Carlyle Group Posts 50% FRE Growth, Unveils $2B Buyback and $54 Target
The Carlyle Group posted record 2025 fee-related earnings of $1.24 billion, up 50% from 2023, with a 47% FRE margin and distributable earnings of $1.7 billion. The board approved a $2 billion share buyback, set 2028 targets including $1.9 billion FRE and $200 billion cumulative inflows, while BofA raised its price objective to $54.
1. Price Target Revision
Bank of America boosted its price objective on The Carlyle Group to $54 from $52 while maintaining an Underperform rating and updating EPS estimates across its asset manager coverage.
2. Record 2025 Financial Results
Carlyle reported record 2025 fee-related earnings of $1.24 billion, a 50% increase from 2023, alongside a 47% FRE margin, $1.7 billion in distributable earnings and transaction fees of $225 million, driven by a 20% compound organic growth rate.
3. India Housing Finance Deal
The firm committed 21 billion rupees ($232 million) to acquire a 45% stake in Nido Home Finance and injected 15 billion rupees in fresh equity, positioning its Asia Partners funds to hold about 73% of the housing finance arm.
4. Share Buyback and 2028 Targets
Carlyle's board approved a $2 billion share buyback from a robust balance sheet position and set 2028 targets of $1.9 billion in fee-related earnings, a 50% FRE margin, $2.8 billion in management fees, $200 billion in cumulative inflows and at least $6 in DE per share.