Carlyle Group Inc (NASDAQ:CG) is entering a new fundraising cycle as institutional investors continue to allocate capital toward private equity, private credit and secondary strategies, with the alternative asset manager reporting record assets under management and strong inflows across its platform.
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The firm raised nearly $17 billion during the second quarter, bringing total inflows over the past 12 months to $56 billion, up 10% from the prior year. Assets under management reached a record $485 billion, while Carlyle said it has already attracted $30 billion of organic inflows in the first half of 2026.
The fundraising momentum comes as private markets firms look to restart capital formation after a slower fundraising environment in recent years, particularly for traditional buyout funds.
Private Equity Fundraising Enters New Cycle
Carlyle executives said the firm expects a broad slate of strategies to come to market over the next several years, including private equity, secondaries, portfolio finance and credit vehicles.
"We’re entering the supercycle in the second half," CEO Harvey Schwartz said, noting that the firm had not yet fully launched its flagship fundraising efforts.
In private equity, Carlyle secured a $5 billion first close for its next U.S. buyout fund and launched a dedicated defense and industrial platform focused on companies benefiting from increased spending on national security, infrastructure and reshoring.
The firm also highlighted improving exit conditions after a prolonged slowdown in private equity realizations. Carlyle returned nearly $7 billion to investors during the quarter and more than $37 billion over the past year, supported by exits across buyout, real estate, aviation and credit strategies.
Its U.S. buyout strategy returned 23% of fair value to investors over the past 12 months, according to the company.
"Realizations are very difficult to predict quarter to quarter," CFO Justin Plouffe said. "But the pace of realizations that we’ve had across the firm is really a market-leading pace."
Carlyle deployed $14 billion during the quarter, including investments in industrials, financial services and international companies. Executives said continued deal activity could provide additional opportunities for capital markets revenue, which reached a record $111 million during the quarter.
Private Credit Growth Continues Despite Market Scrutiny
Private credit remained one of Carlyle’s largest growth areas, with global credit attracting $6 billion in quarterly inflows and $25 billion over the last year. The platform ended the quarter with $211 billion in assets under management.
Carlyle deployed $7 billion through its credit strategies during the quarter, including direct lending, liquid credit and opportunistic credit.
Executives said the firm has continued to see strong investor demand for private credit despite growing scrutiny of the asset class following concerns around portfolio company stress and valuation pressures.
"Credit quality across the portfolio remains strong," Plouffe said. "The diversification we built continues to position this business to perform through market cycles."
Secondaries Market Shifts Toward Portfolio Solutions
The firm’s secondary market business also continued to benefit from demand for liquidity solutions. Carlyle AlpInvest reached $112 billion in assets under management, driven by secondary transactions and portfolio finance strategies.
Executives said the secondaries market is shifting beyond traditional fund interests toward broader portfolio management solutions as limited partners and general partners seek more flexibility.
"If you went back several years, it was really about the secondary business," Schwartz said. "Now our dialogue around the world with GPs and LPs is really about portfolio repositioning and how to optimize portfolios."
Carlyle is also expanding efforts to reach individual investors through private market wealth products. The firm said assets in its evergreen wealth strategies reached $20 billion, up more than 60% year over year.
Executives said access to private markets through retirement plans and wealth platforms remains a longer-term opportunity rather than an immediate revenue driver.
As private markets firms compete for investor capital, Carlyle said macro themes including defense spending, energy security, industrial investment and artificial intelligence infrastructure are creating new areas for private capital deployment.
The company’s executives pointed to those trends as drivers of future fundraising demand, while investors continue to watch whether strong capital formation can translate into higher investment returns and realizations across private markets.
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