10-Q – 2025-11-07 – cg-20250930.htm

partnership agreement. The Company recognizes revenues attributable to performance allocations based upon the amount that
would be due pursuant to the fund partnership agreement at each period end as if the funds were terminated at that date.
Accordingly, the amount recognized as investment income for performance allocations reflects the Company’s share of the
gains and losses of the associated funds’ underlying investments measured at their then-current fair values relative to the fair
values as of the end of the prior period. Because of the inherent uncertainty, these estimated values may differ significantly
from the values that would have been used had a ready market for the investments existed, and it is reasonably possible that the
difference could be material.
Carried interest is ultimately realized when: (i) an underlying investment is profitably disposed of, (ii) certain costs borne
by the limited partner investors have been reimbursed, (iii) the fund’s cumulative returns are in excess of the preferred return,
and (iv) the Company has decided to collect carry rather than return additional capital to limited partner investors. Realized
carried interest may be required to be returned by the Company in future periods if the fund’s investment values decline below
certain levels. When the fair value of a fund’s investments remains constant or falls below certain return hurdles, previously
recognized performance allocations are reversed. In all cases, each fund is considered separately in this regard, and for a given
fund, performance allocations can never be negative over the life of a fund. If upon a hypothetical liquidation of a fund’s
investments at their then-current fair values, previously recognized and distributed carried interest would be required to be
returned, a liability is established for the potential giveback obligation. As of September 30, 2025 and December 31, 2024 , the
Company accrued $ 44.6 million and $ 44.0 million , respectively, for giveback obligations.
Principal investment income (loss) is realized when the Company redeems all or a portion of its investment or when the
Company receives or is due cash income, such as dividends or distributions. Unrealized principal investment income (loss)
results from the Company’s proportionate share of the investee’s unrealized earnings, including changes in the fair value of the
underlying investment, as well as the reversal of unrealized gain (loss) at the time an investment is realized. As it relates to the
Company’s investments in NGP (see Note 4 , Investments ), principal investment income includes the related amortization of the
basis difference between the Company’s carrying value of its investment and the Company’s share of underlying net assets of
the investee, as well as the compensation expense associated with compensatory arrangements provided by the Company to
employees of its equity method investee, and impairment charges.
Interest Income
Interest income is recognized when earned. For debt securities representing non-investment grade beneficial interests in
securitizations, the effective yield is determined based on the estimated cash flows of the security. Changes in the effective
yield of these securities due to changes in estimated cash flows are recognized on a prospective basis as adjustments to interest
income in future periods. Interest income earned by the Company is included in interest and other income in the accompanying
condensed consolidated statements of operations. Interest income of the Consolidated Funds was $ 146.9 million and $ 158.0
million for the three months ended September 30, 2025 and 2024 , respectively, and $ 412.4 million and $ 449.9 million for the
nine months ended September 30, 2025 and 2024 , respectively, and is included in interest and other income of Consolidated
Funds in the accompanying condensed consolidated statements of operations.
Credit Losses
The Company measures all expected credit losses for financial assets held at the reporting date in accordance with ASC
326, Financial Instruments—Credit Losses , based on historical experience, current conditions, and reasonable and supportable
forecasts. The Company assesses the collection risk characteristics of the outstanding amounts in its due from affiliates balance
into the following pools of receivables:
• Reimbursable fund expenses receivables,
• Management fee receivables,
• Incentive fee receivables,
• Transaction fee receivables,
• Portfolio fee receivables, and
• Notes receivable.
The Company generally utilizes either historical credit loss information or discounted cash flows to calculate expected
credit losses for each pool. The Company’s receivables are predominantly with its investment funds, which have low risk of
credit loss based on the Company’s historical experience. Historical credit loss data may be adjusted for current conditions and

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

reasonable and supportable forecasts, including the Company’s expectation of near-term realization based on the liquidity of the
affiliated investment funds.
Compensation and Benefits
Cash-Based Compensation and Benefits – Cash-based compensation and benefits includes salaries, bonuses
(discretionary awards and guaranteed amounts), performance payment arrangements, and benefits paid and payable to Carlyle
employees. Bonuses are accrued over the service period to which they relate.
Equity-Based Compensation – Compensation expense relating to the issuance of equity-based awards is measured at fair
value on the grant date. The compensation expense for awards that vest over a future service period is recognized over the
relevant service period on a straight-line basis. The compensation expense for awards that do not require future service is
recognized immediately. Cash settled equity-based awards are classified as liabilities and are re-measured at the end of each
reporting period. The compensation expense for awards that contain performance conditions is recognized when it is probable
that the performance conditions will be achieved. The compensation expense for awards that contain market conditions is based
on a grant-date fair value that factors in the probability that the market conditions will be achieved and is recognized over the
requisite service period on a straight-line basis.
Certain equity-based awards contain dividend-equivalent rights, which are subject to the same terms and conditions,
including with respect to vesting and settlement, that apply to the related award. Dividend-equivalents are accounted for as a
reclassification from retained earnings to additional paid-in capital at the time dividends are declared and do not result in
incremental compensation expense.
Equity-based awards issued to non-employees are generally recognized as general, administrative and other expenses,
except to the extent they are recognized as part of the Company’s equity method earnings because they are issued to employees
of equity method investees.
The Company recognizes equity-based award forfeitures in the period they occur as a reversal of previously recognized
compensation expense for awards that vest based on service and/or performance conditions. The reduction in compensation
expense is determined based on the specific awards forfeited during that period. Furthermore, the Company recognizes all
excess tax benefits and deficiencies as income tax benefit or expense in the condensed consolidated statements of operations.
For awards with a market condition (e.g., achievement of certain stock price hurdles) that are forfeited due to the market
condition not being achieved, the related equity-based compensation expense is not reversed.
Performance Allocations and Incentive Fee Related Compensation – A portion of the performance allocations and
incentive fees and certain other interests earned is due to employees and advisors of the Company. These amounts are
accounted for as profit sharing interests in compensation expense in a systematic and rational manner in conjunction with the
recognition of the related performance allocations and incentive fee revenue and, until paid, are recognized as a component of
the accrued compensation and benefits liability. The liability is measured assuming the hypothetical liquidation of the
associated funds’ underlying investments as of the measurement date. Accordingly, upon a reversal of performance allocations
or incentive fee revenue, the related compensation expense, if any, is also reversed. As any vesting requirement is accelerated
upon realization, the service period is not considered substantive when recording the liability based on the hypothetical
liquidation value. As of September 30, 2025 and December 31, 2024 , the Company recorded a liability of $ 4.7  billion and
$ 4.8  billion , respectively, related to the portion of accrued performance allocations and incentive fees due to employees and
advisors, which was included in accrued compensation and benefits in the accompanying condensed consolidated balance
sheets.
Income Taxes
The Carlyle Group Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S. federal, state, and
local corporate income taxes. Tax positions taken by the Company are subject to periodic audit by U.S. federal, state, local, and
foreign taxing authorities. The interim provision for income taxes is calculated using the discrete effective tax rate method as
allowed by ASC 740, Accounting for Income Taxes . The discrete method is applied when the application of the estimated
annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. In addition, the
discrete method treats the year-to-date period as if it was the annual period and determines the income tax expense or benefit on
that basis.

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred
tax assets and liabilities for the expected future consequences of events that have been included in the financial statements or
tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial
statement reporting and the tax basis of assets and liabilities using enacted tax rates in effect for the period in which the
difference is expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the
period of the change in the provision for income taxes. Further, deferred tax assets are recognized for the expected realization of
available net operating loss and tax credit carry forwards. A valuation allowance is recorded on the Company’s gross deferred
tax assets when it is “more likely than not” that such asset will not be realized. When evaluating the realizability of the
Company’s deferred tax assets, all evidence, both positive and negative, is evaluated. Items considered in this analysis include
the ability to carry back losses, the reversal of temporary differences, tax planning strategies, and expectations of future
earnings. The Company accounts for the valuation allowance assessment on its deferred tax assets and without regard to the
Company’s potential future corporate alternative minimum tax (“CAMT”) status or global minimum tax status under the Pillar
Two Global Anti-Base Erosion (“GloBE”) model rules of the Organization for Economic Co-operation and Development
(“OECD”). Therefore, the Company accounts for CAMT and the global minimum tax in the period as incurred. Lastly, the
Company accounts for the tax on global intangible low-taxed income (“GILTI”) as incurred and therefore has not recorded
deferred taxes related to GILTI on its foreign subsidiaries.
Under U.S. GAAP for income taxes, the amount of tax benefit to be recognized is the amount of benefit that is “more
likely than not” to be sustained upon examination. The Company analyzes its tax filing positions in all of the U.S. federal, state,
local, and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these
jurisdictions. If, based on this analysis, the Company determines that uncertainties in tax positions exist, a liability is
established, which is included in accounts payable, accrued expenses and other liabilities in the condensed consolidated
financial statements. The Company recognizes accrued interest and penalties related to unrecognized tax positions in the
provision for income taxes. If recognized, the entire amount of unrecognized tax positions would be recorded as a reduction in
the provision for income taxes.
Non-controlling Interests
Non-controlling interests in consolidated entities represent the component of equity in consolidated entities held by third-
party investors. These interests are adjusted for general partner allocations which occur during the reporting period. Any change
in ownership of a subsidiary while the controlling financial interest is retained is accounted for as an equity transaction between
the controlling and non-controlling interests. Transaction costs incurred in connection with such changes in ownership of a
subsidiary are recorded as a direct charge to equity.
Earnings Per Common Share
The Company computes earnings per common share in accordance with ASC 260, Earnings Per Share . Basic earnings
per common share is calculated by dividing net income (loss) attributable to the common shares of the Company by the
weighted-average number of common shares outstanding for the period. Diluted earnings per common share reflects the
assumed conversion of all dilutive securities. The Company applies the treasury stock method to determine the dilutive
weighted-average common shares outstanding for certain equity-based compensation awards. For certain equity-based
compensation awards that contain performance or market conditions, the number of contingently issuable common shares is
included in diluted earnings per common share based on the number of common shares, if any, that would be issuable under the
terms of the awards if the end of the reporting period were the end of the contingency period, if the result is dilutive.
Fair Value of Financial Instruments
The underlying entities that the Company manages and invests in (and in certain cases, consolidates) are primarily
investment companies which account for their investments at estimated fair value.
The fair value measurement accounting guidance under ASC 820, Fair Value Measurement , establishes a hierarchical
disclosure framework which ranks the observability of market price inputs used in measuring financial instruments at fair value.
The observability of inputs is impacted by a number of factors, including the type of financial instrument, the characteristics
specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions
between market participants. Financial instruments with readily available quoted prices, or for which fair value can be measured

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

from quoted prices in active markets, will generally have a higher degree of market price observability and a lesser degree of
judgment applied in determining fair value.
Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs
used in the determination of fair values, as follows:
Level I – inputs to the valuation methodology are quoted prices available in active markets for identical
instruments as of the reporting date. The type of financial instruments in this category include unrestricted
securities, such as equities and derivatives, listed in active markets. The Company does not adjust the quoted price
for these instruments, even in situations where the Company holds a large position and a sale could reasonably
impact the quoted price.
Level II – inputs to the valuation methodology are other than quoted prices in active markets, which are either
directly or indirectly observable as of the reporting date. The types of financial instruments in this category
include less liquid and restricted securities listed in active markets, securities traded in other than active markets,
government and agency securities, and certain over-the-counter derivatives where the fair value is based on
observable inputs.
Level III – inputs to the valuation methodology are unobservable and significant to overall fair value
measurement. The inputs into the determination of fair value require significant management judgment or
estimation. The types of financial instruments in this category include investments in privately-held entities, non-
investment grade residual interests in securitizations, collateralized loan obligations, and certain over-the-counter
derivatives where the fair value is based on unobservable inputs. 
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such
cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is
based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the
significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to
the financial instrument.
In certain cases, debt and equity securities (including corporate treasury investments) are valued on the basis of prices
from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the
value of a particular investment, pricing services may use certain information with respect to transactions in such investments,
quotations from dealers, pricing matrices, market transactions in comparable investments, and various relationships between
investments.
In the absence of observable market prices, the Company values its investments and its funds’ investments using
valuation methodologies applied on a consistent basis. For some investments little market activity may exist. Management’s
determination of fair value is then based on the best information available in the circumstances and may incorporate
management’s own assumptions and involve a significant degree of judgment, taking into consideration a combination of
internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks. Investments for
which market prices are not observable include private investments in the equity and debt of operating companies and real
assets, CLO investments and CLO loans payable and fund investments. The valuation technique for each of these investments is
described below:
Investments in Operating Companies and Real Assets – The fair values of private investments in operating companies
and real assets are generally determined by reference to the income approach (including the discounted cash flow
method and the income capitalization method) and the market approach (including the comparable publicly traded
company method and the comparable transaction method). Valuations under these approaches are typically derived by
reference to investment-specific inputs (such as projected cash flows, earnings before interest, taxes, depreciation and
amortization (“EBITDA”), and net operating income) combined with market-based inputs (such as discount rates,
EBITDA multiples and capitalization rates). In many cases, the investment-specific inputs are unaudited at the time
received. Management may also adjust the market-based inputs to account for differences between the subject
investment and the companies, assets or investments used to derive the market-based inputs. Adjustments to
observable valuation measures are frequently made upon the initial investment to calibrate the initial investment
valuation to industry observable inputs. Such adjustments are made to align the investment to observable industry

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

inputs for differences in size, profitability, projected growth rates, geography, capital structure, and other factors as
applicable. The adjustments are then reviewed with each subsequent valuation to assess how the investment has
evolved relative to the observable inputs. Additionally, the investment may be subject to certain specific risks and/or
development milestones which are also taken into account in the valuation assessment. Option pricing models and
similar tools may also be considered but do not currently drive a significant portion of operating company or real asset
valuations and are used primarily to value warrants, derivatives, certain restrictions, and other atypical investment
instruments.
Credit-Oriented Investments – The fair values of credit-oriented investments (including corporate treasury
investments) are generally determined on the basis of prices between market participants provided by reputable dealers
or pricing services. In determining the value of a particular investment, pricing services may use certain information
with respect to transactions in such investments, quotations from dealers, pricing matrices, market transactions in
comparable investments, and various relationships between investments. Specifically, for investments in distressed
debt and corporate loans and bonds, the fair values are generally determined by valuations of comparable investments.
In some instances, the Company may utilize other valuation techniques, including the discounted cash flow method.
CLO Investments and CLO Loans Payable – The Company measures the financial liabilities of its consolidated CLOs
based on the fair value of the financial assets of its consolidated CLOs, as the Company believes the fair value of the
financial assets are more observable. The fair values of the CLO loan and bond assets are primarily based on
quotations from reputable dealers or relevant pricing services. In situations where valuation quotations are unavailable,
the assets are valued based on similar securities, market index changes, and other factors. The Company performs
certain procedures to ensure the reliability of the quotations from pricing services for its CLO assets and CLO
structured asset positions, which generally includes corroborating prices with a discounted cash flow analysis.
Generally, the loan and bond assets of the CLOs are not publicly traded and are classified as Level III. The fair values
of the CLO structured asset positions are determined based on both discounted cash flow analyses and third party
quotes. Those analyses consider the position size, liquidity, current financial condition of the CLOs, the third party
financing environment, reinvestment rates, recovery lags, discount rates, and default forecasts and are compared to
broker quotations from market makers and third party dealers. 
The Company measures the CLO loan payables held by third party beneficial interest holders on the basis of the fair
value of the financial assets of the CLO and the beneficial interests held by the Company. The Company continues to
measure the CLO loans payable that it holds at fair value based on relevant pricing services or discounted cash flow
analyses, as described above.
Fund Investments – The Company’s primary and secondary investments in external funds are generally valued as its
proportionate share of the most recent net asset value provided by the third-party general partners of the underlying
fund partnerships, adjusted for subsequent cash flows received from or distributed to the underlying fund partnerships.
The Company also adjusts for any changes in the market prices of public securities held by the underlying fund
partnerships and may also apply a market adjustment to reflect the estimated change in the fair value of the underlying
fund partnerships’ non-public investments from the date of the most recent net asset value provided by the third-party
general partners.
Investment professionals with responsibility for the underlying investments are responsible for preparing the investment
valuations pursuant to the policies, methodologies, and templates prepared by the Company’s valuation group, which is a team
made up of dedicated valuation professionals reporting to the Company’s Chief Accounting Officer. The valuation group is
responsible for maintaining the Company’s valuation policy and related guidance, templates, and systems that are designed to
be consistent with the guidance found in ASC 820. These valuations, inputs, and preliminary conclusions are reviewed by the
fund management teams. The valuations are then reviewed and approved by the respective fund valuation subcommittees,
which include the respective fund head(s), segment head, chief financial officer, and chief accounting officer, as well as
members of the valuation group. The valuation group compiles the aggregate results and significant matters and presents them
for review and approval by the global valuation committee, which includes the Company’s Chief Executive Officer, Chief Risk
Officer, Chief Financial Officer, Chief Accounting Officer, and the business segment heads, and is observed by the Chief
Compliance Officer, the Chief Audit Executive, the Company’s Audit Committee, and others. Additionally, each quarter a
sample of valuations are reviewed by external valuation firms. Valuations of the funds’ investments are used in the calculation
of accrued performance allocations, or “carried interest.”

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Investments, at Fair Value
Investments include (i) the Company’s ownership interests (typically general partner interests) in the Funds, including the
Company’s investment in Fortitude held through Carlyle FRL (which are accounted for as equity method investments), (ii) the
Company’s investment in NGP (which is accounted for as an equity method investment), (iii) the investments held by the
Consolidated Funds (which are presented at fair value in the Company’s condensed consolidated financial statements), and (iv)
certain credit-oriented investments, including investments in the CLOs and the common shares of Carlyle Secured Lending,
Inc. (“CGBD,” see Note 4 , Investments , and Note 9 , Related Party Transactions , for more information), which are accounted
for as trading securities.
Upon the sale of a security or other investment, the realized net gain or loss is computed on a weighted average cost
basis, with the exception of the investments held by the CLOs, which compute the realized net gain or loss on a first in, first out
basis. Securities transactions are recorded on a trade date basis.
Equity Method Investments
The Company accounts for all investments in which it has or is otherwise presumed to have significant influence,
including investments in the unconsolidated Funds and the Company’s investment in NGP, using the equity method of
accounting. The carrying value of equity method investments is determined based on amounts invested by the Company,
adjusted for the equity in earnings or losses of the investee (including performance allocations) allocated based on the
respective partnership agreement, less distributions received. The Company evaluates its equity method investments for
impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be
recoverable.
Cash and Cash Equivalents
Cash and cash equivalents include cash held at banks and cash held for distributions, including investments with original
maturities of less than three months when purchased. The Company is subject to credit risk should a financial institution be
unable to fulfil its obligations and if balances held at a financial institution exceed insured limits.
Cash and Cash Equivalents Held at Consolidated Funds
Cash and cash equivalents held at Consolidated Funds consists of cash and cash equivalents held by the Consolidated
Funds, which, although not legally restricted, is not available to fund the general liquidity needs of the Company.
Restricted Cash
Restricted cash primarily represents cash held by the Company’s foreign subsidiaries due to certain government
regulatory capital requirements as well as certain amounts held on behalf of Carlyle funds. As of September 30, 2025 and
December 31, 2024 , the Company held restricted cash of $ 4.7 million and $ 0.5 million , respectively, which are included in
Deposits and other in the condensed consolidated balance sheets.
Corporate Treasury Investments
Corporate treasury investments represent investments in U.S. Treasury and government agency obligations, commercial
paper, certificates of deposit, other investment grade securities and other investments with original maturities of greater than
three months when purchased. These investments are accounted for as trading securities in which changes in the fair value of
each investment are recorded through investment income (loss). Any interest earned on debt investments is recorded through
interest and other income.
Derivative Instruments
The Company uses derivative instruments primarily to reduce its exposure to changes in foreign currency exchange rates. 
Derivative instruments are recognized at fair value in the condensed consolidated balance sheets with changes in fair value
recognized in the condensed consolidated statements of operations for all derivatives not designated as hedging instruments.

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Securities Sold Under Agreements to Repurchase
As it relates to certain European CLOs sponsored by the Company, securities sold under agreements to repurchase
(“Repurchase Agreements”) are accounted for as collateralized financing transactions. The Company provides securities to
counterparties to collateralize amounts borrowed under Repurchase Agreements on terms that permit the counterparties to
repledge or resell the securities to others. As of September 30, 2025 , $ 325.9  million of securities were transferred to
counterparties under Repurchase Agreements and are included within investments in the condensed consolidated balance
sheets. Cash received under Repurchase Agreements is recognized as a liability within debt obligations in the condensed
consolidated balance sheets. See Note 6 , Borrowings , for additional information.
Fixed Assets
Fixed assets consist of furniture, fixtures and equipment, leasehold improvements, computer hardware and software, and
fractional shares in corporate aircraft, and are stated at cost, less accumulated depreciation and amortization. Depreciation is
recognized on a straight-line method over the assets’ estimated useful lives, which for leasehold improvements are the lesser of
the lease terms or the life of the asset, and three to seven years for other fixed assets. Fixed assets are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Leases
The Company accounts for its leases in accordance with ASC 842, Leases , and recognizes a lease liability and right-of-
use (“ROU”) asset in the condensed consolidated balance sheets for contracts that it determines are leases or contain a lease.
The Company’s leases primarily consist of operating leases for office space in various countries around the world. The
Company also has operating leases for office equipment and vehicles, which are not significant. The Company does not
separate non-lease components from lease components for its office space and equipment operating leases and instead accounts
for each separate lease component and its associated non-lease component as a single lease component. ROU assets represent
the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to
make lease payments arising from the leases. The Company’s ROU assets and lease liabilities are recognized at lease
commencement based on the present value of lease payments over the lease term. Lease ROU assets include initial direct costs
incurred by the Company and are presented net of deferred rent and lease incentives. Absent an implicit interest rate in the
lease, the Company uses its incremental borrowing rate, adjusted for the effects of collateralization, based on the information
available at commencement in determining the present value of lease payments. The Company’s lease terms may include
options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. Lease
expense for lease payments is recognized on a straight-line basis over the lease term. Lease ROU assets are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.
The Company does not recognize a lease liability or ROU asset on the balance sheet for short-term leases. Instead, the
Company recognizes short-term lease payments as an expense on a straight-line basis over the lease term. A short-term lease is
defined as a lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to
purchase the underlying asset that the lessee is reasonably certain to exercise. When determining whether a lease qualifies as a
short-term lease, the Company evaluates the lease term and the purchase option in the same manner as all other leases.
ROU assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
of an asset may not be recoverable.
Intangible Assets and Goodwill
The Company’s intangible assets consist of acquired contractual rights to earn future fee income, including management
and advisory fees, customer relationships, and acquired trademarks. Finite-lived intangible assets are amortized over their
estimated useful lives, which range from four to eight years , and are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of the asset may not be recoverable.
Goodwill represents the excess of cost over the identifiable net assets of businesses acquired and is recorded in the
functional currency of the acquired entity. Goodwill is recognized as an asset and is reviewed for impairment annually as of
October 1 and between annual tests when events and circumstances indicate that impairment may have occurred.

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Deferred Revenue
Deferred revenue represents management fees and other revenue received prior to the balance sheet date, which has not
yet been earned. Deferred revenue also includes transaction and portfolio advisory fees received by the Company that are
required to offset fund management fees pursuant to the related fund agreements.
Accumulated Other Comprehensive Income (Loss)
The Company’s accumulated other comprehensive income (loss) comprise foreign currency translation adjustments and
gains and losses on defined benefit plans sponsored by AlpInvest. The components of accumulated other comprehensive
income (loss) as of September 30, 2025 and December 31, 2024 were as follows:

 

As of

 

September 30,
2025

December 31,
2024

 

(Dollars in millions)

Currency translation adjustments

$ ( 192.4 )

$ ( 327.9 )

Unrealized losses on defined benefit plans

( 4.1 )

( 1.9 )

Total

$ ( 196.5 )

$ ( 329.8 )

Foreign Currency Translation
Non-U.S. dollar denominated assets and liabilities are translated at period-end rates of exchange, and the condensed
consolidated statements of operations are translated at rates of exchange in effect throughout the period. Foreign currency gains
(losses) resulting from transactions outside of the functional currency of an entity of $ 2.9  million and $( 10.2 ) million for the
three months ended September 30, 2025 and 2024 , respectively, and $( 22.2 ) million and $( 9.2 ) million for the nine months
ended September 30, 2025 and 2024 , respectively, are included in general, administrative and other expenses in the condensed
consolidated statements of operations.
Recent Accounting Pronouncements
The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial
Accounting Standards Board (“FASB”). ASUs not listed below were assessed and either determined to be not applicable or
expected to have minimal impact on the Company’s condensed consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosure , which requires disclosure
of disaggregated information about a reporting entity’s effective tax rate reconciliation, using both percentages and reporting
currency amounts for specific standardized categories, as well as disclosure of income taxes paid disaggregated by jurisdiction.
The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company
does not expect the adoption of this guidance to have a material impact on the Company’s condensed consolidated financial
statements.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , which requires
disaggregated disclosures of certain categories of expenses on an annual and interim basis including employee compensation,
depreciation, and intangible asset amortization for each income statement line item that contains those expenses. The guidance
is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The
Company is currently evaluating the impact of adopting this guidance on its condensed consolidated financial statements.

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

3. Fair Value Measurement
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the
fair value hierarchy levels as disclosed in Note 2 , Summary of Significant Accounting Policies , as of September 30, 2025 :

(Dollars in millions)

Level I

Level II

Level III

Total

Assets

Investments of Consolidated Funds (1) :

Equity securities (2)

$ 68.5

$ 12.3

$ 943.5

$ 1,024.3

Bonds

—

—

634.6

634.6

Loans

—

—

8,089.5

8,089.5

68.5

12.3

9,667.6

9,748.4

Investments in CLOs and other:

Investments in CLOs

—

—

380.7

380.7

Other investments (3)

130.2

21.2

6.7

158.1

Foreign currency forward contracts

—

5.9

—

5.9

Subtotal

$ 198.7

$ 39.4

$ 10,055.0

$ 10,293.1

Investments measured at net asset value

1,341.7

Total

$ 11,634.8

Liabilities

Loans payable of Consolidated Funds (4)(5)

$ —

$ —

$ 8,208.7

$ 8,208.7

Foreign currency forward contracts

—

4.4

—

4.4

Total

$ —

$ 4.4

$ 8,208.7

$ 8,213.1

(1) This balance excludes $ 1.3  billion of Investments of Consolidated Funds that are included in Investments measured at net asset
value, which relate to certain consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.
(2) This balance includes $ 845.3  million related to investments that have been bridged by the Company to investment funds and are
accounted for as consolidated VIEs as of September 30, 2025 .
(3) The Level III balance excludes $ 63.0  million related to three corporate investments in equity securities which the Company has
elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to
ASC 321, Investments–Equity Securities . As a non-recurring fair value measurement, the fair value of these equity securities is
excluded from the tabular Level III rollforward disclosures.
(4) Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial
assets, less (i) the fair value of any beneficial interest held by the Company and (ii) the carrying value of any beneficial interests that
represent compensation for services.
(5) Loans payable of Consolidated Funds balance excludes $ 928.9 million of senior notes measured at amortized cost and a
$ 61.9  million revolving credit balance, which related to certain consolidated investment fund of funds in the Company’s Carlyle
AlpInvest segment.

26

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

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

(Dollars in millions)

Level I

Level II

Level III

Total

Assets

Investments of Consolidated Funds (1) :

Equity securities (2)

$ —

$ —

$ 572.0

$ 572.0

Bonds

—

—

465.1

465.1

Loans

—

—

6,431.4

6,431.4

Other

—

1.3

—

1.3

—

1.3

7,468.5

7,469.8

Investments in CLOs and other:

Investments in CLOs

—

—

378.9

378.9

Other investments (3)

40.4

21.5

85.1

147.0

40.4

21.5

464.0

525.9

Subtotal

$ 40.4

$ 22.8

$ 7,932.5

$ 7,995.7

Investments measured at net asset value

320.7

Total

$ 8,316.4

Liabilities

Loans payable of Consolidated Funds (4)(5)

$ —

$ —

$ 6,809.1

$ 6,809.1

Foreign currency forward contracts

—

0.6

—

0.6

Total

$ —

$ 0.6

$ 6,809.1

$ 6,809.7

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

27

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

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

Financial Assets

Three Months Ended September 30, 2025

 

Investments of Consolidated Funds

 

 

 

Equity
securities

Bonds

Loans

Investments in
CLOs

Other
investments

Total

Balance, beginning of period

$ 910.1

$ 569.7

$ 7,964.7

$ 366.9

$ 66.3

$ 9,877.7

Initial consolidation/deconsolidation of funds (1)

—

( 87.7 )

( 920.6 )

( 0.7 )

—

( 1,009.0 )

Purchases

78.6

253.0

3,601.0

27.7

0.6

3,960.9

Sales and distributions

( 11.1 )

( 102.8 )

( 2,023.6 )

( 18.8 )

( 58.2 )

( 2,214.5 )

Settlements

—

—

( 529.3 )

—

—

( 529.3 )

Realized and unrealized gains (losses), net

Included in earnings

( 34.1 )

2.5

( 1.8 )

10.1

( 2.0 )

( 25.3 )

Included in other comprehensive income

—

( 0.1 )

( 0.9 )

( 4.5 )

—

( 5.5 )

Balance, end of period

$ 943.5

$ 634.6

$ 8,089.5

$ 380.7

$ 6.7

$ 10,055.0

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

$ ( 39.2 )

$ 1.0

$ ( 1.0 )

$ 8.3

$ ( 4.7 )

$ ( 35.6 )

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

$ —

$ 0.1

$ 0.6

$ ( 3.9 )

$ —

$ ( 3.2 )

Financial Assets

Nine Months Ended September 30, 2025

 

Investments of Consolidated Funds

 

 

 

Equity
securities

Bonds

Loans

Investments in
CLOs

Other
investments

Total

Balance, beginning of period

$ 572.0

$ 465.1

$ 6,431.4

$ 378.9

$ 85.1

$ 7,932.5

Initial consolidation/deconsolidation of funds (2)

—

( 140.3 )

( 1,176.7 )

23.5

—

( 1,293.5 )

Transfer out related to the Exchange (3)

—

—

—

—

( 50.4 )

( 50.4 )

Purchases

406.4

536.2

7,119.7

30.9

60.6

8,153.8

Sales and distributions

( 39.6 )

( 287.1 )

( 3,354.0 )

( 100.6 )

( 89.4 )

( 3,870.7 )

Settlements

—

( 0.6 )

( 1,238.4 )

—

—

( 1,239.0 )

Realized and unrealized gains (losses), net

Included in earnings

4.7

6.4

( 62.7 )

23.9

0.8

( 26.9 )

Included in other comprehensive income

—

54.9

370.2

24.1

—

449.2

Balance, end of period

$ 943.5

$ 634.6

$ 8,089.5

$ 380.7

$ 6.7

$ 10,055.0

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

$ ( 1.9 )

$ 2.8

$ ( 49.1 )

$ 22.8

$ 1.0

$ ( 24.4 )

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

$ —

$ 26.3

$ 193.0

$ 24.7

$ —

$ 244.0

(1) As a result of the initial consolidation of three funds and deconsolidation of one fund during the three months ended September 30,
2025 .
(2) As a result of the initial consolidation of four funds and deconsolidation of two funds during the nine months ended September 30,
2025 .
(3) Represents the exchange of the BDC Preferred Shares, which were valued using Level III inputs, for common shares of CGBD, which
are valued using Level I inputs. See Note 9 , Related Party Transactions , for more information.

28

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Financial Assets

Three Months Ended September 30, 2024

Investments of Consolidated Funds

Equity
securities

Bonds

Loans

Investments in
CLOs

Other
investments

Total

Balance, beginning of period

$ 420.0

$ 489.5

$ 7,024.0

$ 494.6

$ 108.6

$ 8,536.7

Deconsolidation of funds (1)

—

( 34.1 )

( 1,190.3 )

2.3

—

( 1,222.1 )

Purchases

76.7

147.0

888.5

0.8

—

1,113.0

Sales and distributions

( 1.2 )

( 123.1 )

( 310.9 )

( 51.1 )

( 8.2 )

( 494.5 )

Settlements

—

—

( 570.2 )

—

—

( 570.2 )

Realized and unrealized gains (losses), net

Included in earnings

( 8.6 )

7.4

( 33.4 )

( 2.7 )

( 47.0 )

( 84.3 )

Included in other comprehensive income

—

16.4

112.8

20.6

—

149.8

Balance, end of period

$ 486.9

$ 503.1

$ 5,920.5

$ 464.5

$ 53.4

$ 7,428.4

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

$ ( 9.4 )

$ 5.6

$ ( 28.0 )

$ ( 3.6 )

$ ( 48.1 )

$ ( 83.5 )

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

$ —

$ 13.2

$ 96.7

$ 19.8

$ —

$ 129.7

Financial Assets

Nine Months Ended September 30, 2024

 

Investments of Consolidated Funds

 

 

 

Equity
securities

Bonds

Loans

Investments in
CLOs

Other
investments

Total

Balance, beginning of period

$ 377.6

$ 522.5

$ 5,862.1

$ 532.6

$ 84.6

$ 7,379.4

Deconsolidation of funds (1)

—

( 34.1 )

( 1,190.3 )

2.3

—

( 1,222.1 )

Purchases

139.7

265.1

4,565.6

1.8

7.2

4,979.4

Sales and distributions

( 11.3 )

( 265.9 )

( 1,841.6 )

( 111.6 )

( 9.1 )

( 2,239.5 )

Settlements

—

—

( 1,555.6 )

—

—

( 1,555.6 )

Realized and unrealized gains (losses), net

Included in earnings

( 19.1 )

13.3

60.1

23.2

( 29.3 )

48.2

Included in other comprehensive income

—

2.2

20.2

16.2

—

38.6

Balance, end of period

$ 486.9

$ 503.1

$ 5,920.5

$ 464.5

$ 53.4

$ 7,428.4

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

$ ( 22.2 )

$ 9.8

$ 9.1

$ 22.3

$ ( 31.3 )

$ ( 12.3 )

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

$ —

$ 2.5

$ 19.6

$ 15.4

$ —

$ 37.5

(1) As a result of the deconsolidation of three funds during each of the three and nine months ended September 30, 2024 .
 

29

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Financial Liabilities

Loans Payable of Consolidated Funds

Three Months Ended September 30,

 

2025

2024

Balance, beginning of period

$ 7,923.0

$ 7,623.4

Initial consolidation/deconsolidation of funds (1)

( 521.3 )

( 1,269.3 )

Borrowings

3,446.7

591.6

Paydowns

( 713.9 )

( 707.9 )

Sales

( 1,890.5 )

—

Realized and unrealized (gains) losses, net

Included in earnings

( 34.7 )

( 27.5 )

Included in other comprehensive income

( 0.6 )

135.0

Balance, end of period

$ 8,208.7

$ 6,345.3

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

$ ( 21.4 )

$ ( 19.1 )

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

$ 1.9

$ 135.2

Financial Liabilities

Loans Payable of Consolidated Funds

 

Nine Months Ended September 30,

 

2025

2024

Balance, beginning of period

$ 6,809.1

$ 6,298.6

Initial consolidation/deconsolidation of funds (2)

( 801.4 )

( 1,269.3 )

Borrowings

5,659.0

4,138.5

Paydowns

( 1,555.5 )

( 1,174.3 )

Sales

( 2,243.7 )

( 1,741.9 )

Realized and unrealized (gains) losses, net

Included in earnings

( 74.0 )

67.7

Included in other comprehensive income

415.2

26.0

Balance, end of period

$ 8,208.7

$ 6,345.3

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

$ ( 35.9 )

$ 71.1

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

$ 452.4

$ 30.2

(1) As a result of the initial consolidation of three funds and deconsolidation of one fund during the three months ended
September 30, 2025 , and the deconsolidation of three funds during the  three months ended September 30, 2024 .
(2) As a result of the initial consolidation of four funds and deconsolidation of two funds during the nine months ended
September 30, 2025 , and the deconsolidation of three funds during the nine months ended September 30, 2024 .
Realized and unrealized gains and losses included in earnings for Level III investments for investments in CLOs and
other investments are included in investment income (loss), and such gains and losses for investments of Consolidated Funds
and loans payable of the Consolidated Funds are included in net investment gains (losses) of Consolidated Funds in the
condensed consolidated statements of operations.
Gains and losses included in other comprehensive income for all Level III financial asset and liabilities are included in
accumulated other comprehensive loss and non-controlling interests in consolidated entities.
The following table summarizes quantitative information about the Company’s Level III inputs as of September 30, 2025 :

30

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Fair Value at

Valuation Technique(s)

Unobservable Input(s)

Range
(Weighted Average)

Impact to
Valuation
from Increase
in Input

(Dollars in millions)

September 30,
2025

Assets

Investments of Consolidated
Funds:

Equity securities

$ 1.6

Consensus Pricing

Indicative Quotes ($ per share)

0.00 - 22.02 ( 0.17 )

Higher

797.3

Discounted Cash Flow

Discount Rates

7 % - 19 % ( 11 % )

Lower

Terminal Growth Rate

0 % - 11 % ( 4 % )

Higher

Comparable Multiple

EBITDA Multiple

1.4 x - 23.4 x ( 12.6 x )

Higher

TCF Multiple

25.8 x - 25.8 x ( 25.8 x )

Higher

1.6

Comparable Multiple

Market Approach

9.0 x - 9.0 x ( 9.0 x )

Higher

108.1

Discounted Cash Flow

Discount Rates

7 % - 43 % ( 17 % )

Lower

Constant Prepayment Rate

6 % - 21 % ( 9 % )

Lower

Constant Default Rate

0 % - 6 % ( 2 % )

Lower

Recovery Rate

0 % - 40 % ( 24 % )

Higher

34.9

Other (1)

N/A

N/A

N/A

Bonds

634.6

Consensus Pricing

Indicative Quotes (% of Par)

27 - 106 ( 96 )

Higher

Loans

7,859.7

Consensus Pricing

Indicative Quotes (% of Par)

0 - 101 ( 98 )

Higher

194.3

Discounted Cash Flow

Discount Rates

7 % - 20 % ( 10 % )

Lower

3.7

Discounted Cash Flow

Discount Rates

14 % - 14 % ( 14 % )

Lower

Constant Prepayment Rate

8 % - 14 % ( 11 % )

Lower

Constant Default Rate

1 % - 1 % ( 1 % )

Lower

Recovery Rate

0 % - 0 % ( 0 % )

Higher

31.8

Other (1)

N/A

N/A

N/A

9,667.6

Investments in CLOs:

Senior secured notes

325.2

Consensus Pricing with
Discounted Cash Flow

Indicative Quotes (% of Par)

93 - 101 ( 100 )

Higher

Discount Margins (Basis
Points)

80 - 1,062 ( 208 )

Lower

Default Rates

2 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Subordinated notes and
preferred shares

55.5

Consensus Pricing with
Discounted Cash Flow

Indicative Quotes (% of Par)

0 - 89 ( 41 )

Higher

Discount Rates

( 3 )% - 30 % ( 9 % )

Lower

Default Rates

1 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Other investments:

Aviation subordinated
notes

6.3

Discounted Cash Flow

Discount Rates

21 % - 21 % ( 21 % )

Lower

0.4

Other (1)

N/A

N/A

N/A

Total

$ 10,055.0

Liabilities

Loans payable of Consolidated
 Funds:

Senior secured notes

$ 7,896.6

Other (2)

N/A

N/A

N/A

Subordinated notes and
preferred shares

312.1

Consensus Pricing with
Discounted Cash Flow

Indicative Quotes (% of Par)

12 - 89 ( 70 )

Higher

Discount Rates

5 % - 23 % ( 9 % )

Lower

Default Rates

1 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Total

$ 8,208.7

31

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

(1) Fair value approximates transaction price that was in close proximity to the reporting date.
(2) Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,
less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent
compensation for services.

32

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

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

Fair Value at

Valuation Technique(s)

Unobservable Input(s)

Range
(Weighted Average)

Impact to
Valuation
from
Increase in
Input

(Dollars in millions)

December 31, 2024

Assets

Investments of Consolidated
Funds:

Equity securities

$ 3.9

Consensus Pricing

Indicative Quotes ($ per share)

0.00 - 112.17 ( 0.01 )

Higher

485.0

Discounted Cash Flow

Discount Rates

10 % - 13 % ( 11 % )

Lower

Terminal Growth Rate

3 % - 7 % ( 6 % )

Higher

Comparable Multiple

EBITDA Multiple

7.7 x - 23.2 x ( 12.8 x )

Higher

TCF Multiple

26.0 x - 26.0 x ( 26.0 x )

Higher

38.2

Discounted Cash Flow

Discount Rates

14 % - 34 % ( 18 % )

Lower

Constant Prepayment Rate

6 % - 16 % ( 11 % )

Lower

Constant Default Rate

1 % - 4 % ( 2 % )

Lower

Recovery Rate

0 % - 40 % ( 17 % )

Higher

44.9

Other (1)

N/A

N/A

N/A

Bonds

465.1

Consensus Pricing

Indicative Quotes (% of Par)

30 - 103 ( 93 )

Higher

Loans

6,408.2

Consensus Pricing

Indicative Quotes (% of Par)

0 - 105 ( 97 )

Higher

10.2

Discounted Cash Flow

Discount Rates

9 % - 19 % ( 18 % )

Lower

6.4

Discounted Cash Flow

Discount Rates

16 % - 16 % ( 16 % )

Lower

Constant Prepayment Rate

8 % - 14 % ( 11 % )

Lower

Constant Default Rate

1 % - 1 % ( 1 % )

Lower

Recovery Rate

0 % - 0 % ( 0 % )

Higher

Other

6.6

Other (1)

N/A

N/A

N/A

7,468.5

Investments in CLOs

Senior secured notes

321.8

Discounted Cash Flow
with Consensus Pricing

Indicative Quotes (% of Par)

80 - 101 ( 99 )

Higher

Discount Margins (Basis
Points)

113 - 1,535 ( 214 )

Lower

Default Rates

2 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Subordinated notes and
preferred shares

57.1

Discounted Cash Flow
with Consensus Pricing

Indicative Quotes (% of Par)

1 - 103 ( 38 )

Higher

Discount Rate

4 % - 35 % ( 16 % )

Lower

Default Rates

1 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Other investments:

BDC preferred shares

53.4

Other (2)

Net Asset Value per Share

16.80 - 16.80 ( 16.80 )

Lower

Aviation subordinated
notes

2.9

Discounted Cash Flow

Discount Rates

21 % - 21 % ( 21 % )

Lower

Loans

28.8

Consensus Pricing

Indicative Quotes (% of Par)

99 - 99 ( 99 )

Higher

Total

$ 7,932.5

Liabilities

Loans payable of Consolidated
Funds:

Senior secured notes

$ 6,598.8

Other (3)

N/A

N/A

N/A

Subordinated notes and
preferred shares

210.3

Discounted Cash Flow
with Consensus Pricing

Indicative Quotes (% of Par)

11 - 87 ( 34 )

Higher

Discount Rates

2 % - 35 % ( 15 % )

Lower

Default Rates

1 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Total

$ 6,809.1

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

33

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

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

4. Investments
In vestments consist of the following:  

 

As of

 

September 30,
2025

December 31,
2024

 

(Dollars in millions)

Accrued performance allocations

$ 6,956.3

$ 7,053.5

Principal equity method investments, excluding performance allocations

2,942.5

3,292.3

Principal investments in CLOs

380.7

378.9

Other investments

235.9

212.0

Total

$ 10,515.4

$ 10,936.7

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

 

As of

 

September 30,
2025

December 31,
2024

 

(Dollars in millions)

Global Private Equity

$ 4,352.3

$ 4,910.2

Global Credit

721.1

527.1

Carlyle AlpInvest

1,882.9

1,616.2

Total

$ 6,956.3

$ 7,053.5

Approximately 17 % and 20 % of accrued performance allocations at September 30, 2025 and December 31, 2024 ,
respectively, was related to Carlyle Partners VII, L.P., one of the Company’s Global Private Equity funds.
Accrued performance allocations are shown gross of the Company’s accrued performance allocations and incentive fee
related compensation (see Note 7 , Accrued Compensation and Benefits ), and accrued giveback obligations, which are
separately presented in the condensed consolidated balance sheets. The components of the accrued giveback obligations are as
follows:

 

As of

 

September 30,
2025

December 31,
2024

 

(Dollars in millions)

Global Private Equity

$ ( 19.1 )

$ ( 18.5 )

Global Credit

( 25.5 )

( 25.5 )

Total

$ ( 44.6 )

$ ( 44.0 )

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

34

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

 

As of

 

September 30,
2025

December 31,
2024

 

(Dollars in millions)

Global Private Equity (1)

$ 1,431.2

$ 1,818.0

Global Credit (2)

1,152.1

1,157.0

Carlyle AlpInvest

359.2

317.3

Total

$ 2,942.5

$ 3,292.3

(1) The balance includes $ 642.2  million and $ 912.0  million as of September 30, 2025 and December 31, 2024 , respectively, related to
the Company’s equity method investments in NGP.
(2) The balance includes $ 739.5  million and $ 723.5  million as of September 30, 2025 and December 31, 2024 , respectively, related to
the Company’s investment in Fortitude.
Investment in Fortitude
In November 2018, the Company acquired a 19.9 % interest in Fortitude Group Holdings, LLC (“Fortitude Holdings”), a
wholly owned subsidiary of American International Group, Inc. (“AIG”). Fortitude Holdings owns 100 % of the outstanding
common shares of Fortitude Reinsurance Company Ltd., a Bermuda domiciled reinsurer (“Fortitude Re”). The Company paid
$ 381 million in cash at closing and paid $ 95 million in additional deferred consideration in 2024. In May 2020, the initial
purchase price was adjusted upward by $ 99.5 million in accordance with the purchase agreement as Fortitude Holdings chose
not to distribute a planned non-pro rata dividend to AIG, of which the Company paid $ 79.6 million in May 2020. The
remaining $ 19.9 million was paid in 2024.
In June 2020, Carlyle FRL, L.P. (“Carlyle FRL”), a Carlyle-affiliated investment fund, and T&D United Capital Co., Ltd.
(“T&D”), a strategic third-party investor, acquired a 51.6 % ownership interest and 25.0 % ownership interest, respectively, in
Fortitude Holdings from AIG. At closing, the Company contributed its existing 19.9 % interest in Fortitude Holdings to Carlyle
FRL, such that Carlyle FRL held a 71.5 % interest in Fortitude Holdings. Taken together, Carlyle FRL and T&D had 96.5 %
ownership of Fortitude Holdings. In October 2021, Carlyle FRL, T&D and an affiliate of AIG contributed the entirety of their
interest in Fortitude Holdings to FGH Parent, L.P. (“FGH Parent”), a newly-formed entity interposed as the direct parent of
Fortitude Holdings, in exchange for an equivalent ownership interest in FGH Parent. References to “Fortitude” prior to this
restructuring refer to Fortitude Holdings and refer to FGH Parent for subsequent periods.
In March 2022, the Company raised $ 2.0  billion in third-party equity capital from certain investors in Carlyle FRL and
T&D, and committed $ 100  million from the Company for additional equity capital in Fortitude. Upon Fortitude calling the
remaining commitments from the capital raise in May 2023, the Company’s indirect ownership of Fortitude decreased to 
10.5 % . Effective October 2023, a third-party investor in Carlyle FRL received a distribution in kind of its interest in FGH
Parent held indirectly through the fund, reducing Carlyle FRL’s ownership in FGH Parent to 38.5 % . Following the additional
capital contributions in 2022 and 2023, Carlyle FRL and its strategic third-party investors collectively hold a 97.5 % interest in
FGH Parent.
In November 2024, Fortitude declared and paid a $ 200.0  million dividend, of which Carlyle FRL’s share was
$ 76.9  million . The Company received a distribution from Carlyle FRL of $ 21.0  million related to this dividend, of which
$ 7.9  million was recognized as realized principal investment income, and the balance as return of capital. In September 2025,
Fortitude declared and paid a $ 300.0  million dividend, $ 31.4  million of which was distributed to the Company from Carlyle
FRL and recognized as realized principal investment income on the condensed consolidated statements of operations for the
three and nine months ended September 30, 2025. As of September 30, 2025 , the carrying value of the Company’s investment
in Carlyle FRL, which is an investment company that accounts for its investment in Fortitude at fair value, was $ 739.5  million ,
relative to equity invested of $ 666.8  million .
The Company has an asset management relationship with Fortitude pursuant to which Fortitude committed to allocate
assets in asset management strategies and vehicles of the Company and its affiliates. As of September 30, 2025 , Fortitude, its
affiliates and certain Fortitude reinsurance counterparties have committed approximately $ 23.3  billion of capital to-date to
various Carlyle strategies. On April 1, 2022, the Company entered into a strategic advisory services agreement with certain
subsidiaries of Fortitude through Carlyle Insurance Solutions Management L.L.C. (“CISM”), an investment adviser. Under the
agreement, CISM provides Fortitude with certain services, including business development and growth, transaction origination

35

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

and execution, and capital management services in exchange for a recurring management fee based on Fortitude’s general
account assets, which adjusts within an agreed range based on Fortitude’s overall profitability. Third-party investors who
participated in the March 2022 capital raise also made a minority investment in CISM, which is reflected as non-controlling
interest in consolidated entities in the condensed consolidated financial statements.
Investment in NGP
The Company has equity interests in NGP Management Company, L.L.C. (“NGP Management”), the general partners of
certain carry funds advised by NGP, and principal investments in certain NGP funds as described below. These investments are
included in the Global Private Equity segment. NGP Management serves as the investment advisor to the NGP Energy Funds.
The Company does not control NGP and accounts for its investments in NGP under the equity method of accounting.
The Company’s investments in NGP as of September 30, 2025 and December 31, 2024 are as follows:

As of

September 30,
2025

December 31,
2024

(Dollars in millions)

Investment in NGP Management

$ 256.0

$ 369.2

Investments in NGP general partners - accrued performance allocations

341.2

489.4

Principal investments in NGP funds

45.0

53.4

Total investments in NGP

$ 642.2

$ 912.0

NGP Restructuring . On March 31, 2025, the Company restructured the terms of its strategic investment in NGP (the
“Restructuring”) to further align the interests of the Company and NGP. The Restructuring eliminated previous restrictions on
the Company’s ability to pursue domestic energy strategies, established a new capital markets fees arrangement with NGP, and
terminated the Company’s obligation to grant up to $ 10  million of its common shares to NGP annually following a final grant
made with respect to 2030. Additionally, in order to facilitate the development of future funds while substantially maintaining
the Company’s economics on existing funds, the Restructuring reduced the Company’s allocation of the management fee
related revenues of NGP Management related to future funds, as well as its share of the performance allocations received by
current and future NGP fund general partners, as discussed further below.
Prior to the Restructuring, the Company’s equity interests in NGP Management entitled the Company to an allocation of
income equal to 55.0 % of the management fee related revenues earned by NGP Management. Subsequent to the Restructuring,
for all funds that held an initial closing after December 31, 2024, the Company’s allocations of income for the management fee
related revenues will be based on a sliding scale of the total annual management fee related revenues accrued from all such
funds in the aggregate up to 55.0 % , including all management fees being retained by NGP for the years 2025 through 2028 on
such future NGP funds. The Company identified the reduction of its allocation of the management fee related revenues of NGP
Management as an indicator of impairment and performed an impairment analysis. As a result of the Restructuring, the
Company concluded that the carrying value of its investment in NGP Management was impaired and recorded an impairment
charge of $ 92.5  million during the first quarter of 2025, representing the difference in the carrying value of the investment of
$ 352.5  million and its fair value of $ 260.0  million at the time of Restructuring. The Company utilized a discounted cash flow
method for determining the fair value of its equity method investment, which is a Level III valuation within the fair value
hierarchy and utilizes significant unobservable assumptions, including discount rates and long-term growth rates. The allocation
of management fee related revenues for existing NGP funds remains unchanged, including the Company’s interest in
management fees from NGP XI, NGP XII, and NGP XIII.
The impairment charge created new basis differences with an estimated fair value of $ 165  million within the equity
method investment. These basis differences will be amortized over an estimated useful life ranging from five to seven years as a
reduction of principal investment income.
The Company’s investment in the general partners of the NGP Carry Funds entitled it to 47.5 % ( 38.0 % to 42.75 % in the
case of certain funds) of the performance allocations received by certain current and future NGP fund general partners prior to
the Restructuring. In connection with the Restructuring, the Company’s allocation of the performance allocations from existing
NGP Carry Funds was reduced to a range of 35.1 % to 43.8 % , which resulted in a $ 38  million reduction in accrued performance

36

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

allocations during the first quarter of 2025. The Company’s interest in the performance allocations from future NGP Carry
Funds will be based on a sliding scale of the fee paying capital raised in each future NGP Carry Fund, up to 47.5 % of the
performance allocations received by future NGP Carry Funds.
The impairment charge related to the investment in NGP Management and the reduction in accrued performance
allocations from NGP Carry Funds are recorded in Principal investment income (loss) in the condensed consolidated statements
of operations and excluded from Distributable Earnings, as defined in Note 15 , Segment Reporting .
Investment in NGP Management . As referenced above, the Company’s equity interests in NGP Management entitle the
Company to an allocation of income equal to 55.0 % of the management fee related revenues earned by existing funds, and up to
55.0 % of management fees earned on future NGP funds in the aggregate, including all management fees being retained by NGP
for the years 2025 through 2028 on such future NGP funds. The Company records investment income (loss) for its equity
income allocation from NGP management fee related revenues and also records its share of any allocated expenses from NGP
Management, as well as expenses associated with the compensatory elements of the investment and any impairment charges.
The net investment income (loss) recognized in the Company’s condensed consolidated statements of operations for the three
and nine months ended September 30, 2025 and 2024 were as follows:

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Management fee related revenues from NGP Management

$ 15.0

$ 20.8

$ 46.5

$ 57.3

Expenses related to the investment in NGP Management

( 3.6 )

( 3.5 )

( 10.8 )

( 10.5 )

Amortization of basis differences and impairment of investment in NGP
Management

( 8.7 )

—

( 110.0 )

—

Net investment income from NGP Management

$ 2.7

$ 17.3

$ ( 74.3 )

$ 46.8

Management fee related revenues from NGP Management were primarily driven by NGP XI, NGP XII, and NGP XIII
during the three and nine months ended September 30, 2025 and 2024 . These funds calculate management fees as 1.5 % of the
limited partners’ commitments less any return of capital or write-offs during the investment period. Following the investment
period, the basis on which fund management fees are generally calculated is further reduced by a reserve for future management
fees and operating costs.
Investment in the General Partners of NGP Carry Funds . As referenced above, the Company’s investment in the general
partners of the NGP Carry Funds entitle it to up to 47.5 % of the performance allocations received by NGP fund general
partners. The Company records its equity income allocation from NGP performance allocations in principal investment income
(loss) from equity method investments rather than performance allocations in its condensed consolidated statements of
operations. The Company recognized net investment earnings (losses) related to these performance allocations of $ 23.8 million
and $ 14.9 million for the three months ended September 30, 2025 and 2024 , respectively, and $ 22.9  million and $ 33.2 million
for the nine months ended September 30, 2025 and 2024 , respectively, in its condensed consolidated statements of operations.
The nine months ended September 30, 2025 included the $ 38.0  million reduction related to the Restructuring.
Principal Investments in NGP Funds . The Company also holds principal investments in the NGP Carry Funds. The
Company recognized net investment earnings (losses) related to principal investment income (loss) in its condensed
consolidated statements of operations of $ 3.3 million and $ 2.5 million for the three months ended September 30, 2025 and
2024 , respectively, and $ 8.8 million and $ 5.2 million for the nine months ended September 30, 2025 and 2024 , respectively.

37

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Principal Investments in CLOs and Other Investments
Principal investments in CLOs as of September 30, 2025 and December 31, 2024 were $ 380.7 million and $ 378.9
million , respectively, and consisted of investments in CLO senior and subordinated notes. A portion of the Company’s principal
investments in CLOs is collateral to CLO term loans (see Note 6 , Borrowings ). As of September 30, 2025 other investments
include the Company’s investment in common shares of CGBD at fair value of $ 37.6  million . As of December 31, 2024 , other
investments include the Company’s investment in preferred shares of CGBD (the “BDC Preferred Shares”) at fair value of
$ 53.4 million , which were exchanged for common shares effective March 27, 2025 (see Note 9 , Related Party Transactions ).
Investment Income (Loss)
The components of investment income (loss) are as follows:

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Performance allocations

Realized

$ 49.4

$ 266.4

$ 499.0

$ 804.0

Unrealized

( 656.1 )

1,519.1

( 244.0 )

1,022.7

( 606.7 )

1,785.5

255.0

1,826.7

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

Realized

59.6

38.1

208.5

135.5

Unrealized

8.4

65.4

( 147.8 )

71.6

68.0

103.5

60.7

207.1

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

Realized

1.1

( 4.7 )

0.7

4.5

Unrealized (1)

18.6

( 52.8 )

18.4

( 4.4 )

19.7

( 57.5 )

19.1

0.1

Total

$ ( 519.0 )

$ 1,831.5

$ 334.8

$ 2,033.9

(1) The three and nine months ended September 30, 2024 each included the reversal of $ 48.5  million of previously recorded unrealized
investment income on the BDC Preferred Shares (see Note 9 , Related Party Transactions for more information). The nine months
ended September 30, 2024 included investment gain of $ 5.3  million associated with the remeasurement of corporate investments,
resulting from observable price changes pursuant to ASC 321, Investments–Equity Securities .

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

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Global Private Equity

$ ( 781.4 )

$ 1,625.8

$ ( 219.5 )

$ 1,447.3

Global Credit

93.3

58.7

223.1

170.0

Carlyle AlpInvest

81.4

101.0

251.4

209.4

Total

$ ( 606.7 )

$ 1,785.5

$ 255.0

$ 1,826.7

The following tables summarize the funds that are the primary drivers of performance allocations for the three and nine
months ended September 30, 2025 and 2024 , as well as the total revenue recognized, including performance allocations as well
as fund management fees and principal investment income:

38

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Three Months Ended September 30, 2025

Nine Months Ended September 30, 2025

(Dollars in millions)

(Dollars in millions)

Global Private Equity

Carlyle Asia Partners V, L.P.

$ ( 257.2 )

Global Private Equity

Carlyle Partners VII, L.P.

$ ( 110.2 )

Global Private Equity

Carlyle Partners VII, L.P.

( 557.9 )

Global Private Equity

Carlyle Asia Partners V, L.P.

( 197.4 )

Three Months Ended September 30, 2024

Nine Months Ended September 30, 2024

(Dollars in millions)

(Dollars in millions)

Global Private Equity

Carlyle Partners VII, L.P.

$ 1,228.8

Global Private Equity

Carlyle Partners VII, L.P.

$ 1,258.9

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

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Global Private Equity

$ 39.4

$ 58.0

$ ( 13.0 )

$ 124.1

Global Credit

12.8

30.5

31.5

61.5

Carlyle AlpInvest

15.8

15.0

42.2

21.5

Total

$ 68.0

$ 103.5

$ 60.7

$ 207.1

Principal investment income for Global Private Equity for the nine months ended September 30, 2025 included the
impairment charge related to the investment in NGP Management of $ 92.5  million and the reduction in accrued performance
allocations from NGP Carry Funds of $ 38.0  million related to the Restructuring. Principal investment income for Global Private
Equity for the three and nine months ended September 30, 2024 included the Company’s equity income allocation from NGP
performance allocations of $ 14.9 million and $ 33.2 million , respectively.
Investments of Consolidated Funds
The Company consolidates the financial positions and results of operations of certain CLOs in which it is the primary
beneficiary. During the nine months ended September 30, 2025 , the Company became the primary beneficiary of four
additional CLOs. Investments in Consolidated Funds as of September 30, 2025 and December 31, 2024 also included
$ 845.3  million and $ 441.9  million , respectively, related to investments that have been bridged by the Company to investment
funds and are accounted for as consolidated VIEs.
There were no individual investments with a fair value greater than five percent of the Company’s total assets for any
period presented.

39

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Interest and Other Income of Consolidated Funds
The components of interest and other income of Consolidated Funds are as follows:

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Interest income from investments

$ 146.9

$ 158.0

$ 412.4

$ 449.9

Other income

16.5

22.1

47.4

60.7

Total

$ 163.4

$ 180.1

$ 459.8

$ 510.6

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

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Gains (losses) from investments of Consolidated Funds

$ 88.5

$ ( 24.9 )

$ 100.1

$ 58.1

Gains (losses) from liabilities of CLOs

34.7

27.4

76.0

( 67.7 )

Total

$ 123.2

$ 2.5

$ 176.1

$ ( 9.6 )

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

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Realized gains (losses)

$ 58.5

$ ( 4.5 )

$ 33.6

$ ( 49.1 )

Net change in unrealized gains (losses)

30.0

( 20.4 )

66.5

107.2

Total

$ 88.5

$ ( 24.9 )

$ 100.1

$ 58.1

5. Intangible Assets and Goodwill
The following table summarizes the carrying amount of intangible assets as of September 30, 2025 and December 31,
2024 :

As of

September 30,
2025

December 31,
2024

(Dollars in millions)

Acquired contractual rights

$ 928.2

$ 922.7

Accumulated amortization

( 492.8 )

( 392.2 )

Finite-lived intangible assets, net

435.4

530.5

Goodwill

104.6

103.6

Intangible Assets, net

$ 540.0

$ 634.1

As discussed in Note 2 , Summary of Significant Accounting Policies , the Company reviews its intangible assets for
impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable,

40

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

and considers factors including, but not limited to, expected cash flows from its interest in future management fees and the
ability to raise new funds. The Company recorded no impairment losses of intangible assets for the periods presented .
Intangible asset amortization expense was $ 32.8 million and $ 32.7 million for the three months ended September 30,
2025 and 2024 , respectively, and $ 98.2 million and $ 98.0 million for the nine months ended September 30, 2025 and 2024 ,
respectively, and is included in general, administrative, and other expenses in the condensed consolidated statements of
operations . Certain intangible assets are held by entities of which the functional currency is not the U.S. dollar. Any
corresponding currency translation is recorded in accumulated other comprehensive income (loss).
The following table summarizes the expected amortization expense for 2025 through 2029 and thereafter (Dollars in
millions):

Year ending December 31,

2025 (excluding the nine months ended September 30, 2025)

$ 33.0

2026

131.8

2027

121.7

2028

114.5

2029

31.9

Thereafter

2.5

$ 435.4

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

 

September 30, 2025

December 31, 2024

 

Borrowing
Outstanding

Carrying
Value

Borrowing
Outstanding

Carrying
Value

(Dollars in millions)

CLO Borrowings   (See below)

$ 339.3

$ 337.0

$ 289.4

$ 288.0

3.500 % Senior Notes Due 9/19/2029

425.0

423.2

425.0

422.9

5.050 % Senior Notes Due 9/19/2035

800.0

791.0

—

—

5.625 % Senior Notes Due 3/30/2043

600.0

600.5

600.0

600.5

5.650 % Senior Notes Due 9/15/2048

350.0

346.7

350.0

346.6

4.625 % Subordinated Notes Due 5/15/2061

500.0

485.8

500.0

485.5

Total debt obligations

$ 3,014.3

$ 2,984.2

$ 2,164.4

$ 2,143.5

Senior Credit Facility
As of September 30, 2025 , the senior credit facility included $ 1.0  billion in a revolving credit facility, which was
amended in May 2025 to extend the maturity date from April 29, 2027 to May 29, 2030 . The Company’s borrowing capacity is
subject to the ability of the financial institutions in the banking syndicate to fulfill their respective obligations under the
revolving credit facility. Principal amounts outstanding under the revolving credit facility accrue interest, at the option of the
borrowers, either (a) at an alternate base rate plus an applicable margin not to exceed 0.50 % per annum, or (b) at SOFR (or
similar benchmark rate for non-U.S. dollar borrowings) plus a 0.10 % adjustment and an applicable margin not to exceed 1.50 %
per annum (at September 30, 2025 , the interest rate was 5.23 % ). The Company made no borrowings under the revolving credit
facility during the three and nine months ended September 30, 2025 and 2024 , and there was no amount outstanding as of
September 30, 2025 .

41

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

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 amended in August 2025 to extend the maturity date to August 19, 2026 .
The Company’s borrowing capacity is subject to the ability of the financial institutions in the banking syndicate to fulfill their
respective obligations under the Global Credit Revolving Credit Facility. Principal amounts outstanding accrue interest at
applicable SOFR or Eurocurrency rates plus an applicable margin of 2.00 % or an alternate base rate plus an applicable margin
of 1.00 % . During the three and nine months ended September 30, 2025 , the Company made no borrowings under the Global
Credit Revolving Credit Facility. During the three months ended September 30, 2024 , the Company made no borrowings under
the Global Credit Revolving Credit Facility. During the nine months ended September 30, 2024 , the Company made
borrowings under the Global Credit Revolving Credit Facility of $ 5.0  million and € 5.0  million , which were repaid during the
period . As of September 30, 2025 , there was no borrowing outstanding under the Global Credit Revolving Credit Facility.
CLO Borrowings
For certain of the Company’s CLOs, the Company finances a portion of its investment in the CLOs through the proceeds
received from term loans and other financing arrangements with financial institutions. The Company’s outstanding CLO
borrowings consist of the following (Dollars in millions):

Formation Date

Borrowing
Outstanding
September 30,
2025

Borrowing
Outstanding
December 31, 2024

Maturity Date (1)

Interest Rate as of
September 30, 2025

February 28, 2017

$ 13.4

$ 23.5

September 21, 2029

4.56 %

(2)

December 6, 2017

—

25.5

N/A

N/A

(5)

March 15, 2019

1.9

1.7

March 15, 2032

10.12 %

(3)

August 20, 2019

4.2

3.7

August 15, 2032

6.77 %

(3)

September 15, 2020

19.3

18.4

April 15, 2033

3.63 %

(3)

January 8, 2021

21.9

19.2

January 15, 2034

4.52 %

(3)

March 30, 2021

14.3

16.5

March 15, 2032

3.90 %

(3)

April 21, 2021

3.8

3.3

April 15, 2033

7.87 %

(3)

May 21, 2021

6.8

11.6

November 17, 2031

3.56 %

(3)

June 4, 2021

22.0

19.4

January 16, 2034

4.31 %

(3)

June 10, 2021

1.4

1.2

November 17, 2031

4.89 %

(3)

July 15, 2021

16.4

14.5

July 15, 2034

4.32 %

(3)

July 20, 2021

21.9

19.3

July 20, 2034

4.30 %

(3)

August 4, 2021

14.5

15.6

August 15, 2032

3.86 %

(3)

October 27, 2021

25.5

22.5

October 15, 2035

4.43 %

(3)

January 6, 2022

22.0

19.4

February 15, 2035

4.42 %

(3)

February 22, 2022

22.1

19.5

November 10, 2035

4.46 %

(3)

September 5, 2023

—

5.1

N/A

N/A

(5)

April 25, 2024

19.5

17.2

April 25, 2037

4.81 %

(3)

December 19, 2024

16.6

12.3

January 15, 2039

4.64 %

(3)

March 10, 2025

22.0

—

April 15, 2038

4.51 %

(3)

July 10, 2025

27.5

—

August 15, 2038

4.46 %

(4)

August 19, 2025

22.3

—

October 15, 2038

4.66 %

(4)

$ 339.3

$ 289.4

(1) Maturity date is earlier of date indicated or the date that the CLO is dissolved.
(2) Incurs interest at EURIBOR plus applicable margins as defined in the agreement.
(3) Incurs interest at the average effective interest rate of each class of purchased securities plus 0.50 % spread percentage.
(4) Incurs interest at the average effective interest rate of each class of purchased securities plus 0.55 % spread percentage.
(5) Term loan was fully repaid during the nine months ended September 30, 2025 .

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

The CLO term loans are secured by the Company’s investments in the respective CLO, have a general unsecured interest
in the Carlyle entity that manages the CLO, and generally do not have recourse to any other Carlyle entity. Interest expense for
the three months ended September 30, 2025 and 2024 was $ 3.7 million and $ 6.2 million , respectively. Interest expense for the
nine months ended September 30, 2025 and 2024 was $ 11.5 million and $ 19.2 million , respectively. The fair value of the
outstanding balance of the CLO term loans at September 30, 2025 approximated par value based on current market rates for
similar debt instruments. These CLO term loans are classified as Level III within the fair value hierarchy.
European CLO Financing – February 28, 2017
A subsidiary of the Company is a party to a financing agreement with several financial institutions. As of September 30,
2025 , the financing agreement provided the Company with a term loan of € 11.4  million ( $ 13.4  million at September 30, 2025 ).
This term loan is secured by the Company’s investments in the retained notes in certain European CLOs that were formed in
2014 and 2015. This term loan will mature on the earlier of September 21, 2029 or the date that the certain European CLO
retained notes have been redeemed. The Company may prepay the term loan in whole or in part at any time. Interest on this
term loan accrues at EURIBOR plus applicable margins ( 4.56 % at September 30, 2025 ).
Master Credit Agreement – Term Loans
The Company assumed liabilities under master credit agreements previously entered into by CBAM under which a
financial institution provided term loans to CBAM for the purchase of eligible interests in CLOs. Term loans issued under these
master credit agreements are secured by the Company’s investment in the respective CLO as well as any senior management
fee and subordinated management fee payable by each CLO. Term loans generally bear interest at SOFR plus a weighted
average spread over SOFR on the CLO notes, which is due quarterly. As of September 30, 2025 , all outstanding CLO term
loans under this agreement have been repaid.
CLO Repurchase Agreements
On February 5, 2019, the Company entered into a master credit facility agreement (the “Carlyle CLO Financing Facility”)
to finance a portion of the risk retention investments in certain European CLOs managed by the Company. Each transaction
entered into under the Carlyle CLO Financing Facility will bear interest at a rate based on the weighted average effective
interest rate of each class of securities that have been sold plus a spread to be agreed upon by the parties. As of September 30,
2025 , € 214.1 million ( $ 251.5  million ) was outstanding under the Carlyle CLO Financing Facility. Additional borrowings may
be made on terms agreed upon by the Company and the counterparty subject to the terms and conditions of the Carlyle CLO
Financing Facility.
Each transaction entered into under the CLO Financing Facility provides for payment netting and, in the case of a default
or similar event with respect to the counterparty to the CLO Financing Facility, provides for netting across transactions.
Generally, upon a counterparty default, the Company can terminate all transactions under the CLO Financing Facility and offset
amounts it owes in respect of any one transaction against collateral, if any, or other amounts it has received in respect of any
other transactions under the CLO Financing Facility; provided, however, that in the case of certain defaults, the Company may
only be able to terminate and offset solely with respect to the transaction affected by the default. During the term of a
transaction entered into under the CLO Financing Facility, the Company will deliver cash or additional securities acceptable to
the counterparty if the securities sold are in default. Upon termination of a transaction, the Company will repurchase the
previously sold securities from the counterparty at a previously determined repurchase price. The CLO Financing Facility may
be terminated at any time upon certain defaults or circumstances agreed upon by the parties.
The Repurchase Agreements may result in credit exposure in the event the counterparty to the transaction is unable to
fulfill its contractual obligations. The Company minimizes the credit risk associated with these activities by monitoring
counterparty credit exposure and collateral values. Other than margin requirements, the Company is not subject to additional
terms or contingencies which would expose the Company to additional obligations based upon the performance of the securities
pledged as collateral.
The Company assumed liabilities under a master credit facility agreement previously entered into by CBAM (the
“CBAM CLO Financing Facility,” together with the Carlyle CLO Financing Facility, the “CLO Financing Facilities”) to
finance a portion of the risk retention investments in certain European CLOs managed by CBAM. The maximum facility
amount is € 100.0  million , but may be expanded on such terms agreed upon by the Company and the counterparty subject to the

43

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

terms and conditions of the CBAM CLO Financing Facility. Each transaction entered into under the CBAM CLO Financing
Facility will bear interest at a rate based on the weighted average effective interest rate of each class of securities that have been
sold plus a spread to be agreed upon by the parties. As of September 30, 2025 , € 63.4  million ( $ 74.4  million ) was outstanding
under the CBAM CLO Financing Facility.
Senior Notes
The Company and c ertain indirect subsidiaries of the Company have issued long term borrowings in the form of senior
notes, on which interest is payable semi-annually in arrears. The following table provides information regarding these senior
notes (Dollars in millions):

Interest Expense

Fair Value (1)
As of

Three Months Ended
September 30,

Nine Months Ended
September 30,

Aggregate
Principal
Amount

September
30, 2025

December
31, 2024

2025

2024

2025

2024

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

$ 425.0

$ 413.2

$ 401.2

$ 3.8

$ 3.8

$ 11.5

$ 11.5

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

800.0

797.7

—

1.3

—

1.3

—

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

600.0

603.1

589.5

8.4

8.4

25.3

25.3

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

350.0

348.5

338.1

4.9

4.9

14.9

14.9

$ 18.4

$ 17.1

$ 53.0

$ 51.7

(1) Including accrued interest. Fair value is based on indicative quotes and the notes are classified as Level II within the fair
value hierarchy.
(2) Issued in September 2019 at 99.841 % of par.
(3) Issued in September 2025 at 99.767 % of par.
(4) Issued $ 400.0 million in aggregate principal at 99.583 % of par in March 2013. An additional $ 200.0 million in aggregate
principal was issued at 104.315 % of par in March 2014, and is treated as a single class with the outstanding $ 400.0 million
in senior notes previously issued.
(5) Issued in September 2018 at 99.914 % of par.
The issuers may redeem the senior notes, in whole at any time or in part from time to time, at a price equal to the greater
of (i) 100 % of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining
scheduled payments of principal and interest on any notes being redeemed (less interest accrued to the date of redemption)
discounted to the redemption date on a semiannual basis at the Treasury Rate plus 40 basis points ( 30 basis points in the case of
the 3.500 % senior notes and 20 basis points in the case of the 5.050 % senior notes), plus in each case accrued and unpaid
interest on the principal amounts being redeemed.

44

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Subordinated Notes
In May 2021, an indirect subsidiary of the Company issued $ 435.0  million aggregate principal amount of 4.625 %
Subordinated Notes due May 15, 2061 (the “Subordinated Notes”), on which interest is payable quarterly accruing from May
11, 2021. In June 2021, an additional $ 65.0  million aggregate principal amount of these Subordinated Notes were issued and
are treated as a single series with the already outstanding $ 435.0  million aggregate principal amount. The Subordinated Notes
are unsecured and subordinated obligations of the issuer, and are fully and unconditionally guaranteed (the “Guarantees”),
jointly and severally, on a subordinated basis, by the Company, each of the Carlyle Holdings partnerships, and CG Subsidiary
Holdings L.L.C., an indirect subsidiary of the Company (collectively, the “Guarantors”). The Consolidated Funds are not
guarantors, and as such, the assets of the Consolidated Funds are not available to service the Subordinated Notes under the
Guarantee. The Subordinated Notes may be redeemed at the issuer’s option, in whole or in part, at any time and from time to
time on or after June 15, 2026, prior to their stated maturity, at a redemption price equal to their principal amount plus any
accrued and unpaid interest to, but excluding, the date of redemption. If interest due on the Subordinated Notes is deemed to no
longer be deductible in the U.S., a “Tax Redemption Event,” the Subordinated Notes may be redeemed, in whole, but not in
part, within 120 days of the occurrence of such event at a redemption price equal to their principal amount plus accrued and
unpaid interest to, but excluding, the date of redemption. In addition, the Subordinated Notes may be redeemed, in whole, but
not in part, at any time prior to May 15, 2026, within 90 days of the rating agencies determining that the Subordinated Notes
should no longer receive partial equity treatment pursuant to the rating agency’s criteria, a “rating agency event,” at a
redemption price equal to 102 % of their principal amount plus any accrued and unpaid interest to, but excluding, the date of
redemption.
As of September 30, 2025 and December 31, 2024 , the fair value of the Subordinated Notes was $ 359.6  million and
$ 356.4  million , respectively. Fair value is based on active market quotes and the notes are classified as Level I within the fair
value hierarchy. For both the three months ended September 30, 2025 and 2024 , the Company incurred $ 5.8 million of interest
expense on the Subordinated Notes. For both the nine months ended September 30, 2025 and 2024 , the Company incurred
$ 17.6 million of interest expense on the Subordinated Notes.
Debt Covenants
The Company is subject to various financial covenants under its loan agreements including, among other items,
maintenance of a minimum amount of management fee-earning assets. The Company is also subject to various non-financial
covenants under its loan agreements and the indentures governing its senior notes. The Company was in compliance with all
financial and non-financial covenants under its various loan agreements as of September 30, 2025 .

Loans Payable of Consolidated Funds
Loans payable of Consolidated Funds primarily represent amounts due to holders of debt securities issued by the CLOs.
As of September 30, 2025 and December 31, 2024 , the following borrowings were outstanding (Dollars in millions):

45

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

 

As of September 30, 2025

 

Borrowing
Outstanding

Fair Value

Weighted
Average
Interest Rate

 

Weighted
Average
Remaining
Maturity in
Years

Senior secured notes (1)

$ 8,889.2

$ 8,825.5

5.44 %

10.74

Subordinated notes

371.1

312.1

N/A

(3)

9.82

Revolving credit facilities (2)

61.9

61.9

6.81 %

3.73

Total

$ 9,322.2

$ 9,199.5

 

 

As of December 31, 2024

 

Borrowing
Outstanding

Fair Value

Weighted
Average
Interest Rate

 

Weighted
Average
Remaining
Maturity in
Years

Senior secured notes

$ 6,732.8

$ 6,598.8

5.72 %

9.18

Subordinated notes

229.9

210.3

N/A

(3)

9.15

Revolving credit facilities (2)

55.1

55.1

7.01 %

4.53

Total

$ 7,017.8

$ 6,864.2

(1) Borrowing Outstanding as of September 30, 2025 includes $ 928.9  million of senior secured notes that are measured at amortized
cost, which approximates fair value. These senior secured notes are classified as Level III within the fair value hierarchy.
(2) Fair Value as of September 30, 2025 and December 31, 2024 reflects the amortized cost of outstanding revolving credit balances
which approximates fair value.
(3) The subordinated notes do not have contractual interest rates, but instead receive distributions from the excess cash flows of the
CLOs.
Loans payable of the CLOs are collateralized by the assets held by the CLOs and the assets of one CLO may not be used
to satisfy the liabilities of another. This collateral consisted of cash and cash equivalents, corporate loans, corporate bonds and
other securities. As of September 30, 2025 and December 31, 2024 , the fair value of the CLO assets was $ 9.6 billion and $ 7.9
billion , respectively.

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

 

As of

 

September 30,
2025

December 31,
2024

 

(Dollars in millions)

Accrued performance allocations and incentive fee related compensation

$ 4,701.7

$ 4,819.7

Accrued bonuses

228.0

335.5

Realized performance allocations and incentive fee related compensation not yet paid

225.8

183.8

Other

132.9

107.6

Total

$ 5,288.4

$ 5,446.6

46

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

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

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Realized

$ 62.9

$ 196.8

$ 505.2

$ 578.5

Unrealized

( 387.5 )

954.2

( 214.8 )

643.9

Total

$ ( 324.6 )

$ 1,151.0

$ 290.4

$ 1,222.4

8. Commitments and Contingencies

Capital Commitments
The Company and its unconsolidated affiliates have unfunded commitments totaling $ 4.0 billion as of September 30,
2025 , of which approximately $ 3.4 billion is subscribed individually by senior Carlyle professionals, advisors and other
professionals. In addition to these unfunded commitments, the Company may from time to time exercise its right to purchase
additional interests in its investment funds that become available in the ordinary course of their operations.
Under the Carlyle Global Capital Markets platform, certain subsidiaries of the Company may act as an underwriter,
syndicator or placement agent for security offerings and loan originations. The Company earns fees in connection with these
activities and bears the risk of the sale of such securities and placement of such loans, which may be longer dated. As of
September 30, 2025 , the Company had no material commitments related to the origination and syndication of loans and
securities under the Carlyle Global Capital Markets platform.

Guaranteed Loans  
From time to time, the Company or its subsidiaries may enter into agreements to guarantee certain obligations of the
investment funds related to, for example, credit facilities or equity commitments. Certain consolidated subsidiaries of the
Company are the guarantors of revolving credit facilities for certain funds in the Carlyle AlpInvest segment. The guarantee is
limited to the lesser of the total amount drawn under the credit facilities or the total of net asset value of the guarantor
subsidiaries plus any uncalled capital of the applicable general partner. The outstanding balances are secured by uncalled capital
commitments from the underlying funds and the Company believes the likelihood of any material funding under this guarantee
to be remote. The Company had no material outstanding guarantees under the credit facilities as of September 30, 2025 .
Certain consolidated subsidiaries of the Company were the guarantors of a credit agreement for a fund in the Carlyle
AlpInvest segment, with a maximum potential amount to be funded of $ 25.0  million . The credit agreement and related
guarantee expired in August 2025 with no funding required by the Company.

Contingent Obligations (Giveback)
A liability for potential repayment of previously received performance allocations of $ 44.6 million at September 30, 2025
was shown as accrued giveback obligations in the condensed consolidated balance sheets, representing the giveback obligation
that would need to be paid if the funds were liquidated at their current fair values at September 30, 2025 . However, the ultimate
giveback obligation, if any, generally is not paid until the end of a fund’s life or earlier if the giveback becomes fixed and early
payment is agreed upon by the fund’s partners (see Note 2 , Summary of Significant Accounting Policies ). The Company had
$ 11.5 million of unbilled receivables from former and current employees and senior Carlyle professionals as of September 30,
2025 related to giveback obligations. Any such receivables are collateralized by investments made by individual senior Carlyle
professionals and employees in Carlyle-sponsored funds. In addition, $ 153.9 million have been withheld from distributions of
carried interest to senior Carlyle professionals and employees for potential giveback obligations as of September 30, 2025 . Such
amounts are held on behalf of the respective current and former Carlyle employees to satisfy any givebacks they may owe and
are held by entities not included in the accompanying condensed consolidated balance sheets. Current and former senior Carlyle
professionals and employees are personally responsible for their giveback obligations. As of September 30, 2025 ,
approximately $ 11.5 million of the Company’s accrued giveback obligation is the responsibility of various current and former
senior Carlyle professionals and other former limited partners of the Carlyle Holdings partnerships, and the net accrued
giveback obligation attributable to the Company is $ 33.1 million .

47

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

If, at September 30, 2025 , all of the investments held by the Company’s Funds were deemed worthless, a possibility that
management views as remote, the amount of realized and distributed carried interest subject to potential giveback would be
$ 1.5 billion , on an after-tax basis where applicable, of which approximately $ 0.6 billion would be the responsibility of current
and former senior Carlyle professionals.

Legal Matters
In the ordinary course of business, the Company is a party to litigation, investigations, inquiries, employment-related
matters, disputes, and other potential claims. Certain of these matters are described below. The Company is not currently able to
estimate the reasonably possible amount of loss or range of loss, in excess of amounts accrued, for the matters that have not
been resolved. The Company does not believe it is probable that the outcome of any existing litigation, investigations, disputes,
or other potential claims will materially affect the Company or these financial statements in excess of amounts accrued.
The Authentix Matter
Authentix, Inc. (“Authentix”) was a majority-owned portfolio company in one of the Company’s investment funds,
Carlyle U.S. Growth Fund III, L.P. (“CGF III”). When Authentix was owned by CGF III, two of the Company’s employees
served on Authentix’s board of directors. After a lengthy sale process, Authentix was sold for an aggregate sale price of
$ 87.5  million . On August 7, 2020, certain of the former minority shareholders in Authentix filed suit in Delaware Chancery
Court, alleging that the Authentix board of directors, CGF III, and the Company breached various fiduciary duties by agreeing
to a sale of Authentix at an inopportune time and at a price that was too low. A trial before the Delaware Court of Chancery was
completed in early February 2024, and a decision was rendered in favor of the Company and all other defendants on all claims
on January 8, 2025. The plaintiffs appealed the decision to the Delaware Supreme Court on March 13, 2025. Oral argument on
the appeal was held on October 22, 2025, and a decision was rendered in favor of the Company and all other defendants on all
claims on November 5, 2025.
The Tax Receivable Agreement Matter
The Company came into existence on January 1, 2020, when its predecessor, The Carlyle Group, L.P. (the “PTP”),
converted from a partnership into a corporation (the “Conversion”). On July 29, 2022, an alleged stockholder of the Company,
the City of Pittsburgh Comprehensive Municipal Trust Fund (the “original Plaintiff”), filed suit in the Delaware Court of
Chancery, alleging a direct claim against the Company for breach of its certificate of incorporation and a derivative claim on
behalf of the Company against certain current and former officers and directors of the Company. As the original Plaintiff did
not actually own shares on the date of the Conversion, it stipulated to the dismissal of the derivative claims in October of 2025
and the Court has allowed Charles Blackburn (together with the original Plaintiff, “Plaintiffs”) to intervene as a new plaintiff
with respect to the derivative claims. The original Plaintiff continues as a plaintiff with respect to one direct claim. Plaintiffs
challenge the receipt, by certain officers of the PTP and certain directors of the general partner of the PTP, of a right to cash
payments associated with the elimination of a tax receivable agreement in connection with the Conversion. Plain tiffs are
seeking monetary damages, restitution, and an injunction preventing the Company from making any future cash payments for
the elimination of the tax receivable agreement in connection with the Conversion. By virtue of the derivative nature of the
primary claims (i.e., that the claims are aimed primarily at certain officers and directors), it is unlikely that the Company itself
will pay material damage awards based on the derivative claims, although the Company is expected to incur legal defense fees
to the extent not covered by insurance. The Delaware Court issued a ruling on the defendant’s motion to dismiss on April 24,
2024, dismissing some of the original Plaintiff’s claims but allowing most of the claims to proceed to discovery and possibly to
trial. The Company intends to contest the direct claims vigorously, and the officer and director defendants intend to continue
contesting the derivative claims vigorously.
General
The Company currently is and expects to continue to be, from time to time, subject to examinations, formal and informal
inquiries, and investigations by various U.S. and non-U.S. governmental and regulatory agencies, including but not limited to,
the SEC, Department of Justice, state attorneys general, FINRA, National Futures Association, and the U.K. Financial Conduct
Authority. The Company routinely cooperates with such examinations, inquiries and investigations, and they may result in the
commencement of civil, criminal, or administrative or other proceedings against the Company or its personnel.

48

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings and employment-
related matters, and some of the matters discussed above involve claims for potentially large and/or indeterminate amounts of
damages. Based on information known by management, management does not believe that as of the date of this filing the final
resolutions of the matters above will have a material effect upon the Company’s condensed consolidated financial statements.
However, given the potentially large and/or indeterminate amounts of damages sought in certain of these matters and the
inherent unpredictability of investigations and litigations, it is possible that an adverse outcome in certain matters could, from
time to time, have a material effect on the Company’s financial results in any particular period.
The Company accrues an estimated loss contingency liability when it is probable that such a liability has been incurred
and the amount of the loss can be reasonably estimated. As of September 30, 2025 , the Company had recorded liabilities
aggregating to approximately $ 35 million for litigation-related contingencies, regulatory examinations and inquiries, and other
matters. The Company evaluates its outstanding legal and regulatory proceedings and other matters each quarter to assess its
loss contingency accruals, and makes adjustments in such accruals, upward or downward, as appropriate, based on
management’s best judgment after consultation with counsel. There is no assurance that the Company’s accruals for loss
contingencies will not need to be adjusted in the future or that, in light of the uncertainties involved in such matters, the ultimate
resolution of these matters will not significantly exceed the accruals that the Company has recorded.
Indemnifications
In the normal course of business, the Company and its subsidiaries enter into contracts that contain a variety of
representations and warranties and provide general indemnifications. The Company’s maximum exposure under these
arrangements is unknown as this would involve future claims that may be made against the Company that have not yet
occurred. However, based on experience, the Company believes the risk of material loss to be remote.
In connection with the sale of the Company’s interest in its local Brazilian management entity in August 2021, the
Company provided a guarantee to the acquiring company of up to BRL 100.0  million ( $ 18.8  million as of September 30, 2025 )
for liabilities arising from tax-related indemnifications. This guarantee, which will expire in August 2027, would only come
into effect after all alternative remedies have been exhausted. The Company believes the likelihood of any material funding
under this guarantee to be remote.
Risks and Uncertainties
Carlyle’s funds seek investment opportunities that offer the possibility of attaining substantial capital appreciation.
Certain events particular to each industry in which the underlying investees conduct their operations, as well as general
economic, political, regulatory, and public health conditions, may have a significant negative impact on the Company’s
investments and profitability. The funds managed by the Company may also experience a slowdown in the deployment of
capital, which could adversely affect the Company’s ability to raise capital for new or successor funds and could also impact the
management fees the Company earns on its carry funds and managed accounts, and/or result in the impairment of intangible
assets and/or goodwill the case of the Company’s acquired businesses. Such events are beyond the Company’s control, and the
likelihood that they may occur and the effect on the Company cannot be predicted.
Furthermore, certain of the funds’ investments are made in private companies and there are generally no public markets
for the underlying securities at the current time. The funds’ ability to liquidate their publicly-traded investments are often
subject to limitations, including discounts that may be required to be taken on quoted prices due to the number of shares being
sold. The funds’ ability to liquidate their investments and realize value is subject to significant limitations and uncertainties,
including among others currency fluctuations and natural disasters.
The Company and the funds make investments outside of the United States. Investments outside the United States may be
subject to less developed bankruptcy, corporate, partnership and other laws (which may have the effect of disregarding or
otherwise circumventing the limited liability structures potentially causing the actions or liabilities of one fund or a portfolio
company to adversely impact the Company or an unrelated fund or portfolio company). Non-U.S. investments are subject to the
same risks associated with the Company’s U.S. investments as well as additional risks, such as fluctuations in foreign currency
exchange rates, unexpected changes in regulatory requirements, heightened risk of political and economic instability,
difficulties in managing non-U.S. investments, potentially adverse tax consequences, and the burden of complying with a wide
variety of foreign laws.

49

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Furthermore, Carlyle is exposed to economic risk concentrations related to certain large investments as well as
concentrations of investments in certain industries and geographies.
Additionally, the Company encounters credit risk. Credit risk is the risk of default by a counterparty in the Company’s
investments in debt securities, loans, leases, and derivatives that result from a borrower’s, lessee’s, or derivative counterparty’s
inability or unwillingness to make required or expected payments. The Company is subject to credit risk should a financial
institution be unable to fulfill its obligations.
The Company considers cash, cash equivalents, securities, receivables, principal equity method investments, accounts
payable, accrued expenses, other liabilities, loans, senior notes, assets, and liabilities of Consolidated Funds and contingent and
other consideration for acquisitions to be its financial instruments. Except for the senior notes, subordinated notes, and
compensatory contingent and other consideration for acquisitions, the carrying amounts reported in the condensed consolidated
balance sheets for these financial instruments equal or closely approximate their fair values. The fair value of the senior and
subordinated notes is disclosed in Note 6 , Borrowings .

9. Related Party Transactions
Du e from Affiliates and Other Receivables, Net
The Company had the following due from affiliates and other receivables at September 30, 2025 and December 31,
2024 :  

 

As of

 

September 30,
2025

December 31,
2024

 

(Dollars in millions)

Accrued incentive fees

$ 42.1

$ 33.7

Unbilled receivable for giveback obligations from current and former employees

11.5

11.5

Notes receivable and accrued interest from affiliates

26.7

46.2

Management fee receivable, net

267.4

296.4

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

393.5

417.8

Total

$ 741.2

$ 805.6

Reimbursable expenses and other receivables from certain of the unconsolidated funds and portfolio companies relate to
advisory fees receivable and expenses paid on behalf of these entities. These costs generally represent costs related to the
pursuit of actual or proposed investments, professional fees, and expenses associated with the acquisition, holding, and
disposition of the investments. The affiliates are obligated at the discretion of the Company to reimburse the expenses. Based
on management’s determination, the Company may accrue and charge interest on amounts due from affiliate accounts at
interest rates ranging up to 7.05 % as of September 30, 2025 . The accrued and charged interest to the affiliates was not
significant for any period presented.
Notes receivable includes loans that the Company has provided to certain unconsolidated funds to meet short-term
obligations to purchase investments. Notes receivable as of September 30, 2025 and December 31, 2024 also include interest-
bearing loans of $ 19.1  million and $ 22.8  million , respectively, to certain eligible Carlyle employees, which excludes Section 16
officers and other members of senior management, to finance their investments in certain Carlyle sponsored funds. These
advances accrue interest at the WSJ Prime Rate minus 1.00 % floating with a floor rate of 3.50 % ( 6.25 % as of September 30,
2025 ) and are collateralized by each borrower’s interest in the Carlyle sponsored funds.
These receivables are assessed regularly for collectability. Management fee receivable amounts determined to be
uncollectible are recorded as a reduction in revenue in the condensed consolidated statements of operations. For all other
receivables, amounts determined to be uncollectible are charged directly to general, administrative and other expenses in the
condensed consolidated statements of operations. A corresponding allowance for doubtful accounts is recorded and such
amounts were not significant for any period presented.

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Due to Affiliates
The Company had the following due to affiliates balances at September 30, 2025 and December 31, 2024 :  

 

As of

 

September 30,
2025

December 31,
2024

 

(Dollars in millions)

Due to affiliates of Consolidated Funds

$ 5.8

$ 5.3

Due to non-consolidated affiliates

113.6

134.1

Amounts owed under the tax receivable agreement

71.6

77.2

Other

23.8

25.3

Total

$ 214.8

$ 241.9

The Company has recorded obligations for amounts due to certain of its affiliates. The Company periodically offsets
expenses it has paid on behalf of its affiliates against these obligations.
In connection with the Company’s initial public offering, the Company entered into a tax receivable agreement with the
limited partners of the Carlyle Holdings partnerships whereby certain subsidiaries of the Partnership agreed to pay to the limited
partners of the Carlyle Holdings partnerships involved in any exchange transaction 85 % of the amount of cash tax savings, if
any, in U.S. federal, state and local income tax realized as a result of increases in tax basis resulting from exchanges of Carlyle
Holdings Partnership units for common units of The Carlyle Group L.P.
Other Related Party Transactions
Aircraft Transactions
Entities controlled by our co-founders own aircraft that may be used for the Company’s business in the ordinary course of
its operations. The hourly rates that the Company pays for the use of these aircraft are based on current market rates for
chartering private aircraft of the same type. The Company incurred fees for the use of these aircraft of $ 0.4 million and $ 1.4
million for the three and nine months ended September 30, 2025 , respectively, and $ 0.6 million for both the three and nine
months ended September 30, 2024 . All payments were paid directly to the manager of the aircraft, and a significant portion of
the payments were ultimately paid to or were for the benefit of certain co-founders.
BDC Preferred Shares
On May 5, 2020, the Company purchased 2,000,000 of the BDC Preferred Shares from CGBD in a private placement at a
price of $ 25 per share. Prior to the Exchange, as defined and discussed below, dividends were payable on a quarterly basis in an
initial amount equal to 7.0 % per annum payable in cash, or, at CGBD’s option, 9.0 % per annum payable in additional BDC
Preferred Shares. The BDC Preferred Shares were convertible at the Company’s option, in whole or in part, into the number of
shares of common stock equal to $ 25 per share plus any accumulated but unpaid dividends divided by an initial conversion
price of $ 9.50 per share, subject to certain adjustments.
In August 2024, to facilitate a merger between CGBD and another Carlyle-advised BDC (the “Merger”), the Company
agreed to exchange its 2,000,000 preferred shares into newly issued common shares of CGBD at a price equal to the net asset
value per common share on the date of completion of the Merger (the “Exchange”). The Merger and the Exchange were
completed on March 27, 2025, and the Company exchanged its preferred shares for 3,004,808 newly issued common shares of
CGBD based on the net asset value of $ 16.64 per common share of CGBD on that date. The preferred shares were cancelled
following the completion of the Exchange. The newly issued common shares of CGBD are subject to a tiered lock-up
agreement with a restriction period that expires in three equal tranches of the common shares over a period of two years and are
recorded at fair value using Level I inputs based on the CGBD common share price.
The Company received the final dividend distribution related to its BDC Preferred Shares in the first quarter of 2025. For
the three months ended September 30, 2024 , the Company recorded dividend income from the BDC Preferred Shares of
$ 0.9  million . For the nine months ended September 30, 2025 and 2024 , the Company recorded dividend income from the BDC

51

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Preferred Shares of $ 0.8  million and $ 2.6  million , respectively. This was included in Interest and other income in the condensed
consolidated statements of operations. The Company’s investment in the BDC Preferred Shares, which was recorded at fair
value using Level III inputs based on the estimated conversion value, was $ 53.4 million as of December 31, 2024 , and was
included in Investments, including accrued performance allocations, in the condensed consolidated balance sheets .
Other Transactions
Senior Carlyle professionals and employees are permitted to participate in co-investment entities that invest in Carlyle
funds or alongside Carlyle funds. In many cases, participation is limited by law to individuals who qualify under applicable
legal requirements. These co-investment entities generally do not require senior Carlyle professionals and employees to pay
management fees or performance allocations, however, Carlyle professionals and employees are required to pay their portion of
partnership expenses.
Carried interest income from certain funds can be distributed to senior Carlyle professionals and employees on a current
basis, but is subject to repayment by the subsidiary of the Company that acts as general partner of the fund in the event that
certain specified return thresholds are not ultimately achieved. The senior Carlyle professionals and certain other investment
professionals have personally guaranteed, subject to certain limitations, the obligation of these subsidiaries in respect of this
general partner obligation. Such guarantees are several and not joint and are limited to a particular individual’s distributions
received.
The Company does business with some of its portfolio companies; all such arrangements are on a negotiated basis.
Substantially all revenue is earned from affiliates of Carlyle.  

10. Income Taxes

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Provision (benefit) for income taxes

$ ( 26.7 )

$ 173.1

$ 98.2

$ 264.5

Effective tax rate

( 31 ) %

22 %

14 %

23 %

The effective tax rate for the three months ended September 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 and equity-based compensation deductions. The effective tax rate for the three months ended
September 30, 2025 was negative primarily due to the tax benefit from the pretax loss incurred prior to the effect of non-
controlling interest and due to the deduction related to the excess tax benefit from the vesting of restricted stock units in the
quarter . The effective tax rate for the nine months ended September 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 nine
months ended September 30, 2024 also includes an increase related to other non-deductible expenses.
As of September 30, 2025 and December 31, 2024 , the Company had federal, state, local and foreign taxes payable of
$ 90.6  million and $ 46.2  million , respectively, which is recorded as a component of accounts payable, accrued expenses and
other liabilities on the accompanying condensed consolidated balance sheets.
In the normal course of business, the Company is subject to examination by federal and certain state, local and foreign tax
regulators. With a few exceptions, as of September 30, 2025 , the Company’s U.S. federal income tax returns for the years 2021
through 2024 are open under the normal three -year statute of limitations and therefore subject to examination. State and local
tax returns are generally subject to audit from 2019 to 2024 . Foreign tax returns are generally subject to audit from 2011 to
2024 . Certain of the Company’s affiliates are currently under audit by federal, state and foreign tax authorities.
The Company does not believe that the outcome of the audits will require it to record material reserves for uncertain tax
positions or that the outcome will have a material impact on the condensed consolidated financial statements. The Company

52

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

does not believe that it has any tax positions for which it is reasonably possible that the total amounts of unrecognized tax
benefits will significantly increase or decrease within the next twelve months .
On August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was signed into law. The IRA enacted a 15%
CAMT on the “adjusted financial statement income” of certain large corporations, which became effective on January 1, 2023.
The Company does not expect the IRA to have a material impact to its provision for income taxes given that any current year
payments that would be made under CAMT would be permitted to be carried forward and used as credits in future years
resulting in a deferred tax benefit. The Company will continue to monitor as additional guidance is released by U.S. Department
of the Treasury, the Internal Revenue Service, and other standard-setting bodies.
In October 2021, the OECD introduced a 15% global minimum tax under the Pillar Two GloBE model rules. There are a
number of key provisions under the rules that became effective in 2024 and others that will be phased in during 2025. Several
OECD member countries have enacted the tax legislation based on certain elements of these rules that became effective on
January 1, 2024, and additional countries have drafted or announced an intent to implement legislation. While Pillar Two has
not had a material impact to the Company’s provision for income taxes, the rules remain subject to significant negotiation and
potential change, and the timing and ultimate impact of any such changes on our tax obligations are uncertain. The Company
will continue to monitor as additional countries enact legislation, new parts of the regime come into force or additional
guidance is released by the OECD and other standard-setting bodies.
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was signed into law. The OBBBA extends several
provisions from the 2017 Tax Cuts and Jobs Act along with other domestic and international corporate tax provisions. The
OBBBA did not have a material impact on the Company’s provision for income taxes for the three and nine months ended
September 30, 2025 , but the Company will continue to monitor as additional guidance is released by U.S. Department of the
Treasury, the Internal Revenue Service, and other standard-setting bodies.

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

 

As of

 

September
30, 2025

December 31,
2024

 

(Dollars in millions)

Non-Carlyle interests in Consolidated Funds

$ 812.9

$ 407.1

Non-Carlyle interests in majority-owned subsidiaries

412.2

334.2

Non-controlling interest in carried interest, giveback obligations and cash held for carried
interest distributions

0.4

( 0.6 )

Non-controlling interests in consolidated entities

$ 1,225.5

$ 740.7

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

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Non-Carlyle interests in Consolidated Funds

$ 91.3

$ 8.3

$ 113.2

$ 16.7

Non-Carlyle interests in majority-owned subsidiaries

20.3

11.7

35.6

37.6

Non-controlling interest in carried interest, giveback obligations and
cash held for carried interest distributions

—

—

( 0.2 )

—

Non-controlling interests in income of consolidated entities

$ 111.6

$ 20.0

$ 148.6

$ 54.3

 

53

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

12. Earnings Per Common Share
Ba sic and diluted net income per common share are calculated as follows:

 

Three Months Ended
September 30, 2025

Nine Months Ended
September 30, 2025

 

Basic

Diluted

Basic

Diluted

Net income attributable to common shares

$ 900,000

$ 900,000

$ 450,600,000

$ 450,600,000

Weighted-average common shares outstanding

360,065,837

376,487,705

359,965,320

369,932,801

Net income per common share

$ 0.00

$ 0.00

$ 1.25

$ 1.22

Three Months Ended
September 30, 2024

Nine Months Ended
September 30, 2024

Basic

Diluted

Basic

Diluted

Net income attributable to common shares

$ 595,700,000

$ 595,700,000

$ 809,500,000

$ 809,500,000

Weighted-average common shares outstanding

357,689,521

364,789,752

358,966,961

367,073,705

Net income per common share

$ 1.67

$ 1.63

$ 2.26

$ 2.21

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

 

Three Months Ended
September 30, 2025

Nine Months Ended
September 30, 2025

 

Basic

Diluted

Basic

Diluted

The Carlyle Group Inc. weighted-average common shares outstanding

360,065,837

360,065,837

359,965,320

359,965,320

Unvested restricted stock units

—

6,763,578

—

6,287,811

Issuable common shares and performance-vesting restricted stock units

—

9,658,290

—

3,679,670

Weighted-average common shares outstanding

360,065,837

376,487,705

359,965,320

369,932,801

Three Months Ended
September 30, 2024

Nine Months Ended
September 30, 2024

Basic

Diluted

Basic

Diluted

The Carlyle Group Inc. weighted-average common shares outstanding

357,689,521

357,689,521

358,966,961

358,966,961

Unvested restricted stock units

—

5,692,912

—

6,766,273

Issuable common shares and performance-vesting restricted stock units

—

1,407,319

—

1,340,471

Weighted-average common shares outstanding

357,689,521

364,789,752

358,966,961

367,073,705

The Company applies the treasury stock method to determine the dilutive weighted-average common shares represented
by the unvested restricted stock units. Also included in the determination of dilutive weighted-average common shares are
issuable common shares associated with the Company’s investment in NGP and performance-vesting restricted stock units.

13. Equity
Share Repurchase Program
The Board of Directors reset the total repurchase authorization of the Company’s previously approved share repurchase
program to $ 1.4  billion in shares of the Company’s common stock, effective as of February 6, 2024. Under the share repurchase
program, shares of the Company’s common stock may be repurchased from time to time in open market transactions, in
privately negotiated transactions, or otherwise, including through Rule 10b5-1 plans. The timing and actual number of shares of
common stock repurchased will depend on a variety of factors, including legal requirements and price, economic, and market
conditions. In addition to repurchases of common stock, the share repurchase program is used for the payment of tax
withholding amounts upon net share settlement of equity-based awards granted pursuant to our Equity Incentive Plan or
otherwise based on the value of shares withheld that would have otherwise been issued to the award holder. The share
repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. As of

54

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

September 30, 2025 , $ 369.3 million of repurchase capacity remained under the program, which reflects both common shares
repurchased and shares retired in connection with the net share settlement of equity-based awards. The following table presents
the Company’s shares that have been repurchased or retired as a result of net share settlement of equity-based awards during the
three and nine months ended September 30, 2025 and 2024 . Dollar amounts exclude the impact of excise taxes.

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

2025

2024

Shares

$

Shares

$

Shares

$

Shares

$

(Dollars in millions, except share data)

Shares repurchased

1,568,399

$ 100.0

1,670,245

$ 65.0

4,236,146

$ 225.0

8,029,148

$ 345.6

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

1,693,158

102.7

1,717,966

85.5

4,620,513

257.8

2,833,113

133.2

Total

3,261,557

$ 202.7

3,388,211

$ 150.5

8,856,659

$ 482.8

10,862,261

$ 478.8

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

Dividend Record Date

Dividend Payment Date

Dividend per Common
Share

Dividend to Common
Stockholders

(Dollars in millions, except per share data)

May 14, 2024

May 21, 2024

$ 0.35

$ 125.6

August 16, 2024

August 26, 2024

0.35

125.5

November 18, 2024

November 25, 2024

0.35

125.2

February 21, 2025

February 28, 2025

0.35

126.4

Total 2024 Dividend Year

$ 1.40

$ 502.7

May 19, 2025

May 27, 2025

$ 0.35

$ 126.3

August 18, 2025

August 28, 2025

0.35

126.5

November 10, 2025

November 19, 2025

0.35

126.1

Total 2025 Dividend Year (through Q3 2025)

$ 1.05

$ 378.9

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

14. Equity-Based Compensation
The Carlyle Group Inc. Amended and Restated 2012 Equity Incentive Plan (the “Equity Incentive Plan,” initially adopted
in May 2012 and as most recently amended and restated on May 29, 2024) is a source of equity-based awards permitting the
Company to grant to Carlyle employees, directors and consultants non-qualified options, share appreciation rights, common
shares, restricted stock units and other awards based on the Company’s shares of common stock. A total of 58,800,000 shares of
common stock are authorized for the grant of awards under the Equity Incentive Plan, of which a total of 26,197,170 shares of
the Company’s common stock remain available for grant as of September 30, 2025 .

55

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

A summary of the status of the Company’s non-vested equity-based awards as of September 30, 2025 and a summary of
changes for the nine months ended September 30, 2025 , are presented below:

Unvested Shares

Performance-
Vesting
Restricted
Stock Units

Weighted-
Average
Grant Date
Fair Value

Restricted
Stock
Units

Weighted-
Average
Grant Date
Fair Value

Unvested
Common
Shares

Weighted-
Average
Grant Date
Fair Value

Balance, December 31, 2024

16,940,150

$ 25.41

13,966,488

$ 37.97

458,906

$ 39.35

Granted (1)

437,401

$ 36.20

4,692,582

$ 55.82

171,891

$ 56.33

Vested (2)

5,362,679

$ 30.83

6,213,897

$ 35.54

232,959

$ 36.87

Forfeited

484,304

$ 23.37

258,349

$ 41.76

—

$ —

Balance, September 30, 2025

11,530,568

$ 23.39

12,186,824

$ 46.01

397,838

$ 46.04

(1) Includes shares reserved for issuance upon settlement of dividend-equivalent rights carried by certain restricted stock units concurrently
with the settlement of the restricted stock units for shares.
(2) Includes 4,620,513 shares that were retired in connection with the net share settlement of equity-based awards. The Company paid
$ 257.8 million of taxes related to the net share settlement of equity-based awards during the nine months ended September 30, 2025 ,
which is included within financing activities in the condensed consolidated statements of cash flows.
The Company recorded equity-based compensation expense, net of forfeitures, for restricted stock units of $ 90.7 million
and $ 121.6  million for the three months ended September 30, 2025 and 2024 , respectively, with $ 15.9  million and
$ 23.1  million of corresponding deferred tax benefits, respectively. The Company recorded equity-based compensation expense,
net of forfeitures, for restricted stock units of $ 287.1 million and $ 355.1  million for the nine months ended September 30, 2025
and 2024 , respectively, with $ 52.6  million and $ 66.9  million of corresponding deferred tax benefits, respectively. As of
September 30, 2025 , the total unrecognized equity-based compensation expense related to unvested restricted stock units was
$ 457.8 million , which is expected to be recognized over a weighted-average term of 1.9 years .

15. Segment Reporting
Car lyle conducts its operations through three reportable segments:
Global Private Equity  – The Global Private Equity segment advises buyout, growth, real estate, and infrastructure &
natural resources funds. The segment also includes the NGP Carry Funds advised by NGP.
Global Credit  –  The Global Credit segment advises funds and vehicles that pursue investment strategies including
insurance solutions, liquid credit, opportunistic credit, direct lending, asset-backed finance, aviation finance,
infrastructure credit, cross-platform credit products, and global capital markets.
Carlyle AlpInvest – The Carlyle AlpInvest segment advises global private equity programs that pursue secondary
purchases and financing of existing portfolios, managed co-investment programs, and primary fund investments.
The Company’s reportable business segments are differentiated by their various investment focuses and strategies.
Overhead costs are generally allocated based on cash-based compensation and benefits expense for each segment. The
Company’s earnings from its investment in NGP are presented in the respective operating captions within the Global Private
Equity segment.
Distributable Earnings . Distributable Earnings, or “DE,” is a key performance benchmark used in the Company’s
industry and is evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief Executive Officer, in
making resource deployment and compensation decisions and in assessing performance of the Company’s three reportable
segments. The CODM also uses DE in budgeting, forecasting, and the overall management of the Company’s segments. The
CODM believes that reporting DE is helpful to understanding the Company’s business and that investors should review the
same supplemental financial measure that the CODM uses to analyze the Company’s segment performance. DE is intended to
show the amount of net realized earnings without the effects of the consolidation of the Consolidated Funds. DE is derived from
the Company’s segment reported results and is used to assess performance.
Distributable Earnings differs from income (loss) before provision for income taxes computed in accordance with U.S.
GAAP in that it includes certain tax expenses associated with certain foreign performance revenues (composed of performance

56

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

allocations and incentive fees), and does not include unrealized performance allocations and related compensation expense,
unrealized principal investment income, equity-based compensation expense, net income (loss) attributable to non-Carlyle
interests in consolidated entities, or charges (credits) related to Carlyle corporate actions and non-recurring items that affect
period-to-period comparability and are not reflective of the Company’s operational performance. Charges (credits) related to
Carlyle corporate actions and non-recurring items include: charges associated with the Conversion, charges (credits) associated
with acquisitions, dispositions or strategic investments, changes in the tax receivable agreement liability, amortization and any
impairment charges associated with acquired intangible assets, transaction costs associated with acquisitions and dispositions,
charges associated with earn-outs and contingent consideration including gains and losses associated with the estimated fair
value of contingent considerations issued in conjunction with acquisitions or strategic investments, impairment charges
associated with lease right-of-use assets, gains and losses from the retirement of debt, charges associated with contract
terminations and employee severance, and non-recurring items that affect period-to-period comparability and are not reflective
of the Company’s operating performance. Management believes the inclusion or exclusion of these items provides investors
with a meaningful indication of the Company’s core operating performance.
Fee Related Earnings . Fee Related Earnings, or “FRE,” is a component of DE and is used to assess the ability of the
business to cover base compensation and operating expenses from total fee revenues. FRE adjusts DE to exclude net realized
performance revenues, realized principal investment income, and net interest (interest income less interest expense). Fee
Related Earnings includes fee related performance revenues and related compensation expense. Fee related performance
revenues represent the realized portion of performance revenues that are measured and received on a recurring basis, are not
dependent on realization events, and which have no risk of giveback.
Asset information by segment is not disclosed because this information is not used by the CODM to make resource
deployment decisions or evaluate the performance of the Company’s segments.

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

The following tables present the financial data for the Company’s three reportable segments for the three and nine months
ended September 30, 2025 :

Three Months Ended September 30, 2025

Global
Private
Equity

Global
Credit

Carlyle
AlpInvest

Total

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 295.0

$ 146.5

$ 132.4

$ 573.9

Portfolio advisory and transaction fees, net and other

6.5

25.6

0.2

32.3

Fee related performance revenues

—

28.6

18.9

47.5

Total fund level fee revenues

301.5

200.7

151.5

653.7

Realized performance revenues

38.0

8.2

15.5

61.7

Realized principal investment income (loss)

( 0.4 )

42.8

7.1

49.5

Interest income

7.4

8.1

2.1

17.6

Total revenues

346.5

259.8

176.2

782.5

Segment Expenses

Compensation and benefits

Cash-based compensation and benefits

97.4

83.8

39.3

220.5

Realized performance revenues related compensation

24.2

4.7

13.7

42.6

Total compensation and benefits

121.6

88.5

53.0

263.1

General, administrative, and other indirect expenses (1)

56.2

28.5

22.6

107.3

Depreciation and amortization expense

7.6

4.3

2.1

14.0

Interest expense

14.3

12.1

3.3

29.7

Total expenses

199.7

133.4

81.0

414.1

(=) Distributable Earnings

$ 146.8

$ 126.4

$ 95.2

$ 368.4

(-) Realized Net Performance Revenues

13.8

3.5

1.8

19.1

(-) Realized Principal Investment Income

( 0.4 )

42.8

7.1

49.5

(+) Net Interest

6.9

4.0

1.2

12.1

(=) Fee Related Earnings

$ 140.3

$ 84.1

$ 87.5

$ 311.9

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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Nine Months Ended September 30, 2025

Global
Private
Equity

Global
Credit

Carlyle
AlpInvest

Total

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 880.4

$ 456.1

$ 352.5

$ 1,689.0

Portfolio advisory and transaction fees, net and other

27.9

130.0

0.2

158.1

Fee related performance revenues

—

86.0

39.7

125.7

Total fund level fee revenues

908.3

672.1

392.4

1,972.8

Realized performance revenues

599.8

26.6

50.2

676.6

Realized principal investment income

27.1

60.3

25.6

113.0

Interest income

18.9

22.1

6.3

47.3

Total revenues

1,554.1

781.1

474.5

2,809.7

Segment Expenses

Compensation and benefits

Cash-based compensation and benefits

306.5

261.0

110.8

678.3

Realized performance revenues related compensation

385.5

15.7

41.2

442.4

Total compensation and benefits

692.0

276.7

152.0

1,120.7

General, administrative, and other indirect expenses (1)

155.2

99.7

54.3

309.2

Depreciation and amortization expense

21.5

12.0

6.0

39.5

Interest expense

41.1

34.9

9.5

85.5

Total expenses

909.8

423.3

221.8

1,554.9

(=) Distributable Earnings

$ 644.3

$ 357.8

$ 252.7

$ 1,254.8

(-) Realized Net Performance Revenues

214.3

10.9

9.0

234.2

(-) Realized Principal Investment Income

27.1

60.3

25.6

113.0

(+) Net Interest

22.2

12.8

3.2

38.2

(=) Fee Related Earnings

$ 425.1

$ 299.4

$ 221.3

$ 945.8

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

59

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

The following tables present the financial data for the Company’s three reportable segments for the three and nine months
ended September 30, 2024 :

Three Months Ended September 30, 2024

Global
Private
Equity

Global
Credit

Carlyle
AlpInvest

Total

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 298.6

$ 142.8

$ 85.1

$ 526.5

Portfolio advisory and transaction fees, net and other

5.9

21.4

0.1

27.4

Fee related performance revenues

—

29.0

7.3

36.3

Total fund level fee revenues

304.5

193.2

92.5

590.2

Realized performance revenues

225.2

11.5

39.2

275.9

Realized principal investment income (loss)

10.0

( 2.8 )

1.9

9.1

Interest income

7.7

9.8

2.3

19.8

Total revenues

547.4

211.7

135.9

895.0

Segment Expenses

Compensation and benefits

Cash-based compensation and benefits

101.1

76.5

30.0

207.6

Realized performance revenues related compensation

141.5

6.9

36.9

185.3

Total compensation and benefits

242.6

83.4

66.9

392.9

General, administrative, and other indirect expenses (1)

48.5

31.2

13.2

92.9

Depreciation and amortization expense

6.7

3.3

1.8

11.8

Interest expense

14.1

13.3

2.9

30.3

Total expenses

311.9

131.2

84.8

527.9

(=) Distributable Earnings

$ 235.5

$ 80.5

$ 51.1

$ 367.1

(-) Realized Net Performance Revenues

83.7

4.6

2.3

90.6

(-) Realized Principal Investment Income (Loss)

10.0

( 2.8 )

1.9

9.1

(+) Net Interest

6.4

3.5

0.6

10.5

(=) Fee Related Earnings

$ 148.2

$ 82.2

$ 47.5

$ 277.9

60

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

 

Nine Months Ended September 30, 2024

Global
Private
Equity

Global
Credit

Carlyle
AlpInvest

Total

 

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 908.4

$ 420.5

$ 238.7

$ 1,567.6

Portfolio advisory and transaction fees, net and other

16.8

66.0

0.2

83.0

Fee related performance revenues

6.9

81.2

10.4

98.5

Total fund level fee revenues

932.1

567.7

249.3

1,749.1

Realized performance revenues

728.7

19.0

82.5

830.2

Realized principal investment income

35.7

30.2

3.5

69.4

Interest income

21.8

30.6

5.8

58.2

Total revenues

1,718.3

647.5

341.1

2,706.9

Segment Expenses

Compensation and benefits

Cash-based compensation and benefits

314.3

227.3

85.6

627.2

Realized performance revenues related compensation

457.2

11.5

73.2

541.9

Total compensation and benefits

771.5

238.8

158.8

1,169.1

General, administrative, and other indirect expenses (1)

137.3

96.1

37.1

270.5

Depreciation and amortization expense

19.6

9.6

5.0

34.2

Interest expense

42.2

40.6

8.7

91.5

Total expenses

970.6

385.1

209.6

1,565.3

(=) Distributable Earnings

$ 747.7

$ 262.4

$ 131.5

$ 1,141.6

(-) Realized Net Performance Revenues

271.5

7.5

9.3

288.3

(-) Realized Principal Investment Income

35.7

30.2

3.5

69.4

(+) Net Interest

20.4

10.0

2.9

33.3

(=) Fee Related Earnings

$ 460.9

$ 234.7

$ 121.6

$ 817.2

(1) General, administrative, and other indirect expenses primarily comprised professional fees, rent and other office expenses, IT expenses, travel and
entertainment expenses, and fundraising costs.
 
The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes for the
three months ended September 30, 2025 and 2024 :

 

Three Months Ended September 30, 2025

 

Total
Reportable
Segments

Consolidated
Funds

Reconciling
Items

Carlyle
Consolidated

 

 

(Dollars in millions)

Revenues

$ 782.5

$ 163.4

$ ( 613.2 )

(a) 

$ 332.7

Expenses

$ 414.1

$ 195.8

$ ( 239.8 )

(b) 

$ 370.1

Other income (loss)

$ —

$ 123.2

$ —

(c) 

$ 123.2

Distributable earnings

$ 368.4

$ 90.8

$ ( 373.4 )

(d) 

$ 85.8

61

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

 

Three Months Ended September 30, 2024

 

Total
Reportable
Segments

Consolidated
Funds

Reconciling
Items

Carlyle
Consolidated

 

 

(Dollars in millions)

Revenues

$ 895.0

$ 180.1

$ 1,560.1

(a) 

$ 2,635.2

Expenses

$ 527.9

$ 160.6

$ 1,160.4

(b) 

$ 1,848.9

Other income (loss)

$ —

$ 2.5

$ —

(c) 

$ 2.5

Distributable earnings

$ 367.1

$ 22.0

$ 399.7

(d) 

$ 788.8

The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes for the
nine months ended September 30, 2025 and 2024 .

 

Nine Months Ended September 30, 2025

 

Total
Reportable
Segments

Consolidated
Funds

Reconciling
Items

Carlyle
Consolidated

 

 

(Dollars in millions)

Revenues

$ 2,809.7

$ 459.8

$ ( 390.8 )

(a) 

$ 2,878.7

Expenses

$ 1,554.9

$ 505.1

$ 297.4

(b) 

$ 2,357.4

Other income (loss)

$ —

$ 176.1

$ —

(c) 

$ 176.1

Distributable earnings

$ 1,254.8

$ 130.8

$ ( 688.2 )

(d) 

$ 697.4

 

Nine Months Ended September 30, 2024

 

Total
Reportable
Segments

Consolidated
Funds

Reconciling
Items

 

Carlyle
Consolidated

 

 

 

(Dollars in millions)

Revenues

$ 2,706.9

$ 510.6

$ 1,175.8

(a) 

$ 4,393.3

Expenses

$ 1,565.3

$ 464.6

$ 1,225.5

(b) 

$ 3,255.4

Other income (loss)

$ —

$ ( 9.6 )

$ —

(c) 

$ ( 9.6 )

Distributable earnings

$ 1,141.6

$ 36.4

$ ( 49.7 )

(d) 

$ 1,128.3

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

62

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

(Dollars in millions)

Unrealized performance and fee related performance revenues

$ ( 632.0 )

$ 1,495.1

$ ( 498.3 )

$ 1,020.9

Unrealized principal investment income (loss)

( 7.4 )

1.8

35.1

54.3

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

( 12.3 )

( 3.5 )

( 120.8 )

( 10.5 )

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

56.5

79.0

254.3

156.7

Elimination of revenues of Consolidated Funds

( 18.0 )

( 12.3 )

( 61.1 )

( 45.6 )

$ ( 613.2 )

$ 1,560.1

$ ( 390.8 )

$ 1,175.8

The following table reconciles the total segments fund level fee revenue to the most directly comparable U.S. GAAP
measure, the Company’s consolidated fund management fees, for the three and nine months ended September 30, 2025
and 2024 .

Three Months Ended
September 30,

Nine Months Ended
September 30,

2025

2024

2025

2024

(Dollars in millions)

Total Reportable Segments - Fund level fee revenues

$ 653.7

$ 590.2

$ 1,972.8

$ 1,749.1

Adjustments (1)

( 70.4 )

( 57.5 )

( 183.0 )

( 158.4 )

Carlyle Consolidated - Fund management fees

$ 583.3

$ 532.7

$ 1,789.8

$ 1,590.7

(1) Adjustments represent the reclassification of NGP management fees from principal investment income, the
reclassification of fee related performance revenues from business development companies and other products,
management fees earned from Consolidated Funds which were eliminated in consolidation to arrive at the
Company’s fund management fees, and the reclassification of certain amounts included in portfolio advisory
fees, net and other in the segment results that are included in interest and other income in the U.S. GAAP results.
(b) The Expenses adjustment represents the elimination of intercompany expenses of the Consolidated Funds payable to the
Company, the inclusion of equity-based compensation, certain tax expenses associated with realized performance
revenues related compensation, and unrealized performance revenues related compensation, adjustments related to
expenses associated with the investment in NGP Management that are included in operating captions, adjustments to
reflect the reimbursement of certain costs incurred on behalf of Carlyle funds on a net basis, changes in the tax
receivable agreement liability, and charges and credits associated with Carlyle corporate actions and non-recurring
items, as detailed below:

63

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

(Dollars in millions)

Unrealized performance and fee related performance revenue
compensation expense

$ ( 387.4 )

$ 930.7

$ ( 288.0 )

$ 634.5

Equity-based compensation

88.2

122.0

289.3

360.4

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

46.2

37.4

216.7

103.5

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

( 0.4 )

( 0.2 )

( 0.5 )

( 1.4 )

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

23.9

63.8

98.1

108.6

Other adjustments

8.2

5.3

25.3

45.8

Elimination of expenses of Consolidated Funds

( 18.5 )

1.4

( 43.5 )

( 25.9 )

$ ( 239.8 )

$ 1,160.4

$ 297.4

$ 1,225.5

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

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

(Dollars in millions)

Income (loss) before provision for income taxes

$ 85.8

$ 788.8

$ 697.4

$ 1,128.3

Adjustments:

Net unrealized performance and fee related performance revenues

244.6

( 564.4 )

210.3

( 386.4 )

Unrealized principal investment (income) loss

7.4

( 1.8 )

( 35.1 )

( 54.3 )

Equity-based compensation (1)

88.2

122.0

289.3

360.4

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

46.2

37.4

216.7

103.5

Tax (expense) benefit associated with certain foreign performance revenues

( 0.4 )

( 0.2 )

( 0.5 )

( 1.4 )

Net income attributable to non-controlling interests in consolidated entities

( 111.6 )

( 20.0 )

( 148.6 )

( 54.3 )

Other adjustments (2)

8.2

5.3

25.3

45.8

Distributable Earnings

$ 368.4

$ 367.1

$ 1,254.8

$ 1,141.6

Realized performance revenues, net of related compensation (3)

19.1

90.6

234.2

288.3

Realized principal investment income (3)

49.5

9.1

113.0

69.4

Net interest

12.1

10.5

38.2

33.3

Fee Related Earnings

$ 311.9

$ 277.9

$ 945.8

$ 817.2

(1) Equity-based compensation for the three and nine months ended September 30, 2025 and 2024 included amounts that are
presented in principal investment income and general, administrative and other expenses in the Company’s condensed
consolidated statements of operations.
(2) Includes charges (credits) related to Carlyle corporate actions and non-recurring items that affect period-to-period
comparability and are not reflective of the Company’s operating performance.
(3) See reconciliation to most directly comparable U.S. GAAP measure below:

64

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Three Months Ended September 30, 2025

Carlyle
Consolidated

Adjustments  (4)

Total
Reportable
Segments

(Dollars in millions)

Performance revenues

$ ( 606.7 )

$ 668.4

$ 61.7

Performance revenues related compensation expense

( 324.6 )

367.2

42.6

Net performance revenues

$ ( 282.1 )

$ 301.2

$ 19.1

Principal investment income (loss)

$ 87.7

$ ( 38.2 )

$ 49.5

Nine Months Ended September 30, 2025

Carlyle
Consolidated

Adjustments  (4)

Total
Reportable
Segments

(Dollars in millions)

Performance revenues

$ 255.0

$ 421.6

$ 676.6

Performance revenues related compensation expense

290.4

152.0

442.4

Net performance revenues

$ ( 35.4 )

$ 269.6

$ 234.2

Principal investment income (loss)

$ 79.8

$ 33.2

$ 113.0

Three Months Ended September 30, 2024

Carlyle
Consolidated

Adjustments  (4)

Total
Reportable
Segments

(Dollars in millions)

Performance revenues

$ 1,785.5

$ ( 1,509.6 )

$ 275.9

Performance revenues related compensation expense

1,151.0

( 965.7 )

185.3

Net performance revenues

$ 634.5

$ ( 543.9 )

$ 90.6

Principal investment income (loss)

$ 46.0

$ ( 36.9 )

$ 9.1

Nine Months Ended September 30, 2024

Carlyle
Consolidated

Adjustments  (4)

Total
Reportable
Segments

(Dollars in millions)

Performance revenues

$ 1,826.7

$ ( 996.5 )

$ 830.2

Performance revenues related compensation expense

1,222.4

( 680.5 )

541.9

Net performance revenues

$ 604.3

$ ( 316.0 )

$ 288.3

Principal investment income (loss)

$ 207.2

$ ( 137.8 )

$ 69.4

( 4)  Adjustments to performance revenues and principal investment income (loss) relate to (i) unrealized performance allocations
net of related compensation expense and unrealized principal investment income, which are excluded from the segment
results, (ii) amounts earned from the Consolidated Funds, which were eliminated in the U.S. GAAP consolidation but were
included in the segment results, (iii) amounts attributable to non-controlling interests in consolidated entities, which were
excluded from the segment results, (iv) the reclassification of NGP performance revenues, which are included in principal
investment income in the U.S. GAAP financial statements, (v) the reclassification of fee related performance revenues, which
are included in fund level fee revenues in the segment results, and (vi) the reclassification of tax expenses associated with
certain foreign performance revenues. Adjustments to principal investment income (loss) also include the reclassification of
earnings for the investments in NGP Management and its affiliates to the appropriate operating captions for the segment
results, the exclusion of charges associated with the investment in NGP Management and its affiliates that are excluded from
the segment results and the exclusion of the principal investment loss from dilution of the indirect investment in Fortitude.

65

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

16. Subsequent Events
In October 2025 , the Company’s Board of Directors declared a quarterly dividend of $ 0.35 per share of common stock to
common stockholders of record at the close of business on November 10, 2025 , payable on November 19, 2025 .

66

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

17. Supplemental Financial Information
The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the
Company’s financial position as of September 30, 2025 and December 31, 2024 and results of operations for the three and nine
months ended September 30, 2025 and 2024 . The supplemental statement of cash flows is presented without effects of the
Consolidated Funds.

 

As of September 30, 2025

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Assets

Cash and cash equivalents

$ 2,221.7

$ —

$ —

$ 2,221.7

Cash and cash equivalents held at Consolidated Funds

—

1,037.3

—

1,037.3

Investments, including accrued performance allocations of $ 6,956.3

11,436.1

—

( 920.7 )

10,515.4

Investments of Consolidated Funds

—

11,083.3

—

11,083.3

Due from affiliates and other receivables, net

1,038.7

3.3

( 300.8 )

741.2

Due from affiliates and other receivables of Consolidated Funds, net

—

259.4

—

259.4

Fixed assets, net

199.1

—

—

199.1

Lease right-of-use assets, net

340.6

—

—

340.6

Deposits and other

84.6

5.0

—

89.6

Intangible assets, net

540.0

—

—

540.0

Deferred tax assets

28.3

—

—

28.3

Total assets

$ 15,889.1

$ 12,388.3

$ ( 1,221.5 )

$ 27,055.9

Liabilities and equity

Debt obligations

$ 2,984.2

$ —

$ —

$ 2,984.2

Loans payable of Consolidated Funds

—

9,487.3

( 287.8 )

9,199.5

Accounts payable, accrued expenses and other liabilities

433.8

—

—

433.8

Accrued compensation and benefits

5,288.4

—

—

5,288.4

Due to affiliates

209.0

5.8

—

214.8

Deferred revenue

373.0

—

—

373.0

Deferred tax liabilities

80.7

—

—

80.7

Other liabilities of Consolidated Funds

—

1,112.3

( 0.1 )

1,112.2

Lease liabilities

479.6

—

—

479.6

Accrued giveback obligations

44.6

—

—

44.6

Total liabilities

9,893.3

10,605.4

( 287.9 )

20,210.8

Common stock

3.6

—

—

3.6

Additional paid-in capital

4,194.7

949.1

( 949.1 )

4,194.7

Retained earnings

1,617.8

—

—

1,617.8

Accumulated other comprehensive loss

( 232.9 )

20.9

15.5

( 196.5 )

Non-controlling interests in consolidated entities

412.6

812.9

—

1,225.5

Total equity

5,995.8

1,782.9

( 933.6 )

6,845.1

Total liabilities and equity

$ 15,889.1

$ 12,388.3

$ ( 1,221.5 )

$ 27,055.9

67

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

As of December 31, 2024

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Assets

Cash and cash equivalents

$ 1,266.0

$ —

$ —

$ 1,266.0

Cash and cash equivalents held at Consolidated Funds

—

830.4

—

830.4

Investments, including accrued performance allocations of $ 7,053.5

11,324.1

—

( 387.4 )

10,936.7

Investments of Consolidated Funds

—

7,782.4

—

7,782.4

Due from affiliates and other receivables, net

1,111.0

—

( 305.4 )

805.6

Due from affiliates and other receivables of Consolidated Funds, net

—

237.1

—

237.1

Fixed assets, net

185.3

—

—

185.3

Lease right-of-use assets, net

341.4

—

—

341.4

Deposits and other

55.1

1.8

—

56.9

Intangible assets, net

634.1

—

—

634.1

Deferred tax assets

27.6

—

—

27.6

Total assets

$ 14,944.6

$ 8,851.7

$ ( 692.8 )

$ 23,103.5

Liabilities and equity

Debt obligations

$ 2,143.5

$ —

$ —

$ 2,143.5

Loans payable of Consolidated Funds

—

7,161.6

( 297.4 )

6,864.2

Accounts payable, accrued expenses and other liabilities

389.8

—

—

389.8

Accrued compensation and benefits

5,446.6

—

—

5,446.6

Due to affiliates

236.6

5.3

—

241.9

Deferred revenue

138.7

—

—

138.7

Deferred tax liabilities

137.0

—

—

137.0

Other liabilities of Consolidated Funds

—

861.7

( 0.1 )

861.6

Lease liabilities

488.6

—

—

488.6

Accrued giveback obligations

44.0

—

—

44.0

Total liabilities

9,024.8

8,028.6

( 297.5 )

16,755.9

Common stock

3.6

—

—

3.6

Additional paid-in capital

3,892.3

423.5

( 423.5 )

3,892.3

Retained earnings

2,040.8

—

—

2,040.8

Accumulated other comprehensive loss

( 350.5 )

( 7.5 )

28.2

( 329.8 )

Non-controlling interests in consolidated entities

333.6

407.1

—

740.7

Total equity

5,919.8

823.1

( 395.3 )

6,347.6

Total liabilities and equity

$ 14,944.6

$ 8,851.7

$ ( 692.8 )

$ 23,103.5

 
 

68

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

 

Three Months Ended September 30, 2025

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Revenues

Fund management fees

$ 600.0

$ —

$ ( 16.7 )

$ 583.3

Incentive fees

53.8

—

( 2.4 )

51.4

Investment income

Performance allocations

( 598.2 )

—

( 8.5 )

( 606.7 )

Principal investment income

71.4

—

16.3

87.7

Total investment income (loss)

( 526.8 )

—

7.8

( 519.0 )

Interest and other income

60.3

—

( 6.7 )

53.6

Interest and other income of Consolidated Funds

—

163.4

—

163.4

Total revenues

187.3

163.4

( 18.0 )

332.7

Expenses

Compensation and benefits

Cash-based compensation and benefits

216.2

—

—

216.2

Equity-based compensation

90.7

—

—

90.7

Performance allocations and incentive fee related compensation

( 324.6 )

—

—

( 324.6 )

Total compensation and benefits

( 17.7 )

—

—

( 17.7 )

General, administrative and other expenses

180.7

—

—

180.7

Interest

29.8

—

—

29.8

Interest and other expenses of Consolidated Funds

—

195.8

( 18.5 )

177.3

Total expenses

192.8

195.8

( 18.5 )

370.1

Other income

Net investment income of Consolidated Funds

—

123.2

—

123.2

Income (loss) before provision (benefit) for income taxes

( 5.5 )

90.8

0.5

85.8

Provision (benefit) for income taxes

( 26.7 )

—

—

( 26.7 )

Net income

21.2

90.8

0.5

112.5

Net income attributable to non-controlling interests in consolidated
entities

20.3

—

91.3

111.6

Net income attributable to The Carlyle Group Inc.

$ 0.9

$ 90.8

$ ( 90.8 )

$ 0.9

69

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

 

Nine Months Ended September 30, 2025

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Revenues

Fund management fees

$ 1,822.4

$ —

$ ( 32.6 )

$ 1,789.8

Incentive fees

138.0

—

( 2.9 )

135.1

Investment income

Performance allocations

265.2

—

( 10.2 )

255.0

Principal investment income

77.1

—

2.7

79.8

Total investment income

342.3

—

( 7.5 )

334.8

Interest and other income

177.3

—

( 18.1 )

159.2

Interest and other income of Consolidated Funds

—

459.8

—

459.8

Total revenues

2,480.0

459.8

( 61.1 )

2,878.7

Expenses

Compensation and benefits

Cash-based compensation and benefits

673.0

—

—

673.0

Equity-based compensation

287.1

—

—

287.1

Performance allocations and incentive fee related compensation

290.4

—

—

290.4

Total compensation and benefits

1,250.5

—

—

1,250.5

General, administrative and other expenses

559.8

—

—

559.8

Interest

85.6

—

—

85.6

Interest and other expenses of Consolidated Funds

—

505.1

( 43.5 )

461.6

Other non-operating income

( 0.1 )

—

—

( 0.1 )

Total expenses

1,895.8

505.1

( 43.5 )

2,357.4

Other income

Net investment income of Consolidated Funds

—

176.1

—

176.1

Income before provision for income taxes

584.2

130.8

( 17.6 )

697.4

Provision for income taxes

98.2

—

—

98.2

Net income

486.0

130.8

( 17.6 )

599.2

Net income attributable to non-controlling interests in consolidated
entities

35.4

—

113.2

148.6

Net income attributable to The Carlyle Group Inc.

$ 450.6

$ 130.8

$ ( 130.8 )

$ 450.6

70

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Three Months Ended September 30, 2024

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

(Dollars in millions)

Revenues

Fund management fees

$ 539.1

$ —

$ ( 6.4 )

$ 532.7

Incentive fees

38.9

—

( 0.2 )

38.7

Investment income

Performance allocations

1,786.3

—

( 0.8 )

1,785.5

Principal investment income

47.4

—

( 1.4 )

46.0

Total investment income

1,833.7

—

( 2.2 )

1,831.5

Interest and other income

55.7

—

( 3.5 )

52.2

Interest and other income of Consolidated Funds

—

180.1

—

180.1

Total revenues

2,467.4

180.1

( 12.3 )

2,635.2

Expenses

Compensation and benefits

Cash-based compensation and benefits

207.5

—

—

207.5

Equity-based compensation

121.6

—

—

121.6

Performance allocations and incentive fee related compensation

1,151.0

—

—

1,151.0

Total compensation and benefits

1,480.1

—

—

1,480.1

General, administrative and other expenses

176.6

—

—

176.6

Interest

30.3

—

—

30.3

Interest and other expenses of Consolidated Funds

—

160.6

1.4

162.0

Other non-operating income

( 0.1 )

—

—

( 0.1 )

Total expenses

1,686.9

160.6

1.4

1,848.9

Other income

Net investment income of Consolidated Funds

—

2.5

—

2.5

Income before provision for income taxes

780.5

22.0

( 13.7 )

788.8

Provision for income taxes

173.1

—

—

173.1

Net income

607.4

22.0

( 13.7 )

615.7

Net income attributable to non-controlling interests in consolidated
entities

11.7

—

8.3

20.0

Net income attributable to The Carlyle Group Inc.

$ 595.7

$ 22.0

$ ( 22.0 )

$ 595.7

71

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Nine Months Ended September 30, 2024

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Revenues

Fund management fees

$ 1,610.1

$ —

$ ( 19.4 )

$ 1,590.7

Incentive fees

96.7

—

( 0.5 )

96.2

Investment income

Performance allocations

1,827.8

—

( 1.1 )

1,826.7

Principal investment income

217.8

—

( 10.6 )

207.2

Total investment income

2,045.6

—

( 11.7 )

2,033.9

Interest and other income

175.9

—

( 14.0 )

161.9

Interest and other income of Consolidated Funds

—

510.6

—

510.6

Total revenues

3,928.3

510.6

( 45.6 )

4,393.3

Expenses

Compensation and benefits

Cash-based compensation and benefits

635.7

—

—

635.7

Equity-based compensation

355.1

—

—

355.1

Performance allocations and incentive fee related compensation

1,222.4

—

—

1,222.4

Total compensation and benefits

2,213.2

—

—

2,213.2

General, administrative and other expenses

512.2

—

—

512.2

Interest

91.5

—

—

91.5

Interest and other expenses of Consolidated Funds

—

464.6

( 25.9 )

438.7

Other non-operating income

( 0.2 )

—

—

( 0.2 )

Total expenses

2,816.7

464.6

( 25.9 )

3,255.4

Other income (loss)

Net investment loss of Consolidated Funds

—

( 9.6 )

—

( 9.6 )

Income before provision for income taxes

1,111.6

36.4

( 19.7 )

1,128.3

Provision for income taxes

264.5

—

—

264.5

Net income

847.1

36.4

( 19.7 )

863.8

Net income attributable to non-controlling interests in consolidated
entities

37.6

—

16.7

54.3

Net income attributable to The Carlyle Group Inc.

$ 809.5

$ 36.4

$ ( 36.4 )

$ 809.5

 

72

Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

 

Nine Months Ended September 30,

 

2025

2024

 

(Dollars in millions)

Cash flows from operating activities

Net income

$ 486.0

$ 847.1

Adjustments to reconcile net income to net cash flows from operating activities:

Depreciation and amortization

143.1

137.0

Equity-based compensation

287.1

355.1

Non-cash performance allocations and incentive fees

2.7

( 389.1 )

Non-cash principal investment (income) loss

( 32.5 )

( 182.0 )

Other non-cash amounts

35.9

15.8

Purchases of investments

( 872.6 )

( 479.4 )

Proceeds from the sale of investments

807.6

435.7

Payments of contingent consideration

( 2.7 )

( 4.0 )

Change in deferred taxes, net

( 67.5 )

98.3

Change in due from affiliates and other receivables

( 8.1 )

( 38.2 )

Change in deposits and other

( 25.4 )

( 5.4 )

Change in accounts payable, accrued expenses and other liabilities

37.8

15.4

Change in accrued compensation and benefits

( 61.4 )

( 170.8 )

Change in due to affiliates

25.1

( 0.9 )

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

( 9.7 )

( 5.4 )

Change in deferred revenue

226.7

238.1

Net cash provided by operating activities

972.1

867.3

Cash flows from investing activities

Purchases of corporate treasury investments

—

( 5.0 )

Proceeds from corporate treasury investments

—

5.1

Purchases of fixed assets, net

( 57.4 )

( 51.0 )

Net cash used in investing activities

( 57.4 )

( 50.9 )

Cash flows from financing activities

Borrowings under credit facilities

—

10.4

Repayments under credit facilities

—

( 10.4 )

Issuance of 5.05 % senior notes due 2035, net of financing costs

792.9

—

Payments on CLO borrowings

( 52.0 )

( 73.3 )

Proceeds from CLO borrowings, net of financing costs

64.8

0.5

Dividends to common stockholders

( 379.2 )

( 377.8 )