The Carlyle Group Inc.

press star 11 again. As a reminder, this call may be recorded. I would like to turn the call over to Daniel Harris, head of investor relations. Please go ahead.

Thank you, Michelle. Good morning and welcome to Carlisle's fourth quarter and full year 2025 earnings call. With me on the call this morning is our chief executive officer, Harvey Schwartz, and our 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 to differ materially from those indicated. Carlisle assumes no obligation to update any forward-looking statements at any time. In order to ensure participation by everyone on the call 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. 2025 was a record year for Carlyle. We significantly outperformed the targets we identified at the beginning of the year. We delivered record fee-related earnings up 12% year over year, materially exceeding our original forecast. We also had record FRE margins, 47%. We generated $54 billion of inflows Again, significantly outperforming our original $40 billion target. Engagement across the global franchise and all client segments from institutional to wealth continued to build throughout the year. Transaction fees were a record $225 million, up almost 40% year over year. We closed out the year with record assets under management of $477 billion, driven by strong investment performance and robust fundraising across the platform. Importantly, our 2025 results demonstrate the breadth, the depth, and the durability of our global business. Before I walk through our results in more detail, let me just briefly comment on the macro environment. Looking back at 2025, despite concerns around shifting geopolitical dynamics, the market proved to be resilient. M&A and IPO activity accelerated as market sentiment improved. 2025 ended with credit spreads near all time types, and equity markets at all-time highs. Over the last several years, a lot has been written about low levels of monetizations in the private equity industry. Carlyle has proven to be an exception to that narrative. Since 2024, we have been the number one private equity sponsor globally by IPO proceeds, generating roughly $10 billion of IPO issuance over the past two years. This number is more than any other firm in our industry, $10 billion. The most recent example of this is Medline. The IPO raised more than $7 billion in an equity valuation of $49 billion, a milestone transaction for Karloff and the broader market. This was the largest sponsor-backed IPO of all time, the largest healthcare IPO ever, and the largest IPO of 2025. The transaction was meaningfully oversubscribed, and today's trading more than 50% above its IPO price. Medline is a great example of the types of businesses our teams look to invest in, a market leader in their sector with a great management team. Medline has an exceptional track record with more than 50 years of consecutive sales growth since inception, and Carlisle is quite proud to have partnered with Medline's founders and leadership team over the last four years. But it's not just Medline. Standard Aero marked the second largest sponsor-backed U.S. IPO in 2024 and has appreciated approximately 30% since its public offering. We listed two companies in Japan, Arai Breweries and Regaku. Regaku was the largest ever sponsor-backed IPO in Japan, and we IPO'd Hexaware, which was the largest ever sponsor-backed IPO in India and the largest technology services IPO globally in more than a decade. While it's clearly worth noting that we've been industry leader in IPOs over the past two years, what's equally important is the breadth and diversity of these offerings across geographies and sectors. More broadly across our GP portfolio, activity remained quite strong. We returned $18 billion of capital to investors in 2025 and $18 billion in 2024. Our teams remain highly focused on returning capital to our investors, and we expect exit momentum to continue into 2026. All of this has contributed to our strong performance across our corporate private equity funds. Our latest vintage U.S. buyout fund appreciated 17% for the year. Our third and fourth vintage Japan buyout funds appreciated 60% and 30% respectively, and our most recent European technology fund was up 20%. Moving on to Carlyle Apple Invest. 2025 was a record year of growth, reinforcing Alpha Invest's position as one of the most influential private market solutions platforms globally. Alpha Invest returned over $10 billion to our investors and invested a record $14 billion, highlighting both the breadth of the market opportunity and the scale at which the platform is operating. We closed our largest ever secondary strategy at $20 billion, continuing to grow our co-investment platform and expanded our portfolio finance strategies. Demand for secondary solutions remains strong as investors seek liquidity and portfolio optimization. In Carlyle, Alpha Invest continues to be a meaningful contributor to FRE growth and platform differentiation. In global credit and insurance, we continue to see strong momentum across the platform. Direct lending had a record quarter of originations. We continue to grow and invest in the platform, adding key leaders and talent. We've added a new head of direct lending and senior origination professionals, enhancing origination and integration across our private credit strategies. Our performance continues to be strong, with realized losses across the portfolio running at an average of just 10 basis points per year over the past decade. Additionally, we continue our leadership position in CLOs. Amidst a record level of industry-wide issuance, Harlow priced a record 39 CLOs last year. Carlisle was the most active CLO manager for U.S. activity, and CLO inflows of $7 billion in 2025 were up almost 20% from the prior year. I also want to touch on the momentum we have in global wealth. In 2025, we continue to see significant progress in our strategic approach to global wealth. We had another year of record inflows, almost doubling evergreen wealth AUM year over year. Demand was strong across our evergreen suite. We saw a launch to CPAP. our private equity solution for individual investors, in the U.S. with a select group of leading RIAs. With the launch of CPEP, we've established our three key solutions across each of our businesses, with options to access title offer credit, secondaries, and now PE. This is all the result of the strategic investment that we started to make three years ago. We continue to invest in resources across the entire wealth spectrum, including massive fluent retail and retirement. We expanded our wealth organization meaningfully this year, growing headcount by approximately 50%, and added specialized capabilities to support sustained growth across channels. We hired a head of retirement solutions, a new role at Carlyle, reinforcing our conviction that wealth and retirement are long-term growth engines for the firm. In conclusion, we entered 2026 with strong momentum. In 2025, we delivered on our strategy in a very concrete way, growing fee-related earnings, significantly exceeding our inflows target, deploying a record amount of capital, turning money to investors, and positioning our portfolios to take advantage of a more functional exit environment. We will continue to build on the strategy and foundation we've established over the last several years. Our focus remains on investment performance, disciplined capital allocation, and delivering long-term value for our global investors and shareholders. We also announced that we are hosting a shareholder update at the end of February. Look forward to seeing you there. At the event, we will share multi-year financial targets, more insights into the strategic direction of the firm, and how we will continue to build on our success. With that, let me turn the call over to Justin.