10-Q – 2025-11-07 – cg-20250930.htm

Payment of deferred consideration for Carlyle Holdings units

—

( 68.8 )

Contributions from non-controlling interest holders

116.9

155.2

Distributions to non-controlling interest holders

( 83.9 )

( 58.9 )

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

( 482.8 )

( 478.8 )

Change in due to/from affiliates financing activities

29.4

13.3

Net cash used in financing activities

6.1

( 888.6 )

Effect of foreign exchange rate changes

39.1

9.0

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

959.9

( 63.2 )

Cash, cash equivalents and restricted cash, beginning of period

1,266.5

1,442.1

Cash, cash equivalents and restricted cash, end of period

$ 2,226.4

$ 1,378.9

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

  Cash and cash equivalents

$ 2,221.7

$ 1,376.8

  Restricted cash

4.7

2.1

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

$ 2,226.4

$ 1,378.9

  Cash and cash equivalents held at Consolidated Funds

$ 1,037.3

$ 488.5

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Unless context suggests otherwise, references in this Quarterly Report on Form 10-Q to “Carlyle,” the “Company,”
“we,” “us,” and “our” refer to The Carlyle Group Inc. and its consolidated subsidiaries. The following discussion and
analysis should be read in conjunction with the consolidated financial statements and the related notes included in this
Quarterly Report on Form 10-Q and the Annual Report on Form 10-K for the year ended December 31, 2024 .
Overview
We are one of the world’s largest global investment firms and deploy private capital across our business. We conduct our
operations through three reportable segments: Global Private Equity, Global Credit, and Carlyle AlpInvest (formerly, Global
Investment Solutions).
• Global Private Equity — Our Global Private Equity segment advises our buyout, growth, real estate, and infrastructure &
natural resources funds. The segment also includes the NGP Carry Funds advised by NGP. As of September 30, 2025 , our
Global Private Equity segment had $163 billion in AUM and $101 billion in Fee-earning AUM.
• Global Credit — Our 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. As of September 30, 2025 , our Global Credit segment
had $208 billion in AUM and $167 billion in Fee-earning AUM.
• Carlyle AlpInvest — Our 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. As of
September 30, 2025 , our Carlyle AlpInvest segment had $102 billion in AUM and $64 billion in Fee-earning AUM.
We earn management fees pursuant to contractual arrangements with the investment funds that we manage and fees for
transaction advisory and oversight services provided to portfolio companies of these funds. We also typically receive a
performance fee from an investment fund, which may be either an incentive fee or a special residual allocation of income,
which we refer to as a performance allocation, or carried interest, in the event that specified investment returns are achieved by
the fund. Under U.S. generally accepted accounting principles (“U.S. GAAP”), we are required to consolidate some of the
investment funds that we advise. However, for segment reporting purposes, we present revenues and expenses on a basis that
deconsolidates these investment funds. Refer to Note 15 , Segment Reporting , to the condensed consolidated financial
statements included in this Quarterly Report on Form 10-Q for more information on the differences between our financial
results reported pursuant to U.S. GAAP and our financial results for segment reporting purposes.

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Our Global Investment Offerings
The following table provides a breakout of the product offerings and related acronyms included in our total assets under
management of $474 billion as of September 30, 2025 for each of our three global business segments (in billions):

Global Private Equity

$ 163.4

Global Credit

$ 208.5

Corporate Private Equity

$ 104.8

Insurance Solutions 4

$ 87.0

U.S. Buyout (CP)

51.8

Liquid Credit

$ 49.4

Asia Buyout (CAP)

11.6

U.S. CLOs

34.4

Europe Buyout (CEP)

10.4

Europe CLOs

10.4

Carlyle Global Partners (CGP)

6.8

CLO Investment Products

2.6

Europe Technology (CETP)

6.1

Revolving Credit

2.0

Japan Buyout (CJP)

6.1

Private Credit

$ 72.1

U.S. Growth (CP Growth / CEOF)

3.2

Opportunistic Credit (CCOF / CSP)

20.3

Life Sciences (ABV / ACCD)

2.2

Direct Lending 5

12.9

Asia Growth (CAP Growth / CAGP)

1.2

Aviation Finance (SASOF / CALF)

12.3

Other 1

5.5

Cross-Platform Credit (incl. CTAC)

9.8

Real Estate

$ 36.1

Asset-Backed Finance

9.7

U.S. Real Estate (CRP)

25.3

Infrastructure Credit (CICF)

6.7

Core Plus Real Estate (CPI)

8.2

Other 6

0.5

International Real Estate (CER)

2.5

Infrastructure & Natural Resources

$ 22.5

Carlyle AlpInvest

$ 102.1

NGP Energy 2

10.7

Secondaries and Portfolio Finance (ASF / ASPF)

$ 45.5

Infrastructure and Renewable Energy 3

6.4

Co-Investments (ACF)

$ 25.2

International Energy (CIEP)

5.4

Primary Investments & Other 7

$ 31.5

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

Trends Affecting our Business
The third quarter of 2025 was one of continued optimism across markets. In the U.S., the S&P 500 and NASDAQ
sustained their upward climb, returning 8% and 11%, respectively . Broad enthusiasm for AI continues to drive sharp price
action, with just ten stocks accounting for 40% of U.S. stock market capitalization, the highest degree of concentration on
record. Moreover, eight of those companies operate in roughly the same sector and the earnings prospects of seven of them are
highly leveraged to AI. Relatively modest declines in data center capacity utilization, or extensions of AI monetization
timelines, could be enough to shift major stock market indexes. Stocks also performed well elsewhere. European stocks had a
better third quarter than second quarter, with the Euro Stoxx 50 up over 4%, compared to a 1% return in the respective periods;
meanwhile the Shanghai Composite and Nikkei 225 returned 13% and 11%, respectively, in the third quarter.
As of the end of the third quarter, U.S. public equity multiples were 20 – 30% above their 10-year average. Since the
pandemic, stock performance has become more divorced from traditional business quality metrics, such as top-line growth,
profit margins, and the stability of earnings over the cycle. Over the past five years, investors would have outperformed a
quality long portfolio by shorting a basket of stocks of the highest quality businesses, a notable inversion of historical patterns.
Much of this change is the result of the prevalence in public markets of both passive fund flows and short-term oriented retail
investors. The reduced role of institutional active investing as a share of overall public market activity has dampened
meaningful price discovery. By contrast, the frictions associated with exiting positions help to insulate private markets from

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similar effects. With transaction prices set on the basis of underwritten return expectations over multiyear holding periods,
private markets abide by arithmetic constraints absent from listed markets. These constraints help to ensure that prices remain
tied to fundamentals, rather than liquidity flows, and that returns stem from earnings growth, rather than short-horizon
momentum. This discipline has been reflected in ongoing private equity transactions; across the U.S. buyout universe, median
purchase price multiples are still in line with the 10-year historical average.
Our proprietary portfolio data indicate U.S. economic underlying growth is resilient and expanded at an annualized rate
of roughly 2.7% in the third quarter. Household spending regained momentum, dominated by higher income households
buoyed by a surging stock market and insulated from higher rates through mortgages fixed at below-market rates. Growth was
also supported by business investment, which advanced at an annualized rate of nearly 5% over the quarter, powered by a
concentrated surge in AI‑related outlays. This includes investments spanning data center construction, graphics processing unit
(GPU) and server procurement, spending on related applications, and power and generation capacity. These investments—
though a relatively small slice of gross domestic product (GDP)—account for roughly 30–40% of overall growth. Crucially, the
financing mix skews heavily toward internally‑generated cash flows from mega‑cap technology firms, limiting the exposure to
higher interest rates.
Despite a steady economic outlook in the U.S., our portfolio data suggest that U.S. job growth has slowed with monthly
payroll gains during the third quarter averaging only 15,000–20,000 . This slowdown may reflect both the impact of narrower
operating margins—likely due to tariffs—as well as a shrinking labor supply. Though most analysts assumed that the cost of
tariffs would manifest as higher consumer prices, inflation rates across affected categories have not yet matched what would be
implied by tariff revenue as some companies have absorbed higher tariffs in fear of weakened demand resulting from price
increases. At the same time, the shift to tighter immigration policy has sharply reduced U.S. labor force growth, with net
immigration near zero this year. Given that the domestic population is expected to grow just 14 basis points in 2025, only
modest monthly job gains are needed to maintain full employment. If the Federal Reserve interprets a labor-supply shortfall as a
sign of weak demand and cuts rates too aggressively, it could trigger wage-price pressures in 2026.
In Europe, the fiscal expansion in Germany has not yet been reflected in industrial order books, which continue to
contract. The trend over the past six months has not moved in the direction one might have hoped when the German
government announced its €500 billion fiscal package in the first quarter of 2025. In Asia, our data suggest that domestic
consumption in China is growing at its slowest pace in two years despite an improving outlook for China’s manufacturing
sector, where output appears to be growing at a 6.5% annual rate as exports once destined for the U.S. are channeled to other
markets. Our India portfolio data suggest domestic business volumes strengthened in the third quarter of 2025, with annual
growth averaging 7% over the quarter. While the increase in U.S. tariffs seems likely to reduce merchandise exports, the
domestic economy should benefit from the recently enacted Goods and Services Tax reform, which reduces domestic prices on
nearly 90% of goods, including an estimated 6% decline in the average price of discretionary consumer items.
Global mergers and acquisitions (M&A) activity gained momentum in the third quarter of 2025, with year-to-date dollar
volumes nearly matching full-year 2024 levels. Transactions totaled about $1.3 trillion in the third quarter, up 21% from the
prior quarter and 42% from a year ago. However, the number of deals fell about 12% year-over-year as larger transactions
drove overall volume. Similarly, while general partners (GPs) announced $241 billion in leveraged buyouts during the quarter
—the highest total since 2007 and 72% higher than a year earlier—deal counts remained well below the average pace of the
2021–2022 post-pandemic boom, with just 10 transactions accounting for nearly two-thirds of the total volume.
Despite blockbuster dollar volumes, buyout exits remain muted. Exit dollar volumes totaled $101 billion, roughly flat
versus the prior quarter and down 7% year-over-year, with one transaction representing about 20% of the total. However, while
cumulative net outflows since early 2022 (when they first turned negative) remain significant at $(135) billion, data through the
second quarter of 2025, the latest quarter for which data are available, indicate global buyout funds have now recorded five
consecutive quarters of non-negative net distributions. The initial public offering (IPO) market showed strength in the third
quarter, with 28 U.S. exchange-listed offerings raising $15.5 billion—the highest level of activity in terms of both transactions
and volumes since late 2021—though most were concentrated in software, pharma/health-tech, and AI-related sectors. The
continued backdrop of fewer transactions, slower exits, and constrained liquidity creates an attractive environment for
secondaries strategies, which have historically performed well when the private equity market slows.
In the aftermath of the Tricolor Auto Group and First Brands Group bankruptcies in September of 2025, fears have risen
around the quality of underlying assets in the syndicated loan and private credit markets. Business development companies
(BDCs) have underperformed the broader equity market since July, and firms and funds with the greatest exposure to First
Brands have seen their prices fall substantially in the aftermath. In fact, private credit default rates have seen a recent trend of
improvement in 2025 after climbing in 2024 and excess demand for leveraged loans and credit over the available supply has
pushed high yield credit spreads to post-global financial crisis lows. Risk premiums for leveraged finance are exceedingly tight.

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Portfolio finance’s unique structure of over-collateralization and sizable asset diversification may help to meaningfully mitigate
default risk and enhance capital preservation. Within our Global Credit portfolio, credit quality remains healthy. As of
September 30, 2025 , the non-accrual rate across our entire direct lending platform is nearly half of the market-wide direct
lending non-accrual rate, and default rates in our U.S. CLO business are 40% of the market level.
Our investment activity in the third quarter of 2025 reflected trends in the broader markets. We deployed $11.8 billion
across our platform and realized proceeds of $6.1 billion in our traditional carry funds during the third quarter. Our carry fund
portfolio appreciated 2% in the third quarter, continuing to show relative stability against a backdrop of volatility in the global
equity markets. Within our Global Private Equity segment in the third quarter, our corporate private equity funds were flat as
market price decreases in certain publicly traded positions offset appreciation elsewhere, our infrastructure & natural resources
funds appreciated 5% , and our real estate funds appreciated 1% . Our Global Credit carry funds, which represent approximately
11% of the total Global Credit remaining fair value as of September 30, 2025 , appreciated 4% in the third quarter. Carry funds
in our Carlyle AlpInvest segment appreciated 2% in the third quarter.
We had $16.9 billion in inflows in the third quarter of 2025 and $58.7 billion in inflows over the last twelve months as of
September 30, 2025 , continuing the momentum from the first half of the year against a backdrop of significant market
uncertainty. Our inflows during the third quarter included $3 billion in our evergreen wealth products, which continue to be an
area of strategic focus.
The ongoing U.S. federal government shutdown has introduced meaningful uncertainty into capital markets and
regulatory workflows. While we have not experienced material impact in our portfolio to date as a result, we are monitoring the
potential impact a prolonged shutdown could have on our investment activity, including potentially postponing planned
realization activity such as initial public offerings or delaying deal pipelines as regulatory agencies operate at reduced capacity.

Recent Developments
Dividends
In October 2025, our Board of Directors declared a quarterly dividend of $0.35 per share to common stockholders of
record at the close of business on November 10, 2025 , payable on November 19, 2025 .
Senior Note Issuance
In September 2025, we issued $800.0 million of 5.050% senior notes due 2035. See Note 6 , Borrowings , to the
condensed consolidated financial statements for further information.

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

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

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

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

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value of contingent consideration issued in conjunction with acquisitions or strategic investments, impairment charges
associated with lease right-of-use assets, gains and losses from the retirement of debt, charges associated with contract
terminations and employee severance, and non-recurring items that affect period-to-period comparability and are not reflective
of the Company’s operating performance. We believe the inclusion or exclusion of these items provides investors with a
meaningful indication of our core operating performance. This measure supplements and should be considered in addition to
and not in lieu of the results of operations discussed further under “—Consolidated Results of Operations” prepared in
accordance with U.S. GAAP.
Fee Related Earnings . Fee Related Earnings, or “FRE,” is a component of DE and is used to assess the ability of the
business to cover base compensation and operating expenses from total fee revenues. FRE adjusts DE to exclude net realized
performance revenues, realized principal investment income from investments in Carlyle funds, and net interest (interest
income less interest expense). Fee Related Earnings includes fee related performance revenues and related compensation
expense. Fee related performance revenues represent the realized portion of performance revenues that are measured and
received on a recurring basis, are not dependent on realization events, and which have no risk of giveback.
Operating Metrics
We monitor certain operating metrics that are common to the asset management industry.
Fee-earning Assets under Management. Fee-earning assets under management or Fee-earning AUM refers to the assets
we manage or advise from which we derive recurring fund management fees. Our Fee-earning AUM is generally based on one
of the following, once fees have been activated:
(a) the amount of limited partner capital commitments, generally for carry funds where the original investment period
has not expired and for AlpInvest carry funds during the commitment fee period (see “Fee-earning AUM based on
capital commitments” in the table below for the amount of this component at each period);
(b) the remaining amount of limited partner invested capital at cost, generally for carry funds and certain co-
investment vehicles where the original investment period has expired (see “Fee-earning AUM based on invested
capital” in the table below for the amount of this component at each period);
(c) the amount of aggregate fee-earning collateral balance at par of our CLOs and other securitization vehicles, as
defined in the fund indentures (pre-2020 CLO vintages are generally exclusive of equities and defaulted positions)
as of the quarterly cut-off date;
(d) the external investor portion of the net asset value of certain carry funds (see “Fee-earning AUM based on net
asset value” in the table below for the amount of this component at each period);
(e) the fair value of Fortitude’s general account assets invested under the strategic advisory services agreement (see
“Fee-earning AUM based on fair value and other” in the table below);
(f) the gross assets (including assets acquired with leverage) of certain cross-platform credit and direct lending
products, excluding cash and cash equivalents for one of our business development companies (included in “Fee-
earning AUM based on fair value and other” in the table below); and
(g) the lower of cost or fair value of invested capital, generally for AlpInvest carry funds where the commitment fee
period has expired and certain carry funds where the investment period has expired, (included in “Fee-earning
AUM based on fair value and other” in the table below).

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

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

 

As of September 30,

 

2025

2024

Consolidated Results

(Dollars in millions)

Components of Fee-earning AUM

Fee-earning AUM based on capital commitments

$ 71,995

$ 71,247

Fee-earning AUM based on invested capital

79,310

73,090

Fee-earning AUM based on collateral balances, at par

43,929

46,454

Fee-earning AUM based on net asset value

28,344

21,992

Fee-earning AUM based on fair value and other

108,376

100,824

Balance, End of Period (1)

$ 331,954

$ 313,607

(1) Ending balances as of September 30, 2025 and 2024 exclude $19.1 billion and $21.0 billion , respectively, of pending Fee-earning AUM
for which fees have not yet been activated.
The table below provides the period to period rollforward of Fee-earning AUM.

 

Three Months Ended September 30,

Nine Months Ended September 30,

 

2025

2024

2025

2024

Consolidated Results

(Dollars in millions)

Fee-earning AUM Rollforward

Balance, Beginning of Period

$ 324,701

$ 307,345

$ 304,358

$ 307,418

Inflows (1)

14,092

5,359

43,996

21,259

Outflows (including realizations) (2)

(7,563)

(5,129)

(23,974)

(18,582)

Market Activity & Other (3)

848

4,184

2,487

3,235

Foreign Exchange (4)

(124)

1,848

5,087

277

Balance, End of Period

$ 331,954

$ 313,607

$ 331,954

$ 313,607

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

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

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

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

 

Three Months Ended
September 30, 2025

Nine Months Ended
September 30, 2025

Consolidated Results

(Dollars in millions)

Total AUM Rollforward

Balance, Beginning of Period

$ 464,602

$ 441,020

Inflows (1)

16,864

44,476

Outflows (including realizations) (2)

(11,731)

(31,746)

Market Activity & Other (3)

4,528

12,396

Foreign Exchange (4)

(204)

7,913

Balance, End of Period

$ 474,059

$ 474,059

(1) Inflows generally reflects the impact of gross fundraising as well as closed reinsurance transactions at Fortitude and corporate
acquisitions during the period, if any. For funds or vehicles denominated in foreign currencies, this reflects translation at the average
quarterly rate.
(2) Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and separately
managed accounts, gross redemptions in our open-end funds, outflows from our liquid credit products, and the expiration of available
capital.
(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds and
related co-investment vehicles, and separately managed accounts, as well as the net impact of fees, expenses and non-investment income,
change in gross asset value for our business development companies, changes in the fair value of Fortitude’s general account assets
covered by the strategic advisory services agreement, and other changes in AUM.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Please refer to “—Segment Analysis” for a detailed discussion by segment of the activity affecting Total AUM for each
of the periods presented.
Available Capital . “Available Capital” refers to the amount of capital commitments available to be called for investments,
which may be reduced for equity invested that is funded via a fund credit facility and expected to be called from investors at a
later date, plus any additional assets/liabilities at the fund level other than active investments. Amounts previously called may
be added back to available capital following certain distributions. “Expired Available Capital” occurs when a fund has passed
the investment and follow-on periods and can no longer invest capital into new or existing deals. Any remaining Available
Capital, typically a result of either recycled distributions or specific reserves established for the follow-on period that are not
drawn, can only be called for fees and expenses and is therefore removed from the Total AUM calculation.
Perpetual Capital . “Perpetual Capital” refers to the assets we manage or advise which have an indefinite term and for
which there is no immediate requirement to return capital to investors upon the realization of investments made with such
capital, except as required by applicable law. Perpetual Capital may be materially reduced or terminated under certain
conditions, including reductions from changes in valuations and payments to investors, including through elections by investors
to redeem their investments, dividend payments, and other payment obligations, as well as the termination of or failure to renew
the respective investment advisory agreements. Perpetual Capital includes: (a) assets managed under the strategic advisory
services agreement with Fortitude, (b) our Core Plus real estate fund, (c) our business development companies and certain other
direct lending products, (d) Carlyle Tactical Private Credit Fund (“CTAC”), (e) our closed-end tender offer Carlyle AlpInvest
Private Markets (“CAPM”) and Carlyle AlpInvest Private Markets Secondaries (“CAPS”) funds, and (f) certain other structured
credit products. As of September 30, 2025 , our total AUM and Fee-earning AUM included $112.9 billion and $108.1 billion ,
respectively, of Perpetual Capital. Our Perpetual Capital total AUM and Fee-Earning AUM, exclusive of assets managed under
the strategic advisory services agreement with Fortitude, was $32.3 billion and $27.6 billion , respectively, as of September 30,
2025 .
Performance Fee Eligible AUM . “Performance Fee Eligible AUM” represents the AUM of funds for which we are
entitled to receive performance allocations, inclusive of the fair value of investments in those funds (which we refer to as
“Performance Fee Eligible Fair Value”) and their Available Capital. Performance Fee Eligible Fair Value is “Performance Fee-
Generating” when the associated fund has achieved the specified investment returns required under the terms of the fund’s
agreement and is accruing performance revenue as of the quarter-end reporting date. Funds whose performance allocations are

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treated as fee related performance revenues are excluded from these metrics. As of September 30, 2025 , our total AUM
included $237.9 billion of Performance Fee Eligible AUM.
Consolidation of Certain Carlyle Funds
The Company consolidates all entities that it controls either through a majority voting interest or as the primary
beneficiary of variable interest entities. The entities we consolidate are referred to collectively as the Consolidated Funds in our
condensed consolidated financial statements. The assets and liabilities of the Consolidated Funds are generally held within
separate legal entities and, as a result, the assets of the Consolidated Funds are not available to support our operating activities
and similarly the liabilities of the Consolidated Funds are non-recourse to us. As of September 30, 2025 , our Consolidated
Funds represent approximately 3% of our AUM; 3% and 2% of our management fees for the three and nine months ended
September 30, 2025 , respectively; and 2% of our total investment income or loss on an unconsolidated basis for both the three
and nine months ended September 30, 2025 .
We are not required under the consolidation guidance to consolidate in our financial statements most of the investment
funds we advise. However, we consolidate certain CLOs and certain other funds that we advise, and the number of funds we are
required to consolidate has been increasing as a result of the impacts of capital from our balance sheet invested in new products
and our indirect interest in funds through our investment in Fortitude (see Note 4 , Investments ). As of September 30, 2025 , the
assets and liabilities of the Consolidated Funds were primarily related to our consolidated CLOs , which held approximately
$9.6 billion of total assets. Additionally, the Investments of Consolidated Funds included approximately $0.9 billion related to
investments that have been bridged to investment funds in our Global Private Equity segment.
Generally, the consolidation of the Consolidated Funds has a gross-up effect on our assets, liabilities and cash flows but
has no net effect on the net income attributable to the Company. The majority of the net economic ownership interests of the
Consolidated Funds are reflected as non-controlling interests in consolidated entities in the consolidated financial statements.
However, in certain Consolidated Funds, particularly those where we have elected to invest additional amounts or bridge
investments in new investment areas, the non-controlling interests are less significant.
The Consolidated Funds are not the same entities in all periods presented. The Consolidated Funds in future periods may
change due to changes in fund terms, formation of new funds, and terminations of funds. Because only a small portion of our
funds are consolidated, the performance of the Consolidated Funds is not necessarily consistent with or representative of the
combined performance trends of all of our funds.
For further information on our consolidation policy and the consolidation of certain funds, see Note 2 , Summary of
Significant Accounting Policies , to the condensed consolidated financial statements included in this Quarterly Report on
Form 10-Q.

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

 

Three Months Ended
September 30,

Change

Nine Months Ended
September 30,

Change

 

2025

2024

$

%

2025

2024

$

%

 

(Dollars in millions)

Revenues

Fund management fees

$ 583.3

$ 532.7

$ 50.6

9 %

$ 1,789.8

$ 1,590.7

$ 199.1

13 %

Incentive fees

51.4

38.7

12.7

33 %

135.1

96.2

38.9

40 %

Investment income (loss)

Performance allocations

(606.7)

1,785.5

(2,392.2)

NM

255.0

1,826.7

(1,571.7)

(86) %

Principal investment income

87.7

46.0

41.7

91 %

79.8

207.2

(127.4)

(61) %

Total investment income
(loss)

(519.0)

1,831.5

(2,350.5)

NM

334.8

2,033.9

(1,699.1)

(84) %

Interest and other income

53.6

52.2

1.4

3 %

159.2

161.9

(2.7)

(2) %

Interest and other income of
Consolidated Funds

163.4

180.1

(16.7)

(9) %

459.8

510.6

(50.8)

(10) %

Total revenues

332.7

2,635.2

(2,302.5)

(87) %

2,878.7

4,393.3

(1,514.6)

(34) %

Expenses

Compensation and benefits

Cash-based compensation and
benefits

216.2

207.5

8.7

4 %

673.0

635.7

37.3

6 %

Equity-based compensation

90.7

121.6

(30.9)

(25) %

287.1

355.1

(68.0)

(19) %

Performance allocations and
incentive fee related
compensation

(324.6)

1,151.0

(1,475.6)

NM

290.4

1,222.4

(932.0)

(76) %

Total compensation and
benefits

(17.7)

1,480.1

(1,497.8)

NM

1,250.5

2,213.2

(962.7)

(43) %

General, administrative and other
expenses

180.7

176.6

4.1

2 %

559.8

512.2

47.6

9 %

Interest

29.8

30.3

(0.5)

(2) %

85.6

91.5

(5.9)

(6) %

Interest and other expenses of
Consolidated Funds

177.3

162.0

15.3

9 %

461.6

438.7

22.9

5 %

Other non-operating income

—

(0.1)

0.1

(100) %

(0.1)

(0.2)

0.1

(50) %

Total expenses

370.1

1,848.9

(1,478.8)

(80) %

2,357.4

3,255.4

(898.0)

(28) %

Other income (loss)

Net investment income (loss) of
Consolidated Funds

123.2

2.5

120.7

NM

176.1

(9.6)

185.7

NM

Income before provision for income
taxes

85.8

788.8

(703.0)

(89) %

697.4

1,128.3

(430.9)

(38) %

Provision (benefit) for income taxes

(26.7)

173.1

(199.8)

NM

98.2

264.5

(166.3)

(63) %

Net income

112.5

615.7

(503.2)

(82) %

599.2

863.8

(264.6)

(31) %

Net income attributable to non-
controlling interests in consolidated
entities

111.6

20.0

91.6

NM

148.6

54.3

94.3

174 %

Net income attributable to The Carlyle
Group Inc. Common Stockholders

$ 0.9

$ 595.7

$ (594.8)

(100) %

$ 450.6

$ 809.5

$ (358.9)

(44) %

NM - Not meaningful

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Revenues
Fund management fees . Fund management fees increased $50.6 million , or 9% , for the three months ended September
30, 2025 , as compared to the three months ended September 30, 2024 , and increased $199.1 million , or 13% , for the nine
months ended September 30, 2025 , as compared to the nine months ended September 30, 2024 , primarily due to the following:

Three Months Ended
September 30,

Nine Months Ended
September 30,

2025 v. 2024

(Dollars in millions)

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

$ 67.7

$ 183.3

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

(33.2)

(107.4)

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

24.0

50.0

(Lower) higher transaction and portfolio advisory fees

(4.0)

68.5

All other changes (1)

(3.9)

4.7

Total increase in Fund management fees (2)

$ 50.6

$ 199.1

(1) The nine months ended September 30, 2025 included approximately $19 million of aviation catch-up subordinated management fees. 
(2) Total increase in Fund management fees does not include our equity income allocation from NGP management fee related revenues. We do not control
NGP and account for our strategic investment in NGP as an equity method investment under U.S. GAAP. Therefore, Fund management fees associated
with NGP are included in Principal investment income (loss) in our U.S. GAAP results.
No fund generated over 10% of total fund management fees in any of the periods presented. Over the last twelve months
ended September 30, 2025, Fee-earning assets under management in our Carlyle AlpInvest and Global Credit segments grew
25% and 5% , respectively, while Global Private Equity decreased 2% . As a result, Fund management fees increased in Carlyle
AlpInvest and Global Credit, while Global Private Equity decreased, which was due in part to smaller buyout fund sizes in our
corporate private equity strategy and step-downs in rate or basis, partially offset by the activation of fees in certain products in
our Global Private Equity segment. The increase in catch-up management fees for the three and nine months ended September
30, 2025 was primarily attributable to our Carlyle AlpInvest segment. Fundraising for our most recent vintage of secondaries &
portfolio finance funds in our Carlyle AlpInvest segment concluded in the third quarter of 2025 and therefore the associated
catch-up management fees will not recur next quarter.
Fund management fees included transaction and portfolio advisory fees, net of rebate offsets, of $21.1 million and
$25.1 million for the three months ended September 30, 2025 and 2024 , respectively, and $143.6 million and $75.1 million for
the nine months ended September 30, 2025 and 2024 , respectively. These fees primarily comprise capital markets fees
generated by Carlyle Global Capital Markets. Over 25% of the fees earned during the nine months ended September 30, 2025
related to the acquisition of a healthcare investment across our U.S., Europe, and Asia buyout funds in the first quarter. The
recognition of portfolio advisory fees, transactions fees, and capital markets fees can be volatile as they are primarily generated
by investment activity within our funds, and therefore are impacted by our investment pace. See “—Trends Affecting Our
Business” for further discussion on our investment activity and broader market trends.
Investment income (loss) . Investment income (loss) decreased $2.4 billion for the three months ended September 30, 2025
compared to the three months ended September 30, 2024 , and decreased $1.7 billion for the nine months ended September 30,
2025 compared to the nine months ended September 30, 2024 . The components of Investment income (loss) a re included in the
following table:

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Three Months Ended
September 30,

Change

Nine Months Ended
September 30,

Change

2025

2024

$

%

2025

2024

$

%

(Dollars in millions)

Performance allocations

$ (606.7)

$ 1,785.5

$ (2,392.2)

NM

$ 255.0

$ 1,826.7

$ (1,571.7)

(86) %

Principal investment income :

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

29.8

34.7

(4.9)

(14) %

(42.6)

85.2

(127.8)

NM

Investment income (loss) from
our carry funds:

Global Private Equity

9.1

23.1

(14.0)

(61) %

28.5

36.9

(8.4)

(23) %

Global Credit

8.7

3.9

4.8

123 %

8.6

12.6

(4.0)

(32) %

Carlyle AlpInvest

16.3

15.1

1.2

8 %

42.8

21.9

20.9

95 %

Investment income (loss) from
our CLOs

2.1

(7.5)

9.6

NM

(5.4)

21.5

(26.9)

NM

Investment income from Carlyle
FRL

0.3

21.2

(20.9)

(99) %

15.7

30.8

(15.1)

(49) %

Investment income (loss) from
our other Global Credit
products

1.4

(42.5)

43.9

NM

6.1

(13.6)

19.7

NM

Investment income on foreign
currency hedges

0.4

0.3

0.1

33 %

2.1

5.2

(3.1)

(60) %

All other investment income
(loss)

19.6

(2.3)

21.9

NM

24.0

6.7

17.3

258 %

Total Principal investment income

87.7

46.0

41.7

91 %

79.8

207.2

(127.4)

(61) %

Total Investment income (loss)

$ (519.0)

$ 1,831.5

$ (2,350.5)

NM

$ 334.8

$ 2,033.9

$ (1,699.1)

(84) %

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

Three Months Ended
September 30,

Change

Nine Months Ended
September 30,

Change

2025

2024

$

%

2025

2024

$

%

(Dollars in millions)

Global Private Equity

$ (781.4)

$ 1,625.8

$ (2,407.2)

(148) %

$ (219.5)

$ 1,447.3

$ (1,666.8)

(115) %

Global Credit

93.3

58.7

34.6

59 %

223.1

170.0

53.1

31 %

Carlyle AlpInvest

81.4

101.0

(19.6)

(19) %

251.4

209.4

42.0

20 %

Total performance allocations

$ (606.7)

$ 1,785.5

$ (2,392.2)

NM

$ 255.0

$ 1,826.7

$ (1,571.7)

(86) %

Performance allocations for the three and nine months ended September 30, 2025 included the following:
• In the Global Private Equity segment, for the three and nine months ended September 30, 2025 , reversals of
Performance allocations were primarily attributable to the impact of a decrease in the market prices of certain public
investments in CP VII and CAP V . Additionally, for the nine months ended September 30, 2025 , reversals of
Performance allocations were o ffset by accruals of Performance allocations resulting from appreciation in CP VIII.
• In the Global Credit segment, for the three and nine months ended September 30, 2025 , Performance allocation
accruals were primarily driven by the impact of appreciation in CCOF II and CCOF III. During the nine months
ended September 30, 2025 , Performance allocation accruals were also driven by the impact of appreciation in
SASOF V.
• In the Carlyle AlpInvest segment, for the three and nine months ended September 30, 2025 , Performance allocation
accruals were primarily driven by the impact of appreciation in our secondaries & portfolio finance. During the nine
months ended September 30, 2025 , Performance allocation accruals were also driven by the impact of appreciation
in our co-investment funds .

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Performance allocations for the three and nine months ended September 30, 2024 included the following:
• In the Global Private Equity segment, for the three and nine months ended September 30, 2024 , performance
allocation accruals were primarily driven by appreciation in our CP VII fund, and to a lesser extent appreciation in
our CP VIII and CAP V funds, partially offset by the reversal of performance allocations in our CEP V and CP VI
funds due to portfolio depreciation.
• In the Global Credit segment, for the three and nine months ended September 30, 2024 , performance allocation
accruals were primarily driven by appreciation in our opportunistic credit funds.
• In the Carlyle AlpInvest segment, for the three and nine months ended September 30, 2024 , performance allocation
accruals were primarily driven by appreciation in our secondaries & portfolio finance and co-investment strategies.
See “—Trends Affecting Our Business” for further discussion on the macroeconomic, geopolitical and industry
landscape, and our investment activity.
Principal investment income . The increase in Principal investment income for the three months ended September 30,
2025 compared to the three months ended September 30, 2024 primarily reflects the impact of a $48.5 million reversal of
previously recorded unrealized investment income in the three months ended September 30, 2024 from our Global Credit
products as a result of the Merger as discussed in Note 9, Related Party Transactions. The increase for the three months ended
September 30, 2025 was also impacted by an increase in other investment income, driven by unrealized market appreciation in
a corporate investment . These were partially offset by a decrease in unrealized investment income from Carlyle FRL.
The decrease in Principal investment income for the nine months ended September 30, 2025 compared to the nine months
ended September 30, 2024 was primarily attributable to an impairment charge of $92.5 million and a $38.0 million reduction in
NGP accrued carry, both related to the restructuring of the terms of our strategic investment in NGP (see Note 4 , Investments ,
for more information).
Expenses
Compensation and benefits . Total compensation and benefits decreased $1.5 billion for the three months ended
September 30, 2025 , as compared to the three months ended September 30, 2024 , and decreased $1.0 billion for the nine
months ended September 30, 2025 , as compared to the nine months ended September 30, 2024 . The decreases for three and
nine months ended September 30, 2025 relative to the comparable prior year periods are primarily attributable to a decrease in
Performance allocations and incentive fee related compensation of $1.5 billion and $0.9 billion , respectively, and a decrease in
Equity-based compensation of $30.9 million and $68.0 million , respectively. The decrease in Performance allocations and
incentive fee related compensation was primarily driven by a decrease in Performance allocations , on which Performance
allocations and incentive fee related compensation is based. The decrease in Equity-based compensation was primarily driven
by lower amortization on performance-based stock awards, partially offset by additional equity awards granted in February
2025.
General, administrative and other expenses . General, administrative and other expenses increased $4.1 million for the
three months ended September 30, 2025 , as compared to the three months ended September 30, 2024 , and increased $47.6
million for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 . The increase
for the three months ended September 30, 2025 was primarily attributable to an increase in external fundraising costs, primarily
in our Carlyle AlpInves t segment, as well as an increase in IT expenses and professional fees. These were partially offset by a
decrease in foreign currency remeasurement adjustments of $13.1 million , reflecting a foreign exchange gain for the three
months ended September 30, 2025 , compared to a foreign exchange loss for the three months ended September 30, 2024 driven
by the movement in EUR relative to USD .
The increase for the nine months ended September 30, 2025 was primarily attributable to an increase in foreign currency
remeasurement loss of $13.1 million , reflecting the movement of EUR and GBP relative to USD , as well as an increase in
external fundraising costs and an increase in operating costs related to certain funds. These were partially offset by the impact
of an increase in liabilities during the nine months ended September 30, 2024 for litigation-related contingencies, regulatory
examination and inquiries, and other matters.

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

 

Three Months Ended
September 30,

Change

Nine Months Ended
September 30,

Change

 

2025

2024

$

%

2025

2024

$

%

 

(Dollars in millions)

Realized gains (losses)

$ 58.5

$ (4.5)

$ 63.0

NM

$ 33.6

$ (49.1)

$ 82.7

NM

Net change in unrealized gains (losses)

30.0

(20.4)

50.4

NM

66.5

107.2

(40.7)

(38) %

Total gains (losses)

88.5

(24.9)

113.4

NM

100.1

58.1

42.0

72 %

Gains (losses) from liabilities of CLOs

34.7

27.4

7.3

27 %

76.0

(67.7)

143.7

NM

Total net investment income (loss) of
Consolidated Funds

$ 123.2

$ 2.5

$ 120.7

NM

$ 176.1

$ (9.6)

$ 185.7

NM

Net investment income (loss) of Consolidated Funds for the three and nine months ended September 30, 2025 included
unrealized gains of $153.6 million in a new collateralized fund obligation vehicle in our Carlyle AlpInvest segment, partially
offset by unrealized losses of $82.2 million on an infrastructure investment in consolidated funds in our Global Private Equity
segment.
Provision (benefit) for income taxes . The Company’s provision (benefit) for income taxes was $(26.7) million and $173.1
million for the three months ended September 30, 2025 and 2024 , respectively, and $98.2 million and $264.5 million for the
nine months ended September 30, 2025 and 2024 , respectively. The Company’s effective tax rate was approximately (31)% and
22% for the three months ended September 30, 2025 and 2024 , respectively, and 14% and 23% for the nine months ended
September 30, 2025 and 2024 , respectively. 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 in the accompanying condensed consolidated balance sheets.
Net income attributable to non-controlling interests in consolidated entities . Net income attributable to non-controlling
interests in consolidated entities was $111.6 million for the three months ended September 30, 2025 , as compared to $20.0
million for the three months ended September 30, 2024 , and $148.6 million for the nine months ended September 30, 2025 , as
compared to $54.3 million for the nine months ended September 30, 2024 . These amounts are primarily attributable to the net
earnings of the Consolidated Funds for each period, which are substantially all allocated to the related fund’s limited partners or
CLO investors, as well as net earnings from our insurance solutions business and certain other products that are allocated to
certain third-party investors. These amounts also reflect the net income attributable to non-controlling interests in carried
interest, giveback obligations, and cash held for carried interest distributions. The net income (loss) of our Consolidated Funds,
after eliminations, was $91.3 million and $8.3 million for the three months ended September 30, 2025 and 2024 , respectively,
and $113.2 million and $16.7 million for the nine months ended September 30, 2025 and 2024 , respectively. 

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

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The following table shows our total segment DE and FRE 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 Segment Revenues

$ 782.5

$ 895.0

$ 2,809.7

$ 2,706.9

Total Segment Expenses

414.1

527.9

1,554.9

1,565.3

(=) Distributable Earnings

$ 368.4

$ 367.1

$ 1,254.8

$ 1,141.6

(-) Realized Net Performance Revenues

19.1

90.6

234.2

288.3

(-) Realized Principal Investment Income

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

The following table sets forth our total segment revenues 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)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 573.9

$ 526.5

$ 1,689.0

$ 1,567.6

Portfolio advisory and transaction fees, net and other

32.3

27.4

158.1

83.0

Fee related performance revenues

47.5

36.3

125.7

98.5

Total fund level fee revenues

653.7

590.2

1,972.8

1,749.1

Realized performance revenues

61.7

275.9

676.6

830.2

Realized principal investment income

49.5

9.1

113.0

69.4

Interest income

17.6

19.8

47.3

58.2

Total Segment Revenues

$ 782.5

$ 895.0

$ 2,809.7

$ 2,706.9

The following table sets forth our total segment expenses 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)

Segment Expenses

Compensation and benefits

Cash-based compensation and benefits

$ 220.5

$ 207.6

$ 678.3

$ 627.2

Realized performance revenue related compensation

42.6

185.3

442.4

541.9

Total compensation and benefits

263.1

392.9

1,120.7

1,169.1

General, administrative, and other indirect expenses

107.3

92.9

309.2

270.5

Depreciation and amortization expense

14.0

11.8

39.5

34.2

Interest expense

29.7

30.3

85.5

91.5

Total Segment Expenses

$ 414.1

$ 527.9

$ 1,554.9

$ 1,565.3

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

Three Months Ended
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) loss 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 net 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 includes amounts presented in principal
investment income and general, administrative and other expenses in our U.S. GAAP statement of operations.
(2) Includes charges (credits) related to Carlyle corporate actions and non-recurring items that affect period-to-period comparability and are
not reflective of the Company’s operating performance.

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

 

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

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Table of Contents

Distributable Earnings for our reportable segments are as follows:  

 

Three Months Ended September 30,

Nine Months Ended September 30,

 

2025

2024

2025

2024

 

(Dollars in millions)

Global Private Equity

$ 146.8

$ 235.5

$ 644.3

$ 747.7

Global Credit

126.4

80.5

357.8

262.4

Carlyle AlpInvest

95.2

51.1

252.7

131.5

Distributable Earnings

$ 368.4

$ 367.1

$ 1,254.8

$ 1,141.6

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

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Table of Contents

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

 

Three Months Ended
September 30,

Change

Nine Months Ended
September 30,

Change

 

2025

2024

$

%

2025

2024

$

%

 

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 295.0

$ 298.6

$ (3.6)

(1) %

$ 880.4

$ 908.4

$ (28.0)

(3) %

Portfolio advisory and
transaction fees, net and other

6.5

5.9

0.6

10 %

27.9

16.8

11.1

66 %

Fee related performance
revenues

—

—

—

NM

—

6.9

(6.9)

(100) %

Total fund level fee revenues

301.5

304.5

(3.0)

(1) %

908.3

932.1

(23.8)

(3) %

Realized performance revenues

38.0

225.2

(187.2)

(83) %

599.8

728.7

(128.9)

(18) %

Realized principal investment
income (loss)

(0.4)

10.0

(10.4)

NM

27.1

35.7

(8.6)

(24) %

Interest income

7.4

7.7

(0.3)

(4) %

18.9

21.8

(2.9)

(13) %

Total revenues

346.5

547.4

(200.9)

(37) %

1,554.1

1,718.3

(164.2)

(10) %

Segment Expenses

Compensation and benefits

Cash-based compensation and
benefits

97.4

101.1

(3.7)

(4) %

306.5

314.3

(7.8)

(2) %

Realized performance revenues
related compensation

24.2

141.5

(117.3)

(83) %

385.5

457.2

(71.7)

(16) %

Total compensation and
benefits

121.6

242.6

(121.0)

(50) %

692.0

771.5

(79.5)

(10) %

General, administrative, and other
indirect expenses (1)

56.2

48.5

7.7

16 %

155.2

137.3

17.9

13 %

Depreciation and amortization
expense

7.6

6.7

0.9

13 %

21.5

19.6

1.9

10 %

Interest expense

14.3

14.1

0.2

1 %

41.1

42.2

(1.1)

(3) %

Total expenses

199.7

311.9

(112.2)

(36) %

909.8

970.6

(60.8)

(6) %

(=) Distributable Earnings

$ 146.8

$ 235.5

$ (88.7)

(38) %

$ 644.3

$ 747.7

$ (103.4)

(14) %

(-) Realized Net Performance
Revenues

13.8

83.7

(69.9)

(84) %

214.3

271.5

(57.2)

(21) %

(-) Realized Principal Investment
Income (loss)

(0.4)

10.0

(10.4)

NM

27.1

35.7

(8.6)

(24) %

(+) Net Interest

6.9

6.4

0.5

8 %

22.2

20.4

1.8

9 %

(=) Fee Related Earnings

$ 140.3

$ 148.2

$ (7.9)

(5) %

$ 425.1

$ 460.9

$ (35.8)

(8) %

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

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Table of Contents

Distributable Earnings
Distributable Earnings decreased $88.7 million for the three months ended September 30, 2025 , as compared to the three
months ended September 30, 2024 , and decreased $103.4 million for the nine months ended September 30, 2025 , as compared
to the nine months ended September 30, 2024 . The following table provides the components of the changes in Distributable
Earnings for the three and nine months ended September 30, 2025 :

Three Months Ended
September 30,

Nine Months Ended
September 30,

2025 v. 2024

(Dollars in millions)

Distributable Earnings, September 30, 2024

$ 235.5

$ 747.7

Increases (decreases):

Decrease in fee related earnings

(7.9)

(35.8)

Decrease in realized net performance revenues

(69.9)

(57.2)

Decrease in realized principal investment income

(10.4)

(8.6)

Increase in net interest

(0.5)

(1.8)

Total decrease

(88.7)

(103.4)

Distributable Earnings, September 30, 2025

$ 146.8

$ 644.3

Realized Net Performance Revenues . Realized net performance revenues decreased $69.9 million for the three months
ended September 30, 2025 , as compared to the three months ended September 30, 2024 , and decreased $57.2 million for the
nine months ended September 30, 2025 , as compared to the nine months ended September 30, 2024 . Realized net performance
revenues for the three months ended September 30, 2025 were primarily attributable to realizations in CJP III and CRP VIII.
Realized net performance revenues for the nine months ended September 30, 2025 were primarily attributable to realizations in
CPP II, NGP XI, CAP IV, and CETP IV. Realized net performance revenues for the three and nine months ended September
30, 2024 were primarily attributable to realizations in CAP IV, CETP III, and CJP III. Additionally, the nine months ended
September 30, 2024 included realizations in CIEP I. While overall exit activity increased in the nine months ended September
30, 2025 relative to the comparable 2024 period, the mix of exits was more concentrated in funds not yet realizing performance
revenues .
Fee Related Earnings
Fee Related Earnings decreased $7.9 million for the three months ended September 30, 2025 , as compared to the three
months ended September 30, 2024 , and decreased $35.8 million for the nine months ended September 30, 2025 , as compared to
the nine months ended September 30, 2024 . The following table provides the components of the changes in Fee Related
Earnings for the three and nine months ended September 30, 2025 :

Three Months Ended
September 30,

Nine Months Ended
September 30,

2025 v. 2024

(Dollars in millions)

Fee Related Earnings, September 30, 2024

$ 148.2

$ 460.9

Increases (decreases):

Decrease in fee revenues

(3.0)

(23.8)

Decrease in cash-based compensation and benefits

3.7

7.8

Increase in general, administrative and other indirect expenses

(7.7)

(17.9)

  All other changes

(0.9)

(1.9)

Total decrease

(7.9)

(35.8)

Fee Related Earnings, September 30, 2025

$ 140.3

$ 425.1

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Fee Revenues. Total fee revenues decreased $3.0 million for the three months ended September 30, 2025 , as compared to
the three months ended September 30, 2024 , and decreased $23.8 million for the nine months ended September 30, 2025 , as
compared to the nine months ended September 30, 2024 , due to the following:

Three Months Ended
September 30,

Nine Months Ended
September 30,

2025 v. 2024

(Dollars in millions)

Lower fund management fees

$ (3.6)

$ (28.0)

Higher portfolio advisory and transaction fees, net and other

0.6

11.1

Lower fee related performance revenues

—

(6.9)

Total decrease in fee revenues

$ (3.0)

$ (23.8)

The decrease in fund management fees for the nine months ended September 30, 2025 as compared to the nine months
ended September 30, 2024 was primarily due to step-downs in management fee basis on CEP V and CRP IX in the fourth
quarter of 2024, as well as net investment realizations in funds on which management fees are based on invested capital. These
were partially offset by the activation of fees in CJP V, which turned on fees in the fourth quarter of 2024, as well as CRP X,
which turned on fees on April 1, 2025. The impact of smaller buyout funds in our corporate private equity strategy is resulting
in, and may continue to result in, lower fund management fees relative to prior periods.
The increase in portfolio advisory and transaction fees, net and other for the nine months ended September 30, 2025 as
compared to the nine months ended September 30, 2024 was primarily due to an increase in transaction fees. Transaction fees
are primarily generated by investment activity within our funds, and are therefore impacted by our investment pace. See “—
Trends Affecting Our Business” for further discussion on our investment activity and broader market trends.
General, administrative and other indirect expenses . General, administrative and other indirect expenses increased $7.7
million for the three months ended September 30, 2025 , as compared to the three months ended September 30, 2024 , and
increased $17.9 million for the nine months ended September 30, 2025 , as compared to the nine months ended September 30,
2024 . The increase for the three months ended September 30, 2025 , as compared to the three months ended September 30, 2024
was primarily attributable to an increase in professional fees . The increase for the nine months ended September 30, 2025 was
primarily attributable to an increase in costs related to funds in fundraising, an increase in professional fees , and a lower
reversal of value-added tax expense in Asia. These were partially offset by foreign exchange gains for the nine months ended
September 30, 2025 compared to foreign exchange losses for the nine months ended September 30, 2024 .

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

 

As of September 30,

 

2025

2024

Global Private Equity

(Dollars in millions)

Components of Fee-earning AUM (1)

Fee-earning AUM based on capital commitments

$ 41,525

$ 48,295

Fee-earning AUM based on invested capital

49,232

44,665

Fee-earning AUM based on net asset value

7,472

7,200

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

2,918

3,363

Total Fee-earning AUM

$ 101,147

$ 103,523

Annualized Management Fee Rate (2)

1.17 %

1.15 %

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

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

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

Global Private Equity

(Dollars in millions)

Fee-earning AUM Rollforward

Balance, Beginning of Period

$ 102,330

$ 103,662

$ 98,033

$ 106,651

Inflows (1)

413

508

11,079

4,192

Outflows (including realizations) (2)

(1,583)

(1,376)

(9,599)

(7,246)

Market Activity & Other (3)

97

(42)

(161)

(150)

Foreign Exchange (4)

(110)

771

1,795

76

Balance, End of Period

$ 101,147

$ 103,523

$ 101,147

$ 103,523

(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based
on commitments were activated during the period, and the fee-earning commitments invested in vehicles for which management fees
are based on invested capital. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which
are referenced as Pending Fee-earning AUM.
(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair
value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has
expired during the period, and reductions for funds that are no longer calling for fees. Realizations for funds earning management fees
based on commitments during the period do not affect Fee-earning AUM.
(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the
lower of cost or fair value.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Fee-earning AUM of $101.1 billion at September 30, 2025 decreased 1% from $102.3 billion at June 30, 2025 . The net
decrease was due to:
• Outflows of $1.6 billion , driven by realization in funds that charge fees on invested capital, notably in the NGP
energy funds and CP VII, as well as redemptions in CPI.
Offsetting these decrease s were:
• Inflows of $0.4 billion , primarily driven by investments in CPI.
Fee-earning AUM of $101.1 billion at September 30, 2025 increased 3% from $98.0 billion at December 31, 2024 . The
net increase was due to:
• Inflows of $11.1 billion , which included the activation of management fees in CRP X, additional fee-paying capital
raised in CAP VI, and investments in our U.S. real estate, Asia buyout, and Europe buyout funds which charge fees
on invested capital; and
• Positive foreign exchange activity of $1.8 billion reflecting the translation of our EUR- and JPY-denominated funds
to USD.
Offsetting these increase s were:
• Outflows of $9.6 billion , which included realizations in funds that charge fees on invested capital, notably in the
NGP energy funds and our U.S. buyout, Europe buyout, Asia buyout, and U.S. real estate funds, as well as the
expiration of fees in CP VI during the period, and a fee basis step-down in CIEP II.
Fee-earning AUM of $101.1 billion at September 30, 2025 decreased 2% from $103.5 billion at September 30, 2024 . The
net decrease was due to:
• Outflows of $17.3 billion driven by realizations in funds that charge fees on invested capital, fee basis step-downs in
CRP IX, CEP V, and CIEP II, and the expiration of fees in CP VI during the period.

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Offsetting these decrease s were:
• Inflows of $14.6 billion primarily from the activation of fees in CRP X and CJP V, additional fee-paying capital
raised in CAP VI, and investments in funds which charge fees on invested capital; and
• Positive foreign exchange activity of $0.6 billion reflecting the translation of our EUR- and JPY-denominated funds
to USD.
Total AUM
The table below provides the period to period rollforward of Total AUM.

 

Three Months Ended
September 30, 2025

Nine Months Ended
September 30, 2025

 

(Dollars in millions)

Global Private Equity

Total AUM Rollforward

Balance, Beginning of Period

$ 165,057

$ 163,533

Inflows (1)

646

6,202

Outflows (including realizations) (2)

(2,685)

(12,335)

Market Activity & Other (3)

589

3,068

Foreign Exchange (4)

(157)

2,982

Balance, End of Period

$ 163,450

$ 163,450

(1) Inflows reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects
translation at the average quarterly rate.
(2) Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and
separately managed accounts, gross redemptions in our open-ended funds, and the expiration of available capital.
(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related
co-investment vehicles, and separately managed accounts, as well as the impact of fees, expenses and non-investment income, and
other changes in AUM.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Total AUM was $163.5 billion at September 30, 2025 , a decrease of 1% from $165.1 billion at June 30, 2025 . The net
decrease was due to:
• Outflows of $2.7 billion driven by realizations in our U.S. buyout and U.S. real estate funds, as well as the NGP
energy funds.
Offsetting these decrease s were:
• Inflows of $0.6 billion , driven by capital raised in our U.S. real estate funds; and
• Market appreciation of $0.6 billion , which reflected appreciation generally across the portfolio, net of depreciation
in CP VII ($0. 4 billion) and CAP V ($0.3 billion), the portfolios of which were impacted by market price decreases
in certain public investments.
Total AUM was $163.5 billion at September 30, 2025 , flat compared to $163.5 billion at December 31, 2024 . This was
due to:
• Outflows of $12.3 billion , driven by realizations across the segment, notably in our U.S. buyout, power, and U.S.
real estate funds, as well as the NGP energy funds.
Offsetting these decrease s were:
• Inflows of $6.2 billion , driven by new capital raised in our U.S. real estate and Asia buyout funds, as well as the
NGP energy funds;

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• Market appreciation of $3.1 billion , driven by appreciation in CP VII ($0.9 billion), CP VIII ($0.7 billion), and CGP
II ($0.5 billion), partially offset by depreciation in CEP V ($0.8 billion); and
• Positive foreign exchange activity of $3.0 billion reflecting the translation of our EUR- and JPY-denominated funds
to USD.
Fund Performance Metrics
Fund performance information for our investment funds that generally have at least $1.0 billion in capital commitments,
cumulative equity invested or total value as of September 30, 2025 , which we refer to as our “significant funds,” is included
throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The
fund return information reflected in this discussion and analysis is not indicative of the performance of The Carlyle Group Inc.
and is also not necessarily indicative of the future performance of any particular fund. An investment in The Carlyle Group Inc.
is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds
will achieve similar returns.
The following table reflects the performance of our significant funds in our Global Private Equity business. Please see
“—Our Global Investment Offerings” for a legend of the fund acronyms listed below.

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(Amounts in millions)

TOTAL INVESTMENTS

REALIZED/PARTIALLY
REALIZED INVESTMENTS(12)

 

As of September 30, 2025

As of September 30, 2025

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

Committed
Capital(2)

Cumulative
Invested
Capital(3)

Percent
Invested

Realized
Value(4)

Remaining
Fair
Value(5)

MOIC
(6)

Gross
IRR
(7)(8)

Net
IRR
(8)(9)

Net Accrued
Carry/
(Giveback)
(10)

Total
Fair
Value(11)

MOIC
(6)

Gross
IRR
(7)(8)

Corporate Private Equity

CP VIII (Oct 2021 / Oct 2027)

$ 14,797

$ 10,603

72%

$ 1,691

$ 13,028

1.4x

19%

9%

$ 157

$ 2,161

1.7x

58%

CP VII (May 2018 / Oct 2021)

$ 18,510

$ 17,787

96%

$ 7,864

$ 21,235

1.6x

11%

8%

$ 438

$ 7,791

1.7x

13%

CP VI (May 2013 / May 2018)

$ 13,000

$ 13,140

101%

$ 25,565

$ 3,064

2.2x

18%

13%

$ 126

$ 26,348

2.5x

22%

CP V (Jun 2007 / May 2013)

$ 13,720

$ 13,238

96%

$ 28,117

$ 451

2.2x

18%

14%

$ 31

$ 28,136

2.3x

20%

CEP V (Oct 2018 / Oct 2024)

€ 6,416

€ 6,081

95%

€ 1,626

€ 4,981

1.1x

1%

Neg

$ —

€ 541

0.8x

Neg

CEP IV (Sep 2014 / Oct 2018)

€ 3,670

€ 3,966

108%

€ 6,210

€ 1,331

1.9x

16%

11%

$ 58

€ 6,250

2.1x

20%

CEP III (Jul 2007 / Dec 2013)

€ 5,295

€ 5,177

98%

€ 11,730

€ 19

2.3x

19%

14%

$ 2

€ 11,749

2.3x

19%

CAP VI (Jun 2024 / Jun 2030)

$ 2,852

$ —

—%

$ —

$ —

n/a

n/a

n/a

$ —

n/a

n/a

n/a

CAP V (Jun 2018 / Jun 2024)

$ 6,554

$ 6,875

105%

$ 3,018

$ 6,606

1.4x

13%

8%

$ 3

$ 2,142

1.3x

23%

CAP IV (Jul 2013 / Jun 2018)

$ 3,880

$ 4,146

107%

$ 8,667

$ 303

2.2x

18%

13%

$ 18

$ 8,704

2.4x

21%

CJP V (Nov 2024 / Nov 2030)

¥ 434,325

¥ —

—%

¥ —

¥ —

n/a

n/a

n/a

$ —

n/a

n/a

n/a

CJP IV (Oct 2020 / Nov 2024)

¥ 258,000

¥ 234,357

91%

¥ 148,550

¥ 297,425

1.9x

36%

24%

$ 86

¥ 180,929

3.4x

64%

CJP III (Sep 2013 / Aug 2020)

¥ 119,505

¥ 91,192

76%

¥ 273,641

¥ 10,454

3.1x

25%

18%

$ 5

¥ 274,341

3.3x

26%

CGFSP III (Dec 2017 / Dec 2023)

$ 1,005

$ 977

97%

$ 532

$ 1,733

2.3x

22%

16%

$ 78

$ 1,035

4.1x

34%

CGFSP II (Jun 2013 / Dec 2017)

$ 1,000

$ 943

94%

$ 1,961

$ 638

2.8x

26%

19%

$ 37

$ 1,956

2.4x

28%

CP Growth (Oct 2021 / Oct 2027)

$ 1,283

$ 673

52%

$ —

$ 812

1.2x

NM

NM

$ —

n/a

n/a

n/a

CEOF II (Nov 2015 / Mar 2020)

$ 2,400

$ 2,368

99%

$ 4,107

$ 1,437

2.3x

21%

15%

$ 72

$ 4,673

2.5x

23%

CETP V (Mar 2022 / Jun 2028)

€ 3,180

€ 1,528

48%

€ —

€ 1,765

1.2x

NM

NM

$ —

n/a

n/a

n/a

CETP IV (Jul 2019 / Jun 2022)

€ 1,350

€ 1,201

89%

€ 1,345

€ 1,423

2.3x

30%

21%

$ 60

€ 1,344

4.4x

74%

CETP III (Jul 2014 / Jul 2019)

€ 657

€ 610

93%

€ 1,752

€ 333

3.4x

40%

28%

$ 20

€ 1,757

3.8x

45%

CGP II (Dec 2020 / Jan 2025)

$ 1,840

$ 984

53%

$ 198

$ 1,859

2.1x

24%

19%

$ 42

n/a

n/a

n/a

CGP (Jan 2015 / Mar 2021)

$ 3,588

$ 3,235

90%

$ 1,583

$ 2,738

1.3x

4%

3%

$ 16

$ 1,817

2.3x

16%

All Other Active Funds & Vehicles(13)

$ 20,790

n/a

$ 15,495

$ 17,090

1.6x

12%

10%

$ 45

$ 15,526

2.0x

18%

Fully Realized Funds & Vehicles(14)(15)

$ 35,574

n/a

$ 81,709

$ 2

2.3x

28%

20%

$ 2

$ 81,711

2.3x

28%

TOTAL CORPORATE PRIVATE EQUITY(16)

$ 155,358

n/a

$ 210,005

$ 84,661

1.9x

25%

17%

$ 1,295

$ 210,523

2.3x

26%

Real Estate

CRP X (Apr 2025 / Jul 2030)

$ 9,000

$ 372

4%

$ —

$ 360

1.0x

NM

NM

$ —

n/a

n/a

n/a

CRP IX (Oct 2021 / Dec 2024)

$ 7,987

$ 6,012

75%

$ 432

$ 6,722

1.2x

12%

3%

$ —

$ 409

1.4x

25%

CRP VIII (Aug 2017 / Oct 2021)

$ 5,505

$ 5,123

93%

$ 5,677

$ 3,251

1.7x

32%

18%

$ 87

$ 5,624

2.1x

49%

CRP VII (Jun 2014 / Dec 2017)

$ 4,162

$ 3,821

92%

$ 5,098

$ 1,169

1.6x

16%

10%

$ —

$ 5,063

1.7x

20%

CRP VI (Mar 2011 / Jun 2014)

$ 2,340

$ 2,155

92%

$ 3,815

$ 118

1.8x

27%

17%

$ 4

$ 3,748

1.9x

28%

CPI (May 2016 / n/a)

$ 8,249

$ 8,706

106%

$ 3,390

$ 7,965

1.3x

10%

8%

n/a*

$ 2,161

1.7x

12%

All Other Active Funds & Vehicles(17)

$ 2,599

n/a

$ 505

$ 2,498

1.2x

9%

5%

$ 5

$ 340

1.1x

20%

Fully Realized Funds & Vehicles(15)(18)

$ 14,293

n/a

$ 21,641

$ 13

1.5x

9%

5%

$ —

$ 21,654

1.5x

10%

TOTAL REAL ESTATE(16)

$ 43,082

n/a

$ 40,558

$ 22,095

1.5x

11%

7%

$ 96

$ 38,998

1.6x

13%

Infrastructure & Natural Resources

CIEP II (Apr 2019 / Apr 2025)

$ 2,286

$ 1,008

44%

$ 799

$ 1,098

1.9x

26%

12%

$ 36

$ 752

3.2x

NM**

CIEP I (Sep 2013 / Jun 2019)

$ 2,500

$ 2,470

99%

$ 3,372

$ 1,374

1.9x

15%

9%

$ 48

$ 3,750

2.2x

18%

CGIOF (Dec 2018 / Sep 2023)

$ 2,201

$ 2,098

95%

$ 658

$ 2,926

1.7x

18%

11%

$ 82

$ 792

1.8x

16%

CRSEF II (Nov 2022 / Aug 2027)

$ 1,187

$ 492

41%

$ —

$ 835

1.7x

NM

NM

$ 16

n/a

n/a

n/a

NGP XIII (Feb 2023 / Feb 2028)

$ 2,300

$ 491

21%

$ 49

$ 732

1.6x

NM

NM

$ 4

$ 91

3.3x

NM

NGP XII (Jul 2017 / Jul 2022)

$ 4,304

$ 3,652

85%

$ 4,779

$ 2,747

2.1x

21%

15%

$ 32

$ 4,456

2.8x

33%

NGP XI (Oct 2014 / Jul 2017)

$ 5,325

$ 5,034

95%

$ 8,112

$ 1,709

2.0x

13%

10%

$ 64

$ 7,380

2.1x

17%

NGP X (Jan 2012 / Dec 2014)

$ 3,586

$ 3,351

93%

$ 3,458

$ 307

1.1x

3%

—%

$ —

$ 3,272

1.2x

5%

All Other Active Funds & Vehicles(19)

$ 5,029

n/a

$ 3,191

$ 4,783

1.6x

15%

12%

$ 31

$ 3,156

2.3x

19%

Fully Realized Funds & Vehicles(15)(20)

$ 3,534

n/a

$ 5,574

$ 6

1.6x

8%

5%

$ 1

$ 5,579

1.6x

8%

TOTAL INFRASTRUCTURE & NATURAL
RESOURCES(16)

$ 27,157

n/a

$ 29,991

$ 16,516

1.7x

12%

8%

$ 314

$ 29,228

1.9x

14%

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

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

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

 

Three Months Ended
September 30,

Change

Nine Months Ended
September 30,

Change

 

2025

2024

$

%

2025

2024

$

%

 

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 146.5

$ 142.8

$ 3.7

3 %

$ 456.1

$ 420.5

$ 35.6

8 %

Portfolio advisory and
transaction fees, net and other

25.6

21.4

4.2

20 %

130.0

66.0

64.0

97 %

Fee related performance
revenues

28.6

29.0

(0.4)

(1) %

86.0

81.2

4.8

6 %

Total fund level fee revenues

200.7

193.2

7.5

4 %

672.1

567.7

104.4

18 %

Realized performance revenues

8.2

11.5

(3.3)

(29) %

26.6

19.0

7.6

40 %

Realized principal investment
income (loss)

42.8

(2.8)

45.6

NM

60.3

30.2

30.1

100 %

Interest income

8.1

9.8

(1.7)

(17) %

22.1

30.6

(8.5)

(28) %

Total revenues

259.8

211.7

48.1

23 %

781.1

647.5

133.6

21 %

Segment Expenses

Compensation and benefits

Cash-based compensation and
benefits

83.8

76.5

7.3

10 %

261.0

227.3

33.7

15 %

Realized performance revenues
related compensation

4.7

6.9

(2.2)

(32) %

15.7

11.5

4.2

37 %

Total compensation and
benefits

88.5

83.4

5.1

6 %

276.7

238.8

37.9

16 %

General, administrative, and other
indirect expenses

28.5

31.2

(2.7)

(9) %

99.7

96.1

3.6

4 %

Depreciation and amortization
expense

4.3

3.3

1.0

30 %

12.0

9.6

2.4

25 %

Interest expense

12.1

13.3

(1.2)

(9) %

34.9

40.6

(5.7)

(14) %

Total expenses

133.4

131.2

2.2

2 %

423.3

385.1

38.2

10 %

(=) Distributable Earnings

$ 126.4

$ 80.5

$ 45.9

57 %

$ 357.8

$ 262.4

$ 95.4

36 %

(-) Realized Net Performance
Revenues

3.5

4.6

(1.1)

(24) %

10.9

7.5

3.4

45 %

(-) Realized Principal Investment
Income (loss)

42.8

(2.8)

45.6

NM

60.3

30.2

30.1

100 %

(+) Net Interest

4.0

3.5

0.5

14 %

12.8

10.0

2.8

28 %

(=) Fee Related Earnings

$ 84.1

$ 82.2

$ 1.9

2 %

$ 299.4

$ 234.7

$ 64.7

28 %

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Distributable Earnings
Distributable Earnings increased $45.9 million for the three months ended September 30, 2025 , as compared to the three
months ended September 30, 2024 , and increased $95.4 million for the nine months ended September 30, 2025 , as compared to
the nine months ended September 30, 2024 . The following table provides the components of the changes in Distributable
Earnings for the three and nine months ended September 30, 2025 :

Three Months Ended
September 30,

Nine Months Ended
September 30,

2025 v. 2024

(Dollars in millions)

Distributable Earnings, September 30, 2024

$ 80.5

$ 262.4

Increases (decreases):

Increase in fee related earnings

1.9

64.7

(Decrease) increase in realized net performance revenues

(1.1)

3.4

Increase in realized principal investment income

45.6

30.1

Increase in net interest

(0.5)

(2.8)

Total increase

45.9

95.4

Distributable Earnings, September 30, 2025

$ 126.4

$ 357.8

Realized Principal Investment Income . Realized principal investment income increased $45.6 million for the three months
ended September 30, 2025 , as compared to the three months ended September 30, 2024 , and increased $30.1 million for the
nine months ended September 30, 2025 , as compared to the nine months ended September 30, 2024 , primarily attributable to
dividend income received of $31.4 million from our equity method investment in Carlyle FRL during the three months ended
September 30, 2025 . The increase for the nine months ended September 30, 2025 , as compared to the nine months ended
September 30, 2024 , was partially offset by lower realized principal investment income from our CLOs .
Fee Related Earnings
Fee Related Earnings increased $1.9 million for the three months ended September 30, 2025 , as compared to the three
months ended September 30, 2024 , and increased $64.7 million for the nine months ended September 30, 2025 , as compared to
the nine months ended September 30, 2024 . The following table provides the components of the changes in Fee Related
Earnings for the three and nine months ended September 30, 2025 :

Three Months Ended
September 30,

Nine Months Ended
September 30,

2025 v. 2024

(Dollars in millions)

Fee Related Earnings, September 30, 2024

$ 82.2

$ 234.7

Increases (decreases):

Increase in fee revenues

7.5

104.4

Increase in cash-based compensation and benefits

(7.3)

(33.7)

Decrease (increase) in general, administrative and other indirect expenses

2.7

(3.6)

All other changes

(1.0)

(2.4)

Total increase

1.9

64.7

Fee Related Earnings, September 30, 2025

$ 84.1

$ 299.4

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Fee Revenues . Fee revenues increased $7.5 million for the three months ended September 30, 2025 , as compared to the
three months ended September 30, 2024 , and increased $104.4 million for the nine months ended September 30, 2025 , as
compared to the nine months ended September 30, 2024 , due to the following:

Three Months Ended
September 30,

Nine Months Ended
September 30,

2025 v. 2024

(Dollars in millions)

Higher fund management fees

$ 3.7

$ 35.6

Higher portfolio advisory and transaction fees, net and other

4.2

64.0

(Lower) higher fee related performance revenues

(0.4)

4.8

Total increase in fee revenues

$ 7.5

$ 104.4

The increase in Fund management fees for the nine months ended September 30, 2025 as compared to the nine months
ended September 30, 2024 was primarily attributable to the receipt of approximately $19 million of catch-up subordinated
management fees in certain aviation funds during the nine months ended September 30, 2025 , due in part to the collection of
insurance proceeds and in part due to the sale of collateral in those vehicles, and an increase in management fees from our direct
lending business and CTAC. These were partially offset by lower management fees from our liquid credit business.
The increase in portfolio advisory and transaction fees, net and other fees for the three and nine months ended September
30, 2025 as compared to the three and nine months ended September 30, 2024 was primarily driven by an increase in capital
markets fees. The recognition of capital markets fees can be volatile as they are primarily generated by inve stment activit y. See
“—Trends Affecting Our Business” for further discussion on our investment activity and broader market trends.
Cash-based compensation and benefits expense . Cash-based compensation and benefits expense increased $7.3 million
for the three months ended September 30, 2025 , as compared to the three months ended September 30, 2024 , and increased
$33.7 million for the nine months ended September 30, 2025 , as compared to the nine months ended September 30, 2024 ,
primarily due to an increase in accrued bonuses related to capital markets fees as well as higher headcount.

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

 

As of September 30,

 

2025

2024

Global Credit

(Dollars in millions)

Components of Fee-earning AUM (1)

Fee-earning AUM based on capital commitments

$ 2,504

$ 2,467

Fee-earning AUM based on invested capital

21,110

19,220

Fee-earning AUM based on collateral balances, at par

43,929

46,454

Fee-earning AUM based on net asset value

3,821

2,409

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

95,800

88,611

Total Fee-earning AUM

$ 167,164

$ 159,161

Annualized Management Fee Rate (3)

0.37 %

0.36 %

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

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

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

Global Credit

(Dollars in millions)

Fee-earning AUM Rollforward

Balance, Beginning of Period

$ 162,784

$ 155,437

$ 154,186

$ 155,238

Inflows (1)

8,983

2,594

21,264

10,216

Outflows (including realizations) (2)

(4,878)

(3,137)

(11,406)

(8,901)

Market Activity & Other (3)

278

3,868

1,980

2,553

Foreign Exchange (4)

(3)

399

1,140

55

Balance, End of Period

$ 167,164

$ 159,161

$ 167,164

$ 159,161

(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based
on commitments were activated during the period, the fee-earning commitments invested in vehicles for which management fees are
based on invested capital, the fee-earning collateral balance of new CLO issuances, closed reinsurance transactions at Fortitude, and
gross subscriptions in our vehicles for which management fees are based on net asset value.
(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair
value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has
expired during the period, reductions for funds that are no longer calling for fees, gross redemptions in our open-ended funds, and
outflows from our liquid credit products. Realizations for funds earning management fees based on commitments during the period do
not affect Fee-earning AUM.
(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in funds or vehicles based on the
lower of cost or fair value or net asset value, activity of funds with fees based on gross asset value, and changes in the fair value of
Fortitude’s general account assets covered by the strategic advisory services agreement.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Fee-earning AUM was $167.2 billion at September 30, 2025 , an increase of 3% from $162.8 billion at June 30, 2025 . The
net increase was due to:
• Inflows of $9.0 billion , which were driven by over $4 billion of closed reinsurance transactions at Fortitude and
deployment across the platform, including the closing of two U.S. CLOs and two Euro CLOs.
Offsetting these increases were:
• Outflows of $4.9 billion , which included outflows from our liquid credit products and realizations across the
platform.
Fee-earning AUM was $167.2 billion at September 30, 2025 , an increase of 8% from $154.2 billion at December 31,
2024 . The net increase was due to:
• Inflows of $21.3 billion , which were driven by nearly $9 billion of closed reinsurance transactions at Fortitude and
capital deployment across the platform, including the closing of four U.S. CLOs and two Euro CLOs;
• Positive market activity of $2.0 billion , which primarily reflected an increase in the fair value of assets covered by
the Fortitude strategic advisory services agreement, as well as increases in our cross-platform credit and direct
lending products; and
• Positive foreign exchange activity of $1.1 billion reflecting the translation of our EUR-denominated products to
USD.
Offsetting these increases were:
• Outflows of $11.4 billion , which were driven by outflows from our liquid credit products and realizations in our
aviation and opportunistic credit funds.

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Fee-earning AUM was $167.2 billion at September 30, 2025 , an increase of 5% from $159.2 billion at September 30,
2024 . The net increase was due to:
• Inflows of $26.4 billion , which reflected capital deployment across the platform, notably in our liquid credit
products, including the closing of eight U.S. CLOs and three Euro CLOs, and asset-backed finance, direct lending,
and opportunistic credit funds, as well as nearly $9 billion of closed reinsurance transactions at Fortitude.
Offsetting these increases were:
• Outflows of $15.0 billion , which included outflows from our liquid credit products and realizations across the
platform; and
• Negative market activity of $3.9 billion , which primarily reflected a decrease in the fair value of assets covered by
the Fortitude strategic advisory services agreement, partially offset by increases in our cross-platform credit
products.
Total AUM
The table below provides the period to period rollforward of Total AUM.  

 

Three Months Ended
September 30, 2025

Nine Months Ended
September 30, 2025

 

(Dollars in millions)

Global Credit

Total AUM Rollforward

Balance, Beginning of Period

$ 203,027

$ 192,374

Inflows (1)

9,900

22,882

Outflows (including realizations) (2)

(6,331)

(13,065)

Market Activity & Other (3)

1,877

5,049

Foreign Exchange (4)

1

1,234

Balance, End of Period

$ 208,474

$ 208,474

(1) Inflows generally reflects the impact of gross fundraising and closed reinsurance transactions at Fortitude during the period. For funds
or vehicles denominated in foreign currencies, this reflects translation at the average quarterly rate.
(2) Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and
separately managed accounts, gross redemptions in our open-ended funds, outflows from our liquid credit products, and the expiration
of available capital.
(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related
co-investment vehicles, and separately managed accounts, as well as the impact of fees, expenses and non-investment income, change
in gross asset value for our business development companies, changes in the fair value of Fortitude’s general account assets covered by
the strategic advisory services agreement, and other changes in AUM.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Total AUM was $208.5 billion at September 30, 2025 , an increase of 3% compared to $203.0 billion at June 30, 2025 .
The net increase was due to:
• Inflows of $9.9 billion , which were driven by capital raised in our liquid credit products, including the closing of
two U.S. CLOs and two Euro CLOs, and asset-backed finance products, as well as over $4 billion of closed
reinsurance transactions at Fortitude; and
• Positive market activity of $1.9 billion , primarily from an increase in the fair value of our cross-platform credit,
opportunistic credit, and direct lending products.
Offsetting these increases were:
• Outflows of $6.3 billion for the period, which primarily reflected outflows from our liquid credit products and
realizations across the platform, notably in our asset-backed finance products.

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Total AUM was $208.5 billion at September 30, 2025 , an increase of 8% compared to $192.4 billion at December 31,
2024 . The net increase was due to:
• Inflows of $22.9 billion , which were driven by capital raised in our liquid credit products, including the closing of
four U.S. CLOs and two Euro CLOs, as well as our asset-backed finance, cross-platform credit, aviation, and
opportunistic credit products, and nearly $9 billion of closed reinsurance transactions at Fortitude;
• Positive market activity of $5.0 billion , which primarily reflected an increase in the fair value of our direct lending
and cross-platform credit products, as well as an increase in the fair value of assets covered by the Fortitude strategic
advisory services agreement; and
• Positive foreign exchange activity of $1.2 billion reflecting the translation of our EUR-denominated products to
USD.
Offsetting these increases were:
• Outflows of $13.1 billion for the period, which were primarily in our liquid credit products, with additional activity
reflecting realizations across the platform, notably in our asset-backed finance and aviation products.
Fund Performance Metrics
Fund performance information for certain of our Global Credit funds is included throughout this discussion and analysis
to facilitate an understanding of our results of operations for the periods presented. The fund return information reflected in this
discussion and analysis is not indicative of the performance of The Carlyle Group Inc. and is also not necessarily indicative of
the future performance of any particular fund. An investment in The Carlyle Group Inc. is not an investment in any of our
funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.
The following table reflects the performance of our significant carry funds in our Global Credit business. Please see “—
Our Global Investment Offerings” for a legend of the fund acronyms listed below. 

(Dollars in millions)

 

TOTAL INVESTMENTS

 

 

As of September 30, 2025

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

Committed
Capital(12)

Cumulative
Invested 
Capital (1)

Percent
Invested

Realized
Value (2)

Remaining
Fair Value
(3)

MOIC (4)

Gross IRR
(5) (8)

Net IRR
(6) (8)

Net Accrued
Carry/(Giveback)
(7)

Global Credit Carry Funds

CCOF III - Levered (Feb 2023 / Oct 2028)

$ 4,678

$ 3,558

76%

$ 589

$ 3,540

1.2x

NM

NM

$ 19

CCOF II (Nov 2020 / Mar 2026)

$ 4,430

$ 5,846

132%

$ 3,585

$ 4,466

1.4x

14%

10%

$ 121

CCOF I (Nov 2017 / Sep 2022)

$ 2,373

$ 3,514

148%

$ 3,818

$ 1,253

1.4x

16%

12%

$ 31

CSP IV (Apr 2016 / Dec 2020)

$ 2,500

$ 2,500

100%

$ 1,667

$ 1,852

1.4x

10%

5%

$ —

CICF II (Mar  2024 / Dec 2029)

$ 1,379

$ 265

19%

$ 35

$ 259

1.1x

NM

NM

$ 1

SASOF III (Nov 2014 / n/a)

$ 833

$ 991

119%

$ 1,267

$ 91

1.4x

19%

12%

$ 7

All Other Active Funds & Vehicles(9)

$ 12,464

n/a

$ 4,302

$ 11,035

1.2x

11%

9%

$ 88

Fully Realized Funds & Vehicles(10)(13)

$ 9,698

n/a

$ 12,155

$ 35

1.3x

9%

4%

$ —

TOTAL GLOBAL CREDIT CARRY FUNDS

$ 38,835

n/a

$ 27,419

$ 22,530

1.3x

11%

7%

$ 266

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

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

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

 

Three Months Ended
September 30,

Change

Nine Months Ended
September 30,

Change

 

2025

2024

$

%

2025

2024

$

%

 

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 132.4

$ 85.1

$ 47.3

56 %

$ 352.5

$ 238.7

$ 113.8

48 %

Portfolio advisory and
transaction fees, net and other

0.2

0.1

0.1

100 %

0.2

0.2

—

— %

Fee related performance
revenues

18.9

7.3

11.6

159 %

39.7

10.4

29.3

282 %

Total fund level fee revenues

151.5

92.5

59.0

64 %

392.4

249.3

143.1

57 %

Realized performance revenues

15.5

39.2

(23.7)

(60) %

50.2

82.5

(32.3)

(39) %

Realized principal investment
income

7.1

1.9

5.2

274 %

25.6

3.5

22.1

NM

Interest income

2.1

2.3

(0.2)

(9) %

6.3

5.8

0.5

9 %

Total revenues

176.2

135.9

40.3

30 %

474.5

341.1

133.4

39 %

Segment Expenses

Compensation and benefits

Cash-based compensation and
benefits

39.3

30.0

9.3

31 %

110.8

85.6

25.2

29 %

Realized performance revenues
related compensation

13.7

36.9

(23.2)

(63) %

41.2

73.2

(32.0)

(44) %

Total compensation and
benefits

53.0

66.9

(13.9)

(21) %

152.0

158.8

(6.8)

(4) %

General, administrative, and other
indirect expenses

22.6

13.2

9.4

71 %

54.3

37.1

17.2

46 %

Depreciation and amortization
expense

2.1

1.8

0.3

17 %

6.0

5.0

1.0

20 %

Interest expense

3.3

2.9

0.4

14 %

9.5

8.7

0.8

9 %

Total expenses

81.0

84.8

(3.8)

(4) %

221.8

209.6

12.2

6 %

(=) Distributable Earnings

$ 95.2

$ 51.1

$ 44.1

86 %

$ 252.7

$ 131.5

$ 121.2

92 %

(-) Realized Net Performance
Revenues

1.8

2.3

(0.5)

(22) %

9.0

9.3

(0.3)

(3) %

(-) Realized Principal Investment
Income

7.1

1.9

5.2

274 %

25.6

3.5

22.1

NM

(+) Net Interest

1.2

0.6

0.6

100 %

3.2

2.9

0.3

10 %

(=) Fee Related Earnings

$ 87.5

$ 47.5

$ 40.0

84 %

$ 221.3

$ 121.6

$ 99.7

82 %

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Distributable Earnings
Distributable Earnings increased $44.1 million for the three months ended September 30, 2025 , as compared to the three
months ended September 30, 2024 , and increased $121.2 million for the nine months ended September 30, 2025 , as compared
to the nine months ended September 30, 2024 . The following table provides the components of the changes in Distributable
Earnings for the three and nine months ended September 30, 2025 :

Three Months Ended
September 30,

Nine Months Ended
September 30,

2025 v. 2024

(Dollars in millions)

Distributable Earnings, September 30, 2024

$ 51.1

$ 131.5

Increases (decreases):

Increase in fee related earnings

40.0

99.7

Decrease in realized net performance revenues

(0.5)

(0.3)

Increase in realized principal investment income

5.2

22.1

Increase in net interest

(0.6)

(0.3)

Total increase

44.1

121.2

Distributable Earnings, September 30, 2025

$ 95.2

$ 252.7

Realized Principal Investment Income . Realized principal investment income increased $5.2 million for the three months
ended September 30, 2025 , as compared to the three months ended September 30, 2024 .  Realized principal investment income
increased $22.1 million for the nine months ended September 30, 2025 , as compared to the nine months ended September 30,
2024 , primarily driven by our investment in the CAPM funds .
Fee Related Earnings
Fee Related Earnings increased $40.0 million for the three months ended September 30, 2025 , as compared to the three
months ended September 30, 2024 , and increased $99.7 million for the nine months ended September 30, 2025 , as compared to
the nine months ended September 30, 2024 . The following table provides the components of the changes in Fee Related
Earnings for the three and nine months ended September 30, 2025 :

Three Months Ended
September 30,

Nine Months Ended
September 30,

2025 v. 2024

(Dollars in millions)

Fee Related Earnings, September 30, 2024

$ 47.5

$ 121.6

Increases (decreases):

Increase in fee revenues

59.0

143.1

Increase in cash-based compensation and benefits

(9.3)

(25.2)

Increase in general, administrative and other indirect expenses

(9.4)

(17.2)

All other changes

(0.3)

(1.0)

Total increase

40.0

99.7

Fee Related Earnings, September 30, 2025

$ 87.5

$ 221.3

Fee Revenues . Fee revenues increased $59.0 million for the three months ended September 30, 2025 , as compared to the
three months ended September 30, 2024 , and increased $143.1 million for the nine months ended September 30, 2025 , as
compared to the nine months ended September 30, 2024 , driven by an increase in Fund management fees of $47.3 million and
$113.8 million , respectively, and an increase in Fee related performance revenues of $11.6 million and $29.3 million ,
respectively. The increase in Fund management fees was primarily driven by the impact of fundraising in our most recent
vintage of secondaries & portfolio finance funds. Fund management fees included catch-up management fees of $31.1 million
and $55.6 million for the three and nine months ended September 30, 2025, respectively, an increase of $24.2 million and
$46.0 million , respectively, relative to the comparable 2024 periods. Fundraising for our most recent vintage of secondaries &
portfolio finance funds concluded in the third quarter and therefore these catch-up management fees will not recur next quarter.

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Our CAPM funds also contributed to the increase in Fund management fees, and drove the increase in Fee related performance
revenues due to its growing capital base and performance.
Cash-based compensation and benefits expense . Cash-based compensation and benefits expense increased $9.3 million
for the three months ended September 30, 2025 , as compared to the three months ended September 30, 2024 , and increased
$25.2 million for the nine months ended September 30, 2025 , as compared to the nine months ended September 30, 2024 ,
primarily due to an increase in headcount and an increase in compensation associated with fee related performance revenues.
General, administrative and other indirect expenses . General, administrative and other indirect expenses increased $9.4
million for the three months ended September 30, 2025 , as compared to the three months ended September 30, 2024 , and
increased $17.2 million for the nine months ended September 30, 2025 as compared to the nine months ended September 30,
2024 , primarily due to higher external fundraising costs.

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

 

As of September 30,

 

2025

2024

Carlyle AlpInvest

(Dollars in millions)

Components of Fee-earning AUM (1)

Fee-earning AUM based on capital commitments

$ 27,966

$ 20,485

Fee-earning AUM based on invested capital (2)

8,968

9,205

Fee-earning AUM based on net asset value

17,051

12,383

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

9,658

8,850

Total Fee-earning AUM

$ 63,643

$ 50,923

Annualized Management Fee Rate (3)

0.69 %

0.65 %

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

 

Three Months Ended
September 30,

Nine Months Ended
September 30,

 

2025

2024

2025

2024

Carlyle AlpInvest

(Dollars in millions)

Fee-earning AUM Rollforward

Balance, Beginning of Period

$ 59,587

$ 48,246

$ 52,139

$ 45,529

Inflows (1)

4,696

2,257

11,653

6,851

Outflows (including realizations) (2)

(1,102)

(616)

(2,969)

(2,435)

Market Activity & Other (3)

473

358

668

832

Foreign Exchange (4)

(11)

678

2,152

146

Balance, End of Period

$ 63,643

$ 50,923

$ 63,643

$ 50,923

(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based
on commitments were activated during the period and the fee-earning commitments invested in vehicles for which management fees are
based on invested capital. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which are
referenced as Pending Fee-earning AUM.
(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair
value, changes in basis for funds where the investment period, weighted-average investment period, or commitment fee period has
expired during the period, and reductions for funds that are no longer calling for fees. Distributions for funds earning management fees
based on commitments during the period do not affect Fee-earning AUM.

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(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the
lower of cost or fair value and net asset value.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Fee-earning AUM was $63.6 billion at September 30, 2025 , an increase of 7% from $59.6 billion at June 30, 2025 . The
net increase was due to:
• Inflows of $4.7 billion , which were driven by fee-paying capital raised and investment activity across all strategies,
notably in our secondaries & portfolio finance, CAPM, and CAPS funds.
Offsetting these increases were:
• Outflows of $1.1 billion , which were driven by realizations in funds, across all strategies, that charge fees on
invested capital.
Fee-earning AUM was $63.6 billion at September 30, 2025 , an increase of 22% from $52.1 billion at December 31, 2024 .
The net increase was due to:
• Inflows of $11.7 billion , which were driven by fee-paying capital raised and investment activity across all strategies,
notably in our secondaries & portfolio finance funds; and
• Positive foreign exchange activity of $2.2 billion , primarily from the translation of our EUR-denominated funds to
USD.
Offsetting these increases were:
• Outflows of $3.0 billion , which were driven by realizations across all strategies in funds that charge fees on invested
capital.
Fee-earning AUM was $63.6 billion at September 30, 2025 , an increase of 25% compared to $50.9 billion at
September 30, 2024 . The net increase was due to:
• Inflows of $14.7 billion , which were driven by fee-paying capital raised and investment activity in our secondaries
& portfolio finance and CAPM funds;
• Market appreciation of $1.5 billion , which was driven by certain funds in our secondaries & portfolio finance and
primary strategies, as well as our CAPM funds, in which fees are based on fair value; and
• Positive foreign exchange activity of $0.9 billion , primarily from the translation of our EUR-denominated funds to
USD.
Offsetting these increases were:
• Outflows of $4.4 billion , which reflected realizations across all strategies and step-downs in fee bases in our primary
funds.

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

 

Three Months Ended
September 30, 2025

Nine Months Ended
September 30, 2025

 

(Dollars in millions)

Carlyle AlpInvest

Total AUM Rollforward

Balance, Beginning of Period

$ 96,518

$ 85,113

Inflows (1)

6,318

15,392

Outflows (including realizations) (2)

(2,715)

(6,346)

Market Activity & Other (3)

2,062

4,279

Foreign Exchange (4)

(48)

3,697

Balance, End of Period

$ 102,135

$ 102,135

(1) Inflows reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects
translation at the average quarterly rate.
(2) Outflows includes distributions in our carry funds, related co-investment vehicles and separately managed accounts, as well as the
expiration of available capital.
(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related
co-investment vehicles and separately managed accounts, the net impact of fees, expenses and non-investment income, as well as other
changes in AUM.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Total AUM was $102.1 billion at September 30, 2025 , an increase of 6% compared to $96.5 billion at June 30, 2025 . The
net increase was due to:
• Inflows of $6.3 billion , which reflected fundraising across the segment, notably in our secondaries & portfolio
finance, CAPS, and CAPM funds; and
• Market appreciation of $2.1 billion , which was driven by our secondaries & portfolio finance and primary funds.
Offsetting these increases were:
• Outflows of $2.7 billion , predominantly from realizations in our co-investment and secondaries & portfolio finance
strategies.
Total AUM was $102.1 billion at September 30, 2025 , an increase of 20% compared to $85.1 billion at December 31,
2024 . The net increase was due to:
• Inflows of $15.4 billion , which reflected fundraising across the platform, notably in our secondaries & portfolio
finance and co-investment strategies, as well as the CAPM and CAPS funds;
• Market appreciation of $4.3 billion , which was driven by our secondaries & portfolio finance and co-investment
strategies; and
• Positive foreign exchange activity of $3.7 billion , primarily from the translation of our EUR-denominated funds to
USD.
Offsetting these increases were:
• Outflows of $6.3 billion which reflected realizations across all strategies.
Fund Performance Metrics
The fund return information reflected in this discussion and analysis is not indicative of the performance of The Carlyle
Group Inc. and is also not necessarily indicative of the future performance of any particular fund. An investment in The Carlyle

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

(Amounts in millions)

 

 

TOTAL INVESTMENTS

 

 

 

As of September 30, 2025

Carlyle AlpInvest (1)(8)

Vintage
Year

Fund Size

Cumulative
Invested
Capital
(2)(3)

Realized
Value (3)

Remaining
Fair Value
(3)

Total Fair
Value(3)(4)

MOIC
(5)

Gross
IRR  
(6)(10)

Net
IRR
(7)(10)

Net Accrued
Carry/
(Giveback)
(12)

 

 

 

(Reported in Local Currency, in Millions)

Secondaries &
Portfolio
Finance

ASF VIII

2024

$ 13,422

$ 5,576

$ 149

$ 7,138

$ 7,287

1.3x

NM

NM

$ 56

ASF VII

2020

$ 6,769

$ 4,926

$ 1,993

$ 5,839

$ 7,832

1.6x

18%

14%

$ 118

ASF VII - SMAs

2020

€ 2,027

€ 1,693

€ 556

€ 1,982

€ 2,537

1.5x

16%

14%

$ 38

ASF VI

2017

$ 3,333

$ 2,810

$ 2,791

$ 1,850

$ 4,641

1.7x

15%

11%

$ 59

ASF VI - SMAs

2017

€ 2,817

€ 2,613

€ 2,396

€ 1,796

€ 4,192

1.6x

13%

12%

$ 49

ASF V

2012

$ 756

$ 673

$ 1,083

$ 120

$ 1,203

1.8x

18%

14%

$ 5

ASF V - SMAs

2012

€ 3,916

€ 3,913

€ 6,797

€ 457

€ 7,254

1.9x

21%

19%

$ 10

SMAs 2009-2011

2010

€ 1,859

€ 1,929

€ 3,328

€ 37

€ 3,366

1.7x

19%

18%

$ —

ASPF II

2023

$ 2,227

$ 707

$ 255

$ 609

$ 864

1.2x

NM

NM

$ 7

All Other Active Funds & Vehicles (9)

Various

$ 2,015

$ 861

$ 1,911

$ 2,772

1.4x

21%

18%

$ 34

Fully Realized Funds & Vehicles

Various

€ 4,079

€ 6,714

€ 11

€ 6,725

1.6x

19%

18%

$ —

Co-Investments

ACF IX

2023

$ 4,120

$ 1,684

$ 15

$ 1,926

$ 1,941

1.2x

NM

NM

$ 3

ACF VIII

2021

$ 3,614

$ 3,458

$ 417

$ 4,481

$ 4,899

1.4x

12%

10%

$ 48

ACF VIII - SMAs

2021

$ 1,079

$ 1,000

$ 115

$ 1,290

$ 1,405

1.4x

13%

11%

$ 12

ACF VII

2017

$ 1,688

$ 1,668

$ 1,425

$ 1,929

$ 3,354

2.0x

15%

13%

$ 60

ACF VII - SMAs

2017

€ 1,452

€ 1,365

€ 960

€ 1,609

€ 2,569

1.9x

14%

12%

$ 43

SMAs 2014-2016

2014

€ 1,274

€ 1,064

€ 2,280

€ 436

€ 2,716

2.6x

24%

22%

$ 8

SMAs 2012-2013

2012

€ 1,124

€ 1,011

€ 2,767

€ 123

€ 2,890

2.9x

28%

26%

$ 1

SMAs 2009-2010

2010

€ 1,475

€ 1,317

€ 3,494

€ 392

€ 3,886

2.9x

23%

21%

$ —

Strategic SMAs

Various

$ 4,523

$ 2,061

$ 5,699

$ 7,760

1.7x

16%

15%

$ 81

All Other Active Funds & Vehicles (9)

Various

€ 283

€ 166

€ 260

€ 425

1.5x

33%

31%

$ 2

Fully Realized Funds & Vehicles

Various

€ 5,781

€ 9,895

€ 7

€ 9,902

1.7x

15%

13%

$ —

Primary
Investments

SMAs 2024-2026

2024

€ 3,230

€ 115

€ 4

€ 112

€ 116

1.0x

NM

NM

$ —

SMAs 2021-2023

2021

€ 4,535

€ 1,606

€ 105

€ 1,837

€ 1,942

1.2x

NM

NM

$ 1

SMAs 2018-2020

2018

$ 3,116

$ 2,596

$ 732

$ 3,156

$ 3,888

1.5x

15%

14%

$ 4

SMAs 2015-2017

2015

€ 2,501

€ 2,447

€ 2,704

€ 2,186

€ 4,891

2.0x

19%

19%

$ 9

SMAs 2012-2014

2012

€ 5,080

€ 5,684

€ 9,415

€ 3,019

€ 12,433

2.2x

17%

17%

$ 11

SMAs 2009-2011

2009

€ 4,877

€ 5,520

€ 10,323

€ 1,736

€ 12,060

2.2x

17%

17%

$ 1

SMAs 2006-2008

2005

€ 11,500

€ 12,821

€ 21,309

€ 1,212

€ 22,522

1.8x

10%

10%

$ —

SMAs 2003-2005

2003

€ 4,628

€ 4,877

€ 7,762

€ 135

€ 7,897

1.6x

10%

9%

$ —

All Other Active Funds & Vehicles (9)

Various

€ 1,741

€ 1,748

€ 227

€ 1,975

1.1x

3%

2%

$ —

Fully Realized Funds & Vehicles

Various

€ 4,740

€ 7,728

€ 20

€ 7,748

1.6x

12%

11%

$ —

TOTAL CARLYLE ALPINVEST (USD)(11)

$ 107,582

$ 129,991

$ 56,634

$ 186,625

1.7x

14%

13%

$ 660

(1) Includes private equity and mezzanine primary fund investments, secondary fund investments and co-investments
originated by AlpInvest. Excluded from the performance information shown are: (a) investments that were not originated
by AlpInvest (i.e., AlpInvest did not make the original investment decision or recommendation); (b) Direct Investments,
which was spun off from AlpInvest in 2005; (c) Carlyle AlpInvest Private Markets (“CAPM”); (d) Carlyle AlpInvest
Private Markets Secondaries (“CAPS”); and (e) LP co-investment vehicles managed by AlpInvest. As of September 30,
2025, these excluded portfolios amounted to approximately $15.1 billion of AUM in the aggregate.
(2) Represents the original cost of investments since inception of the fund.
(3) To exclude the impact of FX, all foreign currency cash flows have been converted to the currency representing a majority
of the capital committed to the relevant fund at the reporting period spot rate.
(4) Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried
interest.
(5) Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest,
divided by cumulative invested capital.

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

Liquidity and Capital Resources
Historical Liquidity and Capital Resources
We have historically required limited capital resources to support the working capital and operating needs of our
business. Our management fees have largely covered our operating costs and all realized performance allocations, after
covering the related compensation, are available for distribution to stockholders. Approximately 95% – 97% of all capital
commitments to our funds are provided by our fund investors, with the remaining amount typically funded by Carlyle, our
senior Carlyle professionals, advisors, and other professionals. We may elect to invest additional amounts in funds focused on
new investment areas. We may also invest in or alongside our funds and may transfer those investments to newly developed
products.
Our Sources of Liquidity
We have multiple sources of liquidity to meet our capital needs, including cash on hand, annual cash flows, accumulated
earnings, cash we receive from our notes offerings, and funds from our senior revolving credit facility, which had $1.0 billion
of available capacity as of September 30, 2025 . Although we may consider other financings to invest in growing our business,
such as the $800.0 million senior note offering during the quarter ended September 30, 2025 , we believe these sources will be
sufficient to fund our capital needs for at least the next twelve months. We believe we will meet longer-term expected future
cash requirements and obligations through a combination of existing cash and cash equivalent balances, cash flow from
operations, accumulated earnings, and amounts available for borrowing from our senior revolving credit facility or other
financings.
Cash and cash equivalents . Cash and cash equivalents were approximately $2.2 billion at September 30, 2025 . However,
a portion of this cash is allocated for specific business purposes, including, but not limited to: (i) performance allocations and
incentive fee related cash that has been received but not yet distributed as performance allocations and incentive fee related
compensation and amounts owed to non-controlling interests, (ii) proceeds received from realized investments that are allocable
to non-controlling interests, and (iii) regulatory capital.

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Corporate Treasury Investments . These investments represent investments in U.S. Treasury and government agency
obligations, commercial paper, certificates of deposit, other investment grade securities and other investments with original
maturities of greater than three months when purchased.
After deducting cash amounts allocated to the specific requirements mentioned above, the remaining cash, cash
equivalents, and corporate treasury investments (if any), was approximately $2.1 billion as of September 30, 2025 . This
remaining amount will be used towards our primary liquidity needs, as outlined in the next section. This amount does not take
into consideration ordinary course of business payables and reserves for specific business purposes.
Senior Revolving Credit Facility . The capacity under the amended and restated revolving credit facility is $1.0 billion ,
which was amended in May 2025 to extend the maturity date from April 29, 2027 to May 29, 2030 . The Company’s borrowing
capacity is subject to the ability of the financial institutions in the banking syndicate to fulfill their respective obligations under
the revolving credit facility. Principal amounts outstanding under the amended and restated revolving credit facility accrue
interest, at the option of the borrowers, either (a) at an alternate base rate plus an applicable margin not to exceed 0.50% per
annum, or (b) at SOFR (or similar benchmark rate for non-U.S. dollar borrowings) plus a 0.10% adjustment and an applicable
margin not to exceed 1.50% per annum ( 5.23% at September 30, 2025 ). As of September 30, 2025 , there were no amounts
outstanding under the senior revolving credit facility.
The senior revolving credit facility is unsecured. We are required to maintain management fee-earning assets (as defined
in the amended and restated senior revolving credit facility) of at least $156.9 billion and a total leverage ratio of less than 4.0 to
1.0, in each case, tested on a quarterly basis. Non-compliance with any of the financial or non-financial covenants without cure
or waiver would constitute an event of default under the senior revolving credit facility. An event of default resulting from a
breach of certain financial or non-financial covenants may result, at the option of the lenders, in an acceleration of the principal
and interest outstanding, and a termination of the senior revolving credit facility. The senior revolving credit facility also
contains other customary events of default, including defaults based on events of bankruptcy and insolvency, nonpayment of
principal, interest or fees when due, breach of specified covenants, change in control, and material inaccuracy of representations
and warranties.
Global Credit Revolving Credit Facility . Certain subsidiaries of the Company are parties to a revolving line of credit,
primarily intended to support certain lending activities within the Global Credit segment. As currently amended, the Global
Credit Revolving Credit Facility provides for a revolving line of credit with a capacity of $300 million , which matures in
September 2027, and a second revolving line of credit with a capacity of $200 million , which 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% . As of September 30, 2025 , there was no borrowing outstanding under the Global Credit Revolving Credit Facility.
CLO Borrowings . For certain of our CLOs, the Company finances a portion of its investment in the CLOs through the
proceeds received from term loans and other financing arrangements with financial institutions or other financing arrangements. 
The Company’s CLO borrowings were $337.0 million at September 30, 2025 . The CLO borrowings are secured by the
Company’s investments in the respective CLO, have a general unsecured interest in the Carlyle entity that manages the CLO
and generally do not have recourse to any other Carlyle entity. As of September 30, 2025 , $318.3 million of these borrowings
are secured by investments attributable to The Carlyle Group Inc. See Note 6 , Borrowings , to the condensed consolidated
financial statements included in this Quarterly Report on Form 10-Q for more information on our CLO borrowings.
Senior Notes . The Company and c ertain indirect finance subsidiaries of the Company have issued senior notes, on which
interest is payable semi-annually, as discussed below. The senior notes are unsecured and unsubordinated obligations of the
respective subsidiary and are fully and unconditionally guaranteed, jointly and severally, by the Company and each of the
Carlyle Holdings partnerships. The indentures governing each of the senior notes contain customary covenants that, among
other things, limit the issuers’ and the guarantors’ ability, subject to certain exceptions, to incur indebtedness secured by liens
on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets.
The notes also contain customary events of default. All or a portion of the notes may be redeemed at our option, in whole or in
part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the notes.
If a change of control repurchase event occurs, the notes are subject to repurchase at the repurchase price as set forth in the
notes.

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3.500% Senior Notes . In September 2019, Carlyle Finance Subsidiary L.L.C. issued $425.0 million of 3.500% senior
notes due September 19, 2029 at 99.841% of par.
5.050% Senior Notes . In September 2025, the Company issued $800.0 million of 5.050% senior notes due September 19,
2035 at 99.767% of par.
5.625% Senior Notes . In March 2013, Carlyle Holdings II Finance L.L.C. issued $400.0 million of 5.625% senior notes
due March 30, 2043 at 99.583% of par. In March 2014, an additional $200.0 million of these notes were issued at 104.315% of
par and are treated as a single class with the already outstanding $400.0 million aggregate principal amount of these notes.
5.650% Senior Notes . In September 2018, Carlyle Finance L.L.C. issued $350.0 million of 5.650% senior notes due
September 15, 2048 at 99.914% of par.
Subordinated Notes . In May and June 2021, Carlyle Finance L.L.C. issued $500.0 million aggregate principal amount of
4.625% subordinated notes due May 15, 2061. The Subordinated Notes are unsecured and subordinated obligations of the issuer
and are fully and unconditionally guaranteed, jointly and severally, on a subordinated basis, by the Company, each of the
Carlyle Holdings partnerships, and CG Subsidiary Holdings L.L.C., an indirect subsidiary of the Company. The indentures
governing the Subordinated Notes contain customary covenants that, among other things, limit the issuers’ and the guarantors’
ability, subject to certain exceptions, to incur indebtedness ranking on a parity with the Subordinated Notes or indebtedness
ranking junior to the Subordinated Notes secured by liens on voting stock or profit participating equity interests of their
subsidiaries or merge, consolidate or sell, transfer or lease all or substantially all of their assets. The Subordinated Notes also
contain customary events of default. All or a portion of the notes may be redeemed at our option, in whole or in part, at any
time and from time to time on or after June 15, 2026, prior to their stated maturity, at a redemption price equal to their principal
amount plus any accrued and unpaid interest to, but excluding, the date of redemption. If interest due on the Subordinated Notes
is deemed to no longer be deductible in the U.S., a “Tax Redemption Event,” the Subordinated Notes may be redeemed, in
whole, but not in part, within 120 days of the occurrence of such event at a redemption price equal to their principal amount
plus accrued and unpaid interest to, but excluding, the date of redemption. In addition, the Subordinated Notes may be
redeemed, in whole, but not in part, at any time prior to May 15, 2026, within 90 days of the rating agencies determining that
the Subordinated Notes should no longer receive partial equity treatment pursuant to the rating agency’s criteria, a “rating
agency event,” at a redemption price equal to 102% of their principal amount plus any accrued and unpaid interest to, but
excluding, the date of redemption.
Obligations of CLOs . Loans payable of the Consolidated Funds primarily comprise amounts due to holders of debt
securities issued by the CLOs. We are not liable for any loans payable of the CLOs. Loans payable of the CLOs are
collateralized by the assets held by the CLOs and the assets of one CLO may not be used to satisfy the liabilities of another.
This collateral consists of cash and cash equivalents, corporate loans, corporate bonds and other securities.
Realized Performance Allocation Revenues . Another source of liquidity we may use to meet our capital needs is the
realized performance allocation revenues generated by our investment funds. Performance allocations are generally realized
when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return.
For certain funds, performance allocations are realized once all invested capital and expenses have been returned to the fund’s
investors and the fund’s cumulative returns are in excess of the preferred return. Incentive fees earned on our CLO vehicles
generally are paid upon the dissolution of such vehicles.

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

Accrued
Performance
Allocations (1)

Accrued
Giveback
Obligation

Net Accrued
Performance
Revenues

 

(Dollars in millions)

Global Private Equity

$ 4,352.3

$ (19.1)

$ 4,333.2

Global Credit

721.1

(25.5)

695.6

Carlyle AlpInvest

1,882.9

—

1,882.9

Total

$ 6,956.3

$ (44.6)

$ 6,911.7

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

341.2

Less:  Accrued performance allocation-related compensation

(4,660.2)

Plus:  Receivable for giveback obligations from current and former employees

11.5

Less:  Deferred taxes on certain foreign accrued performance allocations

(19.9)

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

(0.4)

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

22.6

Net accrued performance revenues before timing differences

2,606.5

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

23.6

Net accrued performance revenues attributable to The Carlyle Group Inc.

$ 2,630.1

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

Carry Fund Appreciation/(Depreciation) (1)

Net Accrued
Performance
Revenues

Quarter-to-Date

Year-to-Date

Last Twelve
Months

Q3 2024

Q3 2025

Q3 2024

Q3 2025

Q3 2024

Q3 2025

Overall Carry Fund Appreciation/(Depreciation)

3 %

2 %

7 %

5 %

8 %

7 %

Global Private Equity:

4 %

1 %

6 %

4 %

7 %

5 %

$ 1,704.7

Corporate Private Equity

4 %

— %

7 %

3 %

9 %

4 %

1,295.3

Real Estate

2 %

1 %

4 %

3 %

2 %

4 %

95.7

Infrastructure & Natural Resources

2 %

5 %

7 %

12 %

6 %

12 %

313.7

Global Credit Carry Funds

3 %

4 %

9 %

12 %

14 %

16 %

265.9

Carlyle AlpInvest Carry Funds

2 %

2 %

6 %

5 %

8 %

8 %

659.5

Net Accrued Performance Revenues

$ 2,630.1