Research Update: The Carlyle Group Inc. Outlook Revised To Positive On Lower Leverage And Stronger Earnings; Ratings Affirmed

We believe The Carlyle Group Inc.'s alternative asset management business, with assets under management (AUM) up 25% over the previous year as of June 30, 2021 (to $276 billion), will continue to experience solid growth over the next two years due to strong fundraising prospects. Carlyle's adjusted leverage metric has hovered below 2.0x for the last few years, as adjusted EBITDA was stronger than we had expected. We revised our outlook on Carlyle to positive from stable and affirmed our 'BBB+' rating on the company. The positive outlook indicates that we could raise the ratings if Carlyle sustains leverage comfortably at the lower end of 1.5x-2.0x to offset its smaller size relative to certain alternative asset manager peers and if

...- We believe The Carlyle Group Inc.'s alternative asset management business, with assets under management (AUM) up 25% over the previous year as of June 30, 2021 (to $276 billion), will continue to experience solid growth over the next two years due to strong fundraising prospects. - Carlyle's adjusted leverage metric has hovered below 2.0x for the last few years, as adjusted EBITDA was stronger than we had expected. - We revised our outlook on Carlyle to positive from stable and affirmed our '###+' rating on the company. - The positive outlook indicates that we could raise the ratings if Carlyle sustains leverage comfortably at the lower end of 1.5x-2.0x to offset its smaller size relative to certain alternative asset manager peers and if investment performance, EBITDA, AUM growth, and liquidity remain strong....

Research Update