10-K – 2026-02-27 – cg-20251231.htm

Increase in Realized net performance revenues

25.5

Increase in Realized principal investment income

13.2

Increase in Net interest

(4.0)

Total increase

103.7

Distributable Earnings, December 31, 2025

$ 481.0

Realized net performance revenues. Realized net performance revenues increased $25.5 million for the year ended
December 31, 2025 as compared to 2024 , primarily due to an increase in realized net performance revenues generated by
CCOF II.
Realized principal investment income. Realized principal investment income increased $13.2 million for the year
ended December 31, 2025 as compared to 2024 , primarily attributable to an increase in dividend income of $23.6 million from
our equity method investment in Carlyle FRL , partially offset by lower realized principal investment income from our CLOs.
Fee Related Earnings
Fee Related Earnings increased $69.0 million for the year ended December 31, 2025 as compared to 2024 . The
following table provides the components of the changes in Fee Related Earnings for the year ended December 31, 2025 :

Year Ended
December 31,

2025 v. 2024

(Dollars in millions)

Fee Related Earnings, December 31, 2024

$ 332.5

Increases (Decreases):

Increase in Fee revenues

103.9

Increase in Cash-based compensation and benefits

(31.8)

Decrease in General, administrative and other indirect expenses

0.1

  All other changes

(3.2)

Total increase

69.0

Fee Related Earnings, December 31, 2025

$ 401.5

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Fee Revenues. Fee revenues increased $103.9 million for the year ended December 31, 2025 as compared to 2024 , due
to the following:

Year Ended
December 31,

2025 v. 2024

(Dollars in millions)

Higher Fund management fees

$ 50.8

Higher Portfolio advisory and transaction fees, net and other

47.0

Higher Fee related performance revenues

6.1

Total increase in Fee revenues

$ 103.9

The increase in F und management fees for the year ended December 31, 2025 as compared to 2024 was primarily
driven by an increase in management fees from our direct lending business, CTAC, and CCOF III . The increase in Fund
management fees was also impacted by the receipt of approximately $19 million of catch-up subordinated management fees in
certain aviation funds during the year ended December 31, 2025, due in part to the collection of insurance proceeds and in part
due to the sale of collateral in those vehicles. These increases were partially offset by lower management fees from our liquid
credit business .
The increase in Portfolio advisory and transaction fees, net, and other fees for the year ended December 31, 2025 as
compared to 2024 was primarily driven by an increase in capital markets fees. The recognition of capital markets fees can be
volatile as they are primarily generated by investment activity. See “—Trends Affecting Our Business” for further discussion
on our investment activity and broader market trends.
Cash-based compensation and benefits expense. Cash-based compensation and benefits expense increased $31.8
million for the year ended December 31, 2025 as compared to 2024 , primarily due to an increase in accrued bonuses related to
capital markets fees, higher headcount, and higher fee related performance revenue compensation , partially offset by an
increase in the portion of compensation being derived from Realized performance revenues related compensation .
General, administrative and other indirect expenses. General, administrative and other indirect expenses decreased
$0.1 million for the year ended December 31, 2025 as compared to 2024 , primarily due to a decrease in external fundraising
costs, offset by an increase in other operating costs such as IT and travel-related costs.

Fee-earning AUM 
Fee-earning AUM is presented below for each period together with the components of change during each respective
period.
The table below breaks out Fee-earning AUM by its respective components at each period.

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Global Credit

Components of Fee-earning AUM (1)

Fee-earning AUM based on capital commitments

$ 2,504

$ 2,467

Fee-earning AUM based on invested capital

21,784

19,604

Fee-earning AUM based on collateral balances, at par

44,455

45,890

Fee-earning AUM based on net asset value

4,185

3,091

Fee-earning AUM based on fair value and other (2)

96,532

83,134

Total Fee-earning AUM

$ 169,460

$ 154,186

Annualized Management Fee Rate (3)

0.36 %

0.36 %

(1) For additional information concerning the components of Fee-earning AUM, see “—Key Financial Measures—Operating Metrics.”
(2) Includes the fair value of Fortitude’s general account assets covered by the strategic advisory services agreement and funds with fees
based on gross asset value.
(3) Represents annualized fund management fees divided by the average of the beginning of year and each quarter end’s Fee-earning AUM
in the reporting period. Catch-up management fees were excluded in the calculation of the annualized fund management fees.

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The table below provides the period to period rollforward of Fee-earning AUM.

 

Year Ended Ended December 31,

 

2025

2024

 

(Dollars in millions)

Global Credit

Fee-earning AUM Rollforward

Balance, Beginning of Period

$ 154,186

$ 155,238

Inflows (1)

26,806

15,389

Outflows (including realizations) (2)

(13,863)

(12,520)

Market Activity & Other (3)

1,212

(3,290)

Foreign Exchange (4)

1,119

(631)

Balance, End of Period

$ 169,460

$ 154,186

(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based on
commitments were activated during the period, the fee-earning commitments invested in vehicles for which management fees are based
on invested capital, the fee-earning collateral balance of new CLO issuances, reinsurance and other transactions at Fortitude, and gross
subscriptions in our vehicles for which management fees are based on net asset value.
(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair
value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has
expired during the period, reductions for funds that are no longer calling for fees, gross redemptions in our open-end products, and
outflows from our liquid credit products. Realizations for funds earning management fees based on commitments during the period do
not affect Fee-earning AUM.
(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in funds or vehicles based on the
lower of cost or fair value or net asset value, activity of funds with fees based on gross asset value, and changes in the fair value of
Fortitude’s general account assets covered by the strategic advisory services agreement.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Fee-earning AUM was $169.5 billion at December 31, 2025 , an increase of 10% compared to $154.2 billion at
December 31, 2024 . The net increase was due to:
• Inflows of $26.8 billion , which were driven by activity at Fortitude and capital deployment across the platform,
including the closing of seven U.S. CLOs and two European CLOs .
Offsetting these increases were:
• Outflows of $13.9 billion , which were driven by outflows from our liquid credit products and realizations in our
opportunistic credit and aviation funds.
Total AUM
The table below provides the period to period rollforward of Total AUM.

 

Year Ended December 31,

 

2025

2024

 

(Dollars in millions)

Global Credit

Total AUM Rollforward

Balance, Beginning of Period

$ 192,374

$ 187,826

Inflows (1)

28,254

17,274

Outflows (including realizations) (2)

(15,996)

(13,172)

Market Activity & Other (3)

5,481

1,110

Foreign Exchange (4)

1,215

(664)

Balance, End of Period

$ 211,328

$ 192,374

(1) Inflows generally reflects the impact of gross fundraising, as well as reinsurance and other transactions at Fortitude during the period.
For funds or vehicles denominated in foreign currencies, this reflects translation at the average quarterly rate.

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(2) Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and separately
managed accounts, gross redemptions in our open-end products, outflows from our liquid credit products, and the expiration of available
capital.
(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related
co-investment vehicles, and separately managed accounts, as well as the impact of fees, expenses and non-investment income, change in
gross asset value for our business development companies, changes in the fair value of Fortitude’s general account assets covered by the
strategic advisory services agreement, and other changes in AUM.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Total AUM was $211.3 billion at December 31, 2025 , an increase of 10% compared to $192.4 billion at December 31,
2024 . The net increase was due to:
• Inflows of $28.3 billion , which were driven by the closing of seven U.S. CLOs and two European CLOs, as well as
capital raised in our asset-backed finance, cross-platform credit, aviation, and opportunistic credit products, and
more than $9 billion of inflows at Fortitude; and
• Positive market activity of $5.5 billion , which primarily reflected an increase in the fair value of our direct lending,
cross-platform credit, opportunistic credit, and asset-backed finance products, as well as an increase in the fair value
of assets covered by the Fortitude strategic advisory services agreement.
Offsetting these increases were:
• Outflows of $16.0 billion for the period, which were primarily in our liquid credit products, with additional activity
reflecting realizations across the platform, notably in our asset-backed finance and aviation products.
Fund Performance Metrics
Fund performance information for certain of our Global Credit funds is included throughout this discussion and
analysis to facilitate an understanding of our results of operations for the periods presented. The fund return information
reflected in this discussion and analysis is not indicative of the performance of The Carlyle Group Inc. and is also not
necessarily indicative of the future performance of any particular fund. An investment in The Carlyle Group Inc. is not an
investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds will
achieve similar returns. See Part I, Item 1A “Risk Factors—Risks Related to Our Business Operations—Risks Related to the
Assets We Manage—The historical returns attributable to our funds, including those presented in this Annual Report on Form
10-K, should not be considered as indicative of the future results of our funds or of our future results or of any returns expected
on an investment in our common stock.”
The following table reflects the performance of our significant carry funds in our Global Credit business. See Part I,
Item 1 “Business—Our Global Investment Offerings” for a legend of the fund acronyms listed below.

(Dollars in millions)

 

TOTAL INVESTMENTS

 

As of December 31, 2025

Fund (Fee Initiation Date/Step-down Date) (11)

Committed
Capital (12)

Cumulative
Invested 
Capital (1)

Percent
Invested

Realized
Value (2)

Remaining
Fair Value (3)

MOIC
(4)

Gross IRR
(5)(8)

Net IRR
(6)(8)

Net Accrued
Carry/(Giveback)
(7)

Global Credit Carry Funds

CCOF III - Levered (Feb 2023 / Oct 2028)

$ 4,678

$ 3,976

85%

$ 784

$ 3,882

1.2x

27%

17%

$ 23

CCOF II (Nov 2020 / Mar 2026)

$ 4,430

$ 5,880

133%

$ 4,056

$ 4,125

1.4x

14%

10%

$ 109

CCOF I (Nov 2017 / Sep 2022)

$ 2,373

$ 3,514

148%

$ 3,890

$ 1,230

1.5x

16%

12%

$ 30

CSP IV (Apr 2016 / Dec 2020)

$ 2,500

$ 2,500

100%

$ 1,755

$ 1,786

1.4x

10%

5%

$ —

CICF II (Mar 2024 / Dec 2029)

$ 1,379

$ 310

22%

$ 57

$ 280

1.1x

NM

NM

$ —

SASOF III (Nov 2014 / n/a)

$ 833

$ 991

119%

$ 1,277

$ 84

1.4x

19%

12%

$ 6

All Other Active Funds & Vehicles (9)

$ 12,836

n/a

$ 5,476

$ 10,662

1.3x

11%

9%

$ 95

Fully Realized Funds & Vehicles (10)(13)

$ 9,698

n/a

$ 12,156

$ 32

1.3x

9%

4%

$ —

TOTAL GLOBAL CREDIT CARRY FUNDS

$ 39,705

n/a

$ 29,451

$ 22,081

1.3x

11%

7%

$ 263

(1) Represents the original cost of investments since the inception of the fund. For CSP III and CSP IV, reflects amounts
net of investment level recallable proceeds which is adjusted to reflect recyclability of invested capital for the purpose
of calculating the fund MOIC.
(2) Represents all realized proceeds since inception of the fund.

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(3) Represents remaining fair value, before management fees, expenses and carried interest, and may include remaining
escrow values for realized investments.
(4) Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried
interest, divided by cumulative invested capital.
(5) Gross Internal Rate of Return (“Gross IRR”) represents an annualized return on Limited Partner invested capital, based
on contributions, distributions and unrealized fair value as of the reporting date, before the impact of management fees,
partnership expenses and carried interest. For fund vintages 2017 and after, Gross IRR includes the impact of interest
expense related to the funding of investments on fund lines of credit. Gross IRR is calculated based on the timing of
Limited Partner cash flows, which may differ to varying degrees from the timing of actual investment cash flows for the
fund. Subtotal Gross IRR aggregations for multiple funds are calculated based on actual cash flow dates for each fund
and represent a theoretical time-weighted return for a Limited Partner who invested sequentially in each fund. 
(6) Net Internal Rate of Return (“Net IRR”) represents an annualized return on Limited Partner invested capital, based on
contributions, distributions and unrealized fair value as of the reporting date, after the impact of all management fees,
partnership expenses and carried interest, including current accruals. Net IRR is calculated based on the timing of
Limited Partner cash flows, which may differ to varying degrees from the timing of actual investment cash flows for the
fund. Fund level IRRs are based on aggregate Limited Partner cash flows, and this blended return may differ from that
of individual Limited Partners. As a result, certain funds may generate accrued performance revenues with a blended
Net IRR that is below the preferred return hurdle for that fund. Subtotal Net IRR aggregations for multiple funds are
calculated based on actual cash flow dates for each fund and represent a theoretical time-weighted return for a Limited
Partner who invested sequentially in each fund. 
(7) Represents the net accrued performance revenue balance/(giveback obligation) as of the current quarter end.
(8) For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time
since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is considered meaningful
but is negative as of reporting period end.
(9) Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and
stand-alone investments arranged by us: SASOF IV, SASOF V, CAPF VII, CICF, CAF, CALF, CCOF III - Unlevered,
and CCOF III PSV.
(10) Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and
certain other stand-alone investments arranged by us: CSP I, CSP II, CSP III, CEMOF I, CEMOF II, CSC, CMP I,
CMP II, SASOF II, and CASCOF.
(11) The fund step-down date represents the contractual step-down date under the respective fund agreements for funds on
which the fee basis step-down has not yet occurred. Funds without a listed Fee Initiation Date and Step-down Date have
not yet initiated fees.
(12) All amounts shown represent total capital commitments as of December 31, 2025. Certain of our recent vintage funds
are currently in fundraising and total capital commitments are subject to change. Committed capital for CCOF II
excludes $150 million in capital committed by a CCOF II investor to a side vehicle. The CCOF III platform, which
includes CCOF III - Levered, CCOF III - Unlevered, and CCOF III PSV, collectively has $5.7 billion of committed
capital.
(13) Funds are included when all investments have been realized. There may be remaining fair value and net accrued carry
where there are outstanding escrow balances or undistributed proceeds.

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Carlyle AlpInvest
The following table presents our results of operations for our Carlyle AlpInvest segment:

 

Year Ended December 31,

Change

 

2025

2024

$

%

 

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 457.7

$ 337.2

$ 120.5

36 %

Portfolio advisory and transaction fees, net and other

0.3

0.2

0.1

50 %

Fee related performance revenues

59.0

16.7

42.3

253 %

Total fund level fee revenues

517.0

354.1

162.9

46 %

Realized performance revenues

93.8

116.7

(22.9)

(20) %

Realized principal investment income

36.1

5.1

31.0

NM

Interest income

9.3

7.6

1.7

22 %

Total revenues

656.2

483.5

172.7

36 %

Segment Expenses

Compensation and benefits

Cash-based compensation and benefits

153.0

118.8

34.2

29 %

Realized performance revenues related compensation

79.8

100.3

(20.5)

(20) %

Total compensation and benefits

232.8

219.1

13.7

6 %

General, administrative, and other indirect expenses

82.0

55.1

26.9

49 %

Depreciation and amortization expense

8.2

6.8

1.4

21 %

Interest expense

13.8

11.6

2.2

19 %

Total expenses

336.8

292.6

44.2

15 %

(=) Distributable Earnings

$ 319.4

$ 190.9

$ 128.5

67 %

(-) Realized Net Performance Revenues

14.0

16.4

(2.4)

(15) %

(-) Realized Principal Investment Income

36.1

5.1

31.0

NM

(+) Net Interest

4.5

4.0

0.5

13 %

(=) Fee Related Earnings

$ 273.8

$ 173.4

$ 100.4

58 %

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Distributable Earnings
Distributable Earnings increased $128.5 million for the year ended December 31, 2025 as compared to 2024 . The
following table provides the components of the changes in Distributable Earnings for the year ended December 31, 2025 :

Year Ended December 31,

2025 v. 2024

(Dollars in millions)

Distributable Earnings, December 31, 2024

$ 190.9

Increases (decreases):

Increase in Fee related earnings

100.4

Decrease in Realized net performance revenues

(2.4)

Increase in Realized principal investment income

31.0

Increase in Net interest

(0.5)

Total increase

128.5

Distributable Earnings, December 31, 2025

$ 319.4

Realized principal investment income. Realized principal investment income increased $31.0 million for the year
ended December 31, 2025 as compared to 2024 , primarily driven by proceeds from our investment in the CAPM funds.
Fee Related Earnings
Fee Related Earnings increased $100.4 million for the year ended December 31, 2025 as compared to 2024 . The
following table provides the components of the changes in Fee Related Earnings for the year ended December 31, 2025 :

Year Ended December 31,

2025 v. 2024

(Dollars in millions)

Fee Related Earnings, December 31, 2024

$ 173.4

Increases (decreases):

Increase in Fee revenues

162.9

Increase in Cash-based compensation and benefits

(34.2)

Increase in General, administrative and other indirect expenses

(26.9)

  All other changes

(1.4)

Total increase

100.4

Fee Related Earnings, December 31, 2025

$ 273.8

Fee Revenues. Fee revenues increased $162.9 million for the year ended December 31, 2025 as compared to 2024 ,
primarily due to an increase in Fund management fees of $120.5 million and an increase in Fee related performance revenues of
$42.3 million . The increase in Fund management fees was primarily driven by the impact of fundraising in our most recent
vintage of secondaries & portfolio finance funds and to a lesser extent an increase in Fund management fees from CAPM. Fund
management fees for the year ended December 31, 2025 included catch-up management fees of $55.7 million, an increase of
$42.4 million compared to 2024 . Fundraising for our most recent vintage of secondaries & portfolio finance funds concluded in
the third quarter of 2025; therefore, related catch-up management fees will not recur next year. The increase in Fee related
performance revenues was attributable to CAPM, driven by its growing capital base and performance.
Cash-based compensation and benefits expense. Cash-based compensation and benefits expense increased $34.2
million for the year ended December 31, 2025 as compared to 2024 , primarily due to an increase in headcount and an increase
in compensation associated with fee related performance revenues, partially offset by an increase in the portion of
compensation being derived from Realized performance revenues related compensation .
General, administrative and other indirect expenses. General, administrative and other indirect expenses increased
$26.9 million for the year ended December 31, 2025 as compared to 2024 , primarily due to an increase in external fundraising
costs and an increase in partnership expenses paid by the Company on behalf of certain funds .

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Fee-earning AUM
Fee-earning AUM is presented below for each period together with the components of change during each respective
period.
The table below breaks out Fee-earning AUM by its respective components during the period.

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Carlyle AlpInvest

Components of Fee-earning AUM (1)

Fee-earning AUM based on capital commitments

$ 27,884

$ 21,934

Fee-earning AUM based on invested capital (2)

9,122

9,224

Fee-earning AUM based on net asset value

18,273

12,930

Fee-earning AUM based on lower of cost or fair market value

10,673

8,051

Total Fee-earning AUM

$ 65,952

$ 52,139

Annualized Management Fee Rate (3)

0.68 %

0.66 %

(1) For additional information concerning the components of Fee-earning AUM, see “—Key Financial Measures—Operating Metrics.”
(2) Includes amounts committed to or reserved for certain AlpInvest funds.
(3) Represents annualized fund management fees divided by the average of the beginning of year and each quarter end’s Fee-earning AUM
in the reporting period. Catch-up management fees were excluded in the calculation of the annualized fund management fees.
The table below provides the period to period rollforward of Fee-earning AUM.

 

Year Ended Ended December 31,

 

2025

2024

 

(Dollars in millions)

Carlyle AlpInvest

Fee-earning AUM Rollforward

Balance, Beginning of Period

$ 52,139

$ 45,529

Inflows (1)

16,039

9,886

Outflows (including realizations) (2)

(5,260)

(3,859)

Market Activity & Other (3)

918

1,674

Foreign Exchange (4)

2,116

(1,091)

Balance, End of Period

$ 65,952

$ 52,139

(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based on
commitments were activated during the period, fee-earning commitments invested in vehicles for which management fees are based on
invested capital, and gross subscriptions in our vehicles for which management fees are based on net asset value. Inflows exclude
fundraising amounts during the period for which fees have not yet been activated, which are referenced as Pending Fee-earning AUM.
(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair
value, changes in basis for funds where the investment period, weighted-average investment period, or commitment fee period has
expired during the period, and reductions for funds that are no longer calling for fees. Distributions for funds earning management fees
based on commitments during the period do not affect Fee-earning AUM.
(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the lower
of cost or fair value and net asset value.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Fee-earning AUM was $66.0 billion at December 31, 2025 , an increase of 27% compared to $52.1 billion at
December 31, 2024 . The net increase was due to:
• Inflows of $16.0 billion , which were driven by fee-paying capital raised and investment activity across all strategies,
notably in our secondaries & portfolio finance, CAPM, and CAPS funds; and
• Positive foreign exchange activity of $2.1 billion , primarily from the translation of our EUR-denominated funds to
USD.

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Offsetting these increases were:
• Outflows of $5.3 billion , which were driven by realizations across all strategies in funds that charge fees on invested
capital.
Total AUM
The table below provides the period to period rollforward of Total AUM.

 

Year Ended Ended December 31,

 

2025

2024

 

(Dollars in millions)

Carlyle AlpInvest

Total AUM Rollforward

Balance, Beginning of Period

$ 85,113

$ 76,860

Inflows (1)

17,889

10,812

Outflows (including realizations) (2)

(10,231)

(7,089)

Market Activity & Other (3)

5,644

6,577

Foreign Exchange (4)

3,581

(2,047)

Balance, End of Period

$ 101,996

$ 85,113

(1) Inflows reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects
translation at the average quarterly rate.
(2) Outflows includes distributions in our carry funds, related co-investment vehicles and separately managed accounts, as well as the
expiration of available capital.
(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related
co-investment vehicles and separately managed accounts, the net impact of fees, expenses and non-investment income, as well as other
changes in AUM.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Total AUM was $102.0 billion as of December 31, 2025 , an increase of 20% compared to $85.1 billion as of
December 31, 2024 . The net increase was due to:
• Inflows of $17.9 billion , which reflected fundraising across the platform, notably in our secondaries & portfolio
finance and co-investment strategies, as well as the CAPM and CAPS funds;
• Market appreciation of $5.6 billion , which was driven by our secondaries & portfolio finance and co-investment
strategies; and
• Positive foreign exchange activity of $3.6 billion , primarily from the translation of our EUR-denominated funds to
USD.
Offsetting these increases were:
• Outflows of $10.2 billion , which reflected realizations across all strategies.
Fund Performance Metrics
The fund return information reflected in this discussion and analysis is not indicative of the performance of The
Carlyle Group Inc. and is also not necessarily indicative of the future performance of any particular fund. An investment in The
Carlyle Group Inc. is not an investment in any of our funds. There can be no assurance that any of our funds or our other
existing and future funds will achieve similar returns. See Part I, Item 1A “Risk Factors—Risks Related to Our Business
Operations—Risks Related to the Assets We Manage—The historical returns attributable to our funds, including those
presented in this Annual Report on Form 10-K, should not be considered as indicative of the future results of our funds or of
our future results or of any returns expected on an investment in our common stock.”

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The following table reflects the performance of our significant funds in our Carlyle AlpInvest business. We also
present fund performance information for portfolios of investments held by separately managed accounts, generally aggregated
either as invested alongside the relevant commingled fund or over a specified time period.

(Amounts in millions)

 

 

TOTAL INVESTMENTS

 

 

 

As of December 31, 2025

Carlyle AlpInvest (1)(8)

Vintage 
Year

Fund Size

Cumulative
Invested
Capital
(2)(3)

Realized
Value (3)

Remaining
Fair Value
(3)

Total Value
(3)(4)

MOIC
(5)

Gross
IRR
(6)(10)

Net
IRR
(7)(10)

Net Accrued
Carry/
(Giveback)
(12)

 

 

 

(Reported in Local Currency, in Millions)

Secondaries &
Portfolio
Finance

ASF VIII

2024

$ 13,422

$ 6,597

$ 278

$ 8,191

$ 8,469

1.3x

NM

NM

$ 59

ASF VII

2020

$ 6,769

$ 4,991

$ 2,484

$ 5,431

$ 7,914

1.6x

17%

13%

$ 118

ASF VII - SMAs

2020

€ 2,043

€ 1,721

€ 662

€ 1,903

€ 2,565

1.5x

15%

13%

$ 38

ASF VI

2017

$ 3,333

$ 2,820

$ 3,116

$ 1,547

$ 4,663

1.7x

15%

11%

$ 58

ASF VI - SMAs

2017

€ 2,817

€ 2,626

€ 2,717

€ 1,497

€ 4,214

1.6x

13%

11%

$ 49

ASF V

2012

$ 756

$ 674

$ 1,091

$ 110

$ 1,201

1.8x

18%

14%

$ 5

ASF V - SMAs

2012

€ 3,916

€ 3,922

€ 6,857

€ 407

€ 7,264

1.9x

21%

19%

$ 9

SMAs 2009-2011

2010

€ 1,859

€ 1,931

€ 3,334

€ 33

€ 3,367

1.7x

19%

18%

$ —

ASPF II

2023

$ 2,227

$ 1,379

$ 274

$ 1,282

$ 1,556

1.1x

24%

17%

$ 8

All Other Active Funds & Vehicles (9)

Various

$ 1,803

$ 479

$ 2,049

$ 2,528

1.4x

19%

16%

$ 36

Fully Realized Funds & Vehicles

Various

€ 4,341

€ 7,074

€ 12

€ 7,087

1.6x

19%

18%

$ —

Co-Investments

ACF IX

2023

$ 4,120

$ 2,120

$ 19

$ 2,426

$ 2,445

1.2x

15%

9%

$ 4

ACF VIII

2021

$ 3,614

$ 3,469

$ 455

$ 4,487

$ 4,941

1.4x

11%

9%

$ 48

ACF VIII - SMAs

2021

$ 1,099

$ 1,011

$ 135

$ 1,289

$ 1,424

1.4x

12%

10%

$ 12

ACF VII

2017

$ 1,688

$ 1,691

$ 1,718

$ 1,628

$ 3,346

2.0x

14%

12%

$ 58

ACF VII - SMAs

2017

€ 1,452

€ 1,381

€ 1,173

€ 1,404

€ 2,577

1.9x

14%

12%

$ 42

SMAs 2014-2016

2014

€ 1,274

€ 1,064

€ 2,424

€ 288

€ 2,713

2.6x

24%

22%

$ 6

SMAs 2012-2013

2012

€ 1,124

€ 1,009

€ 2,764

€ 129

€ 2,893

2.9x

28%

26%

$ 1

SMAs 2009-2010

2010

€ 1,475

€ 1,317

€ 3,496

€ 409

€ 3,905

3.0x

23%

21%

$ —

Strategic SMAs

Various

$ 4,872

$ 2,642

$ 5,472

$ 8,115

1.7x

16%

14%

$ 79

All Other Active Funds & Vehicles (9)

Various

€ 345

€ 167

€ 328

€ 495

1.4x

32%

30%

$ 2

Fully Realized Funds & Vehicles

Various

€ 5,788

€ 9,904

€ —

€ 9,905

1.7x

15%

13%

$ —

Primary
Investments

SMAs 2024-2026

2024

€ 3,475

€ 202

€ 6

€ 199

€ 204

1.0x

NM

NM

$ —

SMAs 2021-2023

2021

€ 4,583

€ 1,816

€ 152

€ 2,042

€ 2,194

1.2x

NM

NM

$ 1

SMAs 2018-2020

2018

$ 3,116

$ 2,661

$ 843

$ 3,170

$ 4,013

1.5x

14%

13%

$ 4

SMAs 2015-2017

2015

€ 2,501

€ 2,465

€ 2,838

€ 2,061

€ 4,900

2.0x

19%

18%

$ 9

SMAs 2012-2014

2012

€ 5,080

€ 5,704

€ 9,650

€ 2,801

€ 12,452

2.2x

17%

17%

$ 11

SMAs 2009-2011

2009

€ 4,877

€ 5,527

€ 10,423

€ 1,532

€ 11,955

2.2x

17%

16%

$ 1

SMAs 2006-2008

2005

€ 11,500

€ 12,836

€ 21,532

€ 1,058

€ 22,591

1.8x

10%

10%

$ —

SMAs 2003-2005

2003

€ 4,628

€ 4,883

€ 7,775

€ 131

€ 7,906

1.6x

10%

9%

$ —

All Other Active Funds & Vehicles (9)

Various

€ 1,744

€ 1,767

€ 218

€ 1,986

1.1x

3%

2%

$ —

Fully Realized Funds & Vehicles

Various

€ 4,744

€ 7,735

€ 18

€ 7,753

1.6x

12%

11%

$ —

TOTAL CARLYLE ALPINVEST (USD) (11)

$ 110,807

$ 133,782

$ 56,414

$ 190,196

1.7x

14%

13%

$ 656

(1) Includes private equity and mezzanine primary fund investments, secondary fund investments and co-investments
originated by AlpInvest. Excluded from the performance information shown are: (a) investments that were not
originated by AlpInvest (i.e., AlpInvest did not make the original investment decision or recommendation); (b) Direct
Investments, which was spun off from AlpInvest in 2005; (c) Carlyle AlpInvest Private Markets (“CAPM”); (d)
Carlyle AlpInvest Private Markets Secondaries (“CAPS”); and (e) LP co-investment vehicles managed by AlpInvest.
As of December 31, 2025, these excluded portfolios amounted to approximately $16.8 billion of AUM in the
aggregate.  
(2) Represents the original cost of investments since inception of the fund.
(3) To exclude the impact of FX, all foreign currency cash flows have been converted to the currency representing a
majority of the capital committed to the relevant fund at the reporting period spot rate.
(4) Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried
interest.
(5) Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried
interest, divided by cumulative invested capital.
(6) Gross Internal Rate of Return (“Gross IRR”) represents the annualized IRR for the period indicated on Limited Partner
invested capital based on investment contributions, distributions and unrealized value of the underlying investments,
before management fees, expenses and carried interest at the AlpInvest level.

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(7) Net Internal Rate of Return (“Net IRR”) represents the annualized IRR for the period indicated on Limited Partner
invested capital based on investment contributions, distributions and unrealized value of the underlying investments,
after management fees, expenses and carried interest. Fund level IRRs are based on aggregate Limited Partner cash
flows, and this blended return may differ from that of individual Limited Partners. As a result, certain funds may
generate accrued performance revenues with a blended Net IRR that is below the preferred return hurdle for that fund.
(8) “ASF” stands for AlpInvest Secondaries Fund, “ACF” stands for AlpInvest Co-Investment Fund, and “SMAs” are
Separately Managed Accounts. “ASF - SMAs” and “ACF - SMAs” reflect the aggregated portfolios of investments
held by SMAs within the relevant strategy, which invest alongside the relevant ASF or ACF (as applicable). Strategic
SMAs reflect the aggregated portfolios of co-investments made by SMAs sourced from the SMA investor’s own
private equity fund investment portfolio. Other SMAs reflect the aggregated portfolios of investments within the
relevant strategy that began making investments in the corresponding time periods. Co-Investments SMAs 2014-2016
does not include two SMAs that started in 2016 but invested a substantial majority alongside ACF VII. These two
SMAs have instead been grouped with ACF VII - SMAs. An SMA may pursue multiple investment strategies and
make commitments over multiple years.
(9) Includes ASF VIII - SMAs, ACF IX - SMAs, AlpInvest Atom Fund, AlpInvest Atom Fund II, all mezzanine
investment portfolios, all ‘clean technology’ private equity investment portfolios, all strategic portfolio finance SMAs,
all AlpInvest senior portfolio lending SMAs, and any state-focused investment mandate portfolios.
(10) For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited
time since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is considered
meaningful but is negative as of reporting period end.
(11) For purposes of aggregation, funds that report in foreign currency have been converted to U.S. dollars at the reporting
period spot rate.
(12) Represents the net accrued performance revenue balance/(giveback obligation) as of the current quarter end. Total Net
Accrued Carry excludes net accrued carry which was retained as part of the sale of MRE on April 1, 2021. There was
no net accrued carry balance for MRE as of December 31, 2025 .

Liquidity and Capital Resources
Historical Liquidity and Capital Resources
We have historically required limited capital resources to support the working capital and operating needs of our
business. Our management fees have largely covered our operating costs and all realized performance allocations, after
covering the related compensation, are available for distribution to stockholders. Approximately 97% of all capital
commitments to our funds are provided by our fund investors, with the remaining amount typically funded by Carlyle, our
senior Carlyle professionals, advisors, and other professionals. We may elect to invest additional amounts in new investment
areas through increased investment in our funds, which we may subsequently transfer to newly developed products.
Our Sources of Liquidity
We have multiple sources of liquidity to meet our capital needs, including cash on hand, annual cash flows,
accumulated earnings, cash we receive from our notes offerings, and funds from our senior revolving credit facility, which had
$1.0 billion of available capacity as of December 31, 2025 . Although we may consider other financings to invest in growing our
business, such as the $800.0 million senior note offering during the year ended December 31, 2025, we believe these sources
will be sufficient to fund our capital needs for at least the next twelve months. We believe we will meet longer-term expected
future cash requirements and obligations through a combination of existing cash and cash equivalent balances, cash flow from
operations, accumulated earnings, and amounts available for borrowing from our senior revolving credit facility or other
financings.
Cash and cash equivalents. Cash and cash equivalents were approximately $2.0 billion at December 31, 2025 .
However, a portion of this cash is allocated for specific business purposes, including, but not limited to: (i) performance
allocations and incentive fee related cash that has been received but not yet distributed as performance allocations and incentive
fee related compensation and amounts owed to non-controlling interests, (ii) proceeds received from realized investments that
are allocable to non-controlling interests, and (iii) regulatory capital.
Corporate Treasury Investments . These investments represent investments in U.S. Treasury and government agency
obligations, commercial paper, certificates of deposit, other investment grade securities and other investments with original
maturities of greater than three months when purchased.
After deducting cash amounts allocated to the specific requirements mentioned above, the remaining cash, cash
equivalents, and corporate treasury investments (if any) was approximately $1.8 billion as of December 31, 2025 . This

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remaining amount will be used towards our primary liquidity needs, as outlined in the next section. This amount does not take
into consideration ordinary course of business payables and reserves for specific business purposes.
Senior Revolving Credit Facility. The capacity under the amended and restated revolving credit facility is $1.0 billion ,
which was amended in May 2025 to extend the maturity date from April 29, 2027 to May 29, 2030. The Company’s borrowing
capacity is subject to the ability of the financial institutions in the banking syndicate to fulfill their respective obligations under
the revolving credit facility. Principal amounts outstanding under the amended and restated revolving credit facility accrue
interest, at the option of the borrowers, either (a) at an alternate base rate plus an applicable margin not to exceed 0.50% per
annum, or (b) at SOFR (or similar benchmark rate for non-U.S. dollar borrowings) plus a 0.10% adjustment and an applicable
margin not to exceed 1.50% per annum ( 4.79% at December 31, 2025 ). As of December 31, 2025 , there were no amounts
outstanding under the senior revolving credit facility.
The senior revolving credit facility is unsecured. We are required to maintain management fee-earning assets (as
defined in the amended and restated senior revolving credit facility) of at least $156.9 billion and a total leverage ratio of less
than 4.0 to 1.0, in each case, tested on a quarterly basis. Non-compliance with any of the financial or non-financial covenants
without cure or waiver would constitute an event of default under the senior revolving credit facility. An event of default
resulting from a breach of certain financial or non-financial covenants may result, at the option of the lenders, in an acceleration
of the principal and interest outstanding, and a termination of the senior revolving credit facility. The senior revolving credit
facility also contains other customary events of default, including defaults based on events of bankruptcy and insolvency,
nonpayment of principal, interest or fees when due, breach of specified covenants, change in control, and material inaccuracy of
representations and warranties.
Global Credit Revolving Credit Facility. Certain subsidiaries of the Company are parties to a revolving line of credit,
primarily intended to support certain lending activities within the Global Credit segment. As currently amended, the Global
Credit Revolving Credit Facility provides for a revolving line of credit with a capacity of $300 million , which matures in
September 2027, and a second revolving line of credit with a capacity of $200 million , which was amended in August 2025 to
extend the maturity date to August 19, 2026 .
The Company’s borrowing capacity is subject to the ability of the financial institutions in the banking syndicate to
fulfill their respective obligations under the Global Credit Revolving Credit Facility. Principal amounts outstanding accrue
interest at applicable SOFR or Eurocurrency rates plus an applicable margin of 2.00% or an alternate base rate plus an
applicable margin of 1.00% . As of December 31, 2025 , there was no borrowing outstanding under the Global Credit Revolving
Credit Facility.
CLO Borrowings. For certain of our CLOs, the Company finances a portion of its investment in the CLOs through the
proceeds received from term loans and other financing arrangements with financial institutions or other financing arrangements.
The Company’s CLO borrowings outstanding were $350.1 million and $289.4 million at December 31, 2025 and 2024 ,
respectively. The CLO borrowings are secured by the Company’s investments in the respective CLO, have a general unsecured
interest in the Carlyle entity that manages the CLO and generally do not have recourse to any other Carlyle entity. As of
December 31, 2025 , $330.7 million of these borrowings are secured by investments attributable to The Carlyle Group Inc. See
Note 6 , Borrowings , to the consolidated financial statements for more information on our CLO borrowings.
Senior Notes . The Company and certain indirect finance subsidiaries of the Company have issued senior notes, on
which interest is payable semi-annually, as discussed below. The senior notes are unsecured and unsubordinated obligations of
the respective subsidiary and are fully and unconditionally guaranteed, jointly and severally, by the Company and each of the
Carlyle Holdings partnerships. The indentures governing each of the senior notes contain customary covenants that, among
other things, limit the issuers’ and the guarantors’ ability, subject to certain exceptions, to incur indebtedness secured by liens
on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets.
The notes also contain customary events of default. All or a portion of the notes may be redeemed at our option, in whole or in
part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the notes.
If a change of control repurchase event occurs, the notes are subject to repurchase at the repurchase price as set forth in the
notes.
3.500% Senior Notes . In September 2019, Carlyle Finance Subsidiary L.L.C. issued $425.0 million of 3.500% senior
notes due September 19, 2029 at 99.841% of par.
5.050% Senior Notes . In September 2025, the Company issued $800.0 million of 5.050% senior notes due September
19, 2035 at 99.767% of par.

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5.625% Senior Notes . In March 2013, Carlyle Holdings II Finance L.L.C. issued $400.0 million of 5.625% senior
notes due March 30, 2043 at 99.583% of par. In March 2014, an additional $200.0 million of these notes were issued at
104.315% of par and are treated as a single class with the already outstanding $400.0 million aggregate principal amount of
these notes.
5.650% Senior Notes . In September 2018, Carlyle Finance L.L.C. issued $350.0 million of 5.650% senior notes due
September 15, 2048 at 99.914% of par.
Subordinated Notes. In May and June 2021, Carlyle Finance L.L.C. issued $500.0 million aggregate principal amount
of 4.625% subordinated notes due May 15, 2061. The Subordinated Notes are unsecured and subordinated obligations of the
issuer and are fully and unconditionally guaranteed, jointly and severally, on a subordinated basis, by the Company, each of the
Carlyle Holdings partnerships, and CG Subsidiary Holdings L.L.C., an indirect subsidiary of the Company. The indentures
governing the Subordinated Notes contain customary covenants that, among other things, limit the issuers’ and the guarantors’
ability, subject to certain exceptions, to incur indebtedness ranking on a parity with the Subordinated Notes or indebtedness
ranking junior to the Subordinated Notes secured by liens on voting stock or profit participating equity interests of their
subsidiaries or merge, consolidate or sell, transfer or lease all or substantially all of their assets. The Subordinated Notes also
contain customary events of default. All or a portion of the notes may be redeemed at our option, in whole or in part, at any
time and from time to time on or after June 15, 2026, prior to their stated maturity, at a redemption price equal to their principal
amount plus any accrued and unpaid interest to, but excluding, the date of redemption. If interest due on the Subordinated Notes
is deemed to no longer be deductible in the U.S., a “Tax Redemption Event,” the Subordinated Notes may be redeemed, in
whole, but not in part, within 120 days of the occurrence of such event at a redemption price equal to their principal amount
plus accrued and unpaid interest to, but excluding, the date of redemption. In addition, the Subordinated Notes may be
redeemed, in whole, but not in part, at any time prior to May 15, 2026, within 90 days of the rating agencies determining that
the Subordinated Notes should no longer receive partial equity treatment pursuant to the rating agency’s criteria, a “rating
agency event,” at a redemption price equal to 102% of their principal amount plus any accrued and unpaid interest to, but
excluding, the date of redemption.
Obligations of CLOs. Loans payable of the Consolidated Funds primarily comprise amounts due to holders of debt
securities issued by the CLOs. We are not liable for any loans payable of the CLOs. Loans payable of the CLOs are
collateralized by the assets held by the CLOs and the assets of one CLO may not be used to satisfy the liabilities of another.
This collateral consists of cash and cash equivalents, corporate loans, corporate bonds and other securities.
Realized Performance Allocation Revenues . Another source of liquidity we may use to meet our capital needs is the
realized performance allocation revenues generated by our investment funds. Performance allocations are generally realized
when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return.
For certain funds, performance allocations are realized once all invested capital and expenses have been returned to the fund’s
investors and the fund’s cumulative returns are in excess of the preferred return. Incentive fees earned on our CLO vehicles
generally are paid upon the dissolution of such vehicles.

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Our accrued performance allocations by segment as of December 31, 2025 , gross and net of accrued giveback
obligations, are set forth below:

Accrued
Performance
Allocations (1)

Accrued
Giveback
Obligation

Net Accrued
Performance
Revenues

 

(Dollars in millions)

Global Private Equity

$ 5,021.1

$ (47.3)

$ 4,973.8

Global Credit

724.6

(25.5)

699.1

Carlyle AlpInvest

1,874.6

—

1,874.6

Total

$ 7,620.3

$ (72.8)

$ 7,547.5

Plus: Accrued performance allocations from NGP Carry Funds (2)

326.2

Less: Accrued performance allocation-related compensation

(5,064.7)

Plus: Receivable for giveback obligations from current and former employees

24.2

Less: Deferred taxes on certain foreign accrued performance allocations

(16.0)

Less/Plus: Net accrued performance allocations/giveback obligations attributable to non-controlling interests in
consolidated entities

(0.6)

Plus: Net accrued performance allocations attributable to Consolidated Funds, eliminated in consolidation

19.6

Net accrued performance revenues before timing differences

2,836.2

Less/Plus: Timing differences between the period when accrued performance allocations/giveback obligations are
realized and the period they are collected/distributed

23.1

Net accrued performance revenues attributable to The Carlyle Group Inc.

$ 2,859.3

(1) Accrued incentive fees are excluded from net accrued performance revenues.
(2) Accrued performance allocations from NGP funds are presented as principal equity method investments in the consolidated balance sheets.
The net accrued performance revenues attributable to The Carlyle Group Inc., excluding realized amounts, related to
our carry funds and our other vehicles as of December 31, 2025 , as well as the carry fund appreciation (depreciation), is set
forth below by segment (Dollars in millions):

Carry Fund Appreciation/(Depreciation) (1)

Net Accrued
Performance
Revenues

FY 2023

FY 2024

FY 2025

Overall Carry Fund Appreciation/(Depreciation)

7%

8%

8%

Global Private Equity:

5%

7%

7%

$ 1,940.4

Corporate Private Equity

5%

8%

7%

1,527.1

Real Estate

(1)%

5%

3%

69.9

Infrastructure & Natural Resources

8%

8%

17%

343.4

Global Credit Carry Funds

12%

12%

16%

262.9

Carlyle AlpInvest Carry Funds

10%

9%

6%

656.0

Net Accrued Performance Revenues

$ 2,859.3

(1) Appreciation/(Depreciation) represents unrealized gain/(loss) for the period on a total return basis before fees and expenses. The percentage of return
is calculated as: ending remaining investment fair market value plus net investment outflow (sales proceeds minus net purchases) minus beginning
remaining investment fair market value divided by beginning remaining investment fair market value. Amounts are fund only, and do not include
coinvestments.
Realized Principal Investment Income. Another source of liquidity we may use to meet our capital needs is the realized
principal investment income generated by our equity method investments and other principal investments. Principal investment
income is realized when we redeem all or a portion of our investment or when we receive or are due cash income, such as
dividends or distributions. Certain of the investments attributable to The Carlyle Group Inc. (excluding certain general partner
interests, certain strategic investments, and investments in certain CLOs) may be sold at our discretion as a source of liquidity.

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Investments as of December 31, 2025 consist of the following:

Investments
in Carlyle
Funds

Investments
in NGP (1)

Total

(Dollars in millions)

Investments, excluding performance allocations

$ 2,916.4

$ 616.0

$ 3,532.4

Less: Amounts attributable to non-controlling interests in consolidated entities

(388.3)

—

(388.3)

Plus: Investments in Consolidated Funds, eliminated in consolidation

1,047.3

—

1,047.3

Less: Strategic equity method investments in NGP Management

—

(247.4)

(247.4)

Less: Investment in NGP general partners - accrued performance allocations

—

(326.2)

(326.2)

Total investments attributable to The Carlyle Group Inc.

$ 3,575.4

$ 42.4

$ 3,617.8

(1) Represents our total investment in NGP. See Note 4 , Investments , to the consolidated financial statements.
Our investments as of December 31, 2025 can be further attributed as follows (Dollars in millions):

Investments in Carlyle Funds, excluding CLOs:

Global Private Equity funds (1)

$ 1,334.0

Global Credit funds (2)

1,346.3

Carlyle AlpInvest funds

391.9

Total investments in Carlyle Funds, excluding CLOs

3,072.2

Investments in CLOs

419.0

Other investments

126.6

Total investments attributable to The Carlyle Group Inc.

3,617.8

CLO loans and other borrowings collateralized by investments attributable to The Carlyle Group Inc. (3)

(330.7)

Total investments attributable to The Carlyle Group Inc., net of CLO loans and other borrowings

$ 3,287.1

(1) Excludes our strategic equity method investment in NGP Management and investments in NGP general partners - accrued performance allocations .
This balance also includes amounts bridged by us on behalf of investment funds for which we have entered into warehouse agreements. Under such
warehouse agreements, we may elect to transfer investments for a price that differs from fair value.
(2) Includes the Company’s indirect investment in Fortitude through Carlyle FRL, a Carlyle-affiliated investment fund, as discussed in Note 4 ,
Investments , to the consolidated financial statements. This investment had a carrying value of $722.4 million as of December 31, 2025 .
(3) Of the $350.1 million in total CLO borrowings as of December 31, 2025 and as disclosed in Note 6 , Borrowings , to the consolidated financial
statements, $330.7 million are collateralized by investments attributable to The Carlyle Group Inc. The remaining $19.4 million in total CLO
borrowings are collateralized by investments attributable to non-controlling interests.
Our Liquidity Needs
We generally use our working capital and cash flows to invest in growth initiatives, service our debt, fund the working
capital needs of our business and investment funds, and return capital to our common stockholders in the form of dividends or
stock repurchases.
In the future, we expect that our primary liquidity needs will be to:
• provide capital to facilitate the growth of our existing business lines;
• provide capital to facilitate our expansion into new, complementary business lines, including acquisitions;
• pay operating expenses, including compensation and compliance costs and other obligations as they arise;
• fund costs of litigation and contingencies, including related legal costs;
• fund the capital investments in our funds;
• fund capital expenditures;
• repay borrowings and related interest costs and expenses;
• pay earn-outs and contingent cash consideration associated with our acquisitions and strategic investments;
• pay income taxes, including corporate income taxes;

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• pay dividends to our common stockholders in accordance with our dividend policy;
• repurchase our common stock and pay any associated taxes; and
• settle tax withholding obligations in connection with net share settlements of equity-based awards.
Common Stockholder Dividends. Under our dividend policy for our common stock, our intention is to pay dividends to
holders of our common stock in an amount of $0.35 per common share on a quarterly basis ($1.40 annually). For U.S. federal
income tax purposes, any dividends we pay generally will be treated as qualified dividend income (generally taxable to U.S.
individual stockholders at capital gain rates) paid by a domestic corporation to the extent paid out of our current or accumulated
earnings and profits, as determined for U.S. federal income tax purposes, with any excess dividends treated as return of capital
to the extent of the stockholder’s basis. The declaration and payment of dividends to holders of our common stock will be at the
sole discretion of our Board of Directors and in compliance with applicable law, and our dividend policy may be changed at any
time.
With respect to dividend year 2025 , the Board of Directors has declared a dividend to common stockholders totaling
$505.1 million , or $1.40 per share, consisting of the following:

Common Stock Dividends - Dividend Year 2025

Quarter

Dividend per
Common
Share

Dividend to
Common
Stockholders

Record Date

Payment Date

(Dollars in millions, except per share data)

Q1 2025

$ 0.35

$ 126.3

May 19, 2025

May 27, 2025

Q2 2025

0.35

126.5

August 18, 2025

August 28, 2025

Q3 2025

0.35

125.9

November 10, 2025

November 19, 2025

Q4 2025

0.35

126.4

February 16, 2026

February 20, 2026

Total

$ 1.40

$ 505.1

With respect to dividend year 2024 , the Board of Directors declared cumulative dividends to common stockholders
totaling $502.7 million , consisting of the following:

Common Stock Dividends - Dividend Year 2024

Quarter

Dividend per
Common
Share

Dividend to
Common
Stockholders

Record Date

Payment Date

(Dollars in millions, except per share data)

Q1 2024

$ 0.35

$ 125.6

May 14, 2024

May 21, 2024

Q2 2024

0.35

125.5

August 16, 2024

August 26, 2024

Q3 2024

0.35

125.2

November 18, 2024

November 25, 2024

Q4 2024

0.35

126.4

February 21, 2025

February 28, 2025

Total

$ 1.40

$ 502.7

Dividends to common stockholders paid during the year ended December 31, 2025 totaled $505.1 million , including
the amount paid in February 2025 of $0.35 per common share in respect of the fourth quarter of 2024 . Dividends to common
stockholders paid during the year ended December 31, 2024 totaled $503.0 million , including the amount paid in March 2024
of $0.35 per common share in respect of the fourth quarter of 2023 .

Fund Commitments. Generally, up to 3% of all capital commitments to our investment funds are made by Carlyle, our
senior Carlyle professionals, advisors, and other professionals. Carlyle will generally commit up to 1% of capital commitments
related to our carry funds, although we may elect to invest additional amounts in funds focused on new investment areas. We
may, from time to time, exercise our right to purchase additional interests in our investment funds that become available in the
ordinary course of their operations. We expect our senior Carlyle professionals and employees to continue to make significant
capital contributions to our funds based on their existing commitments, and to make capital commitments to future funds
consistent with the level of their historical commitments. We also intend to make investments in our open-end funds and our

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CLO vehicles. Our investments in our European CLO vehicles will comply with the risk retention rules as discussed in “Risk
Retention Rules” later in this section.
A substantial majority of the remaining commitments to our investment funds are expected to be funded by senior
Carlyle professionals, operating executives, and other professionals through our internal co-investment program. Of the $3.9
billion of unfunded commitments, approximately $3.2 billion is subscribed individually by senior Carlyle professionals,
operating executives, and other professionals, with the balance funded directly by the Company. Approximately 77% of the
$3.9 billion of unfunded commitments relate to investment funds in our Global Private Equity segment.
Under the Carlyle Global Capital Markets platform, certain of our subsidiaries may act as an underwriter, syndicator,
or placement agent for security offerings and loan originations. We earn fees in connection with these activities and bear the
risk of the sale of such securities and placement of such loans, which may be longer dated. As of December 31, 2025 , there
were no material commitments related to the origination and syndication of loans and securities under the Carlyle Global
Capital Markets platform.
Repurchase Program. For the year ended December 31, 2025 , we paid an aggregate of $400.0 million to repurchase
and retire approximately 7.5 million shares of common stock. In addition, for the year ended December 31, 2025 , we paid an
aggregate of $286.5 million and retired 5.1 million shares of common stock to settle tax withholding obligations in connection
with net share settlements of equity-based awards, for a total of $686.5 million for approximately 12.7 million shares
repurchased or withheld this year. As of December 31, 2025 , $165.7 million of repurchase capacity remained under the
$1.4 billion share repurchase program authorized in February 2024 , which reflects the cost of common shares repurchased as
well as shares settled for tax withholding payments made by the Company related to the net share settlement of equity-based
awards. Our Board of Directors reset the total repurchase authorization to $2.0 billion in shares of our common stock, effective
as of February 26, 2026. For further information on our repurchase program, see Note 13 , Equity , to the consolidated financial
statements.
Cash Flows
The following tables summarize our consolidated statements of cash flows by activities attributable to the Company
and the Consolidated Funds.

 

Year Ended December 31,

 

2025

2024

 

(Dollars in millions)

Statements of Cash Flows Data

Net cash provided by the Company’s operating activities

$ 1,088.6

$ 1,088.9

Net cash used in the Consolidated Funds’ operating activities, after eliminations

(4,364.1)

(1,848.4)

Net cash used in operating activities

(3,275.5)

(759.5)

Net cash used in investing activities

(99.4)

(77.6)

Net cash used in the Company’s financing activities

(327.2)

(1,172.1)

Net cash provided by the Consolidated Funds’ financing activities, after eliminations

4,317.6

1,854.9

Net cash provided by financing activities

3,990.4

682.8

Effect of foreign exchange rate changes

91.6

(21.3)

Net change in cash, cash equivalents and restricted cash

$ 707.1

$ (175.6)

The consolidated statements of cash flows include the cash flows of our Consolidated Funds, which include certain
consolidated investment funds and the CLOs. Generally, the consolidation of the Consolidated Funds has a gross-up effect on
our assets, liabilities and cash flows activities . The primary cash flow activities of the Consolidated Funds generally include (i)
purchases of investments, (ii) proceeds from sales of investments, and (iii) net borrowings of the Consolidated Funds.
Contributions from and distributions to the non-controlling interest holders on the consolidated statements of cash flows
primarily relate to non-controlling interest holders in the Consolidated Funds. The impact that the Consolidated Funds had on
cash flows attributable to the Company for the periods presented were limited to our interest in these funds, which is included in
the discussion below. Thus we excluded the Consolidated Funds from the discussion below.
Net cash provided by (used in) operating activities . Net cash provided by (used in) operating activities primarily
consists of: (i) net cash generated from operating activities, which include the receipt of management fees, realized performance

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allocations and incentive fees after payments for compensation and general, administrative and other expenses, and (ii) our net
investment activity, which include purchases of and proceeds from our investment activities.
For the years ended December 31, 2025 and 2024 we received management fees and realized performance allocations,
investment income, and incentive fees of $3.7 billion and $3.6 billion , respectively, partially offset by payments for
compensation, income taxes, interest, and general, administrative and other expenses of approximately $2.5 billion and $2.5
billion , respectively, which included 2024 and 2023 year-end bonuses paid in January 2025 and 2024, respectively.
For the years ended December 31, 2025 and 2024 , net cash used in our investment activities were $0.3 billion and $0.1
billion , respectively , which primarily represented cash used to fund commitments and investments in our portfolio, partially
offset by proceeds related to distributions from our investments. As of December 31, 2025 and 2024 , o ur commitments in our
funds were $3.3 billion and $2.8 billion , respectively. We expect our commitments in our funds will continue to increase with
the growth of our assets under management and our investments in new products.
Net cash used in investing activities . For the years ended December 31, 2025 and 2024 , cash used in investing
activities primarily reflected capital expenditures related to information technology, leasehold improvements, and other fixed
assets of $99.4 million and $77.7 million , respectfully.
Net cash provided by (used in) financing activities . For the year ended December 31, 2025 , we issued $800.0 million
of 5.050% senior notes due 2035. For the year ended December 31, 2024 , we paid $68.8 million in January 2024, representing
the final annual installment of the deferred consideration payable to former Carlyle Holdings unitholders in connection with the
Conversion. For the years ended December 31, 2025 and 2024 , we paid dividends to our common stockholders of $505.1
million and $503.0 million , respectively, and we paid $686.5 million and $554.6 million , respectively, to repurchase and retire
12.7 million and 12.3 million shares, respectively, which included shares retired in connection with the net share settlement of
equity-based awards.
Our Balance Sheet
Total assets were $29.1 billion at December 31, 2025 , an increase of $6.0 billion from December 31, 2024 . The
increase in total assets was primarily attributable to an increase in Investments in Consolidated Funds of $4.7 billion , primarily
due to the consolidation of six additional CLOs in 2025 compared to 2024, and an increase in Cash and cash equivalents of $0.7
billion . Refer to “—Cash Flows” in Part II, Item 8 of this Annual Report on Form 10-K for details on the increase in Cash and
cash equivalents.
Total liabilities were $22.1 billion at December 31, 2025 , an increase of $5.3 billion from December 31, 2024 . The
increase in liabilities was primarily attributable to an increase in Loans payable of Consolidated Funds of $3.6 billion , and an
increase in Debt obligations of $0.9 billion . The increase in Debt obligations was driven by our issuance of $800.0 million of
5.050% senior notes due 2035 in 2025.
The assets and liabilities of the Consolidated Funds are generally held within separate legal entities and, as a result, the
assets of the Consolidated Funds are not available to meet our liquidity requirements and similarly the liabilities of the
Consolidated Funds are non-recourse to us. In addition, as previously discussed, the CLO term loans generally are secured by
the Company’s investment in the CLO, have a general unsecured interest in the Carlyle entity that manages the CLO, and do
not have recourse to any other Carlyle entity. The number of funds that we consolidate fluctuates period to period. In general,
the number of funds we are required to consolidate has been increasing as a result of the impacts of capital from our balance
sheet invested in new products and our indirect interest in funds through our indirect investment in Fortitude.
Our balance sheet without the effect of the Consolidated Funds can be seen in Note 17 , Supplemental Financial
Information , to the consolidated financial statements included in this Annual Report on Form 10-K. At December 31, 2025 , our
total assets without the effect of the Consolidated Funds were $16.5 billion , including cash and cash equivalents of $2.0 billion
and Investments, including accrued performance allocations, of $12.2 billion .
Unconsolidated Entities
Certain of our funds have entered into lines of credit secured by their investors’ unpaid capital commitments or by a
pledge of the equity of the underlying investment. These lines of credit are used primarily to reduce the overall number of
capital calls to investors or for working capital needs. In certain instances, however, they may be used for other investment
related activities, including serving as bridge financing for investments. The degree of leverage employed varies among our
funds.

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Off-balance Sheet Arrangements
In the normal course of business, we enter into various off-balance sheet arrangements including sponsoring and
owning limited or general partner interests in consolidated and non-consolidated funds, entering into derivative transactions,
and entering into guarantee arrangements. We also have ongoing capital commitment arrangements with certain of our
consolidated and non-consolidated funds.
For further information regarding our off-balance sheet arrangements, see Note 2 , Summary of Significant Accounting
Policies , and Note 8 , Commitments and Contingencies , to the consolidated financial statements included in this Annual Report
on Form 10-K. Other than what we have disclosed in this Annual Report on Form 10-K, we do not have any other off-balance
sheet arrangements that would require us to fund losses or guarantee target returns to investors in any of our other investment
fund.
Contractual Obligations
The following table sets forth information relating to our contractual obligations as of December 31, 2025 on a
consolidated basis and on a basis excluding the obligations of the Consolidated Funds:

2026

2027-2028

2029-2030

Thereafter

Total

 

(Dollars in millions)

Debt obligations (1)

$ 55.5

$ 128.9

$ 447.0

$ 2,393.7

$ 3,025.1

Interest payable (2)

147.6

288.1

261.1

1,662.8

2,359.6

Other consideration (3)

18.3

5.6

—

—

23.9

Operating lease obligations (4)

74.6

149.8

132.9

197.8

555.1

Capital commitments to Carlyle funds (5)

3,908.1

—

—

—

3,908.1

Tax receivable agreement payments (6)

8.2

8.0

14.8

40.8

71.8

Loans payable of Consolidated Funds (7)

412.9

826.9

825.7

12,092.5

14,158.0

Unfunded commitments of the CLOs (8)

21.0

—

—

—

21.0

Consolidated contractual obligations

4,646.2

1,407.3

1,681.5

16,387.6

24,122.6

Loans payable of Consolidated Funds (7)

(412.9)

(826.9)

(825.7)

(12,092.5)

(14,158.0)

Capital commitments to Carlyle funds (5)

(3,256.4)

—

—

—

(3,256.4)

Unfunded commitments of the CLOs (8)

(21.0)

—

—

—

(21.0)

Carlyle Operating Entities contractual obligations

$ 955.9

$ 580.4

$ 855.8

$ 4,295.1

$ 6,687.2

(1) The table above assumes that no prepayments are made on the senior and subordinated notes and that the outstanding balances, if any, on the senior
credit facility and Global Credit Revolving Credit Facility are repaid on the maturity dates of credit facilities. The CLO term loans are included in the
table above based on the earlier of the stated maturity date or the date the CLO is expected to be dissolved. See Note 6 , Borrowings , to the consolidated
financial statements for the various maturity dates of our borrowings.
(2) The interest rates on the debt obligations as of December 31, 2025 consist of: 3.500% on $425.0 million of senior notes, 5.050% on $800.0 million of
senior notes, 5.650% on $350.0 million of senior notes, 5.625% on $600.0 million of senior notes, 4.625% on $500.0 million of subordinated notes, and
a range of approximately 3.64% to 10.21% for our CLO term loans. Interest payments assume that no prepayments are made and loans are held until
maturity with the exception of the CLO term loans, which are based on the earlier of the stated maturity date or the date the CLO is expected to be
dissolved.
(3) These obligations represent our estimate of amounts to be paid on the contingent cash obligations associated with our acquisition of Abingworth. The
payment obligations are unsecured obligations of the Company or a subsidiary thereof, subordinated in right of payment to indebtedness of the
Company and its subsidiaries, and do not bear interest.
(4) We lease office space in various countries around the world, including our largest offices in Washington, D.C., New York City, London, Amsterdam,
and Hong Kong, which have non-cancelable lease agreements expiring in various years through 2036 . The amounts in this table represent the minimum
lease payments required over the term of the lease.
(5) These obligations generally represent commitments by us to fund a portion of the purchase price paid for each investment made by our funds. These
amounts are generally due on demand and are therefore presented in the less than one year category. A substantial majority of these investments is
expected to be funded by senior Carlyle professionals and other professionals through our internal co-investment program. Of the $3.9 billion of
unfunded commitments to the funds, approximately $3.2 billion is subscribed individually by senior Carlyle professionals, advisors and other
professionals, with the balance funded directly by the Company. Additionally, these obligations include accrued giveback that has been realized but not
yet paid to the respective funds, a portion of which is payable by current and former senior Carlyle professionals.
(6) In connection with our initial public offering, we entered into a tax receivable agreement with the limited partners of the Carlyle Holdings partnerships
whereby we agreed to pay such limited partners 85% of the amount of cash tax savings, if any, in U.S. federal, state and local income tax realized as a
result of increases in tax basis resulting from exchanges of Carlyle Holdings partnership units for common units of The Carlyle Group L.P. From and
after the consummation of the Conversion, former holders of Carlyle Holdings partnership units do not have any rights to payments under the tax
receivable agreement except for payment obligations pre-existing at the time of the Conversion with respect to exchanges that occurred prior to the
Conversion. These obligations are more than offset by the future cash tax savings that we are expected to realize.

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(7) These obligations represent amounts due to holders of debt securities issued by the consolidated CLO vehicles. These obligations include interest to be
paid on debt securities issued by the consolidated CLO vehicles. Interest payments assume that no prepayments are made and loans are held until
maturity. For debt securities with rights only to the residual value of the CLO and no stated interest, no interest payments were included in this
calculation. Interest payments on variable-rate debt securities are based on interest rates in effect as of December 31, 2025 , at spreads to market rates
pursuant to the debt agreements, and range from 1.65% to 10.90% .
(8) These obligations represent commitments of the CLOs to fund certain investments. These amounts are generally due on demand and are therefore
presented in the less than one year category.
Excluded from the table above are liabilities for uncertain tax positions of $41.4 million at December 31, 2025 as we
are unable to estimate when such amounts may be paid.
Contingent Cash Payments For Business Acquisitions and Strategic Investments
We have certain contingent cash obligations associated with our acquisition of Abingworth, which are accounted for as
compensation expense, and are accrued over the service period. If earned, payments are made in the quarter following the
performance year to which the payments relate. The contingent cash obligations relate to future incentive payments of up to
$130.0 million that are payable upon the achievement of certain performance targets during 2025 through 2028, which is the
maximum amount that could be paid as of December 31, 2025 . Through December 31, 2025 , we paid $4.3 million related to
these contingent obligations.
In connection with our acquisition of Carlyle Aviation Partners, we had contingent cash payments related to an earn-
out of up to $150.0 million that were payable upon the achievement of certain revenue and earnings performance targets during
2020 through 2025. We previously entered into a termination and settlement agreement with respect to the earn-out and made a
final payment of $1.0 million during the first quarter of 2025 for total earn-out payments of $124.7 million .
Risk Retention Rules
We will continue to comply with the risk retention rules governing CLOs issued in Europe for which we are a sponsor,
which require a combination of capital from our balance sheet, commitments from senior Carlyle professionals, and/or third-
party financing. For additional information related to the U.S. Risk Retention Rules, see Part I, Item 1A “Risk Factors—Risks
Related to Regulation and Litigation—Financial regulations and changes thereto in the United States could adversely affect our
business and the possibility of increased regulatory focus could result in additional burdens and expenses on our business.”
Guarantees
See Note 8 , Commitments and Contingencies , to the consolidated financial statements included in this Annual Report
on Form 10-K for information related to all of our material guarantees.
Indemnifications
In many of our service contracts, we agree to indemnify the third-party service provider under certain circumstances.
The terms of the indemnities vary from contract to contract, and the amount of indemnification liability, if any, cannot be
determined and has not been included in the table above or recorded in our consolidated financial statements as of
December 31, 2025 .
See Note 8 , Commitments and Contingencies , to the consolidated financial statements included in this Annual Report
on Form 10-K for information related to indemnifications.
Contingent Obligations (Giveback)
Carried interest is ultimately realized when: (1) an underlying investment is profitably disposed of, (2) certain costs
borne by the limited partner investors have been reimbursed, (3) the fund’s cumulative returns are in excess of the preferred
return, and (4) we have decided to collect carry rather than return additional capital to limited partner investors. Realized carried
interest may be required to be returned by us in future periods if the fund’s investment values decline below certain levels.
When the fair value of a fund’s investments remains constant or falls below certain return hurdles, previously recognized
performance allocations are reversed. See Note 8 , Commitments and Contingencies , to the consolidated financial statements
included in this Annual Report on Form 10-K for additional information related to our contingent obligations (giveback).
Other Contingencies
In the ordinary course of business, we are a party to litigation, investigations, inquiries, employment-related matters,
disputes and other potential claims. We discuss certain of these matters in Note 8 , Commitments and Contingencies , to the
consolidated financial statements included in this Annual Report on Form 10-K.

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Carlyle Common Stock
A rollforward of our common stock outstanding for the years ended December 31, 2025 and 2024 are as follows:

Year Ended Ended December 31,

2025

2024

(Dollars in millions)

Balance, beginning of period

357,183,632

361,326,172

Shares issued

7,714,141

4,842,417

Shares repurchased/retired

(7,523,750)

(8,984,957)

Balance, end of period

357,374,023

357,183,632

Shares of The Carlyle Group Inc. common stock issued during the period presented in the tables above relate to the
vesting of the Company’s restricted stock units and shares issued and delivered in connection with our equity method
investment in NGP during the years ended December 31, 2025 and 2024. Shares of The Carlyle Group Inc. common stock
repurchased during the years ended December 31, 2025 and 2024 relate to shares repurchased and subsequently retired as part
of our share repurchase programs. Shares of The Carlyle Group Inc. common stock issued and repurchased/retired during the
years ended December 31, 2025 and 2024 include shares retired as part of the net share settlement of equity-based awards. 
The total shares as of December 31, 2025 as shown above exclude approximately 3.8 million net common shares,
representing the vesting of restricted stock units subsequent to December 31, 2025 that will participate in the common
shareholder dividend that will be paid on February 20, 2026.

Critical Accounting Policies and Estimates
The preparation of our consolidated financial statements in conformity with U.S. GAAP requires our management to
make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related
disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information
currently available to us and on various other assumptions management believes to be reasonable under the circumstances.
Actual results could vary from those estimates and we may change our estimates and assumptions in future evaluations.
Changes in these estimates and assumptions may have a material effect on our results of operations and financial condition. We
believe the critical accounting policies discussed below affect our more significant judgments and estimates used in the
preparation of our consolidated financial statements and should be read in conjunction with our consolidated financial
statements and related notes included in this report.
Basis of Accounting . The Company’s consolidated financial statements are prepared in accordance with U.S. GAAP.
Management has determined that the Company’s funds are investment companies under U.S. GAAP for the purposes of
financial reporting. U.S. GAAP for an investment company requires investments to be recorded at estimated fair value and the
unrealized gains and/or losses in an investment’s fair value are recognized on a current basis in the consolidated statements of
operations. Additionally, the funds do not consolidate their majority-owned and controlled investments. In the preparation of its
consolidated financial statements, the Company has retained the specialized accounting for the Funds.
Principles of Consolidation. The Company consolidates all entities that it controls either through a majority voting
interest or as the primary beneficiary of variable interest entities (“VIEs”). The Company describes the policies and procedures
it uses in evaluating whether an entity is consolidated in Note 2 , Summary of Significant Accounting Policies , to the
consolidated financial statements included in this Annual Report on Form 10-K. As part of its consolidation procedures, the
Company evaluates: (1) whether it holds a variable interest in an entity, (2) whether the entity is a VIE, and (3) whether the
Company’s involvement would make it the primary beneficiary.
• In evaluating whether the Company holds a variable interest, fees (including management fees, incentive fees and
performance allocations) that are customary and commensurate with the level of services provided, and where the
Company does not hold other economic interests in the entity that would absorb more than an insignificant
amount of the expected losses or returns of the entity, are not considered variable interests. The Company
considers all economic interests, including indirect interests, to determine if a fee is considered a variable interest.
• For those entities where the Company holds a variable interest, the Company determines whether each of these
entities qualifies as a VIE and, if so, whether or not the Company is the primary beneficiary. The assessment of
whether the entity is a VIE is generally performed qualitatively, which requires judgment. These judgments
include: (a) determining whether the equity investment at risk is sufficient to permit the entity to finance its
activities without additional subordinated financial support, (b) evaluating whether the equity holders, as a group,

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can make decisions that have a significant effect on the economic performance of the entity, (c) determining
whether two or more parties’ equity interests should be aggregated, and (d) determining whether the equity
investors have proportionate voting rights to their obligations to absorb losses or rights to receive returns from an
entity.
• For entities that are determined to be VIEs, the Company consolidates those entities where it has concluded it is
the primary beneficiary. The primary beneficiary is defined as the variable interest holder with (a) the power to
direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the
obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be
significant to the VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its
economic interests in the entity held either directly or indirectly by the Company, such as the Company’s 10.5%
indirect ownership interest in Fortitude.
Changes to these judgments could result in a change in the consolidation conclusion for a legal entity.
Entities that do not qualify as VIEs are generally assessed for consolidation as voting interest entities. Under the voting
interest entity model, the Company consolidates those entities it controls through a majority voting interest.
Performance Allocations. As of December 31, 2025 , we had accrued performance allocations of $7.6 billion .
Performance allocations consist principally of the performance-based allocation of profits from certain of the funds to which the
Company is entitled (commonly referred to as carried interest). The Company is generally entitled to a 20% allocation (which
can vary by fund) of the net realized income or gain as a carried interest after returning the invested capital, the allocation of
preferred returns and return of certain fund costs (generally subject to catch-up provisions as set forth in the fund limited
partnership agreement). Carried interest is ultimately realized when: (i) an underlying investment is profitably disposed of,
(ii) certain costs borne by the limited partner investors have been reimbursed, (iii) the fund’s cumulative returns are in excess of
the preferred return, and (iv) the Company has decided to collect carry rather than return additional capital to limited partner
investors.
Carried interest is recognized upon appreciation of the funds’ investment values above certain return hurdles set forth
in each respective partnership agreement, the Company recognizes revenues attributable to performance allocations based upon
the amount that would be due pursuant to the fund partnership agreement at each period end as if the funds were terminated at
that date. Accordingly, the amount recognized as investment income related to performance allocations reflects the Company’s
share of the gains and losses of the associated funds’ underlying investments measured at their then-current fair values relative
to the fair values as of the end of the prior period. Because of the inherent uncertainty in measuring the fair value of investments
in the absence of observable market prices as discussed below, these estimated values may differ significantly from the values
that would have been used had a ready market for the investments existed, and it is reasonably possible that the difference could
be material. If, at December 31, 2025 , all of the investments held by the Company’s funds were deemed worthless, a possibility
that management views as remote, the amount of realized and distributed carried interest subject to potential giveback would be
$1.5 billion , on an after-tax basis where applicable, of which approximately $0.6 billion would be the responsibility of current
and former senior Carlyle professionals.
See Note 2 , Summary of Significant Accounting Policies , to the consolidated financial statements included in this
Annual Report on Form 10-K for information related to performance allocations for various fund types, preferred return hurdle
rates, the timing of performance allocation recognition in investment income, and the potential for performance allocation
income reversal.
Performance Allocation Related Compensation. As of December 31, 2025 , we had accrued performance allocations
and incentive fee related compensation of $5.1 billion . A portion of the performance allocations earned is due to employees and
advisers of the Company. These amounts are accounted for as compensation expense in conjunction with the recognition of the
related performance allocation revenue and, until paid, are recognized as a component of the accrued compensation and benefits
liability. Accordingly, upon a reversal of performance allocation revenue, the related compensation expense, if any, is also
reversed.
Income Taxes. The Carlyle Group Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S.
federal (and state and local) corporate income taxes. Based on applicable federal, foreign, state and local tax laws, the Company
records a provision for income taxes for certain entities. Tax positions taken by the Company are subject to periodic audit by
U.S. federal, state, local and foreign taxing authorities.
As of December 31, 2025 , we had gross deferred tax assets of $1.8 billion . The Company accounts for income taxes
using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future

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consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recorded on
the Company’s gross deferred tax assets when it is “more likely than not” that such asset will not be realized. When evaluating
the realizability of the Company’s deferred tax assets, all evidence, both positive and negative, is evaluated. As of
December 31, 2025 , we recorded a valuation allowance of $74.0 million on our gross deferred tax assets. Items considered in
this analysis include the ability to carry back losses, the reversal of temporary differences, tax planning strategies, and
expectations of future earnings. Changes in judgment as it relates to the realizability of these assets, as well as potential changes
in corporate tax rates would have the effect of significantly reducing the value of the deferred tax assets.
Under U.S. GAAP for income taxes, the amount of tax benefit to be recognized is the amount of benefit that is “more
likely than not” to be sustained upon examination. The Company analyzes its tax filing positions in all of the U.S. federal, state,
local and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these
jurisdictions. If, based on this analysis, the Company determines that uncertainties in tax positions exist, a liability is
established, which is included in accounts payable, accrued expenses and other liabilities in the consolidated financial
statements. As of December 31, 2025 , we had unrecognized tax benefits of $41.4 million , which if recognized would result in a
reduction in the provision for income taxes of $29.2 million .
Fair Value Measurement. In the absence of observable market prices, the Company values its investments and its
funds’ investments using valuation methodologies applied on a consistent basis. For some investments little market activity
may exist. Management’s determination of fair value is then based on the best information available in the circumstances and
may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a
combination of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks.
Investments for which market prices are not observable include private investments in the equity of operating companies and
real estate properties, and certain debt positions. The valuation technique for each of these investments is described in Note 2 ,
Summary of Significant Accounting Policies , to the consolidated financial statements included in this Annual Report on Form
10-K.
Valuations of the funds’ investments are used in the calculation of accrued performance allocations, discussed above.
The valuation methodologies can involve subjective judgments, and the fair value of assets established pursuant to such
methodologies may be incorrect, which could result in the misstatement of fund performance and accrued performance
allocations. Because there is significant uncertainty in the valuation of, or in the stability of the value of, illiquid investments,
the fair values of such investments as reflected in an investment fund’s net asset value do not necessarily reflect the prices that
would be obtained by us on behalf of the investment fund when such investments are realized. Realizations at values
significantly lower than the values at which investments have been reflected in prior fund net asset values would result in
reduced earnings or losses for the applicable fund, the loss of potential performance allocations and incentive fees. Changes in
values attributed to investments from quarter to quarter may result in volatility in the net asset values and results of operations
that we report from period to period. Also, a situation where asset values turn out to be materially different than values reflected
in prior fund net asset values could cause investors to lose confidence in us, which could in turn result in difficulty in raising
additional funds. See Part I, Item 1A “Risk Factors—Risks Related to Our Business Operations—Risks Related to the Assets
We Manage—Valuation methodologies for certain assets in our funds can involve subjective judgments, and the fair value of
assets established pursuant to such methodologies may be incorrect, which could result in the misstatement of fund performance
and accrued performance allocations.”
Principal Equity Method Investments. The Company accounts for all investments in which it has or is otherwise
presumed to have significant influence, including investments in the unconsolidated funds and strategic investments, using the
equity method of accounting. The carrying value of equity method investments is determined based on amounts invested by the
Company, adjusted for the equity in earnings or losses of the investee allocated based on the respective partnership or other
agreement, less distributions received. The Company evaluates its equity method investments for impairment whenever events
or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.
Our equity method investment in NGP entitles us to up to 55% of the management fee related revenue of the NGP
entities that serve as advisors to the NGP Energy Funds and is subject to impairment under the U.S. GAAP accounting for
equity method investments. We evaluate our equity method investment in NGP for impairment whenever events or changes in
circumstances indicate that the carrying amount of the investment may not be recoverable, but no less than quarterly. For
example, challenges with fundraising, lower future management fees, or a change in our economic arrangement could cause an
impairment of our investment in NGP in the future. For more information on t he Restructuring and the resulting impairment of
our investment in NGP, see Note 4 , Investments , to the consolidated financial statements.
Equity-based Compensation. During the year ended December 31, 2025 , we recognized $374.7 million in equity-based
compensation expense. Compensation expense relating to the issuance of equity-based awards to Carlyle employees is

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measured at fair value on the grant date. In determining the aggregate grant-date fair value of awards with market-based
conditions, we use a Monte Carlo simulation which requires certain assumptions and estimates such as the volatility of our
future share price, and changes in those assumptions could result in materially different results. Of the $374.7 million in equity-
based compensation expense recognized during the year ended December 31, 2025 , approximately $115.8 million related to
awards with market-based conditions.
Intangible Assets and Goodwill. The Company’s intangible assets consist of acquired contractual rights to earn future
fee income, including management and advisory fees, customer relationships, and acquired trademarks. We allocate the fair
value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their
estimated fair values. The excess of the fair value of purchase consideration over the fair value of these identifiable assets and
liabilities is recorded as goodwill. These valuations require management to make significant judgments, assumptions and
estimates. The allocation of purchase consideration to identifiable assets and liabilities affects our amortization expense, as
acquired finite-lived intangible assets are amortized over their estimated useful lives, whereas goodwill is not amortized.
As of December 31, 2025 , we had intangible assets, net of accumulated amortization, of $507.1 million , including
$104.6 million of goodwill. Our finite-lived intangible assets have estimated useful lives which range from four to eight years,
and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset
may not be recoverable. Goodwill represents the excess of cost over the identifiable net assets of businesses acquired and is
recorded in the functional currency of the acquired entity. Goodwill is recognized as an asset and is reviewed for impairment
annually as of October 1 and between annual tests when events and circumstances indicate that impairment may have occurred.
Impairment testing requires the assessment of both qualitative and quantitative factors, including, but not limited to
whether there has been a significant or adverse change in the business climate that could affect the value of an asset and/or
significant or adverse changes in cash flow projections or earnings forecasts. These assessments require management to make
judgments, assumptions and estimates. As of December 31, 2025 , we continue to believe our intangible assets and goodwill are
not impaired.
Recent Accounting Pronouncements
We discuss recent accounting pronouncements in Note 2 , Summary of Significant Accounting Policies , to the
consolidated financial statements included in this Annual Report on Form 10-K.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our primary exposure to market risk is related to our role as general partner or investment advisor to our investment
funds and the sensitivities to movements in the fair value of their investments, including the effect on management fees,
incentive fees, performance allocations and principal investment income.
Although our investment funds share many common themes, each of our asset management asset classes runs its own
investment and risk management processes, subject to our overall risk tolerance and philosophy. The investment process of our
investment funds involves a comprehensive due diligence approach, including review of the reputation of shareholders and
management, company size and sensitivity of cash flow generation, business sector and competitive risks, portfolio fit, exit
risks and other key factors highlighted by the deal team. Key investment decisions are subject to approval by both the fund-
level managing directors, as well as the investment committee, which is generally composed of one or more of the three
founding partners, one “sector” head, one or more advisors and senior investment professionals associated with that particular
fund. Once an investment in a portfolio company has been made, our fund teams closely monitor the performance of the
portfolio company, generally through frequent contact with management and the receipt of financial and management reports.
Effect on Fund Management Fees
Management fees will only be directly affected by short-term changes in market conditions to the extent they are based
on NAV or represent permanent impairments of value. These management fees will be increased (or reduced) in direct
proportion to the effect of changes in the market value of our investments in the related funds. In addition, the terms of the
governing agreements with respect to certain of our carry funds provide that the management fee base will be reduced when the
aggregate fair market value of a fund’s investments is below its cost. The proportion of our management fees that are based on
NAV is dependent on the number and types of investment funds in existence and the current stage of each fund’s life cycle.

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Effect on Performance Allocations
Performance allocations reflect revenue primarily from carried interest on our carry funds. In our discussion of “Key
Financial Measures” and “Critical Accounting Policies,” we disclose that performance allocations are recognized upon
appreciation of the valuation of our funds’ investments above certain return hurdles and are based upon the amount that would
be due to Carlyle at each reporting date as if the funds were liquidated at their then-current fair values. Changes in the fair value
of the funds’ investments may materially impact performance allocations depending upon the respective funds’ performance to
date as compared to its hurdle rate and the related carry waterfall.
The following table summarizes the incremental impact, including our Consolidated Funds, of a 10% change in total
remaining fair value by segment as of December 31, 2025 on our performance allocations revenue:

10% Increase
in Total
Remaining
Fair Value

10% Decrease
in Total
Remaining
Fair Value

 

(Dollars in millions)

Global Private Equity

$ 2,030.7

$ (2,797.7)

Global Credit

245.6

(287.7)

Carlyle AlpInvest

448.0

(505.9)

Total

$ 2,724.3

$ (3,591.3)

The effect of the variability in performance allocations revenue would be in part offset by performance allocation
related compensation.
Effect on Assets Under Management
Generally, our Fee-earning assets under management are not affected by changes in valuation. However, total assets
under management is impacted by valuation changes to net asset value. The table below shows the remaining fair value:

Remaining
Fair Value

 

(Dollars in millions)

Global Private Equity

$ 124,800

Global Credit

$ 191,995

Carlyle AlpInvest

$ 72,399

Exchange Rate Risk
Our investment funds hold investments that are denominated in non-U.S. dollar currencies that may be affected by
movements in the rate of exchange between the U.S. dollar and non-U.S. dollar currencies. Non-U.S. dollar denominated assets
and liabilities are translated at year-end rates of exchange, and the consolidated statements of operations accounts are translated
at rates of exchange in effect throughout the year. Additionally, a portion of our management fees are denominated in non-U.S.
dollar currencies. We estimate that as of December 31, 2025 , if there was a 10% decline in the rate of exchange of all foreign
currencies against the U.S. dollar, the impact on our consolidated results of operations for the year then ended would be as
follows: (a) fund management fees would decrease by $60.5 million, (b) performance allocations would decrease by $27.0
million, and (c) principal investment income would increase by $1.5 million.
Interest Rate Risk
We have obligations under our CLO term loans that accrue interest at variable rates. Interest rate changes may
therefore affect the amount of interest payments, future earnings and cash flows. The CLO term loans incur interest at
EURIBOR or SOFR plus an applicable rate. We do not have any interest rate swaps in place for these borrowings.

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Based on our debt obligations payable as of December 31, 2025 , we estimate that interest expense relating to variable
rates would increase by approximately $3.5 million on an annual basis in the event interest rates were to increase by one
percentage point.
Credit Risk
Certain of our investment funds hold derivative instruments that contain an element of risk in the event that the
counterparties are unable to meet the terms of such agreements. In addition, the Company is subject to credit risk should a
financial institution be unable to fulfill its obligations. We minimize our risk exposure by limiting the counterparties with which
we enter into contracts to banks and investment banks who meet established credit and capital guidelines.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of The Carlyle Group Inc.:
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of The Carlyle Group Inc. (the Company) as of December 31,
2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in equity and cash flows for
each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the
“consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects,
the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for
each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting
principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in
Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
(2013 framework) and our report dated February 27, 2026 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on
the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that
was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that
are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The
communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken
as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit
matter or on the accounts or disclosures to which it relates.

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Measurement of principal equity method investments, including accrued performance allocations

Description of the
Matter

At December 31, 2025, the carrying value of the Company’s investments totaled
approximately $11.2 billion. As discussed in Notes 2 and 4 to the consolidated financial
statements, a significant input to the measurement of the Company’s principal equity method
investments in the funds and accrued performance allocations, is management’s estimate of
the fair value of the investments held by each fund. Management estimates the fair value of
the funds’ investments, including investments in the equity of private operating companies,
real estate properties and certain debt positions, by applying the methodologies outlined in
Notes 2 and 4 and using unobservable inputs and assumptions.

Auditing management’s estimates of the fair value of certain of the funds’ investments using
significant unobservable inputs and assumptions was complex and judgmental because these
investments exhibit higher estimation uncertainty.

How We Addressed
the Matter in Our
Audit

We obtained an understanding, evaluated the design, and tested the operating effectiveness of
controls over the funds’ investment valuation process. This included management's review
controls over the assessment of the methodologies, significant inputs and assumptions
included in the fair value estimates, as well as management’s review around the completeness,
accuracy and reasonableness of the data used in these estimates.

Our audit procedures related to a sample of investment valuations using significant
unobservable inputs included, among others, assessing whether the valuation methodologies
used were appropriate and testing the mathematical accuracy of the valuation models.
For a sample of investment valuations, we obtained management’s valuation models and
compared objective inputs used in the models to agreements or underlying source documents
provided by the Company. We assessed the appropriateness of certain unobservable inputs
and assumptions used in the valuation models by comparing them to underlying support or
available market data and evaluating the appropriateness of adjustments. Our procedures
varied based on the nature of the investment selected for testing.
For example, for certain investments in the equity of private operating companies, we
assessed the appropriateness of management’s determination of public market comparable
companies and similar transactions. For these selected investments, we also evaluated
adjustments applied to the selected earnings before interest, taxes, depreciation and
amortization (EBITDA) multiple or discount rate derived from the comparable companies by
considering investee specific and relevant market information.
For certain investments, we independently developed fair value estimates, with the support of
valuation specialists, using investee and market information and compared them to the funds’
fair value estimates.
For a sample of investments that were sold during the year, we performed procedures to
assess the historical reasonableness of management’s estimates. We also evaluated subsequent
events and transactions and considered whether they corroborated or contradicted the year-
end estimates. 

/s/ Ernst & Young LLP
We have served as the Company’s auditor since 2002.
Tysons, Virginia
February 27, 2026

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Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of The Carlyle Group Inc.:
Opinion on Internal Control Over Financial Reporting
We have audited The Carlyle Group Inc.’s internal control over financial reporting as of December 31, 2025, based on criteria
established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (2013 framework) (the COSO criteria). In our opinion, The Carlyle Group Inc. (the Company) maintained, in all
material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated
statements of operations, comprehensive income, changes in equity and cash flows for each of the three years in the period
ended December 31, 2025, and the related notes and our report dated February 27, 2026 expressed an unqualified opinion
thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report
on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control
over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects. 
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and
performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
Tysons, Virginia
February 27, 2026

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The Carlyle Group Inc.
Consolidated Balance Sheets
(Dollars in millions)

 

December 31,

 

2025

2024

Assets

Cash and cash equivalents

$ 1,970.2

$ 1,266.0

Cash and cash equivalents held at Consolidated Funds

1,235.1

830.4

Investments, including accrued performance allocations of $ 7,620.3 and $ 7,053.5 as of December 31,
2025 and 2024 , respectively

11,152.7

10,936.7

Investments of Consolidated Funds

12,519.8

7,782.4

Due from affiliates and other receivables, net

834.8

805.6

Due from affiliates and other receivables of Consolidated Funds, net

206.4

237.1

Fixed assets, net

224.9

185.3

Lease right-of-use assets, net

331.9

341.4

Deposits and other

100.9

56.9

Intangible assets, net

507.1

634.1

Deferred tax assets

32.2

27.6

Total assets

$ 29,116.0

$ 23,103.5

Liabilities and equity

Debt obligations

$ 2,997.0

$ 2,143.5

Loans payable of Consolidated Funds

10,426.0

6,864.2

Accounts payable, accrued expenses and other liabilities

543.7

389.8

Accrued compensation and benefits

5,849.4

5,446.6

Due to affiliates

203.9

241.9

Deferred revenue

129.2

138.7

Deferred tax liabilities

106.3

137.0

Other liabilities of Consolidated Funds

1,260.4

861.6

Lease liabilities

470.2

488.6

Accrued giveback obligations

72.8

44.0

Total liabilities

22,058.9

16,755.9

Commitments and contingencies

Common stock, $ 0.01 par value, 100,000,000,000 shares authorized ( 357,374,023 and 357,183,632
shares issued and outstanding as of December 31, 2025 and December 31, 2024 , respectively)

3.6

3.6

Additional paid-in capital

4,285.8

3,892.3

Retained earnings

1,642.3

2,040.8

Accumulated other comprehensive loss

( 170.2 )

( 329.8 )

Non-controlling interests in consolidated entities

1,295.6

740.7

Total equity

7,057.1

6,347.6

Total liabilities and equity

$ 29,116.0

$ 23,103.5

See accompanying notes.

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The Carlyle Group Inc.
Consolidated Statements of Operations
(Dollars in millions, except share and per share data)

 

Year Ended December 31,

 

2025

2024

2023

Revenues

Fund management fees

$ 2,396.6

$ 2,188.1

$ 2,043.2

Incentive fees

190.5

133.5

93.7

Investment income

Performance allocations

1,222.5

2,015.7

( 88.6 )

Principal investment income

119.2

238.7

133.4

Total investment income

1,341.7

2,254.4

44.8

Interest and other income

215.7

218.2

212.1

Interest and other income of Consolidated Funds

635.3

631.6

570.1

Total revenues

4,779.8

5,425.8

2,963.9

Expenses

Compensation and benefits

Cash-based compensation and benefits

895.2

875.5

1,023.7

Equity-based compensation

374.7

467.9

249.1

Performance allocations and incentive fee related compensation

936.3

1,361.5

1,103.7

Total compensation and benefits

2,206.2

2,704.9

2,376.5

General, administrative and other expenses

784.3

665.6

652.1

Interest

123.9

121.0

123.8

Interest and other expenses of Consolidated Funds

624.3

564.9

419.1

Other non-operating (income) expenses

( 0.2 )

( 0.3 )

0.2

Total expenses

3,738.5

4,056.1

3,571.7

Other income

Net investment income of Consolidated Funds

117.9

24.0

6.9

Income (loss) before provision for income taxes

1,159.2

1,393.7

( 600.9 )

Provision (benefit) for income taxes

214.5

302.6

( 104.2 )

Net income (loss)

944.7

1,091.1

( 496.7 )

Net income attributable to non-controlling interests in consolidated entities

136.0

70.7

111.7

Net income (loss) attributable to The Carlyle Group Inc.

$ 808.7

$ 1,020.4

$ ( 608.4 )

Net income (loss) attributable to The Carlyle Group Inc. per common share (see Note 12 )

Basic

$ 2.25

$ 2.85

$ ( 1.68 )

Diluted

$ 2.18

$ 2.77

$ ( 1.68 )

Weighted-average common shares

Basic

359,681,070

358,584,203

361,395,823

Diluted

370,914,035

368,024,612

361,395,823

Substantially all revenue is earned from affiliates of the Company. See accompanying notes.

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The Carlyle Group Inc.
Consolidated Statements of Comprehensive Income
(Dollars in millions)
 

 

Year Ended December 31,

 

2025

2024

2023

Net income (loss)

$ 944.7

$ 1,091.1

$ ( 496.7 )

Other comprehensive income (loss), net of tax

Foreign currency translation adjustments, net of income tax (benefit) expense of $( 8.9 ) ,
$( 11.8 ) and $ 10.9 for the years ended December 31, 2025, 2024 and 2023 , respectively

168.2

( 39.8 )

41.7

Defined benefit plans, net

Unrealized net income (loss) for the period, net of income tax (benefit) expense of
$ 1.7 , $ 0.9 and $( 1.3 ) for the years ended December 31, 2025, 2024 and 2023 ,
respectively

4.7

2.8

( 3.9 )

Less: reclassification adjustment for unrecognized loss during the period included
in base compensation expense, net of income tax benefit of $( 0.1 ) , $( 0.1 ) and
$( 0.1 ) for the years ended December 31, 2025, 2024 and 2023 , respectively

( 0.3 )

( 0.2 )

( 0.3 )

Other comprehensive income (loss)

172.6

( 37.2 )

37.5

Comprehensive income (loss)

1,117.3

1,053.9

( 459.2 )

Comprehensive income attributable to non-controlling interests in consolidated entities

149.0

66.0

124.3

Comprehensive income (loss) attributable to The Carlyle Group Inc.

$ 968.3

$ 987.9

$ ( 583.5 )

See accompanying notes.

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The Carlyle Group Inc.
Consolidated Statements of Changes in Equity
(Dollars and shares in millions)

Common
Shares

Common
Stock

Additional
Paid-in Capital

Retained
Earnings
(Deficit)

Accumulated
Other
Comprehensive
Income (Loss)

Non-controlling
Interests in
Consolidated
Entities

Total
Equity

Balance at December 31, 2022

362.3

$ 3.6

$ 3,138.5

$ 3,401.1

$ ( 322.2 )

$ 600.3

$ 6,821.3

Shares repurchased

( 6.5 )

—

—

( 203.5 )

—

—

( 203.5 )

Net shares issued for equity-based awards

5.5

—

—

—

—

—

—

Equity-based compensation

—

—

255.1

—

—

—

255.1

Dividend-equivalent rights on certain equity-
based awards

—

—

9.4

( 9.4 )

—

—

—

Contributions

—

—

—

—

—

177.0

177.0

Dividends and distributions

—

—

—

( 497.7 )

—

( 139.7 )

( 637.4 )

Net income (loss)

—

—

—

( 608.4 )

—

111.7

( 496.7 )

Deconsolidation of Consolidated Entities

—

—

—

—

—

( 168.8 )

( 168.8 )

Currency translation adjustments

—

—

—

—

29.1

12.6

41.7

Defined benefit plans, net

—

—

—

—

( 4.2 )

—

( 4.2 )

Balance at December 31, 2023

361.3

$ 3.6

$ 3,403.0

$ 2,082.1

$ ( 297.3 )

$ 593.1

$ 5,784.5

Shares repurchased

( 9.0 )

( 0.1 )

—

( 395.6 )

—

—

( 395.7 )

Net shares issued for equity-based awards

4.9

—

—

( 159.0 )

—

—

( 159.0 )

Equity-based compensation

—

0.1

476.1

—

—

—

476.2

Dividend-equivalent rights on certain equity-
based awards

—

—

13.2

( 13.2 )

—

—

—

Contributions

—

—

—

—

—

319.5

319.5

Dividends and distributions

—

—

—

( 503.0 )

—

( 178.4 )

( 681.4 )

Net income

—

—

—

1,020.4

—

70.7

1,091.1

Change in ownership of a Consolidated Entity

—

—

—

9.1

—

( 9.1 )

—

Deconsolidation of Consolidated Entities

—

—

—

—

—

( 50.4 )

( 50.4 )

Currency translation adjustments

—

—

—

—

( 35.1 )

( 4.7 )

( 39.8 )

Defined benefit plans, net

—

—

—

—

2.6

—

2.6

Balance at December 31, 2024

357.2

$ 3.6

$ 3,892.3

$ 2,040.8

$ ( 329.8 )

$ 740.7

$ 6,347.6

Shares repurchased

( 7.5 )

( 0.1 )

—

( 399.9 )

—

—

( 400.0 )

Net shares issued for equity-based awards

7.7

—

—

( 286.5 )

—

—

( 286.5 )

Equity-based compensation

—

0.1

377.8

—

—

—

377.9

Dividend-equivalent rights on certain equity-
based awards

—

—

15.7

( 15.7 )

—

—

—

Initial consolidation of a Consolidated Entity

—

—

—

—

—

35.0

35.0

Contributions

—

—

—

—

—

711.7

711.7

Dividends and distributions

—

—

—

( 505.1 )

—

( 340.8 )

( 845.9 )

Net income

—

—

—

808.7

—

136.0

944.7

Currency translation adjustments

—

—

—

—

155.2

13.0

168.2

Defined benefit plans, net

—

—

—

—

4.4

—

4.4

Balance at December 31, 2025

357.4

$ 3.6

$ 4,285.8

$ 1,642.3

$ ( 170.2 )

$ 1,295.6

$ 7,057.1

See accompanying notes.

155

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The Carlyle Group Inc.
Consolidated Statements of Cash Flows
(Dollars in millions)

 

Year Ended December 31,

 

2025

2024

2023

Cash flows from operating activities

Net income (loss)

$ 944.7

$ 1,091.1

$ ( 496.7 )

Adjustments to reconcile net income (loss) to net cash flows from operating activities:

Depreciation and amortization

192.1

184.1

180.6

Equity-based compensation

374.7

467.9

249.1

Non-cash performance allocations and incentive fees, net

( 278.5 )

( 359.3 )

1,572.8

Non-cash principal investment (income) loss

( 93.8 )

( 209.6 )

( 123.9 )

Other non-cash amounts

33.9

1.8

23.8

Consolidated Funds related:

Realized/unrealized (gain) loss on investments of Consolidated Funds

( 16.5 )

( 96.4 )

( 246.9 )

Realized/unrealized (gain) loss from loans payable of Consolidated Funds

( 101.5 )

72.4

240.0

Purchases of investments by Consolidated Funds

( 11,700.4 )

( 7,447.9 )

( 3,084.7 )

Proceeds from sales and settlements of investments by Consolidated Funds

6,413.4

5,493.2

2,348.8

Non-cash interest income, net

( 29.2 )

( 20.8 )

( 27.2 )

Change in cash and cash equivalents held at Consolidated Funds

119.3

( 526.3 )

( 171.8 )

Change in other receivables held at Consolidated Funds

50.2

( 99.5 )

( 30.1 )

Change in other liabilities held at Consolidated Funds

170.7

508.0

97.1

Purchases of investments

( 403.6 )

( 385.9 )

( 301.2 )

Proceeds from the sale of investments

832.9

498.0

472.2

Payments of contingent consideration

( 2.7 )

( 4.1 )

( 68.6 )

Changes in deferred taxes, net

( 29.8 )

91.2

( 368.7 )

Change in due from affiliates and other receivables

44.7

( 27.6 )

( 33.4 )

Change in deposits and other

( 41.0 )

8.5

6.3

Change in accounts payable, accrued expenses and other liabilities

149.7

58.8

( 33.2 )

Change in accrued compensation and benefits

95.1

( 37.1 )

10.6

Change in due to affiliates

27.0

( 11.7 )

( 14.5 )

Change in lease right-of-use assets and lease liabilities

( 10.4 )

( 8.1 )

( 10.8 )

Change in deferred revenue

( 16.5 )

( 0.2 )

15.3

Net cash provided by (used in) operating activities

( 3,275.5 )

( 759.5 )

204.9

Cash flows from investing activities

Purchases of corporate treasury investments

—

( 5.0 )

( 187.3 )

Proceeds from corporate treasury investments

—

5.1

210.3

Purchases of fixed assets, net

( 99.4 )

( 77.7 )

( 66.6 )

Net cash used in investing activities

( 99.4 )

( 77.6 )

( 43.6 )

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The Carlyle Group Inc.
Consolidated Statements of Cash Flows
(Dollars in millions)

 

Year Ended December 31,

 

2025

2024

2023

Cash flows from financing activities

Borrowings under credit facilities

—

10.4

—

Repayments under credit facilities

—

( 10.4 )

—

Issuance of 5.050 % senior notes due 2035, net of financing costs

794.9

—

—

Proceeds from CLO borrowings, net of financing costs

90.0

0.7

12.0

Payments on CLO borrowings

( 56.5 )

( 120.5 )

( 17.2 )

Net borrowings on loans payable of Consolidated Funds

4,012.5

1,825.0

700.6

Dividends to common stockholders

( 505.1 )

( 503.0 )

( 497.7 )

Payment of deferred consideration for Carlyle Holdings units

—

( 68.8 )

( 68.8 )

Contributions from non-controlling interest holders

711.7

319.5

177.0

Distributions to non-controlling interest holders

( 340.8 )

( 178.4 )

( 139.7 )

Common shares repurchased and net share settlement of equity awards

( 686.5 )

( 554.6 )

( 203.5 )

Change in due to/from affiliates financing activities

( 29.8 )

( 37.1 )

( 62.3 )

Net cash provided by (used in) financing activities

3,990.4

682.8

( 99.6 )

Effect of foreign exchange rate changes

91.6

( 21.3 )

18.9

Increase (decrease) in cash, cash equivalents and restricted cash

707.1

( 175.6 )

80.6

Cash, cash equivalents and restricted cash, beginning of period

1,266.5

1,442.1

1,361.5

Cash, cash equivalents and restricted cash, end of period

$ 1,973.6

$ 1,266.5

$ 1,442.1

Supplemental cash disclosures

Cash paid for interest

$ 91.7

$ 93.6

$ 91.8

Cash paid for income taxes

$ 153.1

$ 218.8

$ 250.1

Supplemental non-cash disclosures

Initial consolidation of Consolidated Funds

$ 33.0

$ —

$ —

Net asset impact of deconsolidation of Consolidated Funds

$ ( 512.5 )

$ ( 131.2 )

$ ( 110.4 )

Reconciliation of cash, cash equivalents and restricted cash, end of period:

Cash and cash equivalents

$ 1,970.2

$ 1,266.0

$ 1,440.3

Restricted cash

3.4

0.5

1.8

Total cash, cash equivalents and restricted cash, end of period

$ 1,973.6

$ 1,266.5

$ 1,442.1

Cash and cash equivalents held at Consolidated Funds

$ 1,235.1

$ 830.4

$ 346.0

See accompanying notes.

157

Table of Contents
The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

1. Organization
Carlyle is one of the world’s largest global investment firms that deploys private capital across its business and
conducts its operations through three reportable segments: Global Private Equity, Global Credit, and Carlyle AlpInvest (see
Note 15 , Segment Reporting ). The Global Private Equity segment advises buyout, growth, real estate, and infrastructure &
natural resources funds. The Global Private Equity segment also includes the NGP Carry Funds advised by NGP. The Global
Credit segment advises funds and vehicles that pursue investment strategies including insurance solutions, liquid credit,
opportunistic credit, direct lending, asset-backed finance, aviation finance, infrastructure credit, cross-platform credit products,
and global capital markets. The Carlyle AlpInvest segment (formerly, Global Investment Solutions) advises global private
equity programs that pursue secondary purchases and financing of existing portfolios, managed co-investment programs, and
primary fund investments. Carlyle typically serves as the general partner, investment manager, or collateral manager, making
day-to-day investment decisions concerning the assets of these products.

2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements are prepared in accordance with accounting principles generally
accepted in the United States (“U.S. GAAP”) and include the accounts of the Company and its consolidated subsidiaries. In
addition, certain Carlyle-affiliated funds, related co-investment entities, and certain CLOs managed by the Company
(collectively, the “Consolidated Funds”) have been consolidated in the accompanying financial statements. Generally, the
consolidation of the Consolidated Funds has a gross-up effect on assets, liabilities and cash flows, but has no net effect on the
net income attributable to the Company beyond the capital contributed by the Company to the Consolidated Funds. The
economic ownership interests of the other investors in the Consolidated Funds are reflected as non-controlling interests in
consolidated entities in the accompanying consolidated financial statements. All of the investments held by the Consolidated
Funds and notes issued by the consolidated CLOs are presented at their estimated fair values in the Company’s consolidated
balance sheets. Interest and other income of the Consolidated Funds, interest expense and other expenses of the Consolidated
Funds, and net investment income (losses) of Consolidated Funds are included in the Company’s consolidated statements of
operations.
Management has determined that the Company’s funds are investment companies under U.S. GAAP for the purposes
of financial reporting. U.S. GAAP for an investment company requires investments to be recorded at estimated fair value and
the unrealized gains and/or losses in an investment’s fair value are recognized on a current basis in the statements of operations.
Additionally, the funds do not consolidate their majority-owned and controlled investme nt s. In the preparation of these
consolidated financial statements, the Company has retained the specialized accounting for the funds.
Principles of Consolidation
The Company consolidates all entities that it controls either through a majority voting interest or as the primary
beneficiary of variable interest entities (“VIEs”) .
The Company evaluates (1) whether it holds a variable interest in an entity, (2) whether the entity is a VIE, and (3)
whether the Company’s involvement would make it the primary beneficiary. In evaluating whether the Company holds a
variable interest, fees (including management fees, incentive fees and performance allocations) that are customary and
commensurate with the level of services provided, and where the Company does not hold other economic interests in the entity
that would absorb more than an insignificant amount of the expected losses or returns of the entity, are not considered variable
interests. The Company considers all economic interests, including indirect interests, to determine if a fee is considered a
variable interest.
For those entities where the Company holds a variable interest, the Company determines whether each of these entities
qualifies as a VIE and, if so, whether or not the Company is the primary beneficiary. The assessment of whether the entity is a
VIE is generally performed qualitatively, which requires judgment. These judgments include: (a) determining whether the
equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial
support, (b) evaluating whether the equity holders, as a group, can make decisions that have a significant effect on the economic
performance of the entity, (c) determining whether two or more parties’ equity interests should be aggregated, and (d)
determining whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to
receive returns from an entity.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

For entities that are determined to be VIEs, the Company consolidates those entities where it has concluded it is the
primary beneficiary. The primary beneficiary is defined as the variable interest holder with (a) the power to direct the activities
of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity
or the right to receive benefits from the entity that could potentially be significant to the VIE. In evaluating whether the
Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly
by the Company.
As of December 31, 2025 , assets and liabilities of the consolidated VIEs reflected in the consolidated balance sheets
were $ 14.0 billion and $ 11.7 billion , respectively. As of December 31, 2024, assets and liabilities of the consolidated VIEs
reflected in the consolidated balance sheets were $ 8.9  billion and $ 7.7  billion , respectively. Except to the extent of the
consolidated assets of the VIEs, the holders of the consolidated VIEs’ liabilities generally do not have recourse to the Company.
The Company’s Consolidated Funds are primarily CLOs, which are VIEs that issue loans payable that are backed by
diversified collateral asset portfolios consisting primarily of loans or structured debt. In exchange for managing the collateral
for the CLOs, the Company earns investment management fees, including in some cases subordinated management fees and
contingent incentive fees. In cases where the Company consolidates the CLOs (primarily because of a retained interest that is
significant to the CLO), those management fees and contingent incentive fees have been eliminated as intercompany
transactions. As of December 31, 2025 , the Company held $ 451.6 million of investments in these CLOs which represents its
maximum risk of loss. The Company’s investments in these CLOs are generally subordinated to other interests in the entities
and entitle the Company to receive a pro rata portion of the residual cash flows, if any, from the entities. Investors in the CLOs
have no recourse against the Company for any losses sustained in the CLO structure. The Company’s Consolidated Funds also
include certain investment funds in the Global Private Equity segment that are accounted for as consolidated VIEs due to the
Company providing financing to bridge investment purchases. As of December 31, 2025 , the Company held $ 1.1  billion of
notes receivable and investments related to these investment funds which represents its maximum risk of loss. The Company’s
Consolidated Funds also include certain funds in the Global Credit and Carlyle AlpInvest segments that are accounted for as
consolidated VIEs due to the Company having either a significant direct interest in these funds or significant indirect interest
via the Company’s investment in Fortitude (see Note 4 , Investments ).
Entities that do not qualify as VIEs are generally assessed for consolidation as voting interest entities. Under the voting
interest entity model, the Company consolidates those entities it controls through a majority voting interest.
All significant inter-entity transactions and balances of entities consolidated have been eliminated.
Investments in Unconsolidated Variable Interest Entities
The Company holds variable interests in certain VIEs that are not consolidated because the Company is not the
primary beneficiary, including its investments in certain credit vehicles and certain Carlyle AlpInvest vehicles, as well as its
strategic investment in NGP Management Company, L.L.C. (“NGP Management” and, together with its affiliates, “NGP”).
Refer to Note 4 , Investments , for information on the strategic investment in NGP. The Company’s involvement with such
entities is in the form of direct or indirect equity interests and fee arrangements. The maximum exposure to loss represents the
loss of assets recognized by the Company relating to its variable interests in these unconsolidated entities. The assets recognized
in the Company’s consolidated balance sheets related to the Company’s variable interests in these non-consolidated VIEs were
as follows :

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Investments

$ 776.5

$ 942.6

Accrued performance allocations

756.0

580.8

Management fee receivables

57.2

62.4

Total

$ 1,589.7

$ 1,585.8

These amounts represent the Company’s maximum exposure to loss related to the unconsolidated VIEs as of
December 31, 2025 and 2024 .

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make assumptions and
estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
Management’s estimates are based on historical experiences and other factors, including expectations of future events that
management believes to be reasonable under the circumstances. It also requires management to exercise judgment in the
process of applying the Company’s accounting policies. Assumptions and estimates regarding the valuation of investments and
their resulting impact on performance allocations and incentive fees involve a higher degree of judgment and complexity and
these assumptions and estimates may be significant to the consolidated financial statements and the resulting impact on
performance allocations and incentive fees. Actual results could differ from these estimates and such differences could be
material.
Revenue Recognition
The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from
Contracts with Customers . Revenue is recognized when the Company transfers promised goods or services to customers in an
amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
ASC 606 includes a five-step framework that requires an entity to: (i) identify the contract(s) with a customer, which includes
assessing the collectability of the consideration to which it will be entitled in exchange for the goods or services transferred to
the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the
transaction price to the performance obligations in the contract, and (v) recognize revenue when the entity satisfies a
performance obligation.
The Company accounts for performance allocations that represent a performance-based capital allocation from fund
limited partners to the Company (commonly known as “carried interest”) as earnings from financial assets within the scope of
ASC 323, Investments—Equity Method and Joint Ventures , and therefore are not in the scope of ASC 606. In accordance with
ASC 323, the Company records equity method income (losses) as a component of investment income based on the change in its
proportionate claim on net assets of the investment fund, including performance allocations, assuming the investment fund was
liquidated as of each reporting date pursuant to each fund’s governing agreements. See Note 4 , Investments , for additional
information on the components of investments and investment income. Performance fees that do not meet the definition of
performance-based capital allocations are in the scope of ASC 606 and are included in incentive fees in the consolidated
statements of operations. The calculation of unrealized performance revenues utilizes investment valuations of the funds’
underlying investments, which are derived using the policies, methodologies and templates prepared by the Company’s
valuation group, as described in Note 3 , Fair Value Measurement .
While the determination of who is the customer in a contractual arrangement will be made on a contract-by-contract
basis, the customer will generally be the investment fund for the Company’s significant management and advisory contracts.
The customer determination impacts the Company’s analysis of the accounting for contract costs.
Fund Management Fees
The Company provides management services to funds in which it holds a general partner interest or to funds or certain
portfolio companies with which it has an investment advisory or investment management agreement. The Company considers
the performance obligations in its contracts with its funds to be the promise to provide (or to arrange for third parties to provide)
investment management services related to the management, policies and operations of the funds.
As it relates to the Company’s performance obligation to provide investment management services, the Company
typically satisfies this performance obligation over time as the services are rendered, as the funds simultaneously receive and
consume the benefits provided as the Company performs the service. The transaction price is the amount of consideration to
which the Company expects to be entitled in exchange for transferring the promised services to the funds. Management fees
earned from each investment management contract over the contract life represent variable consideration because the
consideration the Company is entitled to varies based on fluctuations in the basis for the management fee, for example fund net
asset value (“NAV”) or assets under management (“AUM”). Given that the management fee basis is susceptible to market
factors outside of the Company’s influence, management fees are constrained and, therefore, estimates of future period
management fees are generally not included in the transaction price. Revenue recognized for the investment management
services provided is generally the amount determined at the end of the period because that is when the uncertainty for that
period is resolved.

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Table of Contents
The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

For closed-end carry funds in the Global Private Equity segment, management fees generally range from 1.0 % to 2.0 %
of limited partners’ capital commitments during the fund’s commitment period. For closed-end carry funds in the Global Credit
segment, management fees generally range from 1.0 % to 2.0 % of limited partners’ invested capital. Following the expiration or
termination of the investment period, management fees generally are based on the lower of cost or fair value of invested capital
and the rate charged may also be reduced. These terms may vary for certain separately managed accounts, longer-dated carry
funds, and other closed-end funds. The Company will receive management fees during a specified period of time, which is
generally ten years from the initial closing date, or, in some instances, from the final closing date, but such termination date
may be earlier in certain limited circumstances or later if extended for successive one -year periods, typically up to a maximum
of two years . Depending upon the contracted terms of investment advisory or investment management and related agreements,
these fees are generally called semi-annually in advance and are recognized as earned over the subsequent six month period.
For certain longer-dated carry funds and certain other closed-end funds, management fees are called quarterly over the life of
the funds.
Within the Global Credit segment, for CLOs and other structured products, management fees generally range from
0.4 % to 0.5 % based on the total par amount of assets or the aggregate principal amount of the notes in the CLO and are
generally due quarterly in arrears based on the terms and recognized over the respective period. Management fees for the CLOs
and other structured products are governed by indentures and collateral management agreements. The Company will receive
management fees for the CLOs, generally for five to ten years after issuance, including after the CLO redemption date until all
eligible assets are disposed of or at such time the collateral manager waives fees at its discretion. Management fees for the
business development companies are due quarterly in arrears at annual rates that range from 1.0 % of capital under management
to 1.5 % of gross assets, excluding cash and cash equivalents. Management fees for CTAC are due monthly in arrears at an
annual rate of 1.0 % of the month-end value of the CTAC’s net assets. Carlyle Aviation Partners’ funds have varying
management fee arrangements depending on the strategy of the particular fund. Under the strategic advisory services agreement
with Fortitude, the Company earns a recurring management fee based on Fortitude’s general account assets, which adjusts
within an agreed upon range based on Fortitude’s overall profitability and is due quarterly in arrears. Management fees for
certain of our perpetual capital strategies and separately managed accounts in Global Credit have annual rates that generally
range from 0.10 % to 0.75 % , which are charged based on invested capital or the fair value of the underlying assets, though
management fee arrangements vary depending on the strategy of the particular account.
Management fees for the Company’s carry fund vehicles in the Carlyle AlpInvest segment generally range from 0.25 %
to 1.5 % of the vehicle’s capital commitments during the commitment fee period of the relevant fund. Following the expiration
of the commitment fee period, the management fees generally range from 0.25 % to 1.5 % on (i) the net invested capital, (ii) the
lower of cost or net asset value of the capital invested, or (iii) the net asset value for unrealized investments. Management fees
for the Carlyle AlpInvest carry fund vehicles are generally due quarterly in advance and recognized over the related quarter.
T he investment advisers to the CAPM and CAPS funds are entitled to receive a monthly management fee generally equal to
1.25 % on an annualized basis of the fund’s net asset value as of the last day of the month .
The Company also provides transaction advisory and portfolio advisory services to the portfolio companies, and where
covered by separate contractual agreements, recognizes fees for these services when the performance obligation has been
satisfied and collection is reasonably assured. The Company is generally required to offset its fund management fees earned
from the funds that have invested in the portfolio companies to which the service has been provided by a percentage of the
transaction and advisory fees allocable to those funds. This amount is referred to as the “rebate offset,” and is generally 100 % .
Transaction and advisory fees allocable to funds that do not pay fund management fees do not have a rebate offset. The
Company also recognizes underwriting fees from the Company’s loan syndication and capital markets business, Carlyle Global
Capital Markets. Fund management fees include transaction and portfolio advisory fees, as well as capital markets fees, of
$ 206.0 million , $ 152.5 million and $ 68.6 million for the years ended December 31, 2025, 2024 and 2023 , respectively, net of
rebate offsets as defined in the respective fund limited partnership agreements.
Fund management fees exclude the reimbursement of any partnership expenses paid by the Company on behalf of the
Carlyle funds pursuant to the limited partnership agreements, including amounts related to the pursuit of actual, proposed, or
unconsummated investments, professional fees, expenses associated with the acquisition, holding and disposition of
investments, and other fund administrative expenses. For the professional fees that the Company arranges for the investment
funds, the Company concluded that the nature of its promise is to arrange for the services to be provided and it does not control
the services provided by third parties before they are transferred to the customer. Therefore, the Company concluded it is acting
in the capacity of an agent. Accordingly, the reimbursement for these professional fees paid on behalf of the investment funds is
presented on a net basis in general, administrative and other expenses in the consolidated statements of operations.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

The Company also incurs certain costs, primarily employee travel and entertainment costs, employee compensation
and systems costs, for which it receives reimbursement from the investment funds in connection with its performance obligation
to provide investment and management services. For reimbursable travel, compensation and systems costs, the Company
concluded it controls the services provided by its employees and the resources used to develop applicable systems before they
are transferred to the customer and therefore is a principal. Accordingly, the reimbursement for these costs incurred by the
Company to manage the fund limited partnerships are presented on a gross basis in interest and other income in the
consolidated statements of operations and the expense in general, administrative and other expenses or cash-based
compensation and benefits expenses in the consolidated statements of operations.
Incentive Fees
T he Company is also entitled to receive performance-based incentive fees when the return on assets under
management exceeds certain benchmark returns or other performance targets. In such arrangements, incentive fees are
recognized when the performance benchmark has been achieved. Incentive fees are variable consideration because they are
contingent upon the investment vehicle achieving stipulated investment return hurdles. Investment returns are highly
susceptible to market factors outside of the Company’s influence. Accordingly, incentive fees are constrained until all
uncertainty is resolved. Estimates of future period incentive fees are generally not included in the transaction price because
these estimates are constrained. The transaction price for incentive fees is generally the amount determined at the end of each
accounting period to which they relate because that is when the uncertainty for that period is resolved, as these fees are not
subject to clawback. In such arrangements, the Company is entitled to an incentive fee allocation generally between 10.0 % and
17.5 % of either pre-incentive investment income or net profits, in some instances subject to a quarterly hurdle rate and catch-
up, payable quarterly .
Investment Income (Loss), including Performance Allocations
Investment income (loss) represents the unrealized and realized gains and losses resulting from the Company’s equity
method investments, including any associated general partner performance allocations, and other principal investments,
including CLOs.
General partner performance allocations consist of the allocation of profits from certain of the funds to which the
Company is entitled (commonly known as carried interest).
For closed-end carry funds in the Global Private Equity and Global Credit segments, the Company is generally entitled
to a 20 % allocation (or approximately 2 % to 12.5 % for most of the Carlyle AlpInvest segment carry fund vehicles) of the net
realized income or gain as a carried interest after returning the invested capital, the allocation of preferred returns of generally
7 % to 9 % and return of certain fund costs (generally subject to catch-up provisions as set forth in the fund limited partnership
agreement). These terms may vary on longer-dated funds, certain credit funds, and external co-investment vehicles. Carried
interest is recognized upon appreciation of the funds’ investment values above certain return hurdles set forth in each respective
partnership agreement. The Company recognizes revenues attributable to performance allocations based upon the amount that
would be due pursuant to the fund partnership agreement at each period end as if the funds were terminated at that date.
Accordingly, the amount recognized as investment income for performance allocations reflects the Company’s share of the
gains and losses of the associated funds’ underlying investments measured at their then-current fair values relative to the fair
values as of the end of the prior period. Because of the inherent uncertainty, these estimated values may differ significantly
from the values that would have been used had a ready market for the investments existed, and it is reasonably possible that the
difference could be material.
Carried interest is ultimately realized when: (i) an underlying investment is profitably disposed of, (ii) certain costs
borne by the limited partner investors have been reimbursed, (iii) the fund’s cumulative returns are in excess of the preferred
return, and (iv) the Company has decided to collect carry rather than return additional capital to limited partner investors.
Realized carried interest may be required to be returned by the Company in future periods if the fund’s investment values
decline below certain levels. When the fair value of a fund’s investments remains constant or falls below certain return hurdles,
previously recognized performance allocations are reversed. In all cases, each fund is considered separately in this regard, and
for a given fund, performance allocations can never be negative over the life of a fund. If upon a hypothetical liquidation of a
fund’s investments at their then-current fair values, previously recognized and distributed carried interest would be required to
be returned, a liability is established for the potential giveback obligation. As of December 31, 2025 and 2024 , the Company
accrued $ 72.8 million and $ 44.0 million for giveback obligations, respectively.

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Principal investment income (loss) is realized when the Company redeems all or a portion of its investment or when
the Company receives or is due cash income, such as dividends or distributions. Unrealized principal investment income (loss)
results from the Company’s proportionate share of the investee’s unrealized earnings, including changes in the fair value of the
underlying investment, as well as the reversal of unrealized gain (loss) at the time an investment is realized. As it relates to the
Company’s investments in NGP (see Note 4 , Investments ), principal investment income includes the related amortization of the
basis difference between the Company’s carrying value of its investment and the Company’s share of underlying net assets of
the investee, as well as the compensation expense associated with compensatory arrangements provided by the Company to
employees of its equity method investee, and impairment charges.
Interest Income
Interest income is recognized when earned. For debt securities representing non-investment grade beneficial interests
in securitizations, the effective yield is determined based on the estimated cash flows of the security. Changes in the effective
yield of these securities due to changes in estimated cash flows are recognized on a prospective basis as adjustments to interest
income in future periods. Interest income earned by the Company is included in interest and other income in the accompanying
consolidated statements of operations. Interest income of the Consolidated Funds was $ 577.2 million , $ 577.6 million and
$ 512.4 million for the years ended December 31, 2025, 2024 and 2023 , respectively, and is included in interest and other
income of Consolidated Funds in the accompanying consolidated statements of operations.
Credit Losses
The Company measures all expected credit losses for financial assets held at the reporting date in accordance with
ASC 326, Financial Instruments—Credit Losses , based on historical experience, current conditions, and reasonable and
supportable forecasts. The Company assesses the collection risk characteristics of the outstanding amounts in its due from
affiliates balance into the following pools of receivables:
• Reimbursable fund expenses receivables,
• Management fee receivables,
• Incentive fee receivables,
• Transaction fee receivables,
• Portfolio fee receivables, and
• Notes receivable.
The Company generally utilizes either historical credit loss information or discounted cash flows to calculate expected
credit losses for each pool. The Company’s receivables are predominantly with its investment funds, which have low risk of
credit loss based on the Company’s historical experience. Historical credit loss data may be adjusted for current conditions and
reasonable and supportable forecasts, including the Company’s expectation of near-term realization based on the liquidity of the
affiliated investment funds.
Compensation and Benefits
Cash-Based Compensation and Benefits – Cash-based compensation and benefits includes salaries, bonuses
(discretionary awards and guaranteed amounts), performance payment arrangements, and benefits paid and payable to Carlyle
employees. Bonus es are accrued over the service period to which they relate.
Equity-Based Compensation – Compensation expense relating to the issuance of equity-based awards is measured at
fair value on the grant date. The compensation expense for awards that vest over a future service period is recognized over the
relevant service period on a straight-line basis. The compensation expense for awards that do not require future service is
recognized immediately. Cash settled equity-based awards are classified as liabilities and are re-measured at the end of each
reporting period. The compensation expense for awards that contain performance conditions is recognized when it is probable
that the performance conditions will be achieved. The compensation expense for awards that contain market conditions is based
on a grant-date fair value that factors in the probability that the market conditions will be achieved and is recognized over the
requisite service period on a straight-line basis.
Certain equity-based awards contain dividend-equivalent rights, which are subject to the same terms and conditions,
including with respect to vesting and settlement, that apply to the related award. Dividend-equivalents are accounted for as a
reclassification from retained earnings to additional paid-in capital at the time dividends are declared and do not result in
incremental compensation expense.

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Equity-based awards issued to non-employees are generally recognized as general, administrative and other expenses,
except to the extent they are recognized as part of the Company’s equity method earnings because they are issued to employees
of equity method investees.
The Company recognizes equity-based award forfeitures in the period they occur as a reversal of previously
recognized compensation expense for awards that vest based on service and/or performance conditions. The reduction in
compensation expense is determined based on the specific awards forfeited during that period. Furthermore, the Company
recognizes all excess tax benefits and deficiencies as income tax benefit or expense in the consolidated statements of operations.
For awards with a market condition (e.g., achievement of certain stock price hurdles) that are forfeited due to the market
condition not being achieved, the related equity-based compensation expense is not reversed.
Performance Allocations and Incentive Fee Related Compensation – A portion of the performance allocations and
incentive fees and certain other interests earned is due to employees and advisors of the Company. These amounts are
accounted for as profit sharing interests in compensation expense in a systematic and rational manner in conjunction with the
recognition of the related performance allocations and incentive fee revenue and, until paid, are recognized as a component of
the accrued compensation and benefits liability. The liability is measured assuming the hypothetical liquidation of the
associated funds’ underlying investments as of the measurement date. Accordingly, upon a reversal of performance allocations
or incentive fee revenue, the related compensation expense, if any, is also reversed. As any vesting requirement is accelerated
upon realization, the service period is not considered substantive when recording the liability based on the hypothetical
liquidation value. As of December 31, 2025 and 2024 , the Company recorded a liability of $ 5.1 billion and $ 4.8 billion ,
respectively, related to the portion of accrued performance allocations and incentive fees due to employees and advisors, which
was included in accrued compensation and benefits in the accompanying consolidated balance sheets.
Income Taxes
The Carlyle Group Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S. federal, state,
and local corporate income taxes. Tax positions taken by the Company are subject to periodic audit by U.S. federal, state, local,
and foreign taxing authorities.
The Company accounts for income taxes using the asset and liability method, which requires the recognition of
deferred tax assets and liabilities for the expected future consequences of events that have been included in the financial
statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between
the financial statement reporting and the tax basis of assets and liabilities using enacted tax rates in effect for the period in
which the difference is expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized
in the period of the change in the provision for income taxes. Further, deferred tax assets are recognized for the expected
realization of available net operating loss and tax credit carry forwards. A valuation allowance is recorded on the Company’s
gross deferred tax assets when it is “more likely than not” that such asset will not be realized. When evaluating the realizability
of the Company’s deferred tax assets, all evidence, both positive and negative, is evaluated. Items considered in this analysis
include the ability to carry back losses, the reversal of temporary differences, tax planning strategies, and expectations of future
earnings.
 
Under U.S. GAAP for income taxes, the amount of tax benefit to be recognized is the amount of benefit that is “more
likely than not” to be sustained upon examination. The Company analyzes its tax filing positions in all of the U.S. federal, state,
local, and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these
jurisdictions. If, based on this analysis, the Company determines that uncertainties in tax positions exist, a liability is
established, which is included in accounts payable, accrued expenses and other liabilities in the consolidated financial
statements. The Company recognizes accrued interest and penalties related to unrecognized tax positions in the provision for
income taxes. If recognized, the entire amount of unrecognized tax positions would be recorded as a reduction in the provision
for income taxes.
Non-controlling Interests
Non-controlling interests in consolidated entities represent the component of equity in consolidated entities held by
third-party investors. These interests are adjusted for general partner allocations which occur during the reporting period. Any
change in ownership of a subsidiary while the controlling financial interest is retained is accounted for as an equity transaction
between the controlling and non-controlling interests. Transaction costs incurred in connection with such changes in ownership
of a subsidiary are recorded as a direct charge to equity.

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Notes to the Consolidated Financial Statements

Earnings Per Common Share
The Company computes earnings per common share in accordance with ASC 260, Earnings Per Share . Basic earnings
per common share is calculated by dividing net income (loss) attributable to the common shares of the Company by the
weighted-average number of common shares outstanding for the period. Diluted earnings per common share reflects the
assumed conversion of all dilutive securities. The Company applies the treasury stock method to determine the dilutive
weighted-average common shares outstanding for certain equity-based compensation awards. For certain equity-based
compensation awards that contain performance or market conditions, the number of contingently issuable common shares is
included in diluted earnings per common share based on the number of common shares, if any, that would be issuable under the
terms of the awards if the end of the reporting period were the end of the contingency period, if the result is dilutive.
Fair Value of Financial Instruments
The underlying entities that the Company manages and invests in (and in certain cases, consolidates) are primarily
investment companies which account for their investments at estimated fair value.
The fair value measurement accounting guidance under ASC 820, Fair Value Measurement , establishes a hierarchical
disclosure framework which ranks the observability of market price inputs used in measuring financial instruments at fair value.
The observability of inputs is impacted by a number of factors, including the type of financial instrument, the characteristics
specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions
between market participants. Financial instruments with readily available quoted prices, or for which fair value can be measured
from quoted prices in active markets, will generally have a higher degree of market price observability and a lesser degree of
judgment applied in determining fair value.
Financial instruments measured and reported at fair value are classified and disclosed based on the observability of
inputs used in the determination of fair values, as follows:
Level I – inputs to the valuation methodology are quoted prices available in active markets for identical instruments as
of the reporting date. The type of financial instruments in this category include unrestricted securities, such as equities
and derivatives, listed in active markets. The Company does not adjust the quoted price for these instruments, even in
situations where the Company holds a large position and a sale could reasonably impact the quoted price.
Level II – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly
or indirectly observable as of the reporting date. The types of financial instruments in this category include less liquid
and restricted securities listed in active markets, securities traded in other than active markets, government and agency
securities, and certain over-the-counter derivatives where the fair value is based on observable inputs.
Level III – inputs to the valuation methodology are unobservable and significant to overall fair value measurement.
The inputs into the determination of fair value require significant management judgment or estimation. The types of
financial instruments in this category include investments in privately-held entities, non-investment grade residual
interests in securitizations, collateralized loan obligations, and certain over-the-counter derivatives where the fair value
is based on unobservable inputs.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such
cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is
based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the
significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to
the financial instrument.
In certain cases, debt and equity securities (including corporate treasury investments) are valued on the basis of prices
from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the
value of a particular investment, pricing services may use certain information with respect to transactions in such investments,
quotations from dealers, pricing matrices, market transactions in comparable investments, and various relationships between
investments.
In the absence of observable market prices, the Company values its investments and its funds’ investments using
valuation methodologies applied on a consistent basis. For some investments little market activity may exist. Management’s
determination of fair value is then based on the best information available in the circumstances and may incorporate
management’s own assumptions and involve a significant degree of judgment, taking into consideration a combination of

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internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks. Investments for
which market prices are not observable include private investments in the equity and debt of operating companies and real
assets, CLO investments and CLO loans payable and fund investments. The valuation technique for each of these investments is
described below:
Investments in Operating Companies and Real Assets – The fair values of private investments in operating companies
and real assets are generally determined by reference to the income approach (including the discounted cash flow
method and the income capitalization method) and the market approach (including the comparable publicly traded
company method and the comparable transaction method). Valuations under these approaches are typically derived by
reference to investment-specific inputs (such as projected cash flows, earnings before interest, taxes, depreciation and
amortization (“EBITDA”), and net operating income) combined with market-based inputs (such as discount rates,
EBITDA multiples and capitalization rates). In many cases, the investment-specific inputs are unaudited at the time
received. Management may also adjust the market-based inputs to account for differences between the subject
investment and the companies, assets or investments used to derive the market-based inputs. Adjustments to
observable valuation measures are frequently made upon the initial investment to calibrate the initial investment
valuation to industry observable inputs. Such adjustments are made to align the investment to observable industry
inputs for differences in size, profitability, projected growth rates, geography, capital structure, and other factors as
applicable. The adjustments are then reviewed with each subsequent valuation to assess how the investment has
evolved relative to the observable inputs. Additionally, the investment may be subject to certain specific risks and/or
development milestones which are also taken into account in the valuation assessment. Option pricing models and
similar tools may also be considered but do not currently drive a significant portion of operating company or real asset
valuations and are used primarily to value warrants, derivatives, certain restrictions, and other atypical investment
instruments.
Credit-Oriented Investments – The fair values of credit-oriented investments (including corporate treasury
investments) are generally determined on the basis of prices between market participants provided by reputable dealers
or pricing services. In determining the value of a particular investment, pricing services may use certain information
with respect to transactions in such investments, quotations from dealers, pricing matrices, market transactions in
comparable investments, and various relationships between investments. Specifically, for investments in distressed
debt and corporate loans and bonds, the fair values are generally determined by valuations of comparable investments.
In some instances, the Company may utilize other valuation techniques, including the discounted cash flow method.
CLO Investments and CLO Loans Payable – The Company measures the financial liabilities of its consolidated CLOs
based on the fair value of the financial assets of its consolidated CLOs, as the Company believes the fair value of the
financial assets are more observable. The fair values of the CLO loan and bond assets are primarily based on
quotations from reputable dealers or relevant pricing services. In situations where valuation quotations are unavailable,
the assets are valued based on similar securities, market index changes, and other factors. The Company performs
certain procedures to ensure the reliability of the quotations from pricing services for its CLO assets and CLO
structured asset positions, which generally includes corroborating prices with a discounted cash flow analysis.
Generally, the loan and bond assets of the CLOs are not publicly traded and are classified as Level III. The fair values
of the CLO structured asset positions are determined based on both discounted cash flow analyses and third-party
quotes. Those analyses consider the position size, liquidity, current financial condition of the CLOs, the third-party
financing environment, reinvestment rates, recovery lags, discount rates, and default forecasts and are compared to
broker quotations from market makers and third-party dealers.
The Company measures the CLO loan payables held by third-party beneficial interest holders on the basis of the fair
value of the financial assets of the CLO and the beneficial interests held by the Company. The Company continues to
measure the CLO loans payable that it holds at fair value based on relevant pricing services or discounted cash flow
analyses, as described above.
Fund Investments – The Company’s primary and secondary investments in external funds are generally valued as its
proportionate share of the most recent net asset value provided by the third-party general partners of the underlying
fund partnerships, adjusted for subsequent cash flows received from or distributed to the underlying fund partnerships.
The Company also adjusts for any changes in the market prices of public securities held by the underlying fund
partnerships and may also apply a market adjustment to reflect the estimated change in the fair value of the underlying
fund partnerships’ non-public investments from the date of the most recent net asset value provided by the third-party
general partners.

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