Carlyle at BMO Capital Markets 2026 Financials Conference: fundraising push

On November 9, 2026, Carlyle (CG) shared its strategic plan at the BMO Capital Markets 2026 Financials Conference. Co-president John Redett highlighted a growth strategy centered on higher realizations, new fundraising products, and deeper use of its AlpInvest platform. Carlyle is predicted to achieve a fundraising "super cycle," even as some older funds require improvement.

The firm generates about 18% net asset value in realizations globally, compared to an industry average of 12%, and over 20% in the U.S. Carlyle targets $200 billion in commitments over the next three years across various funds, including buyout, defense, energy, secondaries, credit, and wealth products.

Redett reported a record FRE (fee-related earnings) margin of 47% for Carlyle, which could reach above 50% by 2028. Fee-related earnings have increased by more than 50% since he became co-president in January 2024. Carlyle avoids aggressive cost cutting in favor of growth. The firm is returning about 18% of NAV in realizations globally, and over 20% in the U.S., reflecting disciplined portfolio construction and a deliberate choice not to focus on one sector.

Redett discussed fund performance across older and newer vintages, noting that Carlyle Partners VII is underperforming but still achievable. Carlyle Partners VIII is 75% invested and has no concerning portfolio companies. The Potomac SPV structure secured $5 billion in commitments for Carlyle Partners IX, providing liquidity to earlier vintages.

Carlyle's investment approach favors sectors where it has extensive experience and attractive market conditions. The firm focuses on defense, energy, healthcare, financial services, and industrials, with over 90 industrial carve-outs announced, accelerating in Europe, the U.S., and especially Japan. Two carve-outs in Japan occurred in 2024. Carlyle sees comparable growth rates in Europe to the U.S., excluding AI capital spending.

The firm has implemented a new management team in Europe, bringing in former Carlyle employees and outside hires from competitors. Carlyle's 40-year history in defense makes it the only global private equity firm with a dedicated defense capability. The firm is launching its first dedicated defense industrial fund, emphasizing defense, cyber, shipbuilding, kinetic weapons, data protection, and dual-use industrial capacity.

Carlyle is raising a global energy fund, catering to energy independence and supply chain resilience. CEO Harvey Schwartz has pushed transaction fee revenue, which could reach multiples of current levels. Carlyle's ABF insurance business has a strong fee generation model, with growth expected in 2027 and 2028.