Carlyle CFO Plouffe on M&A Market, Private Credit and AI

Summary

Carlyle CFO Justin Plouffe discusses the firm's strong exit environment, the launch of a defense and reindustrialization platform, private credit resilience, and AI as a transformative theme across industries rather than just a pure-play opportunity. He also comments on the bifurcated credit market, with software spreads wider but recent default fears proving overblown.

• Carlyle reports highest quarterly earnings in nearly four years with record $97 billion available to invest.
• Exits are broad-based across Japan, Europe tech, and US real estate; capital markets remain open.
• A new defense and reindustrialization platform has been launched, targeting national security and data infrastructure.
• AI is seen as a transformative technology that will create winners among companies that apply it, not just pure-play AI firms.
• Private credit portfolios are performing well with no spike in defaults, and strong returns should attract more investor demand.
• Credit markets are bifurcated: spreads outside software remain tight and deals are getting done, while software credit is more difficult.
• Carlyle plans to grow organically, viewing inorganic M&A as difficult, and remains balance-sheet light.