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10-Q – 2026-05-08 – cg-20260331.htm

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Transfers out (2)

—

—

—

—

( 50.4 )

( 50.4 )

Purchases

253.2

56.4

2,225.3

1.1

37.8

2,573.8

Sales and distributions

( 9.0 )

( 72.6 )

( 943.9 )

( 36.2 )

( 11.2 )

( 1,072.9 )

Settlements

—

—

( 358.9 )

—

—

( 358.9 )

Realized and unrealized gains (losses), net

Included in earnings

5.5

4.5

( 10.9 )

12.0

2.4

13.5

Included in other comprehensive income

—

18.4

121.7

8.7

—

148.8

Balance, end of period

$ 821.7

$ 495.8

$ 7,632.6

$ 365.5

$ 63.7

$ 9,379.3

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

$ 4.8

$ 4.2

$ 0.6

$ 10.2

$ 5.1

$ 24.9

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

$ —

$ 15.5

$ 109.4

$ 9.7

$ —

$ 134.6

(1) As a result of the initial consolidation of one fund during the three months ended March 31, 2025 .
(2) Represents the exchange of the BDC Preferred Shares, which were valued using Level III inputs, for common shares of CGBD, which
were valued using Level I inputs. See Note 9, Related Party Transactions , to our Annual Report on Form 10-K for the year ended
December 31, 2025 for more information.
 

26

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

Financial Liabilities

Loans Payable of Consolidated Funds

 

Three Months Ended March 31,

 

2026

2025

Balance, beginning of period

$ 9,423.1

$ 6,809.1

Initial consolidation of funds (1)

388.4

193.8

Borrowings

1,647.1

782.1

Paydowns

( 486.9 )

( 242.1 )

Sales

( 569.4 )

( 6.5 )

Realized and unrealized (gains) losses, net

Included in earnings

( 184.2 )

1.2

Included in other comprehensive income

( 61.4 )

142.7

Balance, end of period

$ 10,156.7

$ 7,680.3

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

$ ( 166.4 )

$ 10.0

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

$ ( 68.5 )

$ 133.5

(1) As a result of the initial consolidation of two funds during the three months ended March 31, 2026 , and the initial
consolidation of one fund during the three months ended March 31, 2025 .
Realized and unrealized gains and losses included in earnings for Level III investments for investments in CLOs and
other investments are included in investment income (loss), and such gains and losses for investments of Consolidated Funds
and loans payable of the Consolidated Funds are included in Net investment income of Consolidated Funds in the condensed
consolidated statements of operations.
Gains and losses included in other comprehensive income for all Level III financial asset and liabilities are included in
accumulated other comprehensive loss and non-controlling interests in consolidated entities.
The following table summarizes quantitative information about the Company’s Level III inputs as of March 31, 2026 :

27

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

Fair Value at

Valuation Technique(s)

Unobservable Input(s)

Range
(Weighted Average)

Impact to
Valuation
from Increase
in Input

(Dollars in millions)

March 31, 2026

Assets

Investments of Consolidated
Funds:

Equity securities

$ 2.9

Consensus Pricing

Indicative Quotes ($ per share)

0.00 - 547.56 ( 0.40 )

Higher

499.9

Discounted Cash Flow

Discount Rates

6 % - 18 % ( 11 % )

Lower

Terminal Growth Rate

2 % - 11 % ( 3 % )

Higher

Comparable Multiple

EBITDA Multiple

1.5 x - 22.0 x ( 11.4 x )

Higher

Revenue Multiple

2.7 x - 9.0 x ( 6.4 x )

Higher

231.0

Discounted Cash Flow

Discount Rates

7 % - 27 % ( 14 % )

Lower

Constant Prepayment Rate

6 % - 16 % ( 8 % )

Lower

Constant Default Rate

0 % - 6 % ( 1 % )

Lower

Recovery Rate

20 % - 40 % ( 31 % )

Higher

141.7

Other (1)

N/A

N/A

N/A

Bonds

756.2

Consensus Pricing

Indicative Quotes (% of Par)

70 - 102 ( 96 )

Higher

Loans

9,945.4

Consensus Pricing

Indicative Quotes (% of Par)

0 - 101 ( 96 )

Higher

267.6

Discounted Cash Flow

Discount Rates

0 % - 18 % ( 10 % )

Lower

Constant Prepayment Rate

11 % - 11 % ( 11 % )

Lower

Constant Default Rate

2 % - 4 % ( 2 % )

Lower

Severity

75 % - 75 % ( 75 % )

Higher

1.7

Other (1)

N/A

N/A

N/A

11,846.4

Investments in CLOs:

Senior secured notes

275.4

Consensus Pricing with
Discounted Cash Flow

Indicative Quotes (% of Par)

83 - 101 ( 100 )

Higher

Discount Margins (Basis
Points)

90 - 1,300 ( 209 )

Lower

Default Rates

2 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Subordinated notes and
preferred shares

34.5

Consensus Pricing with
Discounted Cash Flow

Indicative Quotes (% of Par)

1 - 82 ( 30 )

Higher

Discount Rates

8 % - 22 % ( 13 % )

Lower

Default Rates

1 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Other investments:

Aviation subordinated
notes

6.9

Discounted Cash Flow

Discount Rates

21 % - 21 % ( 21 % )

Lower

Loans

83.7

Consensus Pricing with
Discounted Cash Flow

Indicative Quotes (% of Par)

100 - 100 ( 100 )

Higher

Discount Rates

1 % - 21 % ( 9 % )

Lower

0.4

Other (1)

N/A

N/A

N/A

Total

$ 12,247.3

Liabilities

Loans payable of Consolidated
 Funds:

Senior secured notes

$ 9,820.3

Other (2)

N/A

N/A

N/A

Subordinated notes and
preferred shares

336.4

Consensus Pricing with
Discounted Cash Flow

Indicative Quotes (% of Par)

3 - 84 ( 61 )

Higher

Discount Rates

9 % - 16 % ( 12 % )

Lower

Default Rates

1 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Total

$ 10,156.7

28

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

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

29

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

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

Fair Value at

Valuation Technique(s)

Unobservable Input(s)

Range
(Weighted Average)

Impact to
Valuation
from
Increase in
Input

(Dollars in millions)

December 31, 2025

Assets

Investments of Consolidated
Funds:

Equity securities

$ 1.4

Consensus Pricing

Indicative Quotes ($ per share)

0.00 - 20.38 ( 0.19 )

Higher

789.2

Discounted Cash Flow

Discount Rates

7 % - 19 % ( 11 % )

Lower

Terminal Growth Rate

1 % - 11 % ( 4 % )

Higher

Comparable Multiple

EBITDA Multiple

1.5 x - 23.8 x ( 12.0 x )

Higher

Revenue Multiple

2.8 x - 2.8 x ( 2.8 x )

Higher

TCF Multiple

22.3 x - 22.3 x ( 22.3 x )

Higher

112.3

Discounted Cash Flow

Discount Rates

7 % - 20 % ( 12 % )

Lower

Constant Prepayment Rate

6 % - 16 % ( 9 % )

Lower

Constant Default Rate

0 % - 6 % ( 1 % )

Lower

Recovery Rate

0 % - 40 % ( 21 % )

Higher

191.9

Other (1)

N/A

N/A

N/A

Bonds

691.2

Consensus Pricing

Indicative Quotes (% of Par)

12 - 106 ( 96 )

Higher

Loans

9,028.5

Consensus Pricing

Indicative Quotes (% of Par)

0 - 101 ( 98 )

Higher

216.0

Discounted Cash Flow

Discount Rates

6 % - 16 % ( 9 % )

Lower

3.5

Discounted Cash Flow

Discount Rates

14 % - 14 % ( 14 % )

Lower

Constant Prepayment Rate

8 % - 14 % ( 11 % )

Lower

Constant Default Rate

2 % - 2 % ( 2 % )

Lower

Other

1.8

Other (1)

N/A

N/A

N/A

11,035.8

Investments in CLOs

Senior secured notes

303.3

Discounted Cash Flow
with Consensus Pricing

Indicative Quotes (% of Par)

92 - 101 ( 100 )

Higher

Discount Margins (Basis
Points)

80 - 1,060 ( 204 )

Lower

Default Rates

2 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Subordinated notes and
preferred shares

45.7

Discounted Cash Flow
with Consensus Pricing

Indicative Quotes (% of Par)

0 - 87 ( 38 )

Higher

Discount Rate

0 % - 31 % ( 10 % )

Lower

Default Rates

1 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Other investments:

Aviation subordinated
notes

7.5

Discounted Cash Flow

Discount Rates

21 % - 21 % ( 21 % )

Lower

Loans

37.6

Discounted Cash Flow

Discount Rates

6 % - 10 % ( 9 % )

Lower

Consensus Pricing

Indicative Quotes (% of Par)

100 - 100 ( 100 )

Higher

49.5

Other (1)

N/A

N/A

N/A

Total

$ 11,479.4

Liabilities

Loans payable of Consolidated
Funds:

Senior secured notes

$ 9,032.2

Other (2)

N/A

N/A

N/A

Subordinated notes and
preferred shares

390.9

Discounted Cash Flow
with Consensus Pricing

Indicative Quotes (% of Par)

10 - 84 ( 51 )

Higher

Discount Rates

5 % - 24 % ( 9 % )

Lower

Default Rates

1 % - 2 % ( 2 % )

Lower

Recovery Rates

60 % - 60 % ( 60 % )

Higher

Total

$ 9,423.1

30

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

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

4. Investments
In vestments consist of the following:  

 

As of

 

March 31,
2026

December 31,
2025

 

(Dollars in millions)

Accrued performance allocations

$ 6,865.4

$ 7,620.3

Principal equity method investments, excluding performance allocations

2,982.3

2,879.5

Principal investments in CLOs

309.9

349.0

Other investments

307.7

303.9

Total

$ 10,465.3

$ 11,152.7

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

 

As of

 

March 31,
2026

December 31,
2025

 

(Dollars in millions)

Global Private Equity

$ 4,324.3

$ 5,021.1

Global Credit

740.2

724.6

Carlyle AlpInvest

1,800.9

1,874.6

Total

$ 6,865.4

$ 7,620.3

Approximately 16 % and 24 % of accrued performance allocations at March 31, 2026 and December 31, 2025 ,
respectively, were related to Carlyle Partners VII, L.P., one of the Company’s Global Private Equity funds.
Accrued performance allocations are shown gross of the Company’s accrued performance allocations and incentive fee
related compensation (see Note 6 , Accrued Compensation and Benefits ), and accrued giveback obligations, which are
separately presented in the condensed consolidated balance sheets. The components of the accrued giveback obligations are as
follows:

 

As of

 

March 31,
2026

December 31,
2025

 

(Dollars in millions)

Global Private Equity

$ ( 76.5 )

$ ( 47.3 )

Global Credit

( 25.5 )

( 25.5 )

Total

$ ( 102.0 )

$ ( 72.8 )

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

31

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

 

As of

 

March 31,
2026

December 31,
2025

 

(Dollars in millions)

Global Private Equity (1)

$ 1,434.7

$ 1,384.4

Global Credit (2)

1,120.3

1,151.9

Carlyle AlpInvest

427.3

343.2

Total

$ 2,982.3

$ 2,879.5

(1) The balance includes $ 652.4  million and $ 616.0  million as of March 31, 2026 and December 31, 2025 , respectively, related to the
Company’s equity method investments in NGP.
(2) The balance includes $ 729.2  million and $ 722.4  million as of March 31, 2026 and December 31, 2025 , respectively, related to the
Company’s investment in Fortitude.
Investment in Fortitude
Carlyle FRL, L.P. (“Carlyle FRL”), a Carlyle-affiliated investment fund, holds a 38.5 % interest in Fortitude Holdings to
FGH Parent, L.P. (“FGH Parent” or “Fortitude”), an insurance and reinsurance company. The Company indirectly owns 10.5 %
of Fortitude, and Carlyle FRL and other strategic third-party investors collectively hold a 97.5 % interest in Fortitude. As of
March 31, 2026 , the carrying value of the Company’s investment in Carlyle FRL, which is an investment company that
accounts for its investment in Fortitude at fair value, was $ 729.2  million , relative to equity invested of $ 666.8  million .
The Company has an asset management relationship with Fortitude pursuant to which Fortitude committed to allocate
assets in asset management strategies and vehicles of the Company and its affiliates. As of March 31, 2026 , Fortitude, its
affiliates and certain Fortitude reinsurance counterparties have committed approximately $ 25.2  billion of capital to-date to
various Carlyle strategies. The Company has a strategic advisory services agreement in place with certain subsidiaries of
Fortitude through Carlyle Insurance Solutions Management L.L.C. (“CISM”), an investment adviser. Under the agreement,
CISM provides Fortitude with certain services, including business development and growth, transaction origination and
execution, and capital management services in exchange for a recurring management fee based on Fortitude’s general account
assets, which adjusts within an agreed range based on Fortitude’s overall profitabili ty.
Investment in NGP
The Company has equity interests in NGP Management Company, L.L.C. (“NGP Management”), the general partners of
certain carry funds advised by NGP, and principal investments in certain NGP funds as described below. These investments are
included in the Global Private Equity segment. NGP Management serves as the investment advisor to the NGP Energy Funds.
The Company does not control NGP and accounts for its investments in NGP under the equity method of accounting.
The Company’s investments in NGP as of March 31, 2026 and December 31, 2025 are as follows:

As of

March 31,
2026

December 31,
2025

(Dollars in millions)

Investment in NGP Management

$ 238.7

$ 247.4

Investments in NGP general partners - accrued performance allocations

368.0

326.2

Principal investments in NGP funds

45.7

42.4

Total investments in NGP

$ 652.4

$ 616.0

See Note 4, Investments, to our Annual Report on Form 10-K for the year ended December 31, 2025 for additional
information regarding the restructuring of the terms of the Company’s strategic investment in NGP (the “Restructuring”). As a
result of the Restructuring, the three months ended March 31, 2025 included a $ 92.5  million impairment of the Company’s
investment in NGP Management and a $ 38  million reduction in accrued performance allocations, which were recorded in
Principal investment income (loss) in the condensed consolidated statements of operations and excluded from Distributable

32

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

Earnings, as defined in Note 14 , Segment Reporting . The Company amortizes basis differences established in connection with
the Restructuring as a reduction to Principal investment income over their estimated useful lives.
Investment in NGP Management . The Company’s equity interests in NGP Management entitle the Company to an
allocation of income equal to 55.0 % of the management fee related revenues earned by existing funds prior to the Restructuring
that held an initial closing after December 31, 2024, and up to 55.0 % of management fee related revenues on future NGP funds
subsequent to the Restructuring in the aggregate, which are based on a sliding scale, including all management fees being
retained by NGP for the years 2025 through 2028 on such future NGP funds. The Company records investment income (loss)
for its equity income allocation from NGP management fee related revenues and also records its share of any allocated expenses
from NGP Management, as well as expenses associated with the compensatory elements of the investment, and any impairment
charges. The net investment income (loss) recognized in the Company’s condensed consolidated statements of operations for
the three months ended March 31, 2026 and 2025 were as follows:

 

Three Months Ended
March 31,

 

2026

2025

 

(Dollars in millions)

Management fee related revenues from NGP Management

$ 14.1

$ 16.1

Expenses related to the investment in NGP Management

( 2.9 )

( 3.6 )

Amortization of basis differences and impairment of investment in NGP
Management

( 8.8 )

( 92.5 )

Net investment income (loss) from NGP Management

$ 2.4

$ ( 80.0 )

Management fee related revenues from NGP Management were primarily driven by NGP XII, NGP XIII, and NGP XI
during the three months ended March 31, 2026 and 2025 . These funds calculate management fees as 1.5 % of the limited
partners’ commitments less any return of capital or write-offs during the investment period. Following the investment period,
the basis on which fund management fees are generally calculated is further reduced by a reserve for future management fees
and operating costs.
Investment in the General Partners of NGP Carry Funds . The Company’s investment in the general partners of the NGP
Carry Funds entitle it to up to 47.5 % of performance allocations received by NGP Fund general partners. The Company records
its equity income allocation from NGP performance allocations in principal investment income (loss) from equity method
investments rather than performance allocations in its condensed consolidated statements of operations. The Company
recognized net investment earnings (losses) related to these performance allocations of $ 46.5  million and $( 28.5 ) million for the
three months ended March 31, 2026 and 2025 , respectively, in its condensed consolidated statements of operatio ns .
Principal Investments in NGP Funds . The Company also holds principal investments in the NGP Carry Funds. The
Company recognized net investment earnings (losses) related to principal investment income (loss) in its condensed
consolidated statements of operations of $ 6.4 million and $ 1.3 million for the three months ended March 31, 2026 and 2025 ,
respectively.
Principal Investments in CLOs and Other Investments
Principal investments in CLOs as of March 31, 2026 and December 31, 2025 were $ 309.9 million and $ 349.0 million ,
respectively, and consisted of investments in CLO senior and subordinated notes. A portion of the Company’s principal
investments in CLOs is collateral to CLO term loans (see Note 5 , Borrowings ). As of March 31, 2026 and December 31, 2025 ,
other investments included the Company’s investment in common shares of CGBD at fair value of $ 34.1  million and
$ 37.5  million , respectively.

33

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

Investment Income (Loss)
The components of investment income (loss) are as follows:

 

Three Months Ended
March 31,

 

2026

2025

 

(Dollars in millions)

Performance allocations

Realized

$ 50.4

$ 332.9

Unrealized

( 731.5 )

( 110.0 )

( 681.1 )

222.9

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

Realized

22.7

( 29.4 )

Unrealized

53.6

( 33.3 )

76.3

( 62.7 )

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

Realized

3.6

( 2.0 )

Unrealized

( 15.5 )

1.6

( 11.9 )

( 0.4 )

Total

$ ( 616.7 )

$ 159.8

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

 

Three Months Ended
March 31,

 

2026

2025

 

(Dollars in millions)

Global Private Equity

$ ( 698.1 )

$ 85.0

Global Credit

36.7

79.0

Carlyle AlpInvest

( 19.7 )

58.9

Total

$ ( 681.1 )

$ 222.9

The following tables summarize the funds that are the primary drivers of performance allocations for the three months
ended March 31, 2026 and 2025 , as well as the total revenue recognized, including performance allocations as well as fund
management fees and principal investment income:

Three Months Ended March 31, 2026

(Dollars in millions)

Global Private Equity

Carlyle Partners VII, L.P.

$ ( 723.1 )

Three Months Ended March 31, 2025

(Dollars in millions)

Global Private Equity

Carlyle Partners VII, L.P.

$ 234.1

Global Private Equity

Carlyle Asia Partners V, L.P.

( 227.8 )

34

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

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

 

Three Months Ended
March 31,

 

2026

2025

 

(Dollars in millions)

Global Private Equity

$ 54.1

$ ( 95.6 )

Global Credit

11.9

19.2

Carlyle AlpInvest

10.3

13.7

Total

$ 76.3

$ ( 62.7 )

Investments of Consolidated Funds
The Company consolidates the financial positions and results of operations of certain CLOs in which it is the primary
beneficiary. During the three months ended March 31, 2026 , the Company became the primary beneficiary of two additional
CLOs. Investments in Consolidated Funds as of March 31, 2026 and December 31, 2025 also included $ 726.4  million and
$ 989.4  million , respectively, related to investments that have been bridged by the Company to investment funds in the Global
Private Equity and Carlyle AlpInvest segments that are accounted for as consolidated VIEs.
There were no individual investments with a fair value greater than five percent of the Company’s total assets for any
period presented.
Interest and Other Income of Consolidated Funds
The components of interest and other income of Consolidated Funds are as follows:

 

Three Months Ended
March 31,

 

2026

2025

 

(Dollars in millions)

Interest income from investments

$ 161.8

$ 123.0

Other income

17.9

10.4

Total

$ 179.7

$ 133.4

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

 

Three Months Ended
March 31,

 

2026

2025

 

(Dollars in millions)

Gains (losses) from investments of Consolidated Funds

$ ( 248.6 )

$ 7.0

Gains (losses) from liabilities of consolidated CLOs

184.2

( 0.9 )

Total

$ ( 64.4 )

$ 6.1

35

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

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

 

Three Months Ended
March 31,

 

2026

2025

 

(Dollars in millions)

Net realized gains (losses)

$ 0.4

$ ( 0.4 )

Net change in unrealized gains (losses)

( 249.0 )

7.4

Total

$ ( 248.6 )

$ 7.0

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

 

March 31, 2026

December 31, 2025

 

Borrowing
Outstanding

Carrying
Value

Borrowing
Outstanding

Carrying
Value

(Dollars in millions)

CLO Borrowings   (See below)

$ 358.7

$ 353.5

$ 350.1

$ 349.4

3.500 % Senior Notes Due 9/19/2029

425.0

423.5

425.0

423.4

5.050 % Senior Notes Due 9/19/2035

800.0

791.3

800.0

791.1

5.625 % Senior Notes Due 3/30/2043

600.0

600.5

600.0

600.5

5.650 % Senior Notes Due 9/15/2048

350.0

346.8

350.0

346.7

4.625 % Subordinated Notes Due 5/15/2061

500.0

486.0

500.0

485.9

Total debt obligations

$ 3,033.7

$ 3,001.6

$ 3,025.1

$ 2,997.0

Senior Credit Facility
As of March 31, 2026 , the senior credit facility included $ 1.0  billion in a revolving credit facility, which was amended in
May 2025 to extend the maturity date from April 29, 2027 to May 29, 2030 . The Company’s borrowing capacity is subject to
the ability of the financial institutions in the banking syndicate to fulfill their respective obligations under the revolving credit
facility. Principal amounts outstanding under the revolving credit facility accrue interest, at the option of the borrowers, either
(a) at an alternate base rate plus an applicable margin not to exceed 0.50 % per annum, or (b) at SOFR (or similar benchmark
rate for non-U.S. dollar borrowings) plus a 0.10 % adjustment and an applicable margin not to exceed 1.50 % per annum (at
March 31, 2026 , the interest rate was 4.76 % ). The Company made no borrowings under the revolving credit facility during the
three months ended March 31, 2026 and 2025 , and there was no amount outstanding as of March 31, 2026 .
Global Credit Revolving Credit Facility
Certain subsidiaries of the Company are parties to a revolving line of credit, primarily intended to support certain lending
activities within the Global Credit segment. As currently amended, the Global Credit Revolving Credit Facility provides for a
revolving line of credit with a capacity of $ 300  million , which matures in September 2027 , and a second revolving line of credit
with a capacity of $ 200  million , which was amended in August 2025 to extend the maturity date to August 19, 2026 . The
Company’s borrowing capacity is subject to the ability of the financial institutions in the banking syndicate to fulfill their
respective obligations under the Global Credit Revolving Credit Facility. Principal amounts outstanding accrue interest at
applicable SOFR or Eurocurrency rates plus an applicable margin of 2.00 % or an alternate base rate plus an applicable margin
of 1.00 % . During the three months ended March 31, 2026 and 2025 , the Company made no borrowings under the Global Credit
Revolving Credit Facility . As of March 31, 2026 , there was no borrowing outstanding under the Global Credit Revolving Credit
Facility.

36

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

CLO Borrowings
For certain of the Company’s CLOs, the Company finances a portion of its investment in the CLOs through the proceeds
received from term loans and other financing arrangements with financial institutions. The following table provides information
regarding outstanding CLO borrowings as of March 31, 2026 and December 31, 2025 (Dollars in millions) :

 

As of March 31, 2026

As of December 31, 2025

 

Borrowing
Outstanding

Weighted
Average
Interest Rate

Weighted
Average
Remaining
Maturity in
Years

Borrowing
Outstanding

Weighted
Average
Interest Rate

Weighted
Average
Remaining
Maturity in
Years

Total CLO borrowings

$ 358.7

4.57 %

10.02

$ 350.1

4.50 %

9.86

The CLO term loans are secured by the Company’s investments in the respective CLO, have a general unsecured interest
in the Carlyle entity that manages the CLO, and generally do not have recourse to any other Carlyle entity. Interest expense for
the three months ended March 31, 2026 and 2025 was $ 4.2 million and $ 3.8 million , respectively. The fair value of the
outstanding balance of the CLO term loans at March 31, 2026 approximated par value based on current market rates for similar
debt instruments. These CLO term loans are classified as Level III within the fair value hierarchy.
CLO Repurchase Agreements
The Company is party to two master credit facility agreements (the “CLO Financing Facilities”) to finance a portion of
the risk retention investments in certain European CLOs managed by the Company. Each transaction entered into under the
CLO Financing Facilities will bear interest at a rate based on the weighted average effective interest rate of each class of
securities that have been sold plus a spread to be agreed upon by the parties. As of March 31, 2026 , € 292.2 million
( $ 337.2  million ) was outstanding under the CLO Financing Facilities. Additional borrowings may be made on terms agreed
upon by the Company and the counterparty subject to the terms and conditions of the CLO Financing Facilities.
Each transaction entered into under the CLO Financing Facilities provides for payment netting and, in the case of a
default or similar event with respect to the counterparty to the CLO Financing Facilities, provides for netting across
transactions. Generally, upon a counterparty default, the Company can terminate all transactions under the CLO Financing
Facilities and offset amounts it owes in respect of any one transaction against collateral, if any, or other amounts it has received
in respect of any other transactions under the CLO Financing Facilities; provided, however, that in the case of certain defaults,
the Company may only be able to terminate and offset solely with respect to the transaction affected by the default. During the
term of a transaction entered into under the CLO Financing Facilities, the Company will deliver cash or additional securities
acceptable to the counterparty if the securities sold are in default. Upon termination of a transaction, the Company will
repurchase the previously sold securities from the counterparty at a previously determined repurchase price. The CLO
Financing Facilities may be terminated at any time upon certain defaults or circumstances agreed upon by the parties.
The Repurchase Agreements may result in credit exposure in the event the counterparty to the transaction is unable to
fulfill its contractual obligations. The Company minimizes the credit risk associated with these activities by monitoring
counterparty credit exposure and collateral values. Other than margin requirements, the Company is not subject to additional
terms or contingencies which would expose the Company to additional obligations based upon the performance of the securities
pledged as collateral.
Senior Notes
The Company and certain indirect subsidiaries of the Company have issued long term borrowings in the form of senior
notes, on which interest is payable semi-annually in arrears. The following table provides information regarding these senior
notes (Dollars in millions):

37

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

Interest Expense

Fair Value (1)
As of

Three Months Ended
March 31,

Aggregate
Principal
Amount

March 31,
2026

December
31, 2025

2026

2025

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

$ 425.0

$ 410.3

$ 417.8

$ 3.8

$ 3.8

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

800.0

774.2

800.9

10.3

—

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

600.0

574.1

600.7

8.4

8.4

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

350.0

330.4

347.5

5.0

5.0

$ 27.5

$ 17.2

(1) Including accrued interest. Fair value is based on indicative quotes and the notes are classified as Level II within the fair
value hierarchy.
(2) Issued in September 2019 at 99.841 % of par.
(3) Issued in September 2025 at 99.767 % of par.
(4) Issued $ 400.0 million in aggregate principal at 99.583 % of par in March 2013. An additional $ 200.0 million in aggregate
principal was issued at 104.315 % of par in March 2014, and is treated as a single class with the outstanding $ 400.0 million
in senior notes previously issued.
(5) Issued in September 2018 at 99.914 % of par.
The issuers may redeem the senior notes, in whole at any time or in part from time to time, at a price equal to the greater
of (i) 100 % of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining
scheduled payments of principal and interest on any notes being redeemed (less interest accrued to the date of redemption)
discounted to the redemption date on a semiannual basis at the Treasury Rate plus 40 basis points ( 30 basis points in the case of
the 3.500 % senior notes and 20 basis points in the case of the 5.050 % senior notes), plus in each case accrued and unpaid
interest on the principal amounts being redeemed.
Subordinated Notes
In May 2021, an indirect subsidiary of the Company issued $ 435.0  million aggregate principal amount of 4.625 %
Subordinated Notes due May 15, 2061 (the “Subordinated Notes”), on which interest is payable quarterly accruing from May
11, 2021. In June 2021, an additional $ 65.0  million aggregate principal amount of these Subordinated Notes were issued and
are treated as a single series with the already outstanding $ 435.0  million aggregate principal amount. The Subordinated Notes
are unsecured and subordinated obligations of the issuer, and are fully and unconditionally guaranteed (the “Guarantees”),
jointly and severally, on a subordinated basis, by the Company, each of the Carlyle Holdings partnerships, and CG Subsidiary
Holdings L.L.C., an indirect subsidiary of the Company (collectively, the “Guarantors”). The Consolidated Funds are not
guarantors, and as such, the assets of the Consolidated Funds are not available to service the Subordinated Notes under the
Guarantee. The Subordinated Notes may be redeemed at the issuer’s option, in whole or in part, at any time and from time to
time on or after June 15, 2026, prior to their stated maturity, at a redemption price equal to their principal amount plus any
accrued and unpaid interest to, but excluding, the date of redemption. If interest due on the Subordinated Notes is deemed to no
longer be deductible in the U.S., a “Tax Redemption Event,” the Subordinated Notes may be redeemed, in whole, but not in
part, within 120 days of the occurrence of such event at a redemption price equal to their principal amount plus accrued and
unpaid interest to, but excluding, the date of redemption. In addition, the Subordinated Notes may be redeemed, in whole, but
not in part, at any time prior to May 15, 2026, within 90 days of the rating agencies determining that the Subordinated Notes
should no longer receive partial equity treatment pursuant to the rating agency’s criteria, a “rating agency event,” at a
redemption price equal to 102 % of their principal amount plus any accrued and unpaid interest to, but excluding, the date of
redemption.
As of March 31, 2026 and December 31, 2025 , the fair value of the Subordinated Notes was $ 350.0  million and
$ 342.0  million , respectively. Fair value is based on active market quotes and the notes are classified as Level I within the fair
value hierarchy. For both the three months ended March 31, 2026 and 2025 , the Company incurred $ 5.9 million of interest
expense on the Subordinated Notes.

38

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

Debt Covenants
The Company is subject to various financial covenants under its loan agreements including, among other items,
maintenance of a minimum amount of management fee-earning assets. The Company is also subject to various non-financial
covenants under its loan agreements and the indentures governing its senior notes. The Company was in compliance with all
financial and non-financial covenants under its various loan agreements as of March 31, 2026 .

Loans Payable of Consolidated Funds
Loans payable of Consolidated Funds primarily represent amounts due to holders of debt securities issued by the CLOs.
As of March 31, 2026 and December 31, 2025 , the following borrowings were outstanding (Dollars in millions):

 

As of March 31, 2026

 

Borrowing
Outstanding

Fair Value

Weighted
Average
Interest Rate

 

Weighted
Average
Remaining
Maturity in
Years

Senior secured notes (1)

$ 10,875.4

$ 10,761.3

5.01 %

11.21

Subordinated notes

381.8

336.4

N/A

(3)

10.08

Revolving credit facilities (2)

51.0

51.0

6.77 %

3.28

Total

$ 11,308.2

$ 11,148.7

 

 

As of December 31, 2025

 

Borrowing
Outstanding

Fair Value

Weighted
Average
Interest Rate

 

Weighted
Average
Remaining
Maturity in
Years

Senior secured notes (1)

$ 9,994.8

$ 9,972.1

5.09 %

11.18

Subordinated notes

509.6

390.9

N/A

(3)

9.65

Revolving credit facilities (2)

63.0

63.0

6.68 %

3.45

Total

$ 10,567.4

$ 10,426.0

(1) Borrowing Outstanding as of March 31, 2026 and December 31, 2025 included $ 940.9  million and $ 939.9  million , respectively, of
senior secured notes that are measured at amortized cost, which approximate fair value. These senior secured notes were classified as
Level III within the fair value hierarchy.
(2) Fair Value as of March 31, 2026 and December 31, 2025 reflects the amortized cost of outstanding revolving credit balances which
approximates fair value.
(3) The subordinated notes do not have contractual interest rates, but instead receive distributions from the excess cash flows of the
CLOs.
Loans payable of the CLOs are collateralized by the assets held by the CLOs and the assets of one CLO may not be used
to satisfy the liabilities of another. This collateral consisted of cash and cash equivalents, corporate loans, corporate bonds and
other securities. As of March 31, 2026 and December 31, 2025 , the fair value of the CLO assets was $ 12.0 billion and $ 11.0
billion , respectively.

39

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

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

 

As of

 

March 31,
2026

December 31,
2025

 

(Dollars in millions)

Accrued performance allocations and incentive fee related compensation

$ 4,646.0

$ 5,111.8

Accrued bonuses

65.7

294.5

Realized performance allocations and incentive fee related compensation not yet paid

73.2

315.1

Other

126.9

128.0

Total

$ 4,911.8

$ 5,849.4

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

 

Three Months Ended March 31,

 

2026

2025

 

(Dollars in millions)

Realized

$ 58.2

$ 252.9

Unrealized

( 426.1 )

( 81.5 )

Total

$ ( 367.9 )

$ 171.4

7. Commitments and Contingencies

Capital Commitments
The Company and its unconsolidated affiliates have unfunded commitments totaling $ 3.9 billion as of March 31, 2026 , of
which approximately $ 3.1 billion is subscribed individually by senior Carlyle professionals, advisors and other professionals. In
addition to these unfunded commitments, the Company may from time to time exercise its right to purchase additional interests
in its investment funds that become available in the ordinary course of their operations.
Under the Carlyle Global Capital Markets platform, certain subsidiaries of the Company may act as an underwriter,
syndicator or placement agent for security offerings and loan originations. The Company earns fees in connection with these
activities and bears the risk of the sale of such securities and placement of such loans, which may be longer dated. As of
March 31, 2026 , the Company had no material commitments related to the origination and syndication of loans and securities
under the Carlyle Global Capital Markets platform.

Guaranteed Loans 
From time to time, the Company or its subsidiaries may enter into agreements to guarantee certain obligations of the
investment funds related to, for example, credit facilities or equity commitments. Certain consolidated subsidiaries of the
Company are the guarantors of revolving credit facilities for certain funds in the Carlyle AlpInvest segment. The guarantee is
limited to the lesser of the total amount drawn under the credit facilities or the total of net asset value of the guarantor
subsidiaries plus any uncalled capital of the applicable general partner. The outstanding balances are secured by uncalled capital
commitments from the underlying funds and the Company believes the likelihood of any material funding under this guarantee
to be remote. As of March 31, 2026 , the Company had no material outstanding guarantees under the credit facilities.
On February 25, 2026, the Company entered into an agreement pursuant to which it provided support for a credit facility
of a certain fund in the Global Credit segment. The maximum aggregate amount that could be funded under this agreement was
approximately $ 120.0  million as of March 31, 2026 . The Company has not funded any amounts under this agreement to date
and believes the likelihood of any material funding to be remote.

40

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

Contingent Obligations
Giveback
A liability for potential repayment of previously received performance allocations of $ 102.0 million at March 31, 2026
was shown as accrued giveback obligations in the condensed consolidated balance sheets, representing the giveback obligation
that would need to be paid if the funds were liquidated at their current fair values at March 31, 2026 . However, the ultimate
giveback obligation, if any, generally is not paid until the end of a fund’s life or earlier if the giveback becomes fixed and early
payment is agreed upon by the fund’s partners (see Note 2 , Summary of Significant Accounting Policies ). The Company had
$ 34.6 million and $ 24.2 million of unbilled receivables from former and current employees and senior Carlyle professionals as
of March 31, 2026 and December 31, 2025 , respectively, related to giveback obligations. Any such receivables are
collateralized by investments made by individual senior Carlyle professionals and employees in Carlyle-sponsored funds. In
addition, $ 153.8 million and $ 151.5  million have been withheld from distributions of carried interest to senior Carlyle
professionals and employees for potential giveback obligations as of March 31, 2026 and December 31, 2025 , respectively.
Such amounts are held on behalf of the respective current and former Carlyle employees to satisfy any givebacks they may owe
and are held by entities not included in the accompanying condensed consolidated balance sheets. Current and former senior
Carlyle professionals and employees are personally responsible for their giveback obligations. As of March 31, 2026 ,
approximately $ 40.8 million of the Company’s accrued giveback obligation is the responsibility of various current and former
senior Carlyle professionals and other former limited partners of the Carlyle Holdings partnerships, and the net accrued
giveback obligation attributable to the Company is $ 61.2 million .
If, at March 31, 2026 , all of the investments held by the Company’s Funds were deemed worthless, a possibility that
management views as remote, the amount of realized and distributed carried interest subject to potential giveback would be
$ 1.5 billion , on an after-tax basis where applicable, of which approximately $ 0.5 billion would be the responsibility of current
and former senior Carlyle professionals.
Other
In April 2026 , in connection with an investment fund that is actively fundraising in the Global Private Equity segment,
the Company entered into an arrangement with a third-party pursuant to which the third-party has agreed to subscribe for a
$ 500.0  million commitment in the investment fund (the “Warehoused Interests”) through December 31, 2026. During that
period, the Warehoused Interests are expected to be sold to other investors. Under the terms of this arrangement, the Company
will be required to acquire any unsold Warehoused Interests as of December 31, 2026.
In connection with a consolidated investment fund in the Carlyle AlpInvest segment, the Company entered into an
arrangement with a third-party pursuant to which the Company may be required to make payments up to $ 50.0  million in the
aggregate in the event the fund does not achieve a specified return. As of March 31, 2026 , the Company has concluded that the
likelihood of payment under this arrangement is not probable; therefore, no liability has been recorded.

Legal Matters
In the ordinary course of business, the Company is a party to litigation, investigations, inquiries, employment-related
matters, disputes, and other potential claims. Certain of these matters are described below. The Company is not currently able to
estimate the reasonably possible amount of loss or range of loss, in excess of amounts accrued, for the matters that have not
been resolved. The Company does not believe it is probable that the outcome of any existing litigation, investigations, disputes,
or other potential claims will materially affect the Company or these financial statements in excess of amounts accrued.
The Tax Receivable Agreement Matter
The Company came into existence on January 1, 2020, when its predecessor, The Carlyle Group, L.P. (the “PTP”),
converted from a partnership into a corporation (the “Conversion”). On July 29, 2022, an alleged stockholder of the Company,
the City of Pittsburgh Comprehensive Municipal Trust Fund (the “original Plaintiff”), filed suit in the Delaware Court of
Chancery, alleging a direct claim against the Company for breach of its certificate of incorporation and a derivative claim on
behalf of the Company against certain current and former officers and directors of the Company. As the original Plaintiff did
not actually own shares on the date of the Conversion, it stipulated to the dismissal of the derivative claims in October of 2025

41

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

and the Court has allowed Charles Blackburn (together with the original Plaintiff, “Plaintiffs”) to intervene as a new plaintiff
with respect to the derivative claims. The original Plaintiff continues as a plaintiff with respect to one direct claim.
Plaintiffs challenge the receipt, by certain officers of the PTP and certain directors of the general partner of the PTP, of a
right to cash payments associated with the elimination of a tax receivable agreement in connection with the Conversion.
Plaintiffs are seeking monetary damages, restitution, and an injunction preventing the Company from making any future cash
payments for the elimination of the tax receivable agreement in connection with the Conversion. By virtue of the derivative
nature of the primary claims (i.e., that the claims are aimed primarily at certain officers and directors), it is unlikely that the
Company itself will pay material damage awards based on the derivative claims, although the Company is expected to incur
legal defense fees to the extent not covered by insurance. The Delaware Court issued a ruling on the defendants’ motion to
dismiss on April 24, 2024, dismissing some of the original Plaintiff’s claims but allowing most of the claims to proceed to
discovery and possibly to trial. Plaintiffs filed a consolidated amended complaint on November 17, 2025. Defendants filed a
motion to dismiss the consolidated amended complaint on January 16, 2026. The Company intends to contest the direct claims
vigorously, and the officer and director defendants intend to continue contesting the derivative claims vigorously.
General
The Company currently is and expects to continue to be, from time to time, subject to examinations, formal and informal
inquiries, and investigations by various U.S. and non-U.S. governmental and regulatory agencies, including but not limited to,
the SEC, Department of Justice, state attorneys general, FINRA, National Futures Association, and the U.K. Financial Conduct
Authority. The Company routinely cooperates with such examinations, inquiries and investigations, and they may result in the
commencement of civil, criminal, or administrative or other proceedings against the Company or its personnel.
It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings and employment-
related matters, and some of the matters discussed above involve claims for potentially large and/or indeterminate amounts of
damages. Based on information known by management, management does not believe that as of the date of this filing the final
resolutions of the matters above will have a material effect upon the Company’s condensed consolidated financial statements.
However, given the potentially large and/or indeterminate amounts of damages sought in certain of these matters and the
inherent unpredictability of investigations and litigations, it is possible that an adverse outcome in certain matters could, from
time to time, have a material effect on the Company’s financial results in any particular period.
The Company accrues an estimated loss contingency liability when it is probable that such a liability has been incurred
and the amount of the loss can be reasonably estimated . The Company evaluates its outstanding legal and regulatory
proceedings and other matters each quarter to assess its loss contingency accruals, and makes adjustments in such accruals,
upward or downward, as appropriate, based on management’s best judgment after consultation with counsel. There is no
assurance that the Company’s accruals for loss contingencies will not need to be adjusted in the future or that, in light of the
uncertainties involved in such matters, the ultimate resolution of these matters will not significantly exceed the accruals that the
Company has recorded.
Indemnifications
In the normal course of business, the Company and its subsidiaries enter into contracts that contain a variety of
representations and warranties and provide general indemnifications. The Company’s maximum exposure under these
arrangements is unknown as this would involve future claims that may be made against the Company that have not yet
occurred. However, based on experience, the Company believes the risk of material loss to be remote.
In connection with the sale of the Company’s interest in its local Brazilian management entity in August 2021, the
Company provided a guarantee to the acquiring company of up to BRL 100.0  million ( $ 19.2  million as of March 31, 2026 ) for
liabilities arising from tax-related indemnifications. This guarantee, which will expire in August 2027, would only come into
effect after all alternative remedies have been exhausted. The Company believes the likelihood of any material funding under
this guarantee to be remote.
Risks and Uncertainties
Carlyle’s funds seek investment opportunities that offer the possibility of attaining substantial capital appreciation.
Certain events particular to each industry in which the underlying investees conduct their operations, as well as general

42

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

economic, political, regulatory, and public health conditions, may have a significant negative impact on the Company’s
investments and profitability. The funds managed by the Company may also experience a slowdown in the deployment of
capital, which could adversely affect the Company’s ability to raise capital for new or successor funds and could also impact the
management fees the Company earns on its carry funds and managed accounts, and/or result in the impairment of intangible
assets and/or goodwill the case of the Company’s acquired businesses. Such events are beyond the Company’s control, and the
likelihood that they may occur and the effect on the Company cannot be predicted.
Furthermore, certain of the funds’ investments are made in private companies and there are generally no public markets
for the underlying securities at the current time. The funds’ ability to liquidate their publicly-traded investments are often
subject to limitations, including discounts that may be required to be taken on quoted prices due to the number of shares being
sold. The funds’ ability to liquidate their investments and realize value is subject to significant limitations and uncertainties,
including among others currency fluctuations and natural disasters.
The Company and the funds make investments outside of the United States. Investments outside the United States may be
subject to less developed bankruptcy, corporate, partnership and other laws (which may have the effect of disregarding or
otherwise circumventing the limited liability structures potentially causing the actions or liabilities of one fund or a portfolio
company to adversely impact the Company or an unrelated fund or portfolio company). Non-U.S. investments are subject to the
same risks associated with the Company’s U.S. investments as well as additional risks, such as fluctuations in foreign currency
exchange rates, unexpected changes in regulatory requirements, heightened risk of political and economic instability,
difficulties in managing non-U.S. investments, potentially adverse tax consequences, and the burden of complying with a wide
variety of foreign laws.
Furthermore, Carlyle is exposed to economic risk concentrations related to certain large investments as well as
concentrations of investments in certain industries and geographies.
Additionally, the Company encounters credit risk. Credit risk is the risk of default by a counterparty in the Company’s
investments in debt securities, loans, leases, and derivatives that result from a borrower’s, lessee’s, or derivative counterparty’s
inability or unwillingness to make required or expected payments. The Company is subject to credit risk should a financial
institution be unable to fulfill its obligations.
The Company considers cash, cash equivalents, securities, receivables, principal equity method investments, accounts
payable, accrued expenses, other liabilities, loans, senior notes, assets, and liabilities of Consolidated Funds and contingent and
other consideration for acquisitions to be its financial instruments. Except for the senior notes, subordinated notes, and
compensatory contingent and other consideration for acquisitions, the carrying amounts reported in the condensed consolidated
balance sheets for these financial instruments equal or closely approximate their fair values. The fair value of the senior and
subordinated notes is disclosed in Note 5 , Borrowings .

8. Related Party Transactions
Du e from Affiliates and Other Receivables, Net
The Company had the following due from affiliates and other receivables at March 31, 2026 and December 31, 2025 :  

 

As of

 

March 31,
2026

December 31,
2025

 

(Dollars in millions)

Accrued incentive fees

$ 58.9

$ 53.6

Unbilled receivable for giveback obligations from current and former employees

34.6

24.2

Notes receivable and accrued interest from affiliates

49.5

34.0

Management fee receivable, net

215.2

246.0

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

410.9

477.0

Total

$ 769.1

$ 834.8

43

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

Reimbursable expenses and other receivables from certain of the unconsolidated funds and portfolio companies relate to
advisory fees receivable and expenses paid on behalf of these entities. These costs generally represent costs related to the
pursuit of actual or proposed investments, professional fees, and expenses associated with the acquisition, holding, and
disposition of the investments. The affiliates are obligated at the discretion of the Company to reimburse the expenses. Based
on management’s determination, the Company may accrue and charge interest on amounts due from affiliate accounts at
interest rates ranging up to 7.05 % as of March 31, 2026 . The accrued and charged interest to the affiliates was not significant
for any period presented.
Notes receivable includes loans that the Company has provided to certain unconsolidated funds to meet short-term
obligations to purchase investments. Notes receivable as of March 31, 2026 and December 31, 2025 also include interest-
bearing loans of $ 39.0  million and $ 19.5  million , respectively, to certain eligible Carlyle employees, which excludes Section 16
officers and other members of senior management, to finance their investments in certain Carlyle sponsored funds. These
advances accrue interest at rates which range between 5.05 % and 5.75 % as of March 31, 2026 .
These receivables are assessed regularly for collectability. Management fee receivable amounts determined to be
uncollectible are recorded as a reduction in revenue in the condensed consolidated statements of operations. For all other
receivables, amounts determined to be uncollectible are charged directly to general, administrative and other expenses in the
condensed consolidated statements of operations. A corresponding allowance for doubtful accounts is recorded and such
amounts were not significant for any period presented.
Due to Affiliates
The Company has recorded obligations for amounts due to certain of its affiliates. The Company periodically offsets
expenses it has paid on behalf of its affiliates against these obligations. The Company had the following due to affiliates
balances at March 31, 2026 and December 31, 2025 : 

 

As of

 

March 31,
2026

December 31,
2025

 

(Dollars in millions)

Due to affiliates of Consolidated Funds

$ 7.6

$ 6.1

Due to non-consolidated affiliates

129.1

102.0

Amounts owed under the tax receivable agreement

64.1

71.8

Other

25.6

24.0

Total

$ 226.4

$ 203.9

In connection with the Company’s initial public offering, the Company entered into a tax receivable agreement with the
limited partners of the Carlyle Holdings partnerships whereby certain subsidiaries of the Partnership agreed to pay to the limited
partners of the Carlyle Holdings partnerships involved in any exchange transaction 85 % of the amount of cash tax savings, if
any, in U.S. federal, state and local income tax realized as a result of increases in tax basis resulting from exchanges of Carlyle
Holdings Partnership units for common units of The Carlyle Group L.P.
Other Related Party Transactions
Aircraft Transactions
Entities controlled by our co-founders own aircraft that may be used for the Company’s business in the ordinary course of
its operations. The hourly rates that the Company pays for the use of these aircraft are based on current market rates for
chartering private aircraft of the same type. For the three months ended March 31, 2026 and 2025 , t he Company incurred fees
for the use of these aircraft of $ 0.3 million and $ 0.4 million , respectively. All payments were paid directly to the manager of the
aircraft, and a significant portion of the payments were ultimately paid to or were for the benefit of certain co-found ers .

44

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

Other Transactions
Senior Carlyle professionals and employees are permitted to participate in co-investment entities that invest in Carlyle
funds or alongside Carlyle funds. In many cases, participation is limited by law to individuals who qualify under applicable
legal requirements. These co-investment entities generally do not require senior Carlyle professionals and employees to pay
management fees or performance allocations, however, Carlyle professionals and employees are required to pay their portion of
partnership expenses.
Carried interest income from certain funds can be distributed to senior Carlyle professionals and employees on a current
basis, but is subject to repayment by the subsidiary of the Company that acts as general partner of the fund in the event that
certain specified return thresholds are not ultimately achieved. The senior Carlyle professionals and certain other investment
professionals have personally guaranteed, subject to certain limitations, the obligation of these subsidiaries in respect of this
general partner obligation. Such guarantees are several and not joint and are limited to a particular individual’s distributions
received.
The Company does business with some of its portfolio companies; all such arrangements are on a negotiated basis.
Substantially all revenue is earned from affiliates of Carlyle.  

9. Income Taxes

 

Three Months Ended
March 31,

 

2026

2025

 

(Dollars in millions)

Provision (benefit) for income taxes

$ ( 37.1 )

$ 12.4

Effective tax rate

21 %

7 %

The effective tax rate for the three months ended March 31, 2026 and 2025 primarily comprised the 21% U.S. federal
corporate income tax rate and the tax effects of equity-based compensation deductions, disallowed executive compensation, and
non-controlling interest. For the three months ended March 31, 2026, the effective tax rate included the impact of a one-time tax
expense related to a change in the tax c lassification of a consolidated subsidiary .
As of March 31, 2026 and December 31, 2025 , the Company had federal, state, local and foreign taxes payable of
$ 134.9  million and $ 141.4  million , respectively, which is recorded as a component of accounts payable, accrued expenses and
other liabilities on the accompanying condensed consolidated balance sheets.
In the normal course of business, the Company is subject to examination by federal and certain state, local and foreign tax
regulators. As of March 31, 2026 , the Company’s U.S. federal income tax returns for the years 2022 through 2024 are generally
open under the normal three -year statute of limitations and therefore subject to examination. State and local tax returns are
generally subject to audit from 2020 to 2024 . Foreign tax returns are generally subject to audit from 2011 to 2024 . Certain of
the Company’s affiliates are currently under audit by federal, state and foreign tax authorities. The Company does not believe
that the outcome of the audits will require it to record material reserves for uncertain tax positions or that the outcome will have
a material impact on the condensed consolidated financial statements.
On October 8, 2021, the OECD introduced a 15% global minimum tax under the Pillar Two GloBE model rules. On
January 5, 2026, the OECD announced a “side-by-side” system under which U.S.-parented groups would be able to elect to be
exempt from certain Pillar Two provisions. Additional guidance on the “side-by-side” system and implementation of such
system remain subject to further discussions and clarifications from the OECD and local implementation by each OECD
member country. Pillar Two has not had a material impact to the Company’s provision for income taxes; however, the
Company will continue to monitor as additional guidance is released by the OECD, OECD member countries based on their
enacted law changes, and other standard-setting bodies.

45

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

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

 

As of

 

March 31,
2026

December 31,
2025

 

(Dollars in millions)

Non-Carlyle interests in Consolidated Funds

$ 1,556.7

$ 861.5

Non-Carlyle interests in majority-owned subsidiaries

420.7

433.9

Non-controlling interests in carried interest and giveback obligations

( 6.3 )

0.2

Non-controlling interests in consolidated entities

$ 1,971.1

$ 1,295.6

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

 

Three Months Ended
March 31,

 

2026

2025

 

(Dollars in millions)

Non-Carlyle interests in Consolidated Funds

$ ( 2.5 )

$ 8.0

Non-Carlyle interests in majority-owned subsidiaries

( 0.8 )

20.6

Non-controlling interests in carried interest and giveback obligations

( 6.4 )

—

Non-controlling interests in income (loss) of consolidated entities

$ ( 9.7 )

$ 28.6

 

11. Earnings Per Common Share
Ba sic and diluted net income (loss) p er common share are calculated as follows:

 

Three Months Ended
March 31, 2026

 

Basic

Diluted

Net loss attributable to common shares

$ ( 132,200,000 )

$ ( 132,200,000 )

Weighted-average common shares outstanding

359,192,724

359,192,724

Net loss per common share

$ ( 0.37 )

$ ( 0.37 )

Three Months Ended
March 31, 2025

Basic

Diluted

Net income attributable to common shares

$ 130,000,000

$ 130,000,000

Weighted-average common shares outstanding

359,464,272

366,336,892

Net income per common share

$ 0.36

$ 0.35

46

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

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

 

Three Months Ended
March 31, 2026

 

Basic

Diluted

The Carlyle Group Inc. weighted-average common shares outstanding

359,192,724

359,192,724

Unvested restricted stock units

—

—

Issuable common shares and performance-vesting restricted stock units

—

—

Weighted-average common shares outstanding

359,192,724

359,192,724

Three Months Ended
March 31, 2025

Basic

Diluted

The Carlyle Group Inc. weighted-average common shares outstanding

359,464,272

359,464,272

Unvested restricted stock units

—

6,182,260

Issuable common shares and performance-vesting restricted stock units

—

690,360

Weighted-average common shares outstanding

359,464,272

366,336,892

The Company applies the treasury stock method to determine the dilutive weighted-average common shares represented
by the unvested restricted stock units. Also included in the determination of dilutive weighted-average common shares are
issuable common shares associated with the Company’s investment in NGP and performance-vesting restricted stock units. As
of March 31, 2026 , all such awards are antidilutive and excluded from the computation of diluted earnings per share given the
net loss attributable to common stockholders.

12. Equity
Share Repurchase Program
The Board of Directors reset the total repurchase authorization of the Company’s previously approved share repurchase
program to $ 2.0  billion in shares of the Company’s common stock, effective as of February 26, 2026. Under the share
repurchase program, shares of the Company’s common stock may be repurchased from time to time in open market
transactions, in privately negotiated transactions, or otherwise, including through Rule 10b5-1 plans. The timing and actual
number of shares of common stock repurchased will depend on a variety of factors, including legal requirements and price,
economic, and market conditions. In addition to repurchases of common stock, the share repurchase program is used for the
payment of tax withholding amounts upon net share settlement of equity-based awards granted pursuant to our Equity Incentive
Plan or otherwise based on the value of shares withheld that would have otherwise been issued to the award holder. The share
repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. As of
March 31, 2026 , the Company had repurchased approximately $ 0.1  billion of common shares under the reset program, and $ 1.9
billion of repurchase capacity remained available . The following table presents the Company’s shares that have been
repurchased or retired as a result of net share settlement of equity-based awards during the three months ended March 31, 2026
and 2025 . Dollar amounts exclude the impact of excise taxes.

Three Months Ended March 31,

2026

2025

Shares

$

Shares

$

(Dollars in millions, except share data)

Shares repurchased

1,331,853

$ 65.0

493,781

$ 25.0

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

2,469,837

139.8

2,835,354

151.5

Total

3,801,690

$ 204.8

3,329,135

$ 176.5

47

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

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

Dividend Record Date

Dividend Payment Date

Dividend per Common
Share

Dividend to Common
Stockholders

(Dollars in millions, except per share data)

May 19, 2025

May 27, 2025

$ 0.35

$ 126.3

August 18, 2025

August 28, 2025

0.35

126.5

November 10, 2025

November 19, 2025

0.35

125.9

February 16, 2026

February 20, 2026

0.35

126.4

Total 2025 Dividend Year

$ 1.40

$ 505.1

May 18, 2026

May 28, 2026

$ 0.35

$ 126.0

Total 2026 Dividend Year (through Q1 2026)

$ 0.35

$ 126.0

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

13. Equity-Based Compensation
The Carlyle Group Inc. Amended and Restated 2012 Equity Incentive Plan (the “Equity Incentive Plan,” initially adopted
in May 2012 and as most recently amended and restated on May 29, 2024) is a source of equity-based awards permitting the
Company to grant to Carlyle employees, directors and consultants non-qualified options, share appreciation rights, common
shares, restricted stock units and other awards based on the Company’s shares of common stock. A total of 58,800,000 shares of
common stock are authorized for the grant of awards under the Equity Incentive Plan, of which a total of 17,523,365 shares of
the Company’s common stock remain available for grant as of March 31, 2026 .
A summary of the status of the Company’s non-vested equity-based awards as of March 31, 2026 and a summary of
changes for the three months ended March 31, 2026 , are presented below:

Unvested Shares

Performance-
Vesting
Restricted
Stock Units

Weighted-
Average
Grant Date
Fair Value

Restricted
Stock
Units

Weighted-
Average
Grant Date
Fair Value

Unvested
Common
Shares

Weighted-
Average
Grant Date
Fair Value

Balance, December 31, 2025

14,214,568

$ 28.63

11,339,034

$ 47.36

397,838

$ 46.04

Granted (1)

31,268

$ 53.23

5,858,058

$ 58.70

126,507

$ 61.32

Vested (2)

5,189,824

$ 26.17

1,077,057

$ 50.37

—

$ —

Forfeited

—

$ —

39,305

$ 43.86

—

$ —

Balance, March 31, 2026

9,056,012

$ 30.12

16,080,730

$ 51.30

524,345

$ 49.73

(1) Includes shares reserved for issuance upon settlement of dividend-equivalent rights carried by certain restricted stock units concurrently
with the settlement of the restricted stock units for shares.
(2) Includes 2,469,837 shares that were retired in connection with the net share settlement of equity-based awards. The Company paid
$ 139.8 million of taxes related to the net share settlement of equity-based awards during the three months ended March 31, 2026 , which
is included within financing activities in the condensed consolidated statements of cash flows.
The Company recorded equity-based compensation expense, net of forfeitures, for restricted stock units of $ 119.8 million
and $ 103.5  million for the three months ended March 31, 2026 and 2025 , respectively, with $ 17.5  million and $ 18.6  million of
corresponding deferred tax benefits, respectively. As of March 31, 2026 , the total unrecognized equity-based compensation

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

expense related to unvested restricted stock units was $ 736.0 million , which is expected to be recognized over a weighted-
average term of 2.4 years .

14. Segment Reporting
Car lyle conducts its operations through three reportable segments:
Global Private Equity  – The Global Private Equity segment advises buyout, growth, real estate, and infrastructure &
natural resources funds. The segment also includes the NGP Carry Funds advised by NGP.
Global Credit  – The Global Credit segment advises funds and vehicles that pursue investment strategies including
insurance solutions, liquid credit, opportunistic credit, direct lending, asset-backed finance, aviation finance,
infrastructure credit, cross-platform credit products, and global capital markets.
Carlyle AlpInvest – The Carlyle AlpInvest segment advises global private equity programs that pursue secondary
purchases and financing of existing portfolios, managed co-investment programs, and primary fund investments.
The Company’s reportable business segments are differentiated by their various investment focuses and strategies.
Overhead costs are generally allocated based on cash-based compensation and benefits expense for each segment. The
Company’s earnings from its investment in NGP are presented in the respective operating captions within the Global Private
Equity segment.
Distributable Earnings . Distributable Earnings, or “DE,” is a key performance benchmark used in the Company’s
industry and is evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief Executive Officer, in
making resource deployment and compensation decisions and in assessing performance of the Company’s three reportable
segments. The CODM also uses DE in budgeting, forecasting, and the overall management of the Company’s segments. The
CODM believes that reporting DE is helpful to understanding the Company’s business and that investors should review the
same supplemental financial measure that the CODM uses to analyze the Company’s segment performance. DE is intended to
show the amount of net realized earnings without the effects of the consolidation of the Consolidated Funds. DE is derived from
the Company’s segment reported results and is used to assess performance.
Distributable Earnings differs from income (loss) before provision for income taxes computed in accordance with U.S.
GAAP in that it includes certain tax expenses associated with certain foreign performance revenues (composed of performance
allocations and incentive fees), and does not include unrealized performance allocations and related compensation expense,
unrealized principal investment income, equity-based compensation expense, net income (loss) attributable to non-Carlyle
interests in consolidated entities, or charges (credits) related to Carlyle corporate actions and non-recurring items that affect
period-to-period comparability and are not reflective of the Company’s operational performance. Charges (credits) related to
Carlyle corporate actions and non-recurring items include: charges associated with the Conversion, charges (credits) associated
with acquisitions, dispositions or strategic investments, changes in the tax receivable agreement liability, amortization and any
impairment charges associated with acquired intangible assets, transaction costs associated with acquisitions and dispositions,
charges associated with earn-outs and contingent consideration including gains and losses associated with the estimated fair
value of contingent considerations issued in conjunction with acquisitions or strategic investments, impairment charges
associated with lease right-of-use assets, gains and losses from the retirement of debt, charges associated with contract
terminations and employee severance, and non-recurring items that affect period-to-period comparability and are not reflective
of the Company’s operating performance. Management believes the inclusion or exclusion of these items provides investors
with a meaningful indication of the Company’s core operating performance.
Fee Related Earnings . Fee Related Earnings, or “FRE,” is a component of DE and is used to assess the ability of the
business to cover base compensation and operating expenses from total fee revenues. FRE adjusts DE to exclude net realized
performance revenues, realized principal investment income, and net interest (interest income less interest expense). Fee
Related Earnings includes fee related performance revenues and related compensation expense. Fee related performance
revenues represent the realized portion of performance revenues that are measured and received on a recurring basis, are not
dependent on realization events, and which have no risk of giveback.
Asset information by segment is not disclosed because this information is not used by the CODM to make resource
deployment decisions or evaluate the performance of the Company’s segments.

49

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

The following tables present the financial data for the Company’s three reportable segments for the three months ended
March 31, 2026 :

Global
Private
Equity

Global
Credit

Carlyle
AlpInvest

Total

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 284.3

$ 147.3

$ 112.9

$ 544.5

Portfolio advisory and transaction fees, net and other

6.8

47.2

0.1

54.1

Fee related performance revenues

2.1

32.1

11.2

45.4

Total fund level fee revenues

293.2

226.6

124.2

644.0

Realized performance revenues

29.7

10.7

21.4

61.8

Realized principal investment income

11.8

9.3

7.1

28.2

Interest income

7.0

7.2

2.7

16.9

Total revenues

341.7

253.8

155.4

750.9

Segment Expenses

Compensation and benefits

Cash-based compensation and benefits

91.3

93.3

33.9

218.5

Realized performance revenues related compensation

19.8

6.7

14.8

41.3

Total compensation and benefits

111.1

100.0

48.7

259.8

General, administrative, and other indirect expenses (1)

53.9

35.5

20.2

109.6

Depreciation and amortization expense

8.4

4.9

2.6

15.9

Interest expense

18.4

15.2

5.0

38.6

Total expenses

191.8

155.6

76.5

423.9

(=) Distributable Earnings

$ 149.9

$ 98.2

$ 78.9

$ 327.0

(-) Realized net performance revenues

9.9

4.0

6.6

20.5

(-) Realized principal investment income

11.8

9.3

7.1

28.2

(+) Net interest

11.4

8.0

2.3

21.7

(=) Fee Related Earnings

$ 139.6

$ 92.9

$ 67.5

$ 300.0

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

50

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

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

 

Three Months Ended March 31, 2025

Global
Private
Equity

Global
Credit

Carlyle
AlpInvest

Total

 

(Dollars in millions)

Segment Revenues

Fund level fee revenues

Fund management fees

$ 283.0

$ 139.6

$ 102.9

$ 525.5

Portfolio advisory and transaction fees, net and other

14.5

63.4

—

77.9

Fee related performance revenues

—

28.8

10.7

39.5

Total fund level fee revenues

297.5

231.8

113.6

642.9

Realized performance revenues

317.1

13.3

24.7

355.1

Realized principal investment income

15.1

5.5

9.4

30.0

Interest income

6.0

7.0

2.2

15.2

Total revenues

635.7

257.6

149.9

1,043.2

Segment Expenses

Compensation and benefits

Cash-based compensation and benefits

100.7

89.0

34.3

224.0

Realized performance revenues related compensation

200.4

7.9

19.4

227.7

Total compensation and benefits

301.1

96.9

53.7

451.7

General, administrative, and other indirect expenses (1)

48.7

35.0

11.9

95.6

Depreciation and amortization expense

6.9

3.9

1.9

12.7

Interest expense

13.4

11.3

3.1

27.8

Total expenses

370.1

147.1

70.6

587.8

(=) Distributable Earnings

$ 265.6

$ 110.5

$ 79.3

$ 455.4

(-) Realized net performance revenues

116.7

5.4

5.3

127.4

(-) Realized principal investment income

15.1

5.5

9.4

30.0

(+) Net interest

7.4

4.3

0.9

12.6

(=) Fee Related Earnings

$ 141.2

$ 103.9

$ 65.5

$ 310.6

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

51

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

The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes for the
three months ended March 31, 2026 and 2025 .

 

Three Months Ended March 31, 2026

 

Total
Reportable
Segments

Consolidated
Funds

Reconciling
Items

Carlyle
Consolidated

 

 

(Dollars in millions)

Revenues

$ 750.9

$ 179.7

$ ( 676.6 )

(a) 

$ 254.0

Expenses

$ 423.9

$ 178.3

$ ( 233.6 )

(b) 

$ 368.6

Other income (loss)

$ —

$ ( 64.4 )

$ —

(c) 

$ ( 64.4 )

Distributable Earnings

$ 327.0

$ ( 63.0 )

$ ( 443.0 )

(d) 

$ ( 179.0 )

 

Three Months Ended March 31, 2025

 

Total
Reportable
Segments

Consolidated
Funds

Reconciling
Items

 

Carlyle
Consolidated

 

 

 

(Dollars in millions)

Revenues

$ 1,043.2

$ 133.4

$ ( 203.5 )

(a) 

$ 973.1

Expenses

$ 587.8

$ 130.8

$ 89.6

(b) 

$ 808.2

Other income (loss)

$ —

$ 6.1

$ —

(c) 

$ 6.1

Distributable Earnings

$ 455.4

$ 8.7

$ ( 293.1 )

(d) 

$ 171.0

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

Three Months Ended
March 31,

 

2026

2025

(Dollars in millions)

Unrealized performance and fee related performance revenues

$ ( 669.4 )

$ ( 197.3 )

Unrealized principal investment income (loss)

( 68.3 )

17.0

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

( 11.6 )

( 96.1 )

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

24.0

91.0

Elimination of revenues of Consolidated Funds

48.7

( 18.1 )

$ ( 676.6 )

$ ( 203.5 )

The following table reconciles the total segments fund level fee revenue to the most directly comparable U.S. GAAP
measure, the Company’s consolidated fund management fees, for the three months ended March 31, 2026 and 2025 .

Three Months Ended
March 31,

2026

2025

(Dollars in millions)

Total Reportable Segments - Fund level fee revenues

$ 644.0

$ 642.9

Adjustments (1)

( 60.0 )

( 56.8 )

Carlyle Consolidated - Fund management fees

$ 584.0

$ 586.1

52

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

(1) Adjustments represent the reclassification of NGP management fees from principal investment income, the
reclassification of fee related performance revenues from certain products, management fees earned from
Consolidated Funds which were eliminated in consolidation to arrive at the Company’s fund management fees,
and the reclassification of certain amounts included in portfolio advisory fees, net and other in the segment
results that are included in interest and other income in the U.S. GAAP results.
The following table reconciles the total segments transaction and portfolio advisory fees, net and other to the most
directly comparable US. GAAP measure, the Company’s consolidated transaction and portfolio advisory fees, net for
the three months ended March 31, 2026 and 2025 .

Three Months Ended
March 31,

2026

2025

(Dollars in millions)

Total Reportable Segments - Portfolio advisory and transaction fees, net
and other

$ 54.1

$ 77.9

Adjustments (1)

( 4.8 )

( 1.2 )

Carlyle Consolidated - Portfolio advisory and transaction fees, net

$ 49.3

$ 76.7

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

Three Months Ended
March 31,

 

2026

2025

(Dollars in millions)

Unrealized performance and fee related performance revenue
compensation expense

$ ( 414.9 )

$ ( 107.3 )

Equity-based compensation

121.8

104.7

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

46.4

122.2

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

0.7

—

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

19.6

( 25.7 )

Other adjustments

4.6

13.1

Elimination of expenses of Consolidated Funds

( 11.8 )

( 17.4 )

$ ( 233.6 )

$ 89.6

(c) The Other Income (Loss) adjustment results from the Consolidated Funds that were eliminated in consolidation to
arrive at the Company’s total Other Income (Loss).

53

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

(d) The following table is a reconciliation of Income (Loss) Before Provision for Income Taxes to Distributable Earnings
and to Fee Related Earnings:

Three Months Ended
March 31,

 

2026

2025

(Dollars in millions)

Income (loss) before provision for income taxes

$ ( 179.0 )

$ 171.0

Adjustments:

Net unrealized performance and fee related performance revenues

254.5

90.0

Unrealized principal investment (income) loss

68.3

( 17.0 )

Equity-based compensation (1)

121.8

104.7

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

46.4

122.2

Tax (expense) benefit associated with certain foreign performance revenues

0.7

—

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

9.7

( 28.6 )

Other adjustments (2)

4.6

13.1

Distributable Earnings

$ 327.0

$ 455.4

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

20.5

127.4

(-) Realized principal investment income (3)

28.2

30.0

(+) Net interest

21.7

12.6

Fee Related Earnings

$ 300.0

$ 310.6

(1) Equity-based compensation for the three months ended March 31, 2026 and 2025 included amounts that are presented in
principal investment income (loss) and general, administrative and other expenses in the Company’s condensed consolidated
statements of operations.
(2) Includes charges (credits) related to Carlyle corporate actions and non-recurring items that affect period-to-period
comparability and are not reflective of the Company’s operating performance.
(3) See reconciliation to most directly comparable U.S. GAAP measure below:

Three Months Ended March 31, 2026

Carlyle
Consolidated

Adjustments  (4)

Total
Reportable
Segments

(Dollars in millions)

Performance revenues

$ ( 681.1 )

$ 742.9

$ 61.8

Performance revenues related compensation expense

( 367.9 )

409.2

41.3

Net performance revenues

$ ( 313.2 )

$ 333.7

$ 20.5

Principal investment income (loss)

$ 64.4

$ ( 36.2 )

$ 28.2

Three Months Ended March 31, 2025

Carlyle
Consolidated

Adjustments  (4)

Total
Reportable
Segments

(Dollars in millions)

Performance revenues

$ 222.9

$ 132.2

$ 355.1

Performance revenues related compensation expense

171.4

56.3

227.7

Net performance revenues

$ 51.5

$ 75.9

$ 127.4

Principal investment income (loss)

$ ( 63.1 )

$ 93.1

$ 30.0

( 4)  Adjustments to performance revenues and principal investment income (loss) relate to (i) unrealized performance allocations
net of related compensation expense and unrealized principal investment income, which are excluded from the segment
results, (ii) amounts earned from the Consolidated Funds, which are eliminated in the U.S. GAAP consolidation but are

54

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

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

15. Subsequent Events
Subsequent events have been evaluated through the date the condensed consolidated financial statements were issued.
There have been no subsequent events that require recognition or disclosure through the date the condensed consolidated
financial statements were issued, except as disclosed below and elsewhere in these condensed consolidated financial statements.
In April 2026 , the Company’s Board of Directors declared a quarterly dividend of $ 0.35 per share of common stock to
common stockholders of record at the close of business on May 18, 2026 , payable on May 28, 2026 .

55

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

16. Supplemental Financial Information
The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the
Company’s financial position as of March 31, 2026 and December 31, 2025 and results of operations for the three months
ended March 31, 2026 and 2025 . The supplemental statement of cash flows is presented without effects of the Consolidated
Funds.

 

As of March 31, 2026

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Assets

Cash and cash equivalents

$ 1,673.2

$ —

$ —

$ 1,673.2

Cash and cash equivalents held at Consolidated Funds

—

1,081.0

—

1,081.0

Investments, including accrued performance allocations of $ 6,865.4

11,449.9

—

( 984.6 )

10,465.3

Investments of Consolidated Funds

—

14,326.8

—

14,326.8

Due from affiliates and other receivables, net

1,070.1

—

( 301.0 )

769.1

Due from affiliates and other receivables of Consolidated Funds, net

—

356.7

—

356.7

Fixed assets, net

234.9

—

—

234.9

Lease right-of-use assets, net

332.9

—

—

332.9

Deposits and other

96.2

2.2

—

98.4

Intangible assets, net

473.6

—

—

473.6

Deferred tax assets

30.1

—

—

30.1

Total assets

$ 15,360.9

$ 15,766.7

$ ( 1,285.6 )

$ 29,842.0

Liabilities and equity

Debt obligations

$ 3,001.6

$ —

$ —

$ 3,001.6

Loans payable of Consolidated Funds

—

11,434.1

( 285.4 )

11,148.7

Accounts payable, accrued expenses and other liabilities

478.3

—

—

478.3

Accrued compensation and benefits

4,911.8

—

—

4,911.8

Due to affiliates

218.8

7.6

—

226.4

Deferred revenue

358.2

—

—

358.2

Deferred tax liabilities

55.2

—

—

55.2

Other liabilities of Consolidated Funds

—

1,719.0

( 0.6 )

1,718.4

Lease liabilities

466.8

—

—

466.8

Accrued giveback obligations

102.0

—

—

102.0

Total liabilities

9,592.7

13,160.7

( 286.0 )

22,467.4

Common stock

3.6

—

—

3.6

Additional paid-in capital

4,408.4

1,025.5

( 1,025.5 )

4,408.4

Retained earnings

1,172.7

—

—

1,172.7

Accumulated other comprehensive loss

( 230.9 )

23.8

25.9

( 181.2 )

Non-controlling interests in consolidated entities

414.4

1,556.7

—

1,971.1

Total equity

5,768.2

2,606.0

( 999.6 )

7,374.6

Total liabilities and equity

$ 15,360.9

$ 15,766.7

$ ( 1,285.6 )

$ 29,842.0

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

As of December 31, 2025

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Assets

Cash and cash equivalents

$ 1,970.2

$ —

$ —

$ 1,970.2

Cash and cash equivalents held at Consolidated Funds

—

1,235.1

—

1,235.1

Investments, including accrued performance allocations of $ 7,620.3

12,219.6

—

( 1,066.9 )

11,152.7

Investments of Consolidated Funds

—

12,519.8

—

12,519.8

Due from affiliates and other receivables, net

1,135.0

—

( 300.2 )

834.8

Due from affiliates and other receivables of Consolidated Funds, net

—

206.4

—

206.4

Fixed assets, net

224.9

—

—

224.9

Lease right-of-use assets, net

331.9

—

—

331.9

Deposits and other

98.2

2.7

—

100.9

Intangible assets, net

507.1

—

—

507.1

Deferred tax assets

32.2

—

—

32.2

Total assets

$ 16,519.1

$ 13,964.0

$ ( 1,367.1 )

$ 29,116.0

Liabilities and equity

Debt obligations

$ 2,997.0

$ —

$ —

$ 2,997.0

Loans payable of Consolidated Funds

—

10,712.4

( 286.4 )

10,426.0

Accounts payable, accrued expenses and other liabilities

543.7

—

—

543.7

Accrued compensation and benefits

5,849.4

—

—

5,849.4

Due to affiliates

197.8

6.1

—

203.9

Deferred revenue

129.2

—

—

129.2

Deferred tax liabilities

106.3

—

—

106.3

Other liabilities of Consolidated Funds

—

1,260.7

( 0.3 )

1,260.4

Lease liabilities

470.2

—

—

470.2

Accrued giveback obligations

72.8

—

—

72.8

Total liabilities

10,366.4

11,979.2

( 286.7 )

22,058.9

Common stock

3.6

—

—

3.6

Additional paid-in capital

4,285.8

1,099.2

( 1,099.2 )

4,285.8

Retained earnings

1,642.3

—

—

1,642.3

Accumulated other comprehensive loss

( 213.1 )

24.1

18.8

( 170.2 )

Non-controlling interests in consolidated entities

434.1

861.5

—

1,295.6

Total equity

6,152.7

1,984.8

( 1,080.4 )

7,057.1

Total liabilities and equity

$ 16,519.1

$ 13,964.0

$ ( 1,367.1 )

$ 29,116.0

 
 

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

 

Three Months Ended March 31, 2026

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Revenues

Fund management fees

$ 596.0

$ —

$ ( 12.0 )

$ 584.0

Incentive fees

51.7

—

—

51.7

Investment income (loss)

Performance allocations

( 680.0 )

—

( 1.1 )

( 681.1 )

Principal investment income (loss)

( 5.2 )

—

69.6

64.4

Total investment loss

( 685.2 )

—

68.5

( 616.7 )

Interest and other income

63.1

—

( 7.8 )

55.3

Interest and other income of Consolidated Funds

—

179.7

—

179.7

Total revenues

25.6

179.7

48.7

254.0

Expenses

Compensation and benefits

Cash-based compensation and benefits

227.1

—

—

227.1

Equity-based compensation

119.8

—

—

119.8

Performance allocations and incentive fee related compensation

( 367.9 )

—

—

( 367.9 )

Total compensation and benefits

( 21.0 )

—

—

( 21.0 )

General, administrative and other expenses

184.5

—

0.1

184.6

Interest

38.6

—

—

38.6

Interest and other expenses of Consolidated Funds

—

178.3

( 11.9 )

166.4

Total expenses

202.1

178.3

( 11.8 )

368.6

Other loss

Net investment loss of Consolidated Funds

—

( 64.4 )

—

( 64.4 )

Loss before benefit for income taxes

( 176.5 )

( 63.0 )

60.5

( 179.0 )

Benefit for income taxes

( 37.1 )

—

—

( 37.1 )

Net loss

( 139.4 )

( 63.0 )

60.5

( 141.9 )

Net loss attributable to non-controlling interests in consolidated
entities

( 7.2 )

—

( 2.5 )

( 9.7 )

Net loss attributable to The Carlyle Group Inc.

$ ( 132.2 )

$ ( 63.0 )

$ 63.0

$ ( 132.2 )

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

Three Months Ended March 31, 2025

 

Consolidated
Operating
Entities

Consolidated
Funds

Eliminations

Consolidated

 

(Dollars in millions)

Revenues

Fund management fees

$ 594.4

$ —

$ ( 8.3 )

$ 586.1

Incentive fees

43.3

—

( 0.1 )

43.2

Investment income

Performance allocations

223.4

—

( 0.5 )

222.9

Principal investment loss

( 60.5 )

—

( 2.6 )

( 63.1 )

Total investment income

162.9

—

( 3.1 )

159.8

Interest and other income

57.2

—

( 6.6 )

50.6

Interest and other income of Consolidated Funds

—

133.4

—

133.4

Total revenues

857.8

133.4

( 18.1 )

973.1

Expenses

Compensation and benefits

Cash-based compensation and benefits

218.4

—

—

218.4

Equity-based compensation

103.5

—

—

103.5

Performance allocations and incentive fee related compensation

171.4

—

—

171.4

Total compensation and benefits

493.3

—

—

493.3

General, administrative and other expenses

173.7

—

( 0.1 )

173.6

Interest

27.8

—

—

27.8

Interest and other expenses of Consolidated Funds

—

130.8

( 17.3 )

113.5

Total expenses

694.8

130.8

( 17.4 )

808.2

Other income

Net investment income of Consolidated Funds

—

6.1

—

6.1

Income before provision for income taxes

163.0

8.7

( 0.7 )

171.0

Provision for income taxes

12.4

—

—

12.4

Net income

150.6

8.7

( 0.7 )

158.6

Net income attributable to non-controlling interests in consolidated
entities

20.6

—

8.0

28.6

Net income attributable to The Carlyle Group Inc.

$ 130.0

$ 8.7

$ ( 8.7 )

$ 130.0

 

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

 

Three Months Ended March 31,

 

2026

2025

 

(Dollars in millions)

Cash flows from operating activities

Net income (loss)

$ ( 139.4 )

$ 150.6

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

Depreciation and amortization

50.5

46.9

Equity-based compensation

119.8

103.5

Non-cash performance allocations and incentive fees

282.0

14.5

Non-cash principal investment (income) loss

17.4

69.6

Other non-cash amounts

( 2.1 )

12.6

Purchases of investments

( 328.7 )

( 290.9 )

Proceeds from the sale of investments

358.8

155.1

Payments of contingent consideration

—

( 1.0 )

Change in deferred taxes, net

( 45.4 )

( 29.4 )

Change in due from affiliates and other receivables

( 1.1 )

12.7

Change in deposits and other

7.1

( 10.8 )

Change in accounts payable, accrued expenses and other liabilities

( 66.1 )

( 25.4 )

Change in accrued compensation and benefits

( 461.2 )

( 327.7 )

Change in due to affiliates

18.0

6.5

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

( 4.5 )

( 2.8 )

Change in deferred revenue

229.8

280.2

Net cash provided by operating activities

34.9

164.2

Cash flows from investing activities

Purchases of fixed assets, net

( 28.1 )

( 16.7 )

Net cash used in investing activities

( 28.1 )

( 16.7 )

Cash flows from financing activities

Payments on CLO borrowings

( 22.5 )

( 14.6 )

Proceeds from CLO borrowings, net of financing costs

32.4

15.1

Dividends to common stockholders

( 126.4 )

( 126.4 )

Contributions from non-controlling interest holders

51.7

57.7

Distributions to non-controlling interest holders

( 59.6 )

( 16.9 )

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

( 204.8 )

( 176.5 )

Change in due to/from affiliates financing activities

36.9

42.3

Net cash used in financing activities

( 292.3 )

( 219.3 )

Effect of foreign exchange rate changes

( 5.4 )

4.6

Decrease in cash, cash equivalents and restricted cash

( 290.9 )

( 67.2 )

Cash, cash equivalents and restricted cash, beginning of period

1,973.6

1,266.5

Cash, cash equivalents and restricted cash, end of period

$ 1,682.7

$ 1,199.3

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

  Cash and cash equivalents

$ 1,673.2

$ 1,190.3

  Restricted cash

9.5

9.0

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

$ 1,682.7

$ 1,199.3

  Cash and cash equivalents held at Consolidated Funds

$ 1,081.0

$ 570.9

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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, 2025 .
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.
• 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 March 31, 2026 , our
Global Private Equity segment had $159.0 billion in AUM and $99.1 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 March 31, 2026 , our Global Credit segment had
$209.5 billion in AUM and $166.4 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
March 31, 2026 , our Carlyle AlpInvest segment had $106.9 billion in AUM and $67.9 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 14 , 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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Table of Contents

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 $475 billion as of March 31, 2026 for each of our three global business segments (in billions):

Global Private Equity

$ 159.0

Global Credit

$ 209.5

Corporate Private Equity

$ 97.8

Insurance Solutions 4

$ 85.7

U.S. Buyout (CP)

47.7

Liquid Credit

$ 47.7

Asia Buyout (CAP)

10.7

U.S. CLOs

33.5

Europe Buyout (CEP)

9.2

Europe CLOs

9.8

Japan Buyout (CJP)

6.5

CLO Investment Products

2.4

Carlyle Global Partners (CGP)

6.4

Revolving Credit

2.0

Europe Technology (CETP)

5.3

Private Credit

$ 76.1

U.S. Growth (CP Growth / CEOF)

3.2

Opportunistic Credit (CCOF / CSP)

20.3

Life Sciences (ABV / ACCD)

2.3

Direct Lending 5

14.0

Asia Growth (CAP Growth / CAGP)

1.1

Aviation Finance (SASOF / CALF)

12.5

Other 1

5.5

Asset-Backed Finance

11.8

Real Estate

$ 36.3

Cross-Platform Credit (incl. CTAC)

10.1

U.S. Real Estate (CRP)

25.3

Infrastructure Credit (CICF)

7.0

Core Plus Real Estate (CPI)

8.4

Other 6

0.5

International Real Estate (CER)

2.6

Infrastructure & Natural Resources

$ 24.9

Carlyle AlpInvest

$ 106.9

NGP Energy 2

11.5

Secondaries & Portfolio Finance (ASF / ASPF)

$ 47.6

Infrastructure and Renewable Energy 3

7.1

Co-Investments (ACF)

$ 23.9

International Energy (CIEP)

6.3

Primary Investments & Other 7

$ 35.4

Note: All amounts shown represent total assets under management as of March 31, 2026 , 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), Peru Buyout (CPF), and MENA Buyout 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) and Renewable Energy (CRSEF) funds.
(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) and Carlyle AlpInvest Private Markets Secondaries (CAPS) funds.

Trends Affecting Our Business
The commencement of hostilities in the Middle East and the closure of the Strait of Hormuz have not yet manifested as
visible economic damage. However, risks to the global economy remain elevated as the conflict in the Middle East persists, and
those risks will continue to rise for as long as the Strait remains effectively shut. Approximately 20% of global crude oil, 20%
of global liquid natural gas (“ LNG” ), 30% of global helium supplies, and 50% of global stocks of urea, the most widely used
nitrogenous fertilizer, transit the Strait. For the industrial sector, energy looms large, but for many businesses beyond this
sector, disruptions to supplies of petrochemicals, metals, helium, and other byproducts of LNG processing are just as
significant. In the U.S., which is less reliant on imports that traverse the Strait, impacts seem most likely to manifest in higher
prices, which could put downward pressure on consumption demand and slow overall growth. For much of the rest of the
world, impacts could be more substantial, with physical shortages of energy and supplies resulting in outright demand
destruction. Global supply shortages also have significant implications for the AI buildout, and AI-related capex growth
intentions could be pared back materially should the conflict become prolonged. 
In equity markets, investors have grown skeptical about returns to AI capex: the Magnificent 7 stocks declined 12%
during the quarter, though recent layoff announcements (presumably in an effort to offset these AI-related capex costs) and
soaring cloud revenues have driven a recovery rally that has more than erased the drawdown, lifting the group above its
October 2025 market peak to new all-time highs (as of May 8, 2026). The quarter was also marked by distinct pre- and post-

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conflict market dynamics. In the U.S., prior to February 27, 2026, investors rotated away from mega-cap technology and
software toward “real economy” sectors: industrials were up 14%, while SaaS stocks were down 30% from the start of the year
through that date, as new AI capabilities raised concerns about incumbent business models. After February 27, 2026, however,
that rotation partially reversed in response to the energy shock, and industrials underperformed through quarter-end. Since the
end of the first quarter of 2026, both “real economy” sectors and enterprise software (which is seen as less vulnerable to AI
disruption) have performed well, while SaaS and cloud services providers continue to lag. Overall, the S&P 500 ended the
quarter down 4.6%, though significant upgrades to “consensus” earnings estimates coupled with market optimism for an end to
the Middle East conflict have driven the index to record highs in May. This recent rally is a symptom of the difficulty investors
face in hedging and quantifying geopolitical risk. In contrast to other discrete shocks, such as the failure of SVB in 2023,
markets face less clarity in mapping out the trajectory of evolving geopolitical developments and so tend to “look through”
them. Globally, Japan’s Nikkei and Europe’s Euro Stoxx 50 started the quarter up 16.9% and 6%, respectively, prior to the
outbreak of hostilities, but ultimately finished the quarter up just 1.4% and down 3.8%, respectively. The shock also reaffirmed
the notion that bonds no longer hedge equity market risk. Bonds have now sold off with stocks during each major shock of the
last 12 months, and the correlation between the monthly returns of stocks and bonds has moved from -25% to +50% since 2022.
As the “natural” hedge of the traditional 60/40 portfolio continues to dissolve, investors may choose to rotate towards private
markets to achieve greater diversification. 
The U.S. economy retained underlying momentum during the quarter. The labor market did not show obvious signs of
deterioration, and our measure of real final demand—a proxy for real GDP net of foreign trade and inventories—grew at a 2.7%
annualized rate, a result consistent with 5.7% annual growth in S&P 1500 revenue. Business spending continued to advance at
an 11.1% annualized rate, led by AI-related investment. That strength is not limited to capex associated with data centers, which
continues to grow at prodigious rates, but also reflects enterprise IT budgets, as the need to devise and implement AI strategies
has moved technology spending from “nice to have” to a top corporate priority. Much of the spending thus far has been
concentrated in data capture, storage, and analytics, with companies also reporting significant value from dynamic pricing
algorithms that have allowed them to optimize prices across customers and products. At the same time, portfolio-wide energy
prices increased, while stronger transportation and logistics volumes suggested that some activity may have been pulled
forward in anticipation of higher prices and/or outright shortages. For many businesses, the challenge extends beyond energy to
supplies of petrochemicals, metals, helium, and other byproducts of LNG processing, with many focused on “taking price” to
defend margins in the face of escalating input costs. To date, our data are consistent with a short-term price shock and distortion
in volumes and shipments rather than sustained inflation. However , it is important to appreciate that energy and durable
consumer goods have been the expenditure categories doing the most to keep a lid on overall inflation. A reversal here seems
likely to intensify households’ affordability concerns as the supply impulse transitions from disinflationary to inflationary.
Although these pressures have not yet resulted in visible economic damage, there were signs of growing divergence in
consumer activity towards the end of Q1 2026, including a sharp deceleration in experiences spending and softer demand
among lower-income households, which could become more pronounced if current supply disruptions persist. 
For much of the rest of the world, the question is not simply pricing output appropriately, but curtailing production
schedules in advance of looming shortages. In Europe, our proprietary portfolio data suggest domestic demand remained
positive through the first quarter of the year. However, the risks associated with the conflict appear more acute outside the
United States, as the region is more exposed to imported energy and other industrial inputs that could become subject to
physical shortages if disruption persists. Our data indicated that the signs of recovery in Europe’s industrial sector, which were
apparent earlier in the quarter, receded in March, with a sharp deceleration in German factory orders and weakness in
manufacturing despite massive public investment outlays. By contrast, China experienced firm retail sales and sustained
momentum in industrial output despite ongoing weakness in its property sector. China imported more than 1.7 million barrels
per day of oil from Iran in March, defying expectations that it would be among the economies hardest hit by the conflict.
Energy availability appears to have been an important differentiator in supporting continued manufacturing activity. Elsewhere
in Asia, Taiwan and South Korea continued to benefit from the AI buildout and strong demand for electronic components, but
those tailwinds do not insulate them from shortages of helium, LNG, and other inputs critical to semiconductor production. If
the Strait remains blocked, initial cutbacks are likely to focus on lower-value-added chips, but a prolonged disruption could
begin to weigh more materially on broader AI-related capex and industrial output. In India, growth similarly appears resilient to
date, but risks to the outlook are significant. India is one of the economies in the region most reliant on oil and gas imports, and
continued disruption to supply could not only harm domestic consumption but could also result in production shutdowns across
its industrial sector. 
Global M&A activity was strong during the quarter. Transactions totaled $1.4 trillion, a 25% increase over Q1 2025.
Leveraged buyout (“LBO”) activity, however, was not as robust. GPs announced LBOs totaling $126 billion in the first quarter
of 2026, a deceleration both quarter-over-quarter (-21%) and year-over-year (-3.5%). Underlying transaction counts remained
relatively subdued at 434 deals, a 9% decrease from the same quarter a year ago, with the top 10 transactions accounting for
nearly 70% of total deal volume. Broader market volatility also impacted buyout exits in the quarter. Aggregate exit volumes of

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$94 billion were down -15% quarter-over-quarter and were 17% lower than in the first quarter of 2025. There were 21
operating company IPOs on U.S. exchanges in the first quarter, consistent with Q4 2025 in terms of transaction count, but
substantially lower (-37%) in terms of proceeds. Offerings skewed noticeably smaller, with only one transaction generating
proceeds over $1 billion. Broader market volatility related to the Middle East conflict appears to have curtailed appetite for
public offerings, with only three operating company IPOs on U.S. exchanges in March. Continued equity market volatility tied
to ongoing geopolitical risks may push out exit timing across the private equity industry this year. Lower liquidity and delayed
distributions, however, could produce attractive opportunities for our secondaries and portfolio finance platforms. 
Fears related to software exposure and AI-disintermediation risk drove credit spreads wider in the quarter across both
broadly syndicated (“BSL”) and direct lending markets, particularly for lower-rated borrowers: in BSL markets, B-flat spreads
widened 100 basis points in February and March relative to January. However, broader credit risks still appear contained, as
defaults plus distressed exchanges in the leveraged loan market finished the quarter at a 3.48% rate, well below their 2024-2025
average of 4.27%, while private credit defaults stood at 2.73%, modestly above their 2024-2025 average of 2.21%. Recent
credit events appear idiosyncratic rather than systemic, while concerns regarding software exposure do not fully reflect the
significant dispersion across portfolios, vintages, and software subsectors, some of which appear materially less vulnerable to
AI-related disruption than broader market sentiment suggests. Within the CLO market, widened liability spreads have put
pressure on new CLO creation and reset activity as compared to recent years, while underlying loan prices have remained
relatively resilient. The pullback in demand flows and normalization of spreads from 2025’s post-GFC lows could create
opportunities for private credit businesses to deploy capital on more favorable terms.   
In the first quarter of 2026, we deployed $10.0 billion across our platform and in contrast to the deceleration in LBO
activity in the broader market, we realized proceeds of $12.2 billion in our traditional carry funds, including $ 6.9 billion in
realized proceeds in our U.S. buyout funds. We had $13.0 billion in inflows in the first quarter of 2026 and $52.5 billion in
inflows over the last twelve months as of March 31, 2026 . Inflows over the last twelve months include $7.7 billion in our
evergreen wealth products, which had $19.0 billion in assets under management as of March 31, 2026, a nearly 80% increase
from one year ago.
Our carry fund portfolio appreciated 1% in the first quarter. Within our Global Private Equity segment in the first quarter,
our corporate private equity funds depreciated (2)% as market price decreases in certain publicly traded positions offset
appreciation elsewhere, our infrastructure & natural resources funds appreciated 9% driven by our international energy funds
and appreciation in the NGP Carry funds, 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 March 31, 2026 , appreciated 4% in the first
quarter. Carry funds in our Carlyle AlpInvest segment were flat in the first quarter.

Notable Developments
Dividends
In April 2026 , our Board of Directors declared a quarterly dividend of $0.35 per share to common stockholders of record
at the close of business on May 18, 2026 , payable on May 28, 2026 .

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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 . 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
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
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,

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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 7 ,
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
$264.6 million , $181.8 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 $88.5 million of the $264.6 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 in March 2025 (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. Our CLOs generate interest income primarily from investments in bonds
and loans, inclusive of amortization of discounts, and generate other income from consent and amendment fees.
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 beyond the Company’s capital invested in the Consolidated
Funds. 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 does not generally have a material impact on 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.

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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.
In certain of our equity-based compensation arrangements, vesting is based on the achievement of certain performance targets
or market conditions (see Note 13 , 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 and other consolidated funds, 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 11 , 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

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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
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 and evergreen products (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 March 31,

 

2026

2025

Consolidated Results

(Dollars in millions)

Components of Fee-earning AUM

Fee-earning AUM based on capital commitments

$ 71,716

$ 60,730

Fee-earning AUM based on invested capital

78,378

82,747

Fee-earning AUM based on collateral balances, at par

42,344

44,359

Fee-earning AUM based on net asset value

32,079

24,411

Fee-earning AUM based on fair value and other

108,840

101,596

Balance, End of Period (1)

$ 333,357

$ 313,843

(1) Ending balances as of March 31, 2026 and 2025 exclude $21.2 billion and $25.6 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 March 31,

 

2026

2025

Consolidated Results

(Dollars in millions)

Fee-earning AUM Rollforward

Balance, Beginning of Period

$ 336,778

$ 304,358

Inflows (1)

7,637

11,866

Outflows (including realizations) (2)

(8,814)

(5,606)

Market Activity & Other (3)

(1,541)

1,430

Foreign Exchange (4)

(703)

1,795

Balance, End of Period

$ 333,357

$ 313,843

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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, reinsurance and other 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 evergreen 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 and evergreen products;
(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
March 31, 2026

Consolidated Results

(Dollars in millions)

Total AUM Rollforward

Balance, Beginning of Period

$ 476,867

Inflows (1)

12,978

Outflows (including realizations) (2)

(13,526)

Market Activity & Other (3)

96

Foreign Exchange (4)

(997)

Balance, End of Period

$ 475,418

(1) Inflows generally reflects the impact of gross fundraising, reinsurance and other 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 evergreen products, outflows from our liquid credit products, and the expiration of available
capital.
(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds and
related co-investment vehicles, and separately managed accounts, as well as the net impact of fees, expenses and non-investment income,
change in gross asset value for our business development companies, changes in the fair value of Fortitude’s general account assets
covered by the strategic advisory services agreement, and other changes in AUM.
(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated
funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the
period end.
Please refer to “—Segment Analysis” for a detailed discussion by segment of the activity affecting Total AUM for each
of the periods presented.
Available Capital . “Available Capital” refers to the amount of capital commitments available to be called for investments,
which may be reduced for equity invested that is funded via a fund credit facility and expected to be called from investors at a
later date, plus any additional assets/liabilities at the fund level other than active investments. Amounts previously called may
be added back to available capital following certain distributions. “Expired Available Capital” occurs when a fund has passed
the investment and follow-on periods and can no longer invest capital into new or existing deals. Any remaining Available
Capital, typically a result of either recycled distributions or specific reserves established for the follow-on period that are not
drawn, can only be called for fees and expenses and is therefore removed from the Total AUM calculation.
Perpetual Capital . “Perpetual Capital” refers to the assets we manage or advise which have an indefinite term and for
which there is no immediate requirement to return capital to investors upon the realization of investments made with such
capital, except as required by applicable law. Perpetual Capital may be materially reduced or terminated under certain
conditions, including reductions from changes in valuations and payments to investors, including through elections by investors
to redeem their investments, dividend payments, and other payment obligations, as well as the termination of or failure to renew
the respective investment advisory agreements. Perpetual Capital includes: (a) assets managed under the strategic advisory
services agreement with Fortitude, (b) our Core Plus real estate fund, (c) our business development companies and certain other
direct lending products, (d) Carlyle Tactical Private Credit Fund (“CTAC”), (e) our closed-end tender offer Carlyle AlpInvest
Private Markets (“CAPM”) funds and Carlyle AlpInvest Private Markets Secondaries (“CAPS”) funds, and (f) certain other
structured credit and asset-backed finance products. As of March 31, 2026 , our total AUM and Fee-earning AUM included
$115.8 billion and $111.5 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 $36.7 billion and $32.3 billion ,
respectively, as of March 31, 2026 .
Performance Fee Eligible AUM . “Performance Fee Eligible AUM” represents the AUM of funds for which we are
entitled to receive performance allocations, inclusive of the fair value of investments in those funds (which we refer to as
“Performance Fee Eligible Fair Value”) and their Available Capital. Performance Fee Eligible Fair Value is “Performance Fee-
Generating” when the associated fund has achieved the specified investment returns required under the terms of the fund’s
agreement and is accruing performance revenue as of the quarter-end reporting date. Funds whose performance allocations are
treated as fee related performance revenues are excluded from these metrics. As of March 31, 2026 , our total AUM included
$230.7 billion of Performance Fee Eligible AUM.

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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 March 31, 2026 , our Consolidated Funds
represent approximately 4% of our AUM; 2% of our management fees for the three months ended March 31, 2026 ; and 11% of
our total investment income or loss on an unconsolidated basis for the three months ended March 31, 2026 .
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 March 31, 2026 , the
assets and liabilities of the Consolidated Funds were primarily related to our consolidated CLOs, which held approximately
$12.0 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 condensed 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 and may impact net income
attributable to the common stockholders.
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 months ended March 31, 2026 and 2025 . Our 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
March 31,

Change

 

2026

2025

$

%

 

(Dollars in millions)

Revenues

Fund management fees

$ 584.0

$ 586.1

$ (2.1)

0 %

Incentive fees

51.7

43.2

8.5

20 %

Investment income (loss)

Performance allocations

(681.1)

222.9

(904.0)

NM

Principal investment income (loss)

64.4

(63.1)

127.5

NM

Total investment income (loss)

(616.7)

159.8

(776.5)

NM

Interest and other income

55.3

50.6

4.7

9 %

Interest and other income of Consolidated Funds

179.7

133.4

46.3

35 %

Total revenues

254.0

973.1

(719.1)

(74) %

Expenses

Compensation and benefits

Cash-based compensation and benefits

227.1

218.4

8.7

4 %

Equity-based compensation

119.8

103.5

16.3

16 %

Performance allocations and incentive fee related compensation

(367.9)

171.4

(539.3)

NM

Total compensation and benefits

(21.0)

493.3

(514.3)

NM

General, administrative and other expenses

184.6

173.6

11.0

6 %

Interest

38.6

27.8

10.8

39 %

Interest and other expenses of Consolidated Funds

166.4

113.5

52.9

47 %

Total expenses

368.6

808.2

(439.6)

(54) %

Other income (loss)

Net investment income (loss) of Consolidated Funds

(64.4)

6.1

(70.5)

NM

Income (loss) before provision for income taxes

(179.0)

171.0

(350.0)

NM

Provision (benefit) for income taxes

(37.1)

12.4

(49.5)

NM

Net income (loss)

(141.9)

158.6

(300.5)

NM

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

(9.7)

28.6

(38.3)

NM

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

$ (132.2)

$ 130.0

$ (262.2)

NM

NM - Not meaningful

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Revenues
Fund management fees . Fund management fees decreased $2.1 million for the three months ended March 31, 2026 , as
compared to the three months ended March 31, 2025 , primarily due to the following:
 
Three Months Ended
March 31,

2026 v. 2025

(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

$ 58.7

Net 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

(17.0)

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

(15.9)

Lower transaction and portfolio advisory fees

(27.4)

All other changes

(0.5)

Total decrease in Fund management fees (1)

$ (2.1)

(1) Total decrease 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. Fee-earning AUM as of
March 31, 2026 increased in Carlyle AlpInvest and Global Credit, and remained flat in Global Private Equity as compared to
March 31, 2025, resulting in greater diversification in our fund management fee base across our three business segments.
Fund management fees included transaction and portfolio advisory fees, net of rebate offsets, of $49.3 million and
$76.7 million for the three months ended March 31, 2026 and 2025 , respectively. These fees primarily comprise capital markets
fees generated by Carlyle Global Capital Markets. 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.

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Investment income (loss) . Investment income (loss) was $(616.7) million and $159.8 million for the three months ended
March 31, 2026 and 2025 , respectively . The components of Investment income (loss) are included in the following table:

Three Months Ended
March 31,

Change

2026

2025

$

%

(Dollars in millions)

Performance allocations

$ (681.1)

$ 222.9

$ (904.0)

NM

Principal investment income (loss) :

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

55.3

(107.2)

162.5

NM

Investment income (loss) from our carry funds:

Global Private Equity

(1.7)

11.5

(13.2)

NM

Global Credit

3.1

0.8

2.3

288 %

Carlyle AlpInvest

(3.0)

2.2

(5.2)

NM

Investment loss from our CLOs

(9.7)

(0.8)

(8.9)

NM

Investment income from Carlyle FRL

6.8

13.9

(7.1)

(51) %

Investment income from our other Global Credit products

1.0

6.4

(5.4)

(84) %

Investment income from our other Carlyle AlpInvest products

13.4

11.6

1.8

16 %

Investment loss on foreign currency hedges

(1.0)

(0.8)

(0.2)

25 %

All other investment loss

0.2

(0.7)

0.9

(129) %

Total Principal investment income (loss)

64.4

(63.1)

127.5

NM

Total Investment income (loss)

$ (616.7)

$ 159.8

$ (776.5)

NM

Performance allocations .  Performance allocations by segment for the three months ended March 31, 2026 and 2025
comprised the following:

Three Months Ended
March 31,

Change

2026

2025

$

%

(Dollars in millions)

Global Private Equity

$ (698.1)

$ 85.0

$ (783.1)

NM

Global Credit

36.7

79.0

(42.3)

(54) %

Carlyle AlpInvest

(19.7)

58.9

(78.6)

NM

Total performance allocations

$ (681.1)

$ 222.9

$ (904.0)

NM

Performance allocations for the three months ended March 31, 2026 included the following:
• In the Global Private Equity segment, for the three months ended March 31, 2026 , reversals of Performance
allocations were primarily attributable to depreciation in CP VII, driven primarily by a decrease in the market prices
of certain public investments and the impact of preferred return , partially offset by accruals of Performance
allocations resulting from appreciation in our international energy funds and CJP IV .
• In the Global Credit segment, for the three months ended March 31, 2026 , Performance allocation accruals were
primarily driven by appreciation in CCOF III and SASOF V.
• In the Carlyle AlpInvest segment, for the three months ended March 31, 2026 , Performance allocation reversals
were primarily driven by depreciation in our co-investment funds, partially offset by appreciation in our secondaries
& portfolio finance funds.
Performance allocations for the three months ended March 31, 2025 included the following:
• In the Global Private Equity segment, for the three months ended March 31, 2025 , performance allocation accruals
were primarily driven by appreciation in CP VII, CP VI, and our infrastructure & natural resources strategy, partially
offset by the reversal of Performance allocations in CAP V reflecting portfolio depreciation largely driven by
publicly traded portfolio companies and the impact of preferred returns.
• In the Global Credit segment, for the three months ended March 31, 2025 , Performance allocation accruals were
primarily driven by appreciation in SASOF V and CCOF II.

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• In the Carlyle AlpInvest segment, for the three months ended March 31, 2025 , performance allocation accruals were
primarily driven by appreciation in our co-investment funds.
See “—Trends Affecting Our Business” for further discussion on the macroeconomic, geopolitical and industry
landscape, and our investment activity.
Principal investment income (loss) . Principal investment income for the three months ended March 31, 2026 was
primarily attributable to performance allocations on funds managed by NGP. Principal investment loss for the three months
ended March 31, 2025 was primarily attributable to an impairment charge of $92.5 million and a $38.0 million reduction in
NGP accrued carry, both of which negatively impacted the three months ended March 31, 2025 as a result of the restructuring
of the terms of our strategic investment in NGP (see Note 4 , Investments , for more information).
Interest and other income of Consolidated Funds . Interest and other income of Consolidated Funds increased $46.3
million for the three months ended March 31, 2026 , as compared to the three months ended March 31, 2025 , primarily driven
by an increase in interest income from our consolidated CL Os .
Expenses
Compensation and benefits . Total compensation and benefits decreased $514.3 million for the three months ended March
31, 2026 , as compared to the three months ended March 31, 2025 . The decrease for the three months ended March 31, 2026
relative to the comparable prior year period is primarily attributable to a decrease in Performance allocations and incentive fee
related compensation of $539.3 million , which was primarily driven by a decrease in Performance allocations , on which
Performance allocations and incentive fee related compensation is based. This was partially offset by an increase in Equity-
based compensation of $16.3 million , primarily driven by stock awards granted in December 2025 and February 2026 to further
align leadership with company performance.
Interest and other expenses of Consolidated Funds . Interest and other expenses of Consolidated Funds increased $52.9
million f or the three months ended March 31, 2026 , as compared to the three months ended March 31, 2025 , primarily
attributable to higher interest expense related to the consolidated CLOs and higher interest expense related to a collateralized
fund obligation in the Carlyle AlpInvest segment that was consolidated in the third quarter of 2025 .
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
March 31,

Change

 

2026

2025

$

%

 

(Dollars in millions)

Net realized gains (losses) on investments of Consolidated Funds (excluding CLOs)

$ 20.3

$ 13.9

$ 6.4

NM

Net change in unrealized gains (losses) on investments of Consolidated Funds
(excluding CLOs)

(49.8)

2.3

(52.1)

NM

Net realized and unrealized gains (losses) on investments of Consolidated Funds
(excluding CLOs)

(29.5)

16.2

(45.7)

NM

Gains (losses) on investments of consolidated CLOs

(219.1)

(9.2)

(209.9)

NM

Gains (losses) from liabilities of consolidated CLOs

184.2

(0.9)

185.1

NM

Net gains (losses) from consolidated CLOs

(34.9)

(10.1)

(24.8)

NM

Total net investment income (loss) of Consolidated Funds

$ (64.4)

$ 6.1

$ (70.5)

NM

Net investment income (loss) of Consolidated Funds for the three months ended March 31, 2026 included losses of
$34.9 million from our consolidated CLOs, with the remaining activity primarily attributable to unrealized losses on an
investment in a consolidated infrastructure fund in Global Private Equity . Through March 31, 2026 , the cumulative unrealized
investment loss recognized with respect to this investment attributable to the Company was approximately $175 million , which
will be realized upon the disposition of the fund’s investment , which we currently expect will occur in 2026.
Substantially all net investment income (loss) of Consolidated Funds, together with interest and other income of
Consolidated Funds and interest and other expenses of Consolidated Funds, is attributable to the related funds’ limited partners
or CLO investors. Accordingly, such amounts have no material impact on net income attributable to the Company beyond the
Company’s capital invested in the Consolidated Funds.

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Provision (benefit) for income taxes . Our provision (benefit) for income taxes was $(37.1) million and $12.4 million for
the three months ended March 31, 2026 and 2025 , respectively. Our effective tax rate was approximately 21% and 7% for the
three months ended March 31, 2026 and 2025 , respectively. The effective tax rate for the three months ended March 31, 2026
and 2025 primarily comprised the 21% U.S. federal corporate income tax rate and the tax effects of equity-based compensation
deductions, disallowed executive compensation, and non-controlling interest. For the three months ended March 31, 2026, the
effective tax rate included the impact of a one-time tax expense related to a change in the tax classification of a consolidated
subsidiary.
As of March 31, 2026 and December 31, 2025 , the Company had federal, state, local, and foreign taxes payable of
$134.9 million and $141.4 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 (loss) attributable to non-controlling interests in consolidated entities . Net income (loss) attributable to non-
controlling interests in consolidated entities was $(9.7) million for the three months ended March 31, 2026 , as compared to
$28.6 million for the three months ended March 31, 2025 . These amounts are primarily related to the net earnings of the
Consolidated Funds attributable to the related fund’s limited partners or CLO investors for each period, 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 and giveback obligations. The net
income (loss) of our Consolidated Funds, after eliminations, attributable to non-controlling interests was $(2.5) million and $8.0
million for the three months ended March 31, 2026 and 2025 , 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
months ended March 31, 2026 and 2025 . 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, infrequently occurring or unusual events, and non-recurring items that affect period-to-period comparability and are not
reflective of the Company’s operating performance.
The following table shows our total segment DE and FRE for the three months ended March 31, 2026 and 2025 .

Three Months Ended
March 31,

2026

2025

(Dollars in millions)

Total segment revenues

$ 750.9

$ 1,043.2

Total segment expenses

423.9

587.8

(=) Distributable Earnings

$ 327.0

$ 455.4

(-) Realized net performance revenues

20.5

127.4

(-) Realized principal investment income

28.2

30.0

(+) Net interest

21.7

12.6

(=) Fee Related Earnings

$ 300.0

$ 310.6

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Table of Contents

The following table sets forth our total segment revenues for the three months ended March 31, 2026 and 2025 .

Three Months Ended
March 31,

2026

2025

(Dollars in millions)

Segment revenues

Fund level fee revenues

Fund management fees

$ 544.5

$ 525.5

Portfolio advisory and transaction fees, net and other

54.1

77.9

Fee related performance revenues

45.4

39.5

Total fund level fee revenues

644.0

642.9

Realized performance revenues

61.8

355.1

Realized principal investment income

28.2

30.0

Interest income

16.9

15.2

Total Segment Revenues

$ 750.9

$ 1,043.2

The following table sets forth our total segment expenses for the three months ended March 31, 2026 and 2025 .

Three Months Ended
March 31,

2026

2025

(Dollars in millions)

Segment expenses

Compensation and benefits

Cash-based compensation and benefits

$ 218.5

$ 224.0

Realized performance revenue related compensation

41.3

227.7

Total compensation and benefits

259.8

451.7

General, administrative, and other indirect expenses

109.6

95.6

Depreciation and amortization expense

15.9

12.7

Interest expense

38.6

27.8

Total Segment Expenses

$ 423.9

$ 587.8

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Table of Contents

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

Three Months Ended
March 31,

 

2026

2025

 

(Dollars in millions)

Income (loss) before provision for income taxes

$ (179.0)

$ 171.0

Adjustments:

Net unrealized performance and fee related performance revenues

254.5

90.0

Unrealized principal investment (income) loss

68.3

(17.0)

Equity-based compensation (1)

121.8

104.7

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

46.4

122.2

Tax (expense) benefit associated with certain foreign performance revenues

0.7

—

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

9.7

(28.6)

Other adjustments (2)

4.6

13.1

(=) Distributable Earnings

$ 327.0

$ 455.4

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

20.5

127.4

(-) Realized principal investment income (3)

28.2

30.0

(+) Net interest

21.7

12.6

(=) Fee Related Earnings

$ 300.0

$ 310.6