Research Update: The Carlyle Group Inc. Rating Raised To 'A-' On Reduced Leverage, AUM Growth, And Diversification; Outlook Stable

The Carlyle Group Inc., an alternative asset manager, has grown and diversified its assets under management and its fee-related earnings and reduced its debt. As a result, the company's EBITDA, as we measured it, increased and gained stability while its leverage declined. We raised our long-term issuer credit rating on Carlyle and its rated operating subsidiaries to 'A-' from 'BBB+' and our issue ratings on the senior unsecured and subordinated debt issued by Carlyle's operating subsidiaries to 'A-' and 'BBB', respectively. The outlook on the rating is stable. Over the next two years, we expect the company to maintain leverage--as we measure it--near or modestly below 1.5x and continue to grow its fee-related earnings, even as its more volatile performance

...- The Carlyle Group Inc., an alternative asset manager, has grown and diversified its assets under management and its fee-related earnings and reduced its debt. - As a result, the company's EBITDA, as we measured it, increased and gained stability while its leverage declined. - We raised our long-term issuer credit rating on Carlyle and its rated operating subsidiaries to 'A-' from '###+' and our issue ratings on the senior unsecured and subordinated debt issued by Carlyle's operating subsidiaries to 'A-' and '###', respectively. - The outlook on the rating is stable. Over the next two years, we expect the company to maintain leverage--as we measure it--near or modestly below 1.5x and continue to grow its fee-related earnings, even as its more volatile performance allocations are likely to fall from 2021's very high level....

Research Update