The Carlyle Group Inc.

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Carlyle Group First Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. If anyone should require assistance during the conference, please press star zero. I would now like to hand the conference over to your host, Mr. Daniel Harris. Please go ahead, sir.

Thank you, Tiffany. Good morning and welcome to Carlyle's first quarter 2020 earnings call. With me on the call today are our co-chief executive officers, Kyu-Sung Lee and Glenn Youngkin, and our chief financial officer, Kurt Buser. This call is being webcast and a replay will be available on our website. We will refer to certain non-GAAP financial measures during today's call. These measures should not be considered in isolation from or as a substitute for measures prepared in accordance with generally accepted accounting principles. We have provided reconciliations of these measures to GAAP in our earnings release. 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 of our annual report on 410 , and other SEC filings that could cause actual results to differ materially from those indicated. Carlisle assumes no obligation to update any forward-looking statements at any time. Earlier this morning, we issued a press release and detailed earnings presentation, which is also available on our investor relations website. For the first quarter, we generated $129 million in fee-related earnings and $175 million in distributable earnings, with DE per common share of 48 cents. We have declared a quarterly dividend of 25 cents per common share. To ensure participation by all those on the call, please limit yourself to one question and then return to the queue for any additional follow-ups. And with that, let me turn the call over to our Co-Chief Executive Officer, Glenn Youngkin.

Thank you, Dan, and good morning, everyone. Thank you for joining us. To describe the current global health and economic crisis as unprecedented feels wholly inadequate. The human toll is tragic. Carlyle Group Inc. as well as supporting our portfolio in every way we can and ensuring that we can continue to deliver for investors and all stakeholders by mobilizing our extensive global platform and every resource at our disposal. Carlyle was in a position of strength leading into this crisis which has provided us great stability. The pandemic has shocked the world over the past four months but we've been able to mobilize quickly and decisively thanks to the great work and continuity across our entire global platform. Q and I are incredibly proud of the Carlyle team. We have found an even greater level of both collaboration and commitment and compassion and service. The first quarter of 2020 started off exceptionally well, with our 2019 momentum continuing. At the firm level, our outlook for the year was developing as envisioned, with solid earnings growth, substantial dry powder from our $110 billion fundraising campaign, our successful transition to a C-Corp, and a sturdy balance sheet. In addition, our portfolios were in good shape and performing well with strong investment and exit pipelines. In the first quarter, we were able to execute several IPOs, secondary trades, and announce transactions. Carlisle was sturdy and steady going into the storm. Upon the onset of the crisis in January, our China team took decisive action, which set the precedent for our other regions and accelerated our decision-making process in Europe and the United States. In March, we quickly moved all of our U.S. and Europe employees to work remotely. We then activated our business continuity plans and to date have seen near-perfect execution. Early on, Carlyle's investment teams were active. Stress testing every equity and credit position in our portfolio and making decisions for each asset based on varying levels of business disruption. And One Carlyle, our global resource platform, has been in action like never before, using all of our capabilities to provide support for our portfolio companies. We've also been leveraging many of the company's unique offerings, particularly in healthcare and technology, to help provide solutions to the most pressing issues, As many of our companies have also been out front in the fight against the virus. For example, PA Consulting has done great work coordinating efforts to source ventilators for patients in the UK. And most recently, Ortho Clinical Diagnostics announced breakthrough work to rapidly deploy antibody tests. With that said, it is clear that the next few months and quarters will be challenging. It is our view that the recovery will progress in fits and starts and will take longer than what we all would have hoped. With this in mind, we remain fully committed to our top priorities, but also to our strategy as long-term investors and partners to our portfolio companies and our LPs. We're planning for and preparing for a wide range of outcomes, and we do remain in a strong position with $74 billion of dry powder, A billion dollars of cash on our balance sheet and $525 million in capacity on our revolver, a global team and platform that are stronger than ever, and deep experience across Carlyle as we have previously operated successfully through economic, financial, and market crises. There's no doubt that we have much work to do, and I'll hand it over to Q to walk you through some of our thoughts for the future. I again want to reiterate that our leadership team is active and focused, Thank you, Glenn, and good morning, everyone. And let me echo our sentiment of gratitude towards our healthcare professionals and frontline workers serving our communities around the world.