard yards at times, but ton of excitement, ton of fun because we're growing, and there's a lot of great talent that wants to come work with us. Yeah. yeah I think broadly, first of all, hopefully, you got a sense here from the excitement of this panel, and really for the folks on the webcast and here in the room, you know, from the analysts on up to the C-suite, there's a lot of excitement and energy right now at Carlyle. i think broadly first of all hopefully you got a sense here from the excitement of this panel and really for the folks on the webcast and here in the room you know from the analysts on up to the c-suite there's a lot of excitement and energy right now at carlyle When I think about why that is the case, it really is because of the expansion and growth journey that we're on right now. when i think about why that is the case it really is because of the expansion and growth journey that we're on right now It's really a fun place. it's really a fun place I don't know that that always comes across when you're up on a stage, but it's an incredibly fun place to work right now. i don't know that that always comes across when you're up on a stage but it's an incredibly fun place to work right now It's hard yards at times, but ton of excitement, ton of fun because we're growing, and there's a lot of great talent that wants to come work with us. it's hard yards at times but ton of excitement ton of fun because we're growing and there's a lot of great talent that wants to come work with us From my seat, I was thinking a little about what Harvey and Jeff had said about where the puck is going. I think from my seat today, the puck is wealth. And what I mean by that is really, you know, the opportunity for us just grows exponentially year-over-year. Why do people want to come work with Carlyle in the wealth space? I think it's straightforward. I think at the moment, particularly, it's the institutional rigor of Carlyle. It's around things like our risk management, our liquidity management. It's what we do there in a very durable manner, that institutional LPs have had access to for many, many years. Finally, we're offering that to our wealth clients and their advisors here at the firm. From my seat, I was thinking a little about what Harvey and Jeff had said about where the puck is going. from my seat i was thinking a little about what harvey and jeff had said about where the puck is going I think from my seat today, the puck is wealth. i think from my seat today the puck is wealth And what I mean by that is really, you know, the opportunity for us just grows exponentially year-over-year. and what i mean by that is really you know the opportunity for us just grows exponentially year-over-year Why do people want to come work with Carlyle in the wealth space? why do people want to come work with carlyle in the wealth space I think it's straightforward. i think it's straightforward I think at the moment, particularly, it's the institutional rigor of Carlyle. i think at the moment particularly it's the institutional rigor of carlyle It's around things like our risk management, our liquidity management. it's around things like our risk management our liquidity management It's what we do there in a very durable manner, that institutional LPs have had access to for many, many years. it's what we do there in a very durable manner that institutional lps have had access to for many many years Finally, we're offering that to our wealth clients and their advisors here at the firm. finally we're offering that to our wealth clients and their advisors here at the firm That DNA is something that globally our distribution partners want from us these days. Secondly, it was a comment that Harvey made earlier in his presentation around that concept of global and local. I will tell you that wealth is a relationship business. No doubt about it. It is hand-to-hand combat, and it is all about the day-to-day wholesaling of the business and telling people the story of Carlyle. That is a local effort. I would say from my seat right now, it's having the local trust with the global platform is something that's very unique to Carlyle, and I think sets us apart from many of our peers. Then thirdly, when I look at it from my seat, we've got to be vehicle agnostic and really focused on solutions, right? That DNA is something that globally our distribution partners want from us these days. that dna is something that globally our distribution partners want from us these days Secondly, it was a comment that Harvey made earlier in his presentation around that concept of global and local. secondly it was a comment that harvey made earlier in his presentation around that concept of global and local I will tell you that wealth is a relationship business. i will tell you that wealth is a relationship business No doubt about it. no doubt about it It is hand-to-hand combat, and it is all about the day-to-day wholesaling of the business and telling people the story of Carlyle. it is hand-to-hand combat and it is all about the day-to-day wholesaling of the business and telling people the story of carlyle That is a local effort. that is a local effort I would say from my seat right now, it's having the local trust with the global platform is something that's very unique to Carlyle, and I think sets us apart from many of our peers. i would say from my seat right now it's having the local trust with the global platform is something that's very unique to carlyle and i think sets us apart from many of our peers Then thirdly, when I look at it from my seat, we've got to be vehicle agnostic and really focused on solutions, right? then thirdly when i look at it from my seat we've got to be vehicle agnostic and really focused on solutions right The first question that always comes up when we're thinking about a new idea is, what does that solve for in the client's portfolio? Is that something that they actually need? That solutions-based thought process is where we start every conversation. When I think about what we've got up on this panel today, these are all great investment solutions, but are they appropriate in the wealth channel, and do they solve for something for our end clients, right? The first question that always comes up when we're thinking about a new idea is, what does that solve for in the client's portfolio? the first question that always comes up when we're thinking about a new idea is what does that solve for in the client's portfolio Is that something that they actually need? is that something that they actually need That solutions-based thought process is where we start every conversation. that solutions-based thought process is where we start every conversation When I think about what we've got up on this panel today, these are all great investment solutions, but are they appropriate in the wealth channel, and do they solve for something for our end clients, right? when i think about what we've got up on this panel today these are all great investment solutions but are they appropriate in the wealth channel and do they solve for something for our end clients right Those are all the component parts broadly that kind of get us to the outcome that we need. I would say we're going to be disciplined, we're going to scale in a very durable manner and ultimately do this over multiple investment cycles. This is a multi-year trending cycle that we're on, and we're quite excited about it. Those are all the component parts broadly that kind of get us to the outcome that we need. those are all the component parts broadly that kind of get us to the outcome that we need I would say we're going to be disciplined, we're going to scale in a very durable manner and ultimately do this over multiple investment cycles. i would say we're going to be disciplined we're going to scale in a very durable manner and ultimately do this over multiple investment cycles This is a multi-year trending cycle that we're on, and we're quite excited about it. this is a multi-year trending cycle that we're on and we're quite excited about it

Speaker 16: I think that brand point is an important one. We talk a lot about the Carlyle brand and why is it so important. I think the wealth market is the key example. Our brand is one of the most widely recognized in private markets, and when people know our brand, they associate it with a trusted partner, a safe pair of hands, well-connected performance. That's a huge advantage when we think about going in the door and talking about our wealth products. I think that brand point is an important one. i think that brand point is an important one We talk a lot about the Carlyle brand and why is it so important. we talk a lot about the carlyle brand and why is it so important I think the wealth market is the key example. i think the wealth market is the key example Our brand is one of the most widely recognized in private markets, and when people know our brand, they associate it with a trusted partner, a safe pair of hands, well-connected performance. our brand is one of the most widely recognized in private markets and when people know our brand they associate it with a trusted partner a safe pair of hands well-connected performance That's a huge advantage when we think about going in the door and talking about our wealth products. that's a huge advantage when we think about going in the door and talking about our wealth products I think that's the kind of full circle of why that brand matters so much. I want to go back to Jeff Nedelman when he was talking about our distribution business, our client business, he had that great slide of all the Carlyle strategies that are in the market in the next three years. We obviously have a very broad platform. How do you decide which strategies are appropriate to bring into the wealth market, and how do you think about adding new strategies and doing it in a responsible, scaled way? I think that's the kind of full circle of why that brand matters so much. i think that's the kind of full circle of why that brand matters so much I want to go back to Jeff Nedelman when he was talking about our distribution business, our client business, he had that great slide of all the Carlyle strategies that are in the market in the next three years. i want to go back to jeff nedelman when he was talking about our distribution business our client business he had that great slide of all the carlyle strategies that are in the market in the next three years We obviously have a very broad platform. we obviously have a very broad platform How do you decide which strategies are appropriate to bring into the wealth market, and how do you think about adding new strategies and doing it in a responsible, scaled way? how do you decide which strategies are appropriate to bring into the wealth market and how do you think about adding new strategies and doing it in a responsible scaled way

Speaker 22: Yeah, I think Jeff brought up a great point, when he said, you know, we're not looking to push a product. That's not the business we're in. The great news for us today is we really have a deep breadth of investment capabilities that really allow us to talk about portfolio construction when we're with our wealth partners. What does that mean for me in my seat? That means that I have the opportunity to get out in front of folks and discuss that investment solution, and then come back inside and see what capabilities do we have in-house that can match that. For example, on this panel, here are three great examples, whether it be ABF, portfolio finance, defense, and aerospace, and in the industrials. Really, when I said earlier that I'm vehicle-agnostic, what do I mean by that? Yeah, I think Jeff brought up a great point, when he said, you know, we're not looking to push a product. yeah i think jeff brought up a great point when he said you know we're not looking to push a product That's not the business we're in. that's not the business we're in The great news for us today is we really have a deep breadth of investment capabilities that really allow us to talk about portfolio construction when we're with our wealth partners. the great news for us today is we really have a deep breadth of investment capabilities that really allow us to talk about portfolio construction when we're with our wealth partners What does that mean for me in my seat? what does that mean for me in my seat That means that I have the opportunity to get out in front of folks and discuss that investment solution, and then come back inside and see what capabilities do we have in-house that can match that. that means that i have the opportunity to get out in front of folks and discuss that investment solution and then come back inside and see what capabilities do we have in-house that can match that For example, on this panel, here are three great examples, whether it be ABF, portfolio finance, defense, and aerospace, and in the industrials. for example on this panel here are three great examples whether it be abf portfolio finance defense and aerospace and in the industrials Really, when I said earlier that I'm vehicle-agnostic, what do I mean by that? really when i said earlier that i'm vehicle-agnostic what do i mean by that Well, maybe we do an interval fund with Akil. Maybe we're doing an LTIF structure in a ICAV vehicle for what we do at Michael Hacker on the portfolio finance side. By the way, perhaps it's a drawdown vehicle for our defense fund, potentially, right? These are all things that you're kind of thinking about in real time, because at the end of the day, we've got to be very thoughtful and careful. We're sometimes, I think, a fast follower in this space, and I'm okay with that, because ultimately, we're going to play the long game, and we're going to be very thoughtful, and we're going to sequence out how we do these things. Well, maybe we do an interval fund with Akil. well maybe we do an interval fund with akil Maybe we're doing an LTIF structure in a ICAV vehicle for what we do at Michael Hacker on the portfolio finance side. maybe we're doing an ltif structure in a icav vehicle for what we do at michael hacker on the portfolio finance side By the way, perhaps it's a drawdown vehicle for our defense fund, potentially, right? by the way perhaps it's a drawdown vehicle for our defense fund potentially right These are all things that you're kind of thinking about in real time, because at the end of the day, we've got to be very thoughtful and careful. these are all things that you're kind of thinking about in real time because at the end of the day we've got to be very thoughtful and careful We're sometimes, I think, a fast follower in this space, and I'm okay with that, because ultimately, we're going to play the long game, and we're going to be very thoughtful, and we're going to sequence out how we do these things. we're sometimes i think a fast follower in this space and i'm okay with that because ultimately we're going to play the long game and we're going to be very thoughtful and we're going to sequence out how we do these things I do think today, as a firm, we've done a great job of putting our flagship funds in place, and now I think it's about what do we add along what is additive to our wealth clients in addition to those capabilities? I think CAPS was a great example in 2025 of that. I do think today, as a firm, we've done a great job of putting our flagship funds in place, and now I think it's about what do we add along what is additive to our wealth clients in addition to those capabilities? i do think today as a firm we've done a great job of putting our flagship funds in place and now i think it's about what do we add along what is additive to our wealth clients in addition to those capabilities I think CAPS was a great example in 2025 of that. i think caps was a great example in 2025 of that

Speaker 16: Great. The money question, Shane. Great. great The money question, Shane. the money question shane

Speaker 22: Yeah. Yeah. yeah

Speaker 16: As Carlyle continues to build a scaled, high-conviction investment platform, how does the expansion of global wealth contribute to that growth? Just how significant do you think it can be over time? As Carlyle continues to build a scaled, high-conviction investment platform, how does the expansion of global wealth contribute to that growth? as carlyle continues to build a scaled high-conviction investment platform how does the expansion of global wealth contribute to that growth Just how significant do you think it can be over time? just how significant do you think it can be over time

Speaker 22: Yeah. You know, at times, I looked at the numbers earlier, and they actually excite me because I think they're quite achievable for us as a firm. One, because one data is the banking platform, and let me just use that in a very generic way for you, right? That is globally working with a wirehouse IBD or RIA in the U.S., or it's working with a global bank across Europe, the Middle East and Asia, or perhaps it's a regional or country-specific banking platform. We're in that business today, and we're damn good at that business. Quite frankly, we're still only in the second or third inning of that. From my seat, we still have significant scaling there to do. Now, we've got retirement coming here. Yeah. yeah You know, at times, I looked at the numbers earlier, and they actually excite me because I think they're quite achievable for us as a firm. you know at times i looked at the numbers earlier and they actually excite me because i think they're quite achievable for us as a firm One, because one data is the banking platform, and let me just use that in a very generic way for you, right? one because one data is the banking platform and let me just use that in a very generic way for you right That is globally working with a wirehouse IBD or RIA in the U.S., or it's working with a global bank across Europe, the Middle East and Asia, or perhaps it's a regional or country-specific banking platform. that is globally working with a wirehouse ibd or ria in the u.s or it's working with a global bank across europe the middle east and asia or perhaps it's a regional or country-specific banking platform We're in that business today, and we're damn good at that business. we're in that business today and we're damn good at that business Quite frankly, we're still only in the second or third inning of that. quite frankly we're still only in the second or third inning of that From my seat, we still have significant scaling there to do. from my seat we still have significant scaling there to do Now, we've got retirement coming here. now we've got retirement coming here We'll see how it plays out, and it's going to be very interesting to see kind of how it evolves over the next two, three years, but that's going to be a new lane for us as well. I actually think the opportunity only grows from here. What we define as wealth today, that umbrella has kind of the banking channel in it right now. Retirement's going to show up, and we'll see what happens with insurance ultimately as well, question mark. I suspect first or second inning here, tremendous growth for us going forward. I just think we need to be thoughtful about how we do it and not get ahead of ourselves, and really make sure that we keep the client at the center of everything we're doing. We'll see how it plays out, and it's going to be very interesting to see kind of how it evolves over the next two, three years, but that's going to be a new lane for us as well. we'll see how it plays out and it's going to be very interesting to see kind of how it evolves over the next two three years but that's going to be a new lane for us as well I actually think the opportunity only grows from here. i actually think the opportunity only grows from here What we define as wealth today, that umbrella has kind of the banking channel in it right now. what we define as wealth today that umbrella has kind of the banking channel in it right now Retirement's going to show up, and we'll see what happens with insurance ultimately as well, question mark. retirement's going to show up and we'll see what happens with insurance ultimately as well question mark I suspect first or second inning here, tremendous growth for us going forward. i suspect first or second inning here tremendous growth for us going forward I just think we need to be thoughtful about how we do it and not get ahead of ourselves, and really make sure that we keep the client at the center of everything we're doing. i just think we need to be thoughtful about how we do it and not get ahead of ourselves and really make sure that we keep the client at the center of everything we're doing As long as we do that, as a firm, we're always going to be okay, coupled with the great investment performance that I know these guys are going to deliver. As long as we do that, as a firm, we're always going to be okay, coupled with the great investment performance that I know these guys are going to deliver. as long as we do that as a firm we're always going to be okay coupled with the great investment performance that i know these guys are going to deliver

Speaker 16: Perfect. Thank you, Shane. Thank you to our panelists, and with that, we will turn it over to our CFO, Justin Plouffe. Perfect. perfect Thank you, Shane. thank you shane Thank you to our panelists, and with that, we will turn it over to our CFO, Justin Plouffe. thank you to our panelists and with that we will turn it over to our cfo justin plouffe

Speaker 20: Please welcome Justin Plouffe. Please welcome Justin Plouffe. please welcome justin plouffe

Speaker 11: Morning, everyone. I'm Justin Plouffe, I'm the CFO. What I want to do is take everything you've heard today and tie it together into a comprehensive vision of our financial goals for the next three years. I want to do that first by talking about the tremendous momentum that we have as a firm coming out of 2025. I want to talk about how we position the firm today and how that's going to lead to growth in the future, and then exactly how we're going to unlock shareholder value over the next three years. We'll start with the momentum. We've got fantastic top-line momentum. We grew our fee revenues by 10% last year, and we grew them really with every part of the fee revenue mix. Morning, everyone. morning everyone I'm Justin Plouffe, I'm the CFO. i'm justin plouffe i'm the cfo What I want to do is take everything you've heard today and tie it together into a comprehensive vision of our financial goals for the next three years. what i want to do is take everything you've heard today and tie it together into a comprehensive vision of our financial goals for the next three years I want to do that first by talking about the tremendous momentum that we have as a firm coming out of 2025. i want to do that first by talking about the tremendous momentum that we have as a firm coming out of 2025 I want to talk about how we position the firm today and how that's going to lead to growth in the future, and then exactly how we're going to unlock shareholder value over the next three years. i want to talk about how we position the firm today and how that's going to lead to growth in the future and then exactly how we're going to unlock shareholder value over the next three years We'll start with the momentum. we'll start with the momentum We've got fantastic top-line momentum. we've got fantastic top-line momentum We grew our fee revenues by 10% last year, and we grew them really with every part of the fee revenue mix. we grew our fee revenues by 10% last year and we grew them really with every part of the fee revenue mix Our management fees grew, especially in global credit, they grew 9%, in AlpInvest, they grew 37%. Our transaction fees grew. A lot of that is coming out of global private equity. All of that great transaction volume John spoke about, when we buy a company, when we refinance a company, when we IPO a company, those are all opportunities for us to generate transaction fees. Those have nearly tripled over the last couple of years. Our fee-related performance revenue, our incentive fees, those are growing. That's largely due to our increased presence in the wealth space. Tremendous momentum here on the top line, and that's driving our FRE growth. As Harvey hit right up front, we've grown FRE at a 20% CAGR over the last three years. Our management fees grew, especially in global credit, they grew 9%, in AlpInvest, they grew 37%. our management fees grew especially in global credit they grew 9% in alpinvest they grew 37% Our transaction fees grew. our transaction fees grew A lot of that is coming out of global private equity. a lot of that is coming out of global private equity All of that great transaction volume John spoke about, when we buy a company, when we refinance a company, when we IPO a company, those are all opportunities for us to generate transaction fees. all of that great transaction volume john spoke about when we buy a company when we refinance a company when we ipo a company those are all opportunities for us to generate transaction fees Those have nearly tripled over the last couple of years. those have nearly tripled over the last couple of years Our fee-related performance revenue, our incentive fees, those are growing. our fee-related performance revenue our incentive fees those are growing That's largely due to our increased presence in the wealth space. that's largely due to our increased presence in the wealth space Tremendous momentum here on the top line, and that's driving our FRE growth. tremendous momentum here on the top line and that's driving our fre growth As Harvey hit right up front, we've grown FRE at a 20% CAGR over the last three years. as harvey hit right up front we've grown fre at a 20% cagr over the last three years While we've grown our CAGR, we've also been able to grow the margin. We've gone up 1,000 basis points in margin. This is from operating discipline, but it's also because we have scalable strategies where we can take in capital without adding significantly more costs. It's also due to the fact that we realigned our compensation system a couple of years ago, which has had tremendous benefits. Our FRE is also becoming more diversified. Three years ago, only 34% of our FRE came from global credit and AlpInvest, and today it's 55%. This top-line growth down to FRE is what's driving our DE growth. We've gone up 24% since 2023. We're now over $4 a share in DE. While we've grown our CAGR, we've also been able to grow the margin. while we've grown our cagr we've also been able to grow the margin We've gone up 1,000 basis points in margin. we've gone up 1,000 basis points in margin This is from operating discipline, but it's also because we have scalable strategies where we can take in capital without adding significantly more costs. this is from operating discipline but it's also because we have scalable strategies where we can take in capital without adding significantly more costs It's also due to the fact that we realigned our compensation system a couple of years ago, which has had tremendous benefits. it's also due to the fact that we realigned our compensation system a couple of years ago which has had tremendous benefits Our FRE is also becoming more diversified. our fre is also becoming more diversified Three years ago, only 34% of our FRE came from global credit and AlpInvest, and today it's 55%. three years ago only 34% of our fre came from global credit and alpinvest and today it's 55% This top-line growth down to FRE is what's driving our DE growth. this top-line growth down to fre is what's driving our de growth We've gone up 24% since 2023. we've gone up 24% since 2023 We're now over $4 a share in DE. we're now over $4 a share in de Three years ago, about 50% of that DE came from top line, came down through FRE. Now it's 70%. Our DE is even more repeatable. Finally, I think something that's a little bit overlooked about how we've done over the past few years is that our balance sheet has now become a real source of strength. We've got a fantastic amount of liquidity and flexibility in our balance sheet. $2 billion of cash versus just $2.6 billion of debt. We've got over $3 billion of investments, and mostly what those investments are things that are helping to fuel the growth of our business. For example, our private equity wealth product, CPEP, we warehouse investments for that, so that as we raise capital, can immediately be deployed. Three years ago, about 50% of that DE came from top line, came down through FRE. three years ago about 50% of that de came from top line came down through fre Now it's 70%. now it's 70% Our DE is even more repeatable. our de is even more repeatable Finally, I think something that's a little bit overlooked about how we've done over the past few years is that our balance sheet has now become a real source of strength. finally i think something that's a little bit overlooked about how we've done over the past few years is that our balance sheet has now become a real source of strength We've got a fantastic amount of liquidity and flexibility in our balance sheet. $2 billion of cash versus just $2.6 billion of debt. we've got a fantastic amount of liquidity and flexibility in our balance sheet $2 billion of cash versus just $2.6 billion of debt We've got over $3 billion of investments, and mostly what those investments are things that are helping to fuel the growth of our business. we've got over $3 billion of investments and mostly what those investments are things that are helping to fuel the growth of our business For example, our private equity wealth product, CPEP, we warehouse investments for that, so that as we raise capital, can immediately be deployed. for example our private equity wealth product cpep we warehouse investments for that so that as we raise capital can immediately be deployed We've got $2.9 billion of net accrued performance revenues, excuse me, that will flow through the balance sheet over the next three years-four years. That's tremendous amount of value that will eventually come through DE for shareholders. If you add all of that up, just the balance sheet is worth $15 per share of value to our investors. We've got $2.9 billion of net accrued performance revenues, excuse me, that will flow through the balance sheet over the next three years -four years. we've got $2.9 billion of net accrued performance revenues excuse me that will flow through the balance sheet over the next three years -four years That's tremendous amount of value that will eventually come through DE for shareholders. years that's tremendous amount of value that will eventually come through de for shareholders If you add all of that up, just the balance sheet is worth $15 per share of value to our investors. if you add all of that up just the balance sheet is worth $15 per share of value to our investors We're in an incredibly strong position. Harvey showed this slide before, but I'll show it again because it's so important. Record FRE, record FRE margin, record AUM, Global Wealth, Carlyle, AlpInvest, and Credit. We had our third best year in inflows last year, leading realization activity. It's not on the slide, we actually had our best ever year of deployment last year, with over $54 billion across the firm. We're in an incredibly strong position. we're in an incredibly strong position Harvey showed this slide before, but I'll show it again because it's so important. harvey showed this slide before but i'll show it again because it's so important Record FRE, record FRE margin, record AUM, Global Wealth, Carlyle, AlpInvest, and Credit. record fre record fre margin record aum global wealth carlyle alpinvest and credit We had our third best year in inflows last year, leading realization activity. we had our third best year in inflows last year leading realization activity It's not on the slide, we actually had our best ever year of deployment last year, with over $54 billion across the firm. it's not on the slide we actually had our best ever year of deployment last year with over $54 billion across the firm Really, every part of our business is working incredibly well as we head into this three-year period. All right, why do we believe that we're positioned for growth? We've built an incredibly diversified and durable business. If you look at all those strategies at the top, we are diversified by geography, by asset class, and by channel that we're raising money in. We have many paths to success. We're not tied to just one fund or one channel, right? We have many different ways that we can raise capital and deploy capital across the firm. I'm really excited that Global Wealth now actually has a product in every segment that's open. I had the good fortune to be part of the team that built our CTAC product, and when we did that was the only product we had for private wealth. Really, every part of our business is working incredibly well as we head into this three-year period. really every part of our business is working incredibly well as we head into this three-year period All right, why do we believe that we're positioned for growth? all right why do we believe that we're positioned for growth We've built an incredibly diversified and durable business. we've built an incredibly diversified and durable business If you look at all those strategies at the top, we are diversified by geography, by asset class, and by channel that we're raising money in. if you look at all those strategies at the top we are diversified by geography by asset class and by channel that we're raising money in We have many paths to success. we have many paths to success We're not tied to just one fund or one channel, right? we're not tied to just one fund or one channel right We have many different ways that we can raise capital and deploy capital across the firm. we have many different ways that we can raise capital and deploy capital across the firm I'm really excited that Global Wealth now actually has a product in every segment that's open. i'm really excited that global wealth now actually has a product in every segment that's open I had the good fortune to be part of the team that built our CTAC product, and when we did that was the only product we had for private wealth. i had the good fortune to be part of the team that built our ctac product and when we did that was the only product we had for private wealth It was a credit product, and it was in that channel. Now, we have CPEP and private equity. We have multiple products in credit and multiple products in AlpInvest. As we grow our presence, many ways to take in capital from that channel. As Jeff mentioned, we're entering a super cycle for some of our largest vintage funds. In the next 18 months, buyout from U.S., secondaries, opportunistic credit, all will be in the market raising capital. If you think about the fact that we had our third best inflow year ever last year without really any of those large vintage funds in the market, I think that's really impressive, and it gives us a lot of confidence in our ability to continue to build on that momentum going forward. It was a credit product, and it was in that channel. it was a credit product and it was in that channel Now, we have CPEP and private equity. now we have cpep and private equity We have multiple products in credit and multiple products in AlpInvest. we have multiple products in credit and multiple products in alpinvest As we grow our presence, many ways to take in capital from that channel. as we grow our presence many ways to take in capital from that channel As Jeff mentioned, we're entering a super cycle for some of our largest vintage funds. as jeff mentioned we're entering a super cycle for some of our largest vintage funds In the next 18 months, buyout from U.S., secondaries, opportunistic credit, all will be in the market raising capital. in the next 18 months buyout from u.s secondaries opportunistic credit all will be in the market raising capital If you think about the fact that we had our third best inflow year ever last year without really any of those large vintage funds in the market, I think that's really impressive, and it gives us a lot of confidence in our ability to continue to build on that momentum going forward. if you think about the fact that we had our third best inflow year ever last year without really any of those large vintage funds in the market i think that's really impressive and it gives us a lot of confidence in our ability to continue to build on that momentum going forward I think you've heard from every presenter today how important performance is for our business. If you look at the funds that we will be marketing over the next three years that are going to drive our growth, the performance is outstanding. Private equity, as John mentioned, that's a 35-year track record. By the way, those real estate returns are outstanding compared to what the market has been like for real estate the last few years. I think you've heard from every presenter today how important performance is for our business. i think you've heard from every presenter today how important performance is for our business If you look at the funds that we will be marketing over the next three years that are going to drive our growth, the performance is outstanding. if you look at the funds that we will be marketing over the next three years that are going to drive our growth the performance is outstanding Private equity, as John mentioned, that's a 35-year track record. private equity as john mentioned that's a 35-year track record By the way, those real estate returns are outstanding compared to what the market has been like for real estate the last few years. by the way those real estate returns are outstanding compared to what the market has been like for real estate the last few years Global Credit, Mark started the opportunistic business back in 2018. It's provided great returns. Then those returns for CTAC and direct lending, those are the consistent yielding returns that people want in the private wealth space. This is exactly what they're looking for, that consistent yield with very low risk. Those are very attractive returns. Global Credit, Mark started the opportunistic business back in 2018. global credit mark started the opportunistic business back in 2018 It's provided great returns. it's provided great returns Then those returns for CTAC and direct lending, those are the consistent yielding returns that people want in the private wealth space. then those returns for ctac and direct lending those are the consistent yielding returns that people want in the private wealth space This is exactly what they're looking for, that consistent yield with very low risk. this is exactly what they're looking for that consistent yield with very low risk Those are very attractive returns. those are very attractive returns In AlpInvest, fantastic total returns, maybe even more important than that's a 25-year track record. For all the people that are now seeing secondaries and now trying to get into that space, that's not something that they can replicate. We will be marketing on the back of really strong track records for all the funds that we're going to need to raise capital for to meet our goals. We've had tremendous momentum over the last three years, and we've improved our margins materially, but it has not come at the expense of investing back into the business, and that's a really important thing to understand. We've moved our margins up, but we're also hiring people. That's not the only way that we do. We also invest in technology, data science. In AlpInvest, fantastic total returns, maybe even more important than that's a 25-year track record. in alpinvest fantastic total returns maybe even more important than that's a 25-year track record For all the people that are now seeing secondaries and now trying to get into that space, that's not something that they can replicate. for all the people that are now seeing secondaries and now trying to get into that space that's not something that they can replicate We will be marketing on the back of really strong track records for all the funds that we're going to need to raise capital for to meet our goals. we will be marketing on the back of really strong track records for all the funds that we're going to need to raise capital for to meet our goals We've had tremendous momentum over the last three years, and we've improved our margins materially, but it has not come at the expense of investing back into the business, and that's a really important thing to understand. we've had tremendous momentum over the last three years and we've improved our margins materially but it has not come at the expense of investing back into the business and that's a really important thing to understand We've moved our margins up, but we're also hiring people. we've moved our margins up but we're also hiring people That's not the only way that we do. that's not the only way that we do We also invest in technology, data science. we also invest in technology data science You heard all the great things that are going on on the panel earlier today. This is incredibly important. Harvey said, "This is a talent business." I'll call out private wealth. We've made significant investment there, and we're going to continue to do that. We could actually today run this business at a higher margin than we do. We don't. Why? Because it would come at the expense of future growth. We're not going to do that. We've been investing in the business, and we're gonna continue to. You heard all the great things that are going on on the panel earlier today. you heard all the great things that are going on on the panel earlier today This is incredibly important. this is incredibly important Harvey said, "This is a talent business." I'll call out private wealth. harvey said "this is a talent business." i'll call out private wealth We've made significant investment there, and we're going to continue to do that. we've made significant investment there and we're going to continue to do that We could actually today run this business at a higher margin than we do. we could actually today run this business at a higher margin than we do We don't. we don't Why? why Because it would come at the expense of future growth. because it would come at the expense of future growth We're not going to do that. we're not going to do that We've been investing in the business, and we're gonna continue to. we've been investing in the business and we're gonna continue to As we start this three-year period, we really come from an incredible position of strength. We have scalable investment strategies. We don't have to worry that our strategies will exhaust the opportunity set or that we have to add a tremendous amount of cost in order to continue doing what we're doing. We have scalable strategies. As we start this three-year period, we really come from an incredible position of strength. as we start this three-year period we really come from an incredible position of strength We have scalable investment strategies. we have scalable investment strategies We don't have to worry that our strategies will exhaust the opportunity set or that we have to add a tremendous amount of cost in order to continue doing what we're doing. we don't have to worry that our strategies will exhaust the opportunity set or that we have to add a tremendous amount of cost in order to continue doing what we're doing We have scalable strategies. we have scalable strategies The fund performance that we're gonna be marketing over the next three years, it's excellent. Our balance sheet is in great position. We run a balance sheet light strategy. We've always done that, we will continue to do it going forward, but it gives us a tremendous amount of flexibility to pursue whatever the best opportunity is to generate value for the firm. We have a durable and diversified set of strategies. We're not tied to one channel, we're not tied to one fund, we're not tied to one geography. We have many different ways that we can reach our goals. How are we gonna unlock shareholder value over the next three years? Well, here are the goals: $1.9 billion in FRE. That's 50% more than 2025. It's a 15% CAGR over the next three years. The fund performance that we're gonna be marketing over the next three years, it's excellent. the fund performance that we're gonna be marketing over the next three years it's excellent Our balance sheet is in great position. our balance sheet is in great position We run a balance sheet light strategy. we run a balance sheet light strategy We've always done that, we will continue to do it going forward, but it gives us a tremendous amount of flexibility to pursue whatever the best opportunity is to generate value for the firm. we've always done that we will continue to do it going forward but it gives us a tremendous amount of flexibility to pursue whatever the best opportunity is to generate value for the firm We have a durable and diversified set of strategies. we have a durable and diversified set of strategies We're not tied to one channel, we're not tied to one fund, we're not tied to one geography. we're not tied to one channel we're not tied to one fund we're not tied to one geography We have many different ways that we can reach our goals. we have many different ways that we can reach our goals How are we gonna unlock shareholder value over the next three years? how are we gonna unlock shareholder value over the next three years Well, here are the goals: $1.9 billion in FRE. well here are the goals $1.9 billion in fre That's 50% more than 2025. that's 50% more than 2025 It's a 15% CAGR over the next three years. it's a 15% cagr over the next three years $200 billion in fundraising, $2.8 billion in management fees, We expect to grow management fees and every other part of the top line like we've been doing over the past three years. We think we can run the business at a greater than 50% margin, while still investing back in the business, as I just mentioned. All of this adds up to a 50% growth in DE per share. We expect to be over $6, which would be the best ever for Carlyle, by 2028. Let's unpack that a little bit. The inflows are going to come from a variety of sources, a diversified set of sources. You can see here, every one of our segments, we expect will have inflows of at least $50 billion over the next three years. $200 billion in fundraising, $2.8 billion in management fees, We expect to grow management fees and every other part of the top line like we've been doing over the past three years. $200 billion in fundraising $2.8 billion in management fees we expect to grow management fees and every other part of the top line like we've been doing over the past three years We think we can run the business at a greater than 50% margin, while still investing back in the business, as I just mentioned. we think we can run the business at a greater than 50% margin while still investing back in the business as i just mentioned All of this adds up to a 50% growth in DE per share. all of this adds up to a 50% growth in de per share We expect to be over $6, which would be the best ever for Carlyle, by 2028. we expect to be over $6 which would be the best ever for carlyle by 2028 Let's unpack that a little bit. let's unpack that a little bit The inflows are going to come from a variety of sources, a diversified set of sources. the inflows are going to come from a variety of sources a diversified set of sources You can see here, every one of our segments, we expect will have inflows of at least $50 billion over the next three years. you can see here every one of our segments we expect will have inflows of at least $50 billion over the next three years 20% of those inflows, we expect to come from the wealth strategy. That's an increase for us, but as Shane said, this is a massive opportunity here. I think we're being very realistic about the level of inflows that we can get from wealth and retirement over time. This is 27% growth, and it's all organic. This fundraising is all organic. This does not assume we acquire something. 20% of those inflows, we expect to come from the wealth strategy. 20% of those inflows we expect to come from the wealth strategy That's an increase for us, but as Shane said, this is a massive opportunity here. that's an increase for us but as shane said this is a massive opportunity here I think we're being very realistic about the level of inflows that we can get from wealth and retirement over time. i think we're being very realistic about the level of inflows that we can get from wealth and retirement over time This is 27% growth, and it's all organic. this is 27% growth and it's all organic This fundraising is all organic. this fundraising is all organic This does not assume we acquire something. this does not assume we acquire something This does not assume a major insurance transaction. This is organic scaling of our existing strategies. We expect to grow fee revenues by about 12% CAGR between now and 2028. Again, that's gonna come from all three aspects of fee revenues. It's going to come from management fees, raising capital organically. It's going to come from fee-related performance revenue, those incentive fees we get as we expand in wealth. It's gonna come from transaction fees. This does not assume a major insurance transaction. this does not assume a major insurance transaction This is organic scaling of our existing strategies. this is organic scaling of our existing strategies We expect to grow fee revenues by about 12% CAGR between now and 2028. we expect to grow fee revenues by about 12% cagr between now and 2028 Again, that's gonna come from all three aspects of fee revenues. again that's gonna come from all three aspects of fee revenues It's going to come from management fees, raising capital organically. it's going to come from management fees raising capital organically It's going to come from fee-related performance revenue, those incentive fees we get as we expand in wealth. it's going to come from fee-related performance revenue those incentive fees we get as we expand in wealth It's gonna come from transaction fees. it's gonna come from transaction fees If you think about the capital that will come in through this super cycle into U.S. buyout, into credit opportunities, all this capital has to be deployed. When we deploy it, those are transaction fee opportunities for us, right? Our transaction fee income is really a direct derivative of all of the activity that we do across the firm and investing capital. The more capital we bring in, this is the flywheel, the more transaction fee opportunity we have. I want to be clear about something, though. This is not going to be linear. Our growth on the top line will be more muted in 2026, it will accelerate into 2027, it will accelerate further into 2028. Why is that? Basic math of fundraising. We have to go out and raise the capital. We will then deploy it. If you think about the capital that will come in through this super cycle into U.S. buyout, into credit opportunities, all this capital has to be deployed. if you think about the capital that will come in through this super cycle into u.s buyout into credit opportunities all this capital has to be deployed When we deploy it, those are transaction fee opportunities for us, right? when we deploy it those are transaction fee opportunities for us right Our transaction fee income is really a direct derivative of all of the activity that we do across the firm and investing capital. our transaction fee income is really a direct derivative of all of the activity that we do across the firm and investing capital The more capital we bring in, this is the flywheel, the more transaction fee opportunity we have. the more capital we bring in this is the flywheel the more transaction fee opportunity we have I want to be clear about something, though. i want to be clear about something though This is not going to be linear. this is not going to be linear Our growth on the top line will be more muted in 2026, it will accelerate into 2027, it will accelerate further into 2028. our growth on the top line will be more muted in 2026 it will accelerate into 2027 it will accelerate further into 2028 Why is that? why is that Basic math of fundraising. basic math of fundraising We have to go out and raise the capital. we have to go out and raise the capital We will then deploy it. we will then deploy it We will start to see that increase in top line, likely in the second half of 2026, into 2027, into 2028. We are very confident about this 3-year plan, I want to be clear about the timing there. We expect this top-line growth to be the main driver of FRE. We expect to go up 50% over the next three years, $1.2 billion-$1.9 billion. Again, even though we're gonna run this business, we believe at higher than 50%, that's also with investing back into the business, right? we can always run this business at a higher margin if we want to, but the number 1 goal right now is to invest back in, to continue to drive that top-line growth. These projections take that into account. We will start to see that increase in top line, likely in the second half of 2026, into 2027, into 2028. we will start to see that increase in top line likely in the second half of 2026 into 2027 into 2028 We are very confident about this 3-year plan, I want to be clear about the timing there. we are very confident about this 3-year plan i want to be clear about the timing there We expect this top-line growth to be the main driver of FRE. we expect this top-line growth to be the main driver of fre We expect to go up 50% over the next three years, $1.2 billion-$1.9 billion. we expect to go up 50% over the next three years $1.2 billion-$1.9 billion Again, even though we're gonna run this business, we believe at higher than 50%, that's also with investing back into the business, right? we can always run this business at a higher margin if we want to, but the number 1 goal right now is to invest back in, to continue to drive that top-line growth. again even though we're gonna run this business we believe at higher than 50% that's also with investing back into the business right we can always run this business at a higher margin if we want to but the number 1 goal right now is to invest back in to continue to drive that top-line growth These projections take that into account. these projections take that into account Operational discipline and scaled investment strategies will be core to this, scaling what we have. This, ultimately, we believe, will drive a 50% increase in DE. I mentioned before, today, about 70% of our DE is coming from the top line. Expect that to continue. I think that ratio will continue. Today, we're generating about $350 million a year of net realized performance revenues. I expect that to double by 2028. We'll be closer to $700 million. Again, we have $2.9 billion already accrued on the balance sheet that should flow through over the next three years. A large chunk of that is already there, but I think there's upside to it, and I'll give you an example. Operational discipline and scaled investment strategies will be core to this, scaling what we have. operational discipline and scaled investment strategies will be core to this scaling what we have This, ultimately, we believe, will drive a 50% increase in DE. this ultimately we believe will drive a 50% increase in de I mentioned before, today, about 70% of our DE is coming from the top line. i mentioned before today about 70% of our de is coming from the top line Expect that to continue. expect that to continue I think that ratio will continue. i think that ratio will continue Today, we're generating about $350 million a year of net realized performance revenues. today we're generating about $350 million a year of net realized performance revenues I expect that to double by 2028. i expect that to double by 2028 We'll be closer to $700 million. we'll be closer to $700 million Again, we have $2.9 billion already accrued on the balance sheet that should flow through over the next three years. again we have $2.9 billion already accrued on the balance sheet that should flow through over the next three years A large chunk of that is already there, but I think there's upside to it, and I'll give you an example. a large chunk of that is already there but i think there's upside to it and i'll give you an example If you take just our US buyout funds, CP VII and VIII, and you assume that they get to 2x multiple, just a 2x multiple, they're well on track to do that. If you assume they get there, that's an extra $1 billion of net realized performance revenue, just right there, over and above the $2.9 that's already on the balance sheet. We feel really good about our ability to hit these DE targets. I mentioned our balance sheet is a source of strength, and we're gonna use it in a number of different ways to drive growth. The first and foremost, always, invest back in the business to drive growth. If you take just our US buyout funds, CP VII and VIII, and you assume that they get to 2x multiple, just a 2x multiple, they're well on track to do that. if you take just our us buyout funds cp vii and viii and you assume that they get to 2x multiple just a 2x multiple they're well on track to do that If you assume they get there, that's an extra $1 billion of net realized performance revenue, just right there, over and above the $2.9 that's already on the balance sheet. if you assume they get there that's an extra $1 billion of net realized performance revenue just right there over and above the $2.9 that's already on the balance sheet We feel really good about our ability to hit these DE targets. we feel really good about our ability to hit these de targets I mentioned our balance sheet is a source of strength, and we're gonna use it in a number of different ways to drive growth. i mentioned our balance sheet is a source of strength and we're gonna use it in a number of different ways to drive growth The first and foremost, always, invest back in the business to drive growth. the first and foremost always invest back in the business to drive growth However, our board of directors just this week actually approved a new $2 billion share repurchase authorization over and above the one that we had existing. This gives us an enormous ability to take advantage of any volatility in our stock price. I would go so far as to say that at the current market, you should expect us to be very active in using this repurchase authorization. This is a tool in our toolkit to return capital to shareholders, to generate value for our investors. We are going to use it. I think this is a big statement by our board about what we think the true value of this firm is. I'm gonna leave you with these targets and with a couple of thoughts. Number 1, Harvey hit this right at the top: We did a bottoms-up build, right? These aren't... However, our board of directors just this week actually approved a new $2 billion share repurchase authorization over and above the one that we had existing. however our board of directors just this week actually approved a new $2 billion share repurchase authorization over and above the one that we had existing This gives us an enormous ability to take advantage of any volatility in our stock price. this gives us an enormous ability to take advantage of any volatility in our stock price I would go so far as to say that at the current market, you should expect us to be very active in using this repurchase authorization. i would go so far as to say that at the current market you should expect us to be very active in using this repurchase authorization This is a tool in our toolkit to return capital to shareholders, to generate value for our investors. this is a tool in our toolkit to return capital to shareholders to generate value for our investors We are going to use it. we are going to use it I think this is a big statement by our board about what we think the true value of this firm is. i think this is a big statement by our board about what we think the true value of this firm is I'm gonna leave you with these targets and with a couple of thoughts. i'm gonna leave you with these targets and with a couple of thoughts Number 1, Harvey hit this right at the top: We did a bottoms-up build, right? number 1 harvey hit this right at the top we did a bottoms-up build right These aren't... these aren't We didn't back into these numbers. We looked at our business on a granular level. We built it up. We feel incredibly confident in these numbers. They're all organic. This is us taking the business that we have and scaling it. No inorganic M&A, no unforeseen giant block insurance transactions. This is organic. Second thing is, we've put out a number of financial targets over the last few years since Harvey arrived. We've beat every single one of them. Every single one of them. I would tell you, we are highly confident that we will meet or beat these projections. We feel great about them. Maybe lastly, I'll pick up on something that Shane said in the prior panel. Carlyle is a really fun place to work right now. I've been here for almost 20 years. We didn't back into these numbers. we didn't back into these numbers We looked at our business on a granular level. we looked at our business on a granular level We built it up. we built it up We feel incredibly confident in these numbers. we feel incredibly confident in these numbers They're all organic. they're all organic This is us taking the business that we have and scaling it. this is us taking the business that we have and scaling it No inorganic M&A, no unforeseen giant block insurance transactions. no inorganic m&a no unforeseen giant block insurance transactions This is organic. this is organic Second thing is, we've put out a number of financial targets over the last few years since Harvey arrived. second thing is we've put out a number of financial targets over the last few years since harvey arrived We've beat every single one of them. we've beat every single one of them Every single one of them. every single one of them I would tell you, we are highly confident that we will meet or beat these projections. i would tell you we are highly confident that we will meet or beat these projections We feel great about them. we feel great about them Maybe lastly, I'll pick up on something that Shane said in the prior panel. maybe lastly i'll pick up on something that shane said in the prior panel Carlyle is a really fun place to work right now. carlyle is a really fun place to work right now I've been here for almost 20 years. i've been here for almost 20 years There's never been a time when we had so many interesting things going on here. From our normal investment strategies to AI, to entering new channels, there is so much going on that is hard to capture in the numbers. I can tell you from my perspective, I have never been more excited to be part of Carlyle, never been more excited for our future, and our growth prospects over the next three years. Thanks, everybody, for taking some time. We need to do a little bit of reshuffling here on the stage, we're going to immediately move into your questions. All right? Thank you very much. There's never been a time when we had so many interesting things going on here. there's never been a time when we had so many interesting things going on here From our normal investment strategies to AI, to entering new channels, there is so much going on that is hard to capture in the numbers. from our normal investment strategies to ai to entering new channels there is so much going on that is hard to capture in the numbers I can tell you from my perspective, I have never been more excited to be part of Carlyle, never been more excited for our future, and our growth prospects over the next three years. i can tell you from my perspective i have never been more excited to be part of carlyle never been more excited for our future and our growth prospects over the next three years Thanks, everybody, for taking some time. thanks everybody for taking some time We need to do a little bit of reshuffling here on the stage, we're going to immediately move into your questions. we need to do a little bit of reshuffling here on the stage we're going to immediately move into your questions All right? all right Thank you very much. thank you very much

Speaker 6: I mean, attention today. As Justin said, we're going to move to Q&A. I mean, attention today. i mean attention today As Justin said, we're going to move to Q&A. as justin said we're going to move to q&a As we reset the stage and we get all our speakers back on stage, I hope you can hear what we started with today earlier. There's incredible momentum at the firm. There's incredible excitement at the firm. As you heard from the key priorities that were really weaved throughout all of our presentations, there's, you know, enormous focus on investment excellence across all geographies and all assets. There's enormous focus on scale and how we use data to our advantage, and you saw that through multiple presentations, including the great AI panel. Lastly, as we think about high-growth opportunities, and you heard from a number of our people, there's just enormous ways for us to continue to grow. All of our guys are on stage now. We're ready to take your questions. As we reset the stage and we get all our speakers back on stage, I hope you can hear what we started with today earlier. as we reset the stage and we get all our speakers back on stage i hope you can hear what we started with today earlier There's incredible momentum at the firm. there's incredible momentum at the firm There's incredible excitement at the firm. there's incredible excitement at the firm As you heard from the key priorities that were really weaved throughout all of our presentations, there's, you know, enormous focus on investment excellence across all geographies and all assets. as you heard from the key priorities that were really weaved throughout all of our presentations there's you know enormous focus on investment excellence across all geographies and all assets There's enormous focus on scale and how we use data to our advantage, and you saw that through multiple presentations, including the great AI panel. there's enormous focus on scale and how we use data to our advantage and you saw that through multiple presentations including the great ai panel Lastly, as we think about high-growth opportunities, and you heard from a number of our people, there's just enormous ways for us to continue to grow. lastly as we think about high-growth opportunities and you heard from a number of our people there's just enormous ways for us to continue to grow All of our guys are on stage now. all of our guys are on stage now We're ready to take your questions. we're ready to take your questions We're gonna have mic runners in each area, so I'd ask for you to raise your hands when you're ready for a question, wait for the mic, and introduce yourself and your firm, and we're ready to take your questions. First question, right here in the middle, Brennan? We're gonna have mic runners in each area, so I'd ask for you to raise your hands when you're ready for a question, wait for the mic, and introduce yourself and your firm, and we're ready to take your questions. we're gonna have mic runners in each area so i'd ask for you to raise your hands when you're ready for a question wait for the mic and introduce yourself and your firm and we're ready to take your questions First question, right here in the middle, Brennan? first question right here in the middle brennan

Speaker 3: Hello, Brennan Hawkin from BMO. Harvey, you spoke to our collective intensity on targets. I don't want to disappoint you. Hello, Brennan Hawkin from BMO. hello brennan hawkin from bmo Harvey, you spoke to our collective intensity on targets. harvey you spoke to our collective intensity on targets I don't want to disappoint you. i don't want to disappoint you

Speaker 8: Yeah. Yeah. yeah

Speaker 3: The $1.9 billion, can you speak to? You guys used a lot of pluses on that slide. The $1.9 billion, can you speak to? the $1.9 billion can you speak to You guys used a lot of pluses on that slide. you guys used a lot of pluses on that slide

Speaker 8: Yeah. Yeah. yeah

Speaker 3: Could you speak to maybe how you view it, whether it's conservative, aggressive, and maybe give us some texture around some of the parts, the major parts of that? Could you speak to maybe how you view it, whether it's conservative, aggressive, and maybe give us some texture around some of the parts, the major parts of that? could you speak to maybe how you view it whether it's conservative aggressive and maybe give us some texture around some of the parts the major parts of that

Speaker 8: Well, again, everybody, thanks for being here, Brennan, and thanks for the question. The reason we have the pluses is the point that Justin just made, which is we haven't incorporated any, what I'll call, upside surprises. When Justin was saying any large insurance transactions, we haven't modeled in that over a likely three-year period, there'd be a large block transaction that Fortitude would do or a partnership we would do with Fortitude in some particular way that would enable a large insurance transaction. We haven't modeled in anything like that. We haven't modeled in any, I'll call it, excessive effect of the flywheel effect of what everybody talked about in terms of capital raising on transaction fees. Well, again, everybody, thanks for being here, Brennan, and thanks for the question. well again everybody thanks for being here brennan and thanks for the question The reason we have the pluses is the point that Justin just made, which is we haven't incorporated any, what I'll call, upside surprises. the reason we have the pluses is the point that justin just made which is we haven't incorporated any what i'll call upside surprises When Justin was saying any large insurance transactions, we haven't modeled in that over a likely three-year period, there'd be a large block transaction that Fortitude would do or a partnership we would do with Fortitude in some particular way that would enable a large insurance transaction. when justin was saying any large insurance transactions we haven't modeled in that over a likely three-year period there'd be a large block transaction that fortitude would do or a partnership we would do with fortitude in some particular way that would enable a large insurance transaction We haven't modeled in anything like that. we haven't modeled in anything like that We haven't modeled in any, I'll call it, excessive effect of the flywheel effect of what everybody talked about in terms of capital raising on transaction fees. we haven't modeled in any i'll call it excessive effect of the flywheel effect of what everybody talked about in terms of capital raising on transaction fees We haven't done any of that, and so when we looked at it, we really wanted to put together a case that you could hold us accountable to and we could hold ourselves accountable to. That's how we built the model, but I think there are obviously things that can go wrong in the world. There are a lot of things that can go right with this plan. Things can grow faster. We can deploy capital more effectively. You know, when you heard Shane earlier, he made a really, really important point. I'm sure there'll be some discussion around wealth. We're agnostic. It's not our job to tell wealth advisors how they should use private capital, how they should think about a particular structure. It's our job to figure out the vehicle that they want. We haven't done any of that, and so when we looked at it, we really wanted to put together a case that you could hold us accountable to and we could hold ourselves accountable to. we haven't done any of that and so when we looked at it we really wanted to put together a case that you could hold us accountable to and we could hold ourselves accountable to That's how we built the model, but I think there are obviously things that can go wrong in the world. that's how we built the model but i think there are obviously things that can go wrong in the world There are a lot of things that can go right with this plan. there are a lot of things that can go right with this plan Things can grow faster. things can grow faster We can deploy capital more effectively. we can deploy capital more effectively You know, when you heard Shane earlier, he made a really, really important point. you know when you heard shane earlier he made a really really important point I'm sure there'll be some discussion around wealth. i'm sure there'll be some discussion around wealth We're agnostic. we're agnostic It's not our job to tell wealth advisors how they should use private capital, how they should think about a particular structure. it's not our job to tell wealth advisors how they should use private capital how they should think about a particular structure It's our job to figure out the vehicle that they want. it's our job to figure out the vehicle that they want Could be a drawdown fund, could be an evergreen fund. Our job is to create these vehicles in a way that capture the investment talent of the firm and distribute it globally in the way that people need it. I think over the next three years, the trends in our business for the industry are quite good because the demand for capital is so high. It's just a question of: how do we create the flywheel effect? I just think the firm's well positioned for it. hey, now I feel like the need to hedge myself, I'd make a little plus. I'm just kidding. I would just reiterate the point that Justin said. I mean, this year, we've been pretty clear about this. Could be a drawdown fund, could be an evergreen fund. could be a drawdown fund could be an evergreen fund Our job is to create these vehicles in a way that capture the investment talent of the firm and distribute it globally in the way that people need it. our job is to create these vehicles in a way that capture the investment talent of the firm and distribute it globally in the way that people need it I think over the next three years, the trends in our business for the industry are quite good because the demand for capital is so high. i think over the next three years the trends in our business for the industry are quite good because the demand for capital is so high It's just a question of: how do we create the flywheel effect? it's just a question of how do we create the flywheel effect I just think the firm's well positioned for it. hey, now I feel like the need to hedge myself, I'd make a little plus. i just think the firm's well positioned for it hey now i feel like the need to hedge myself i'd make a little plus I'm just kidding. i'm just kidding I would just reiterate the point that Justin said. i would just reiterate the point that justin said I mean, this year, we've been pretty clear about this. i mean this year we've been pretty clear about this I think you're going to see sort of mid to upper single digits in the base model, but then it accelerates pretty quickly, and it's all driven by Jeff's super cycle of fundraising. I think there's upside in the model. I think you're going to see sort of mid to upper single digits in the base model, but then it accelerates pretty quickly, and it's all driven by Jeff's super cycle of fundraising. i think you're going to see sort of mid to upper single digits in the base model but then it accelerates pretty quickly and it's all driven by jeff's super cycle of fundraising I think there's upside in the model. i think there's upside in the model

Speaker 6: Great. Next question here, Bill Katz. Great. great Next question here, Bill Katz. next question here bill katz

Speaker 2: Thank you very much. Bill Katz, TD Cowen. Thank you very much. thank you very much Bill Katz, TD Cowen. bill katz td cowen

Speaker 8: Hey, Bill, good to see you. Hey, Bill, good to see you. hey bill good to see you

Speaker 2: Thank you. Great to be here. Great presentation. Thank you. Thank you. thank you Great to be here. great to be here Great presentation. great presentation Thank you. thank you

Speaker 8: Thank you. Thank you. thank you

Speaker 2: Maybe pick up where Justin left off, so, Harvey. On one hand, the stock's cheap, you're buying it's great to hear. We agree. On the other hand, and a lot of de novo growth, but also, we mentioned at the beginning of your commentary about the possibility that there could be other things to do. I'm wondering if you could maybe prioritize how we should think about capital return and how quickly you might go through the $2 billion, or what kind of deals you might be looking at, and how do we should think about maybe framing that out? Maybe pick up where Justin left off, so, Harvey. maybe pick up where justin left off so harvey On one hand, the stock's cheap, you're buying it's great to hear. on one hand the stock's cheap you're buying it's great to hear We agree. we agree On the other hand, and a lot of de novo growth, but also, we mentioned at the beginning of your commentary about the possibility that there could be other things to do. on the other hand and a lot of de novo growth but also we mentioned at the beginning of your commentary about the possibility that there could be other things to do I'm wondering if you could maybe prioritize how we should think about capital return and how quickly you might go through the $2 billion, or what kind of deals you might be looking at, and how do we should think about maybe framing that out? i'm wondering if you could maybe prioritize how we should think about capital return and how quickly you might go through the $2 billion or what kind of deals you might be looking at and how do we should think about maybe framing that out

Speaker 8: The most important thing about the model, and we have a strong preference for it, is staying capital light. There are certainly days where. You know, you all know my background. I come from a very capital-intensive, big balance sheet world. There are certainly days where I think, "Oh, you know, it'd be great to have an extra couple of billion dollars 'cause we could fuel the business faster." The reality is, we really like the capital light model, and we want to stick with that. I will say, the benefit of having the capital light model are all the things that Justin articulated. There's also no distraction when you have velocity. When you have volatility in the marketplace, we can focus on our portfolios and our investment and our clients. The most important thing about the model, and we have a strong preference for it, is staying capital light. the most important thing about the model and we have a strong preference for it is staying capital light There are certainly days where. there are certainly days where You know, you all know my background. you know you all know my background I come from a very capital-intensive, big balance sheet world. i come from a very capital-intensive big balance sheet world There are certainly days where I think, "Oh, you know, it'd be great to have an extra couple of billion dollars 'cause we could fuel the business faster." The reality is, we really like the capital light model, and we want to stick with that. there are certainly days where i think "oh you know it'd be great to have an extra couple of billion dollars 'cause we could fuel the business faster." the reality is we really like the capital light model and we want to stick with that I will say, the benefit of having the capital light model are all the things that Justin articulated. i will say the benefit of having the capital light model are all the things that justin articulated There's also no distraction when you have velocity. there's also no distraction when you have velocity When you have volatility in the marketplace, we can focus on our portfolios and our investment and our clients. when you have volatility in the marketplace we can focus on our portfolios and our investment and our clients We don't have that third aspect of a distraction. That's just my personal bias, it's the bias of our board, and it's the bias of the team. We are in a great capital position. We are gonna continuously balance capital invested in the business and capital return to the shareholders, and we'll do it methodically. This $2 billion, obviously a big step up from the first plan. When I arrived, John and I spent a lot of time on this when he was the CFO. You know, the firm had systematically diluted shareholders, really, since the firm went public, and we just decided that didn't make any sense. Certainly didn't make any sense at that valuation, and we don't think it makes sense at this valuation. We don't have that third aspect of a distraction. we don't have that third aspect of a distraction That's just my personal bias, it's the bias of our board, and it's the bias of the team. that's just my personal bias it's the bias of our board and it's the bias of the team We are in a great capital position. we are in a great capital position We are gonna continuously balance capital invested in the business and capital return to the shareholders, and we'll do it methodically. we are gonna continuously balance capital invested in the business and capital return to the shareholders and we'll do it methodically This $2 billion, obviously a big step up from the first plan. this $2 billion obviously a big step up from the first plan When I arrived, John and I spent a lot of time on this when he was the CFO. when i arrived john and i spent a lot of time on this when he was the cfo You know, the firm had systematically diluted shareholders, really, since the firm went public, and we just decided that didn't make any sense. you know the firm had systematically diluted shareholders really since the firm went public and we just decided that didn't make any sense Certainly didn't make any sense at that valuation, and we don't think it makes sense at this valuation. certainly didn't make any sense at that valuation and we don't think it makes sense at this valuation But again, growth first, and then returning capital to shareholders is a big priority, and that's why we wanted this flexibility, and the board want us to have this flexibility. Now, how will we use our capital? We really want to use our capital very surgically to fuel new businesses. The way we do that is trying to be as thoughtful as possible, and sometimes working with Mike Hacker and his team to figure out, hey, what's the most creative way? Like, we have all this expertise in the firm that works with GPs everywhere. We'd be pretty foolish not to be using that. We work with our teams to basically figure out how to most optimize, and we really think of our capital as quite precious. I mean, like, every dollar is... But again, growth first, and then returning capital to shareholders is a big priority, and that's why we wanted this flexibility, and the board want us to have this flexibility. but again growth first and then returning capital to shareholders is a big priority and that's why we wanted this flexibility and the board want us to have this flexibility Now, how will we use our capital? now how will we use our capital We really want to use our capital very surgically to fuel new businesses. we really want to use our capital very surgically to fuel new businesses The way we do that is trying to be as thoughtful as possible, and sometimes working with Mike Hacker and his team to figure out, hey, what's the most creative way? the way we do that is trying to be as thoughtful as possible and sometimes working with mike hacker and his team to figure out hey what's the most creative way Like, we have all this expertise in the firm that works with GPs everywhere. like we have all this expertise in the firm that works with gps everywhere We'd be pretty foolish not to be using that. we'd be pretty foolish not to be using that We work with our teams to basically figure out how to most optimize, and we really think of our capital as quite precious. we work with our teams to basically figure out how to most optimize and we really think of our capital as quite precious I mean, like, every dollar is... i mean like every dollar is If you want $1, you got to beg for $1 here, okay? We want to be very disciplined about capital return. When we give it to the businesses, we want them to optimize how to use that, but we want them to use that to grow businesses, and we want them to use that to grow businesses that have repeatable streams of revenue, where we can provide value to the clients. That's the thinking. You know, Justin even mentioned, you had it on the slide, opportunistic M&A. You know, we don't need opportunistic M&A to drive value in this platform. We're certainly open to it. I would say it's a very high bar also for us. It has to meet the screening of the industrial logic, culture, really important at Carlyle. If you want $1, you got to beg for $1 here, okay? if you want $1 you got to beg for $1 here okay We want to be very disciplined about capital return. we want to be very disciplined about capital return When we give it to the businesses, we want them to optimize how to use that, but we want them to use that to grow businesses, and we want them to use that to grow businesses that have repeatable streams of revenue, where we can provide value to the clients. when we give it to the businesses we want them to optimize how to use that but we want them to use that to grow businesses and we want them to use that to grow businesses that have repeatable streams of revenue where we can provide value to the clients That's the thinking. that's the thinking You know, Justin even mentioned, you had it on the slide, opportunistic M&A. you know justin even mentioned you had it on the slide opportunistic m&a You know, we don't need opportunistic M&A to drive value in this platform. you know we don't need opportunistic m&a to drive value in this platform We're certainly open to it. we're certainly open to it I would say it's a very high bar also for us. i would say it's a very high bar also for us It has to meet the screening of the industrial logic, culture, really important at Carlyle. it has to meet the screening of the industrial logic culture really important at carlyle You know, obviously, the economics got to make a ton of sense. You know, obviously, the economics got to make a ton of sense. you know obviously the economics got to make a ton of sense

Speaker 6: Chris Kotowski? Chris Kotowski? chris kotowski

Speaker 5: Chris Kotowski from Oppenheimer. If I disaggregate your $200 billion fundraising target a bit, if I've done my math right, it, like, shows a 6% pickup in credit fundraising, but a 72% pickup in private equity fundraising, which seems to, you know, also probably be a key revenue driver towards that $1.9 billion, right? You know, I understand you've got CP IX coming in, but on the other hand, you had the real estate fund in the last year. Can you disaggregate kind of the building blocks to get to that $50 billion? Chris Kotowski from Oppenheimer. chris kotowski from oppenheimer If I disaggregate your $200 billion fundraising target a bit, if I've done my math right, it, like, shows a 6% pickup in credit fundraising, but a 72% pickup in private equity fundraising, which seems to, you know, also probably be a key revenue driver towards that $1.9 billion, right? if i disaggregate your $200 billion fundraising target a bit if i've done my math right it like shows a 6% pickup in credit fundraising but a 72% pickup in private equity fundraising which seems to you know also probably be a key revenue driver towards that $1.9 billion right You know, I understand you've got CP IX coming in, but on the other hand, you had the real estate fund in the last year. you know i understand you've got cp ix coming in but on the other hand you had the real estate fund in the last year Can you disaggregate kind of the building blocks to get to that $50 billion? can you disaggregate kind of the building blocks to get to that $50 billion

Speaker 8: Yeah, we can certainly go through in a lot of detail offline with you, Chris. I think the way to think about it is, you're gonna have real estate come back in a couple of years, you'll have AlpInvest come in, you have CP IX, you'll have the Japanese fund come back in. Then, of course, you have, as I mentioned, the flagship fund in SECF, all coming in over the next three years. Remember, this is not everything being launched in March of 2026. This is gonna come across a three-year period of fundraising. The other thing, you didn't ask about this, but I think it's worth really noting, last year, of the $54 billion, I guess about 15%, Jeff, came from what we'll call the wealth channel, broadly. Yeah, we can certainly go through in a lot of detail offline with you, Chris. yeah we can certainly go through in a lot of detail offline with you chris I think the way to think about it is, you're gonna have real estate come back in a couple of years, you'll have AlpInvest come in, you have CP IX, you'll have the Japanese fund come back in. i think the way to think about it is you're gonna have real estate come back in a couple of years you'll have alpinvest come in you have cp ix you'll have the japanese fund come back in Then, of course, you have, as I mentioned, the flagship fund in SECF, all coming in over the next three years. then of course you have as i mentioned the flagship fund in secf all coming in over the next three years Remember, this is not everything being launched in March of 2026. remember this is not everything being launched in march of 2026 This is gonna come across a three-year period of fundraising. this is gonna come across a three-year period of fundraising The other thing, you didn't ask about this, but I think it's worth really noting, last year, of the $54 billion, I guess about 15%, Jeff, came from what we'll call the wealth channel, broadly. the other thing you didn't ask about this but i think it's worth really noting last year of the $54 billion i guess about 15% jeff came from what we'll call the wealth channel broadly You know, that represents about $40 billion across the entire platform. That's really moving it from 15% to 20%. Wealth is important, but we don't really see it growing to more than 20% of the aggregate fundraising. That's how you get it wrapped around the whole platform. You know, that represents about $40 billion across the entire platform. you know that represents about $40 billion across the entire platform That's really moving it from 15% to 20%. that's really moving it from 15% to 20% Wealth is important, but we don't really see it growing to more than 20% of the aggregate fundraising. wealth is important but we don't really see it growing to more than 20% of the aggregate fundraising That's how you get it wrapped around the whole platform. that's how you get it wrapped around the whole platform

Speaker 9: Hey, can I just add one simple thing as well? I said this earlier, it's just embedded in the cadence of our fundraising. It was organic, it was bottoms-up built, and you touched it's just basically embedded in the cadence. Hey, can I just add one simple thing as well? hey can i just add one simple thing as well I said this earlier, it's just embedded in the cadence of our fundraising. i said this earlier it's just embedded in the cadence of our fundraising It was organic, it was bottoms-up built, and you touched it's just basically embedded in the cadence. it was organic it was bottoms-up built and you touched it's just basically embedded in the cadence

Speaker 10: Yeah, I mean, just quickly, in the global private equity business, every single fund will be in the market at some point in this three-year period, those are basically the building blocks. Yeah, I mean, just quickly, in the global private equity business, every single fund will be in the market at some point in this three-year period, those are basically the building blocks. yeah i mean just quickly in the global private equity business every single fund will be in the market at some point in this three-year period those are basically the building blocks

Speaker 6: We'll go over here. Patrick Davitt in front. We'll go over here. we'll go over here Patrick Davitt in front. patrick davitt in front

Speaker 21: Thanks. Patrick Davitt, Autonomous Research. I have a question on the wealth channel. Obviously, a lot of misleading noise out there, so I'd like to get a real-time update on what you're hearing from the big distributors and advisors to the extent all this direct lending news flow is potentially impacting their demand for private credit products specifically, and also any comfort that you can provide that it doesn't infect the demand algorithm for all retail alternative products. Thanks. thanks Patrick Davitt, Autonomous Research. patrick davitt autonomous research I have a question on the wealth channel. i have a question on the wealth channel Obviously, a lot of misleading noise out there, so I'd like to get a real-time update on what you're hearing from the big distributors and advisors to the extent all this direct lending news flow is potentially impacting their demand for private credit products specifically, and also any comfort that you can provide that it doesn't infect the demand algorithm for all retail alternative products. obviously a lot of misleading noise out there so i'd like to get a real-time update on what you're hearing from the big distributors and advisors to the extent all this direct lending news flow is potentially impacting their demand for private credit products specifically and also any comfort that you can provide that it doesn't infect the demand algorithm for all retail alternative products

Speaker 8: Yeah. Hey, Patrick, good question. You know, when I, when I got to Carlyle, you know, the wealth channel, was already in motion, and I knew immediately, as I said before, I knew the power of our brand and our reach and our scale, but we didn't have a well-defined wealth strategy. You know, Mark and Justin had designed CTAC, but we didn't have other vehicles, and we didn't have a well-articulated strategy. One of the things I did. Obviously, the team drove all this, and Shane coming on board and all the people he's brought on board drove all this, but one of the things that was really critical to me was to spend a lot of time with the end client, Patrick, so I spent a lot of time with advisors, and I continue to spend a lot of time with advisors. Yeah. yeah Hey, Patrick, good question. hey patrick good question You know, when I, when I got to Carlyle, you know, the wealth channel, was already in motion, and I knew immediately, as I said before, I knew the power of our brand and our reach and our scale, but we didn't have a well-defined wealth strategy. you know when i when i got to carlyle you know the wealth channel was already in motion and i knew immediately as i said before i knew the power of our brand and our reach and our scale but we didn't have a well-defined wealth strategy You know, Mark and Justin had designed CTAC, but we didn't have other vehicles, and we didn't have a well-articulated strategy. you know mark and justin had designed ctac but we didn't have other vehicles and we didn't have a well-articulated strategy One of the things I did. one of the things i did Obviously, the team drove all this, and Shane coming on board and all the people he's brought on board drove all this, but one of the things that was really critical to me was to spend a lot of time with the end client, Patrick, so I spent a lot of time with advisors, and I continue to spend a lot of time with advisors. obviously the team drove all this and shane coming on board and all the people he's brought on board drove all this but one of the things that was really critical to me was to spend a lot of time with the end client patrick so i spent a lot of time with advisors and i continue to spend a lot of time with advisors As soon as I showed up, this notion of liquidity in the vehicles was something that I thought a lot about. Really, from the day I've shown up, I've been saying to advisors in small rooms, big rooms, presentations, I've said it publicly, I think the industry did itself a bit of a disservice, calling the vehicles semi-liquid, and we just should have called them sometimes not liquid at all. And it's you know, these advisors are quite smart people, and they're managing very sophisticated portfolios. Again, we don't show up and say, "Oh, you need to have Carlyle AlpInvest in your portfolio. You don't need to have CTAC." It's really the decision of the advisor to understand what their end client needs. Now, I took your question sort of down the liquidity path. As soon as I showed up, this notion of liquidity in the vehicles was something that I thought a lot about. as soon as i showed up this notion of liquidity in the vehicles was something that i thought a lot about Really, from the day I've shown up, I've been saying to advisors in small rooms, big rooms, presentations, I've said it publicly, I think the industry did itself a bit of a disservice, calling the vehicles semi-liquid, and we just should have called them sometimes not liquid at all. really from the day i've shown up i've been saying to advisors in small rooms big rooms presentations i've said it publicly i think the industry did itself a bit of a disservice calling the vehicles semi-liquid and we just should have called them sometimes not liquid at all And it's you know, these advisors are quite smart people, and they're managing very sophisticated portfolios. and it's you know these advisors are quite smart people and they're managing very sophisticated portfolios Again, we don't show up and say, "Oh, you need to have Carlyle AlpInvest in your portfolio. again we don't show up and say "oh you need to have carlyle alpinvest in your portfolio You don't need to have CTAC." It's really the decision of the advisor to understand what their end client needs. you don't need to have ctac." it's really the decision of the advisor to understand what their end client needs Now, I took your question sort of down the liquidity path. now i took your question sort of down the liquidity path Your question really started with direct lending. You know, in direct lending, a lot of that discussion today is around what's happening in SaaS, and I'm just gonna touch on that for a minute, and I realize it's a very long answer, Patrick, but I think it's an important question. What's happening in direct lending today as it relates to SaaS, and everybody knows we're not. SaaS, as I sort of made a joke about earlier, SaaS was not the core competency that was built up out of our private equity business. You know, this is not about direct lending, this is about businesses being bought at really, really high multiples. In 2021, 2022, you had companies that were perceived to have very stable recurring revenue, that were bought at very high multiples. Your question really started with direct lending. your question really started with direct lending You know, in direct lending, a lot of that discussion today is around what's happening in SaaS, and I'm just gonna touch on that for a minute, and I realize it's a very long answer, Patrick, but I think it's an important question. you know in direct lending a lot of that discussion today is around what's happening in saas and i'm just gonna touch on that for a minute and i realize it's a very long answer patrick but i think it's an important question What's happening in direct lending today as it relates to SaaS, and everybody knows we're not. what's happening in direct lending today as it relates to saas and everybody knows we're not SaaS, as I sort of made a joke about earlier, SaaS was not the core competency that was built up out of our private equity business. saas as i sort of made a joke about earlier saas was not the core competency that was built up out of our private equity business You know, this is not about direct lending, this is about businesses being bought at really, really high multiples. you know this is not about direct lending this is about businesses being bought at really really high multiples In 2021, 2022, you had companies that were perceived to have very stable recurring revenue, that were bought at very high multiples. in 2021 2022 you had companies that were perceived to have very stable recurring revenue that were bought at very high multiples Those multiples have systematically come down a bit before this new concern around AI disrupting all the businesses. It's actually an equity problem, which is then transferring up the capital structure, potentially to a direct lending problem. In wealth, we have a very strong bias that diversification is a real advantage for the client. There's many times I'll meet with a group of advisors and they'll say, "Hey, we'd really like to have, like, co-invest in this one asset," or, you know, "Whatever you think is the best thing," and I completely understand that. I don't love that. I understand why some clients would like that. Those multiples have systematically come down a bit before this new concern around AI disrupting all the businesses. those multiples have systematically come down a bit before this new concern around ai disrupting all the businesses It's actually an equity problem, which is then transferring up the capital structure, potentially to a direct lending problem. it's actually an equity problem which is then transferring up the capital structure potentially to a direct lending problem In wealth, we have a very strong bias that diversification is a real advantage for the client. in wealth we have a very strong bias that diversification is a real advantage for the client There's many times I'll meet with a group of advisors and they'll say, "Hey, we'd really like to have, like, co-invest in this one asset," or, you know, "Whatever you think is the best thing," and I completely understand that. there's many times i'll meet with a group of advisors and they'll say "hey we'd really like to have like co-invest in this one asset," or you know "whatever you think is the best thing," and i completely understand that I don't love that. i don't love that I understand why some clients would like that. i understand why some clients would like that You know, John, one of our best investors, Brian, one of our best investors in the world, if they make 100 investments, one might not be great. I think in the wealth channel, you want diversification, one of the great things about CTAC that Mark built is that it has that diversification across the whole platform. Yeah, if you're dependent on direct lending, monoline, you probably ended up with a meaningful part of SaaS exposure just because of the cycle during 2021, 2022, and now those multiples are a problem. This is a complicated convergence of factors, which is really getting extrapolated in a whole host of different ways. That's the long answer. I hope that sort of satisfied your question. You know, John, one of our best investors, Brian, one of our best investors in the world, if they make 100 investments, one might not be great. you know john one of our best investors brian one of our best investors in the world if they make 100 investments one might not be great I think in the wealth channel, you want diversification, one of the great things about CTAC that Mark built is that it has that diversification across the whole platform. i think in the wealth channel you want diversification one of the great things about ctac that mark built is that it has that diversification across the whole platform Yeah, if you're dependent on direct lending, monoline, you probably ended up with a meaningful part of SaaS exposure just because of the cycle during 2021, 2022, and now those multiples are a problem. yeah if you're dependent on direct lending monoline you probably ended up with a meaningful part of saas exposure just because of the cycle during 2021 2022 and now those multiples are a problem This is a complicated convergence of factors, which is really getting extrapolated in a whole host of different ways. this is a complicated convergence of factors which is really getting extrapolated in a whole host of different ways That's the long answer. that's the long answer I hope that sort of satisfied your question. i hope that sort of satisfied your question Feedback from the platform so far is that interest remains high, and I think to Jeff's point, it may not be linear. When you think of the size of the wealth opportunity, when you think of retirement, where millions of people have already, teachers, municipal employees, already are having the benefit of private markets in their portfolios through pension plans, you know, it's just a question of the industry needs to do it right, we need to do it thoughtfully, we need to do it at pace, and we really have to work on thoughtful solutions, particularly as retirement comes into play. The industry has a great obligation to most importantly, get it right, not rush to market. Feedback from the platform so far is that interest remains high, and I think to Jeff's point, it may not be linear. feedback from the platform so far is that interest remains high and i think to jeff's point it may not be linear When you think of the size of the wealth opportunity, when you think of retirement, where millions of people have already, teachers, municipal employees, already are having the benefit of private markets in their portfolios through pension plans, you know, it's just a question of the industry needs to do it right, we need to do it thoughtfully, we need to do it at pace, and we really have to work on thoughtful solutions, particularly as retirement comes into play. when you think of the size of the wealth opportunity when you think of retirement where millions of people have already teachers municipal employees already are having the benefit of private markets in their portfolios through pension plans you know it's just a question of the industry needs to do it right we need to do it thoughtfully we need to do it at pace and we really have to work on thoughtful solutions particularly as retirement comes into play The industry has a great obligation to most importantly, get it right, not rush to market. the industry has a great obligation to most importantly get it right not rush to market

Speaker 6: up here in front, Michael Brown. up here in front, Michael Brown. up here in front michael brown

Speaker 17: Hey, Michael Brown, UBS. Hey, Michael Brown, UBS. hey michael brown ubs

Speaker 8: Hey, Mike. Hey, Mike. hey mike

Speaker 17: Thank you so much for the day. Kind of a related question. There is certainly a lot more volatility in the market lately. The last six quarters have been very, very active for Carlyle on the exit front. Can you maybe just give us an update on the IPO and M&A exit opportunities now? Is it still business as usual? Like, what are you kind of hearing from the investment teams? Thank you so much for the day. thank you so much for the day Kind of a related question. kind of a related question There is certainly a lot more volatility in the market lately. there is certainly a lot more volatility in the market lately The last six quarters have been very, very active for Carlyle on the exit front. the last six quarters have been very very active for carlyle on the exit front Can you maybe just give us an update on the IPO and M&A exit opportunities now? can you maybe just give us an update on the ipo and m&a exit opportunities now Is it still business as usual? is it still business as usual Like, what are you kind of hearing from the investment teams? like what are you kind of hearing from the investment teams

Speaker 8: I'll kick it off, and then I'll ask John to talk a bit about it, and then to the extent Mark should add some color. Our exits, this is not an accident. Two years ago, we looked at the world, and we basically said: credit spreads are very tight, markets were doing quite well. We knew that our clients, broadly, in the private equity world, and I'm talking across the whole industry, so our clients were also clients of the whole industry, that DPI was lagging. In part, it was lagging because of that multiple problem from 2021 and 2022, where assets were bought at higher multiples. We just strategically decided we were not gonna let that window. We don't know how long those windows will stay open. I'll kick it off, and then I'll ask John to talk a bit about it, and then to the extent Mark should add some color. i'll kick it off and then i'll ask john to talk a bit about it and then to the extent mark should add some color Our exits, this is not an accident. our exits this is not an accident Two years ago, we looked at the world, and we basically said: credit spreads are very tight, markets were doing quite well. two years ago we looked at the world and we basically said credit spreads are very tight markets were doing quite well We knew that our clients, broadly, in the private equity world, and I'm talking across the whole industry, so our clients were also clients of the whole industry, that DPI was lagging. we knew that our clients broadly in the private equity world and i'm talking across the whole industry so our clients were also clients of the whole industry that dpi was lagging In part, it was lagging because of that multiple problem from 2021 and 2022, where assets were bought at higher multiples. in part it was lagging because of that multiple problem from 2021 and 2022 where assets were bought at higher multiples We just strategically decided we were not gonna let that window. we just strategically decided we were not gonna let that window We don't know how long those windows will stay open. we don't know how long those windows will stay open A lot of credit to Brian and Steve in the U.S., our teams in Japan, all around the world, they made a decision to very actively prepare to monetize. As John said, we did the largest ever owned private equity IPO in India, Japan, the United States. We opened the market with StandardAero. This was a very strategic decision, and it was about creating value for all of our clients, returning capital when they wanted capital and others weren't doing it. At the same time, again, we're not waiting for the market to go up another 5% or 10% for every last dollar. That's not, that's not what we wanna do. We wanna create value, and we wanna hit these windows when we can, because the world can be a vulnerable place. A lot of credit to Brian and Steve in the U.S., our teams in Japan, all around the world, they made a decision to very actively prepare to monetize. a lot of credit to brian and steve in the u.s our teams in japan all around the world they made a decision to very actively prepare to monetize As John said, we did the largest ever owned private equity IPO in India, Japan, the United States. as john said we did the largest ever owned private equity ipo in india japan the united states We opened the market with StandardAero. we opened the market with standardaero This was a very strategic decision, and it was about creating value for all of our clients, returning capital when they wanted capital and others weren't doing it. this was a very strategic decision and it was about creating value for all of our clients returning capital when they wanted capital and others weren't doing it At the same time, again, we're not waiting for the market to go up another 5% or 10% for every last dollar. at the same time again we're not waiting for the market to go up another 5% or 10% for every last dollar That's not, that's not what we wanna do. that's not that's not what we wanna do We wanna create value, and we wanna hit these windows when we can, because the world can be a vulnerable place. we wanna create value and we wanna hit these windows when we can because the world can be a vulnerable place As you said, it can be somewhat volatile. As much as we have a very good look into the economy because of our platform, there's a lot of stuff happening out there. I don't know, John, you can give a better sense of the forward view. As you said, it can be somewhat volatile. as you said it can be somewhat volatile As much as we have a very good look into the economy because of our platform, there's a lot of stuff happening out there. as much as we have a very good look into the economy because of our platform there's a lot of stuff happening out there I don't know, John, you can give a better sense of the forward view. i don't know john you can give a better sense of the forward view

Speaker 10: Yeah, I mean, look, when you look at the ingredients, you want to have a conducive, healthy monetization environment. I mean, they're all in place, right? The economy is strong. The IPO markets are. I mean, investment bankers would tell you, they're opening, they're open. I think they're opening, they're opening, and they're definitely open for great companies like a Medline. M&A activity is accelerating, spreads are tight, CEO confidence is improving. You're seeing trade buyers more present. The regulatory environment's getting more favorable. Like, all the ingredients are there to have a lot of activity. I think people were a little surprised, industry-wise. Yeah, I mean, look, when you look at the ingredients, you want to have a conducive, healthy monetization environment. yeah i mean look when you look at the ingredients you want to have a conducive healthy monetization environment I mean, they're all in place, right? i mean they're all in place right The economy is strong. the economy is strong The IPO markets are. the ipo markets are I mean, investment bankers would tell you, they're opening, they're open. i mean investment bankers would tell you they're opening they're open I think they're opening, they're opening, and they're definitely open for great companies like a Medline. i think they're opening they're opening and they're definitely open for great companies like a medline M&A activity is accelerating, spreads are tight, CEO confidence is improving. m&a activity is accelerating spreads are tight ceo confidence is improving You're seeing trade buyers more present. you're seeing trade buyers more present The regulatory environment's getting more favorable. the regulatory environment's getting more favorable Like, all the ingredients are there to have a lot of activity. like all the ingredients are there to have a lot of activity I think people were a little surprised, industry-wise. i think people were a little surprised industry-wise

Speaker 8: Mm Mm mm

Speaker 10: ... 2025 was not as active. For us, it was incredibly active, but for the industry, it wasn't as active. I think we would have had a even better year. We had Liberation Day in 2025, and we had an extended government shutdown. When I look at those two factors and look at what we did in 2025, I think it's actually amazing. When you look at kinda where we are year to date, and let's just talk about the U.S., we have $7.5 billion of realizations closed or pending in 2026. You know, I think it'll be a very active year. ... 2025 was not as active. 2025 was not as active For us, it was incredibly active, but for the industry, it wasn't as active. for us it was incredibly active but for the industry it wasn't as active I think we would have had a even better year. i think we would have had a even better year We had Liberation Day in 2025, and we had an extended government shutdown. we had liberation day in 2025 and we had an extended government shutdown When I look at those two factors and look at what we did in 2025, I think it's actually amazing. when i look at those two factors and look at what we did in 2025 i think it's actually amazing When you look at kinda where we are year to date, and let's just talk about the U.S., we have $7.5 billion of realizations closed or pending in 2026. when you look at kinda where we are year to date and let's just talk about the u.s we have $7.5 billion of realizations closed or pending in 2026 You know, I think it'll be a very active year. you know i think it'll be a very active year

Speaker 8: Anybody else, or is it just to lunch? One in the back. Glenn Schorr. Anybody else, or is it just to lunch? anybody else or is it just to lunch One in the back. one in the back Glenn Schorr. glenn schorr

Speaker 7: Hi. I guess I want to follow up on the AI conversation. I appreciate that that wasn't your strong point in software, and you didn't overpay on some names that are at risk. I think a lot of discussion in the market is bigger, broader, and that AI is having potential massive implications across many industries. I'm curious to see how you think about what's left in your existing portfolios, and then, more importantly, how you underwrite new assets for what we now know. You know, you're using it. Hi. hi I guess I want to follow up on the AI conversation. i guess i want to follow up on the ai conversation I appreciate that that wasn't your strong point in software, and you didn't overpay on some names that are at risk. i appreciate that that wasn't your strong point in software and you didn't overpay on some names that are at risk I think a lot of discussion in the market is bigger, broader, and that AI is having potential massive implications across many industries. i think a lot of discussion in the market is bigger broader and that ai is having potential massive implications across many industries I'm curious to see how you think about what's left in your existing portfolios, and then, more importantly, how you underwrite new assets for what we now know. i'm curious to see how you think about what's left in your existing portfolios and then more importantly how you underwrite new assets for what we now know You know, you're using it. you know you're using it A lot of your presentation was how you use it to make your systems and your processes better, but I would think it has a pretty big implication on how we underwrite going forward, and just a little more color on that would be great. A lot of your presentation was how you use it to make your systems and your processes better, but I would think it has a pretty big implication on how we underwrite going forward, and just a little more color on that would be great. a lot of your presentation was how you use it to make your systems and your processes better but i would think it has a pretty big implication on how we underwrite going forward and just a little more color on that would be great

Speaker 8: Yeah. In 2010, little bit of history here I think is important one, because some of this is just people doing really thoughtful things that ultimately end up being really brilliant things. In 2010, Bill Conway decided that he really wanted to understand what the KPIs were in the portfolio companies. Obviously, you know, Bill, one of the greatest investors ever existing in private markets and become a great friend and co-chair of our board. He sought out to start organizing data around all those companies to see what kind of proprietary advantage we have. That started in 2010. Nobody even knew chat was coming in 2023 and the launch of LLMs. That was the beginning of the journey of harnessing our proprietary data. Yeah. yeah In 2010, little bit of history here I think is important one, because some of this is just people doing really thoughtful things that ultimately end up being really brilliant things. in 2010 little bit of history here i think is important one because some of this is just people doing really thoughtful things that ultimately end up being really brilliant things In 2010, Bill Conway decided that he really wanted to understand what the KPIs were in the portfolio companies. in 2010 bill conway decided that he really wanted to understand what the kpis were in the portfolio companies Obviously, you know, Bill, one of the greatest investors ever existing in private markets and become a great friend and co-chair of our board. obviously you know bill one of the greatest investors ever existing in private markets and become a great friend and co-chair of our board He sought out to start organizing data around all those companies to see what kind of proprietary advantage we have. he sought out to start organizing data around all those companies to see what kind of proprietary advantage we have That started in 2010. that started in 2010 Nobody even knew chat was coming in 2023 and the launch of LLMs. nobody even knew chat was coming in 2023 and the launch of llms That was the beginning of the journey of harnessing our proprietary data. that was the beginning of the journey of harnessing our proprietary data The team comes along and says: "Hey, is there any way we can use this data to use machine learning to be better investors?" LLMs come on the scene three years ago and have this great step function change in technological capability and a lot of promise. The reason we walked you through that panel is there is a lot of, I think, It may sound a little critical, little parlor trick stuff going on, like, oh, you know, we write our IC memos. Personally, I don't know if 7th graders can get their term papers written in an LLM. I don't think it should be that hard to write an IC. I don't actually think it's great for people to write IC memos with large language model. I think they should just be writing them themselves. The team comes along and says: "Hey, is there any way we can use this data to use machine learning to be better investors?" LLMs come on the scene three years ago and have this great step function change in technological capability and a lot of promise. the team comes along and says "hey is there any way we can use this data to use machine learning to be better investors?" llms come on the scene three years ago and have this great step function change in technological capability and a lot of promise The reason we walked you through that panel is there is a lot of, I think, It may sound a little critical, little parlor trick stuff going on, like, oh, you know, we write our IC memos. the reason we walked you through that panel is there is a lot of i think it may sound a little critical little parlor trick stuff going on like oh you know we write our ic memos Personally, I don't know if 7th graders can get their term papers written in an LLM. personally i don't know if 7th graders can get their term papers written in an llm I don't think it should be that hard to write an IC. i don't think it should be that hard to write an ic I don't actually think it's great for people to write IC memos with large language model. i don't actually think it's great for people to write ic memos with large language model I think they should just be writing them themselves. i think they should just be writing them themselves I think it's really good for young people. That's, like, not our focus, right? Because we have a data advantage, the team started organizing all the data. They organized the data not knowing LLMs were coming. LLMs come. That's the convenient cross-section of when these things intersect. I luckily. This all happens before I get here. I show up literally almost two years ago to the day. The LLMs come a couple of months, you know, Chat launches a couple of months before I get here. It's this perfect convergence of data with technological capability, which has only continued to accelerate. To your point, now let's get to the fundamental question. Immediately, we started saying to ourselves: How can we use these tools to be better investors? I think it's really good for young people. i think it's really good for young people That's, like, not our focus, right? that's like not our focus right Because we have a data advantage, the team started organizing all the data. because we have a data advantage the team started organizing all the data They organized the data not knowing LLMs were coming. they organized the data not knowing llms were coming LLMs come. llms come That's the convenient cross-section of when these things intersect. that's the convenient cross-section of when these things intersect I luckily. i luckily This all happens before I get here. this all happens before i get here I show up literally almost two years ago to the day. i show up literally almost two years ago to the day The LLMs come a couple of months, you know, Chat launches a couple of months before I get here. the llms come a couple of months you know chat launches a couple of months before i get here It's this perfect convergence of data with technological capability, which has only continued to accelerate. it's this perfect convergence of data with technological capability which has only continued to accelerate To your point, now let's get to the fundamental question. to your point now let's get to the fundamental question Immediately, we started saying to ourselves: How can we use these tools to be better investors? immediately we started saying to ourselves how can we use these tools to be better investors You know, what we wanted to do today, and I hope it was helpful, was kind of really give you a look under the hood at how we use things, 'cause there's too much general discussion out there and not enough explicit discussion. The example that Matt gave you about that healthcare company is really critical, because if you avoid investments that somehow underperform because you just have better data advantage and you can inform your teams, you get outperformance. It's all about outperformance. It's all about investment performance. If you can get an extra 100 basis points, 200 basis points, 300 basis points, you're talking about remarkable outcomes over a 10-year, 20-year, 30-year period. You know, what we wanted to do today, and I hope it was helpful, was kind of really give you a look under the hood at how we use things, 'cause there's too much general discussion out there and not enough explicit discussion. you know what we wanted to do today and i hope it was helpful was kind of really give you a look under the hood at how we use things 'cause there's too much general discussion out there and not enough explicit discussion The example that Matt gave you about that healthcare company is really critical, because if you avoid investments that somehow underperform because you just have better data advantage and you can inform your teams, you get outperformance. the example that matt gave you about that healthcare company is really critical because if you avoid investments that somehow underperform because you just have better data advantage and you can inform your teams you get outperformance It's all about outperformance. it's all about outperformance It's all about investment performance. it's all about investment performance If you can get an extra 100 basis points, 200 basis points, 300 basis points, you're talking about remarkable outcomes over a 10 -year , 20 -year , 30-year period. if you can get an extra 100 basis points 200 basis points 300 basis points you're talking about remarkable outcomes over a 10 -year 20 -year 30-year period Our whole focus is on use cases and how do we fund the investment in the team, the talent, using the models, because we want use cases. Like, I'm obsessed with use cases, and this whole team spends a lot of time with that team. What we wanna do is we want to identify where can we better enhance our team's performance the day they commit the capital? Once we commit the capital, we've made a decision. First and foremost, how do we most inform our teams? How do we make our teams better? By the way, you know, Lúcia did an amazing job describing all the things we're doing in productivity. It is not a headcount thing. We're 2,500 people. We're not looking to eliminate 100 people. Our whole focus is on use cases and how do we fund the investment in the team, the talent, using the models, because we want use cases. our whole focus is on use cases and how do we fund the investment in the team the talent using the models because we want use cases Like, I'm obsessed with use cases, and this whole team spends a lot of time with that team. like i'm obsessed with use cases and this whole team spends a lot of time with that team What we wanna do is we want to identify where can we better enhance our team's performance the day they commit the capital? what we wanna do is we want to identify where can we better enhance our team's performance the day they commit the capital Once we commit the capital, we've made a decision. once we commit the capital we've made a decision First and foremost, how do we most inform our teams? first and foremost how do we most inform our teams How do we make our teams better? how do we make our teams better By the way, you know, Lúcia did an amazing job describing all the things we're doing in productivity. by the way you know lúcia did an amazing job describing all the things we're doing in productivity It is not a headcount thing. it is not a headcount thing We're 2,500 people. we're 2,500 people We're not looking to eliminate 100 people. we're not looking to eliminate 100 people We're actually looking to add more people and make them incrementally more productive and get an exponential effect. When we inform the teams better, give them maximum information, and allow them to make the best investment decision, you get better investment outcomes. For the companies we own, I think the team explained it really well. You know, it's hard to scale engineers, and so it's not like you can say to every portfolio company, "Hey, we'll give you 10 engineers." Nobody can do that. The talent pool's not deep enough, it's not rich enough, it doesn't exist in the external environment. What we do is, we make sure the teams know about the technological capabilities. We're actually looking to add more people and make them incrementally more productive and get an exponential effect. we're actually looking to add more people and make them incrementally more productive and get an exponential effect When we inform the teams better, give them maximum information, and allow them to make the best investment decision, you get better investment outcomes. when we inform the teams better give them maximum information and allow them to make the best investment decision you get better investment outcomes For the companies we own, I think the team explained it really well. for the companies we own i think the team explained it really well You know, it's hard to scale engineers, and so it's not like you can say to every portfolio company, "Hey, we'll give you 10 engineers." Nobody can do that. you know it's hard to scale engineers and so it's not like you can say to every portfolio company "hey we'll give you 10 engineers." nobody can do that The talent pool's not deep enough, it's not rich enough, it doesn't exist in the external environment. the talent pool's not deep enough it's not rich enough it doesn't exist in the external environment What we do is, we make sure the teams know about the technological capabilities. what we do is we make sure the teams know about the technological capabilities We want to keep them very, the portfolio companies, very current, and at the same time, we wanna make sure, and Lucia described it, we wanna make sure they have access to all the resources that exist in the world. Okay, how do we then leverage that? We funnel that back in. If they have the, you know, that day she described where we had hundreds of presentations to CEOs and CTOs, we want the people running the portfolio companies to make sure they have access to the most current knowledge, so they can then hire the right firms, engage the right firms, use the technology, they can have breakthroughs. Now, our responsibility is then, once we get them access, to create the flywheel effect around that. We want to keep them very, the portfolio companies, very current, and at the same time, we wanna make sure, and Lucia described it, we wanna make sure they have access to all the resources that exist in the world. we want to keep them very the portfolio companies very current and at the same time we wanna make sure and lucia described it we wanna make sure they have access to all the resources that exist in the world Okay, how do we then leverage that? okay how do we then leverage that We funnel that back in. we funnel that back in If they have the, you know, that day she described where we had hundreds of presentations to CEOs and CTOs, we want the people running the portfolio companies to make sure they have access to the most current knowledge, so they can then hire the right firms, engage the right firms, use the technology, they can have breakthroughs. if they have the you know that day she described where we had hundreds of presentations to ceos and ctos we want the people running the portfolio companies to make sure they have access to the most current knowledge so they can then hire the right firms engage the right firms use the technology they can have breakthroughs Now, our responsibility is then, once we get them access, to create the flywheel effect around that. now our responsibility is then once we get them access to create the flywheel effect around that By the way, in terms of committing capital, the way we think about the investment process is no different in private equity than it is in Mark's business, than it is in Carlyle AlpInvest. It's all about leveraging the technology to make better investment decisions and make our people more productive. By the way, in terms of committing capital, the way we think about the investment process is no different in private equity than it is in Mark's business, than it is in Carlyle AlpInvest. by the way in terms of committing capital the way we think about the investment process is no different in private equity than it is in mark's business than it is in carlyle alpinvest It's all about leveraging the technology to make better investment decisions and make our people more productive. it's all about leveraging the technology to make better investment decisions and make our people more productive

Speaker 20: Question up here. Mike Vinci. Question up here. question up here Mike Vinci. mike vinci

Speaker 19: Hey, guys. Mike Vinci from Goldman. You guys spoke about warehousing some deal flow on the balance sheet for CPEP. Can we maybe talk through the interplay between choosing to warehouse that deal flow versus giving it to LPs, and maybe what the longer-term puts and takes of that could be for the either management fee rate growth algorithm or any other interplay you see there? Thanks. Hey, guys. hey guys Mike Vinci from Goldman. mike vinci from goldman You guys spoke about warehousing some deal flow on the balance sheet for CPEP. you guys spoke about warehousing some deal flow on the balance sheet for cpep Can we maybe talk through the interplay between choosing to warehouse that deal flow versus giving it to LPs, and maybe what the longer-term puts and takes of that could be for the either management fee rate growth algorithm or any other interplay you see there? can we maybe talk through the interplay between choosing to warehouse that deal flow versus giving it to lps and maybe what the longer-term puts and takes of that could be for the either management fee rate growth algorithm or any other interplay you see there Thanks. thanks

Speaker 8: Well, we don't, we don't, there's no cherry-picking of one thing in one bucket versus another bucket, so we wanna make sure we have waterfalls, so there's no conflict between our LPs. We basically create the opportunity for our retail vehicles off the flow that's in our institutional business. We don't want our institutional clients to be in conflict with our wealth clients. We don't want our wealth clients to be in conflict with our institutional clients. You know, for example, in Carlyle AlpInvest, there's an allocation methodology. We don't describe, "Oh, well, this will go here, or this will go there." The retail vehicle has its own investment committee. John can speak to that process more. Well, we don't, we don't, there's no cherry-picking of one thing in one bucket versus another bucket, so we wanna make sure we have waterfalls, so there's no conflict between our LPs. well we don't we don't there's no cherry-picking of one thing in one bucket versus another bucket so we wanna make sure we have waterfalls so there's no conflict between our lps We basically create the opportunity for our retail vehicles off the flow that's in our institutional business. we basically create the opportunity for our retail vehicles off the flow that's in our institutional business We don't want our institutional clients to be in conflict with our wealth clients. we don't want our institutional clients to be in conflict with our wealth clients We don't want our wealth clients to be in conflict with our institutional clients. we don't want our wealth clients to be in conflict with our institutional clients You know, for example, in Carlyle AlpInvest, there's an allocation methodology. you know for example in carlyle alpinvest there's an allocation methodology We don't describe, "Oh, well, this will go here, or this will go there." The retail vehicle has its own investment committee. we don't describe "oh well this will go here or this will go there." the retail vehicle has its own investment committee John can speak to that process more. john can speak to that process more

Speaker 10: Yeah. Yeah. yeah

Speaker 8: The reason Justin used that as an example is, we want that capital... When we're deploying capital, and again, we are gonna be a bit psychotic at the margin about how we deploy it. When we deploy that capital, we want velocity in it as best we can. His point was, "Hey, we're using it to launch the vehicle, 'cause we've got to ramp up for the vehicle, but we're gonna get that capital back, and then we're gonna redeploy it back into the business." John can talk a bit more about- The reason Justin used that as an example is, we want that capital... the reason justin used that as an example is we want that capital When we're deploying capital, and again, we are gonna be a bit psychotic at the margin about how we deploy it. when we're deploying capital and again we are gonna be a bit psychotic at the margin about how we deploy it When we deploy that capital, we want velocity in it as best we can. when we deploy that capital we want velocity in it as best we can His point was, "Hey, we're using it to launch the vehicle, 'cause we've got to ramp up for the vehicle, but we're gonna get that capital back, and then we're gonna redeploy it back into the business." John can talk a bit more about- his point was "hey we're using it to launch the vehicle 'cause we've got to ramp up for the vehicle but we're gonna get that capital back and then we're gonna redeploy it back into the business." john can talk a bit more about-

Speaker 10: Yeah, I would just reiterate what Harvey said. The balance sheet warehousing for CPEP, the private equity wealth product, it's just because the product's new, right? You think about the episodic nature of the content origination in a private equity business, we wanted to have enough content when we started to raise money to put into the fund. Over time, that warehousing will go to zero, and there will be no need going forward for a warehousing capability in that product. It was just I think of it more as kinda seeding the fund, getting it going. Yeah, I would just reiterate what Harvey said. yeah i would just reiterate what harvey said The balance sheet warehousing for CPEP, the private equity wealth product, it's just because the product's new, right? the balance sheet warehousing for cpep the private equity wealth product it's just because the product's new right You think about the episodic nature of the content origination in a private equity business, we wanted to have enough content when we started to raise money to put into the fund. you think about the episodic nature of the content origination in a private equity business we wanted to have enough content when we started to raise money to put into the fund Over time, that warehousing will go to zero, and there will be no need going forward for a warehousing capability in that product. over time that warehousing will go to zero and there will be no need going forward for a warehousing capability in that product It was just I think of it more as kinda seeding the fund, getting it going. it was just i think of it more as kinda seeding the fund getting it going

Speaker 8: Yeah Yeah yeah

Speaker 10: ... versus kind of a warehouse concept. ... versus kind of a warehouse concept. versus kind of a warehouse concept

Speaker 9: Hey, Harvey, can I just add one small thing? When we originated secondary, and I think Brian can speak to this, I think with CP VII and CP VIII, there was $22 billion of secondary origination, so large notional amounts done just in those funds alone. Hey, Harvey, can I just add one small thing? hey harvey can i just add one small thing When we originated secondary, and I think Brian can speak to this, I think with CP VII and CP VIII, there was $22 billion of secondary origination, so large notional amounts done just in those funds alone. when we originated secondary and i think brian can speak to this i think with cp vii and cp viii there was $22 billion of secondary origination so large notional amounts done just in those funds alone

Speaker 6: Question back here with Glenn Schorr. Question back here with Glenn Schorr. question back here with glenn schorr

Speaker 7: Hi, sorry, one more. Maybe a good wrap-up question. I personally am still a huge believer in the secular growth story of private markets. I think you guys laid out a very good job of your individual businesses. This big ramp- Hi, sorry, one more. hi sorry one more Maybe a good wrap-up question. maybe a good wrap-up question I personally am still a huge believer in the secular growth story of private markets. i personally am still a huge believer in the secular growth story of private markets I think you guys laid out a very good job of your individual businesses. i think you guys laid out a very good job of your individual businesses This big ramp- this big ramp- is interesting, and I think you backed it up with performance and everything you laid out. You know, when we step back, we see LPs are super cash-starved because DPI in other firms hasn't been as good. You see, the wealth industry being more cautious, hopefully just a moment in time, but there's less gross sales and higher redemption requests on certain products. Then there's a lot of competition. There's at least, you know, 93 or so new evergreen funds launched across the industry last year. Is it that we're gonna see a consolidation of winners, or is this just a cyclical moment of time, of softness? I'd love to get your thoughts on how we should balance your big growth drivers while you have these temporary, hopefully temporary, slowdowns. is interesting, and I think you backed it up with performance and everything you laid out. is interesting and i think you backed it up with performance and everything you laid out You know, when we step back, we see LPs are super cash-starved because DPI in other firms hasn't been as good. you know when we step back we see lps are super cash-starved because dpi in other firms hasn't been as good You see, the wealth industry being more cautious, hopefully just a moment in time, but there's less gross sales and higher redemption requests on certain products. you see the wealth industry being more cautious hopefully just a moment in time but there's less gross sales and higher redemption requests on certain products Then there's a lot of competition. then there's a lot of competition There's at least, you know, 93 or so new evergreen funds launched across the industry last year. there's at least you know 93 or so new evergreen funds launched across the industry last year Is it that we're gonna see a consolidation of winners, or is this just a cyclical moment of time, of softness? is it that we're gonna see a consolidation of winners or is this just a cyclical moment of time of softness I'd love to get your thoughts on how we should balance your big growth drivers while you have these temporary, hopefully temporary, slowdowns. i'd love to get your thoughts on how we should balance your big growth drivers while you have these temporary hopefully temporary slowdowns

Speaker 8: I would say, you know, to Jeff's point, the reason we're able to articulate this growth, and we're just articulating the facts, is the cadence of the fundraising. That's it. We have funds coming to market, and we expect those funds to grow. I think I'm gonna answer your question, but I think what you're getting at is: why should you feel confident in our ability to execute? You know, we put these numbers here, we try to be really explicit for you, because if I'm not explicit, you guys kill me, and I don't want you guys to kill me. We want to be as explicit. Also, we want to hold ourselves to this discipline. I would say, you know, to Jeff's point, the reason we're able to articulate this growth, and we're just articulating the facts, is the cadence of the fundraising. i would say you know to jeff's point the reason we're able to articulate this growth and we're just articulating the facts is the cadence of the fundraising That's it. that's it We have funds coming to market, and we expect those funds to grow. we have funds coming to market and we expect those funds to grow I think I'm gonna answer your question, but I think what you're getting at is: why should you feel confident in our ability to execute? i think i'm gonna answer your question but i think what you're getting at is why should you feel confident in our ability to execute You know, we put these numbers here, we try to be really explicit for you, because if I'm not explicit, you guys kill me, and I don't want you guys to kill me. you know we put these numbers here we try to be really explicit for you because if i'm not explicit you guys kill me and i don't want you guys to kill me We want to be as explicit. we want to be as explicit Also, we want to hold ourselves to this discipline. also we want to hold ourselves to this discipline The reality is, I don't know, wealth could be bigger, retirement could be bigger, wealth could be a little smaller, AlpInvest could be bigger, we could deploy capital faster, CTAC could SECF could grow dramatically based on its performance. I think from our perspective, the reason we're comfortable with the output around FREDE is our starting point of the diversification of the platform. The reality is, I don't know, wealth could be bigger, retirement could be bigger, wealth could be a little smaller, AlpInvest could be bigger, we could deploy capital faster, CTAC could SECF could grow dramatically based on its performance. the reality is i don't know wealth could be bigger retirement could be bigger wealth could be a little smaller alpinvest could be bigger we could deploy capital faster ctac could secf could grow dramatically based on its performance I think from our perspective, the reason we're comfortable with the output around FREDE is our starting point of the diversification of the platform. i think from our perspective the reason we're comfortable with the output around frede is our starting point of the diversification of the platform I think it'd be much harder for me to tell you that if I was just a middle-market private equity firm, or if Carlyle was just a secondaries firm, or if Carlyle was just a direct lending platform. It's the diversity of the platform, Glenn, that gives us comfort that there's ballast, right? I don't know, maybe over the next three years, for whatever reason, private equity is a little slower. I think it'd be much harder for me to tell you that if I was just a middle-market private equity firm, or if Carlyle was just a secondaries firm, or if Carlyle was just a direct lending platform. i think it'd be much harder for me to tell you that if i was just a middle-market private equity firm or if carlyle was just a secondaries firm or if carlyle was just a direct lending platform It's the diversity of the platform, Glenn, that gives us comfort that there's ballast, right? it's the diversity of the platform glenn that gives us comfort that there's ballast right I don't know, maybe over the next three years, for whatever reason, private equity is a little slower. i don't know maybe over the next three years for whatever reason private equity is a little slower I suspect that means Carlyle AlpInvest will scale faster, vice versa. They're kinda two sides of the coin, although I agree with everything Mike said. The industry is evolving in a way where solutions and corporate finance, which is really more the world I come from originally, is super exciting. Super exciting. I just think, ultimately, Glenn, the demand for capital will pull capital. I suspect that means Carlyle AlpInvest will scale faster, vice versa. i suspect that means carlyle alpinvest will scale faster vice versa They're kinda two sides of the coin, although I agree with everything Mike said. they're kinda two sides of the coin although i agree with everything mike said The industry is evolving in a way where solutions and corporate finance, which is really more the world I come from originally, is super exciting. the industry is evolving in a way where solutions and corporate finance which is really more the world i come from originally is super exciting Super exciting. super exciting I just think, ultimately, Glenn, the demand for capital will pull capital. i just think ultimately glenn the demand for capital will pull capital You know, when I started my opening comments, I said, everywhere I go in the world, everybody wants capital. by the way, they want bank capital, they want public market capital, they want high-yield bonds. People want to finance growth. Private capital is an incredibly important part of that growth. We've lost half the public companies in the Wilshire in 25 years, 26 years, the demand for capital will be higher. You know, when I started my opening comments, I said, everywhere I go in the world, everybody wants capital. by the way, they want bank capital, they want public market capital, they want high-yield bonds. you know when i started my opening comments i said everywhere i go in the world everybody wants capital by the way they want bank capital they want public market capital they want high-yield bonds People want to finance growth. people want to finance growth Private capital is an incredibly important part of that growth. private capital is an incredibly important part of that growth We've lost half the public companies in the Wilshire in 25 years, 26 years, the demand for capital will be higher. we've lost half the public companies in the wilshire in 25 years 26 years the demand for capital will be higher This is our best estimate sitting here today with a ground-up build of what we think is achievable. These numbers will move a little bit, and we'll keep you updated. This is our best estimate sitting here today with a ground-up build of what we think is achievable. this is our best estimate sitting here today with a ground-up build of what we think is achievable These numbers will move a little bit, and we'll keep you updated. these numbers will move a little bit and we'll keep you updated

Speaker 6: Maybe one last follow-up. Bill? Maybe one last follow-up. maybe one last follow-up Bill? bill

Speaker 2: Sorry, Glenn. Bill Katz again, TD Cowen. Just thinking through the margin opportunity, just listening to each of the segments and just doing the mental math on the margins are already pretty high. As you think about going forward, I appreciate the reinvestment opportunity, and you could run the business at a higher margin if you wanted to today. When you look across the different businesses, where do you see the best incremental margin opportunity? Sorry, Glenn. sorry glenn Bill Katz again, TD Cowen. bill katz again td cowen Just thinking through the margin opportunity, just listening to each of the segments and just doing the mental math on the margins are already pretty high. just thinking through the margin opportunity just listening to each of the segments and just doing the mental math on the margins are already pretty high As you think about going forward, I appreciate the reinvestment opportunity, and you could run the business at a higher margin if you wanted to today. as you think about going forward i appreciate the reinvestment opportunity and you could run the business at a higher margin if you wanted to today When you look across the different businesses, where do you see the best incremental margin opportunity? when you look across the different businesses where do you see the best incremental margin opportunity

Speaker 8: Best? I don't really think of it that way, Bill. I mean, I don't know that we rank it as best. We really take a very long-term view because we're not steering ourselves to, oh, this has the best margin. I will say that over the past three years, what we've done is been really thoughtful about making sure opportunities are scalable. You know, Mark, talked a lot about this in the credit platform, and he talked about. Mark, you can jump in, but he talked about how when he's thought about the platform, and he has these, they're not just evergreen vehicles for wealth, but sort of vehicles for institutional clients, cross-platform. Why don't you- Best? best I don't really think of it that way, Bill. i don't really think of it that way bill I mean, I don't know that we rank it as best. i mean i don't know that we rank it as best We really take a very long-term view because we're not steering ourselves to, oh, this has the best margin. we really take a very long-term view because we're not steering ourselves to oh this has the best margin I will say that over the past three years, what we've done is been really thoughtful about making sure opportunities are scalable. i will say that over the past three years what we've done is been really thoughtful about making sure opportunities are scalable You know, Mark, talked a lot about this in the credit platform, and he talked about. you know mark talked a lot about this in the credit platform and he talked about Mark, you can jump in, but he talked about how when he's thought about the platform, and he has these, they're not just evergreen vehicles for wealth, but sort of vehicles for institutional clients, cross-platform. mark you can jump in but he talked about how when he's thought about the platform and he has these they're not just evergreen vehicles for wealth but sort of vehicles for institutional clients cross-platform Why don't you- why don't you-

Speaker 14: Yeah Yeah yeah

Speaker 8: give a sense of the cross-platform and why that's a margin driver? give a sense of the cross-platform and why that's a margin driver? give a sense of the cross-platform and why that's a margin driver

Speaker 14: I think the margin expansion comes from. I, you know, I got 20 minutes, so I didn't have the detail, but we built purposely that platform with, you've got key strategies that are, you know, feeding the origination, if you will, but we have both institutional and wealth cross-platform accounts for each incremental. It's open architecture, so when we bring an opportunity in, it gets allocated across that whole platform, not just to one specific strategy. That one origination, you know, as it grows and the capital grows, you know, you're just getting a higher margin because we're not hiring more people to originate, right? We're not hiring more people to prosecute them. That leads to just a higher margin for the platform. I think the margin expansion comes from. i think the margin expansion comes from I, you know, I got 20 minutes, so I didn't have the detail, but we built purposely that platform with, you've got key strategies that are, you know, feeding the origination, if you will, but we have both institutional and wealth cross-platform accounts for each incremental. i you know i got 20 minutes so i didn't have the detail but we built purposely that platform with you've got key strategies that are you know feeding the origination if you will but we have both institutional and wealth cross-platform accounts for each incremental It's open architecture, so when we bring an opportunity in, it gets allocated across that whole platform, not just to one specific strategy. it's open architecture so when we bring an opportunity in it gets allocated across that whole platform not just to one specific strategy That one origination, you know, as it grows and the capital grows, you know, you're just getting a higher margin because we're not hiring more people to originate, right? that one origination you know as it grows and the capital grows you know you're just getting a higher margin because we're not hiring more people to originate right We're not hiring more people to prosecute them. we're not hiring more people to prosecute them That leads to just a higher margin for the platform. that leads to just a higher margin for the platform

Speaker 8: Yeah. You know, direct lending, obviously getting a lot of attention today because of the exposure to SaaS and everything like that. Again, when I showed up, everybody said to me, "Oh, you have a problem. You don't have a big enough direct lending business. Yeah. yeah You know, direct lending, obviously getting a lot of attention today because of the exposure to SaaS and everything like that. you know direct lending obviously getting a lot of attention today because of the exposure to saas and everything like that Again, when I showed up, everybody said to me, "Oh, you have a problem. again when i showed up everybody said to me "oh you have a problem You don't have a big enough direct lending business. you don't have a big enough direct lending business

Speaker 14: Yeah. Yeah. yeah

Speaker 8: We're investing in our direct lending business. We're adding resources. We actually think there could be a pullback in the marketplace, people will be more disciplined about spending, about the next marginal dollar that goes into direct lending. Direct lending is not going away. We think it could be an important part of Mark's toolkit. We're investing in our direct lending business. we're investing in our direct lending business We're adding resources. we're adding resources We actually think there could be a pullback in the marketplace, people will be more disciplined about spending, about the next marginal dollar that goes into direct lending. we actually think there could be a pullback in the marketplace people will be more disciplined about spending about the next marginal dollar that goes into direct lending Direct lending is not going away. direct lending is not going away We think it could be an important part of Mark's toolkit. we think it could be an important part of mark's toolkit I don't really think about, oh, this has the next best margin opportunity, just because that sort of takes the whole rest of the equation. Obviously, it's an important input, but it's not how I prioritize it. Obviously, the team does all that work, and Justin obsesses about it. I really do go back to first principles, Bill, and I say: "What does the client need? What does the wealth advisor need? What does the sovereign wealth fund need? What does the pension fund need? I don't really think about, oh, this has the next best margin opportunity, just because that sort of takes the whole rest of the equation. i don't really think about oh this has the next best margin opportunity just because that sort of takes the whole rest of the equation Obviously, it's an important input, but it's not how I prioritize it. obviously it's an important input but it's not how i prioritize it Obviously, the team does all that work, and Justin obsesses about it. obviously the team does all that work and justin obsesses about it I really do go back to first principles, Bill, and I say: "What does the client need? i really do go back to first principles bill and i say "what does the client need What does the wealth advisor need? what does the wealth advisor need What does the sovereign wealth fund need? what does the sovereign wealth fund need What does the pension fund need? what does the pension fund need What does the insurance company need? What do these clients need? How can we construct that in a way that delivers value for the firm and for our team, and people wanna be, you know, involved with and excited about? Honestly, they've never said that to me before publicly. They talk about how hard they're working, but it's great to know they're having fun, too. Everybody, we could not be more grateful for your support. I really meant it when I said it before. A lot of you, when I showed up, gave me great feedback. Sometimes it was intense, but super appreciated. Keep giving us the feedback. What does the insurance company need? what does the insurance company need What do these clients need? what do these clients need How can we construct that in a way that delivers value for the firm and for our team, and people wanna be, you know, involved with and excited about? how can we construct that in a way that delivers value for the firm and for our team and people wanna be you know involved with and excited about Honestly, they've never said that to me before publicly. honestly they've never said that to me before publicly They talk about how hard they're working, but it's great to know they're having fun, too. they talk about how hard they're working but it's great to know they're having fun too Everybody, we could not be more grateful for your support. everybody we could not be more grateful for your support I really meant it when I said it before. i really meant it when i said it before A lot of you, when I showed up, gave me great feedback. a lot of you when i showed up gave me great feedback Sometimes it was intense, but super appreciated. sometimes it was intense but super appreciated Keep giving us the feedback. keep giving us the feedback We learn from all of you, and we truly appreciate all your support and your time. We learn from all of you, and we truly appreciate all your support and your time. we learn from all of you and we truly appreciate all your support and your time

Speaker 23: Thank you. Thank you. thank you

Speaker 8: Thanks so much, everybody. Thanks so much, everybody. thanks so much everybody