10-Q – 2025-08-08 – cg-20250630.htm

Europe Buyout (CEP)

10.5

Europe CLOs

9.5

Carlyle Global Partners (CGP)

6.6

CLO Investment Products

2.5

Europe Technology (CETP)

6.1

Revolving Credit

2.0

Japan Buyout (CJP)

5.9

Private Credit

$ 71.1

U.S. Growth (CP Growth / CEOF)

3.1

Opportunistic Credit (CCOF / CSP)

19.9

Life Sciences (ABV / ACCD)

2.2

Aviation Finance (SASOF / CALF)

12.9

Asia Growth (CAP Growth / CAGP)

1.2

Direct Lending 5

12.5

Other 1

5.5

Asset-Backed Finance

9.6

Real Estate

$ 36.4

Cross-Platform Credit (incl CTAC)

9.0

U.S. Real Estate (CRP)

25.7

Infrastructure Credit (CICF)

6.6

Core Plus Real Estate (CPI)

8.2

Other 6

0.5

International Real Estate (CER)

2.5

Infrastructure & Natural Resources

$ 22.3

Carlyle AlpInvest

$ 96.5

NGP Energy 2

10.7

Secondaries and Portfolio Finance (ASF / ASPF)

$ 41.9

Infrastructure and Renewable Energy 3

6.1

Co-Investments (ACF)

$ 25.8

International Energy (CIEP)

5.5

Primary Investments & Other 7

$ 28.8

Note: All amounts shown represent total assets under management as of June 30, 2025 , and totals may not sum due to rounding. In addition,
certain carry funds included herein may not be included in fund performance if they have not made an initial capital call or commenced
investment activity.
(1) Includes our Financial Services (CGFSP), Sub-Saharan Africa Buyout (CSSAF), South America Buyout (CSABF), Peru Buyout (CPF),
MENA Buyout and Ireland Buyout (CCIF) funds , as well as platform accounts which invest across Corporate Private Equity strategies.
(2) NGP Energy funds are advised by NGP Energy Capital Management, LLC, a separately registered investment adviser. We do not serve as
an investment adviser to those funds.
(3) Includes our Infrastructure (CGIOF), Renewable Energy (CRSEF) and Power funds (CPP / CPOCP).
(4) Includes Carlyle FRL, capital raised from strategic third-party investors which directly invest in Fortitude alongside Carlyle FRL, as well
as the fair value of the general account assets covered by the strategic advisory services agreement with Fortitude.
(5) Includes our business development companies (CGBD / CARS) and our evergreen fund (CDLF).
(6) Includes our Energy Credit (CEMOF) and Real Estate Credit (CNLI) funds.
(7) Includes Mezzanine and Carlyle AlpInvest Private Markets (CAPM) funds.

Trends Affecting our Business
The second quarter of 2025 ended very differently from the way it started. Just two days into the period, markets were
roiled by higher than expected “Liberation Day” tariffs, driving the S&P 500 down more than 12% peak-to-trough over the
following six days. Yet, financial markets ultimately performed well, as tariff rates were temporarily reduced and the hard
economic data, while lackluster, held up. In the United States, the S&P 500 and NASDAQ ended the quarter up 10.6% and
17.6%, respectively, outperforming many other global benchmarks (1%, 2.9%, and 7.9% for the Euro Stoxx 50, Shanghai
Composite, and DAX, respectively; the Nikkei 225 outperformed the S&P 500 with a 13.7% return). While employment
growth was sluggish in the U.S. during the second quarter, the unemployment rate was roughly unchanged at quarter-end
thanks in large part to a simultaneously shrinking labor force. Front-loaded inventories and longer-term supply contracts made
it possible for many businesses to maintain pricing and production schedules without sacrificing margins. Looking ahead,
however, prices, output, and labor demand will likely adjust more than has been observed thus far as inventory stocks dwindle
and fixed contracts approach expiration. Indeed, early clues of what might be yet to come were visible in the June inflation
report, where prices for goods with high import exposure surged (e.g., toy and appliance prices rose 15% and 34%,
respectively, at an annualized rate over the quarter). While trade negotiations have produced tentative agreements with a
handful of countries, the end-state tariff rate for many U.S. trading partners remains unclear. Several nations currently face
potential levies of as much as 25-50% on their exports to the U.S. and important inputs to domestic U.S. producers (copper
products, steel and aluminum) may shoulder 50% tariffs. While few expect a full implementation of the initial (and highest)

74

Table of Contents

“reciprocal” rates, current U.S. economy-wide effective tariff rates in place are already at 13%, a more than 10 percentage point
increase over 2024’s level, representing an implicit tax increase of over 1% of GDP. This fundamental change in trade policy
still imposes risks to corporate profit margins and broader global growth in subsequent quarters. Companies that rely on key
components and supplies from regions with high tariff rates may see their operating performance materially impacted, while
stretched consumers and a general softening in global growth may erode the financial performance of even those companies
with minimal trade dependence.
Perhaps the biggest counterweight to trade-policy headwinds is ongoing or planned fixed investment. In the U.S., the
relentless surge in artificial intelligence (AI)-related capital expenditures accounted for over half of U.S. GDP growth in the
first half of the year, with order backlogs growing at annual rates of 35–60%—a powerful support for both corporate investment
and overall output amid tariff uncertainty. This AI-related spend should also bolster business investment in Japan, even while
its auto sector faces headwinds from U.S. tariffs. In Europe, a pivot towards “military Keynesianism” could unlock upwards of
€1.5 trillion of new capex into defense, infrastructure, and energy over the next decade and, in turn, drive both productivity and
real output growth higher. In the second quarter, China’s economy performed remarkably well, expanding at a 4.5% annual rate
thanks to strong industrial production and export growth despite the U.S.’s punitive tariffs on Chinese goods; China has quickly
succeeded in finding new export destinations, primarily Southeast Asian countries such as Vietnam. However, exports to these
markets are not typically for domestic consumption (goods intended for domestic consumption only account for about 10% of
Vietnam’s imports from China). The prospect of broader tariffs on Asian imports with Chinese value-added has therefore
prompted many management teams to plan to relocate supply chains to Europe, with associated potential economic upside for
that region. India’s relatively large consumer market, strong manufacturing base in select sectors (e.g., smartphones, automotive
components), and growing policy emphasis on attracting foreign direct investment have also positioned it as a promising
alternative to China for global manufacturers, although recent tensions with the U.S. administration over India’s Russian oil
purchases has introduced uncertainty into the near-term outlook.
Despite the subsequent market rebound, the tariff-driven selloff earlier in the quarter underscored the new reality that
bonds no longer serve as a reliable hedge to risk assets. In April, rather than cushioning portfolios as stocks plunged, Treasury
yields spiked in tandem. Large and persistent fiscal deficits, an overvalued dollar, and the risk of sanctions pressures have
combined to make U.S. dollar-denominated assets less attractive, putting upward pressure on the term premia of longer-
duration Treasuries. Against this backdrop, private market allocations stand out. For decades, private assets have delivered a
100–500 bps annualized net-of-fees return premium over their public equivalents. In an era when liquid markets can amplify
shocks rather than cushion them, that premium together with the built-in liquidity “buffer” of closed-end structures offer 
complementary hedge and asset allocation characteristics in a diversified portfolio of equities and bonds. Closed-end structures
and termed-out liabilities prevent private funds from being forced into fire-sale liquidations or abrupt markdowns, unlike listed
markets, where the most liquid stocks fell roughly 15% in April compared with an approximately 11% drop for the least liquid
quartile—a gap of over 400 bps.
On the surface, global M&A activity in Q2 2025 would appear to be robust, totaling nearly $1.1 trillion in the quarter,
essentially unchanged from Q1 2025 but about 30% above year-ago levels. However, deal count tells a different story: there
were just 8,700 transactions worldwide, lower than the 9,500 transactions observed in Q2 2020 at the onset of the pandemic and
the lowest on record since 2005. Aggregate volumes were flattered by a concentration of large cash- and stock-driven deals.
Activity was subdued across all regions, most notably in Europe and the U.S., where deal counts fell 24% and 22%,
respectively, relative to year-ago levels. Asia fared somewhat better, though from already reduced bases. The same pattern is
apparent in sponsor-led acquisitions. Globally, GPs announced LBOs totaling $151 billion in Q2 2025, the largest quarterly
dollar figure since Q2 2022—but this uptick was entirely driven by a handful of mega-transactions. The top ten LBOs
accounted for 60 percent of the quarter’s total value, while the total number of sponsor-led deals dipped to just 390, the fewest
since Q3 2023. The slower deal environment was also reflected in sluggish exit activity in the broader market. Although total
exit proceeds reached $102 billion—up nearly 20 percent from Q1 2025—this surge was almost entirely due to one large
transaction that accounted for roughly 25% of global exit value for the quarter. The total number of divestitures was just 422
companies, marking the weakest quarterly count since Q4 2022. Through the first half of 2025, buyout-backed company exits
were roughly 18% lower than in the first half of 2024. There is reason for optimism in the coming quarters, however. Recent
surveys indicate that over half of U.S. companies are still actively looking to pursue M&A, and there have been several notable
deal announcements from the last week of July into the first week of August 2025. In the interim, heightened demand for
liquidity at the same time that exit activity has slowed could present our secondaries business the opportunity to buy assets at
discounts larger than would have been otherwise anticipated. Continuation vehicles and portfolio financings have also emerged
as important channels to generate liquidity for both GPs and LPs. Continuation vehicles are now responsible for more than 13%
of exits across buyout funds. We expect these shares to maintain or even increase, as GPs seek to take the necessary steps to
reset the private equity cycle.

75

Table of Contents

While tepid deal activity weighed on leveraged loan issuance during the quarter (new issue loan activity in the U.S.
excluding extensions and repricings was roughly $80 billion in Q2 2025, 45% lower than Q2 2024), the highly uncertain
macroeconomic and geopolitical environment can provide favorable opportunities for our credit business. For example, when
tariff-induced volatility led to a freeze in the broadly syndicated loan (BSL) market in April (no U.S. transactions priced for 15
consecutive days, the longest stretch of inactivity since the 2020 pandemic), market participants indicated that deals in process
at the time of the freeze oftentimes ultimately ended up moving forward with private credit.
While broader market deal activity was sluggish during the quarter, o ur investment activity in the second quarter
continued the momentum we experienced toward the end of 2024 and into the first quarter this year. We deployed $14.6 billion
across our platform and realized proceeds of $7.6 billion in our traditional carry funds during the second quarter, over 50 %
more capital deployed and 30% more proceeds realized than in the second quarter of 2024 . Realized proceeds in our carry funds
totaled $33.0 billion over the last twelve months, approaching a level near that of 2022, which was our second highest year of
realized proceeds to date. In addition, we generated $122.5 million in transaction and portfolio advisory fees, net of rebate
offsets, during the six months ended June 30, 2025. This was more than double the fees generated in the comparable prior year
period. However, the impact of pervasive uncertainty in global markets, combined with heightened equity and credit market
volatility, may impact our investment deployment and realization pace in the near term.
Our carry fund portfolio appreciated 2% in the second quarter of 2025, continuing to show relative stability against a
backdrop of volatility in the global equity markets. Within our Global Private Equity segment in the second quarter, our
corporate private equity funds appreciated 1% , our infrastructure & natural resources funds appreciated 4% , and our real estate
funds appreciated 1% . Our publicly traded investments, which represent approximately 8% of our Global Private Equity
portfolio, appreciated 16% during the second quarter. Our Global Credit carry funds (which represent approximately 11% of the
total Global Credit remaining fair value as of June 30, 2025 ) appreciated 3% in the second quarter, while carry funds in our
Carlyle AlpInvest segment appreciated 2% in the second quarter.
We had $13.4 billion in inflows in the second quarter of 2025 and $50.6 billion in inflows over the last twelve months as
of June 30, 2025, continuing the momentum on the first quarter amidst a period of significant market uncertainty.

Recent Developments
Dividends
In July 2025, our Board of Directors declared a quarterly dividend of $0.35 per share to common stockholders of record
at the close of business on August 18, 2025 , payable on August 28, 2025 .

76

Table of Contents

Key Financial Measures
Our key financial measures and operating metrics are discussed in the following pages. Additional information regarding
U.S. GAAP measures and our other significant accounting policies can be found in Note 2 , Summary of Significant Accounting
Policies , to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
Revenues
Revenues primarily consist of Fund management fees, Incentive fees, Investment income (including Performance
allocations, realized and unrealized gains of our investments in our funds and other principal investments), as well as Interest
and other income.
Fund management fees . Fund management fees include management fees and transaction and portfolio advisory fees. We
earn management fees for advisory services we provide to funds in which we hold a general partner interest or to funds or
certain portfolio companies with which we have an investment advisory or investment management agreement. These fees are
largely from either traditional closed-end, long-dated funds, which are highly predictable and stable, or Perpetual Capital
products as defined below. Management fees also include catch-up management fees, which are episodic in nature and
represent management fees charged to fund investors in subsequent closings of a fund which apply to the time period between
the fee initiation date and the subsequent closing date. We also earn management fees on our CLOs and other structured
products. 
Transaction and portfolio advisory fees generally include capital markets fees generated by Carlyle Global Capital
Markets in connection with activities related to the underwriting, issuance and placement of debt and equity securities, and loan
syndication for our portfolio companies and third-party clients, which are generally not subject to rebate offsets as described
below with respect to our most recent vintages (but are subject to the rebate offsets set forth below for older funds).
Underwriting fees include gains, losses, and fees arising from securities offerings in which we participate in the underwriter
syndicate.
Transaction and portfolio advisory fees also include fees we receive for the transaction and portfolio advisory services we
provide to our portfolio companies. When covered by separate contractual agreements, we recognize transaction and portfolio
advisory fees for these services when the performance obligation has been satisfied and collection is reasonably assured. We are
generally required to offset our fund management fees by the transaction and advisory fees earned, which we refer to as “rebate
offsets.”
The recognition of portfolio advisory fees, transactions fees, and capital markets fees can be volatile as they are primarily
generated by investment activity within our funds, and therefore are impacted by our investment pace or other capital
transactions at our portfolio companies.
Incentive fees . Incentive fees consist of performance-based incentive arrangements pursuant to management contracts,
primarily from certain of our Global Credit funds, when the return on assets under management exceeds certain benchmark
returns or other performance targets. In such arrangements, incentive fees are recognized when the performance benchmark has
been achieved.
Investment income . Investment income consists of our performance allocations as well as the realized and unrealized
gains and losses resulting from our equity method investments and other principal investments. 
Performance allocations consist principally of the performance-based capital allocation from fund limited partners to us,
commonly referred to as carried interest, from certain of our investment funds, which we refer to as the “carry funds.” Carried
interest revenue is recognized by Carlyle upon appreciation of the valuation of our funds’ investments above certain return
hurdles as set forth in each respective partnership agreement and is based on the amount that would be due to us pursuant to the
fund partnership agreement at each period end as if the funds were liquidated at such date. Accordingly, the amount of carried
interest recognized as performance allocations reflects our share of the fair value gains and losses of the associated funds’
underlying investments measured at their then-current fair values relative to the fair values as of the end of the prior period. As
a result, the performance allocations earned in an applicable reporting period are not indicative of any future period, as fair
values are based on conditions prevalent as of the reporting date. Refer to “—Trends Affecting our Business” for further
discussion.
For any given period, performance allocations revenue on our statement of operations may include reversals of previously
recognized performance allocations due to a decrease in the value of a particular fund that results in a decrease of cumulative

77

Table of Contents

performance allocations earned to date. Since fund return hurdles are cumulative, previously recognized performance
allocations also may be reversed in a period of appreciation that is lower than the particular fund’s hurdle rate. Additionally,
unrealized performance allocations reverse when performance allocations are realized, and unrealized performance allocations
can be negative if the amount of realized performance allocations exceed total performance allocations generated in the period.
The timing and receipt of realized performance allocations varies with the lifecycle of our carry funds and there is often a
difference between the time we start accruing performance allocations and realization. The timing of performance allocation
realizations from our Carlyle AlpInvest, Carlyle Aviation, and Abingworth funds is typically later than in our other carry funds
based on the terms of such arrangements.
Under our arrangements with the historical owners and management teams of AlpInvest and Abingworth, the amount of
carried interest to which we are entitled varies. In some cases, we are entitled to 15% of the carried interest in respect of
commitments from the historical owners of AlpInvest for the period between 2011 and 2020. In certain instances, carried
interest associated with the AlpInvest fund vehicles is subject to entity level income taxes in the Netherlands. Additionally, in
connection with the acquisition of Abingworth, we are entitled to 15% of carried interest generated from certain Abingworth
funds.
Realized carried interest may be clawed back or given back to the fund if the fund’s investment values decline below
certain return hurdles, which vary from fund to fund. This amount is known as the “giveback obligation.” In all cases, each
investment fund is considered separately in evaluating carried interest and potential giveback obligations. See Note 8 ,
Commitments and Contingencies , for more information.
Accrued performance allocations and accrued giveback obligations at a point in time assume a hypothetical liquidation of
the funds’ investments at their then current fair values. Each investment fund is considered separately in evaluating carried
interest and potential giveback obligations. These assets and liabilities will continue to fluctuate in accordance with the fair
values of the funds’ investments until they are realized. The Company uses “net accrued performance revenues” to refer to the
aggregation of the accrued performance allocations net of (i) accrued giveback obligations, (ii) accrued performance allocations
related compensation, (iii) performance allocations related tax obligations, and (iv) accrued performance allocations attributable
to non-controlling interests. Net accrued performance revenues exclude any net accrued performance allocations and incentive
fees that have been realized but will be collected in subsequent periods, as well as net accrued performance revenues which are
presented as fee related performance revenues when realized in our non-GAAP financial measures. Realized performance
allocation-related compensation that has not yet been paid is also excluded from our net accrued performance allocations.
In addition, realized performance allocations may be reversed in future periods to the extent that such amounts become
subject to a giveback obligation. The aggregate amount of giveback obligations realized since Carlyle’s inception totaled
$257.0 million , $175.6 million of which was related to various Legacy Energy Funds. Given that current and former senior
Carlyle professionals and other limited partners of the Carlyle Holdings partnerships are responsible for paying the majority of
the realized giveback obligation, only $87.1 million of the $257.0 million aggregate giveback obligation realized since
inception was attributable to Carlyle. The realization of giveback obligations for the Company’s portion of such obligations
reduces Distributable Earnings in the period realized. Further, each individual who holds equity interests in carried interest
generated by our funds and is a recipient of realized carried interest typically signs a guarantee agreement or partnership
agreement that personally obligates such person to return his/her pro rata share of any amounts of realized carried interest
previously distributed that are later clawed back. Accordingly, carried interest as performance allocation compensation is
subject to return to the Company in the event a giveback obligation is funded. Generally, the actual giveback liability, if any,
does not become due until the end of a fund’s life.
In addition, in our discussion of our non-GAAP results, we use the term “realized net performance revenues” to refer to
realized performance allocations and incentive fees from our funds, net of the portion allocated to our investment professionals,
and other employees and certain tax expenses associated with carried interest attributable to certain partners and employees,
which are reflected as realized performance allocations and incentive fees related compensation expense. See “—Non-GAAP
Financial Measures” and “—Segment Analysis” for the amount of realized net performance revenues recognized each period
and related discussion.
Investment income also represents the realized and unrealized gains and losses on our principal investments, including
our investments in Carlyle funds that are not consolidated, and our strategic investments in NGP as described below. Realized
principal investment income (loss) is recorded when we redeem all or a portion of our investment or when we receive or are due
cash income, such as dividends or distributions. A realized principal investment loss is also recorded when an investment is
deemed to be permanently impaired or worthless. Unrealized principal investment income (loss) results from changes in the fair
value of the underlying investment, as well as the reversal of previously recognized unrealized gains (losses) at the time an
investment is realized.

78

Table of Contents

We account for our investments in NGP under the equity method of accounting. Our investments in NGP include the
equity interests in NGP Management and the general partners of certain carry funds advised by NGP. Following the
restructuring of the terms of our strategic investment in NGP (the “Restructuring”), our equity interests in NGP Management
entitle us to an allocation of income equal to 55.0% of the management fee related revenues earned by NGP Management for
existing funds, and up to 55.0% for all NGP funds that held an initial closing after December 31, 2024, including all
management fees being retained by NGP for the years 2025 through 2028 on such future NGP funds. Our investment in the
general partners of the NGP Carry Funds entitle us to up to 47.5% of the performance allocations received from NGP fund
general partners. For further information regarding our strategic investments in NGP and the Restructuring, refer to Note 4 ,
Investments , to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
We record investment income (loss) for our equity income allocation from NGP management fee related revenues and
our share of any allocated expenses from NGP Management, as well as expenses associated with the compensatory elements of
the strategic investment and any impairment charges. We also record our equity income allocation from NGP performance
allocations in principal investment income (loss) from equity method investments rather than performance allocations in our
condensed consolidated statements of operations. We do not control or manage NGP. Moreover, we do not operate NGP’s
business, have representation on NGP’s board or serve as an investment advisor to any investment fund sponsored by NGP, nor
do we direct the operations of any of NGP’s portfolio companies. While we have consent rights over certain major actions by
NGP outside of the ordinary course of NGP’s business (including, for example, consent rights over items such as amendments
to the organizational documents of the entity in which we are invested, changes to the management fee streams earned by NGP
under its fund agreements, or the incurrence of certain debt by NGP and other similar items), we have no voting rights or
consent rights on any NGP investment committee that selects investments to be made by NGP funds.
Interest and other income . Interest and other income primarily represents reimbursement of certain costs incurred on
behalf of our funds, as well as interest income that we earn such as from our cash and money market accounts and other
investments, including CLO senior and subordinated notes.
Interest and other income of Consolidated Funds . Interest and other income of Consolidated Funds primarily represents
the interest earned on assets of consolidated CLOs.
Net investment income (loss) of Consolidated Funds . Net investment income (loss) of Consolidated Funds generally
measures the change in the difference in fair value between the assets and the liabilities of the Consolidated Funds. Income
(loss) indicates that the fair value of the assets of the Consolidated Funds appreciated more (less), or depreciated less (more),
than the fair value of the liabilities of the Consolidated Funds. Income or loss is not necessarily indicative of the investment
performance of the Consolidated Funds and does not impact the management or incentive fees received by Carlyle for its
management of the Consolidated Funds. The portion of the net investment income (losses) of Consolidated Funds attributable
to the limited partner investors is allocated to non-controlling interests. Therefore, income or loss is not expected to have a
material impact on the revenues or profitability of the Company. Moreover, although the assets of the Consolidated Funds are
consolidated onto our balance sheet pursuant to U.S. GAAP, ultimately we do not have recourse to such assets and such
liabilities are generally non-recourse to us. Therefore, income or loss from the Consolidated Funds generally does not impact
the assets available to our common stockholders.
Expenses
Compensation and benefits . Compensation includes salaries, bonuses, equity-based compensation, and performance
payment arrangements. Bonuses are accrued over the service period to which they relate.
We recognize as compensation expense the portion of performance allocations and incentive fees that are due to our
employees, senior Carlyle professionals, advisors, and operating executives in a manner consistent with how we recognize the
performance allocations and incentive fee revenue. These amounts are accounted for as compensation expense in conjunction
with the related performance allocations and incentive fee revenue and, until paid, are recognized as a component of the accrued
compensation and benefits liability. Compensation in respect of performance allocations and incentive fees is paid when the
related performance allocations and incentive fees are realized, and not when such performance allocations and incentive fees
are accrued. The funds do not have a uniform allocation of performance allocations and incentive fees to our employees, senior
Carlyle professionals, advisors, and operating executives. However, we generally allocate a range of 60% to 70% of
performance allocations and incentive fees to our employees.
In addition, we have implemented various equity-based compensation arrangements that require senior Carlyle
professionals and other employees to provide services over a service period of generally one year to four years in order to vest
in the applicable equity interests, which under U.S. GAAP will result in compensation charges over current and future periods.

79

Table of Contents

In certain of our equity-based compensation arrangements, vesting is based on the achievement of certain performance targets
or market conditions (see Note 14 , Equity-Based Compensation , for additional information). Compensation charges associated
with all equity-based compensation grants are excluded from Fee Related Earnings and Distributable Earnings.
We may hire additional individuals and overall compensation levels may correspondingly increase, which could result in
an increase in compensation and benefits expense.  As a result of prior acquisitions, we have charges associated with contingent
consideration taking the form of earn-outs and profit participation, some of which are reflected as compensation expense.
General, administrative and other expenses . General, administrative and other expenses include occupancy and
equipment expenses and other expenses, which consist principally of professional fees, including those related to our global
regulatory compliance program, external costs of fundraising, travel and related expenses, communications and information
services, depreciation and amortization (including intangible asset amortization and impairment), bad debt expense, and foreign
currency transactions. We expect that general, administrative and other expenses will vary due to infrequently occurring or
unusual items, such as impairment of intangible assets or lease right-of-use assets and expenses or insurance recoveries
associated with litigation and contingencies. Also, in periods of significant fundraising, to the extent that we use third parties to
assist in our fundraising efforts, our general, administrative and other expenses may increase accordingly. Similarly, our
general, administrative and other expenses may increase as a result of professional and other fees incurred as part of due
diligence related to strategic acquisitions and new product development. Additionally, we anticipate that general, administrative
and other expenses will fluctuate from period to period due to the impact of foreign exchange transactions.
Interest and other expenses of Consolidated Funds . Interest and other expenses of Consolidated Funds consist primarily
of interest expense related primarily to loans of consolidated CLOs, professional fees and other third-party expenses.
Income taxes . Income taxes are accounted for using the asset and liability method of accounting. Under this method,
deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying
amounts of assets and liabilities and their respective tax basis, using currently enacted tax rates. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in income in the period in which the change is enacted. Deferred tax
assets are reduced by a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be
realized. 
Non-controlling Interests in Consolidated Entities . Non-controlling interests in consolidated entities represent the
component of equity in consolidated entities not held by us. These interests are adjusted for general partner allocations.
Earnings Per Common Share . We compute earnings per common share in accordance with ASC 260, Earnings Per
Share . Basic earnings per common share is calculated by dividing net income (loss) attributable to the common shares of the
Company by the weighted average number of common shares outstanding for the period. Diluted earnings per common share
reflects the assumed conversion of all dilutive securities. See Note 12 , Earnings Per Common Share , to the condensed
consolidated financial statements in this Quarterly Report on Form 10-Q for more information.
Non-GAAP Financial Measures
Distributable Earnings . Distributable Earnings, or “DE,” is a key performance benchmark used in our industry and is
evaluated regularly in making resource deployment and compensation decisions, and in assessing the performance of our three
segments. We also use DE in our budgeting, forecasting, and the overall management of our segments. We believe that
reporting DE is helpful to understanding our business and that investors should review the same supplemental financial measure
that management uses to analyze our segment performance. DE is intended to show the amount of net realized earnings without
the effects of consolidation of the Consolidated Funds. DE is derived from our segment reported results and is an additional
measure 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
interest 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 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

80

Table of Contents

value of contingent consideration 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. We believe the inclusion or exclusion of these items provides investors with a
meaningful indication of our core operating performance. This measure supplements and should be considered in addition to
and not in lieu of the results of operations discussed further under “—Consolidated Results of Operations” prepared in
accordance with U.S. GAAP.
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 from investments in Carlyle funds, 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.
Operating Metrics
We monitor certain operating metrics that are common to the asset management industry.
Fee-earning Assets under Management. Fee-earning assets under management or Fee-earning AUM refers to the assets
we manage or advise from which we derive recurring fund management fees. Our Fee-earning AUM is generally based on one
of the following, once fees have been activated:
(a) the amount of limited partner capital commitments, generally for carry funds where the original investment period
has not expired and for AlpInvest carry funds during the commitment fee period (see “Fee-earning AUM based on
capital commitments” in the table below for the amount of this component at each period);
(b) the remaining amount of limited partner invested capital at cost, generally for carry funds and certain co-
investment vehicles where the original investment period has expired (see “Fee-earning AUM based on invested
capital” in the table below for the amount of this component at each period);
(c) the amount of aggregate fee-earning collateral balance at par of our CLOs and other securitization vehicles, as
defined in the fund indentures (pre-2020 CLO vintages are generally exclusive of equities and defaulted positions)
as of the quarterly cut-off date;
(d) the external investor portion of the net asset value of certain carry funds (see “Fee-earning AUM based on net
asset value” in the table below for the amount of this component at each period);
(e) the fair value of Fortitude’s general account assets invested under the strategic advisory services agreement (see
“Fee-earning AUM based on fair value and other” in the table below);
(f) the gross assets (including assets acquired with leverage) of certain cross-platform credit and direct lending
products, excluding cash and cash equivalents for one of our business development companies (included in “Fee-
earning AUM based on fair value and other” in the table below); and
(g) the lower of cost or fair value of invested capital, generally for AlpInvest carry funds where the commitment fee
period has expired and certain carry funds where the investment period has expired, (included in “Fee-earning
AUM based on fair value and other” in the table below).

81

Table of Contents

The chart below presents Fee-earning AUM by segment at each period, in billions.

The table below details Fee-earning AUM by its respective components at each period.

 

As of June 30,

 

2025

2024

Consolidated Results

(Dollars in millions)

Components of Fee-earning AUM

Fee-earning AUM based on capital commitments

$ 70,434

$ 69,255

Fee-earning AUM based on invested capital

80,609

72,683

Fee-earning AUM based on collateral balances, at par

45,062

48,200

Fee-earning AUM based on net asset value

26,221

20,688

Fee-earning AUM based on fair value and other

102,375

96,519

Balance, End of Period (1)

$ 324,701

$ 307,345

(1) Ending balances as of June 30, 2025 and 2024 exclude $17.6 billion and $18.3 billion , respectively, of pending Fee-earning AUM for
which fees have not yet been activated.
The table below provides the period to period rollforward of Fee-earning AUM.

 

Three Months Ended June 30,

Six Months Ended June 30,

 

2025

2024

2025

2024

Consolidated Results

(Dollars in millions)

Fee-earning AUM Rollforward

Balance, Beginning of Period

$ 313,843

$ 304,225

$ 304,358

$ 307,418

Inflows (1)

18,038

10,236

29,904

15,900

Outflows (including realizations) (2)

(10,805)

(7,142)

(16,411)

(13,453)

Market Activity & Other (3)

209

398

1,639

(949)

Foreign Exchange (4)

3,416

(372)

5,211

(1,571)

Balance, End of Period

$ 324,701

$ 307,345

$ 324,701

$ 307,345

82

Table of Contents

(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based on
commitments were activated during the period, the fee-earning commitments invested in vehicles for which management fees are based
on invested capital, the fee-earning collateral balance of new CLO issuances, closed reinsurance transactions at Fortitude, as well as
gross subscriptions in vehicles for which management fees are based on net asset value. Inflows exclude fundraising amounts during the
period for which fees have not yet been activated, which are referenced as Pending Fee-earning AUM.
(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair
value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has
expired during the period, reductions for funds that are no longer calling for fees, gross redemptions in our open-end funds, and outflows
from our liquid credit products. Distributions for funds earning management fees based on commitments during the period do not affect
Fee-earning AUM.
(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the lower
of cost or fair value and net asset value, activity of funds with fees based on gross asset value, and changes in the fair value of Fortitude’s
general account assets covered by the strategic advisory services agreement.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Refer to “—Segment Analysis” for a detailed discussion by segment of the activity affecting Fee-earning AUM for each
of the periods presented by segment.
Assets under Management . Assets under management or “AUM” refers to the assets we manage or advise. Our AUM
generally equals the sum of the following:
(a)  the aggregate fair value of our carry funds and related co-investment vehicles, and separately managed accounts, plus
the capital that Carlyle is entitled to call from investors in those funds and vehicles (including Carlyle commitments to
those funds and vehicles and those of senior Carlyle professionals and employees) pursuant to the terms of their capital
commitments to those funds and vehicles;
(b) the amount of aggregate collateral balance and principal cash at par or aggregate principal amount of the notes of our
CLOs and other structured products (inclusive of all positions);
(c) the net asset value of certain carry funds;
(d) the fair value of Fortitude’s general account assets invested under the strategic advisory services agreement; and
(e) the gross assets (including assets acquired with leverage) of certain cross-platform credit and direct lending products,
plus the capital that Carlyle is entitled to call from investors in those vehicles pursuant to the terms of their capital
commitments to those vehicles.

83

Table of Contents

The chart below presents Total AUM by segment at each period , in billions.

We include in our calculation of AUM and Fee-earning AUM the NGP Energy Funds that are advised by NGP. Our
calculation of AUM also includes third-party capital raised for the investment in Fortitude through a Carlyle-affiliated
investment fund and from strategic investors who directly invest in Fortitude alongside the fund. The AUM and Fee-earning
AUM related to the strategic advisory services agreement with Fortitude is inclusive of the net asset value of investments in
Carlyle products. These amounts are also reflected in the AUM and Fee-earning AUM of the strategy in which they are
invested.
For most of our Global Private Equity and Carlyle AlpInvest carry funds, total AUM includes the fair value of the capital
invested, whereas Fee-earning AUM includes the amount of capital commitments or the remaining amount of invested capital,
depending on whether the original investment period for the fund has expired. As such, Fee-earning AUM may be greater than
total AUM when the aggregate fair value of the remaining investments is less than the cost of those investments.
Our calculations of AUM and Fee-earning AUM may differ from the calculations of other asset managers. As a result,
these measures may not be comparable to similar measures presented by other asset managers. In addition, our calculation of
AUM (but not Fee-earning AUM) includes uncalled commitments to, and the fair value of invested capital in, our investment
funds from Carlyle and our personnel, regardless of whether such commitments or invested capital are subject to management
fees or performance allocations. Our calculations of AUM or Fee-earning AUM are not based on any definition of AUM or
Fee-earning AUM that is set forth in the agreements governing the investment funds that we manage or advise.
We generally use Fee-earning AUM as a metric to measure changes in the assets from which we earn recurring
management fees. Total AUM tends to be a better measure of our investment and fundraising performance as it reflects
investments at fair value plus available capital.

84

Table of Contents

The table below provides the period to period rollforward of Total AUM.

 

Three Months Ended
June 30, 2025

Six Months Ended
June 30, 2025

Consolidated Results

(Dollars in millions)

Total AUM Rollforward

Balance, Beginning of Period

$ 452,608

$ 441,020

Inflows (1)

13,443

27,612

Outflows (including realizations) (2)

(10,522)

(20,015)

Market Activity & Other (3)

3,820

7,868

Foreign Exchange (4)

5,253

8,117

Balance, End of Period

$ 464,602

$ 464,602

(1) Inflows generally reflects the impact of gross fundraising as well as closed reinsurance transactions at Fortitude and corporate
acquisitions during the period, if any. For funds or vehicles denominated in foreign currencies, this reflects translation at the average
quarterly rate.
(2) Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and separately
managed accounts, gross redemptions in our open-end funds, outflows from our liquid credit products, and the expiration of available
capital.
(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds and
related co-investment vehicles, and separately managed accounts, as well as the net impact of fees, expenses and non-investment income,
change in gross asset value for our business development companies, changes in the fair value of Fortitude’s general account assets
covered by the strategic advisory services agreement, and other changes in AUM.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Please refer to “—Segment Analysis” for a detailed discussion by segment of the activity affecting Total AUM for each
of the periods presented.
Available Capital . “Available Capital” refers to the amount of capital commitments available to be called for investments,
which may be reduced for equity invested that is funded via a fund credit facility and expected to be called from investors at a
later date, plus any additional assets/liabilities at the fund level other than active investments. Amounts previously called may
be added back to available capital following certain distributions. “Expired Available Capital” occurs when a fund has passed
the investment and follow-on periods and can no longer invest capital into new or existing deals. Any remaining Available
Capital, typically a result of either recycled distributions or specific reserves established for the follow-on period that are not
drawn, can only be called for fees and expenses and is therefore removed from the Total AUM calculation.
Perpetual Capital . “Perpetual Capital” refers to the assets we manage or advise which have an indefinite term and for
which there is no immediate requirement to return capital to investors upon the realization of investments made with such
capital, except as required by applicable law. Perpetual Capital may be materially reduced or terminated under certain
conditions, including reductions from changes in valuations and payments to investors, including through elections by investors
to redeem their investments, dividend payments, and other payment obligations, as well as the termination of or failure to renew
the respective investment advisory agreements. Perpetual Capital includes: (a) assets managed under the strategic advisory
services agreement with Fortitude, (b) our Core Plus real estate fund, (c) our business development companies and certain other
direct lending products, (d) Carlyle Tactical Private Credit Fund (“CTAC”), (e) our closed-end tender offer Carlyle AlpInvest
Private Markets (“CAPM”) funds, and (f) certain other structured credit products. As of June 30, 2025 , our total AUM and Fee-
earning AUM included $104.5 billion and $101.0 billion , respectively, of Perpetual Capital.
Performance Fee Eligible AUM . “Performance Fee Eligible AUM” represents the AUM of funds for which we are
entitled to receive performance allocations, inclusive of the fair value of investments in those funds (which we refer to as
“Performance Fee Eligible Fair Value”) and their Available Capital. Performance Fee Eligible Fair Value is “Performance Fee-
Generating” when the associated fund has achieved the specified investment returns required under the terms of the fund’s
agreement and is accruing performance revenue as of the quarter-end reporting date. Funds whose performance allocations are
treated as fee related performance revenues are excluded from these metrics. As of June 30, 2025 , our total AUM included
$236.7 billion of Performance Fee Eligible AUM.

85

Table of Contents

Consolidation of Certain Carlyle Funds
The Company consolidates all entities that it controls either through a majority voting interest or as the primary
beneficiary of variable interest entities. The entities we consolidate are referred to collectively as the Consolidated Funds in our
condensed consolidated financial statements. As of June 30, 2025 , our Consolidated Funds represent approximately 2% of our
AUM; 1% of our management fees for both the three and six months ended June 30, 2025 ; and 2% of our total investment
income or loss on an unconsolidated basis for both the three and six months ended June 30, 2025 .
We are not required under the consolidation guidance to consolidate in our financial statements most of the investment
funds we advise. However, we consolidate certain CLOs and certain other funds that we advise. As of June 30, 2025 , the assets
and liabilities of the Consolidated Funds were primarily related to our consolidated CLOs, which held approximately $9.2
billion of total assets. The assets and liabilities of the Consolidated Funds are generally held within separate legal entities and,
as a result, the liabilities of the Consolidated Funds are non-recourse to us.
Generally, the consolidation of the Consolidated Funds has a gross-up effect on our assets, liabilities and cash flows but
has no net effect on the net income attributable to the Company and equity. The majority of the net economic ownership
interests of the Consolidated Funds are reflected as non-controlling interests in consolidated entities in the consolidated
financial statements.
The Consolidated Funds are not the same entities in all periods presented. The Consolidated Funds in future periods may
change due to changes in fund terms, formation of new funds, and terminations of funds. Because only a small portion of our
funds are consolidated, the performance of the Consolidated Funds is not necessarily consistent with or representative of the
combined performance trends of all of our funds.
For further information on our consolidation policy and the consolidation of certain funds, see Note 2 , Summary of
Significant Accounting Policies , to the condensed consolidated financial statements included in this Quarterly Report on
Form 10-Q.

86

Table of Contents

Consolidated Results of Operations
The following table and discussion sets forth information regarding our condensed consolidated results of operations for
the three and six months ended June 30, 2025 and 2024 . The condensed consolidated financial statements have been prepared
on substantially the same basis for all historical periods presented; however, the consolidated funds are not the same entities in
all periods shown due to changes in fund terms and the creation and termination of funds. As further described above, the
consolidation of these funds primarily has the impact of increasing interest and other income of Consolidated Funds, interest
and other expenses of Consolidated Funds, and net investment income (losses) of Consolidated Funds in the year that the fund
is initially consolidated. The consolidation of these funds had no effect on net income attributable to the Company for the
periods presented.

 

Three Months Ended
June 30,

Change

Six Months Ended
June 30,

Change

 

2025

2024

$

%

2025

2024

$

%

 

(Dollars in millions)

Revenues

Fund management fees

$ 620.4

$ 534.4

$ 86.0

16 %

$ 1,206.5

$ 1,058.0

$ 148.5

14 %

Incentive fees

40.5

31.3

9.2

29 %

83.7

57.5

26.2

46 %

Investment income

Performance allocations

638.8

198.2

440.6

222 %

861.7

41.2

820.5

NM

Principal investment income (loss)

55.2

88.1

(32.9)

(37) %

(7.9)

161.2

(169.1)

NM

Total investment income

694.0

286.3

407.7

142 %

853.8

202.4

651.4

NM

Interest and other income

55.0

52.1

2.9

6 %

105.6

109.7

(4.1)

(4) %

Interest and other income of
Consolidated Funds

163.0

165.6

(2.6)

(2) %

296.4

330.5

(34.1)

(10) %

Total revenues

1,572.9

1,069.7

503.2

47 %

2,546.0

1,758.1

787.9

45 %

Expenses

Compensation and benefits

Cash-based compensation and
benefits

238.4

206.3

32.1

16 %

456.8

428.2

28.6

7 %

Equity-based compensation

92.9

125.2

(32.3)

(26) %

196.4

233.5

(37.1)

(16) %

Performance allocations and
incentive fee related
compensation

443.6

144.2

299.4

208 %

615.0

71.4

543.6

NM

Total compensation and
benefits

774.9

475.7

299.2

63 %

1,268.2

733.1

535.1

73 %

General, administrative and other
expenses

205.5

187.9

17.6

9 %

379.1

335.6

43.5

13 %

Interest

28.0

30.4

(2.4)

(8) %

55.8

61.2

(5.4)

(9) %

Interest and other expenses of
Consolidated Funds

170.8

152.1

18.7

12 %

284.3

276.7

7.6

3 %

Other non-operating income

(0.1)

(0.3)

0.2

(67) %

(0.1)

(0.1)

—

— %

Total expenses

1,179.1

845.8

333.3

39 %

1,987.3

1,406.5

580.8

41 %

Other income (loss)

Net investment income (loss) of
Consolidated Funds

46.8

(5.1)

51.9

NM

52.9

(12.1)

65.0

NM

Income before provision for income
taxes

440.6

218.8

221.8

101 %

611.6

339.5

272.1

80 %

Provision for income taxes

112.5

69.5

43.0

62 %

124.9

91.4

33.5

37 %

Net income

328.1

149.3

178.8

120 %

486.7

248.1

238.6

96 %

Net income attributable to non-
controlling interests in consolidated
entities

8.4

1.1

7.3

NM

37.0

34.3

2.7

8 %

Net income attributable to The Carlyle
Group Inc. Common Stockholders

$ 319.7

$ 148.2

$ 171.5

116 %

$ 449.7

$ 213.8

$ 235.9

110 %

NM - Not meaningful

87

Table of Contents

Revenues
Fund management fees . Fund management fees increased $86.0 million , or 16% , for the three months ended June 30,
2025 , as compared to the three months ended June 30, 2024 , and increased $148.5 million , or 14.0% , for the six months ended
June 30, 2025 , as compared to the six months ended June 30, 2024 , primarily due to the following:

Three Months Ended
June 30,

Six Months Ended
June 30,

2025 v. 2024

(Dollars in millions)

Higher management fees from the commencement of the investment period for
certain newly raised funds which charge fees based on commitments and the
impact of incremental fundraising in funds which activated fees in a prior period

$ 68.3

$ 111.3

Lower management fees resulting from the change in basis from commitments to
invested capital and step-downs in rate for certain funds, and the impact of net
investment activity in funds whose management fees are based on invested capital,
including the impact of changes in the base under the strategic advisory services
agreement with Fortitude

(32.9)

(74.0)

Increase in catch-up management fees from subsequent closes of funds that are in
the fundraising period

18.1

30.5

Higher transaction and portfolio advisory fees

19.6

72.5

All other changes (1)

12.9

8.2

Total increase in Fund management fees (2)

$ 86.0

$ 148.5

(1) The three and six months ended June 30, 2025 included approximately $19 million of av iation catch-up subordinated management fees. 
(2) Total increase in Fund management fees does not include our equity income allocation from NGP management fee related revenues. We do not control
NGP and account for our strategic investment in NGP as an equity method investment under U.S. GAAP. Therefore, Fund management fees associated
with NGP are included in Principal investment income (loss) in our U.S. GAAP results.
No fund generated over 10% of total fund management fees in any of the perio ds presented . Over the last twelve months
ended June 30, 2025, Fee-earning assets under management in our Carlyle AlpInvest and Global Credit segments grew 24%
and 5% , respectively, while Global Private Equity decreased 1% . As a result, Fund management fees increased in Carlyle
AlpInvest and Global Credit, while Global Private Equity decreased, which was due in part to smaller buyout fund sizes in our
corporate private equity strategy and step-downs in rate or basis, partially offset by the activation of fees in certain products in
our Global Private Equity segment.
Fund management fees included transaction and portfolio advisory fees, net of rebate offsets, of $45.8 million and
$26.2 million for the three months ended June 30, 2025 and 2024 , respectively, and $122.5 million and $50.0 million for the six
months ended June 30, 2025 and 2024 , respectively. These fees primarily comprise capital markets fees generated by Carlyle
Global Capital Markets. Nearly one-third of the fees earned during the six months ended June 30, 2025 related to the
acquisition of a healthcare investment across our U.S., Europe, and Asia buyout funds in the first q uarter . The recognition of
portfolio advisory fees, transactions fees, and capital markets fees can be volatile as they are primarily generated by investment
activity within our funds, and therefore are impacted by our investment pace. See “—Trends Affecting Our Business” for
further discussion on our investment activity and broader market trends.

88

Table of Contents

Investment income . Investment income increased $407.7 million for the three months ended June 30, 2025 compared to
the three months ended June 30, 2024 , and increased $651.4 million for the six months ended June 30, 2025 compared to the six
months ended June 30, 2024 . The components of Investment income are included in the following table:

Three Months Ended
June 30,

Change

Six Months Ended
June 30,

Change

2025

2024

$

%

2025

2024

$

%

(Dollars in millions)

Performance allocations

$ 638.8

$ 198.2

$ 440.6

222 %

$ 861.7

$ 41.2

$ 820.5

NM

Principal investment income (loss) :

Investment income (loss) from NGP,
which includes performance
allocations

34.8

19.1

15.7

82 %

(72.4)

50.5

(122.9)

NM

Investment income (loss) from our
carry funds:

Global Private Equity

7.9

16.5

(8.6)

(52) %

19.4

13.8

5.6

41 %

Global Credit

(0.9)

0.2

(1.1)

NM

(0.1)

8.7

(8.8)

NM

Carlyle AlpInvest

12.7

(0.3)

13.0

NM

26.5

6.8

19.7

290 %

Investment income (loss) from our
CLOs

(6.7)

15.6

(22.3)

NM

(7.5)

29.0

(36.5)

NM

Investment income from Carlyle FRL

1.5

10.8

(9.3)

(86) %

15.4

9.6

5.8

60 %

Investment income (loss) from our
other Global Credit products

(1.7)

16.4

(18.1)

NM

4.7

28.9

(24.2)

(84) %

Investment income on foreign
currency hedges

2.4

2.1

0.3

14 %

1.6

4.9

(3.3)

(67) %

All other investment income

5.2

7.7

(2.5)

(32) %

4.5

9.0

(4.5)

(50) %

Total Principal investment income
(loss)

55.2

88.1

(32.9)

(37) %

(7.9)

161.2

(169.1)

NM

Total Investment income

$ 694.0

$ 286.3

$ 407.7

142 %

$ 853.8

$ 202.4

$ 651.4

NM

Performance allocations .  Performance allocations by segment for the three and six months ended June 30, 2025 and 2024
comprised the following:

Three Months Ended
June 30,

Change

Six Months Ended
June 30,

Change

2025

2024

$

%

2025

2024

$

%

(Dollars in millions)

Global Private Equity

$ 476.9

$ 185.0

$ 291.9

158 %

$ 561.9

$ (178.5)

$ 740.4

NM

Global Credit

50.8

46.2

4.6

10 %

129.8

111.3

18.5

17 %

Carlyle AlpInvest

111.1

(33.0)

144.1

NM

170.0

108.4

61.6

57 %

Total performance allocations

$ 638.8

$ 198.2

$ 440.6

222 %

$ 861.7

$ 41.2

$ 820.5

NM

Performance allocations for the three and six months ended June 30, 2025 included the following:
• In the Global Private Equity segment, for the three months ended June 30, 2025, Performance allocation accruals
were primarily driven by appreciation in CAP V , CP VII, and CP VIII . For the six months ended June 30, 2025,
Performance allocation accruals were primarily driven by appreciation in CP VII and CP VIII.
• In the Global Credit segment, for the three and six months ended June 30, 2025 , Performance allocation accruals
were primarily driven by appreciation in SASOF V and CCOF II.
• In the Carlyle AlpInvest segment, for the three and six months ended June 30, 2025 , Performance allocation accruals
were primarily driven by appreciation in our secondaries & portfolio finance and co-investment funds.

89

Table of Contents

Performance allocations for the three and six months ended June 30, 2024 included the following:
• In the Global Private Equity segment, for the three months ended June 30, 2024, performance allocation accruals
driven by appreciation in our CP VII, CAP IV, and infrastructure & natural resources funds were partially offset by
the reversal of performance allocations in CP VI due to depreciation in the portfolio. For the six months ended June
30, 2024, reversals of performance allocations were largely driven by CP VI due to portfolio depreciation, CP VII
due to preferred returns outpacing carry fund portfolio appreciation, and CEP V due to the impact of preferred
returns. These reversals were partially offset by performance allocation accruals in our infrastructure & natural
resources funds.
• In the Global Credit segment, performance allocation accruals in both the three and six months ended June 30, 2024
were primarily driven by appreciation in our opportunistic credit and certain aviation funds.
• In the Carlyle AlpInvest segment, for the three months ended June 30, 2024 , reversals of performance allocations in
our secondaries & portfolio finance strategy driven by portfolio depreciation were partially offset by performance
allocation accruals in our co-investment strategy. For the six months ended June 30, 2024 , performance allocation
accruals were primarily driven by our secondaries & portfolio finance and co-investment strategies.
See “—Trends Affecting Our Business” for further discussion on the macroeconomic, geopolitical and industry landscape
and our investment activity.

90

Table of Contents

Principal investment income (loss) . The decrease in Principal investment income (loss) for the three months ended June
30, 2025 compared to the three months ended June 30, 2024 was primarily attributable to unrealized investment losses from our
Europe and U.S. CLOs, and unrealized investment losses from our other Global Credit products, driven by our BDCs. These
were partially offset by an increase in unrealized investment income from NGP, driven by appreciation in certain NGP Carry
funds.
The decrease in Principal investment income (loss) for the six months ended June 30, 2025 compared to the six months
ended June 30, 2024 , was primarily attributable to an impairment charge of $92.5 million and a $38.0 million reduction in NGP
accrued carry, both related to the restructuring of the terms of our strategic investment in NGP (see Note 4 , Investments , for
more information), and to a lesser extent, unrealized investment losses from our Europe and U.S. CLOs, and unrealized
investment losses from our other Global Credit products, driven by our BDCs.
Expenses
Compensation and benefits . Total compensation and benefits increased $299.2 million for the three months ended June
30, 2025 , as compared to the three months ended June 30, 2024 , and increased $535.1 million for the six months ended June 30,
2025 , as compared to the six months ended June 30, 2024 . The increases for the three and six months ended June 30, 2025
relative to the comparable prior year periods are primarily attributable to:
• an increase in Performance allocations and incentive fee related compensation of $299.4 million and $543.6 million ,
respectively, primarily driven by an increase in Performance allocations , on which Performance allocations and
incentive fee related compensation is based;
• an increase in Cash-based compensation and benefits of $32.1 million and $28.6 million , respectively, primarily
driven by an increase in annual bonus accruals and higher headcount;
• partially offset by a decrease in Equity-based compensation of $32.3 million and $37.1 million , respectively,
primarily driven by lower amortization on performance-based stock awards, partially offset by additional equity
awards granted in February 2025.
General, administrative and other expenses . General, administrative and other expenses increased $17.6 million for the
three months ended June 30, 2025 , as compared to the three months ended June 30, 2024 , and increased $43.5 million for the
six months ended June 30, 2025 as compared to the six months ended June 30, 2024 , primarily driven by an increase in foreign
currency movement , reflecting a foreign exchange loss for the three and six months ended June 30, 2025 compared to a foreign
exchange gain for the three and six months ended June 30, 2024 related to the weakening of the U.S. dollar relative to EUR and
GBP . Foreign exchange loss for the three and six months ended June 30, 2025 was primarily attributable to Performance
allocations earned by certain EUR-denominated funds that hold USD investments. The increase for the six months ended June
30, 2025 also included an increase in costs for funds in fundraising and o perating costs related to certain fund s . These increases
were partially offset by the impact of an increase in liabilities for litigation-related contingencies, regulatory examination and
inquiries, and other matters during the three and six months ended June 30, 2024 .
Interest and other expenses of Consolidated Funds . Interest and other expenses of Consolidated Funds increased $18.7
million for the three months ended June 30, 2025 , as compared to the three months ended June 30, 2024 , and increased $7.6
million for the six months ended June 30, 2025 , as compared to the six months ended June 30, 2024 , primarily due to an
increase in the number of consolidated CLOs and higher interest expense. The CLOs incur interest expense on their loans
payable and incur other expenses consisting of trustee fees, rating agency fees, and professional fees. Substantially all interest
and other income of our CLOs together with interest expense of our CLOs and net investment gains (losses) of Consolidated
Funds is attributable to the related funds’ limited partners or CLO investors. Accordingly, such amounts have no material
impact on net income attributable to the Company.

91

Table of Contents

Net investment income (loss) of Consolidated Funds . The table below summarizes the components of Net investment
income (loss) of Consolidated Funds , including our consolidated CLOs and certain other funds:

 

Three Months Ended
June 30,

Change

Six Months Ended
June 30,

Change

 

2025

2024

$

%

2025

2024

$

%

 

(Dollars in millions)

Realized losses

$ (24.5)

$ (23.4)

$ (1.1)

5 %

$ (24.9)

$ (44.6)

$ 19.7

(44) %

Net change in unrealized gains

29.1

23.6

5.5

23 %

36.5

127.5

(91.0)

(71) %

Total gains

4.6

0.2

4.4

NM

11.6

82.9

(71.3)

(86) %

Gains (losses) from liabilities of CLOs

42.2

(5.4)

47.6

NM

41.3

(95.1)

136.4

NM

Total net investment income (loss) of
Consolidated Funds

$ 46.8

$ (5.1)

$ 51.9

NM

$ 52.9

$ (12.1)

$ 65.0

NM

Provision for income taxes . The Company’s provision for income taxes was $112.5 million and $69.5 million for the
three months ended June 30, 2025 and 2024 , respectively, and $124.9 million and $91.4 million for the six months ended June
30, 2025 and 2024 , respectively. The Company’s effective tax rate was approximately 26% and 32% for the three months ended
June 30, 2025 and 2024 , respectively, and 20% and 27% for the six months ended June 30, 2025 and 2024 , respectively. The
effective tax rate for the three months ended June 30, 2025 and 2024 primarily comprised the 21% U.S. federal corporate
income tax rate, the impact of U.S. state and foreign income taxes, and disallowed executive compensation, offset by non-
controlling interest. The effective tax rate for the three months ended June 30, 2024 also includes an increase related to other
non-deductible expenses. The effective tax rate for the six months ended June 30, 2025 and 2024 primarily comprised the 21%
U.S. federal corporate income tax rate, the impact of U.S. state and foreign income taxes, and disallowed executive
compensation, primarily offset by equity-based compensation deductions and non-controlling interest. The effective tax rate for
the six months ended June 30, 2024 also includes an increase related to other non-deductible expenses.
As of June 30, 2025 and December 31, 2024 , the Company had federal, state, local and foreign taxes payable of
$90.2 million and $46.2 million , respectively, which is recorded as a component of accounts payable, accrued expenses and
other liabilities in the accompanying condensed consolidated balance sheets.
Net income attributable to non-controlling interests in consolidated entities . Net income attributable to non-controlling
interests in consolidated entities was $8.4 million for the three months ended June 30, 2025 , as compared to $1.1 million for the
three months ended June 30, 2024 , and $37.0 million for the six months ended June 30, 2025 , as compared to $34.3 million for
the six months ended June 30, 2024 . These amounts are primarily attributable to the net earnings of the Consolidated Funds for
each period, which are substantially all allocated to the related fund’s limited partners or CLO investors, as well as net earnings
from our insurance solutions business and certain other products that are allocated to certain third-party investors. These
amounts also reflect the net income attributable to non-controlling interests in carried interest, giveback obligations, and cash
held for carried interest distributions. The net income (loss) of our Consolidated Funds, after eliminations, was $13.9 million
and $(4.3) million for the three months ended June 30, 2025 and 2024 , respectively, and $21.9 million and $8.4 million for the
six months ended June 30, 2025 and 2024 , respectively. 

Non-GAAP Financial Measures
The following tables set forth information in the format used by management when making resource deployment
decisions and in assessing performance of our segments. These Non-GAAP financial measures are presented for the three and
six months ended June 30, 2025 and 2024 . Our Non-GAAP financial measures exclude the effects of unrealized performance
allocations net of related compensation expense, unrealized principal investment income, consolidated funds, acquisition and
disposition-related items including amortization and any impairment charges of acquired intangible assets and contingent
consideration taking the form of earn-outs, charges associated with the Conversion, impairment charges associated with lease
right-of-use assets, gains or losses from retirement of debt, charges associated with contract terminations and employee
severance, charges associated with equity-based compensation, changes in the tax receivable agreement liability, corporate
actions and infrequently occurring or unusual events.

92

Table of Contents

The following table shows our total segment DE and FRE for the three and six months ended June 30, 2025 and 2024 .

Three Months Ended
June 30,

Six Months Ended
June 30,

2025

2024

2025

2024

(Dollars in millions)

Total Segment Revenues

$ 984.0

$ 788.9

$ 2,027.2

$ 1,811.9

Total Segment Expenses

553.0

445.7

1,140.8

1,037.4

(=) Distributable Earnings

$ 431.0

$ 343.2

$ 886.4

$ 774.5

(-) Realized Net Performance Revenues

87.7

55.7

215.1

197.7

(-) Realized Principal Investment Income

33.5

26.6

63.5

60.3

(+) Net Interest

13.5

12.1

26.1

22.8

(=) Fee Related Earnings

$ 323.3

$ 273.0

$ 633.9

$ 539.3

The following table sets forth our total segment revenues for the three and six months ended June 30, 2025 and 2024 .

Three Months Ended
June 30,

Six Months Ended
June 30,

2025

2024

2025

2024

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 589.6

$ 525.5

$ 1,115.1

$ 1,041.1

Portfolio advisory and transaction fees, net and other

47.9

28.9

125.8

55.6

Fee related performance revenues

38.7

33.1

78.2

62.2

Total fund level fee revenues

676.2

587.5

1,319.1

1,158.9

Realized performance revenues

259.8

156.5

614.9

554.3

Realized principal investment income

33.5

26.6

63.5

60.3

Interest income

14.5

18.3

29.7

38.4

Total Segment Revenues

$ 984.0

$ 788.9

$ 2,027.2

$ 1,811.9

The following table sets forth our total segment expenses for the three and six months ended June 30, 2025 and 2024 .

Three Months Ended
June 30,

Six Months Ended
June 30,

2025

2024

2025

2024

(Dollars in millions)

Segment Expenses

Compensation and benefits

Cash-based compensation and benefits

$ 233.8

$ 205.3

$ 457.8

$ 419.6

Realized performance revenue related compensation

172.1

100.8

399.8

356.6

Total compensation and benefits

405.9

306.1

857.6

776.2

General, administrative, and other indirect expenses

106.3

97.9

201.9

177.6

Depreciation and amortization expense

12.8

11.3

25.5

22.4

Interest expense

28.0

30.4

55.8

61.2

Total Segment Expenses

$ 553.0

$ 445.7

$ 1,140.8

$ 1,037.4

93

Table of Contents

Income (loss) before provision for income taxes is the U.S. GAAP financial measure most comparable to Distributable
Earnings and Fee Related Earnings. The following table is a reconciliation of income (loss) before provision for income taxes to
Distributable Earnings and to Fee Related Earnings.

Three Months Ended
June 30,

Six Months Ended
June 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Income (loss) before provision for income taxes

$ 440.6

$ 218.8

$ 611.6

$ 339.5

Adjustments:

Net unrealized performance and fee related performance revenues

(124.3)

(15.2)

(34.3)

178.0

Unrealized principal investment (income) loss

(25.5)

(48.1)

(42.5)

(52.5)

Equity-based compensation (1)

96.4

127.4

201.1

238.4

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

48.3

33.3

170.5

66.1

Tax (expense) benefit associated with certain foreign performance revenues

(0.1)

(0.2)

(0.1)

(1.2)

Net (income) loss attributable to non-controlling interests in consolidated
entities

(8.4)

(1.1)

(37.0)

(34.3)

Other adjustments (2)

4.0

28.3

17.1

40.5

(=) Distributable Earnings

$ 431.0

$ 343.2

$ 886.4

$ 774.5

(-) Realized net performance revenues, net of related compensation (3)

87.7

55.7

215.1

197.7

(-) Realized principal investment income (3)

33.5

26.6

63.5

60.3

(+) Net interest

13.5

12.1

26.1

22.8

(=) Fee Related Earnings

$ 323.3

$ 273.0

$ 633.9

$ 539.3

(1) Equity-based compensation for the three and six months ended June 30, 2025 and 2024 includes amounts presented in principal
investment income and general, administrative and other expenses in our U.S. GAAP statement 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.

94

Table of Contents

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

 

Three Months Ended June 30, 2025

 

Carlyle
Consolidated

Adjustments (4)

Total
Reportable
Segments

 

(Dollars in millions)

Performance revenues

$ 638.8

$ (379.0)

$ 259.8

Performance revenues related compensation expense

443.6

(271.5)

172.1

Net performance revenues

$ 195.2

$ (107.5)

$ 87.7

Principal investment income (loss)

$ 55.2

$ (21.7)

$ 33.5

Six Months Ended June 30, 2025

Carlyle
Consolidated

Adjustments (4)

Total
Reportable
Segments

(Dollars in millions)

Performance revenues

$ 861.7

$ (246.8)

$ 614.9

Performance revenues related compensation expense

615.0

(215.2)

399.8

Net performance revenues

$ 246.7

$ (31.6)

$ 215.1

Principal investment income (loss)

$ (7.9)

$ 71.4

$ 63.5

 

Three Months Ended June 30, 2024

 

Carlyle
Consolidated

Adjustments (4)

Total
Reportable
Segments

 

(Dollars in millions)

Performance revenues

$ 198.2

$ (41.7)

$ 156.5

Performance revenues related compensation expense

144.2

(43.4)

100.8

Net performance revenues

$ 54.0

$ 1.7

$ 55.7

Principal investment income (loss)

$ 88.1

$ (61.5)

$ 26.6

Six Months Ended June 30, 2024

Carlyle
Consolidated

Adjustments (4)

Total
Reportable
Segments

(Dollars in millions)

Performance revenues

$ 41.2

$ 513.1

$ 554.3

Performance revenues related compensation expense

71.4

285.2

356.6

Net performance revenues

$ (30.2)

$ 227.9

$ 197.7

Principal investment income (loss)

$ 161.2

$ (100.9)

$ 60.3

(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 our Non-GAAP results, (ii)
amounts earned from the Consolidated Funds, which were eliminated in the U.S. GAAP consolidation but were included in the Non-
GAAP results, (iii) amounts attributable to non-controlling interests in consolidated entities, which were excluded from the Non-GAAP
results, (iv) the reclassification of NGP performance revenues, which are included in 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 investment in NGP Management and its affiliates to the
appropriate operating captions for the Non-GAAP results, and the exclusion of charges associated with the investment in NGP
Management and its affiliates that are excluded from the Non-GAAP results.  

95

Table of Contents

Distributable Earnings for our reportable segments are as follows:  

 

Three Months Ended June 30,

Six Months Ended June 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Global Private Equity

$ 231.9

$ 199.1

$ 497.5

$ 512.2

Global Credit

120.9

99.8

231.4

181.9

Carlyle AlpInvest

78.2

44.3

157.5

80.4

Distributable Earnings

$ 431.0

$ 343.2

$ 886.4

$ 774.5

Segment Analysis
Discussed below is our DE and FRE for our segments for the periods presented. Our segment information is reflected in
the manner used by our chief operating decision maker to make operating and compensation decisions, assess performance, and
allocate resources.
For segment reporting purposes, revenues and expenses are presented on a basis that deconsolidates our Consolidated
Funds. As a result, segment revenues from management fees, realized performance revenues and realized principal investment
income (loss) are different than those presented on a consolidated U.S. GAAP basis because these revenues recognized in
certain segments are received from Consolidated Funds and are eliminated in consolidation when presented on a consolidated
U.S. GAAP basis. Furthermore, segment expenses are different than related amounts presented on a consolidated U.S. GAAP
basis due to the exclusion of fund expenses that are paid by the Consolidated Funds.

96

Table of Contents

Global Private Equity
The following table presents our results of operations for our Global Private Equity (1) segment:  

 

Three Months Ended
June 30,

Change

Six Months Ended
June 30,

Change

 

2025

2024

$

%

2025

2024

$

%

 

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 302.4

$ 305.2

$ (2.8)

(1) %

$ 585.4

$ 609.8

$ (24.4)

(4) %

Portfolio advisory and
transaction fees, net and other

6.9

3.8

3.1

82 %

21.4

10.9

10.5

96 %

Fee related performance
revenues

—

3.2

(3.2)

(100) %

—

6.9

(6.9)

(100) %

Total fund level fee revenues

309.3

312.2

(2.9)

(1) %

606.8

627.6

(20.8)

(3) %

Realized performance revenues

244.7

129.7

115.0

89 %

561.8

503.5

58.3

12 %

Realized principal investment
income

12.4

6.8

5.6

82 %

27.5

25.7

1.8

7 %

Interest income

5.5

6.5

(1.0)

(15) %

11.5

14.1

(2.6)

(18) %

Total revenues

571.9

455.2

116.7

26 %

1,207.6

1,170.9

36.7

3 %

Segment Expenses

Compensation and benefits

Cash-based compensation and
benefits

108.4

103.9

4.5

4 %

209.1

213.2

(4.1)

(2) %

Realized performance revenues
related compensation

160.9

81.4

79.5

98 %

361.3

315.7

45.6

14 %

Total compensation and
benefits

269.3

185.3

84.0

45 %

570.4

528.9

41.5

8 %

General, administrative, and other
indirect expenses (1)

50.3

50.2

0.1

— %

99.0

88.8

10.2

11 %

Depreciation and amortization
expense

7.0

6.5

0.5

8 %

13.9

12.9

1.0

8 %

Interest expense

13.4

14.1

(0.7)

(5) %

26.8

28.1

(1.3)

(5) %

Total expenses

340.0

256.1

83.9

33 %

710.1

658.7

51.4

8 %

(=) Distributable Earnings

$ 231.9

$ 199.1

$ 32.8

16 %

$ 497.5

$ 512.2

$ (14.7)

(3) %

(-) Realized Net Performance
Revenues

83.8

48.3

35.5

73 %

200.5

187.8

12.7

7 %

(-) Realized Principal Investment
Income

12.4

6.8

5.6

82 %

27.5

25.7

1.8

7 %

(+) Net Interest

7.9

7.6

0.3

4 %

15.3

14.0

1.3

9 %

(=) Fee Related Earnings

$ 143.6

$ 151.6

$ (8.0)

(5) %

$ 284.8

$ 312.7

$ (27.9)

(9) %

(1) For purposes of presenting our results of operations for this segment, our earnings from our investments in NGP are presented in the
respective operating captions.

97

Table of Contents

Distributable Earnings
Distributable Earnings increased $32.8 million for the three months ended June 30, 2025 , as compared to the three
months ended June 30, 2024 , and decreased $14.7 million for the six months ended June 30, 2025 , as compared to the six
months ended June 30, 2024 . The following table provides the components of the changes in Distributable Earnings for the
three and six months ended June 30, 2025 :

Three Months Ended
June 30,

Six Months Ended
June 30,

2025 v. 2024

(Dollars in millions)

Distributable Earnings, June 30, 2024

$ 199.1

$ 512.2

Increases (decreases):

Decrease in fee related earnings

(8.0)

(27.9)

Increase in realized net performance revenues

35.5

12.7

Increase in realized principal investment income

5.6

1.8

Increase in net interest

(0.3)

(1.3)

Total increase (decrease)

32.8

(14.7)

Distributable Earnings, June 30, 2025

$ 231.9

$ 497.5

Realized Net Performance Revenues . Realized net performance revenues increased $35.5 million for the three months
ended June 30, 2025 , as compared to the three months ended June 30, 2024 , and increased $12.7 million for the six months
ended June 30, 2025 , as compared to the six months ended June 30, 2024 . Realized net performance revenues for the three
months ended June 30, 2025 were primarily attributable to realizations in NGP XI and, to a lesser extent , CAP IV and CP VI.
Realized net performance revenues for the six months ended June 30, 2025 were primarily attributable to realizations in CPP II,
NGP XI, and CAP I V . Realized net performance revenues for the three and six months ended June 30, 2024 were primarily
attributable to realizations in CIEP I and CP VI. Additionally, the six months ended June 30, 2024 were impacted by
realizations in CAP IV. A slower pace of investment exit activity in funds of a vintage that are realizing carry may reduce our
realized net performance revenues in the coming quarters.
Fee Related Earnings
Fee Related Earnings decreased $8.0 million for the three months ended June 30, 2025 , as compared to the three months
ended June 30, 2024 , and decreased $27.9 million for the six months ended June 30, 2025 , as compared to the six months ended
June 30, 2024 . The following table provides the components of the changes in Fee Related Earnings for the three and six
months ended June 30, 2025 :

Three Months Ended
June 30,

Six Months Ended
June 30,

2025 v. 2024

(Dollars in millions)

Fee Related Earnings, June 30, 2024

$ 151.6

$ 312.7

Increases (decreases):

Decrease in fee revenues

(2.9)

(20.8)

(Increase) decrease in cash-based compensation and benefits

(4.5)

4.1

Increase in general, administrative and other indirect expenses

(0.1)

(10.2)

  All other changes

(0.5)

(1.0)

Total decrease

(8.0)

(27.9)

Fee Related Earnings, June 30, 2025

$ 143.6

$ 284.8

98

Table of Contents

Fee Revenues. Total fee revenues decreased $2.9 million for the three months ended June 30, 2025 , as compared to the
three months ended June 30, 2024 , and decreased $20.8 million for the six months ended June 30, 2025 , as compared to the six
months ended June 30, 2024 , due to the following:

Three Months Ended
June 30,

Six Months Ended
June 30,

2025 v. 2024

(Dollars in millions)

Lower fund management fees

$ (2.8)

$ (24.4)

Higher portfolio advisory and transaction fees, net and other

3.1

10.5

Lower fee related performance revenues

(3.2)

(6.9)

Total decrease in fee revenues

$ (2.9)

$ (20.8)

The decrease in fund management fees for the six months ended June 30, 2025 as compared to the six months ended June
30, 2024 was primarily due to step-downs in management fee b asi s on CEP V and CRP IX in the fourth quarter of 2024 , as well
as net investment realizations in funds on which management fees are based on invested capital. These were partially offset by
the activation of fees in CJP V, which turned on fees in the fourth quarter of 2024, as well as CRP X, which turned on fees on
April 1, 2025. The impact of smaller buyout funds in our corporate private equity strategy is resulting in, and may continue to
result in, lower fund management fees relative to prior periods.
The increase in portfolio advisory and transaction fees, net and other for the three and six months ended June 30, 2025 as
compared to the three and six months ended June 30, 2024 was primarily due to an increase in transaction fees. Transaction fees
are primarily generated by investment activity within our funds, and are therefore impacted by our investment pace. See “—
Trends Affecting Our Business” for further discussion on our investment activity and broader market trends.
General, administrative and other indirect expenses . General, administrative and other indirect expenses increased $0.1
million for the three months ended June 30, 2025 , as compared to the three months ended June 30, 2024 , and increased $10.2
million for the six months ended June 30, 2025 , as compared to the six months ended June 30, 2024 . The increase for the six
months ended June 30, 2025 was primarily due to an increase in costs related to funds in fundraising as well as a lower reversal
of value-added tax expense in Asi a . This was partially offset by foreign exchange gains for the six months ended June 30, 2025
compared to foreign exchange loss for the six months ended June 30, 2024 .

Fee-earning AUM
Fee-earning AUM is presented below for each period together with the components of change during each respective
period.

 

As of June 30,

 

2025

2024

Global Private Equity

(Dollars in millions)

Components of Fee-earning AUM (1)

Fee-earning AUM based on capital commitments

$ 42,297

$ 47,522

Fee-earning AUM based on invested capital

49,703

45,361

Fee-earning AUM based on net asset value

7,364

7,166

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

2,966

3,613

Total Fee-earning AUM

$ 102,330

$ 103,662

Annualized Management Fee Rate (2)

1.16 %

1.16 %

(1) For additional information concerning the components of Fee-earning AUM, see “—Key Financial Measures—Operating Metrics.”
(2) Represents annualized fund management fees divided by the average of the beginning of year and each quarter end’s Fee-earning AUM
in the reporting period. Catch-up management fees were excluded in the calculation of the annualized fund management fees.

99

Table of Contents

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

 

Three Months Ended
June 30,

Six Months Ended
June 30,

 

2025

2024

2025

2024

Global Private Equity

(Dollars in millions)

Fee-earning AUM Rollforward

Balance, Beginning of Period

$ 98,711

$ 104,024

$ 98,033

$ 106,651

Inflows (1)

9,169

2,965

10,666

3,684

Outflows (including realizations) (2)

(6,539)

(3,254)

(8,016)

(5,870)

Market Activity & Other (3)

(208)

116

(258)

(108)

Foreign Exchange (4)

1,197

(189)

1,905

(695)

Balance, End of Period

$ 102,330

$ 103,662

$ 102,330

$ 103,662

(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based
on commitments were activated during the period, and the fee-earning commitments invested in vehicles for which management fees
are based on invested capital. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which
are referenced as Pending Fee-earning AUM.
(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair
value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has
expired during the period, and reductions for funds that are no longer calling for fees. Realizations for funds earning management fees
based on commitments during the period do not affect Fee-earning AUM.
(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the
lower of cost or fair value.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Fee-earning AUM of $102.3 billion at June 30, 2025 increased 4% from $98.7 billion at March 31, 2025 . The net
increase was due to:
• Inflows of $9.2 billion , primarily driven by the activation of management fees in our tenth U.S. opportunistic real
estate fund; and
• Positive foreign exchange activity of $1.2 billion reflecting the translation of our EUR- and JPY-denominated funds
to USD.
Offsetting these increase s were:
• Outflows of $6.5 billion , driven by the expiration of fees in CP VI during the period, a fee basis step-down in CIEP
II, and realizations in funds that charge fees on invested capital .
Fee-earning AUM of $102.3 billion at June 30, 2025 increased 4% from $98.0 billion at December 31, 2024 . The net
increase was due to:
• Inflows of $10.7 billion , which included the activation of management fees in our tenth U.S. opportunistic real estate
fund, additional fee-paying capital raised in CAP VI, and investments in our Asia buyout and Europe buyout funds
which charge fees on invested capital; and
• Positive foreign exchange activity of $1.9 billion reflecting the translation of our EUR- and JPY-denominated funds
to USD.
Offsetting these increase s were:
• Outflows of $8.0 billion , which included realizations in funds that charge fees on invested capital, notably in our
Europe buyout, U.S. buyout, and U.S. real estate funds, as well as the expiration of fees in CP VI during the period,
and a fee basis step-down in CIEP II .
Fee-earning AUM of $102.3 billion at June 30, 2025 decreased 1% from $103.7 billion at June 30, 2024 . The net
decrease was due to:

100

Table of Contents

• Outflows of $17.1 billion driven by realizations in funds that charge fees on invested capital, fee basis step-downs in
CRP IX, CEP V, and CIEP II, and the expiration of fees in CP VI during the period.
Offsetting these decrease s were:
• Inflows of $14.7 billion primarily from the activation of fees in CRP X and CJP V, additional fee-paying capital
raised in CAP VI, and investments in funds which charge fees on invested capital; and
• Positive foreign exchange activity of $1.4 billions reflecting the translation of our EUR- and JPY-denominated funds
to USD.
Total AUM
The table below provides the period to period rollforward of Total AUM.

 

Three Months Ended
June 30, 2025

Six Months Ended
June 30, 2025

 

(Dollars in millions)

Global Private Equity

Total AUM Rollforward

Balance, Beginning of Period

$ 164,210

$ 163,533

Inflows (1)

2,843

5,556

Outflows (including realizations) (2)

(4,971)

(9,650)

Market Activity & Other (3)

1,021

2,479

Foreign Exchange (4)

1,954

3,139

Balance, End of Period

$ 165,057

$ 165,057

(1) Inflows reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects
translation at the average quarterly rate, while the separately reported Fundraising metric is translated at the spot rate for each individual
closing.
(2) Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and
separately managed accounts, gross redemptions in our open-ended funds, and the expiration of available capital.
(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related
co-investment vehicles, and separately managed accounts, as well as the impact of fees, expenses and non-investment income, and
other changes in AUM.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Total AUM was $165.1 billion at June 30, 2025 , an increase of 1% from $164.2 billion at March 31, 2025 . The net
increase was due to:
• Inflows of $2.8 billion , which included new capital raised in CRP X, CPI, and ACCD 3 ;
• Positive foreign exchange activity of $2.0 billion reflecting the translation of our EUR- and JPY-denominated funds
to USD; and
• Market appreciation of $1.0 billion driven by appreciation in CP VII ( $0.6 billion ), CAP V ($0.5 billion) , and CP
VIII ($0.4 billion), partially offset by depreciation in CEP V ($0.7 billion ).
Offsetting these increase s were:
• Outflows of $5.0 billion driven by realizations in our U.S. buyout and Asia buyout funds, as well as the NGP Energy
funds.
Total AUM was $165.1 billion at June 30, 2025 , an increase of 1% from $163.5 billion at December 31, 2024 . The net 
increase was due to:
• Inflows of $5.6 billion , which included new capital raised in CRP X, NGP RP III, CPI, and CAP VI;

101

Table of Contents

• Positive foreign exchange activity of $3.1 billion , which reflected the translation of our EUR- and JPY-denominated
funds to USD; and
• Market appreciation of $2.5 billion driven by appreciation in CP VII ($1.3 billion), CP VIII ($0.6 billion), CGP II
($0.3 billion), and the NGP Energy funds ($0.6 billion), partially offset by depreciation in CEP V ($0.8 billion).
Offsetting these increase s were:
• Outflows of $9.7 billion driven by distributions across the segment, notably in our U.S. buyout, p ower , Asia buyout,
and international energy funds, as well as the NGP Energy funds.
Fund Performance Metrics
Fund performance information for our investment funds that generally have at least $1.0 billion in capital commitments,
cumulative equity invested or total value as of June 30, 2025 , which we refer to as our “significant funds,” is included
throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The
fund return information reflected in this discussion and analysis is not indicative of the performance of The Carlyle Group Inc.
and is also not necessarily indicative of the future performance of any particular fund. An investment in The Carlyle Group Inc.
is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds
will achieve similar returns.
The following table reflects the performance of our significant funds in our Global Private Equity business. Please see
“—Our Global Investment Offerings” for a legend of the fund acronyms listed below.

102

Table of Contents

(Amounts in millions)

TOTAL INVESTMENTS

REALIZED/PARTIALLY
REALIZED INVESTMENTS(12)

 

As of June 30, 2025

As of June 30, 2025

Fund (Fee Initiation Date/Step-down Date)(1)

Committed
Capital(2)

Cumulative
Invested
Capital(3)

Percent
Invested

Realized
Value(4)

Remaining
Fair
Value(5)

MOIC
(6)

Gross
IRR
(7)(8)

Net
IRR
(8)(9)

Net Accrued
Carry/
(Giveback)
(10)

Total
Fair
Value(11)

MOIC
(6)

Gross
IRR
(7)(8)

Corporate Private Equity

CP VIII (Oct 2021 / Oct 2027)

$ 14,797

$ 10,389

70%

$ 1,684

$ 12,589

1.4x

21%

10%

$ 148

$ 2,088

1.6x

58%

CP VII (May 2018 / Oct 2021)

$ 18,510

$ 17,787

96%

$ 7,206

$ 22,231

1.7x

12%

8%

$ 658

$ 6,965

1.6x

12%

CP VI (May 2013 / May 2018)

$ 13,000

$ 13,140

101%

$ 25,560

$ 3,089

2.2x

18%

13%

$ 127

$ 26,313

2.5x

22%

CP V (Jun 2007 / May 2013)

$ 13,720

$ 13,238

96%

$ 28,117

$ 449

2.2x

18%

14%

$ 31

$ 28,134

2.3x

20%

CEP V (Oct 2018 / Oct 2024)

€ 6,416

€ 6,079

95%

€ 1,628

€ 4,918

1.1x

1%

Neg

$ —

€ 543

0.8x

Neg

CEP IV (Sep 2014 / Oct 2018)

€ 3,670

€ 3,968

108%

€ 6,197

€ 1,315

1.9x

16%

11%

$ 57

€ 6,250

2.1x

20%

CEP III (Jul 2007 / Dec 2013)

€ 5,295

€ 5,177

98%

€ 11,730

€ 19

2.3x

19%

14%

$ 2

€ 11,749

2.3x

19%

CAP VI (Jun 2024 / Jun 2030)

$ 2,852

$ —

—%

$ —

$ —

n/a

n/a

n/a

$ —

n/a

n/a

n/a

CAP V (Jun 2018 / Jun 2024)

$ 6,554

$ 6,875

105%

$ 2,758

$ 7,123

1.4x

15%

8%

$ 104

$ 2,136

1.3x

23%

CAP IV (Jul 2013 / Jun 2018)

$ 3,880

$ 4,146

107%

$ 8,667

$ 301

2.2x

18%

13%

$ 18

$ 8,704

2.4x

21%

CJP V (Nov 2024 / Nov 2030)

¥ 434,325

¥ —

—%

¥ —

¥ —

n/a

n/a

n/a

$ —

n/a

n/a

n/a

CJP IV (Oct 2020 / Nov 2024)

¥ 258,000

¥ 234,357

91%

¥ 144,666

¥ 272,773

1.8x

35%

23%

$ 74

¥ 173,942

3.3x

63%

CJP III (Sep 2013 / Aug 2020)

¥ 119,505

¥ 91,192

76%

¥ 262,826

¥ 18,580

3.1x

25%

18%

$ 10

¥ 271,686

3.2x

26%

CGFSP III (Dec 2017 / Dec 2023)

$ 1,005

$ 972

97%

$ 530

$ 1,707

2.3x

23%

17%

$ 76

$ 1,038

4.2x

35%

CGFSP II (Jun 2013 / Dec 2017)

$ 1,000

$ 943

94%

$ 1,961

$ 609

2.7x

26%

19%

$ 35

$ 1,956

2.4x

28%

CP Growth (Oct 2021 / Oct 2027)

$ 1,283

$ 568

44%

$ —

$ 676

1.2x

NM

NM

$ —

n/a

n/a

n/a

CEOF II (Nov 2015 / Mar 2020)

$ 2,400

$ 2,368

99%

$ 4,106

$ 1,422

2.3x

21%

15%

$ 71

$ 4,670

2.5x

23%

CETP V (Mar 2022 / Jun 2028)

€ 3,180

€ 1,393

44%

€ —

€ 1,573

1.1x

NM

NM

$ —

n/a

n/a

n/a

CETP IV (Jul 2019 / Jun 2022)

€ 1,350

€ 1,200

89%

€ 1,344

€ 1,423

2.3x

31%

22%

$ 60

€ 1,344

4.4x

74%

CETP III (Jul 2014 / Jul 2019)

€ 657

€ 610

93%

€ 1,752

€ 353

3.5x

41%

28%

$ 22

€ 1,756

3.8x

45%

CGP II (Dec 2020 / Jan 2025)

$ 1,840

$ 984

53%

$ 195

$ 1,661

1.9x

22%

17%

$ 34

n/a

n/a

n/a

CGP (Jan 2015 / Mar 2021)

$ 3,588

$ 3,235

90%

$ 1,581

$ 2,773

1.3x

5%

4%

$ 20

$ 1,802

2.3x

16%

All Other Active Funds & Vehicles(13)

$ 20,543

n/a

$ 15,421

$ 16,908

1.6x

12%

10%

$ 49

$ 15,402

2.0x

19%

Fully Realized Funds & Vehicles(14)(15)

$ 35,609

n/a

$ 81,770

$ 2

2.3x

28%

20%

$ 2

$ 81,772

2.3x

28%

TOTAL CORPORATE PRIVATE EQUITY(16)

$ 154,724

n/a

$ 209,023

$ 84,854

1.9x

25%

17%

$ 1,599

$ 209,523

2.3x

26%

Real Estate

CRP X (Apr 2025 / Jul 2030)

$ 8,920

$ 181

2%

$ —

$ 169

0.9x

NM

NM

$ —

n/a

n/a

n/a

CRP IX (Oct 2021 / Dec 2024)

$ 7,987

$ 5,819

73%

$ 284

$ 6,611

1.2x

15%

4%

$ —

$ 272

1.4x

22%

CRP VIII (Aug 2017 / Oct 2021)

$ 5,505

$ 5,169

94%

$ 5,468

$ 3,587

1.8x

33%

19%

$ 96

$ 5,427

2.1x

52%

CRP VII (Jun 2014 / Dec 2017)

$ 4,162

$ 3,820

92%

$ 5,092

$ 1,197

1.6x

17%

10%

$ 10

$ 5,063

1.7x

20%

CRP VI (Mar 2011 / Jun 2014)

$ 2,340

$ 2,155

92%

$ 3,815

$ 118

1.8x

27%

17%

$ 4

$ 3,748

1.9x

28%

CPI (May 2016 / n/a)

$ 8,194

$ 8,474

103%

$ 3,313

$ 7,666

1.3x

11%

9%

n/a*

$ 2,132

1.7x

12%

All Other Active Funds & Vehicles(17)

$ 2,578

n/a

$ 481

$ 2,483

1.1x

9%

6%

$ 5

$ 329

1.5x

22%

Fully Realized Funds & Vehicles(15)(18)

$ 14,292

n/a

$ 21,635

$ 14

1.5x

9%

5%

$ —

$ 21,649

1.5x

10%

TOTAL REAL ESTATE(16)

$ 42,488

n/a

$ 40,088

$ 21,844

1.5x

12%

7%

$ 115

$ 38,620

1.6x

13%

Infrastructure & Natural Resources

CIEP II (Apr 2019 / Apr 2025)

$ 2,286

$ 1,008

44%

$ 799

$ 1,060

1.8x

27%

12%

$ 35

$ 740

3.1x

NM**

CIEP I (Sep 2013 / Jun 2019)

$ 2,500

$ 2,470

99%

$ 3,289

$ 1,429

1.9x

15%

9%

$ 46

$ 3,738

2.2x

18%

CGIOF (Dec 2018 / Sep 2023)

$ 2,201

$ 2,054

93%

$ 658

$ 2,779

1.7x

18%

11%

$ 76

$ 777

1.7x

16%

CRSEF II (Nov 2022 / Aug 2027)

$ 1,187

$ 471

40%

$ —

$ 727

1.5x

NM

NM

$ 11

n/a

n/a

n/a

NGP XIII (Feb 2023 / Feb 2028)

$ 2,300

$ 452

20%

$ 31

$ 620

1.4x

NM

NM

$ 2

$ 63

3.1x

NM

NGP XII (Jul 2017 / Jul 2022)

$ 4,304

$ 3,634

84%

$ 4,513

$ 2,864

2.0x

21%

15%

$ 30

$ 4,180

2.9x

37%

NGP XI (Oct 2014 / Jul 2017)

$ 5,325

$ 5,034

95%

$ 7,915

$ 1,872

1.9x

13%

10%

$ 64

$ 7,367

2.1x

21%

NGP X (Jan 2012 / Dec 2014)

$ 3,586

$ 3,351

93%

$ 3,448

$ 285

1.1x

3%

—%

$ —

$ 3,262

1.2x

5%

All Other Active Funds & Vehicles(19)

$ 4,901

n/a

$ 3,120

$ 4,546

1.6x

15%

12%

$ 26

$ 2,799

2.2x

18%

Fully Realized Funds & Vehicles(15)(20)

$ 3,534

n/a

$ 5,573

$ 6

1.6x

8%

5%

$ 1

$ 5,579

1.6x

8%

TOTAL INFRASTRUCTURE & NATURAL
RESOURCES(16)

$ 26,907

n/a

$ 29,346

$ 16,187

1.7x

12%

8%

$ 291

$ 28,503

1.9x

14%

103

Table of Contents

*Net accrued fee related performance revenues for CPI are excluded from Net Accrued Performance Revenues. These amounts will be
reflected as fee related performance revenues when realized, and included in Fund level fee revenues in our segment results. There were no
accrued fee related performance revenues for CPI as of June 30, 2025 .
**The IRR is incalculable, which occurs in instances when a distribution occurs prior to a Limited Partner capital contribution due to the use
of fund-level credit facilities.
(1) The fund step-down date represents the contractual step-down date under the respective fund agreements for funds on
which the fee basis step-down has not yet occurred. Funds without a listed Fee Initiation Date and Step-down Date have
not yet initiated fees.
(2) All amounts shown represent total capital commitments as of June 30, 2025. Certain of our recent vintage funds are
currently in fundraising and total capital commitments are subject to change.
(3) Represents the original cost of investments since inception of the fund.  
(4) Represents all realized proceeds since inception of the fund.
(5) Represents remaining fair value, before management fees, expenses and carried interest, and may include remaining
escrow values for realized investments.
(6) Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest,
divided by cumulative invested capital.
(7) Gross Internal Rate of Return (“Gross IRR”) represents an annualized time-weighted return on Limited Partner invested
capital, based on contributions, distributions and unrealized fair value as of the reporting date, before the impact of
management fees, partnership expenses and carried interest. For fund vintages 2017 and after, Gross IRR includes the
impact of interest expense related to the funding of investments on fund lines of credit. Gross IRR is calculated based on
the timing of Limited Partner cash flows, which may differ to varying degrees from the timing of actual investment cash
flows for the fund. Subtotal Gross IRR aggregations for multiple funds are calculated based on actual cash flow dates for
each fund and represent a theoretical time-weighted return for a Limited Partner who invested sequentially in each fund.
(8) For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time
since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is considered meaningful
but is negative as of reporting period end.
(9) Net Internal Rate of Return (“Net IRR”) represents an annualized time-weighted return on Limited Partner invested
capital, based on contributions, distributions and unrealized fair value as of the reporting date, after the impact of all
management fees, partnership expenses and carried interest, including current accruals. Net IRR is calculated based on
the timing of Limited Partner cash flows, which may differ to varying degrees from the timing of actual investment cash
flows for the fund. Fund level IRRs are based on aggregate Limited Partner cash flows, and this blended return may differ
from that of individual Limited Partners. As a result, certain funds may generate accrued performance revenues with a
blended Net IRR that is below the preferred return hurdle for that fund. Subtotal Net IRR aggregations for multiple funds
are calculated based on actual cash flow dates for each fund and represent a theoretical time-weighted return for a
Limited Partner who invested sequentially in each fund.
(10) Represents the net accrued performance revenue balance/(giveback obligation) as of the current quarter end.
(11) Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried
interest.
(12) An investment is considered realized when the investment fund has completely exited, and ceases to own an interest in,
the investment. An investment is considered partially realized when the total amount of proceeds received in respect of
such investment, including dividends, interest or other distributions and/or return of capital, represents at least 85% of
invested capital and such investment is not yet fully realized. Because part of our value creation strategy involves
pursuing best exit alternatives, we believe information regarding Realized/Partially Realized MOIC and Gross IRR, when
considered together with the other investment performance metrics presented, provides investors with meaningful
information regarding our investment performance by removing the impact of investments where significant realization
activity has not yet occurred. Realized/Partially Realized MOIC and Gross IRR have limitations as measures of
investment performance and should not be considered in isolation. Such limitations include the fact that these measures
do not include the performance of earlier stage and other investments that do not satisfy the criteria provided above. The
exclusion of such investments will have a positive impact on Realized/Partially Realized MOIC and Gross IRR in
instances when the MOIC and Gross IRR in respect of such investments are less than the aggregate MOIC and Gross
IRR. Our measurements of Realized/Partially Realized MOIC and Gross IRR may not be comparable to those of other
companies that use similarly titled measures.

104

Table of Contents

(13) Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and
stand-alone investments arranged by us: MENA, CCI, CSSAF I, CPF I, CAP Growth I, CAP Growth II, CBPF II, CAGP
IV, ABV 8, ABV 9, ACCD 2 and CCD-CIF.
(14) Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and
certain other stand-alone investments arranged by us: CP I, CP II, CP III, CP IV, CEP I, CEP II, CAP I, CAP II, CAP III,
CBPF I, CJP I, CJP II, CMG, CVP I, CVP II, CUSGF III, CGFSP I, CEVP I, CETP I, CETP II, CAVP I, CAVP II,
CAGP III, CEOF I, Mexico and CSABF.
(15) Funds are included when all investments have been realized. There may be remaining fair value and net accrued carry
where there are outstanding escrow balances or undistributed proceeds.
(16) For purposes of aggregation, funds that report in foreign currency have been converted to U.S. dollars at the reporting
period spot rate.
(17) Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and
stand-alone investments arranged by us: CCR, CER I, and CER II.
(18) Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and
certain other stand-alone investments arranged by us: CRP I, CRP II, CRP III, CRP IV, CRP V, CRCP I, CAREP I,
CAREP II, CEREP I, CEREP II and CEREP III.
(19) Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and
stand-alone investments arranged by us: NGP GAP, NGP RP I, NGP RP II, NGP RP III, NGP ETP IV, CPOCP, and
CRSEF.
(20) Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and
certain other stand-alone investments arranged by us: CIP and CPP II.

105

Table of Contents

Global Credit
The following table presents our results of operations for our Global Credit segment:

 

Three Months Ended
June 30,

Change

Six Months Ended
June 30,

Change

 

2025

2024

$

%

2025

2024

$

%

 

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 170.0

$ 140.8

$ 29.2

21 %

$ 309.6

$ 277.7

$ 31.9

11 %

Portfolio advisory and
transaction fees, net and other

41.0

25.0

16.0

64 %

104.4

44.6

59.8

134 %

Fee related performance
revenues

28.6

28.0

0.6

2 %

57.4

52.2

5.2

10 %

Total fund level fee revenues

239.6

193.8

45.8

24 %

471.4

374.5

96.9

26 %

Realized performance revenues

5.1

6.9

(1.8)

(26) %

18.4

7.5

10.9

145 %

Realized principal investment
income

12.0

19.2

(7.2)

(38) %

17.5

33.0

(15.5)

(47) %

Interest income

7.0

10.1

(3.1)

(31) %

14.0

20.8

(6.8)

(33) %

Total revenues

263.7

230.0

33.7

15 %

521.3

435.8

85.5

20 %

Segment Expenses

Compensation and benefits

Cash-based compensation and
benefits

88.2

74.0

14.2

19 %

177.2

150.8

26.4

18 %

Realized performance revenues
related compensation

3.1

4.3

(1.2)

(28) %

11.0

4.6

6.4

139 %

Total compensation and
benefits

91.3

78.3

13.0

17 %

188.2

155.4

32.8

21 %

General, administrative, and other
indirect expenses

36.2

35.3

0.9

3 %

71.2

64.9

6.3

10 %

Depreciation and amortization
expense

3.8

3.2

0.6

19 %

7.7

6.3

1.4

22 %

Interest expense

11.5

13.4

(1.9)

(14) %

22.8

27.3

(4.5)

(16) %

Total expenses

142.8

130.2

12.6

10 %

289.9

253.9

36.0

14 %

(=) Distributable Earnings

$ 120.9

$ 99.8

$ 21.1

21 %

$ 231.4

$ 181.9

$ 49.5

27 %

(-) Realized Net Performance
Revenues

2.0

2.6

(0.6)

(23) %

7.4

2.9

4.5

155 %

(-) Realized Principal Investment
Income

12.0

19.2

(7.2)

(38) %

17.5

33.0

(15.5)

(47) %

(+) Net Interest

4.5

3.3

1.2

36 %

8.8

6.5

2.3

35 %

(=) Fee Related Earnings

$ 111.4

$ 81.3

$ 30.1

37 %

$ 215.3

$ 152.5

$ 62.8

41 %

106

Table of Contents

Distributable Earnings
Distributable Earnings increased $21.1 million for the three months ended June 30, 2025 , as compared to the three
months ended June 30, 2024 , and increased $49.5 million for the six months ended June 30, 2025 , as compared to the six
months ended June 30, 2024 . The following table provides the components of the changes in Distributable Earnings for the
three and six months ended June 30, 2025 :

Three Months Ended
June 30,

Six Months Ended
June 30,

2025 v. 2024

(Dollars in millions)

Distributable Earnings, June 30, 2024

$ 99.8

$ 181.9

Increases (decreases):

Increase in fee related earnings

30.1

62.8

(Decrease) increase in realized net performance revenues

(0.6)

4.5

Decrease in realized principal investment income

(7.2)

(15.5)

Increase in net interest

(1.2)

(2.3)

Total increase

21.1

49.5

Distributable Earnings, June 30, 2025

$ 120.9

$ 231.4

Realized Principal Investment Income . Realized principal investment income decreased $7.2 million for the three months
ended June 30, 2025 , as compared to the three months ended June 30, 2024 , and decreased $15.5 million for the six months
ended June 30, 2025 , as compared to the six months ended June 30, 2024 , primarily driven by lower realized principal
investment income from our European and U.S. CLOs.
Fee Related Earnings
Fee Related Earnings increased $30.1 million for the three months ended June 30, 2025 , as compared to the three months
ended June 30, 2024 , and increased $62.8 million for the six months ended June 30, 2025 , as compared to the six months ended
June 30, 2024 . The following table provides the components of the changes in Fee Related Earnings for the three and six
months ended June 30, 2025 :

Three Months Ended
June 30,

Six Months Ended
June 30,

2025 v. 2024

(Dollars in millions)

Fee Related Earnings, June 30, 2024

$ 81.3

$ 152.5

Increases (decreases):

Increase in fee revenues

45.8

96.9

Increase in cash-based compensation and benefits

(14.2)

(26.4)

Increase in general, administrative and other indirect expenses

(0.9)

(6.3)

All other changes

(0.6)

(1.4)

Total increase

30.1

62.8

Fee Related Earnings, June 30, 2025

$ 111.4

$ 215.3

107

Table of Contents

Fee Revenues . Fee revenues increased $45.8 million for the three months ended June 30, 2025 , as compared to the three
months ended June 30, 2024 , and increased $96.9 million for the six months ended June 30, 2025 , as compared to the six
months ended June 30, 2024 , due to the following:

Three Months Ended
June 30,

Six Months Ended
June 30,

2025 v. 2024

(Dollars in millions)

Higher fund management fees

$ 29.2

$ 31.9

Higher portfolio advisory and transaction fees, net and other

16.0

59.8

Higher fee related performance revenues

0.6

5.2

Total increase in fee revenues

$ 45.8

$ 96.9

The increase in Fund management fees for the three and six months ended June 30, 2025 as compared to the three and six
months ended June 30, 2024 was primarily attributable to the receipt of approximately $19 million of catch-up subordinated
management fees in certain aviation funds during the three months ended June 30, 2025 , due in part to the collection of
insurance proceeds and in part due to the sale of collateral in those vehicles. To a lesser extent, the increase in Fund
management fees for the three and six months ended June 30, 2025 as compared to the three and six months ended June 30,
2024 was also attributable to increases in management fees from CTAC , our opportunistic credit funds, and our direct lending
business. These were partially offset by lower management fees from our liquid credit business .
The increase in portfolio advisory and transaction fees, net and other fees for the three and six months ended June 30,
2025 as compared to the three and six months ended June 30, 2024 was primarily driven by an increase in capital markets fees.
The recognition of capital markets fees can be volatile as they are primarily generated by investment activity and a slower pace
of investment activity may reduce capital markets fees in the coming quarters. See “—Trends Affecting Our Business” for
further discussion on our investment activity and broader market trends.
Cash-based compensation and benefits expense . Cash-based compensation and benefits expense increased $14.2 million
for the three months ended June 30, 2025 , as compared to the three months ended June 30, 2024 , and increased $26.4 million
for the six months ended June 30, 2025 , as compared to the six months ended June 30, 2024 , primarily due to an increase in
accrued bonuses related to capital markets fees and incentive fees.

Fee-earning AUM
Fee-earning AUM is presented below for each period together with the components of change during each respective
period.

 

As of June 30,

 

2025

2024

Global Credit

(Dollars in millions)

Components of Fee-earning AUM (1)

Fee-earning AUM based on capital commitments

$ 2,530

$ 2,470

Fee-earning AUM based on invested capital

20,884

18,428

Fee-earning AUM based on collateral balances, at par

45,062

48,200

Fee-earning AUM based on net asset value

3,512

2,142

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

90,796

84,197

Total Fee-earning AUM

$ 162,784

$ 155,437

Annualized Management Fee Rate (3)

0.36 %

0.36 %

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

108

Table of Contents

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

 

Three Months Ended
June 30,

Six Months Ended
June 30,

 

2025

2024

2025

2024

Global Credit

(Dollars in millions)

Fee-earning AUM Rollforward

Balance, Beginning of Period

$ 160,731

$ 153,428

$ 154,186

$ 155,238

Inflows (1)

4,470

4,861

12,281

7,622

Outflows (including realizations) (2)

(3,415)

(2,804)

(6,528)

(5,764)

Market Activity & Other (3)

237

23

1,702

(1,315)

Foreign Exchange (4)

761

(71)

1,143

(344)

Balance, End of Period

$ 162,784

$ 155,437

$ 162,784

$ 155,437

(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based
on commitments were activated during the period, the fee-earning commitments invested in vehicles for which management fees are
based on invested capital, the fee-earning collateral balance of new CLO issuances, closed reinsurance transactions at Fortitude, and
gross subscriptions in our vehicles for which management fees are based on net asset value.
(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair
value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has
expired during the period, reductions for funds that are no longer calling for fees, gross redemptions in our open-ended funds, and
outflows from our liquid credit products. Realizations for funds earning management fees based on commitments during the period do
not affect Fee-earning AUM.
(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in funds or vehicles based on the
lower of cost or fair value or net asset value, activity of funds with fees based on gross asset value, and changes in the fair value of
Fortitude’s general account assets covered by the strategic advisory services agreement.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Fee-earning AUM was $162.8 billion at June 30, 2025 , an increase of 1% from $160.7 billion at March 31, 2025 . The net
increase was due to:
• Inflows of $4.5 billion , which were driven by capital deployment across the platform, including the closing of our
two latest vintage U.S. CLOs; and
• Positive foreign exchange activity of $0.8 billion reflecting the translation of our EUR-denominated product s to
USD.
Offsetting these increases were:
• Outflows of $3.4 billion , which included outflows from our liquid credit products and realizations across the
platform.
Fee-earning AUM was $162.8 billion at June 30, 2025 , an increase of 6% from $154.2 billion at December 31, 2024 . The
net increase was due to:
• Inflows of $12.3 billion , which were driven by over $4 billion of closed reinsurance transactions at Fortitude and
capital deployment across the platform, including the closing of our two latest vintage U.S. CLOs;
• Positive market activity of $1.7 billion , which primarily reflected an increase in the fair value of assets covered by
the Fortitude strategic advisory services agreement, as well as increases in our cross-platform credit and direct
lending products; and
• Positive foreign exchange activity of $1.1 billion reflecting the translation of our EUR-denominated products to
USD.
Offsetting these increases were:

109

Table of Contents

• Outflows of $6.5 billion , which were driven by outflows from our liquid credit products and realizations in our
aviation and opportunistic credit funds.
Fee-earning AUM was $162.8 billion at June 30, 2025 , an increase of 5% from $155.4 billion at June 30, 2024 . The net
increase was due to:
• Inflows of $20.0 billion , which reflected capital deployment across the platform, notably in our asset-backed
finance, direct lending, and opportunistic credit funds, over $4 billion of closed reinsurance transactions at Fortitude,
and the closing of our seven latest vintage CLOs.
Offsetting these increases were:
• Outflows of $13.3 billion , which included outflows from our liquid credit products and realizations across the
platform.
Total AUM
The table below provides the period to period rollforward of Total AUM.  

 

Three Months Ended
June 30, 2025

Six Months Ended
June 30, 2025

 

(Dollars in millions)

Global Credit

Total AUM Rollforward

Balance, Beginning of Period

$ 199,168

$ 192,374

Inflows (1)

5,452

12,982

Outflows (including realizations) (2)

(3,881)

(6,734)

Market Activity & Other (3)

1,463

3,172

Foreign Exchange (4)

825

1,233

Balance, End of Period

$ 203,027

$ 203,027

(1) Inflows generally reflects the impact of gross fundraising and closed reinsurance transactions at Fortitude during the period. For funds
or vehicles denominated in foreign currencies, this reflects translation at the average quarterly rate, while the separately reported
Fundraising metric is translated at the spot rate for each individual closing.
(2) Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and
separately managed accounts, gross redemptions in our open-ended funds, outflows from our liquid credit products, and the expiration
of available capital.
(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related
co-investment vehicles, and separately managed accounts, as well as the impact of fees, expenses and non-investment income, change
in gross asset value for our business development companies, changes in the fair value of Fortitude’s general account assets covered by
the strategic advisory services agreement, and other changes in AUM.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Total AUM was $203.0 billion at June 30, 2025 , an increase of 2% compared to $199.2 billion at March 31, 2025 . The
net increase was due to:
• Inflows of $5.5 billion , which were driven by capital raised in our U.S. structured credit and opportunistic credit
strategies; and
• Positive market activity of $1.5 billion , primarily from an increase in the fair value of our direct lending and cross-
platform credit products.
Offsetting these increases were:
• Outflows of $3.9 billion for the period, which primarily reflected outflows from our liquid credit products and
realizations across the platform.

110

Table of Contents

Total AUM was $203.0 billion at June 30, 2025 , an increase of 6% compared to $192.4 billion at December 31, 2024 .
The net increase was due to:
• Inflows of $13.0 billion , which were driven by capital raised in our U.S. structured credit, asset-backed finance,
aviation and opportunistic credit products, as well as over $4 billion of closed reinsurance transactions at Fortitude;
and
• Positive market activity of $3.2 billion , which primarily reflected an increase in the fair value of assets covered by
the Fortitude strategic advisory services agreement and an increase in the fair value of our direct lending and cross-
platform credit products.
Offsetting these increases were:
• Outflows of $6.7 billion for the period, which were primarily in our liquid credit products, with additional activity
reflecting realizations across the platform, notably in our aviation products.
Fund Performance Metrics
Fund performance information for certain of our Global Credit funds is included throughout this discussion and analysis
to facilitate an understanding of our results of operations for the periods presented. The fund return information reflected in this
discussion and analysis is not indicative of the performance of The Carlyle Group Inc. and is also not necessarily indicative of
the future performance of any particular fund. An investment in The Carlyle Group Inc. is not an investment in any of our
funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.
The following table reflects the performance of our significant carry funds in our Global Credit business. Please see “—
Our Global Investment Offerings” for a legend of the fund acronyms listed below. 

(Dollars in millions)

 

TOTAL INVESTMENTS

 

 

As of June 30, 2025

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

Committed
Capital(12)

Cumulative
Invested 
Capital (1)

Percent
Invested

Realized
Value (2)

Remaining
Fair Value
(3)

MOIC (4)

Gross IRR
(5) (8)

Net IRR
(6) (8)

Net Accrued
Carry/(Giveback)
(7)

Global Credit Carry Funds

CCOF III - Levered (Feb 2023 / Oct 2028)

$ 4,678

$ 3,174

68%

$ 396

$ 3,163

1.1x

NM

NM

$ 9

CCOF II (Nov 2020 / Mar 2026)

$ 4,430

$ 5,784

131%

$ 3,323

$ 4,503

1.4x

14%

10%

$ 112

CCOF I (Nov 2017 / Sep 2022)

$ 2,373

$ 3,514

148%

$ 3,743

$ 1,279

1.4x

16%

11%

$ 28

CSP IV (Apr 2016 / Dec 2020)

$ 2,500

$ 2,500

100%

$ 1,661

$ 1,762

1.4x

9%

5%

$ —

CICF II (Mar  2024 / Dec 2029)

$ 1,379

$ 263

19%

$ 31

$ 257

1.1x

NM

NM

$ —

SASOF III (Nov 2014 / n/a)

$ 833

$ 991

119%

$ 1,253

$ 84

1.3x

19%

11%

$ 6

All Other Active Funds & Vehicles(9)

$ 12,453

n/a

$ 3,585

$ 11,304

1.2x

10%

8%

$ 79

Fully Realized Funds & Vehicles(10)(13)

$ 9,698

n/a

$ 12,155

$ 36

1.3x

9%

4%

$ —

TOTAL GLOBAL CREDIT CARRY FUNDS

$ 38,376

n/a

$ 26,146

$ 22,388

1.3x

11%

7%

$ 234

(1) Represents the original cost of investments since the inception of the fund. For CSP III and CSP IV, reflects amounts
net of investment level recallable proceeds which is adjusted to reflect recyclability of invested capital for the purpose
of calculating the fund MOIC.
(2) Represents all realized proceeds since inception of the fund.
(3) Represents remaining fair value, before management fees, expenses and carried interest, and may include remaining
escrow values for realized investments.
(4) Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried
interest, divided by cumulative invested capital.
(5) Gross Internal Rate of Return (“Gross IRR”) represents an annualized time-weighted return on Limited Partner invested
capital, based on contributions, distributions and unrealized fair value as of the reporting date, before the impact of
management fees, partnership expenses and carried interest. For fund vintages 2017 and after, Gross IRR includes the
impact of interest expense related to the funding of investments on fund lines of credit. Gross IRR is calculated based
on the timing of Limited Partner cash flows, which may differ to varying degrees from the timing of actual investment
cash flows for the fund. Subtotal Gross IRR aggregations for multiple funds are calculated based on actual cash flow

111

Table of Contents

dates for each fund and represent a theoretical time-weighted return for a Limited Partner who invested sequentially in
each fund.
(6) Net Internal Rate of Return (“Net IRR”) represents an annualized time-weighted return on Limited Partner invested
capital, based on contributions, distributions and unrealized fair value as of the reporting date, after the impact of all
management fees, partnership expenses and carried interest, including current accruals. Net IRR is calculated based on
the timing of Limited Partner cash flows, which may differ to varying degrees from the timing of actual investment cash
flows for the fund. Fund level IRRs are based on aggregate Limited Partner cash flows, and this blended return may
differ from that of individual Limited Partners. As a result, certain funds may generate accrued performance revenues
with a blended Net IRR that is below the preferred return hurdle for that fund. Subtotal Net IRR aggregations for
multiple funds are calculated based on actual cash flow dates for each fund and represent a theoretical time-weighted
return for a Limited Partner who invested sequentially in each fund.
(7) Represents the net accrued performance revenue balance/(giveback obligation) as of the current quarter end.
(8) For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time
since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is considered meaningful
but is negative as of reporting period end.
(9) Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and
stand-alone investments arranged by us: SASOF IV, SASOF V, CAPF VII, CICF, CAF, CALF, CCOF III - Unlevered,
and CCOF III PSV.
(10) Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and
certain other stand-alone investments arranged by us: CSP I, CSP II, CSP III, CEMOF I, CEMOF II, CSC, CMP I,
CMP II, SASOF II, and CASCOF.
(11) The fund step-down date represents the contractual step-down date under the respective fund agreements for funds on
which the fee basis step-down has not yet occurred. Funds without a listed Fee Initiation Date and Step-down Date have
not yet initiated fees.
(12) All amounts shown represent total capital commitments as of June 30, 2025. Certain of our recent vintage funds are
currently in fundraising and total capital commitments are subject to change. Committed capital for CCOF II excludes
$150 million in capital committed by a CCOF II investor to a side vehicle. The CCOF III platform, which includes
CCOF III - Levered, CCOF III - Unlevered, and CCOF III PSV, collectively has $5.7 billion of committed capital.
(13) Funds are included when all investments have been realized. There may be remaining fair value and net accrued carry
where there are outstanding escrow balances or undistributed proceeds.

112

Table of Contents

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

 

Three Months Ended
June 30,

Change

Six Months Ended
June 30,

Change

 

2025

2024

$

%

2025

2024

$

%

 

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 117.2

$ 79.5

$ 37.7

47 %

$ 220.1

$ 153.6

$ 66.5

43 %

Portfolio advisory and
transaction fees, net and other

—

0.1

(0.1)

NM

—

0.1

(0.1)

NM

Fee related performance
revenues

10.1

1.9

8.2

NM

20.8

3.1

17.7

NM

Total fund level fee revenues

127.3

81.5

45.8

56 %

240.9

156.8

84.1

54 %

Realized performance revenues

10.0

19.9

(9.9)

(50) %

34.7

43.3

(8.6)

(20) %

Realized principal investment
income

9.1

0.6

8.5

NM

18.5

1.6

16.9

NM

Interest income

2.0

1.7

0.3

18 %

4.2

3.5

0.7

20 %

Total revenues

148.4

103.7

44.7

43 %

298.3

205.2

93.1

45 %

Segment Expenses

Compensation and benefits

Cash-based compensation and
benefits

37.2

27.4

9.8

36 %

71.5

55.6

15.9

29 %

Realized performance revenues
related compensation

8.1

15.1

(7.0)

(46) %

27.5

36.3

(8.8)

(24) %

Total compensation and
benefits

45.3

42.5

2.8

7 %

99.0

91.9

7.1

8 %

General, administrative, and other
indirect expenses

19.8

12.4

7.4

60 %

31.7

23.9

7.8

33 %

Depreciation and amortization
expense

2.0

1.6

0.4

25 %

3.9

3.2

0.7

22 %

Interest expense

3.1

2.9

0.2

7 %

6.2

5.8

0.4

7 %

Total expenses

70.2

59.4

10.8

18 %

140.8

124.8

16.0

13 %

(=) Distributable Earnings

$ 78.2

$ 44.3

$ 33.9

77 %

$ 157.5

$ 80.4

$ 77.1

96 %

(-) Realized Net Performance
Revenues

1.9

4.8

(2.9)

(60) %

7.2

7.0

0.2

3 %

(-) Realized Principal Investment
Income

9.1

0.6

8.5

NM

18.5

1.6

16.9

NM

(+) Net Interest

1.1

1.2

(0.1)

(8) %

2.0

2.3

(0.3)

(13) %

(=) Fee Related Earnings

$ 68.3

$ 40.1

$ 28.2

70 %

$ 133.8

$ 74.1

$ 59.7

81 %

Distributable Earnings
Distributable Earnings increased $33.9 million for the three months ended June 30, 2025 , as compared to the three
months ended June 30, 2024 , and increased $77.1 million for the six months ended June 30, 2025 , as compared to the six
months ended June 30, 2024 . The following table provides the components of the changes in Distributable Earnings for the
three and six months ended June 30, 2025 :

113

Table of Contents

Three Months Ended
June 30,

Six Months Ended
June 30,

2025 v. 2024

(Dollars in millions)

Distributable Earnings, June 30, 2024

$ 44.3

$ 80.4

Increases (decreases):

Increase in fee related earnings

28.2

59.7

(Decrease) increase in realized net performance revenues

(2.9)

0.2

Increase in realized principal investment income

8.5

16.9

Decrease in net interest

0.1

0.3

Total increase

33.9

77.1

Distributable Earnings, June 30, 2025

$ 78.2

$ 157.5

Realized Principal Investment Income . Realized principal investment income increased $8.5 million for the three months
ended June 30, 2025 , as compared to the three months ended June 30, 2024 , and increased $16.9 million for the six months
ended June 30, 2025 , as compared to the six months ended June 30, 2024 , primarily driven by realized principal investment
income related to our investment in the CAPM funds.
Fee Related Earnings
Fee Related Earnings increased $28.2 million for the three months ended June 30, 2025 , as compared to the three months
ended June 30, 2024 , and increased $59.7 million for the six months ended June 30, 2025 , as compared to the six months ended
June 30, 2024 . The following table provides the components of the changes in Fee Related Earnings for the three and six
months ended June 30, 2025 :

Three Months Ended
June 30,

Six Months Ended
June 30,

2025 v. 2024

(Dollars in millions)

Fee Related Earnings, June 30, 2024

$ 40.1

$ 74.1

Increases (decreases):

Increase in fee revenues

45.8

84.1

Increase in cash-based compensation and benefits

(9.8)

(15.9)

Increase in general, administrative and other indirect expenses

(7.4)

(7.8)

All other changes

(0.4)

(0.7)

Total increase

28.2

59.7

Fee Related Earnings, June 30, 2025

$ 68.3

$ 133.8

Fee Revenues . Fee revenues increased $45.8 million for the three months ended June 30, 2025 , as compared to the three
months ended June 30, 2024 , and increased $84.1 million for the six months ended June 30, 2025 , as compared to the six
months ended June 30, 2024 , driven by an increase in Fund management fees of $37.7 million and $66.5 million and an
increase in Fee related performance revenues of $8.2 million and $17.7 million , respectively. The increase in Fund management
fees was primarily driven by the impact of ongoing fundraising in our most recent vintage secondaries & portfolio finance and
co-investment products, including catch-up management fees of $22.5 million and $33.5 million for the three and six months
ended June 30, 2025, respectively, an increase of $16.8 million and $27.0 million, respectively, relative to the comparable 2024
periods. Our CAPM retail strategy also contributed to the increase in Fund management fees, and drove the increase in Fee
related performance revenues due to its growing capital base and performance.
Cash-based compensation and benefits expense . Cash-based compensation and benefits expense increased $9.8 million
for the three months ended June 30, 2025 , as compared to the three months ended June 30, 2024 , and increased $15.9 million
for the six months ended June 30, 2025 , as compared to the six months ended June 30, 2024 , primarily due to an increase in
headcount and an increase in compensation associated with fee related performance revenues.

114

Table of Contents

Fee-earning AUM
Fee-earning AUM is presented below for each period together with the components of change during each respective
period.   

 

As of June 30,

 

2025

2024

Carlyle AlpInvest

(Dollars in millions)

Components of Fee-earning AUM (1)

Fee-earning AUM based on capital commitments

$ 25,607

$ 19,263

Fee-earning AUM based on invested capital (2)

10,022

8,894

Fee-earning AUM based on net asset value

15,345

11,380

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

8,613

8,709

Total Fee-earning AUM

$ 59,587

$ 48,246

Annualized Management Fee Rate (3)

0.67 %

0.62 %

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

 

Three Months Ended
June 30,

Six Months Ended
June 30,

 

2025

2024

2025

2024

Carlyle AlpInvest

(Dollars in millions)

Fee-earning AUM Rollforward

Balance, Beginning of Period

$ 54,401

$ 46,773

$ 52,139

$ 45,529

Inflows (1)

4,399

2,410

6,957

4,594

Outflows (including realizations) (2)

(851)

(1,084)

(1,867)

(1,819)

Market Activity & Other (3)

180

259

195

474

Foreign Exchange (4)

1,458

(112)

2,163

(532)

Balance, End of Period

$ 59,587

$ 48,246

$ 59,587

$ 48,246

(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based
on commitments were activated during the period and the fee-earning commitments invested in vehicles for which management fees are
based on invested capital. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which are
referenced as Pending Fee-earning AUM.
(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair
value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has
expired during the period, and reductions for funds that are no longer calling for fees. Distributions for funds earning management fees
based on commitments during the period do not affect Fee-earning AUM.
(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the
lower of cost or fair value and net asset value.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.

115

Table of Contents

Fee-earning AUM was $59.6 billion at June 30, 2025 , an increase of 10% from $54.4 billion at March 31, 2025 . The net
increase was due to:
• Inflows of $4.4 billion , which were driven by fee-paying capital raised and investment activity across all strategies,
notably in our secondaries & portfolio finance funds; and
• Positive foreign exchange activity of $1.5 billion , primarily from the translation of our EUR-denominated funds to
USD.
Offsetting these increases were:
• Outflows of $0.9 billion , which were driven by realizations in funds, across all strategies, that charge fees on
invested capital.
Fee-earning AUM was $59.6 billion at June 30, 2025 , an increase of 14% from $52.1 billion at December 31, 2024 . The
net increase was due to:
• Inflows of $7.0 billion , which were driven by fee-paying capital raised and investment activity across all strategies,
notably in our secondaries & portfolio finance funds; and
• Positive foreign exchange activity of $2.2 billion , primarily from the translation of our EUR-denominated funds to
USD.
Offsetting these increases were:
• Outflows of $1.9 billion , which were driven by realizations in our primary and secondaries & portfolio finance funds
that charge fees on invested capital.
Fee-earning AUM was $59.6 billion at June 30, 2025 , an increase of 24% compared to $48.2 billion at June 30, 2024 .
The net increase was due to:
• Inflows of $12.2 billion , which were driven by fee-paying capital raised and investment activity in our secondaries
& portfolio finance and CAPM funds;
• Positive foreign exchange activity of $1.6 billion , primarily from the translation of our EUR-denominated funds to
USD; and
• Market appreciation of $1.4 billion , which was driven by certain funds in our secondaries & portfolio finance and
primary strategies , as well as our CAPM funds, in which fees are based on fair value.
Offsetting these increases were:
• Outflows of $3.9 billion , which reflected realizations and step-downs in fee bases, notably in our primary and
secondaries & portfolio finance funds.

116

Table of Contents

Total AUM
The table below provides the period to period rollforward of Total AUM.

 

Three Months Ended
June 30, 2025

Six Months Ended
June 30, 2025

 

(Dollars in millions)

Carlyle AlpInvest

Total AUM Rollforward

Balance, Beginning of Period

$ 89,230

$ 85,113

Inflows (1)

5,148

9,074

Outflows (including realizations) (2)

(1,670)

(3,631)

Market Activity & Other (3)

1,336

2,217

Foreign Exchange (4)

2,474

3,745

Balance, End of Period

$ 96,518

$ 96,518

(1) Inflows reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects
translation at the average quarterly rate, while the separately reported Fundraising metric is translated at the spot rate for each individual
closing.
(2) Outflows includes distributions in our carry funds, related co-investment vehicles and separately managed accounts, as well as the
expiration of available capital.
(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related
co-investment vehicles and separately managed accounts, the net impact of fees, expenses and non-investment income, as well as other
changes in AUM.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Total AUM was $96.5 billion at June 30, 2025 , an increase of 8% compared to $89.2 billion at March 31, 2025 . The net
increase was due to:
• Inflows of $5.1 billion , which reflected fundraising across the segment, notably in our secondaries & portfolio
finance funds;
• Positive foreign exchange activity of $2.5 billion , primarily from the translation of our EUR-denominated funds to
USD; and
• Market appreciation of $1.3 billion , which was driven by our coinvestment and secondaries & portfolio finance
funds.
Offsetting these increases were:
• Outflows of $1.7 billion , predominantly from realizations in our primary and secondaries & portfolio finance funds.
Total AUM was $96.5 billion at June 30, 2025 , an increase of 13% compared to $85.1 billion at December 31, 2024 . The
net increase was due to:
• Inflows of $9.1 billion , which reflected fundraising across the platform, notably in our secondaries & portfolio
finance and co-investment strategies and the CAPM funds;
• Positive foreign exchange activity of $3.7 billion , primarily from the translation of our EUR-denominated funds to
USD; and
• Market appreciation of $2.2 billion , which was driven by our coinvestment and secondaries & portfolio finance
funds.
Offsetting these increases were:
• Outflows of $3.6 billion , predominantly from realizations in our primary and secondaries & portfolio finance funds.

117

Table of Contents

Fund Performance Metrics
The fund return information reflected in this discussion and analysis is not indicative of the performance of The Carlyle
Group Inc. and is also not necessarily indicative of the future performance of any particular fund. An investment in The Carlyle
Group Inc. is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and
future funds will achieve similar returns.
The following table reflects the performance of our significant funds in our Carlyle AlpInvest business. We also present
fund performance information for portfolios of investments held by separately managed accounts, generally aggregated either
as invested alongside the relevant commingled fund or over a specified time period.

(Amounts in millions)

 

 

TOTAL INVESTMENTS

 

 

 

As of June 30, 2025

Carlyle AlpInvest (1)(8)

Vintage
Year

Fund Size

Cumulative
Invested
Capital
(2)(3)

Realized
Value (3)

Remaining
Fair Value
(3)

Total Fair
Value(3)(4)

MOIC
(5)

Gross
IRR  
(6)(10)

Net
IRR
(7)(10)

Net Accrued
Carry/
(Giveback)
(12)

 

 

 

(Reported in Local Currency, in Millions)

Secondaries &
Portfolio
Finance

ASF VIII

2024

$ 11,433

$ 5,460

$ 78

$ 6,719

$ 6,798

1.2x

NM

NM

$ 45

ASF VII

2020

$ 6,769

$ 4,888

$ 1,847

$ 5,761

$ 7,607

1.6x

18%

14%

$ 110

ASF VII - SMAs

2020

€ 2,027

€ 1,681

€ 514

€ 1,965

€ 2,479

1.5x

17%

14%

$ 36

ASF VI

2017

$ 3,333

$ 2,800

$ 2,739

$ 1,896

$ 4,635

1.7x

15%

12%

$ 59

ASF VI - SMAs

2017

€ 2,817

€ 2,604

€ 2,337

€ 1,835

€ 4,172

1.6x

14%

12%

$ 49

ASF V

2012

$ 756

$ 673

$ 1,081

$ 118

$ 1,199

1.8x

18%

14%

$ 5

ASF V - SMAs

2012

€ 3,916

€ 3,912

€ 6,785

€ 463

€ 7,248

1.9x

21%

19%

$ 10

SMAs 2009-2011

2010

€ 1,859

€ 1,928

€ 3,318

€ 43

€ 3,360

1.7x

19%

18%

$ —

ASPF II

2023

$ 2,227

$ 635

$ 186

$ 583

$ 769

1.2x

NM

NM

$ 6

All Other Active Funds & Vehicles (9)

Various

$ 1,771

$ 726

$ 1,708

$ 2,434

1.4x

21%

18%

$ 27

Fully Realized Funds & Vehicles

Various

€ 4,084

€ 6,719

€ 14

€ 6,733

1.6x

19%

18%

$ —

Co-Investments

ACF IX

2023

$ 4,120

$ 1,488

$ 13

$ 1,670

$ 1,683

1.1x

NM

NM

$ 2

ACF VIII

2021

$ 3,614

$ 3,435

$ 197

$ 4,553

$ 4,750

1.4x

12%

9%

$ 43

ACF VIII - SMAs

2021

$ 1,079

$ 984

$ 69

$ 1,290

$ 1,359

1.4x

13%

11%

$ 11

ACF VII

2017

$ 1,688

$ 1,668

$ 1,161

$ 2,236

$ 3,396

2.0x

16%

13%

$ 62

ACF VII - SMAs

2017

€ 1,452

€ 1,364

€ 748

€ 1,840

€ 2,588

1.9x

15%

13%

$ 45

SMAs 2014-2016

2014

€ 1,274

€ 1,067

€ 2,264

€ 491

€ 2,755

2.6x

24%

22%

$ 9

SMAs 2012-2013

2012

€ 1,124

€ 1,012

€ 2,759

€ 129

€ 2,888

2.9x

28%

26%

$ 1

SMAs 2009-2010

2010

€ 1,475

€ 1,318

€ 3,392

€ 493

€ 3,885

2.9x

23%

21%

$ —

Strategic SMAs

Various

$ 4,404

$ 1,810

$ 5,819

$ 7,629

1.7x

17%

16%

$ 81

All Other Active Funds & Vehicles (9)

Various

€ 318

€ 239

€ 232

€ 471

1.5x

27%

25%

$ 2

Fully Realized Funds & Vehicles

Various

€ 5,736

€ 9,845

€ 2

€ 9,847

1.7x

15%

13%

$ —

Primary
Investments

SMAs 2024-2026

2024

€ 2,958

€ 83

€ 4

€ 81

€ 85

1.0x

NM

NM

$ —

SMAs 2021-2023

2021

€ 4,535

€ 1,444

€ 76

€ 1,613

€ 1,689

1.2x

NM

NM

$ —

SMAs 2018-2020

2018

$ 3,116

$ 2,526

$ 635

$ 3,039

$ 3,673

1.5x

14%

13%

$ 3

SMAs 2015-2017

2015

€ 2,501

€ 2,436

€ 2,636

€ 2,160

€ 4,796

2.0x

19%

19%

$ 9

SMAs 2012-2014

2012

€ 5,080

€ 5,678

€ 9,308

€ 3,122

€ 12,430

2.2x

18%

17%

$ 12

SMAs 2009-2011

2009

€ 4,877

€ 5,519

€ 10,250

€ 1,728

€ 11,977

2.2x

17%

17%

$ 1

SMAs 2006-2008

2005

€ 11,500

€ 12,820

€ 21,259

€ 1,208

€ 22,466

1.8x

10%

10%

$ —

SMAs 2003-2005

2003

€ 4,628

€ 4,879

€ 7,761

€ 123

€ 7,884

1.6x

10%

9%

$ —

All Other Active Funds & Vehicles (9)

Various

€ 1,739

€ 1,730

€ 239

€ 1,968

1.1x

3%

2%

$ —

Fully Realized Funds & Vehicles

Various

€ 4,740

€ 7,721

€ 25

€ 7,745

1.6x

12%

11%

$ —

TOTAL CARLYLE ALPINVEST (USD)(11)

$ 106,434

$ 127,767

$ 56,332

$ 184,100

1.7x

14%

13%

$ 627

(1) Includes private equity and mezzanine primary fund investments, secondary fund investments and co-investments
originated by AlpInvest. Excluded from the performance information shown are: (a) investments that were not originated
by AlpInvest (i.e., AlpInvest did not make the original investment decision or recommendation); (b) Direct Investments,
which was spun off from AlpInvest in 2005; (c) Carlyle AlpInvest Private Markets (CAPM); and (d) LP co-investment
vehicles managed by AlpInvest. As of June 30, 2025, these excluded portfolios amounted to approximately $11.6 billion of
AUM in the aggregate.
(2) Represents the original cost of investments since inception of the fund.
(3) To exclude the impact of FX, all foreign currency cash flows have been converted to the currency representing a majority
of the capital committed to the relevant fund at the reporting period spot rate.

118

Table of Contents

(4) Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried
interest.
(5) Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest,
divided by cumulative invested capital.
(6) Gross Internal Rate of Return (“Gross IRR”) represents the annualized IRR for the period indicated on Limited Partner
invested capital based on investment contributions, distributions and unrealized value of the underlying investments, before
management fees, expenses and carried interest at the AlpInvest level.
(7) Net Internal Rate of Return (“Net IRR”) represents the annualized IRR for the period indicated on Limited Partner invested
capital based on investment contributions, distributions and unrealized value of the underlying investments, after
management fees, expenses and carried interest. Fund level IRRs are based on aggregate Limited Partner cash flows, and
this blended return may differ from that of individual Limited Partners. As a result, certain funds may generate accrued
performance revenues with a blended Net IRR that is below the preferred return hurdle for that fund. 
(8) “ASF” stands for AlpInvest Secondaries Fund, “ACF” stands for AlpInvest Co-Investment Fund, and “SMAs” are
Separately Managed Accounts. “ASF - SMAs” and “ACF - SMAs” reflect the aggregated portfolios of investments held by
SMAs within the relevant strategy, which invest alongside the relevant ASF or ACF (as applicable). Strategic SMAs reflect
the aggregated portfolios of co-investments made by SMAs sourced from the SMA investor’s own private equity fund
investment portfolio. Other SMAs reflect the aggregated portfolios of investments within the relevant strategy that began
making investments in the corresponding time periods. Co-Investments SMAs 2014-2016 does not include two SMAs that
started in 2016 but invested a substantial majority alongside ACF VII. These two SMAs have instead been grouped with
ACF VII - SMAs. An SMA may pursue multiple investment strategies and make commitments over multiple years.
(9) Includes ASF VIII - SMAs, ACF IX - SMAs, AlpInvest Atom Fund, AlpInvest Atom Fund II, all mezzanine investment
portfolios, all ‘clean technology’ private equity investment portfolios, all strategic portfolio finance SMAs, all AlpInvest
senior portfolio lending SMAs, and any state-focused investment mandate portfolios.
(10) For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time
since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is considered meaningful but
is negative as of reporting period end.  
(11) For purposes of aggregation, funds that report in foreign currency have been converted to U.S. dollars at the reporting
period spot rate.  
(12) Represents the net accrued performance revenue balance/(giveback obligation) as of the current quarter end. Total Net
Accrued Carry excludes net accrued carry which was retained as part of the sale of MRE on April 1, 2021. There was no
net accrued carry balance for MRE as of June 30, 2025 .

Liquidity and Capital Resources
Historical Liquidity and Capital Resources
We have historically required limited capital resources to support the working capital and operating needs of our
business. Our management fees have largely covered our operating costs and all realized performance allocations, after
covering the related compensation, are available for distribution to stockholders. Approximately 95% – 97% of all capital
commitments to our funds are provided by our fund investors, with the remaining amount typically funded by Carlyle, our
senior Carlyle professionals, advisors, and other professionals. We may elect to invest additional amounts in funds focused on
new investment areas. We may also invest in or alongside our funds and may transfer those investments to newly developed
products.
Our Sources of Liquidity
We have multiple sources of liquidity to meet our capital needs, including cash on hand, annual cash flows, accumulated
earnings, cash we receive from our notes offerings, and funds from our senior revolving credit facility, which had $1.0 billion
of available capacity as of June 30, 2025 . Although we may consider other financings to invest in growing our business, we
believe these sources will be sufficient to fund our capital needs for at least the next twelve months. We believe we will meet
longer-term expected future cash requirements and obligations through a combination of existing cash and cash equivalent
balances, cash flow from operations, accumulated earnings, and amounts available for borrowing from our senior revolving
credit facility or other financings.

119

Table of Contents

Cash and cash equivalents . Cash and cash equivalents were approximately $1.3 billion at June 30, 2025 . However, a
portion of this cash is allocated for specific business purposes, including, but not limited to: (i) performance allocations and
incentive fee related cash that has been received but not yet distributed as performance allocations and incentive fee related
compensation and amounts owed to non-controlling interests, (ii) proceeds received from realized investments that are allocable
to non-controlling interests, and (iii) regulatory capital.
Corporate Treasury Investments . These investments represent investments in U.S. Treasury and government agency
obligations, commercial paper, certificates of deposit, other investment grade securities and other investments with original
maturities of greater than three months when purchased.
After deducting cash amounts allocated to the specific requirements mentioned above, the remaining cash, cash
equivalents, and corporate treasury investments (if any), was approximately $1.2 billion as of June 30, 2025 . This remaining
amount will be used towards our primary liquidity needs, as outlined in the next section. This amount does not take into
consideration ordinary course of business payables and reserves for specific business purposes.
Senior Revolving Credit Facility . The capacity under the amended and restated revolving credit facility is $1.0 billion ,
which was amended in May 2025 to extend the maturity date from April 29, 2027 to May 29, 2030 . The Company’s borrowing
capacity is subject to the ability of the financial institutions in the banking syndicate to fulfill their respective obligations under
the revolving credit facility. Principal amounts outstanding under the amended and restated revolving credit facility accrue
interest, at the option of the borrowers, either (a) at an alternate base rate plus an applicable margin not to exceed 0.50% per
annum, or (b) at SOFR (or similar benchmark rate for non-U.S. dollar borrowings) plus a 0.10% adjustment and an applicable
margin not to exceed 1.50% per annum ( 5.42% at June 30, 2025 ). As of June 30, 2025 , there were no amounts outstanding
under the senior revolving credit facility.
The senior revolving credit facility is unsecured. We are required to maintain management fee-earning assets (as defined
in the amended and restated senior revolving credit facility) of at least $156.9 billion and a total leverage ratio of less than 4.0 to
1.0, in each case, tested on a quarterly basis. Non-compliance with any of the financial or non-financial covenants without cure
or waiver would constitute an event of default under the senior revolving credit facility. An event of default resulting from a
breach of certain financial or non-financial covenants may result, at the option of the lenders, in an acceleration of the principal
and interest outstanding, and a termination of the senior revolving credit facility. The senior credit facility also contains other
customary events of default, including defaults based on events of bankruptcy and insolvency, nonpayment of principal, interest
or fees when due, breach of specified covenants, change in control, and material inaccuracy of representations and warranties.
Global Credit Revolving Credit Facility . Certain subsidiaries of the Company are parties to a revolving line of credit,
primarily intended to support certain lending activities within the Global Credit segment. As currently amended, the Global
Credit Revolving Credit Facility provides for a revolving line of credit with a capacity of $300 million , which matures in
September 2027, and a second revolving line of credit with a capacity of $200 million , which the Company intends to amend to
extend the maturity date from August 20, 2025 .
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 June 30, 2025 , there was no borrowing outstanding under the Global Credit Revolving Credit Facility.
CLO Borrowings . For certain of our CLOs, the Company finances a portion of its investment in the CLOs through the
proceeds received from term loans and other financing arrangements with financial institutions or other financing arrangements. 
The Company’s CLO borrowings were $299.3 million at June 30, 2025 . The CLO borrowings are secured by the Company’s
investments in the respective CLO, have a general unsecured interest in the Carlyle entity that manages the CLO and generally
do not have recourse to any other Carlyle entity. As of June 30, 2025 , $280.6 million of these borrowings are secured by
investments attributable to The Carlyle Group Inc. See Note 6 , Borrowings , to the condensed consolidated financial statements
included in this Quarterly Report on Form 10-Q for more information on our CLO borrowings.
Senior Notes . Certain indirect finance subsidiaries of the Company have issued senior notes, on which interest is payable
semi-annually, as discussed below. The senior notes are unsecured and unsubordinated obligations of the respective subsidiary
and are fully and unconditionally guaranteed, jointly and severally, by the Company and each of the Carlyle Holdings
partnerships. The indentures governing each of the senior notes contain customary covenants that, among other things, limit the
issuers’ and the guarantors’ ability, subject to certain exceptions, to incur indebtedness secured by liens on voting stock or
profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The notes also
contain customary events of default. All or a portion of the notes may be redeemed at our option, in whole or in part, at any

120

Table of Contents

time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the notes. If a change
of control repurchase event occurs, the notes are subject to repurchase at the repurchase price as set forth in the notes.
3.500% Senior Notes . In September 2019, Carlyle Finance Subsidiary L.L.C. issued $425.0 million of 3.500% senior
notes due September 19, 2029 at 99.841% of par.
5.625% Senior Notes . In March 2013, Carlyle Holdings II Finance L.L.C. issued $400.0 million of 5.625% senior notes
due March 30, 2043 at 99.583% of par. In March 2014, an additional $200.0 million of these notes were issued at 104.315% of
par and are treated as a single class with the already outstanding $400.0 million aggregate principal amount of these notes.
5.650% Senior Notes . In September 2018, Carlyle Finance L.L.C. issued $350.0 million of 5.650% senior notes due
September 15, 2048 at 99.914% of par.
Subordinated Notes . In May and June 2021, Carlyle Finance L.L.C. issued $500.0 million aggregate principal amount of
4.625% subordinated notes due May 15, 2061. The Subordinated Notes are unsecured and subordinated obligations of the issuer
and are fully and unconditionally guaranteed, jointly and severally, on a subordinated basis, by the Company, each of the
Carlyle Holdings partnerships, and CG Subsidiary Holdings L.L.C., an indirect subsidiary of the Company. The indentures
governing the Subordinated Notes contain customary covenants that, among other things, limit the issuers’ and the guarantors’
ability, subject to certain exceptions, to incur indebtedness ranking on a parity with the Subordinated Notes or indebtedness
ranking junior to the Subordinated Notes secured by liens on voting stock or profit participating equity interests of their
subsidiaries or merge, consolidate or sell, transfer or lease all or substantially all of their assets. The Subordinated Notes also
contain customary events of default. All or a portion of the notes may be redeemed at our option, in whole or in part, at any
time and from time to time on or after June 15, 2026, prior to their stated maturity, at a redemption price equal to their principal
amount plus any accrued and unpaid interest to, but excluding, the date of redemption. If interest due on the Subordinated Notes
is deemed to no longer be deductible in the U.S., a “Tax Redemption Event,” the Subordinated Notes may be redeemed, in
whole, but not in part, within 120 days of the occurrence of such event at a redemption price equal to their principal amount
plus accrued and unpaid interest to, but excluding, the date of redemption. In addition, the Subordinated Notes may be
redeemed, in whole, but not in part, at any time prior to May 15, 2026, within 90 days of the rating agencies determining that
the Subordinated Notes should no longer receive partial equity treatment pursuant to the rating agency’s criteria, a “rating
agency event,” at a redemption price equal to 102% of their principal amount plus any accrued and unpaid interest to, but
excluding, the date of redemption.
Obligations of CLOs . Loans payable of the Consolidated Funds primarily comprise amounts due to holders of debt
securities issued by the CLOs. We are not liable for any loans payable of the CLOs. Loans payable of the CLOs are
collateralized by the assets held by the CLOs and the assets of one CLO may not be used to satisfy the liabilities of another.
This collateral consists of cash and cash equivalents, corporate loans, corporate bonds and other securities.
Realized Performance Allocation Revenues . Another source of liquidity we may use to meet our capital needs is the
realized performance allocation revenues generated by our investment funds. Performance allocations are generally realized
when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return.
For certain funds, performance allocations are realized once all invested capital and expenses have been returned to the fund’s
investors and the fund’s cumulative returns are in excess of the preferred return. Incentive fees earned on our CLO vehicles
generally are paid upon the dissolution of such vehicles.

121

Table of Contents

Our accrued performance allocations by segment as of June 30, 2025 , gross and net of accrued giveback obligations, are
set forth below:

Accrued
Performance
Allocations (1)

Accrued
Giveback
Obligation

Net Accrued
Performance
Revenues

 

(Dollars in millions)

Global Private Equity

$ 5,153.4

$ (19.1)

$ 5,134.3

Global Credit

632.9

(25.5)

607.4

Carlyle AlpInvest

1,812.5

—

1,812.5

Total

$ 7,598.8

$ (44.6)

$ 7,554.2

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

326.4

Less:  Accrued performance allocation-related compensation

(5,049.3)

Plus:  Receivable for giveback obligations from current and former employees

11.5

Less:  Deferred taxes on certain foreign accrued performance allocations

(20.9)

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

(0.4)

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

11.8

Net accrued performance revenues before timing differences

2,833.3

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

32.7

Net accrued performance revenues attributable to The Carlyle Group Inc.

$ 2,866.0

(1) Accrued incentive fees are excluded from net accrued performance revenues.
(2) Accrued performance allocations from NGP funds are presented as principal equity method investments in the condensed
consolidated balance sheets.
The net accrued performance revenues attributable to The Carlyle Group Inc., excluding realized amounts, related to our
carry funds and our other vehicles as of June 30, 2025 , as well as the carry fund appreciation (depreciation), is set forth below
by segment (Dollars in millions):

Carry Fund Appreciation/(Depreciation) (1)

Net Accrued
Performance
Revenues

Quarter-to-Date

Year-to-Date

Last Twelve
Months

Q2 2024

Q2 2025

Q2 2024

Q2 2025

Q2 2024

Q2 2025

Overall Carry Fund Appreciation/(Depreciation)

1 %

2 %

3 %

3 %

7 %

8 %

Global Private Equity:

2 %

2 %

3 %

3 %

5 %

7 %

$ 2,004.4

Corporate Private Equity

2 %

1 %

3 %

3 %

5 %

8 %

1,599.0

Real Estate

1 %

1 %

3 %

2 %

1 %

5 %

114.9

Infrastructure & Natural Resources

3 %

4 %

5 %

7 %

9 %

10 %

290.5

Global Credit Carry Funds

3 %

3 %

5 %

8 %

13 %

15 %

234.4

Carlyle AlpInvest Carry Funds

(1) %

2 %

4 %

2 %

8 %

7 %

627.2

Net Accrued Performance Revenues

$ 2,866.0

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

122

Table of Contents

Investments as of June 30, 2025 consist of the following:

Investments in
Carlyle Funds

Investments
in NGP (1)

Total

(Dollars in millions)

Investments, excluding performance allocations

$ 3,011.9

$ 592.4

$ 3,604.3

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

(379.8)

—

(379.8)

Plus: Investments in Consolidated Funds, eliminated in consolidation

675.4

—

675.4

Less: Strategic equity method investments in NGP Management

—

(265.7)

(265.7)

Less: Investment in NGP general partners - accrued performance allocations

—

(326.7)

(326.7)

Total investments attributable to The Carlyle Group Inc.

$ 3,307.5

$ —

$ 3,307.5

(1) Strategic equity method investment in NGP Management and investments in NGP general partners - accrued performance allocations.
See Note 4 , Investments , to our condensed consolidated financial statements.
Our investments as of June 30, 2025 can be further attributed as follows (Dollars in millions):

Investments in Carlyle Funds, excluding CLOs:

Global Private Equity funds (1)

$ 1,233.2

Global Credit funds (2)

1,321.9

Carlyle AlpInvest funds

295.2

Total investments in Carlyle Funds, excluding CLOs

2,850.3

Investments in CLOs

382.8

Other investments

74.4

Total investments attributable to The Carlyle Group Inc.

3,307.5

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

(280.6)

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

$ 3,026.9

(1) Excludes our strategic equity method investment in NGP Management and investments in NGP general partners - accrued
performance allocations.
(2) Includes the Company’s indirect investment in Fortitude through Carlyle FRL, a Carlyle-affiliated investment fund, as discussed in
Note 4 , Investments , to the condensed consolidated financial statements. This investment had a carrying value of $739.1 million as
of June 30, 2025 .
(3) Of the $299.3 million in total CLO borrowings as of June 30, 2025 and as disclosed in Note 6 , Borrowings , to the condensed
consolidated financial statements, $280.6 million are collateralized by investments attributable to The Carlyle Group Inc. The
remaining $18.7 million in total CLO borrowings are collateralized by investments attributable to non-controlling interests.
Our Liquidity Needs
We generally use our working capital and cash flows to invest in growth initiatives, service our debt, fund the working
capital needs of our business and investment funds and return capital to our common stockholders in the form of dividends or
stock repurchases.
In the future, we expect that our primary liquidity needs will be to:  
• provide capital to facilitate the growth of our existing business lines;
• provide capital to facilitate our expansion into new, complementary business lines, including acquisitions;
• pay operating expenses, including compensation and compliance costs and other obligations as they arise;
• fund costs of litigation and contingencies, including related legal costs;
• fund the capital investments of Carlyle in our funds;
• fund capital expenditures;
• repay borrowings and related interest costs and expenses;

123

Table of Contents

• pay earn-outs and contingent cash consideration associated with our acquisitions and strategic investments;
• pay income taxes, including corporate income taxes;
• pay dividends to our common stockholders in accordance with our dividend policy;
• repurchase our common stock and pay any associated taxes; and
• settle tax withholding obligations in connection with net share settlements of equity-based awards.
Common Stockholder Dividends . Under our dividend policy for our common stock, our intention is to pay dividends to
holders of our common stock in an amount of $0.35 per common share on a quarterly basis ($1.40 annually). For U.S. federal
income tax purposes, any dividends we pay generally will be treated as qualified dividend income (generally taxable to U.S.
individual stockholders at capital gain rates) paid by a domestic corporation to the extent paid out of our current or accumulated
earnings and profits, as determined for U.S. federal income tax purposes, with any excess dividends treated as return of capital
to the extent of the stockholder’s basis. The declaration and payment of dividends to holders of our common stock will be at the
sole discretion of our Board of Directors and in compliance with applicable law, and our dividend policy may be changed at any
time.
With respect to dividend year 2025 , the Board of Directors has declared a dividend to common stockholders totaling
$252.9 million , or $0.70 per share, consisting of the following:

Common Stock Dividends - Dividend Year 2025

Quarter

Dividend per
Common Share

Dividend to
Common
Stockholders

Record Date

Payment Date

(Dollars in millions, except per share data)

Q1 2025

$ 0.35

$ 126.3

May 19, 2025

May 27, 2025

Q2 2025

0.35

126.6

August 18, 2025

August 28, 2025

Total

$ 0.70

$ 252.9

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

Common Stock Dividends - Dividend Year 2024

Quarter

Dividend per
Common Share

Dividend to
Common
Stockholders

Record Date

Payment Date

(Dollars in millions, except per share data)

Q1 2024

$ 0.35

$ 125.6

May 14, 2024

May 21, 2024

Q2 2024

0.35

125.5

August 16, 2024

August 26, 2024

Q3 2024

0.35

125.2

November 18, 2024

November 25, 2024

Q4 2024

0.35

126.4

February 21, 2025

February 28, 2025

Total

$ 1.40

$ 502.7

Dividends to common stockholders paid during the six months ended June 30, 2025 totaled $252.7 million , including the
amount paid in February 2025 of $0.35 per common share in respect of the fourth quarter of 2024. Dividends to common
stockholders paid during the six months ended June 30, 2024 totaled $252.3 million , including the amount paid in March 2024
of $0.35 per common share in respect of the fourth quarter of 2023.
Fund Commitments . Generally, 3% – 5% of all capital commitments to our investment funds are made by Carlyle, our
senior Carlyle professionals, advisors, and other professionals. Carlyle will generally commit up to 1% of capital commitments
related to our carry funds, although we may elect to invest additional amounts in funds focused on new investment areas. We
may, from time to time, exercise our right to purchase additional interests in our investment funds that become available in the
ordinary course of their operations. We expect our senior Carlyle professionals and employees to continue to make significant
capital contributions to our funds based on their existing commitments, and to make capital commitments to future funds
consistent with the level of their historical commitments. We also intend to make investments in our open-end funds and our

124

Table of Contents