The Carlyle Group Inc.

Ladies and gentlemen, thank you for standing by. Welcome to Carlisle Group third quarter 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you would need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. And to withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Daniel Harris, head of public investor relations. Please go ahead.

Thank you, Michelle. Good morning and happy Halloween and welcome to Carlisle's third quarter 2025 earnings call. With me on the call this morning is our chief executive officer, Harvey Schwartz, chief financial officer and head of corporate strategy, John Redette, and incoming chief financial officer, Justin Plouffe. Earlier this morning, we issued a press release and a detailed earnings presentation, which is available on our investor relations website. This call is being webcast and a replay will be available. 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 reconciliation of these measures to GAAP in our earnings release 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 of our annual report on Form 10-K that could cause actual results that differ materially from those indicated. Carlyle assumes no obligation to update any forward-looking statements at any time. In order to ensure participation by all those on the line today, please limit yourself to one question and return to the queue for any additional follow-ups. And with that, let me turn the call over to our Chief Executive Officer, Harvey Schwartz.

Thanks, Dan. Good morning, everyone, and thank you for joining us. We delivered another strong quarter of results as we continue to execute our strategic growth plan. For the third quarter, we delivered FRE of $312 million and now have generated $946 million year-to-date, up 16%. Record AUM of $474 billion, up 7% year-to-date. Organic inflows of $17 billion in the quarter and nearly $60 billion over the past 12 months, with significant capital coming from credit, secondaries, and global wealth. With this momentum, we feel confident about exceeding the financial targets we updated last quarter, which included full-year FRE growth of approximately 10%, up from our prior outlook of 6%, and full year inflows of $50 billion compared to our prior outlook of $40 billion. Before I dive into more specifics of the quarter, I'd like to address the macro environment. As we look across markets today, this remains a somewhat complex but quite resilient environment. While the markets have been impacted by ongoing headlines related to policy shifts and to your politics, the underlying health of the global economy continues to be strong. Inflation has moderated, Balance sheets are healthy, and overall, consumers are still spending. With official government data delayed by the shutdown, earlier this month we released Carlisle proprietary U.S. economic data. These indicators are derived from our portfolio of nearly 300 operating companies and more than 700,000 employees. These insights provide one of the few real-time views into the economy. Steady EBITDA growth, continued investment in technology and AI infrastructure, and resilient consumer demands. Turning to credit markets, there's clearly been a lot of focus here over the past several weeks. To date, our own market and portfolio data are not signaling any broad deterioration in overall credit quality or systemic risk. Consistent with the economic data I just walked through, fundamentals remain pretty solid, and credit events have been idiosyncratic. Of course, the credit cycle is evolving as it should, repricing where necessary, but again, not clashing broad stress. Capital markets activity has meaningfully accelerated. Announced M&A volume was up more than 40% year-over-year in the third quarter. IPO volumes are up 60% year-to-date with increased activity during the quarter. Now turning to our global private equity business, we've capitalized on improving transaction environment, returning capital to our limited partners. Over the past year, we have returned $19 billion in capital to investors in global private equity. 150% of the industry average. Note, this does not include $5 billion of signed transactions. Our momentum internationally continues. In Japan, we announced a successful IPO of Orion Breweries. This marks a positive indicator for the broader IPO market and is another important milestone for our team in the region. In Europe, we recently completed the sale of Calistone and announced the sale of HSO. Lastly, in private equity, we recently announced the 7.7 billion euro carve-out of BASF's coatings business, leveraging our global industrial platform and deep carve-out expertise. In the past 20 years, Carlyle has done 19 industrial corporate carve-outs with an average IRR of 25%, another great example of the neat operating skill set we bring to our investors. In Carlisle Alpha Invest, the team continues to deliver exceptional growth. We have already up more than 80% year-to-date. Last month, we closed our largest ever secondaries fund, $20 billion, further scaling the business. We recently closed a $1.25 billion publicly rated GP-led collateralized fund obligation, the largest of its kind to date. This underscores Carlisle's leadership and innovation within a rapidly expanding segment of the marketplace. We also recently completed a $550 million Credit Secondary's continuation vehicle, reflecting the evolution of our business across newer asset classes. Carlisle OpInvest is a market leader at the forefront of an industry with strong secular and cyclical tailwinds. In global credit, our platform continues to scale. In order, inflows into our asset-backed finance strategy were almost $2 billion, highlighting the continued demand for private investment-grade assets. Our strategic approach to insurance solutions continues to pay dividends across all aspects of our investment management capabilities, including our partnership with Fortitude RE and with our third-party insurance clients. Justin will get into more details about Fortitude RE, but insurance remains a key driver of growth for Carlyle, and we continue to see momentum across the platform. Finally, moving on to global wealth, our momentum remains strong. When I first joined Carlyle, we were attracting about $300 million per quarter in evergreen wealth inflows. Today, we're running at 10 times that level at $3 billion in inflows, our best fundraising quarter in global wealth ever. To be successful across all aspects of wealth, retail, and retirement, you need experience, scale, brand recognition, and diversification. Part of our strategy is partnering with extraordinary brands, like our recent announcement with Oracle Red Bull Racing. This marks the first-ever private markets partnership in Formula One and aligns directly with our long-term global wealth strategy to reach new clients and deepen engagement in key markets. Over the last two and a half years, we mobilized quickly to capitalize on the growth of private markets and retail. We continue to invest heavily into the business, adding resources and platform partnerships to drive growth. To wrap things up, we are well on our way to exceeding our financial targets for this year and have very strong momentum heading into 2026. With that, let me turn things over to Justin.