Happy Friday. Here’s what we’ve got today…

• A look at Carlyle’s post-election sentiment

• Plus, Webster Equity Partners’ $5 billion exit

Carlyle’s outlook:

Carlyle Group's Q3 earnings call on Thursday offered an early look at investor sentiment after this week's U.S. elections.

The key takeaway, says Chief Executive Harvey Schwartz, is the benefit of a clear electoral resolution.

"Being past the election has removed market uncertainty, first and foremost," Schwartz said. Even more so for a race some feared might not have a conclusive result for days or even weeks.

"That creates a lot of uncertainty in CEO’s minds in how they think about strategy, how they think about committing capital, making decisions," said Schwartz.

"I spoke to a couple of our portfolio company CEOs yesterday," said John Redett, Carlyle’s CFO and head of corporate strategy. "The common theme was they feel like the removal of election uncertainty will elevate confidence levels.”

"Now, from a policy perspective, whether it's sustained or further cuts in the tax regime, whether it's a lighter regulatory touch, all these things will get translated in CEOs' minds, Boards, or portfolio companies, in really [building] confidence around the operating environment," Schwartz added.

Coupled with the start of rate cuts, exogenous factors now seem less worrisome. "The election certainty and the change in monetary policy are a powerful combination supporting economic growth and our business," says Schwartz.

The next potential hurdle is the economic and portfolio impact of new tariffs.

For now, it's wait-and-see at Carlyle. Schwartz cautioned against overreacting to policy changes: "It's very difficult for any firm to try and anticipate government policy," he said. "I think it would be a mistake to be changing strategy.”

Schwartz also thinks Carlyle is better positioned than most to manage potential trade policy issues. He believes the firm’s extensive Asia presence, particularly in Japan, provides a natural hedging against potential headwinds.

Internally, Carlyle's operational transformation under Schwartz is beginning to yield results.

The firm's corporate private equity portfolio posted an exceptionally strong quarter—the two largest U.S. buyout funds reported gains exceeding 7 percent each in the quarter, while its two largest Asia buyout funds gained 9 and 13 percent, respectively.

Average year-over-year portfolio company EBITDA growth of 15 percent suggests much of that performance can be attributed to strength in underlying fundamentals, rather than any change in multiples.

Fee-related earnings growth (36 percent) and FRE margins (up 1,000 basis points) are also positive, as is fundraising momentum. The $26 billion raised year-to-date is the firm’s second-strongest performance on record. There’s still some ground to cover to reach the $40 billion annual target, but Schwartz is confident on Q4 visibility: "The fourth quarter looks strong. We'll get in and around 40."

On the credit side of the business, the team shares general market enthusiasm around asset-backed finance. "It's multiples [in size] of direct lending. I think it's an enormous opportunity for the industry and for Carlyle," Redett said. "It will be a large driver of credit growth for us going forward."

Launched three years ago, Carlyle's asset-backed securities business has already grown to around $7 billion in assets under management. “It's very early days in the ABS space,” says Redett. “The pipeline continues to be one of the stronger pipelines we see across the platform."

Unlike some peers, strategic acquisitions are not a priority. Schwartz says the firm will continue to review inbound opportunities, but the focus is elsewhere. "We think we can get the best returns for our shareholders by investing into our business for organic growth," added Redett.

• Cencora (NYSE: COR) agreed to acquire Retina Consultants of America from Webster Equity Partners for $4.6 billion in upfront cash, plus up to $500 million in contingent consideration.

• GHO Capital Partners and Ampersand Capital Partners agreed to acquire Avid Bioservices, a biologics CDMO, for $1.1 billion.

• Advent International has hired Goldman Sachs and PJT Partners to explore the sale of Zentiva, a Czech-based generics and OTC manufacturer, which could be worth around €5 billion, per Bloomberg.

• Advent International, Clayton Dubilier & Rice, PAI Partners, and Apollo are considering bids for Reckitt Benckiser's homecare division, which includes brands like Air Wick and Vanish.

• Affinity Equity Partners is nearing a deal to acquire Indonesian gummy maker Yupi Indo Jelly Gum for around $1.2 billion, per the WSJ.

• BlackRock is in talks to purchase a minority stake in hedge fund Millennium Management, per the Financial Times.

• General Atlantic and Stripes led an $825 million tender offer for Vuori, a California-based activewear maker, at a $5.5 billion valuation.

• Qualys (Nasdaq: QLYS), a cybersecurity provider trading at a market value of around $5.7 billion, has engaged advisors to explore options after receiving inbound interest, per Bloomberg.

• Cogenuity Partners acquired United Safety & Survivability Corporation, a manufacturer of safety equipment, from Dubin Clark.

• Tempus AI acquired Ambry Genetics, a genetic testing company focused on hereditary cancer screening, for $600 million.

• Astorg agreed to acquire a majority stake in Redslim, a data management services provider.

• Blackstone agreed to acquire Retail Opportunity Investments Corp (Nasdaq: ROIC), a West Coast grocery-anchored shopping center operator, for $4 billion.

• Guidepost Growth Equity invested in Kaizen, a London-based provider of regulatory reporting software for financial institutions.

• Rise Broadband, a portfolio company of GI Partners, acquired broadband network assets in Missouri from MidAtlanticBroadband.

• Stengel Hill Architecture, a portfolio company of Godspeed Capital Management, acquired Mason Blau & Associates, a Clearwater, Florida-based architecture firm.

• TA Associates launched a public takeover offer for Nexus AG, a German e-health software provider, at a valuation of €1.21 billion.

• Carlson Private Capital Partners invested in Quantum Design International, a manufacturer of instrumentation for material characterization.

• American Industrial Partners acquired Grain & Protein Technologies, AGCO Corporation’s (NYSE: AGCO) grain storage, seed processing, and livestock equipment business.

• Otto Bremer Trust has hired advisers to consider strategic options for Bremer Financial Corp, a St. Paul-based lender with $16.2 billion in assets, per Bloomberg.

• Fulwell 73 and SpringHill Company, LeBron James' media company backed by RedBird Capital Partners, are in merger talks to combine their unscripted production businesses.

• Teledyne Technologies agreed to acquire select aerospace and defense electronics assets from Excelitas Technologies, a portfolio company of AEA Investors, for $710 million in cash.

• Savillex, a portfolio company of Thompson Street Capital Partners, acquired Optimum Processing, a manufacturer of single-use bioprocessing systems for life sciences.

• Choice Health at Home, backed by Coltala Holdings and Trive Capital, acquired Accentra Home Health and Hospice, an Oklahoma-based seven-location provider of home health and hospice services.

Tech, Vertical SaaS, & Misc. Enterprise

• DeepRoute.ai, a Shenzhen-based autonomous driving startup, raised $100 million in Series C1 funding from Great Wall Motor.

• Glint Solar, a Norwegian SaaS for solar project site evaluation, raised $8 million in Series A funding led by Smedvig Ventures, with participation from Momentum, Futurum Ventures, and Antler.

• Siit, a Paris-based AI-powered service desk platform for IT operations, raised $5 million in seed funding co-led by StageOne Ventures and Seventure Partners.

• Thesys, a developer of AI-driven adaptive user interfaces, raised $4 million in seed funding led by Together Fund, with participation from 8VC.

• Embed Security, an AI-powered agentic security platform provider, raised $6 million dollars in early-stage funding led by Paladin Capital Group.

Fintech

• Marosa, a Spanish VAT compliance platform, raised €12 million in new funding from Aquiline Capital Partners.

• BlackRock is preparing a $1.3 billion private credit continuation fund that will package around 300 first-lien loan positions.

• WovenEarth Ventures is raising $300 million for its second European climate-focused fund-of-funds.

• Healthier Capital, led by former One Medical CEO Amir Dan Rubin, is raising $200 million for its debut venture fund focused on healthcare innovation.

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