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Financial research note / conference summary
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Summary
This document is a Bank of America Merrill Lynch research note from the '2016 Future of Financials Conference' held on November 17, 2016. It summarizes a presentation by Glenn Youngkin, then-President and COO of Carlyle Group, covering investor sentiment, the company's financial outlook, and commentary on the post-election economic environment. Despite the user prompt, this document contains no discernible information, names, or entities related to Jeffrey Epstein.
People (1)
| Name | Role | Context |
|---|---|---|
| Glenn Youngkin | President and Chief Operating Officer |
Presented on behalf of Carlyle Group (CG) at the 2016 Future of Financials Conference. He provided a positive outlook...
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Organizations (3)
| Name | Type | Context |
|---|---|---|
| Carlyle Group (CG) |
The subject of the financial analysis and presentation.
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| Bank of America Merrill Lynch |
The author and source of the research document.
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| Congress |
Mentioned in the context of a 'universal pro-business outlook' following the election.
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Timeline (3 events)
2016-11-17
Glenn Youngkin presented for Carlyle Group at the 2016 Future of Financials Conference.
2016 Future of Financials Conference
November 2016
The US election, the results of which are mentioned as having changed the economic outlook and provided 'more wind in the sails' for CG's infrastructure fund.
United States
Relationships (1)
The document identifies Glenn Youngkin as the 'President and Chief Operating Officer' of Carlyle Group.
Key Quotes (1)
"What would get you more interested in investing in CG stock?"Source
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Quote #1
Full Extracted Text
Complete text extracted from the document (2,496 characters)
Carlyle Group (CG), C-2-8, Neutral
Glenn Youngkin, President and Chief Operating Officer, presented for CG. Overall, Mr. Youngkin is positive on the economic/market backdrop and on CG's ability to generate cash carry relatively consistently over time given the firm's diversity of funds.
When asked "What would get you more interested in investing in CG stock?" most investors would like to see an increased float and reduced complexity (40%), followed closely by rising fee related earnings (30%). Investors are also interested in seeing increased visibility on the distribution (15%) and increased contribution from RA and GMS segments (15%).
Chart 62: What would get you more interested in investing in CG stock?
45%
40%
40%
35%
30%
30%
25%
20%
15%
15%
15%
10%
5%
0%
Rising fee related earnings
Increased visibility on the distribution
Increased contribution from RA and GMS segments
Increased float and reduced complexity
40%
40%
35%
30%
30%
25%
20%
15%
15%
15%
10%
5%
0%
Rising fee related earnings
Increased visibility on the distribution
Increased contribution from RA and GMS segments
Increased float and reduced complexity
Source: BofA Merrill Lynch Global Research
If comprehensive tax reform includes an elimination of carried interest tax, potentially moving to an ordinary income rate, it could have some impact to after tax unitholder returns. However, Glenn thinks it is very early to speculate on any changes and expects tax changes to likely be comprehensive.
Glenn sees the potential for a strong push in infrastructure, along with tax change, defense spending, and the border will get a lot of attention along with international trade. Three main conclusions: 1) First time in a long time that there is a universal pro-business outlook across congress and the presidential office; 2) Unclear today what is going to be enacted, there is optimism but uncertainty; and 3) CG is not going to make meaningful changes one way or another based on speculation. CG launched its latest infrastructure fund in September, and the election results are more wind in the sails.
CG has multiple funds, each with its own economic engine. That makes the cash flow profile more stable than other firms. Management believes that a discounted valuation in the stock is driven more by fear of a recession vs. lower FRE. Glenn thinks that outlook has changed with the election. The economy may be going into extra innings now.
The investment environment hasn't changed materially in last few weeks - it continues to be tough. Global growth will continue to be muted, and despite the
Bank of America
Merrill Lynch
Merrill Lynch
2016 Future of Financials Conference | 17 November 2016
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