Patrick Davitt's questions to Carlyle Group Inc (CG) leadership • Q1 2025
Question
In a follow-up, Patrick Davitt asked about the specific triggers for the CP VII fund to begin generating cash carry and whether the IRR needed to surpass a certain threshold, like 8%, for that to occur.
Answer
CFO John Redett explained that while it is difficult to predict the exact timing, the fund (CP VII) is 'well on that path' to generating carry. He cited the fund's improving performance and a 'heavy' pipeline of realization activity as key factors, estimating it would likely reach full carry status at some point within the next 12 months.