10-K – 2026-02-27 – cg-20251231.htm

Investment professionals with responsibility for the underlying investments are responsible for preparing the
investment valuations pursuant to the policies, methodologies, and templates prepared by the Company’s valuation group,
which is a team made up of dedicated valuation professionals reporting to the Company’s Chief Accounting Officer. The
valuation group is responsible for maintaining the Company’s valuation policy and related guidance, templates, and systems
that are designed to be consistent with the guidance found in ASC 820. These valuations, inputs, and preliminary conclusions
are reviewed by the fund management teams. The valuations are then reviewed and approved by the respective fund valuation
subcommittees, which include the respective fund head(s), segment head, chief financial officer, and chief accounting officer,
as well as members of the valuation group. The valuation group compiles the aggregate results and significant matters and
presents them for review and approval by the global valuation committee, which includes the Company’s Chief Executive
Officer, Chief Risk Officer, Chief Financial Officer, Chief Accounting Officer, and the business segment heads, and is observed
by the Chief Compliance Officer, the Chief Audit Executive, the Company’s Audit Committee, and others. Additionally, each
quarter a sample of valuations are reviewed by external valuation firms. Valuations of the funds’ investments are used in the
calculation of accrued performance alloca tion s.
Investments, at Fair Value
Investments include (i) the Company’s ownership interests (typically general partner interests) in the Funds, including
the Company’s investment in Fortitude held through Carlyle FRL (which are accounted for as equity method investments), (ii)
the Company’s investment in NGP (which is accounted for as an equity method investment), (iii) the investments held by the
Consolidated Funds (which are presented at fair value in the Company’s consolidated financial statements), and (iv) certain
credit-oriented investments, including investments in the CLOs and the common shares of Carlyle Secured Lending, Inc.
(“CGBD,” see Note 4, Investments, and Note 9, Related Party Transactions, for more information), which are accounted for as
trading securities.
Upon the sale of a security or other investment, the realized net gain or loss is computed on a weighted average cost
basis, with the exception of the investments held by the CLOs, which compute the realized net gain or loss on a first in, first out
basis. Securities transactions are recorded on a trade date basis.
Equity Method Investments
The Company accounts for all investments in which it has or is otherwise presumed to have significant influence,
including investments in unconsolidated investment funds and the Company’s investment in NGP, 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 (including performance allocations) allocated based on the
respective partnership 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.
Cash and Cash Equivalents
Cash and cash equivalents include cash held at banks and cash held for distributions, including investments with
original maturities of less than three months when purchased. The Company is subject to credit risk should a financial
institution be unable to fulfil its obligations and if balances held at a financial institution exceed insured limits.
Cash and Cash Equivalents Held at Consolidated Funds
Cash and cash equivalents held at Consolidated Funds consists of cash and cash equivalents held by the Consolidated
Funds, which, although not legally restricted, is not available to fund the general liquidity needs of the Company.
Restricted Cash
Restricted cash primarily represents cash held by the Company’s foreign subsidiaries due to certain government
regulatory capital requirements as well as certain amounts held on behalf of Carlyle funds. As of December 31, 2025 and 2024 ,
the Company held restricted cash of $ 3.4 million and $ 0.5 million , respectively, which are included in Deposits and other in the
consolidated balance sheets.
Corporate Treasury Investments
Corporate treasury 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

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

greater than three months when purchased. These investments are accounted for as trading securities in which changes in the
fair value of each investment are recorded through investment income (loss). Any interest earned on debt investments is
recorded through interest and other income.
Derivative Instruments
The Company uses derivative instruments primarily to reduce its exposure to changes in foreign currency exchange
rates. Derivative instruments are recognized at fair value in the consolidated balance sheets with changes in fair value
recognized in the consolidated statements of operations for all derivatives not designated as hedging instruments.
Securities Sold Under Agreements to Repurchase
As it relates to certain European CLOs sponsored by the Company, securities sold under agreements to repurchase
(“Repurchase Agreements”) are accounted for as collateralized financing transactions. The Company provides securities to
counterparties to collateralize amounts borrowed under Repurchase Agreements on terms that permit the counterparties to
repledge or resell the securities to others. As of December 31, 2025 , $ 339.5 million of securities were transferred to
counterparties under Repurchase Agreements and are included within investments in the consolidated balance sheets. Cash
received under Repurchase Agreements is recognized as a liability within debt obligations in the consolidated balance sheets.
See Note 6 , Borrowings , for additional information.
  Fixed Assets
Fixed assets consist of furniture, fixtures and equipment, leasehold improvements, computer hardware and software,
and fractional shares in corporate aircraft, and are stated at cost, less accumulated depreciation and amortization. Depreciation
is recognized on a straight-line method over the assets’ estimated useful lives, which for leasehold improvements are the lesser
of the lease terms or the life of the asset, and three to seven years for other fixed assets. Fixed assets are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Leases
The Company accounts for its leases in accordance with ASC 842, Leases , and recognizes a lease liability and right-
of-use (“ROU”) asset in the consolidated balance sheets for contracts that it determines are leases or contain a lease. The
Company’s leases primarily consist of operating leases for office space in various countries around the world. The Company
also has operating leases for office equipment and vehicles, which are not significant. The Company does not separate non-
lease components from lease components for its office space and equipment operating leases and instead accounts for each
separate lease component and its associated non-lease component as a single lease component. ROU assets represent the
Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make
lease payments arising from the leases. The Company’s ROU assets and lease liabilities are recognized at lease commencement
based on the present value of lease payments over the lease term. Lease ROU assets include initial direct costs incurred by the
Company and are presented net of deferred rent and lease incentives. Absent an implicit interest rate in the lease, the Company
uses its incremental borrowing rate, adjusted for the effects of collateralization, based on the information available at
commencement in determining the present value of lease payments. The Company’s lease terms may include options to extend
or terminate the lease when it is reasonably certain that the Company will exercise those options. Lease expense for lease
payments is recognized on a straight-line basis over the lease term. Lease ROU assets are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.
The Company does not recognize a lease liability or ROU asset on the balance sheet for short-term leases. Instead, the
Company recognizes short-term lease payments as an expense on a straight-line basis over the lease term. A short-term lease is
defined as a lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to
purchase the underlying asset that the lessee is reasonably certain to exercise. When determining whether a lease qualifies as a
short-term lease, the Company evaluates the lease term and the purchase option in the same manner as all other leases.
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. Finite-lived intangible assets are amortized
over their 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.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

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.
Deferred Revenue
Deferred revenue represents management fees and other revenue received prior to the balance sheet date, which has
not yet been earned . Deferred revenue also includes transaction and portfolio advisory fees received by the Company that are
required to offset fund management fees pursuant to the related fund agreements.
Accumulated Other Comprehensive Income (Loss)
The Company’s accumulated other comprehensive income (loss) comprise foreign currency translation adjustments
and gains and losses on defined benefit plans sponsored by AlpInvest. The components of accumulated other comprehensive
income (loss) as of December 31, 2025 and 2024 were as follows:

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Currency translation adjustments

$ ( 172.7 )

$ ( 327.9 )

Unrealized losses on defined benefit plans

2.5

( 1.9 )

Total

$ ( 170.2 )

$ ( 329.8 )

Foreign Currency Translation
Non-U.S. dollar denominated assets and liabilities are remeasured at period-end rates of exchange, and the
consolidated statements of operations are remeasured at rates of exchange in effect throughout the period. Foreign currency
gains (losses) resulting from transactions outside of the functional currency of an entity of $( 19.2 ) million , $ 2.5 million and
$( 13.6 ) million for the years ended December 31, 2025, 2024 and 2023 , respectively, are included in general, administrative
and other expenses in the consolidated statements of operations.
Recent Accounting Pronouncements
The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the
Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and either determined to be not
applicable or expected to have minimal impact on the Company’s consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosure , which requires
disclosure of disaggregated information about a reporting entity’s effective tax rate reconciliation, using both percentages and
reporting currency amounts for specific standardized categories, as well as disclosure of income taxes paid disaggregated by
jurisdiction. The guidance was effective for annual periods beginning after December 15, 2024, with early adoption permitted.
The Company adopted this guidance effective for the fiscal year ended December 31, 2025 on a retrospective basis for the
comparative periods presented, and the related disclosures are included in the consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , which requires
disaggregated disclosures of certain categories of expenses on an annual and interim basis including employee compensation,
depreciation, and intangible asset amortization for each income statement line item that contains those expenses. The guidance
is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The
Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

3. Fair Value Measurement
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the
fair value hierarchy levels as disclosed in Note 2, Summary of Significant Accounting Policies, as of December 31, 2025 :

(Dollars in millions)

Level I

Level II

Level III

Total

Assets

Investments of Consolidated Funds (1) :

Equity securities (2)

$ 132.0

$ 18.2

$ 1,094.8

$ 1,245.0

Bonds

—

—

691.2

691.2

Loans

—

—

9,249.8

9,249.8

132.0

18.2

11,035.8

11,186.0

Investments in CLOs and other:

Investments in CLOs

—

—

349.0

349.0

Other investments (3)

112.0

20.9

94.6

227.5

112.0

20.9

443.6

576.5

Foreign currency forward contracts

—

4.8

—

4.8

Subtotal

$ 244.0

$ 43.9

$ 11,479.4

$ 11,767.3

Investments measured at net asset value

1,340.6

Total

$ 13,107.9

Liabilities

Loans payable of Consolidated Funds (4)(5)

$ —

$ —

$ 9,423.1

$ 9,423.1

Foreign currency forward contracts

—

4.4

—

4.4

Total

$ —

$ 4.4

$ 9,423.1

$ 9,427.5

(1) This balance excludes $ 1.3  billion of Investments of Consolidated Funds that are included in Investments measured at net asset
value, which relate to certain consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.
(2) This balance includes $ 989.4  million related to investments that have been bridged by the Company to investment funds and are
accounted for as consolidated VIEs as of December 31, 2025 . The Company’s subsidiary, which is accounted for as a consolidated
VIE, has entered into warehouse agreements with certain funds to transfer certain of these investments at a price agreed upon by the
parties, which may differ from fair value.
(3) The Level III balance excludes $ 63.0  million related to three corporate investments in equity securities which the Company has
elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to
ASC 321, Investments–Equity Securities . As a non-recurring fair value measurement, the fair value of these equity securities is
excluded from the tabular Level III rollforward disclosures.
(4) Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial
assets, less (i) the fair value of any beneficial interest held by the Company and (ii) the carrying value of any beneficial interests that
represent compensation for services.
(5) Loans payable of Consolidated Funds balance excludes $ 939.9  million of senior notes measured at amortized cost and a
$ 63.0  million revolving credit balance, which relate to certain consolidated investment fund of funds in the Company’s Carlyle
AlpInvest segment.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the
above fair value hierarchy levels as of December 31, 2024 :

(Dollars in millions)

Level I

Level II

Level III

Total

Assets

(Dollars in millions)

Investments of Consolidated Funds (1) :

Equity securities (2)

$ —

$ —

$ 572.0

$ 572.0

Bonds

—

—

465.1

465.1

Loans

—

—

6,431.4

6,431.4

Other

—

1.3

—

1.3

—

1.3

7,468.5

7,469.8

Investments in CLOs and other:

Investments in CLOs

—

—

378.9

378.9

Other investments (3)

40.4

21.5

85.1

147.0

40.4

21.5

464.0

525.9

Subtotal

$ 40.4

$ 22.8

$ 7,932.5

$ 7,995.7

Investments measured at net asset value

320.7

Total

$ 8,316.4

Liabilities

Loans payable of Consolidated Funds (4)(5)

$ —

$ —

$ 6,809.1

$ 6,809.1

Foreign currency forward contracts

—

0.6

—

0.6

Total

$ —

$ 0.6

$ 6,809.1

$ 6,809.7

(1) This balance excludes $ 312.6  million of Investments of Consolidated Funds that are included in Investments measured at net asset
value, which relate to certain consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.
(2) This balance includes $ 441.9  million related to investments that have been bridged by the Company to investment funds and are
accounted for as consolidated VIEs as of December 31, 2024 .
(3) The Level III balance excludes $ 55.4  million related to three corporate investments in equity securities which the Company has
elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to
ASC 321, Investments–Equity Securities . As a non-recurring fair value measurement, the fair value of these equity securities is
excluded from the tabular Level III rollforward disclosures.
(4) Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial
assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests
that represent compensation for services.
(5) Loans payable of Consolidated Funds balance excludes a $ 55.1  million revolving credit balance, which related to certain
consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

The changes in financial instruments measured at fair value for which the Company has used Level III inputs to
determine fair value are as follows (Dollars in millions):

 

Financial Assets Year Ended December 31, 2025

Investments of Consolidated Funds

Investments
in CLOs

Total

Equity
securities

Bonds

Loans

Other
investments

Balance, beginning of period

$ 572.0

$ 465.1

$ 6,431.4

$ 378.9

$ 85.1

$ 7,932.5

Initial consolidation/deconsolidation of
funds (1)

—

( 140.3 )

( 1,176.7 )

23.5

—

( 1,293.5 )

Transfer out related to the Exchange (2)

—

—

—

—

( 50.4 )

( 50.4 )

Purchases

672.8

664.2

9,434.7

32.4

147.1

10,951.2

Sales and distributions

( 88.7 )

( 356.1 )

( 4,145.0 )

( 131.8 )

( 89.4 )

( 4,811.0 )

Settlements

—

( 1.0 )

( 1,557.2 )

—

—

( 1,558.2 )

Realized and unrealized gains (losses), net

Included in earnings

( 61.3 )

5.2

( 102.8 )

22.4

2.2

( 134.3 )

Included in other comprehensive income

—

54.1

365.4

23.6

—

443.1

Balance, end of period

$ 1,094.8

$ 691.2

$ 9,249.8

$ 349.0

$ 94.6

$ 11,479.4

Changes in unrealized gains (losses) included in
earnings related to financial assets still held at the
reporting date

$ ( 67.8 )

$ 0.1

$ ( 83.7 )

$ 22.3

$ 1.6

$ ( 127.5 )

Changes in unrealized gains (losses) included in
other comprehensive income related to financial
assets still held at the reporting date

$ —

$ 21.2

$ 184.0

$ 24.2

$ —

$ 229.4

 

Financial Assets Year Ended December 31, 2024

 

Investments of Consolidated Funds

Investments
in CLOs

Total

 

Equity
securities

Bonds

Loans

Other
investments

Balance, beginning of period

$ 377.6

$ 522.5

$ 5,862.1

$ 532.6

$ 84.6

$ 7,379.4

Deconsolidation of funds (3)

—

( 34.1 )

( 1,219.5 )

2.3

—

( 1,251.3 )

Purchases

199.5

335.3

6,867.6

4.0

36.5

7,442.9

Sales and distributions

( 11.7 )

( 343.4 )

( 3,090.3 )

( 184.4 )

( 10.0 )

( 3,639.8 )

Settlements

—

( 1.6 )

( 1,882.8 )

—

—

( 1,884.4 )

Realized and unrealized gains (losses), net

Included in earnings

6.6

15.1

78.2

29.9

( 26.0 )

103.8

Included in other comprehensive income

—

( 28.7 )

( 183.9 )

( 5.5 )

—

( 218.1 )

Balance, end of period

$ 572.0

$ 465.1

$ 6,431.4

$ 378.9

$ 85.1

$ 7,932.5

Changes in unrealized gains (losses) included in
earnings related to financial assets still held at the
reporting date

$ 3.5

$ 7.9

$ 33.4

$ 29.0

$ ( 29.0 )

$ 44.8

Changes in unrealized gains (losses) included in
other comprehensive income related to financial
assets still held at the reporting date

$ —

$ ( 15.8 )

$ ( 115.7 )

$ ( 6.2 )

$ —

$ ( 137.7 )

 
(1) As a result of the initial consolidation of four funds and deconsolidation of two funds during the year ended December 31, 2025 .
(2) Represents the exchange of the BDC Preferred Shares, which were valued using Level III inputs, for common shares of CGBD, which are valued using
Level I inputs. See Note 9 , Related Party Transactions , for more information.
(3) As a result of the deconsolidation of four funds during the year ended December 31, 2024 .

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

 

Financial Liabilities

Loans Payable of Consolidated Funds

Year Ended December 31,

 

2025

2024

Balance, beginning of period

$ 6,809.1

$ 6,298.6

Initial consolidation/deconsolidation of funds (1)

( 801.4 )

( 1,269.3 )

Borrowings

8,737.5

7,006.0

Paydowns

( 2,764.4 )

( 2,101.8 )

Sales

( 2,868.0 )

( 2,986.7 )

Realized and unrealized (gains) losses, net

Included in earnings

( 99.2 )

72.0

Included in other comprehensive income

409.5

( 209.7 )

Balance, end of period

$ 9,423.1

$ 6,809.1

Changes in unrealized (gains) losses included in earnings related to
financial liabilities still held at the reporting date

$ ( 91.8 )

$ 86.4

Changes in unrealized (gains) losses included in other comprehensive
income related to financial liabilities still held at the reporting date

$ 460.7

$ ( 254.2 )

(1) As a result of the initial consolidation of four funds and deconsolidation of two funds during the year ended December 31, 2025 and the
deconsolidation of four funds during the year ended December 31, 2024 , respectively.
Realized and unrealized gains and losses included in earnings for Level III investments for investments in CLOs and
other investments are included in investment income (loss), and such gains and losses for investments of Consolidated Funds
and loans payable of the Consolidated Funds are included in Net investment income of Consolidated Funds in the consolidated
statements of operations.
Gains and losses included in other comprehensive income for all Level III financial asset and liabilities are included in
accumulated other comprehensive loss and non-controlling interests in consolidated entities.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

The following table summarizes quantitative information about the Company’s Level III inputs as of December 31,
2025 :

Fair Value at

Range
(Weighted
Average)

Impact to
Valuation
from
Increase in
Input

(Dollars in millions)

December 31, 2025

Valuation Technique(s)

Unobservable Input(s)

Assets

Investments of Consolidated
Funds:

Equity securities

$ 1.4

Consensus Pricing

Indicative Quotes ($ per
share)

0.00 - 20.38 ( 0.19 )

Higher

789.2

Discounted Cash Flow

Discount Rates

7 % - 19 % ( 11 % )

Lower

Terminal Growth Rate

1 % - 11 % ( 4 % )

Higher

Comparable Multiple

EBITDA Multiple

1.5 x - 23.8 x ( 12.0 x )

Higher

Revenue Multiple

2.8 x - 2.8 x ( 2.8 x )

Higher

TCF Multiple

22.3 x - 22.3 x ( 22.3 x )

Higher

112.3

Discounted Cash Flow

Discount Rates

7 % - 20 % ( 12 % )

Lower

Constant Prepayment Rate

6 % - 16 % ( 9 % )

Lower

Constant Default Rate

0 % - 6 % ( 1 % )

Lower

Recovery Rate

0 % - 40 % ( 21 % )

Higher

191.9

Other (1)

N/A

N/A

N/A

Bonds

691.2

Consensus Pricing

Indicative Quotes (% of Par)

12 - 106 ( 96 )

Higher

Loans

9,028.5

Consensus Pricing

Indicative Quotes (% of Par)

0 - 101 ( 98 )

Higher

216.0

Discounted Cash Flow

Discount Rates

6 % - 16 % ( 9 % )

Lower

3.5

Discounted Cash Flow

Discount Rates

14 % - 14 % ( 14 % )

Lower

Constant Prepayment Rate

8 % - 14 % ( 11 % )

Lower

Constant Default Rate

2 % - 2 % ( 2 % )

Lower

1.8

Other (1)

N/A

N/A

N/A

11,035.8

Investments in CLOs

Senior secured notes

303.3

Consensus Pricing with
Discounted Cash Flow

Indicative Quotes (% of Par)

92 - 101 ( 100 )

Higher

Discount Margins (Basis
Points)

80 - 1,060 ( 204 )

Lower

Default Rates

2 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Subordinated notes and
preferred shares

45.7

Consensus Pricing with
Discounted Cash Flow

Indicative Quotes (% of Par)

0 - 87 ( 38 )

Higher

Discount Rates

0 % - 31 % ( 10 % )

Lower

Default Rates

1 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Other investments:

Aviation subordinated notes

7.5

Discounted Cash Flow

Discount Rates

21 % - 21 % ( 21 % )

Lower

Loans

37.6

Discounted Cash Flow

Discount Rates

6 % - 10 % ( 9 % )

Lower

Consensus Pricing

Indicative Quotes (% of Par)

100 - 100 ( 100 )

Higher

49.5

Other (1)

N/A

N/A

N/A

Total

$ 11,479.4

Liabilities

Loans payable of Consolidated
Funds:

Senior secured notes

$ 9,032.2

Other (2)

N/A

N/A

N/A

Subordinated notes and
preferred shares

390.9

Consensus Pricing with
Discounted Cash Flow

Indicative Quotes (% of Par)

10 - 84 ( 51 )

Higher

Discount Rates

5 % - 24 % ( 9 % )

Lower

Default Rates

1 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Total

$ 9,423.1

(1) Fair value approximates transaction price that was in close proximity to the reporting date.

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Notes to the Consolidated Financial Statements

(2) Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,
less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent
compensation for services.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

The following table summarizes quantitative information about the Company’s Level III inputs as of December 31,
2024 :

Fair Value at

Range
(Weighted
Average)

Impact to
Valuation
from
Increase in
Input

(Dollars in millions)

December 31, 2024

Valuation Technique(s)

Unobservable Input(s)

Assets

Investments of Consolidated
Funds:

Equity securities

$ 3.9

Consensus Pricing

Indicative Quotes ($ per share)

0.00 - 112.17 ( 0.01 )

Higher

485.0

Discounted Cash Flow

Discount Rates

10 % - 13 % ( 11 % )

Lower

Terminal Growth Rate

3 % - 7 % ( 6 % )

Higher

Comparable Multiple

EBITDA Multiple

7.7 x - 23.2 x ( 12.8 x )

Higher

TCF Multiple

26.0 x - 26.0 x ( 26.0 x )

Higher

38.2

Discounted Cash Flow

Discount Rates

14 % - 34 % ( 18 % )

Lower

Constant Prepayment Rate

6 % - 16 % ( 11 % )

Lower

Constant Default Rate

1 % - 4 % ( 2 % )

Lower

Recovery Rate

0 % - 40 % ( 17 % )

Higher

44.9

Other (1)

N/A

N/A

N/A

Bonds

465.1

Consensus Pricing

Indicative Quotes (% of Par)

30 - 103 ( 93 )

Higher

Loans

6,408.2

Consensus Pricing

Indicative Quotes (% of Par)

0 - 105 ( 97 )

Higher

10.2

Discounted Cash Flow

Discount Rates

9 % - 19 % ( 18 % )

Lower

6.4

Discounted Cash Flow

Discount Rates

16 % - 16 % ( 16 % )

Lower

Constant Prepayment Rate

8 % - 14 % ( 11 % )

Lower

Constant Default Rate

1 % - 1 % ( 1 % )

Lower

Recovery Rate

0 % - 0 % ( 0 % )

Higher

Other

6.6

Other (1)

N/A

N/A

N/A

7,468.5

Investments in CLOs

Senior secured notes

321.8

Discounted Cash Flow
with Consensus Pricing

Indicative Quotes (% of Par)

80 - 101 ( 99 )

Higher

Discount Margins (Basis Points)

113 - 1,535 ( 214 )

Lower

Default Rates

2 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Subordinated notes and
preferred shares

57.1

Discounted Cash Flow
with Consensus Pricing

Indicative Quotes (% of Par)

1 - 103 ( 38 )

Higher

Discount Rate

4 % - 35 % ( 16 % )

Lower

Default Rates

1 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Other investments:

BDC preferred shares

53.4

Other (2)

Net Asset Value per Share

16.80 - 16.80 ( 16.80 )

Lower

Aviation subordinated
notes

2.9

Discounted Cash Flow

Discount Rates

21 % - 21 % ( 21 % )

Lower

Loans

28.8

Consensus Pricing

Indicative Quotes (% of Par)

99 - 99 ( 99 )

Higher

Total

$ 7,932.5

Liabilities

Loans payable of Consolidated
Funds:

Senior secured notes

$ 6,598.8

Other (3)

N/A

N/A

N/A

Subordinated notes and
preferred shares

210.3

Discounted Cash Flow
with Consensus Pricing

Indicative Quotes (% of Par)

11 - 87 ( 34 )

Higher

Discount Rates

2 % - 35 % ( 15 % )

Lower

Default Rates

1 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Total

$ 6,809.1

(1) Fair value approximates transaction price that was in close proximity to the reporting date.
(2) See Note 9 , Related Party Transactions , for more information.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

(3) Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,
less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent
compensation for services.

4. Investments
Investments consist of the following:

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Accrued performance allocations

$ 7,620.3

$ 7,053.5

Principal equity method investments, excluding performance allocations

2,879.5

3,292.3

Principal investments in CLOs

349.0

378.9

Other investments

303.9

212.0

Total

$ 11,152.7

$ 10,936.7

Accrued Performance Allocations
The components of accrued performance allocations are as follows:

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Global Private Equity

$ 5,021.1

$ 4,910.2

Global Credit

724.6

527.1

Carlyle AlpInvest

1,874.6

1,616.2

Total

$ 7,620.3

$ 7,053.5

At December 31, 2025 and 2024 , a pproximately 24 % and 20 % , respectively, of accrued performance allocations were
related to Carlyle Partners VII, L.P., one of the Company’s Global Private Equity funds.
Accrued performance allocations are shown gross of the Company’s accrued performance allocations and incentive fee
related compensation (see Note 7 , Accrued Compensation and Benefits ), and accrued giveback obligations, which are
separately presented in the consolidated balance sheets. The components of the accrued giveback obligations are as follows:

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Global Private Equity

$ ( 47.3 )

$ ( 18.5 )

Global Credit

( 25.5 )

( 25.5 )

Total

$ ( 72.8 )

$ ( 44.0 )

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

Principal Equity Method Investments, Excluding Performance Allocations
The Company’s principal equity method investments (excluding performance allocations) include its fund investments
in Global Private Equity, Global Credit, and Carlyle AlpInvest typically as general partner interests, and its investments in
Fortitude through a Carlyle-affiliated fund (included within Global Credit) and NGP (included within Global Private Equity),
which are not consolidated. Principal investments are related to the following segments:

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Global Private Equity (1)

$ 1,384.4

$ 1,818.0

Global Credit (2)

1,151.9

1,157.0

Carlyle AlpInvest

343.2

317.3

Total

$ 2,879.5

$ 3,292.3

(1) The balance includes $ 616.0  million and $ 912.0  million as of December 31, 2025 and 2024 , respectively, related to the Company’s equity method
investments in NGP.
(2) The balance includes $ 722.4  million and $ 723.5  million as of December 31, 2025 and 2024 , respectively, related to the Company’s investment in Fortitude.
The summarized financial information of the Company’s equity method investees from the date of initial investment is
as follows (Dollars in millions):

 

Global Private Equity

Global Credit

Carlyle AlpInvest

Aggregate Totals

For the Year Ended
December 31,

For the Year Ended
December 31,

For the Year Ended
December 31,

For the Year Ended
December 31,

 

2025

2024

2023

2025

2024

2023

2025

2024

2023

2025

2024

2023

Statement of operations
information

Investment income

$ 1,551.1

$ 1,986.9

$ 2,652.7

$ 3,376.5

$ 3,639.1

$ 3,497.5

$ 203.3

$ 275.3

$ 74.8

$ 5,130.9

$ 5,901.3

$ 6,225.0

Expenses

2,391.2

2,644.6

2,320.4

1,207.1

1,111.8

1,019.5

1,978.3

2,123.9

1,238.5

5,576.6

5,880.3

4,578.4

Net investment income
(loss)

( 840.1 )

( 657.7 )

332.3

2,169.4

2,527.3

2,478.0

( 1,775.0 )

( 1,848.6 )

( 1,163.7 )

( 445.7 )

21.0

1,646.6

Net realized and
unrealized gain (loss)

8,028.4

7,911.2

2,980.0

37.5

575.8

224.7

5,031.9

4,891.9

4,159.4

13,097.8

13,378.9

7,364.1

Net income (loss)

$ 7,188.3

$ 7,253.5

$ 3,312.3

$ 2,206.9

$ 3,103.1

$ 2,702.7

$ 3,256.9

$ 3,043.3

$ 2,995.7

$ 12,652.1

$ 13,399.9

$ 9,010.7

 

Global Private Equity

Global Credit

Carlyle AlpInvest

Aggregate Totals

 

As of December 31,

As of December 31,

As of December 31,

As of December 31,

 

2025

2024

2025

2024

2025

2024

2025

2024

Balance sheet information

Investments

$ 124,346.8

$ 123,663.3

$ 34,379.6

$ 32,367.7

$ 57,552.6

$ 62,935.0

$ 216,279.0

$ 218,966.0

Total assets

$ 128,039.1

$ 127,257.1

$ 36,652.6

$ 33,970.1

$ 59,019.9

$ 63,678.5

$ 223,711.6

$ 224,905.7

Debt

$ 11,713.4

$ 11,560.9

$ 9,331.1

$ 6,625.5

$ 4,650.4

$ 2,929.2

$ 25,694.9

$ 21,115.6

Other liabilities

$ 1,235.4

$ 1,399.3

$ 1,068.8

$ 682.0

$ 3,436.0

$ 4,048.8

$ 5,740.2

$ 6,130.1

Total liabilities

$ 12,948.8

$ 12,960.2

$ 10,399.9

$ 7,307.5

$ 8,086.4

$ 6,978.1

$ 31,435.1

$ 27,245.8

Partners’ capital

$ 115,090.3

$ 114,296.9

$ 26,252.7

$ 26,662.6

$ 50,933.5

$ 56,700.4

$ 192,276.5

$ 197,659.9

Investment in Fortitude
In November 2018, the Company acquired a 19.9 % interest in Fortitude Group Holdings, LLC (“Fortitude Holdings”),
a wholly owned subsidiary of American International Group, Inc. (“AIG”). Fortitude Holdings owns 100 % of the outstanding
common shares of Fortitude Reinsurance Company Ltd., a Bermuda domiciled reinsurer (“Fortitude Re”).
In June 2020, Carlyle FRL, L.P. (“Carlyle FRL”), a Carlyle-affiliated investment fund, and T&D United Capital Co.,
Ltd. (“T&D”), a strategic third-party investor, acquired a 51.6 % and 25.0 % ownership interest, respectively, in Fortitude
Holdings from AIG. At closing, the Company contributed its existing 19.9 % interest in Fortitude Holdings to Carlyle FRL, such
that Carlyle FRL held a 71.5 % interest in Fortitude Holdings. Taken together, Carlyle FRL and T&D had 96.5 % ownership of
Fortitude Holdings. In October 2021, Carlyle FRL, T&D and an affiliate of AIG contributed the entirety of their interest in
Fortitude Holdings to FGH Parent, L.P. (“FGH Parent”), a newly-formed entity interposed as the direct parent of Fortitude

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

Holdings, in exchange for an equivalent ownership interest in FGH Parent. References to “Fortitude” prior to this restructuring
refer to Fortitude Holdings and refer to FGH Parent for subsequent periods.
In March 2022, the Company raised $ 2.0  billion in third-party equity capital from certain investors in Carlyle FRL and
T&D, and committed $ 100  million from the Company for additional equity capital in Fortitude. Upon Fortitude calling the
remaining commitments from the capital raise in May 2023, the Company’s indirect ownership of Fortitude decreased to
10.5 % . Effective October 2023, a third-party investor in Carlyle FRL received a distribution in kind of its interest in FGH
Parent held indirectly through the fund, reducing Carlyle FRL’s ownership in FGH Parent to 38.5 % . Following the additional
capital contributions in 2022 and 2023, Carlyle FRL and its strategic third-party investors collectively hold a 97.5 % interest in
FGH Parent.
In November 2024, Fortitude declared and paid a $ 200.0  million dividend, of which Carlyle FRL’s share was
$ 76.9  million . The Company received a distribution from Carlyle FRL of $ 21.0  million related to this dividend, of which
$ 7.9  million was recognized as realized principal investment income, and the balance as return of capital. In September 2025,
Fortitude declared and paid a $ 300.0  million dividend, $ 31.4  million of which was distributed to the Company from Carlyle
FRL and recognized as realized principal investment income on the consolidated statements of operations for the year ended
December 31, 2025 . As of December 31, 2025 , the carrying value of the Company’s investment in Carlyle FRL, which is an
investment company that accounts for its investment in Fortitude at fair value, was $ 722.4  million , relative to equity invested of
$ 666.8  million .
The Company has an asset management relationship with Fortitude pursuant to which Fortitude committed to allocate
assets in asset management strategies and vehicles of the Company and its affiliates. As of December 31, 2025 , Fortitude, its
affiliates and certain Fortitude reinsurance counterparties have committed approximately $ 24.6  billion of capital to-date to
various Carlyle strategies. On April 1, 2022, the Company entered into a strategic advisory services agreement with certain
subsidiaries of Fortitude through Carlyle Insurance Solutions Management L.L.C. (“CISM”), an investment adviser. Under the
agreement, CISM provides Fortitude with certain services, including business development and growth, transaction origination
and execution, and capital management services in exchange for a recurring management fee based on Fortitude’s general
account assets, which adjusts within an agreed range based on Fortitude’s overall profitability. Third-party investors who
participated in the March 2022 capital raise also made a minority investment in CISM, which is reflected as non-controlling
interest in consolidated entities in the consolidated financial statements.
Investment in NGP
The Company has equity interests in NGP Management Company, L.L.C. (“NGP Management”), the general partners
of certain carry funds advised by NGP, and principal investments in certain NGP funds as described below. These investments
are included in the Global Private Equity segment. NGP Management serves as the investment advisor to the NGP Energy
Funds. The Company does not control NGP and accounts for its investments in NGP under the equity method of accounting.
The Company’s investments in NGP as of December 31, 2025 and 2024 are as follows:

As of December 31,

2025

2024

(Dollars in millions)

Investment in NGP Management

$ 247.4

$ 369.2

Investments in NGP general partners - accrued performance allocations

326.2

489.4

Principal investments in NGP funds

42.4

53.4

Total investments in NGP

$ 616.0

$ 912.0

NGP Restructuring. On March 31, 2025, the Company restructured the terms of its strategic investment in NGP (the
“Restructuring”) to further align the interests of the Company and NGP. The Restructuring eliminated previous restrictions on
the Company’s ability to pursue domestic energy strategies, established a new capital markets fees arrangement with NGP, and
terminated the Company’s obligation to grant up to $ 10  million of its common shares to NGP annually following a final grant
made with respect to fiscal year 2030. Additionally, in order to facilitate the development of future funds while substantially
maintaining the Company’s economics on existing funds, the Restructuring reduced the Company’s allocation of the
management fee related revenues of NGP Management related to future funds, as well as its share of the performance
allocations received by current and future NGP fund general partners, as discussed further below.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

Prior to the Restructuring, the Company’s equity interests in NGP Management entitled the Company to an allocation
of income equal to 55.0 % of the management fee related revenues earned by NGP Management. Subsequent to the
Restructuring, for all funds that held an initial closing after December 31, 2024, the Company’s allocations of income for the
management fee related revenues will be based on a sliding scale of the total annual management fee related revenues accrued
from all such funds in the aggregate up to 55.0 % , including all management fees being retained by NGP for the years 2025
through 2028 on such future NGP funds. The Company identified the reduction of its allocation of the management fee related
revenues of NGP Management as an indicator of impairment and performed an impairment analysis. As a result of the
Restructuring, the Company concluded that the carrying value of its investment in NGP Management was impaired and
recorded an impairment charge of $ 92.5  million during the first quarter of 2025, representing the difference in the carrying
value of the investment of $ 352.5  million and its fair value of $ 260.0  million at the time of Restructuring. The Company
utilized a discounted cash flow method for determining the fair value of its equity method investment, which is a Level III
valuation within the fair value hierarchy and utilizes significant unobservable assumptions, including discount rates and long-
term growth rates. The allocation of management fee related revenues for existing NGP funds remains unchanged, including the
Company’s interest in management fees from NGP XI, NGP XII and NGP XIII.
The impairment charge created new basis differences with an estimated fair value of $ 165  million within the equity
method investment. These basis differences are amortized over an estimated useful life ranging from five to seven years as a
reduction of principal investment income.
The Company’s investment in the general partners of the NGP Carry Funds entitled it to 47.5 % ( 38.0 % to 42.75 % in
the case of certain funds) of the performance allocations received by certain current and future NGP fund general partners prior
to the Restructuring. In connection with the Restructuring, the Company’s allocation of the performance allocations from
existing NGP Carry Funds was reduced to a range of 35.1 % to 43.8 % , which resulted in a $ 38  million reduction in accrued
performance allocations during the first quarter of 2025. The Company’s interest in the performance allocations from future
NGP Carry Funds will be based on a sliding scale of the fee paying capital raised in each future NGP Carry Fund, up to 47.5 %
of the performance allocations received by the general partners of the future NGP Carry Funds.
The impairment charge related to the investment in NGP Management and the reduction in accrued performance
allocations from NGP Carry Funds are recorded in Principal investment income (loss) in the consolidated statements of
operations and excluded from Distributable Earnings, as defined in Note 15 , Segment Reporting .
Investment in NGP Management . As referenced above, the Company’s equity interests in NGP Management entitle the
Company to an allocation of income equal to 55.0 % of the management fee related revenues earned by existing funds, and up to
55.0 % of management fees earned on future NGP funds in the aggregate, including all management fees being retained by NGP
for the years 2025 through 2028 on such future NGP funds. The Company records investment income (loss) for its equity
income allocation from NGP management fee related revenues and also records its share of any allocated expenses from NGP
Management, as well as expenses associated with the compensatory elements of the investment, and any impairment
charges.  The net investment income (loss) recognized in the Company’s consolidated statements of operations for the years
ended December 31, 2025, 2024 and 2023 were as follows:

 

Year Ended December 31,

 

2025

2024

2023

(Dollars in millions)

Management fee related revenues from NGP Management

$ 61.3

$ 76.2

$ 78.6

Expenses related to the investment in NGP Management

( 11.6 )

( 13.1 )

( 13.8 )

Amortization of basis differences and impairment of investment in NGP Management

( 118.7 )

—

—

Net investment income from NGP Management

$ ( 69.0 )

$ 63.1

$ 64.8

Management fee related revenues from NGP Management were primarily driven by NGP XI, NGP XII and NGP XIII
during the years ended December 31, 2025, 2024 and 2023 . These funds calculate management fees as 1.5 % of the limited
partners’ commitments less any return of capital or write-offs during the investment period. Following the investment period,
the basis on which fund management fees are generally calculated is further reduced by a reserve for future management fees
and operating costs.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

Investment in the General Partners of NGP Carry Funds. As referenced above, the Company’s investment in the
general partners of the NGP Carry Funds entitle it to up to 47.5 % of the performance allocations received by NGP fund general
partners. The Company records its equity income allocation from NGP performance allocations in principal investment income
(loss) from equity method investments rather than performance allocations in its consolidated statements of operations. The
Company recognized net investment earnings (losses) related to these performance allocations of $ 30.8 million , $ 35.5 million
and $ 65.5  million for years ended December 31, 2025, 2024 and 2023 , respectively, in its consolidated statements of
operations. The year ended December 31, 2025 included the $ 38.0  million reduction related to the Restructuring.
Principal Investments in NGP Funds. The Company also holds principal investments in the NGP Carry Funds. The
Company recognized net investment earnings (losses) related to principal investment income (loss) in its consolidated
statements of operations of $ 10.0 million , $ 5.0 million and $ 8.0 million for the years ended December 31, 2025, 2024 and
2023 , respectively.
Principal Investments in CLOs and Other Investments
Principal investments in CLOs as of December 31, 2025 and 2024 were $ 349.0 million and $ 378.9 million ,
respectively, and consisted of investments in CLO senior and subordinated notes. A portion of the Company’s principal
investments in CLOs is collateral to CLO term loans (see Note 6 , Borrowings ). As of December 31, 2025 , other investments
include the Company’s investment in common shares of CGBD at fair value of $ 37.5  million . As of December 31, 2024 , other
investments include the Company’s investment in preferred shares of CGBD (the “BDC Preferred Shares”) at fair value of
$ 53.4 million , which were exchanged for common shares effective March 27, 2025 (see Note 9 , Related Party Transactions ).
Investment Income (Loss)
The components of investment income (loss) are as follows:

 

Year Ended December 31,

 

2025

2024

2023

 

(Dollars in millions)

Performance allocations

Realized

$ 833.1

$ 1,047.5

$ 867.0

Unrealized

389.4

968.2

( 955.6 )

1,222.5

2,015.7

( 88.6 )

Principal investment income (loss) from equity method investments (excluding
performance allocations)

Realized

280.5

184.5

231.7

Unrealized

( 158.0 )

52.0

( 115.1 )

122.5

236.5

116.6

Principal investment income (loss) from investments in CLOs and other
investments

Realized

( 1.7 )

3.8

( 1.1 )

Unrealized (1)

( 1.6 )

( 1.6 )

17.9

( 3.3 )

2.2

16.8

Total

$ 1,341.7

$ 2,254.4

$ 44.8

(1)  The year ended December 31, 2024 includes the reversal of $ 45.5  million of previously recorded unrealized investment income on the BDC Preferred
Shares (see Note 9 , Related Party Transactions for more information). The years ended December 31, 2024 and December 31, 2023 include
investment gain (loss) of $ 5.3  million and $( 13.3 ) million , respectively, associated with the remeasurement of corporate investments, resulting from
observable price changes pursuant to ASC 321, Investments – Equity Securities .

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

The performance allocations included in revenues are derived from the following segments:

 

Year Ended December 31,

 

2025

2024

2023

 

(Dollars in millions)

Global Private Equity

$ 680.9

$ 1,559.9

$ ( 551.5 )

Global Credit

282.6

227.7

163.7

Carlyle AlpInvest

259.0

228.1

299.2

Total

$ 1,222.5

$ 2,015.7

$ ( 88.6 )

The following tables summarize the funds that are the primary drivers of performance allocations for the years ended
December 31, 2025 , 2024 , and 2023 , as well as the total revenue recognized, including performance allocations as well as fund
management fees and principal investment income:

Year Ended December 31, 2025

(Dollars in millions)

Global Private Equity

CP VII

$ 612.3

Global Private Equity

CP VIII

542.2

Global Private Equity

CAP V

( 188.3 )

Year Ended December 31, 2024

(Dollars in millions)

Global Private Equity

CP VII

$ 1,483.3

Year Ended December 31, 2023

(Dollars in millions)

Global Private Equity

CP VI

$( 238.0 )

Global Private Equity

CP VII

( 391.8 )

Carlyle’s income (loss) from its principal equity method investments consists of:

 

Year Ended December 31,

 

2025

2024

2023

 

(Dollars in millions)

Global Private Equity

$ 13.3

$ 140.8

$ 157.6

Global Credit

59.1

71.2

( 60.0 )

Carlyle AlpInvest

50.1

24.5

19.0

Total

$ 122.5

$ 236.5

$ 116.6

Principal investment income for Global Private Equity for the year ended December 31, 2025 included the impairment
charge related to the investment in NGP Management of $ 92.5  million and the reduction in accrued performance allocations
from NGP Carry Funds of $ 38.0  million related to the Restructuring. Principal investment income for Global Private Equity
included the Company’s equity income allocation from NGP performance allocations of $ 30.8 million , $ 35.5 million and
$ 65.5  million for years ended December 31, 2025, 2024 and 2023 , respectively. Principal investment loss for Global Credit for
the year ended December 31, 2023 included an investment loss of $ 104.0  million on the Company’s equity method investment
in Carlyle FRL related to the dilution of the Company’s indirect ownership in Fortitude from 13.5 % to 10.5 % .

Investments of Consolidated Funds
The Company consolidates the financial positions and results of operations of certain CLOs in which it is the primary
beneficiary. During the year ended December 31, 2025 , the Company became the primary beneficiary of six new CLOs.
Investments in Consolidated Funds as of December 31, 2025 and 2024 also included $ 989.4  million and $ 441.9  million ,

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

respectively, related to investments that have been bridged by the Company to investment funds in the Global Private Equity
and Carlyle AlpInvest segments that are accounted for as consolidated VIEs.
The following table presents a summary of the investments held by the Consolidated Funds. Investments held by the
Consolidated Funds do not represent the investments of all Carlyle sponsored funds.

 

Fair Value

Percentage of Investments of
Consolidated Funds

Geographic Region/Instrument Type / Industry

As of December 31,

As of December 31,

Description or Investment Strategy

2025

2024

2025

2024

 

(Dollars in millions)

 

 

United States

Equity securities:

Aerospace, Defense & Government Services

$ 90.4

$ —

0.72 %

— %

Consumer & Retail

2.4

—

0.02 %

— %

Financial Services

45.2

—

0.36 %

— %

Healthcare Equipment & Services

150.5

—

1.20 %

— %

Industrial

53.1

—

0.42 %

— %

Infrastructure

183.2

361.3

1.46 %

4.64 %

Technology & Business Services

84.4

47.3

0.67 %

0.61 %

Telecom & Media

3.2

—

0.03 %

— %

Transportation

—

29.1

— %

0.37 %

Other

282.5

83.2

2.26 %

1.07 %

Total equity securities (cost of $ 1,028.8 and $ 543.7 at December 31,
2025 and 2024 , respectively)

894.9

520.9

7.14 %

6.69 %

Partnership and LLC interests:

Fund Investments

$ 1,333.8

$ 312.7

10.65 %

4.02 %

Total Partnership and LLC interests (cost of $ 1,128.3 and $ 194.8 at
December 31, 2025 and 2024 , respectively)

1,333.8

312.7

10.65 %

4.02 %

Loans:

Aerospace & Defense

$ —

$ 9.3

— %

0.12 %

Collateralized Debt Obligation

14.6

7.2

0.12 %

0.09 %

Education

9.0

11.6

0.07 %

0.15 %

Environmental Industries

—

0.9

— %

0.01 %

Total loans (cost of $ 19.7 and $ 24.0 at December 31, 2025 and 2024 ,
respectively)

23.6

29.0

0.19 %

0.37 %

Assets of the CLOs:

Bonds

$ 184.0

$ 90.1

1.47 %

1.16 %

Equity

1.4

3.8

0.01 %

0.05 %

Loans

5,832.2

3,844.6

46.58 %

49.40 %

Total assets of the CLOs (cost of $ 6,059.8 and $ 3,943.3 at
December 31, 2025 and 2024 , respectively)

6,017.6

3,938.5

48.06 %

50.61 %

Total United States

$ 8,269.9

$ 4,801.1

66.04 %

61.69 %

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

Fair Value

Percentage of Investments of
Consolidated Funds

Geographic Region/Instrument Type / Industry

As of December 31,

As of December 31,

Description or Investment Strategy

2025

2024

2025

2024

(Dollars in millions)

Europe

Equity securities:

Energy

$ 66.5

$ —

0.53 %

— %

Healthcare Equipment & Services

0.2

—

— %

— %

Industrial

29.6

—

0.24 %

— %

Software

—

10.6

— %

0.14 %

Technology & Business Services

88.5

—

0.72 %

— %

Other

46.6

—

0.37 %

— %

Total equity securities (cost of $ 196.9 and $ 10.7 at December 31, 2025
and 2024 , respectively)

231.4

10.6

1.86 %

0.14 %

Assets of the CLOs:

Bonds

$ 504.5

$ 373.1

4.03 %

4.79 %

Equity

—

0.1

— %

0.01 %

Loans

3,238.5

2,479.9

25.87 %

31.87 %

Other

—

—

— %

— %

Total assets of the CLOs (cost of $ 3,801.3 and $ 2,889.4 at
December 31, 2025 and 2024 , respectively)

3,743.0

2,853.1

29.90 %

36.67 %

Total Europe

$ 3,974.4

$ 2,863.7

31.76 %

36.81 %

Global

Equity securities:

Consumer & Retail

$ 33.0

$ 28.3

0.26 %

0.36 %

Hardware

—

9.6

— %

0.12 %

Healthcare Equipment & Services

9.0

—

0.07 %

— %

Industrial

30.7

—

0.25 %

— %

Technology & Business Services

44.6

—

0.36 %

— %

Total equity securities (cost of $ 116.3 and $ 39.9 at December 31, 2025
and 2024 , respectively)

117.3

37.9

0.94 %

0.48 %

Assets of the CLOs:

Bonds

$ 2.7

$ 1.9

0.02 %

0.02 %

Loans

155.5

77.8

1.24 %

1.00 %

Total assets of the CLOs (cost of $ 159.0 and $ 80.7 at
December 31, 2025 and 2024 , respectively)

158.2

79.7

1.26 %

1.02 %

Total Global

$ 275.5

$ 117.6

2.20 %

1.50 %

Total investments of Consolidated Funds (cost of $ 12,510.1 and $ 7,726.5
at December 31, 2025 and 2024 , respectively)

$ 12,519.8

$ 7,782.4

100.00 %

100.00 %

There w ere no ind ividual investments with a fair value greater than five percent of the Company’s total assets for any
period presented.
Interest and Other Income of Consolidated Funds
The components of interest and other income of Consolidated Funds are as follows:

 

Year Ended December 31,

 

2025

2024

2023

 

(Dollars in millions)

Interest income from investments

$ 577.2

$ 577.6

$ 512.4

Other income

58.1

54.0

57.7

Total

$ 635.3

$ 631.6

$ 570.1

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

Net Investment Income (Loss) of Consolidated Funds
Net investment income (loss) of Consolidated Funds includes net realized gains (losses) from sales of investments and
unrealized gains (losses) resulting from changes in fair value of the Consolidated Funds’ investments. The components of Net
investment income (loss) of Consolidated Funds are as follows :

 

Year Ended December 31,

 

2025

2024

2023

 

(Dollars in millions)

Gains from investments of Consolidated Funds

$ 16.4

$ 96.4

$ 246.9

Gains (losses) from liabilities of CLOs

101.5

( 72.4 )

( 240.0 )

Total

$ 117.9

$ 24.0

$ 6.9

The following table presents realized and unrealized gains (losses) earned from investments of the Consolidated
Funds:

 

Year Ended December 31,

 

2025

2024

2023

 

(Dollars in millions)

Realized gains (losses)

$ 28.3

$ ( 60.7 )

$ ( 80.8 )

Net change in unrealized gains (losses)

( 11.9 )

157.1

327.7

Total

$ 16.4

$ 96.4

$ 246.9

5. Intangible Assets and Goodwill
The following table summarizes the carrying amount of intangible assets as of December 31, 2025 and 2024 :

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Acquired contractual rights

$ 928.1

$ 922.7

Accumulated amortization

( 525.6 )

( 392.2 )

Finite-lived intangible assets, net

402.5

530.5

Goodwill

104.6

103.6

Intangible assets, net

$ 507.1

$ 634.1

As of both December 31, 2025 and 2024 , goodwill included $ 91.1  million related to the Company’s Global Private
Equity segment and $ 5.5  million associated with the Company’s Global Credit segment. As of December 31, 2025 and 2024 ,
goodwill included $ 8.0  million and $ 7.0  million , respectively, associated with the Company’s Carlyle AlpInvest segment.

As discussed in Note 2 , Summary of Significant Accounting Policies , the Company reviews its intangible assets for
impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable,
and considers factors including, but not limited to, expected cash flows from its interest in future management fees and the
ability to raise new funds. The Company recorded no impairment losses of intangible assets for the periods presented.
Intangible asset amortization expense was $ 131.0 million , $ 130.8 million and $ 135.0 million for the years ended
December 31, 2025, 2024 and 2023 , respectively, and is included in general, administrative, and other expenses in the
consolidated statements of operations. Certain intangible assets are held by entities of which the functional currency is not the
U.S. dollar. Any corresponding currency translation is recorded in accumulated other comprehensive income (loss).

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Notes to the Consolidated Financial Statements

The following table summarizes the expected amortization expense for 2026 through 2030 and thereafter (Dollars in
millions):

Year ending December 31,

2026

$ 131.8

2027

121.7

2028

114.6

2029

31.9

2030

2.5

$ 402.5

6. Borrowings
The Company borrows and enters into credit agreements for its general operating and investment purposes. The
Company’s debt obligations consist of the following:

 

As of December 31,

 

2025

2024

Borrowing
Outstanding

Carrying
Value

Borrowing
Outstanding

Carrying
Value

(Dollars in millions)

CLO Borrowings (See below)

$ 350.1

$ 349.4

$ 289.4

$ 288.0

3.500 % Senior Notes Due 9/19/2029

425.0

423.4

425.0

422.9

5.050 % Senior Notes Due 9/19/2035

800.0

791.1

—

—

5.625 % Senior Notes Due 3/30/2043

600.0

600.5

600.0

600.5

5.650 % Senior Notes Due 9/15/2048

350.0

346.7

350.0

346.6

4.625 % Subordinated Notes Due 5/15/2061

500.0

485.9

500.0

485.5

Total debt obligations

$ 3,025.1

$ 2,997.0

$ 2,164.4

$ 2,143.5

 
Senior Credit Facility
As of December 31, 2025 , the senior credit facility included $ 1.0 billion in a revolving credit facility, 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. P rincipal amounts outstanding under the 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 (at December 31, 2025 , the interest rate was 4.79 % ). There was no amount outstanding under the revolving credit
facility as of December 31, 2025 . The Company made no borrowings under the revolving credit facility during the years ended
December 31, 2025, 2024 and 2023 .
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 and for the year ended December 31, 2025 , there was no balance outstanding, and the Company made no
borrowings, under the Global Credit Revolving Credit Facility. For the year ended December 31, 2024 , under the Global Credit
Revolving Credit Facility, the Company made borrowings of $ 5.0  million and € 5.0  million , which were subsequently repaid,

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

and there was no balance outstanding as of December 31, 2024 . As of and for the year ended December 31, 2023 , there was no
balance outstanding, and the Company made no borrowings under the Global Credit Revolving Credit Facility.
CLO Borrowings
For certain of the Company’s 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. The Company’s outstanding
CLO borrowings consist of the following (Dollars in millions):

Formation Date

Borrowing
Outstanding
December 31, 2025

Borrowing
Outstanding
December 31, 2024

Maturity Date (1)

Interest Rate as of
December 31, 2025

February 28, 2017

$ 10.6

$ 23.5

September 21, 2029

4.54 %

(2)

December 6, 2017

—

25.5

N/A

N/A

(4)

March 15, 2019

1.9

1.7

March 15, 2032

10.21 %

(3)

August 20, 2019

4.2

3.7

August 15, 2032

6.80 %

(3)

September 15, 2020

16.5

18.4

April 15, 2033

3.64 %

(3)

January 8, 2021

21.3

19.2

January 15, 2034

4.52 %

(3)

March 30, 2021

11.7

16.5

March 15, 2032

4.12 %

(3)

April 21, 2021

3.8

3.3

April 15, 2033

7.86 %

(3)

May 21, 2021

4.1

11.6

November 17, 2031

3.77 %

(3)

June 4, 2021

21.9

19.4

January 16, 2034

4.29 %

(3)

June 10, 2021

1.4

1.2

November 17, 2031

4.91 %

(3)

July 15, 2021

16.4

14.5

July 15, 2034

4.30 %

(3)

July 20, 2021

21.9

19.3

July 20, 2034

4.28 %

(3)

August 4, 2021

11.9

15.6

August 15, 2032

3.98 %

(3)

October 27, 2021

25.5

22.5

October 15, 2035

4.41 %

(3)

January 6, 2022

22.0

19.4

February 15, 2035

4.44 %

(3)

February 22, 2022

22.1

19.5

November 10, 2035

4.45 %

(3)

September 5, 2023

—

5.1

N/A

N/A

(4)

April 25, 2024

—

17.2

N/A

N/A

(4)

December 19, 2024

16.6

12.3

January 15, 2039

4.72 %

(3)

March 31, 2025

22.0

—

April 15, 2038

4.50 %

(3)

July 10, 2025

27.4

—

August 15, 2038

4.46 %

(3)

September 19, 2025

22.3

—

October 15, 2038

4.66 %

(3)

October 28, 2025

19.6

—

October 25, 2038

4.63 %

(3)

November 7, 2025

25.0

—

January 16, 2039

4.53 %

(3)

$ 350.1

$ 289.4

(1) Maturity date is earlier of date indicated or the date that the CLO is dissolved.
(2) Incurs interest at EURIBOR plus applicable margins as defined in the agreement.
(3) Incurs interest at the average effective interest rate of each class of purchased securities plus a spread percentage ranging from
0.50 % to 0.55 % .
(4) Term loan was fully repaid during the year ended December 31, 2025 .
The CLO term loans 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. Interest
expense for the years ended December 31, 2025, 2024 and 2023 was $ 15.7 million , $ 24.4 million , and $ 24.9 million ,
respectively. The fair value of the outstanding balance of the CLO term loans at December 31, 2025 and 2024 approximated par
value based on current market rates for similar debt instruments. These CLO term loans are classified as Level III within the
fair value hierarchy.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

European CLO Financing - February 28, 2017
A subsidiary of the Company is a party to a financing agreement with several financial institutions. As of December
31, 2025 , the financing agreement provided the Company with a term loan of € 9.0 million ( $ 10.6 million at December 31,
2025 ). This term loan is secured by the Company’s investments in the retained notes in certain European CLOs that were
formed in 2014. This term loan will mature on the earlier of September 21, 2029 or the date that the certain European CLO
retained notes have been redeemed. The Company may prepay the term loan in whole or in part at any time. Interest on this
term loan accrues at EURIBOR plus applicable margins ( 4.54 % at December 31, 2025 ).
Master Credit Agreement - Term Loans
The Company assumed liabilities under master credit agreements previously entered into by CBAM under which a
financial institution provided term loans to CBAM for the purchase of eligible interests in CLOs. Term loans issued under these
master credit agreements were secured by the Company’s investment in the respective CLO as well as any senior management
fee and subordinated management fee payable by each CLO. Term loans generally bore interest at SOFR plus a weighted
average spread over SOFR on the CLO notes, which was due quarterly. As of December 31, 2025 , all outstanding CLO term
loans under this agreement have been repaid.
CLO Repurchase Agreements
The Company is party to two master credit facility agreements (the “CLO Financing Facilities”) to finance a portion of
the risk retention investments in certain European CLOs managed by the Company. Each transaction entered into under the
CLO Financing Facilities will bear interest at a rate based on the weighted average effective interest rate of each class of
securities that have been sold plus a spread to be agreed upon by the parties. As of December 31, 2025 , € 289.3 million ( $ 339.5
million ) was outstanding under the CLO Financing Facilities. Additional borrowings may be made on terms agreed upon by the
Company and the counterparty subject to the terms and conditions of the CLO Financing Facilities.
Each transaction entered into under the CLO Financing Facilities provides for payment netting and, in the case of a
default or similar event with respect to the counterparty to the CLO Financing Facilities, provides for netting across
transactions. Generally, upon a counterparty default, the Company can terminate all transactions under the CLO Financing
Facilities and offset amounts it owes in respect of any one transaction against collateral, if any, or other amounts it has received
in respect of any other transactions under the CLO Financing Facilities; provided, however, that in the case of certain defaults,
the Company may only be able to terminate and offset solely with respect to the transaction affected by the default. During the
term of a transaction entered into under the CLO Financing Facilities, the Company will deliver cash or additional securities
acceptable to the counterparty if the securities sold are in default. Upon termination of a transaction, the Company will
repurchase the previously sold securities from the counterparty at a previously determined repurchase price. The CLO
Financing Facilities may be terminated at any time upon certain defaults or circumstances agreed upon by the parties.
The Repurchase Agreements may result in credit exposure in the event the counterparty to the transaction is unable to
fulfill its contractual obligations. The Company minimizes the credit risk associated with these activities by monitoring
counterparty credit exposure and collateral values. Other than margin requirements, the Company is not subject to additional
terms or contingencies which would expose the Company to additional obligations based upon the performance of the securities
pledged as collateral.
Senior Notes
The Company and certain indirect subsidiaries of the Company have issued long term borrowings in the form of senior
notes, on which interest is payable semi-annually in arrears. The following table provides information regarding these senior
notes (Dollars in millions):

Aggregate
Principal
Amount

Fair Value (1)
As of December 31,

Interest Expense

Year Ended December 31,

2025

2024

2025

2024

2023

3.500 % Senior Notes Due 9/19/2029 (2)

$ 425.0

$ 417.8

$ 401.2

$ 15.3

$ 15.3

$ 15.3

5.050 % Senior Notes Due 9/19/2035 (3)

800.0

800.9

—

11.6

—

—

5.625 % Senior Notes Due 3/30/2043 (4)

600.0

600.7

589.5

33.7

33.7

33.7

5.650 % Senior Notes Due 9/15/2048 (5)

350.0

347.5

338.1

19.9

19.9

19.9

$ 80.5

$ 68.9

$ 68.9

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

(1) Including accrued interest. Fair value is based on indicative quotes and the notes are classified as Level II within the fair value
hierarchy.
(2) Issued in September 2019 at 99.841 % of par.
(3) Issued in September 2025 at 99.767 % of par.
(4) Issued $ 400.0 million in aggregate principal at 99.583 % of par in March 2013. An additional $ 200.0 million in aggregate principal
was issued at 104.315 % of par in March 2014, and is treated as a single class with the outstanding $ 400.0 million in senior notes
previously issued.
(5) Issued in September 2018 at 99.914 % of par.
The issuers may redeem the senior notes, in whole at any time or in part from time to time, at a price equal to the
greater of (i) 100 % of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining
scheduled payments of principal and interest on any notes being redeemed (less interest accrued to the date of redemption)
discounted to the redemption date on a semiannual basis at the Treasury Rate plus 40 basis points ( 30 basis points in the case of
the 3.500 % senior notes and 20 basis points in the case of the 5.050 % senior notes), plus in each case accrued and unpaid
interest on the principal amounts being redeemed.
Subordinated Notes
In May 2021 , an indirect subsidiary of the Company issued $ 435.0  million aggregate principal amount of 4.625 %
Subordinated Notes due May 15, 2061 (the “Subordinated Notes”), on which interest is payable quarterly accruing from May
11, 2021. In June 2021, an additional $ 65.0  million aggregate principal amount of these Subordinated Notes were issued and
are treated as a single series with the already outstanding $ 435.0  million aggregate principal amount. The Subordinated Notes
are unsecured and subordinated obligations of the issuer, and are fully and unconditionally guaranteed (the “Guarantees”),
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 (collectively, the “Guarantors”). The Consolidated Funds are not
guarantors, and as such, the assets of the Consolidated Funds are not available to service the Subordinated Notes under the
Guarantee. The Subordinated Notes may be redeemed at the issuer’s 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.
As of December 31, 2025 and December 31, 2024 , the fair value of the Subordinated Notes was $ 342.0  million  and
$ 356.4  million , respectively. Fair value is based on active market quotes and the notes are classified as Level I within the fair
value hierarchy. For each of the years ended December 31, 2025, 2024 and 2023 , the Company incurred $ 23.5  million of
interest expense on the Subordinated Notes.
Debt Covenants
The Company is subject to various financial covenants under its loan agreements including, among other items,
maintenance of a minimum amount of management fee-earning assets. The Company is also subject to various non-financial
covenants under its loan agreements and the indentures governing its senior notes. The Company was in compliance with all
financial and non-financial covenants under its various loan agreements as of December 31, 2025 .

  Loans Payable of Consolidated Funds
Loans payable of Consolidated Funds primarily represent amounts due to holders of debt securities issued by the
CLOs. As of December 31, 2025 and 2024 , the following borrowings were outstanding (Dollars in millions):

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

 

As of December 31, 2025

 

Borrowing
Outstanding

Fair Value

Weighted
Average
Interest Rate

 

Weighted
Average
Remaining
Maturity in
Years

Senior secured notes (1)

$ 9,994.8

$ 9,972.1

5.09 %

11.18

Subordinated notes

509.6

390.9

N/A

(3)

9.65

Revolving credit facilities (2)

63.0

63.0

6.68 %

3.45

Total

$ 10,567.4

$ 10,426.0

 

 

As of December 31, 2024

 

Borrowing
Outstanding

Fair Value

Weighted
Average
Interest Rate

 

Weighted
Average
Remaining
Maturity in
Years

Senior secured notes

$ 6,732.8

$ 6,598.8

5.72 %

9.18

Subordinated notes

229.9

210.3

N/A

(3)

9.15

Revolving credit facilities (2)

55.1

55.1

7.01 %

4.53

Total

$ 7,017.8

$ 6,864.2

 
(1) Borrowing Outstanding as of December 31, 2025 includes $ 939.9 million of senior secured notes that are measured at amortized
cost, which approximates fair value. These senior secured notes are classified as Level III within the fair value hierarchy.
(2) Fair Value as of December 31, 2025 and 2024 reflects the amortized cost of outstanding revolving credit balances which
approximates fair value.
(3) The subordinated notes do not have contractual interest rates, but instead receive distributions from the excess cash flows 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 consisted of cash and cash equivalents, corporate loans, corporate bonds
and other securities. As of December 31, 2025 and 2024 , the fair value of the CLO assets was $ 11.0 billion and $ 7.9 billion ,
respectively.

7. Accrued Compensation and Benefits
Accrued compensation and benefits consist of the following:

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Accrued performance allocations and incentive fee related compensation

$ 5,111.8

$ 4,819.7

Accrued bonuses

294.5

335.5

Realized performance allocations and incentive fee related compensation not yet paid

315.1

183.8

Other

128.0

107.6

Total

$ 5,849.4

$ 5,446.6

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

The following table presents realized and unrealized performance allocations and incentive fee related compensation:

Year Ended December 31,

2025

2024

2023

(Dollars in millions)

Realized

$ 761.2

$ 753.1

$ 473.8

Unrealized

175.1

608.4

629.9

Total

$ 936.3

$ 1,361.5

$ 1,103.7

Certain employees of AlpInvest are covered by defined benefit pension plans sponsored by AlpInvest. No other
employees of the Company are covered by defined benefit pension plans. The following table presents the plans’ benefit
obligation, the fair value of plan assets, and the plans’ funded status as of December 31, 2025 and 2024 :

As of December 31,

2025

2024

(Dollars in millions)

Benefit obligation

$ ( 66.6 )

$ ( 65.1 )

Fair value of plan assets

67.6

58.1

Funded status (1)

$ 1.0

$ ( 7.0 )

(1) Represents the funded status of plans and is included in accrued compensation and benefits in the accompanying consolidated financial statements.
For the years ended December 31, 2025, 2024 and 2023 , the net periodic benefit cost recognized was $ 1.8  million ,
$ 1.5  million and $ 1.7  million , respectively, which is included in cash-based compensation and benefits expense (for the service
cost component) and other non-operating expenses (for non-service cost components) in the accompanying consolidated
financial statements.

8. Commitments and Contingencies

Capital Commitments
The Company and its unconsolidated affiliates have unfunded commitments totaling $ 3.9 billion as of December 31,
2025 , of which approximately $ 3.2 billion is subscribed individually by senior Carlyle professionals, advisors and other
professionals. I n addition to these unfunded commitments, the Company may from time to time exercise its right to purchase
additional interests in its investment funds that become available in the ordinary course of their operations.
Under the Carlyle Global Capital Markets platform, certain subsidiaries of the Company may act as an underwriter,
syndicator or placement agent for security offerings and loan originations. The Company earns fees in connection with these
activities and bears the risk of the sale of such securities and placement of such loans, which may be longer dated. As of
December 31, 2025 , the Company had no material commitments related to the origination and syndication of loans and
securities under the Carlyle Global Capital Markets platform.

Guaranteed Loans
From time to time, the Company or its subsidiaries may enter into agreements to guarantee certain obligations of the
investment funds related to, for example, credit facilities or equity commitments. Certain consolidated subsidiaries of the
Company are the guarantors of revolving credit facilities for certain funds in the Carlyle AlpInvest segment. The guarantee is
limited to the lesser of the total amount drawn under the credit facilities or the total of net asset value of the guarantor
subsidiaries plus any uncalled capital of the applicable general partner. The outstanding balances are secured by uncalled capital
commitments from the underlying funds, and the Company believes the likelihood of any material funding under this guarantee
to be remote. As of December 31, 2025 , the Company had no outstanding guarantees under the credit facilities.
Certain consolidated subsidiaries of the Company were the guarantors of a credit agreement for a fund in the Carlyle
AlpInvest segment, with a maximum potential amount to be funded of $ 25.0  million . The credit agreement and related
guarantee expired in August 2025 with no funding required by the Company.

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On February 25, 2026, the Company entered into an agreement pursuant to which it provided support for a credit
facility of a certain fund in the Global Credit segment. The maximum aggregate amount that could be funded under this
agreement was $ 120  million as of February 25, 2026. The Company has not funded any amounts under this agreement to date
and believes the likelihood of any material funding to be remote .

Contingent Obligations
Giveback
A liability for potential repayment of previously received performance allocations of $ 72.8 million at December 31,
2025 was shown as accrued giveback obligations in the consolidated balance sheets, representing the giveback obligation that
would need to be paid if the funds were liquidated at their current fair values at December 31, 2025 . However, the ultimate
giveback obligation, if any, generally is not paid until the end of a fund’s life or earlier if the giveback becomes fixed and early
payment is agreed upon by the fund’s partners (see Note 2 , Summary of Significant Accounting Policies ). As of December 31,
2025 and 2024 , the Company had $ 24.2 million and $ 11.5 million , respectively, of unbilled receivables from former and
current employees and senior Carlyle professionals related to giveback obligations. Any such receivables are collateralized by
investments made by individual senior Carlyle professionals and employees in Carlyle-sponsored funds. In addition,
$ 151.5  million and $ 144.8  million have been withheld from distributions of carried interest to senior Carlyle professionals and
employees for potential giveback obligations as of December 31, 2025 and 2024 , respectively. Such amounts are held on behalf
of the respective current and former Carlyle employees to satisfy any givebacks they may owe and are held by entities not
included in the accompanying consolidated balance sheets. Current and former senior Carlyle professionals and employees are
personally responsible for their giveback obligations. As of December 31, 2025 , approximately $ 27.0 million of the Company’s
accrued giveback obligation is the responsibility of various current and former senior Carlyle professionals and other former
limited partners of the Carlyle Holdings partnerships, and the net accrued giveback obligation attributable to the Company is
$ 45.8 million .
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.
Other
In connection with a consolidated investment fund in the Carlyle AlpInvest segment, the Company entered into an
arrangement with a third-party pursuant to which the Company may be required to make payments up to $ 50.0  million in the
aggregate in the event the fund does not achieve a specified return. As of December 31, 2025 , t he Company has concluded that
the likelihood of payment under this arrangement is not probable; therefore, no liability has been record ed .

Leases
The Company’s leases primarily consist of operating leases for office space in various countries around the world,
including its largest offices in Washington, D.C., New York City, London and Hong Kong. These leases have remaining lease
terms of one year to 11 years , some of which include options to extend for up to five years and some of which include an option
to terminate the leases within one year . The Company also has operating leases for office equipment and vehicles, which are not
significant.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

The following table summarizes the Company’s lease cost, cash flows and other supplemental information related to
its operating leases :

Year Ended December 31,

2025

2024

2023

(Dollars in millions)

Operating lease cost

$ 60.5

$ 61.3

$ 58.5

Sublease income

( 3.8 )

( 4.6 )

( 5.9 )

  Total operating lease cost

$ 56.7

$ 56.7

$ 52.6

Cash paid for amounts included in the measurement of operating lease liabilities

$ 73.7

$ 69.1

$ 68.3

Weighted-average remaining lease term

8.1

9.8

10.4

Weighted-average discount rate

4.4 %

4.4 %

4.3 %

Maturities of lease liabilities related to operating leases were as follows (Dollars in millions):

Year ending December 31,

2026

$ 74.6

2027

75.3

2028

74.5

2029

73.7

2030

59.2

Thereafter

197.8

Total lease payments

$ 555.1

Less imputed interest

( 84.9 )

Total lease liabilities

$ 470.2

Legal Matters
In the ordinary course of business, the Company is a party to litigation, investigations, inquiries, employment-related
matters, disputes, and other potential claims. Certain of these matters are described below. The Company is not currently able to
estimate the reasonably possible amount of loss or range of loss, in excess of amounts accrued, for the matters that have not
been resolved. The Company does not believe it is probable that the outcome of any existing litigation, investigations, disputes,
or other potential claims will materially affect the Company or these financial statements in excess of amounts accrued.
The Authentix Matter
Authentix, Inc. (“Authentix”) was a majority-owned portfolio company in one of the Company’s investment funds,
Carlyle U.S. Growth Fund III, L.P. (“CGF III”). When Authentix was owned by CGF III, two of the Company’s employees
served on Authentix’s board of directors. After a lengthy sale process, Authentix was sold for an aggregate sale price of
$ 87.5  million . On August 7, 2020, certain of the former minority shareholders in Authentix filed suit in Delaware Chancery
Court, alleging that the Authentix board of directors, CGF III, and the Company breached various fiduciary duties by agreeing
to a sale of Authentix at an inopportune time and at a price that was too low. A trial before the Delaware Court of Chancery was
completed in early February 2024, and a decision was rendered in favor of the Company and all other defendants on all claims
on January 8, 2025. The plaintiffs appealed the decision to the Delaware Supreme Court on March 13, 2025. Oral argument on
the appeal was held on October 22, 2025, and a decision was rendered in favor of the Company and all other defendants on all
claims on November 5, 2025.
T he T ax Receivable Agreement Matter
The Company came into existence on January 1, 2020, when its predecessor, The Carlyle Group, L.P. (the “PTP”),
converted from a partnership into a corporation (the “Conversion”). On July 29, 2022, an alleged stockholder of the Company,

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Notes to the Consolidated Financial Statements

the City of Pittsburgh Comprehensive Municipal Trust Fund (the “original Plaintiff”), filed suit in the Delaware Court of
Chancery, alleging a direct claim against the Company for breach of its certificate of incorporation and a derivative claim on
behalf of the Company against certain current and former officers and directors of the Company. As the original Plaintiff did
not actually own shares on the date of the Conversion, it stipulated to the dismissal of the derivative claims in October of 2025
and the Court has allowed Charles Blackburn (together with the original Plaintiff, “Plaintiffs”) to intervene as a new plaintiff
with respect to the derivative claims. The original Plaintiff continues as a plaintiff with respect to one direct claim.
Plaintiffs challenge the receipt, by certain officers of the PTP and certain directors of the general partner of the PTP, of
a right to cash payments associated with the elimination of a tax receivable agreement in connection with the Conversion.
Plaintiffs are seeking monetary damages, restitution, and an injunction preventing the Company from making any future cash
payments for the elimination of the tax receivable agreement in connection with the Conversion. By virtue of the derivative
nature of the primary claims (i.e., that the claims are aimed primarily at certain officers and directors), it is unlikely that the
Company itself will pay material damage awards based on the derivative claims, although the Company is expected to incur
legal defense fees to the extent not covered by insurance. The Delaware Court issued a ruling on the defendants’ motion to
dismiss on April 24, 2024, dismissing some of the original Plaintiff’s claims but allowing most of the claims to proceed to
discovery and possibly to trial. Plaintiffs filed a consolidated amended complaint on November 17, 2025. Defendants filed a
motion to dismiss the consolidated amended complaint on January 16, 2026. The Company intends to contest the direct claims
vigorously, and the officer and director defendants intend to continue contesting the derivative claims vigorously.
General
The Company currently is and expects to continue to be, from time to time, subject to examinations, formal and
informal inquiries, and investigations by various U.S. and non-U.S. governmental and regulatory agencies, including but not
limited to, the SEC, Department of Justice, state attorneys general, FINRA, National Futures Association, and the UK Financial
Conduct Authority. The Company routinely cooperates with such examinations, inquiries and investigations, and they may
result in the commencement of civil, criminal, or administrative or other proceedings against the Company or its personnel.
It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings and employment-
related matters, and some of the matters discussed above involve claims for potentially large and/or indeterminate amounts of
damages. Based on information known by management, management does not believe that as of the date of this filing the final
resolutions of the matters above will have a material effect upon the Company’s consolidated financial statements. However,
given the potentially large and/or indeterminate amounts of damages sought in certain of these matters and the inherent
unpredictability of investigations and litigations, it is possible that an adverse outcome in certain matters could, from time to
time, have a material effect on the Company’s financial results in any particular period.
The Company accrues an estimated loss contingency liability when it is probable that such a liability has been incurred
and the amount of the loss can be reasonably estimated. As of December 31, 2025 , the Company had recorded liabilities
aggregating to approximately $ 50 million for litigation-related contingencies, regulatory examinations and inquiries, and other
matters. The Company evaluates its outstanding legal and regulatory proceedings and other matters each quarter to assess its
loss contingency accruals, and makes adjustments in such accruals, upward or downward, as appropriate, based on
management’s best judgment after consultation with counsel. There is no assurance that the Company’s accruals for loss
contingencies will not need to be adjusted in the future or that, in light of the uncertainties involved in such matters, the ultimate
resolution of these matters will not significantly exceed the accruals that the Company has recorded.
Indemnifications
In the normal course of business, the Company and its subsidiaries enter into contracts that contain a variety of
representations and warranties and provide general indemnifications. The Company’s maximum exposure under these
arrangements is unknown as this would involve future claims that may be made against the Company that have not yet
occurred. However, based on experience, the Company believes the risk of material loss to be remote.
In connection with the sale of the Company’s interest in its local Brazilian management entity in August 2021, the
Company provided a guarantee to the acquiring company of up to BRL 100.0  million ( $ 18.1 million as of December 31, 2025 )
for liabilities arising from tax-related indemnifications. This guarantee, which will expire in August 2027, would only come
into effect after all alternative remedies have been exhausted. The Company believes the likelihood of any material funding
under this guarantee to be remote.

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Notes to the Consolidated Financial Statements

Risks and Uncertainties
Carlyle’s funds seek investment opportunities that offer the possibility of attaining substantial capital appreciation.
Certain events particular to each industry in which the underlying investees conduct their operations, as well as general
economic, political, regulatory, and public health conditions, may have a significant negative impact on the Company’s
investments and profitability. The funds managed by the Company may also experience a slowdown in the deployment of
capital, which could adversely affect the Company’s ability to raise capital for new or successor funds and could also impact the
management fees the Company earns on its carry funds and managed accounts, and/or result in the impairment of intangible
assets and/or goodwill the case of the Company’s acquired businesses. Such events are beyond the Company’s control, and the
likelihood that they may occur and the effect on the Company cannot be predicted.
Furthermore, certain of the funds’ investments are made in private companies and there are generally no public
markets for the underlying securities at the current time. The funds’ ability to liquidate their publicly-traded investments are
often subject to limitations, including discounts that may be required to be taken on quoted prices due to the number of shares
being sold. The funds’ ability to liquidate their investments and realize value is subject to significant limitations and
uncertainties, including among others currency fluctuations and natural disasters.
The Company and the funds make investments outside of the United States. Investments outside the United States may
be subject to less developed bankruptcy, corporate, partnership and other laws (which may have the effect of disregarding or
otherwise circumventing the limited liability structures potentially causing the actions or liabilities of one fund or a portfolio
company to adversely impact the Company or an unrelated fund or portfolio company). Non-U.S. investments are subject to the
same risks associated with the Company’s U.S. investments as well as additional risks, such as fluctuations in foreign currency
exchange rates, unexpected changes in regulatory requirements, heightened risk of political and economic instability,
difficulties in managing non-U.S. investments, potentially adverse tax consequences, and the burden of complying with a wide
variety of foreign laws.
Furthermore, Carlyle is exposed to economic risk concentrations related to certain large investments as well as
concentrations of investments in certain industries and geographies.
Additionally, the Company encounters credit risk. Credit risk is the risk of default by a counterparty in the Company’s
investments in debt securities, loans, leases, and derivatives that result from a borrower’s, lessee’s, or derivative counterparty’s
inability or unwillingness to make required or expected payments. The Company is subject to credit risk should a financial
institution be unable to fulfill its obligations.
The Company considers cash, cash equivalents, securities, receivables, principal equity method investments, accounts
payable, accrued expenses, other liabilities, loans, senior notes, assets, and liabilities of Consolidated Funds and contingent and
other consideration for acquisitions to be its financial instruments. Except for the senior notes, subordinated notes, and
compensatory contingent and other consideration for acquisitions, the carrying amounts reported in the consolidated balance
sheets for these financial instruments equal or closely approximate their fair values. The fair value of the senior and
subordinated notes is disclosed in Note 6 , Borrowings .

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9. Related Party Transactions
Due from Affiliates and Other Receivables, Net
The Company had the following due from affiliates and other receivables at December 31, 2025 and 2024 :

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Accrued incentive fees

$ 53.6

$ 33.7

Unbilled receivable for giveback obligations from current and former employees

24.2

11.5

Notes receivable and accrued interest from affiliates

34.0

46.2

Management fee receivable, net

246.0

296.4

Reimbursable expenses and other receivables from unconsolidated funds and affiliates, net

477.0

417.8

Total

$ 834.8

$ 805.6

Reimbursable expenses and other receivables from certain of the unconsolidated funds and portfolio companies relate
to advisory fees receivable and expenses paid on behalf of these entities. These costs generally represent costs related to the
pursuit of actual or proposed investments, professional fees, and expenses associated with the acquisition, holding, and
disposition of the investments. The affiliates are obligated at the discretion of the Company to reimburse the expenses. Based
on management’s determination, the Company may accrue and charge interest on amounts due from affiliate accounts at
interest rates ranging up to 7.05 % as of December 31, 2025 . The accrued and charged interest to the affiliates was not
significant for any period presented.
Notes receivable includes loans that the Company has provided to certain unconsolidated funds to meet short-term
obligations to purchase investments. Notes receivable as of December 31, 2025 and December 31, 2024 also include interest-
bearing loans of $ 19.5  million and $ 22.8  million , respectively, to certain eligible Carlyle employees, which excludes Section 16
officers and other members of senior management, to finance their investments in certain Carlyle sponsored funds. These
advances accrue interest at the WSJ Prime Rate minus 1.00 % floating with a floor rate of 3.50 % ( 5.75 % as of December 31,
2025 ) and are collateralized by each borrower’s interest in the Carlyle sponsored funds.
These receivables are assessed regularly for collectability. Management fee receivable amounts determined to be
uncollectible are recorded as a reduction in revenue in the consolidated statements of operations. For all other receivables,
amounts determined to be uncollectible are charged directly to general, administrative and other expenses in the consolidated
statements of operations. A corresponding allowance for doubtful accounts is recorded and such amounts were not significant
for any period presented.
Due to Affiliates
The Company had the following due to affiliates balances at December 31, 2025 and 2024 :

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Due to affiliates of Consolidated Funds

$ 6.1

$ 5.3

Due to non-consolidated affiliates

102.0

134.1

Amounts owed under the tax receivable agreement

71.8

77.2

Other

24.0

25.3

Total

$ 203.9

$ 241.9

The Company has recorded obligations for amounts due to certain of its affiliates. The Company periodically offsets
expenses it has paid on behalf of its affiliates against these obligations.

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In connection with the Company’s initial public offering, the Company entered into a tax receivable agreement with
the limited partners of the Carlyle Holdings partnerships whereby certain subsidiaries of the Partnership agreed to pay to the
limited partners of the Carlyle Holdings partnerships involved in any exchange transaction 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.
Other Related Party Transactions
Aircraft Transactions
Entities controlled by our co-founders own aircraft that may be used for the Company’s business in the ordinary course
of its operations. The hourly rates that the Company pays for the use of these aircraft are based on current market rates for
chartering private aircraft of the same type. For the years ended December 31, 2025 and 2024 , the Company incurred fees of
$ 2.3  million and $ 1.3  million , respectively, for the use of these aircraft. All payments were paid directly to the manager of the
aircraft, and a significant portion of the payments were ultimately paid to or were for the benefit of certain co-founders.
BDC Preferred Shares
On May 5, 2020, the Company purchased 2,000,000 of the BDC Preferred Shares from CGBD in a private placement
at a price of $ 25 per share. Prior to the Exchange, as defined and discussed below, dividends were payable on a quarterly basis
in an initial amount equal to 7.0 % per annum payable in cash, or, at CGBD’s option, 9.0 % per annum payable in additional
BDC Preferred Shares. The BDC Preferred Shares were convertible at the Company’s option, in whole or in part, into the
number of shares of common stock equal to $ 25 per share plus any accumulated but unpaid dividends divided by an initial
conversion price of $ 9.50 per share, subject to certain adjustments.
In August 2024, to facilitate a merger between CGBD and another Carlyle-advised BDC (the “Merger”), the Company
agreed to exchange its 2,000,000 preferred shares into newly issued common shares of CGBD at a price equal to the net asset
value per common share on the date of completion of the Merger (the “Exchange”). The Merger and the Exchange were
completed on March 27, 2025, and the Company exchanged its preferred shares for 3,004,808 newly issued common shares of
CGBD based on the net asset value of $ 16.64 per common share of CGBD on that date. The preferred shares were cancelled
following the completion of the Exchange. The newly issued common shares of CGBD are subject to a tiered lock-up
agreement with a restriction period that expires in three equal tranches of the common shares over a period of two years and are
recorded at fair value using Level I inputs based on the CGBD common share price.
The Company received the final dividend distribution related to its BDC Preferred Shares in the first quarter of 2025.
The Company recorded dividend income from the BDC Preferred Shares of $ 0.8  million , $ 3.5  million , and $ 3.5  million ,
respectively, during the years ended December 31, 2025, 2024 and 2023 . This was included in Interest and other income in the
consolidated statements of operations. The Company’s investment in the BDC Preferred Shares, which was recorded at fair
value using Level III inputs based on the estimated conversion value, was $ 53.4  million as of December 31, 2024 , and was
included in Investments, including accrued performance allocations, in the consolidated balance sheets.
Other Transactions
Senior Carlyle professionals and employees are permitted to participate in co-investment entities that invest in Carlyle
funds or alongside Carlyle funds. In many cases, participation is limited by law to individuals who qualify under applicable
legal requirements. These co-investment entities generally do not require senior Carlyle professionals and employees to pay
management fees or performance allocations, however, Carlyle professionals and employees are required to pay their portion of
partnership expenses.
Carried interest income from certain funds can be distributed to senior Carlyle professionals and employees on a
current basis, but is subject to repayment by the subsidiary of the Company that acts as general partner of the fund in the event
that certain specified return thresholds are not ultimately achieved. The senior Carlyle professionals and certain other
investment professionals have personally guaranteed, subject to certain limitations, the obligation of these subsidiaries in
respect of this general partner obligation. Such guarantees are several and not joint and are limited to a particular individual’s
distributions received.
The Company does business with some of its portfolio companies; all such arrangements are on a negotiated basis.

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Substantially all revenue is earned from affiliates of Carlyle.  

10. Income Taxes
The income (loss) before provision for income taxes consists of the following:

Year Ended December 31,

2025

2024

2023

(Dollars in millions)

U.S. domestic income (loss)

$ 954.5

$ 1,163.5

$ ( 857.6 )

Foreign income

204.7

230.2

256.7

Total income (loss) before provision for income taxes

$ 1,159.2

$ 1,393.7

$ ( 600.9 )

The provision for income taxes consists of the following:

 

Year Ended December 31,

 

2025

2024

2023

 

(Dollars in millions)

Current

Federal income tax

$ 162.4

$ 132.2

$ 186.0

State and local income tax

29.2

27.0

29.1

Foreign income tax

51.4

55.5

46.2

Total current

243.0

214.7

261.3

Deferred

Federal income tax

( 24.3 )

102.5

( 333.4 )

State and local income tax

( 1.3 )

( 0.8 )

( 26.0 )

Foreign income tax

( 2.9 )

( 13.8 )

( 6.1 )

Total deferred

( 28.5 )

87.9

( 365.5 )

Total provision (benefit) for income taxes

$ 214.5

$ 302.6

$ ( 104.2 )

The following table summarizes the effective income tax rate:

Year Ended December 31,

2025

2024

2023

(Dollars in millions)

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 )

Effective income tax rate

18.5 %

21.7 %

17.3 %

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The effective tax rate is impacted by a variety of factors, including, but not limited to, changes in the sources of
income or loss during the period and whether such income or loss is taxable to the Company and its subsidiaries. The following
table reconciles the total tax provision for income taxes and effective income tax rate to the U.S. federal statutory tax rate:

 

Year Ended December 31,

 

2025

2024

2023

(Dollars in millions)

Statutory U.S. federal income tax rate

$ 243.4

21.0 %

$ 292.7

21.0 %

$ ( 126.2 )

21.0 %

State and local income taxes, net of federal
effect (1)

20.5

1.8 %

25.1

1.8 %

( 9.3 )

1.5 %

Foreign tax effects

Netherlands

17.4

1.5 %

17.5

1.3 %

15.7

( 2.6 ) %

United Kingdom

18.8

1.6 %

13.9

1.0 %

15.9

( 2.6 ) %

Other foreign jurisdictions

10.2

0.9 %

7.2

0.4 %

10.5

( 1.7 ) %

Effect of cross-border tax laws

Foreign tax credits

( 36.4 )

( 3.1 ) %

( 52.1 )

( 3.7 ) %

( 30.4 )

5.1 %

Basis difference in investments

( 14.3 )

( 1.2 ) %

—

— %

—

— %

Other

( 5.7 )

( 0.5 ) %

6.3

0.4 %

1.5

( 0.3 ) %

Tax credits

( 4.2 )

( 0.4 ) %

( 5.3 )

( 0.4 ) %

( 0.1 )

0.0 %

Changes in valuation allowances

13.9

1.2 %

1.4

0.1 %

0.3

0.0 %

Nontaxable or nondeductible items

Nontaxable income to non-controlling
interest holders

( 26.2 )

( 2.3 ) %

( 11.7 )

( 0.8 ) %

( 19.0 )

3.2 %

Officer compensation limitation

26.5

2.3 %

19.4

1.4 %

23.6

( 3.9 ) %

Other nontaxable or nondeductible items

( 2.4 )

( 0.2 ) %

3.1

0.2 %

1.3

( 0.2 ) %

Changes in unrecognized tax benefits (2)

2.2

0.2 %

( 1.8 )

( 0.1 ) %

6.8

( 1.1 ) %

Net excess tax benefits on equity-based
compensation

( 46.0 )

( 4.0 ) %

( 18.7 )

( 1.3 ) %

( 1.0 )

0.2 %

Other

( 3.2 )

( 0.3 ) %

5.6

0.4 %

6.2

( 1.3 ) %

Effective income tax rate

$ 214.5

18.5 %

$ 302.6

21.7 %

$ ( 104.2 )

17.3 %

(1) The majority of the state and local income taxes, net of federal effect, are in New York, New York City, and California for all years presented.
(2) The changes in unrecognized tax benefits include the net tax effect of tax positions taken in the current period and changes related to prior periods.
The following table summarizes the income taxes paid (net of refunds) and by jurisdiction if amount is equal to or
greater than 5% of the total:

Year Ended December 31,

2025

2024

2023

(Dollars in millions)

Federal income tax

$ 61.2

$ 146.5

$ 172.2

State and local income tax

26.5

23.0

18.9

Foreign income tax

Netherlands

28.3

22.4

30.3

United Kingdom

17.9

15.0

18.4

Other foreign income tax

19.2

11.9

10.3

Total

$ 153.1

$ 218.8

$ 250.1

D eferred income taxes reflect the net tax effects of temporary differences that may exist between the carrying amounts
of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted tax rates in
effect for the year in which the differences are expected to reverse. The following table summarizes the tax effects of the
temporary differences:

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As of December 31,

 

2025

2024

 

(Dollars in millions)

Deferred tax assets

Federal foreign tax credit carryforward

$ 70.6

$ 47.9

State net operating loss carryforwards

2.4

5.1

Foreign net operating loss carryforwards

6.5

7.8

Tax basis goodwill and intangibles

203.4

218.3

Depreciation and amortization

68.4

76.3

Deferred equity-based compensation

65.3

83.1

Lease liabilities

111.7

114.7

Accrued compensation

1,128.0

1,045.8

Other

147.8

98.8

Deferred tax assets before valuation allowance

1,804.1

1,697.8

Valuation allowance

( 74.0 )

( 62.7 )

Total deferred tax assets

$ 1,730.1

$ 1,635.1

Deferred tax liabilities (1)

Unrealized appreciation on investments

$ 1,600.4

$ 1,517.3

Lease right-of-use assets

85.1

87.4

Basis difference in investments

48.0

100.2

Other

70.7

39.6

Total deferred tax liabilities

$ 1,804.2

$ 1,744.5

Net deferred tax assets (liabilities)

$ ( 74.1 )

$ ( 109.4 )

(1) As of December 31, 2025 and 2024 , $ 1,697.9  million and $ 1,607.5  million , respectively, of deferred tax assets were offset and presented as a single
deferred tax liability amount on the Company’s consolidated balance sheets as these deferred tax assets and liabilities relate to the same jurisdiction .
The tax credit and net operating loss carryforwards consist of the following:

December 31, 2025

(Dollars in millions)

Expiration Year (1)

Federal foreign tax credit

$ 70.6

2030

State net operating loss

2.4

2026

Foreign net operating loss

6.5

2037

(1) Represents year tax attributes begin to expire.
The Company evaluated positive and negative sources of evidence in determining the realizability of its deferred tax
assets including the character, sourcing, and timing of projected future taxable income. As of December 31, 2025 and 2024 , the
Company established a total valuation allowance of $ 74.0 million and $ 62.7  million , respectively, which are primarily related to
foreign tax credit (“FTC”) deferred tax assets, with the net increase primarily due to an increase in the FTC carryforward and
related deferred tax assets. For all other deferred tax assets, the Company has concluded it is more likely than not that they will
be realized and that a valuation allowance is not needed as of December 31, 2025 .
As of December 31, 2025 and 2024 , the Company had federal, state, local, and foreign taxes payable of $ 141.4  million
and $ 46.2  million , respectively, which is recorded as a component of accounts payable, accrued expenses and other liabilities
on the accompanying consolidated balance sheets.
In the normal course of business, the Company is subject to examination by federal and certain state, local and foreign
tax regulators. As of December 31, 2025 , the Company’s U.S. federal income tax returns for the years 2022 through 2024 are
generally open under the normal three-year statute of limitations and therefore subject to examination. State and local tax
returns are generally subject to audit from 2020 to 2024 . Foreign tax returns are generally subject to audit from 2011 to 2024 .
Certain of the Company’s affiliates are currently under audit by federal, state and foreign tax authorities. The Company does

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not believe that the outcome of the audits will require it to record material reserves for uncertain tax positions or that the
outcome will have a material impact on the consolidated financial statements.
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 has recorded unrecognized tax benefits of $ 41.4 million and
$ 38.0 million as of December 31, 2025 and 2024 , respectively, which is reflected in accounts payable, accrued expenses and
other liabilities in the accompanying consolidated balance sheets. These balances include $ 17.6 million and $ 16.7 million
related to interest and penalties associated with uncertain tax positions as of December 31, 2025 and 2024 , respectively. During
the years ended December 31, 2025, 2024 and 2023 , the Company accrued penalties and interest expense, net of reductions,
related to unrecognized tax benefits of $ 0.9  million , $( 0.8 ) million , and $ 4.8  million , respectively. If recognized, $ 29.2 million
of uncertain tax positions would be recorded as a reduction in the provision for income taxes.
A reconciliation of the beginning and ending amount of unrecognized tax benefits, exclusive of penalties and interest,
is as follows:

 

As of December 31,

 

2025

2024

2023

 

(Dollars in millions)

Balance at January 1

$ 21.3

$ 24.5

$ 26.2

Additions based on tax positions related to current year

1.3

1.3

1.5

Additions for tax positions of prior years

2.6

—

1.6

Reductions for tax position of prior years

( 0.4 )

( 1.2 )

( 0.2 )

Reductions due to lapse of statute of limitations

( 1.0 )

( 0.4 )

( 4.6 )

Reductions due to settlements

—

( 2.9 )

—

Balance at December 31

$ 23.8

$ 21.3

$ 24.5

On October 8, 2021, the OECD introduced a 15% global minimum tax under the Pillar Two GloBE model rules. On
January 5, 2026, the OECD announced a “side-by-side” system under which U.S.-parented groups would be able to elect to be
exempt from certain Pillar Two provisions. Additional guidance on the “side-by-side” system and implementation of such
system remain subject to further discussions and clarifications from the OECD and local implementation by each OECD
member country. Pillar Two has not had a material impact to the Company’s provision for income taxes; however, the
Company will continue to monitor as additional guidance is released by the OECD, OECD member countries based on their
enacted law changes, and other standard-setting bodies.
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law. The OBBBA extends several
provisions from the 2017 Tax Cuts and Jobs Act along with other domestic and international corporate tax provisions. The
OBBBA did not have a material impact on the Company’s provision for income taxes for the year ended December 31, 2025 ,
but the Company will continue to monitor as additional guidance is released by U.S. Department of the Treasury, the Internal
Revenue Service, and other standard-setting bodies.

11. Non-controlling Interests in Consolidated Entities
The components of the Company’s non-controlling interests in consolidated entities are as follows:

 

As of December 31,

 

2025

2024

 

(Dollars in millions)

Non-Carlyle interests in Consolidated Funds

$ 861.5

$ 407.1

Non-Carlyle interests in majority-owned subsidiaries

433.9

334.2

Non-controlling interest in carried interest and giveback obligations

0.2

( 0.6 )

Non-controlling interests in consolidated entities

$ 1,295.6

$ 740.7

 

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The components of the Company’s non-controlling interests in income of consolidated entities are as follows:

 

Year Ended December 31,

 

2025

2024

2023

 

(Dollars in millions)

Non-Carlyle interests in Consolidated Funds

$ 109.8

$ 8.7

$ 82.6

Non-Carlyle interests in majority-owned subsidiaries

26.4

61.5

27.4

Non-controlling interest in carried interest and giveback obligations

( 0.2 )

0.5

1.7

Non-controlling interests in income of consolidated entities

$ 136.0

$ 70.7

$ 111.7

12. Earnings Per Common Share
Basic and diluted net income (loss) per common share are calculated as follows:  

 

Year Ended December 31, 2025

Year Ended December 31, 2024

Year Ended December 31, 2023

 

Basic

Diluted

Basic

Diluted

Basic

Diluted

Net income (loss) attributable to
common shares

$ 808,700,000

$ 808,700,000

$ 1,020,400,000

$ 1,020,400,000

$ ( 608,400,000 )

$ ( 608,400,000 )

Weighted-average common shares
outstanding

359,681,070

370,914,035

358,584,203

368,024,612

361,395,823

361,395,823

Net income (loss) per common share

$ 2.25

$ 2.18

$ 2.85

$ 2.77

$ ( 1.68 )

$ ( 1.68 )

The weighted-average common shares outstanding, basic and diluted, are calculated as follows:

 

Year Ended December 31, 2025

Year Ended December 31, 2024

Year Ended December 31, 2023

 

Basic

Diluted

Basic

Diluted

Basic

Diluted

The Carlyle Group Inc. weighted-average
common shares outstanding

359,681,070

359,681,070

358,584,203

358,584,203

361,395,823

361,395,823

Unvested restricted stock units

—

6,064,335

—

6,685,145

—

—

Issuable common shares and performance-
vesting restricted stock units

—

5,168,630

—

2,755,264

—

—

Weighted-average common shares outstanding

359,681,070

370,914,035

358,584,203

368,024,612

361,395,823

361,395,823

The Company applies the treasury stock method to determine the dilutive weighted-average common shares
represented by the unvested restricted stock units. Also included in the determination of dilutive weighted-average common
shares are issuable common shares associated with the Company’s investment in NGP and performance-vesting restricted stock
units. For the year ended December 31, 2023 , all such awards are antidilutive and excluded from the computation of diluted
earnings per share given the net loss attributable to common stockholders.

13. Equity
Share Repurchase Program
The Board of Directors reset the total repurchase authorization to $ 1.4  billion in shares of the Company’s common
stock, effective as of February 6, 2024. As of December 31, 2025 , $ 165.7 million of repurchase capacity remained under the
program, which reflects both common shares repurchased and shares retired in connection with the net share settlement of
equity-based awards. The Board of Directors reset the total repurchase authorization to $ 2.0  billion in shares of our common
stock, effective as of February 26, 2026. Under the share repurchase program, shares of the Company’s common stock may be
repurchased from time to time in open market transactions, in privately negotiated transactions, or otherwise, including through
Rule 10b5-1 plans. The timing and actual number of shares of common stock repurchased will depend on a variety of factors,
including legal requirements and price, economic, and market conditions. In addition to repurchases of common stock, the share
repurchase program is used for the payment of tax withholding amounts upon net share settlement of equity-based awards
granted pursuant to our Equity Incentive Plan or otherwise based on the value of shares withheld that would have otherwise
been issued to the award holder. The share repurchase program may be suspended or discontinued at any time and does not
have a specified expiration date. The following table presents the Company’s shares that have been repurchased or retired as a
result of net share settlement of equity-based awards during the years ended December 31, 2025 and 2024 . Dollar amounts
exclude the impact of excise taxes.

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Year Ended December 31,

2025

2024

Shares

$

Shares

$

(Dollars in millions)

Shares repurchased

7,523,750

$ 400.0

8,984,957

$ 395.6

Shares retired in connection with the net share settlement of
equity-based awards

5,128,944

286.5

3,332,881

159.0

Total

12,652,694

$ 686.5

12,317,838

$ 554.6

Dividends
The table below presents information regarding the quarterly dividends on the common shares, which were made at the
sole discretion of the Board of Directors of the Company.

Dividend Record Date

Dividend Payment Date

Dividend per Common
Share

Dividend to Common
Stockholders

(Dollars in millions, except per share data)

May 14, 2024

May 21, 2024

$ 0.35

$ 125.6

August 16, 2024

August 26, 2024

0.35

125.5

November 18, 2024

November 25, 2024

0.35

125.2

February 21, 2025

February 28, 2025

0.35

126.4

Total 2024 Dividend Year

$ 1.40

$ 502.7

May 19, 2025

May 27, 2025

$ 0.35

$ 126.3

August 18, 2025

August 28, 2025

0.35

126.5

November 10, 2025

November 19, 2025

0.35

125.9

February 16, 2026

February 20, 2026

0.35

126.4

Total 2025 Dividend Year

$ 1.40

$ 505.1

The Board of Directors will take into account general economic and business conditions, as well as the Company’s
strategic plans and prospects, business and investment opportunities, financial condition and obligations, legal, tax, and
regulatory restrictions, other constraints on the payment of dividends by the Company to its common stockholders or by
subsidiaries to the Company, and other such factors as the Board of Directors may deem relevant. In addition, the terms of the
Company’s credit facility provide certain limits on the Company’s ability to pay dividends.

14. Equity-Based Compensation
The Carlyle Group Inc. Amended and Restated 2012 Equity Incentive Plan (the “Equity Incentive Plan,” initially
adopted in May 2012 and as most recently amended and restated on May 29, 2024) is a source of equity-based awards
permitting the Company to grant to Carlyle employees, directors and consultants non-qualified options, share appreciation
rights, common shares, restricted stock units and other awards based on the Company’s shares of common stock. A total of
58,800,000 shares of common stock are authorized for the grant of awards under the Equity Incentive Plan, of which a total of
23,355,929 shares of the Company’s common stock remain available for grant as of December 31, 2025 .
The Company recorded equity-based compensation expense, net of forfeitures of $ 374.7 million , $ 467.9 million and
$ 249.1 million for the years ended December 31, 2025, 2024 and 2023 , respectively. Equity-based compensation expense
generates deferred tax assets, which are realized when the awards vest. The Company recorded corresponding deferred tax
benefits the years ended December 31, 2025, 2024 and 2023 of $ 65.2 million , $ 88.1 million and $ 41.1 million , respectively. A
portion of the accumulated deferred tax asset associated with equity-based compensation expense was reclassified as a current
tax benefit due to awards vesting during the years ended December 31, 2025, 2024 and 2023 . The net impact of the addition/
(reduction) in deferred tax assets due to the equity-based compensation expense recorded during the period less the tax
deduction for awards that vested was $( 17.0 ) million , $ 39.7 million and $ 12.7 million for the years ended December 31, 2025,
2024 and 2023 , respectively. As of December 31, 2025 , the total unrecognized equity-based compensation expense related to

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unvested deferred restricted stock units was $ 514.5 million , which is expected to be recognized over a weighted-average term
of 2.1 years .
Equity-based awards issued to non-employees, including non-employee directors and consultants, are recognized as
general, administrative and other expenses. The grant-date fair value of deferred restricted stock units granted to non-employees
is charged to expense on a straight-line basis over the vesting period. Equity-based awards that require the satisfaction of future
service criteria are recognized over the relevant service period. The expense for equity-based awards issued to non-employees
was $ 10.7 million , $ 11.6 million and $ 6.5 million for the years ended December 31, 2025, 2024 and 2023 , respectively.
Restricted Stock Units
The Company grants deferred restricted stock units that are unvested when granted and vest ratably over a service
period, which generally ranges from one year to four years . The grant-date fair value of the deferred restricted stock units
granted to Carlyle’s employees is charged to equity-based compensation expense on a straight-line basis over the required
service period.
During 2021, the Company granted 7.1  million shares long-term, strategic restricted stock units to certain senior
professionals, the majority of which are eligible to vest based on the achievement of annual performance targets over four years
across a number of the Company’s employees. Compensation cost is recognized over the requisite service period if it is
probable that the performance condition will be satisfied. The final tranche of these strategic awards vested in February 2025.
During 2023, the Company granted 6.8 million shares related to equity inducement awards granted in connection with
the appointment of the Company’s Chief Executive Officer, which included 2.1  million time-based restricted stock units which
are eligible to vest ratably in four equal annual installments, beginning in December 2023. The final installment of this award is
eligible to vest in December 2026.
Performance-Vesting Restricted Stock Units
The Company has also granted awards for which the vesting is subject to both a service condition and a market
condition. Compensation cost for the awards containing market conditions, including stock price performance 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.
The equity inducement awards granted in connection with the appointment of the Company’s Chief Executive Officer
in 2023 included 4.7  million performance-based restricted stock units which contain stock price performance conditions.
During the years ended December 31, 2025, 2024 and 2023 , the Company recognized $ 16.1  million , $ 30.0  million , and
$ 49.5  million , respectively, in equity-based compensation expense related to these awards.
During 2024, the Company granted 13.2 million restricted stock units to certain senior Carlyle professionals that are
eligible to vest in three tranches based on the achievement of stock price performance over service periods of one , two , and
three years . These awards had a grant-date fair value of approximately $ 347 million , which was derived using the Monte Carlo
Simulation model. The significant assumptions used to estimate the grant-date fair value of these awards included a risk-free
rate of 4.15 % and a concluded equity volatility of 40 % . During 2025, the Company granted 3.0 million restricted stock units
with stock price performance conditions to certain senior Carlyle professionals that are eligible to vest in three tranches based
on the achievement of stock price performance over service periods of generally two , three , and four years . These awards had a
grant-date fair value of $ 148.8 million , which reflected risk-free rates ranging from 3.62 % to 4.23 % and a concluded equity
volatility of 40 % . The Company recognized $ 99.6  million and $ 201.6  million in equity-based compensation expense related to
awards with stock price performance conditions, excluding the equity inducement awards described above, during the years
ended December 31, 2025 and 2024 , respectively.
Common Shares
In connection with its strategic investment in NGP, the Company agreed to grant common shares on an annual basis
with a value not to exceed $ 10.0 million based on a prescribed formula, which will vest over a 42 -month perio d. B ecause the
Company accounts for its investment in NGP under the equity method of accounting, the fair value of the shares is recognized
as a reduction to principal investment income. During the years ended December 31, 2025, 2024 and 2023 , the Company
recognized $ 7.3 million , $ 8.9 million and $ 8.8 million , respectively, as a reduction to principal investment income related to

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these shares. In connection with the Restructuring of the Company’s strategic investment in NGP as described in Note 4,
Investments, this obligation to grant its common shares to NGP annually was terminated, following a final grant made with
respect to 2030.
A summary of the status of the Company’s non-vested equity-based awards as of December 31, 2025 and a summary
of changes from December 31, 2022 through December 31, 2025 , are presented below:

Unvested Shares

Performance-
Vesting
Restricted
Stock Units

Weighted-
Average
Grant Date
Fair Value

Restricted
Stock
Units

Weighted-
Average
Grant Date
Fair Value

Unvested
Common
Shares

Weighted-
Average
Grant Date
Fair Value

Balance, December 31, 2022

—

$ —

10,865,248

$ 35.78

452,880

$ 39.73

Granted (1)

4,941,317

$ 23.19

13,332,230

$ 32.36

258,579

$ 39.73

Vested

—

$ —

5,280,029

$ 31.86

252,530

$ 34.85

Forfeited

—

$ —

1,685,119

$ 32.24

—

$ 37.91

Balance, December 31, 2023

4,941,317

$ 23.19

17,232,330

$ 34.68

458,929

$ 37.87

Granted (1)

13,286,934

$ 26.55

5,659,849

$ 40.92

247,293

$ 40.08

Vested (2)

995,848

$ 29.86

6,932,134

$ 33.39

247,316

$ 34.52

Forfeited

292,253

$ 24.55

1,993,557

$ 33.86

—

$ —

Balance, December 31, 2024

16,940,150

$ 25.41

13,966,488

$ 37.97

458,906

$ 39.35

Granted (1)

3,121,401

$ 49.04

4,997,491

$ 55.65

171,891

$ 56.33

Vested (3)

5,362,679

$ 30.83

7,247,447

$ 35.19

232,959

$ 36.87

Forfeited

484,304

$ 23.37

377,498

$ 43.36

—

$ —

Balance, December 31, 2025

14,214,568

$ 28.63

11,339,034

$ 47.36

397,838

$ 46.04

(1) Includes shares reserved for issuance upon settlement of dividend-equivalent rights carried by certain restricted stock units concurrently with the
settlement of the restricted stock units for shares.
(2) Includes 3,332,881 shares that were retired in connection with the net share settlement of equity-based awards. The Company paid $ 159.0 million of
taxes related to the net share settlement of equity-based awards during the year ended December 31, 2024 , which is included within financing activities
in the consolidated statements of cash flows.
(3) Includes 5,128,944 shares that were retired in connection with the net share settlement of equity-based awards. The Company paid $ 286.5 million of
taxes related to the net share settlement of equity-based awards during the year ended December 31, 2025 , which is included within financing activities
in the consolidated statements of cash flows.

15. Segment Reporting
Carlyle conducts its operations through three reportable segments:
Global Private Equity  – The Global Private Equity segment advises buyout, growth, real estate, and infrastructure &
natural resources funds. The segment also includes the NGP Carry Funds advised by NGP.
Global Credit  – 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.
Carlyle AlpInvest – The Carlyle AlpInvest segment advises global private equity programs that pursue secondary
purchases and financing of existing portfolios, managed co-investment programs, and primary fund investments.
The Company’s reportable business segments are differentiated by their various investment focuses and strategies.
Overhead costs are generally allocated based on cash-based compensation and benefits expense for each segment. The
Company’s earnings from its investment in NGP are presented in the respective operating captions within the Global Private
Equity segment.
Distributable Earnings . Distributable Earnings, or “DE,” is a key performance benchmark used in the Company’s
industry and is evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief Executive Officer, in
making resource deployment and compensation decisions and in assessing performance of the Company’s three reportable
segments. The CODM also uses DE in budgeting, forecasting, and the overall management of the Company’s segments. The
CODM believes that reporting DE is helpful to understanding the Company’s business and that investors should review the
same supplemental financial measure that the CODM uses to analyze the Company’s segment performance. DE is intended to

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show the amount of net realized earnings without the effects of the consolidation of the Consolidated Funds. DE is derived from
the Company’s segment reported results and is used to assess performance.
  Distributable Earnings differs from income (loss) before provision for income taxes computed in accordance with U.S.
GAAP in that it includes certain tax expenses associated with certain foreign performance revenues (composed of performance
allocations and incentive fees), and does not include unrealized performance allocations and related compensation expense,
unrealized principal investment income, equity-based compensation expense, net income (loss) attributable to non-Carlyle
interests in consolidated entities, or charges (credits) related to Carlyle corporate actions and non-recurring items that affect
period-to-period comparability and are not reflective of the Company’s operational performance. Charges (credits) related to
Carlyle corporate actions and non-recurring items include: charges associated with the Conversion, charges (credits) associated
with acquisitions, dispositions or strategic investments, changes in the tax receivable agreement liability, amortization and any
impairment charges associated with acquired intangible assets, transaction costs associated with acquisitions and dispositions,
charges associated with earn-outs and contingent consideration including gains and losses associated with the estimated fair
value of contingent considerations issued in conjunction with acquisitions or strategic investments, impairment charges
associated with lease right-of-use assets, gains and losses from the retirement of debt, charges associated with contract
terminations and employee severance, and non-recurring items that affect period-to-period comparability and are not reflective
of the Company’s operating performance. Management believes the inclusion or exclusion of these items provides investors
with a meaningful indication of the Company’s core operating performance.
Fee Related Earnings . Fee Related Earnings, or “FRE,” is a component of DE and is used to assess the ability of the
business to cover base compensation and operating expenses from total fee revenues. FRE adjusts DE to exclude net realized
performance revenues, realized principal investment income, and net interest (interest income less interest expense). Fee
Related Earnings includes fee related performance revenues and related compensation expense. Fee related performance
revenues represent the realized portion of performance revenues that are measured and received on a recurring basis, are not
dependent on realization events, and which have no risk of giveback.
Asset information by segment is not disclosed because this information is not used by the CODM to make resource
deployment decisions or evaluate the performance of the Company’s segments.

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The following tables present the financial data for the Company’s three reportable segments for the year ended
December 31, 2025 :

 

Year Ended December 31, 2025

 

Global
Private
Equity

Global
Credit

Carlyle
AlpInvest

Total

 

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 1,176.3

$ 609.1

$ 457.7

$ 2,243.1

Portfolio advisory and transaction fees, net and other

39.0

185.8

0.3

225.1

Fee related performance revenues

0.3

115.2

59.0

174.5

Total fund level fee revenues

1,215.6

910.1

517.0

2,642.7

Realized performance revenues

845.6

98.0

93.8

1,037.4

Realized principal investment income

56.3

59.4

36.1

151.8

Interest income

28.7

31.6

9.3

69.6

Total revenues

2,146.2

1,099.1

656.2

3,901.5

Segment Expenses

Compensation and benefits

Cash-based compensation and benefits

397.2

351.9

153.0

902.1

Realized performance revenues related compensation

540.4

59.9

79.8

680.1

Total compensation and benefits

937.6

411.8

232.8

1,582.2

General, administrative, and other indirect expenses (1)

228.1

140.3

82.0

450.4

Depreciation and amortization expense

29.4

16.4

8.2

54.0

Interest expense

60.3

49.6

13.8

123.7

Total expenses

1,255.4

618.1

336.8

2,210.3

(=) Distributable Earnings

$ 890.8

$ 481.0

$ 319.4

$ 1,691.2

(-) Realized Net Performance Revenues

305.2

38.1

14.0

357.3

(-) Realized Principal Investment Income

56.3

59.4

36.1

151.8

(+) Net Interest

31.6

18.0

4.5

54.1

(=) Fee Related Earnings

$ 560.9

$ 401.5

$ 273.8

$ 1,236.2

(1) General, administrative, and other indirect expenses primarily comprised professional fees, rent and other office expenses, IT expenses, travel and
entertainment expenses, and fundraising costs.
 

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The following tables present the financial data for the Company’s three reportable segments for the year ended
December 31, 2024 :

 

Year Ended December 31, 2024

 

Global
Private
Equity

Global
Credit

Carlyle
AlpInvest

Total

 

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 1,212.0

$ 558.3

$ 337.2

$ 2,107.5

Portfolio advisory and transaction fees, net and other

24.6

138.8

0.2

163.6

Fee related performance revenues

6.9

109.1

16.7

132.7

Total fund level fee revenues

1,243.5

806.2

354.1

2,403.8

Realized performance revenues

927.2

32.0

116.7

1,075.9

Realized principal investment income

49.7

46.2

5.1

101.0

Interest income

28.1

39.0

7.6

74.7

Total revenues

2,248.5

923.4

483.5

3,655.4

Segment Expenses

Compensation and benefits

Cash-based compensation and benefits

422.8

320.1

118.8

861.7

Realized performance revenues related compensation

590.1

19.4

100.3

709.8

Total compensation and benefits

1,012.9

339.5

219.1

1,571.5

General, administrative, and other indirect expenses (1)

195.2

140.4

55.1

390.7

Depreciation and amortization expense

26.8

13.2

6.8

46.8

Interest expense

56.3

53.0

11.6

120.9

Total expenses

1,291.2

546.1

292.6

2,129.9

(=) Distributable Earnings

$ 957.3

$ 377.3

$ 190.9

$ 1,525.5

(-) Realized Net Performance Revenues

337.1

12.6

16.4

366.1

(-) Realized Principal Investment Income

49.7

46.2

5.1

101.0

(+) Net Interest

28.2

14.0

4.0

46.2

(=) Fee Related Earnings

$ 598.7

$ 332.5

$ 173.4

$ 1,104.6

(1) General, administrative, and other indirect expenses primarily comprised professional fees, rent and other office expenses, IT expenses, travel and
entertainment expenses, and fundraising costs.
 

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

The following tables present the financial data for the Company’s three reportable segments for the year ended
December 31, 2023 :

 

Year Ended December 31, 2023

 

Global
Private
Equity

Global
Credit

Carlyle
AlpInvest

Total

 

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 1,309.8

$ 512.2

$ 242.4

$ 2,064.4

Portfolio advisory and transaction fees, net and other

18.4

62.0

—

80.4

Fee related performance revenues

68.3

89.1

3.6

161.0

Total fund level fee revenues

1,396.5

663.3

246.0

2,305.8

Realized performance revenues

805.1

43.5

89.7

938.3

Realized principal investment income

45.3

37.1

6.4

88.8

Interest income

31.6

34.7

5.9

72.2

Total revenues

2,278.5

778.6

348.0

3,405.1

Segment Expenses

Compensation and benefits

Cash-based compensation and benefits

583.8

324.5

123.6

1,031.9

Realized performance revenues related compensation

308.1

20.3

78.9

407.3

Total compensation and benefits

891.9

344.8

202.5

1,439.2

General, administrative, and other indirect expenses (1)

221.9

106.8

47.8

376.5

Depreciation and amortization expense

26.0

7.6

4.4

38.0

Interest expense

66.9

45.0

9.0

120.9

Total expenses

1,206.7

504.2

263.7

1,974.6

(=) Distributable Earnings

$ 1,071.8

$ 274.4

$ 84.3

$ 1,430.5

(-) Realized Net Performance Revenues

497.0

23.2

10.8

531.0

(-) Realized Principal Investment Income

45.3

37.1

6.4

88.8

(+) Net Interest

35.3

10.3

3.1

48.7

(=) Fee Related Earnings

$ 564.8

$ 224.4

$ 70.2

$ 859.4

(1) General, administrative, and other indirect expenses primarily comprised professional fees, rent and other office expenses, IT expenses, travel and
entertainment expenses, and fundraising costs.
The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes for the
years ended December 31, 2025, 2024 and 2023 :

 

Year Ended December 31, 2025

 

Total Reportable
Segments

Consolidated
Funds

Reconciling
Items

 

Carlyle
Consolidated

 

(Dollars in millions)

Revenues

$ 3,901.5

$ 635.3

$ 243.0

(a)
 

$ 4,779.8

Expenses

$ 2,210.3

$ 678.4

$ 849.8

(b)
 

$ 3,738.5

Other income (loss)

$ —

$ 117.9

$ —

(c)
 

$ 117.9

Distributable earnings

$ 1,691.2

$ 74.8

$ ( 606.8 )

(d)
 

$ 1,159.2

 

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

 

Year Ended December 31, 2024

 

Total Reportable
Segments

Consolidated
Funds

Reconciling
Items

 

Carlyle
Consolidated

 

(Dollars in millions)

Revenues

$ 3,655.4

$ 631.6

$ 1,138.8

(a)
 

$ 5,425.8

Expenses

$ 2,129.9

$ 610.3

$ 1,315.9

(b)
 

$ 4,056.1

Other income (loss)

$ —

$ 24.0

$ —

(c)
 

$ 24.0

Distributable earnings

$ 1,525.5

$ 45.3

$ ( 177.1 )

(d)
 

$ 1,393.7

 

Year Ended December 31, 2023

 

Total Reportable
Segments

Consolidated
Funds

Reconciling
Items

 

Carlyle
Consolidated

 

(Dollars in millions)

Revenues

$ 3,405.1

$ 570.1

$ ( 1,011.3 )

(a)
 

$ 2,963.9

Expenses

$ 1,974.6

$ 460.3

$ 1,136.8

(b)
 

$ 3,571.7

Other income (loss)

$ —

$ 6.9

$ —

(c)
 

$ 6.9

Distributable earnings

$ 1,430.5

$ 116.7

$ ( 2,148.1 )

(d)
 

$ ( 600.9 )

(a) The Revenues adjustment principally represents unrealized performance revenues, unrealized principal investment
income (loss) (including Fortitude), revenues earned from the Consolidated Funds which were eliminated in
consolidation to arrive at the Company’s total revenues, adjustments for amounts attributable to non-controlling
interests in consolidated entities, adjustments related to expenses associated with the investments in NGP Management
and its affiliates that are included in operating captions or are excluded from the segment results, and adjustments to
reflect the reimbursement of certain costs incurred on behalf of Carlyle funds on a net basis, as detailed below:

Year Ended December 31,

2025

2024

2023

(Dollars in millions)

Unrealized performance and fee related performance revenues

$ 121.5

$ 1,031.9

$ ( 1,046.6 )

Unrealized principal investment income (loss)

( 19.4 )

34.1

36.1

Principal investment loss from dilution of indirect investment in Fortitude

—

—

( 104.0 )

Adjustments related to expenses associated with investments in NGP
Management and its affiliates

( 130.3 )

( 13.1 )

( 13.8 )

Non-controlling interests and other adjustments to present certain costs on a net
basis

290.4

167.9

191.6

Elimination of revenues of Consolidated Funds

( 19.2 )

( 82.0 )

( 74.6 )

$ 243.0

$ 1,138.8

$ ( 1,011.3 )

The following table reconciles the total segments fund level fee revenue to the most directly comparable U.S. GAAP
measure, the Company’s consolidated fund management fees, for the years ended December 31, 2025, 2024 and 2023 :

Year Ended December 31,

2025

2024

2023

(Dollars in millions)

Total Reportable Segments - Fund level fee revenues

$ 2,642.7

$ 2,403.8

$ 2,305.8

Adjustments (1)

( 246.1 )

( 215.7 )

( 262.6 )

Carlyle Consolidated - Fund management fees

$ 2,396.6

$ 2,188.1

$ 2,043.2

(1) Adjustments represent the reclassification of NGP management fees from principal investment income, the reclassification of fee
related performance revenues from certain products , management fees earned from Consolidated Funds which were eliminated in
consolidation to arrive at the Company’s fund management fees, and the reclassification of certain amounts included in portfolio
advisory fees, net and other in the segment results that are included in interest and other income in the U.S. GAAP results.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

(b) The Expenses adjustment represents the elimination of intercompany expenses of the Consolidated Funds payable to the
Company, the inclusion of equity-based compensation, certain tax expenses associated with realized performance
revenues related compensation, unrealized performance revenues related compensation, adjustments related to expenses
associated with the investment in NGP Management that are included in operating captions, adjustments to reflect the
reimbursement of certain costs incurred on behalf of Carlyle funds on a net basis, changes in the tax receivable
agreement liability, and charges and credits associated with Carlyle corporate actions and non-recurring items, as
detailed below:

 

Year Ended December 31,

 

2025

2024

2023

(Dollars in millions)

Unrealized performance and fee related performance revenue compensation expense

$ 99.0

$ 635.2

$ 612.6

Equity-based compensation

376.6

476.5

260.1

Acquisition or disposition-related charges and amortization of intangibles and
impairment

262.4

136.6

145.3

Tax (expense) benefit associated with certain foreign performance revenues related
compensation

( 0.5 )

( 1.0 )

( 1.0 )

Non-controlling interests and other adjustments to present certain costs on a net basis

133.9

92.8

148.7

Other adjustments

32.6

21.2

11.6

Elimination of expenses of Consolidated Funds

( 54.2 )

( 45.4 )

( 40.5 )

$ 849.8

$ 1,315.9

$ 1,136.8

 
(c) The Other Income (Loss) adjustment results from the Consolidated Funds that were eliminated in consolidation to
arrive at the Company’s total Other Income (Loss).
(d) The following table is a reconciliation of Income (Loss) Before Provision for Income Taxes to Distributable Earnings
and to Fee Related Earnings:

 

Year Ended December 31,

 

2025

2024

2023

(Dollars in millions)

Income (loss) before provision for income taxes

$ 1,159.2

$ 1,393.7

$ ( 600.9 )

Adjustments:

Net unrealized performance and fee related performance revenues

( 22.5 )

( 396.7 )

1,659.2

Unrealized principal investment (income) loss

19.4

( 34.1 )

( 36.1 )

Principal investment loss from dilution of indirect investment in Fortitude

—

—

104.0

Equity-based compensation (1)

376.6

476.5

260.1

Acquisition or disposition-related charges, including amortization of intangibles
and impairment

262.4

136.6

145.3

Net income attributable to non-controlling interests in consolidated entities

( 136.0 )

( 70.7 )

( 111.7 )

Tax (expense) benefit associated with certain foreign performance revenues

( 0.5 )

( 1.0 )

( 1.0 )

Other adjustments (2)

32.6

21.2

11.6

Distributable Earnings

$ 1,691.2

$ 1,525.5

$ 1,430.5

Realized performance revenues, net of related compensation (3)

357.3

366.1

531.0

Realized principal investment income (3)

151.8

101.0

88.8

Net interest

54.1

46.2

48.7

Fee Related Earnings

$ 1,236.2

$ 1,104.6

$ 859.4

(1) Equity-based compensation for the years ended December 31, 2025, 2024 and 2023 included amounts that are presented in
principal investment income and general, administrative and other expenses in the Company’s consolidated statements of
operations.
(2) Includes charges (credits) related to Carlyle corporate actions and non-recurring items that affect period-to-period
comparability and are not reflective of the Company’s operating performance.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

(3) See reconciliation to most directly comparable U.S. GAAP measure below:

 

Year Ended December 31, 2025

 

Carlyle
Consolidated

Adjustments (4)

Total
Reportable
Segments

 

(Dollars in millions)

Performance revenues

$ 1,222.5

$ ( 185.1 )

$ 1,037.4

Performance revenues related compensation expense

936.3

( 256.2 )

680.1

Net performance revenues

$ 286.2

$ 71.1

$ 357.3

Principal investment income (loss)

$ 119.2

$ 32.6

$ 151.8

 

Year Ended December 31, 2024

 

Carlyle
Consolidated

Adjustments (4)

Total
Reportable
Segments

 

(Dollars in millions)

Performance revenues

$ 2,015.7

$ ( 939.8 )

$ 1,075.9

Performance revenues related compensation expense

1,361.5

( 651.7 )

709.8

Net performance revenues

$ 654.2

$ ( 288.1 )

$ 366.1

Principal investment income (loss)

$ 238.7

$ ( 137.7 )

$ 101.0

 

Year Ended December 31, 2023

 

Carlyle
Consolidated

Adjustments (4)

Total
Reportable
Segments

 

(Dollars in millions)

Performance revenues

$ ( 88.6 )

$ 1,026.9

$ 938.3

Performance revenues related compensation expense

1,103.7

( 696.4 )

407.3

Net performance revenues

$ ( 1,192.3 )

$ 1,723.3

$ 531.0

Principal investment income (loss)

$ 133.4

$ ( 44.6 )

$ 88.8

 
(4) Adjustments to performance revenues and principal investment income (loss) relate to (i) unrealized performance allocations
net of related compensation expense and unrealized principal investment income, which are excluded from the segment results,
(ii) amounts earned from the Consolidated Funds, which are eliminated in the U.S. GAAP consolidation but are included in the
segment results, (iii) amounts attributable to non-controlling interests in consolidated entities, which are excluded from the
segment results, (iv) the reclassification of NGP performance revenues, which are included in principal investment income in
the U.S. GAAP financial statements, (v) the reclassification of fee related performance revenues, which are included in fund
level fee revenues in the segment results, and (vi) the reclassification of tax expenses associated with certain foreign
performance revenues. Adjustments to principal investment income (loss) also include the reclassification of earnings for the
investments in NGP Management and its affiliates to the appropriate operating captions for the segment results, the exclusion
of charges associated with the investment in NGP Management and its affiliates from the segment results and the exclusion of
the principal investment loss from dilution of the indirect investment in Fortitude.
Information by Geographic Location
Carlyle primarily transacts business in the United States and a significant amount of its revenues are generated
domestically. The Company has established investment vehicles whose primary focus is making investments in specified
geographical locations. The tables below present consolidated revenues based on the geographical focus of the associated
investment vehicle.

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

 

Total Revenues

 

Share

%

 

(Dollars in millions)

Year Ended December 31, 2025

Americas (1)

$ 3,281.9

69 %

EMEA (2)

1,451.3

30 %

Asia-Pacific (3)

46.6

1 %

Total

$ 4,779.8

100 %

 

 

Total Revenues

 

Share

%

 

(Dollars in millions)

Year Ended December 31, 2024

Americas (1)

$ 4,096.4

76 %

EMEA (2)

1,047.6

19 %

Asia-Pacific (3)

281.8

5 %

Total

$ 5,425.8

100 %

 

 

Total Revenues

 

Share

%

 

(Dollars in millions)

Year Ended December 31, 2023

Americas (1)

$ 1,289.0

44 %

EMEA (2)

1,318.9

44 %

Asia-Pacific (3)

356.0

12 %

Total

$ 2,963.9

100 %

(1) Relates to investment vehicles whose primary focus is the United States or South America .
(2) Relates to investment vehicles whose primary focus is Europe, the Middle East, and Africa .
(3) Relates to investment vehicles whose primary focus is Asia, including China, Japan, India, South Korea, and Australia.
The Company’s long-lived assets consist of Lease right-of-use assets, net , Fixed assets, net , and Intangible assets, net
excluding goodwill. As of December 31, 2025, the Company held long-lived assets in the Americas and EMEA of
$ 650.5  million and $ 214.3  million , respectively. As of December 31, 2024, the Company held long-lived assets in the Americas
and EMEA of $ 781.0  million and $ 207.2  million , respectively.

16. Subsequent Events
In February 2026 , the Company’s Board of Directors declared a quarterly dividend of $ 0.35 per share of common
stock to common stockholders of record at the close of business on February 16, 2026 , payable on February 20, 2026 .

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

17. Supplemental Financial Information
The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the
Company’s financial position as of December 31, 2025 and 2024 and results of operations for the years ended December 31,
2025, 2024 and 2023 . The supplemental statement of cash flows is presented without effects of the Consolidated Funds.

 

As of December 31, 2025

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Assets

Cash and cash equivalents

$ 1,970.2

$ —

$ —

$ 1,970.2

Cash and cash equivalents held at Consolidated Funds

—

1,235.1

—

1,235.1

Investments, including accrued performance allocations of $ 7,620.3

12,219.6

—

( 1,066.9 )

11,152.7

Investments of Consolidated Funds

—

12,519.8

—

12,519.8

Due from affiliates and other receivables, net

1,135.0

—

( 300.2 )

834.8

Due from affiliates and other receivables of Consolidated Funds, net

—

206.4

—

206.4

Fixed assets, net

224.9

—

—

224.9

Lease right-of-use assets, net

331.9

—

—

331.9

Deposits and other

98.2

2.7

—

100.9

Intangible assets, net

507.1

—

—

507.1

Deferred tax assets

32.2

—

—

32.2

Total assets

$ 16,519.1

$ 13,964.0

$ ( 1,367.1 )

$ 29,116.0

Liabilities and equity

Debt obligations

$ 2,997.0

$ —

$ —

$ 2,997.0

Loans payable of Consolidated Funds

—

10,712.4

( 286.4 )

10,426.0

Accounts payable, accrued expenses and other liabilities

543.7

—

—

543.7

Accrued compensation and benefits

5,849.4

—

—

5,849.4

Due to affiliates

197.8

6.1

—

203.9

Deferred revenue

129.2

—

—

129.2

Deferred tax liabilities

106.3

—

—

106.3

Other liabilities of Consolidated Funds

—

1,260.7

( 0.3 )

1,260.4

Lease liabilities

470.2

—

—

470.2

Accrued giveback obligations

72.8

—

—

72.8

Total liabilities

10,366.4

11,979.2

( 286.7 )

22,058.9

Common stock

3.6

—

—

3.6

Additional paid-in capital

4,285.8

1,099.2

( 1,099.2 )

4,285.8

Retained earnings

1,642.3

—

—

1,642.3

Accumulated other comprehensive loss

( 213.1 )

24.1

18.8

( 170.2 )

Non-controlling interests in consolidated entities

434.1

861.5

—

1,295.6

Total equity

6,152.7

1,984.8

( 1,080.4 )

7,057.1

Total liabilities and equity

$ 16,519.1

$ 13,964.0

$ ( 1,367.1 )

$ 29,116.0

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

As of December 31, 2024

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Assets

Cash and cash equivalents

$ 1,266.0

$ —

$ —

$ 1,266.0

Cash and cash equivalents held at Consolidated Funds

—

830.4

—

830.4

Investments, including accrued performance allocations of $ 7,053.5

11,324.1

—

( 387.4 )

10,936.7

Investments of Consolidated Funds

—

7,782.4

—

7,782.4

Due from affiliates and other receivables, net

1,111.0

—

( 305.4 )

805.6

Due from affiliates and other receivables of Consolidated Funds, net

—

237.1

—

237.1

Fixed assets, net

185.3

—

—

185.3

Lease right-of-use assets, net

341.4

—

—

341.4

Deposits and other

55.1

1.8

—

56.9

Intangible assets, net

634.1

—

—

634.1

Deferred tax assets

27.6

—

—

27.6

Total assets

$ 14,944.6

$ 8,851.7

$ ( 692.8 )

$ 23,103.5

Liabilities and equity

Debt obligations

$ 2,143.5

$ —

$ —

$ 2,143.5

Loans payable of Consolidated Funds

—

7,161.6

( 297.4 )

6,864.2

Accounts payable, accrued expenses and other liabilities

389.8

—

—

389.8

Accrued compensation and benefits

5,446.6

—

—

5,446.6

Due to affiliates

236.6

5.3

—

241.9

Deferred revenue

138.7

—

—

138.7

Deferred tax liabilities

137.0

—

—

137.0

Other liabilities of Consolidated Funds

—

861.7

( 0.1 )

861.6

Lease liabilities

488.6

—

—

488.6

Accrued giveback obligations

44.0

—

—

44.0

Total liabilities

9,024.8

8,028.6

( 297.5 )

16,755.9

Common stock

3.6

—

—

3.6

Additional paid-in capital

3,892.3

423.5

( 423.5 )

3,892.3

Retained earnings

2,040.8

—

—

2,040.8

Accumulated other comprehensive loss

( 350.5 )

( 7.5 )

28.2

( 329.8 )

Non-controlling interests in consolidated entities

333.6

407.1

—

740.7

Total equity

5,919.8

823.1

( 395.3 )

6,347.6

Total liabilities and equity

$ 14,944.6

$ 8,851.7

$ ( 692.8 )

$ 23,103.5

 

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

 

Year Ended December 31, 2025

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Revenues

Fund management fees

$ 2,439.1

$ —

$ ( 42.5 )

$ 2,396.6

Incentive fees

197.1

—

( 6.6 )

190.5

Investment income

Performance allocations

1,232.0

—

( 9.5 )

1,222.5

Principal investment income

58.6

—

60.6

119.2

Total investment income

1,290.6

—

51.1

1,341.7

Interest and other income

236.9

—

( 21.2 )

215.7

Interest and other income of Consolidated Funds

—

635.3

—

635.3

Total revenues

4,163.7

635.3

( 19.2 )

4,779.8

Expenses

Compensation and benefits

Cash-based compensation and benefits

895.2

—

—

895.2

Equity-based compensation

374.7

—

—

374.7

Performance allocations and incentive fee related compensation

936.3

—

—

936.3

Total compensation and benefits

2,206.2

—

—

2,206.2

General, administrative and other expenses

784.4

—

( 0.1 )

784.3

Interest

123.9

—

—

123.9

Interest and other expenses of Consolidated Funds

—

678.4

( 54.1 )

624.3

Other non-operating income

( 0.2 )

—

—

( 0.2 )

Total expenses

3,114.3

678.4

( 54.2 )

3,738.5

Other income

Net investment income of Consolidated Funds

—

117.9

—

117.9

Income before provision for income taxes

1,049.4

74.8

35.0

1,159.2

Provision for income taxes

214.5

—

—

214.5

Net income

834.9

74.8

35.0

944.7

Net income attributable to non-controlling interests in consolidated entities

26.2

—

109.8

136.0

Net income attributable to The Carlyle Group Inc.

$ 808.7

$ 74.8

$ ( 74.8 )

$ 808.7

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

 

Year Ended December 31, 2024

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Revenues

Fund management fees

$ 2,218.3

$ —

$ ( 30.2 )

$ 2,188.1

Incentive fees

134.2

—

( 0.7 )

133.5

Investment income

Performance allocations

2,016.8

—

( 1.1 )

2,015.7

Principal investment income

267.7

—

( 29.0 )

238.7

Total investment income

2,284.5

—

( 30.1 )

2,254.4

Interest and other income

239.2

—

( 21.0 )

218.2

Interest and other income of Consolidated Funds

—

631.6

—

631.6

Total revenues

4,876.2

631.6

( 82.0 )

5,425.8

Expenses

Compensation and benefits

Cash-based compensation and benefits

875.5

—

—

875.5

Equity-based compensation

467.9

—

—

467.9

Performance allocations and incentive fee related compensation

1,361.5

—

—

1,361.5

Total compensation and benefits

2,704.9

—

—

2,704.9

General, administrative and other expenses

665.6

—

—

665.6

Interest

121.0

—

—

121.0

Interest and other expenses of Consolidated Funds

—

610.3

( 45.4 )

564.9

Other non-operating income

( 0.3 )

—

—

( 0.3 )

Total expenses

3,491.2

610.3

( 45.4 )

4,056.1

Other income

Net investment income of Consolidated Funds

—

24.0

—

24.0

Income before provision for income taxes

1,385.0

45.3

( 36.6 )

1,393.7

Provision for income taxes

302.6

—

—

302.6

Net income

1,082.4

45.3

( 36.6 )

1,091.1

Net income attributable to non-controlling interests in consolidated entities

62.0

—

8.7

70.7

Net income attributable to The Carlyle Group Inc.

$ 1,020.4

$ 45.3

$ ( 45.3 )

$ 1,020.4

 

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

 

Year Ended December 31, 2023

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Revenues

Fund management fees

$ 2,074.3

$ —

$ ( 31.1 )

$ 2,043.2

Incentive fees

96.2

—

( 2.5 )

93.7

Investment income

Performance allocations

( 85.0 )

—

( 3.6 )

( 88.6 )

Principal investment income

160.2

—

( 26.8 )

133.4

Total investment income

75.2

—

( 30.4 )

44.8

Interest and other income

222.7

—

( 10.6 )

212.1

Interest and other income of Consolidated Funds

—

570.1

—

570.1

Total revenues

2,468.4

570.1

( 74.6 )

2,963.9

Expenses

Compensation and benefits

Cash-based compensation and benefits

1,023.7

—

—

1,023.7

Equity-based compensation

249.1

—

—

249.1

Performance allocations and incentive fee related compensation

1,103.7

—

—

1,103.7

Total compensation and benefits

2,376.5

—

—

2,376.5

General, administrative and other expenses

651.4

—

0.7

652.1

Interest

123.8

—

—

123.8

Interest and other expenses of Consolidated Funds

—

460.3

( 41.2 )

419.1

Other non-operating expenses

0.2

—

—

0.2

Total expenses

3,151.9

460.3

( 40.5 )

3,571.7

Other income

Net investment income of Consolidated Funds

—

6.9

—

6.9

Income (loss) before provision for income taxes

( 683.5 )

116.7

( 34.1 )

( 600.9 )

Benefit for income taxes

( 104.2 )

—

—

( 104.2 )

Net income (loss)

( 579.3 )

116.7

( 34.1 )

( 496.7 )

Net income attributable to non-controlling interests in consolidated entities

29.1

—

82.6

111.7

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

$ ( 608.4 )

$ 116.7

$ ( 116.7 )

$ ( 608.4 )

 

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The Carlyle Group Inc.
Notes to the Consolidated Financial Statements

 

Year Ended December 31,

 

2025

2024

2023

 

(Dollars in millions)

Cash flows from operating activities

Net income (loss)

$ 834.9

$ 1,082.4

$ ( 579.3 )

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

( 288.4 )

( 360.6 )

1,569.2

Non-cash principal investment income

( 11.7 )

( 207.0 )

( 130.7 )

Other non-cash amounts

33.9

1.8

23.8

Purchases of investments

( 1,292.7 )

( 886.7 )

( 345.8 )

Proceeds from the sale of investments

1,029.4

737.5

485.9

Payments of contingent consideration

( 2.7 )

( 4.1 )

( 68.6 )

Change in deferred taxes, net

( 29.8 )

91.2

( 368.7 )

Change in due from affiliates and other receivables

45.0

( 27.8 )

( 33.5 )

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 operating activities

1,088.6

1,088.9

955.7

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 )

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

—

—

Payments on CLO borrowings

( 56.5 )

( 120.5 )

( 17.2 )

Proceeds from CLO borrowings, net of financing costs

90.0

0.7

12.0

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

191.2

229.5

11.8

Distributions to non-controlling interest holders

( 130.5 )

( 131.0 )

( 64.0 )

Common shares repurchased and net share settlement of equity-based awards

( 686.5 )

( 554.6 )

( 203.5 )

Change in due to/from affiliates financing activities

( 24.7 )

( 24.4 )

( 16.2 )

Net cash used in financing activities

( 327.2 )

( 1,172.1 )

( 843.6 )

Effect of foreign exchange rate changes

45.1

( 14.8 )

12.1

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

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

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
 

ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that information required to be
disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods
specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management,
including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding
required disclosures. In designing disclosure controls and procedures, our management necessarily was required to apply its
judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any
disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and
there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any
controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of
achieving the desired control objectives.
Our management, with the participation of our principal executive officer and principal financial officer, has evaluated
the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by
this report. Based upon that evaluation and subject to the foregoing, our principal executive officer and principal financial
officer concluded that, as of the end of the period covered by this report, the design and operation of our disclosure controls and
procedures were effective to accomplish their objectives at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f)
under the Exchange Act) during the quarter ended December 31, 2025 that have materially affected, or that are reasonably
likely to materially affect, our internal control over financial reporting.
Management’s Report on Internal Control Over Financial Reporting
Management of the Company is responsible for establishing and maintaining adequate internal control over financial
reporting. The Company’s internal control over financial reporting is a process designed under the supervision of its principal
executive and principal financial officer and effected by the Company’s Board of Directors, management, and other personnel,
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of its consolidated financial
statements for external reporting purposes in accordance with U.S. generally accepted accounting principles.
The Company’s internal control over financial reporting includes policies and procedures that pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of the Company’s
assets; provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial
statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the
Company are being made only in accordance with authorizations of management and the directors; and 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 its consolidated financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In
addition, 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.
Management conducted an assessment of the effectiveness of the Company’s internal control over financial reporting
as of December 31, 2025 based on the framework established in Internal Control—Integrated Framework (2013)  issued by the
Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management has determined
that the Company’s internal control over financial reporting as of December 31, 2025 was effective.

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Ernst & Young LLP, an independent registered public accounting firm, has audited the Company’s consolidated
financial statements included in this Annual Report on Form 10-K and issued its report on the effectiveness of the Company’s
internal control over financial reporting as of December 31, 2025 , which is included herein.

ITEM 9B . OTHER INFORMATION
On February 24, 2026, David M. Rubenstein, Co-Founder and Co-Chairman of our Board of Directors, delivered
notice to the Company terminating the Stockholder Agreement between the Company and Mr. Rubenstein, under which certain
rights would have expired by their terms effective January 1, 2027. A description of the terms of the Stockholder Agreement
can be found in the Company’s Definitive Proxy Statement for its 2025 Annual Meeting of Shareholders filed with the SEC on
April 17, 2025, under “ Certain Relationships and Related Transactions—Stockholder Agreements ,” which description is hereby
incorporated by reference.

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.

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PART III.
 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Information about our directors, including our Audit Committee, executive officers, and corporate governance will be
in our definitive Proxy Statement for our 2026 Annual Meeting of Shareholders, which is expected to be filed no later than 120
days after the end of our fiscal year ended December 31, 2025 (the “ 2026 Proxy Statement”) under the captions “Corporate
Governance,” “Item 1. Election of Directors,” “Executive Officers,” and “ Insider Trading Policies and Procedures ” and is
incorporated in this Annual Report on Form 10-K by reference.
Information relating to our compliance with Section 16(a) of the Exchange Act, if any, will be in the 2026 Proxy
Statement under the caption “Delinquent Section 16(a) Reports” and is incorporated in this Annual Report on Form 10-K by
reference.
Code of Conduct and Code of Ethics for Financial Professionals
We have a Code of Conduct and a Code of Ethics for Financial Professionals, which apply to our principal executive
officer, principal financial officer, and principal accounting officer. Each of these codes is available on our website at
http://ir.carlyle.com. We intend to disclose any amendment to or waiver of the Code of Conduct and any waiver of our Code of
Ethics for Financial Professionals on behalf of an executive officer or director either on our website or in a Form 8-K filing.

ITEM 11. EXECUTIVE COMPENSATION
Information relating to our executive officer and director compensation and the Compensation Committee will be in
the 2026 Proxy Statement under the captions “Compensation Matters” and “Compensation Committee Interlocks and Insider
Participation” and is incorporated in this Annual Report on Form 10-K by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS
Information relating to securities authorized for issuance under equity compensation plans, security ownership of
certain beneficial owners of our common stock, and information relating to the security ownership of our management will be
in the 2026 Proxy Statement under the captions “Beneficial Ownership” and “ Securities Authorized for Issuance under Equity
Compensation Plans ” and is incorporated in this Annual Report on Form 10-K by reference.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
Information regarding certain relationships and related transactions and director independence will be in the 2026
Proxy Statement under the captions “Certain Relationships and Related Transactions” and “Director Independence” and is
incorporated in this Annual Report on Form 10-K by reference.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Information regarding principal accounting fees and services will be in the 2026 Proxy Statement under the caption
“Item 2. Ratification of Ernst & Young LLP as our Independent Registered Public Accounting Firm for 2026 ” and is
incorporated in this Annual Report on Form 10-K by reference.

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PART IV.
 

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a)  Documents filed as part of this report
1. Financial Statements

Report of Independent Registered Public Accounting Firm (PCAOB ID: 42 )

148

Consolidated Balance Sheets as of December 31, 2025 and 2024

151

Consolidated Statements of Operations for the Years Ended December 31, 2025 , 2024 and 2023

152

Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2025 , 2024 and 2023

153

Consolidated Statements of Changes in Equity for the Years Ended December 31, 2025 , 2024 and 2023

154

Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 , 2024 and 2023

155

Notes to Consolidated Financial Statements

157

2. Financial Statement Schedules
All financial schedules have been omitted because the required information is either presented in the consolidated
financial statements filed as part of this Annual Report on Form 10-K or the notes thereto or is not applicable or required.
3. Exhibits
A list of exhibits required to be filed or furnished as part of this report is set forth in the Exhibit Index below.

Exhibit Index

Exhibit
Number

 
 

Description

3.1

 
 

Amended and Restated Certificate of Incorporation of The Carlyle Group Inc. (incorporated by reference to
Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on June 2, 2023).

3.2

Bylaws of The Carlyle Group Inc. (incorporated by reference to Exhibit 3.3 to the Registrant’s Current Report on
Form 8-K filed with the SEC on January 2, 2020).

4.1

 
 

Indenture dated as of March 28, 2013 among Carlyle Holdings II Finance L.L.C., The Carlyle Group L.P.,
Carlyle Holdings I L.P., Carlyle Holdings III L.P. and The Bank of New York Mellon Trust Company, N.A., as
trustee (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the
SEC on March 28, 2013).

4.2

 
 

First Supplemental Indenture dated as of March 28, 2013 among Carlyle Holdings II Finance L.L.C., The Carlyle
Group L.P., Carlyle Holdings I L.P., Carlyle Holdings II L.P., Carlyle Holdings III L.P. and The Bank of New
York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.2 to the Registrant’s
Current Report on Form 8-K filed with the SEC on March 28, 2013).

4.3

 
 

Form of 5.625% Senior Note due 2043 (included in Exhibit 4.2 to the Registrant’s Current Report on Form 8-K
filed with the SEC on March 28, 2013).

4.4