v3.26.1
Fair Value Measurement
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement 3. Fair Value Measurement
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the
fair value hierarchy levels as disclosed in Note 2, Summary of Significant Accounting Policies, as of March 31, 2026:
(Dollars in millions)
Level I
Level II
Level III
Total
Assets
Investments of Consolidated Funds(1):
Equity securities(2)
$73.7
$16.4
$875.5
$965.6
Bonds
—
—
756.2
756.2
Loans
—
—
10,214.7
10,214.7
73.7
16.4
11,846.4
11,936.5
Investments in CLOs and other:
Investments in CLOs
—
—
309.9
309.9
Other investments(3)
89.7
20.3
91.0
201.0
89.7
20.3
400.9
510.9
Foreign currency forward contracts
—
0.4
—
0.4
Subtotal
$163.4
$37.1
$12,247.3
$12,447.8
Investments measured at net asset value
2,396.6
Total
$14,844.4
Liabilities
Loans payable of Consolidated Funds(4)(5)
$—
$—
$10,156.7
$10,156.7
Foreign currency forward contracts
—
3.7
—
3.7
Total
$—
$3.7
$10,156.7
$10,160.4
(1)This balance excludes $2.4 billion of Investments of Consolidated Funds that are included in Investments measured at net asset
value, which relate to certain consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.
(2)This balance includes $726.4 million related to investments that have been bridged by a subsidiary of the Company to investment
funds and are accounted for as consolidated VIEs as of March 31, 2026. The Company’s subsidiary, which is accounted for as a
consolidated VIE, has entered into warehouse agreements with certain funds to transfer certain of these investments at a price agreed
upon by the parties, which may differ from fair value.
(3)The Level III balance excludes $98.3 million related to four corporate investments in equity securities which the Company has
elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to
ASC 321, Investments–Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is
excluded from the tabular Level III rollforward disclosures.
(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial
assets, less (i) the fair value of any beneficial interest held by the Company and (ii) the carrying value of any beneficial interests that
represent compensation for services.
(5)Loans payable of Consolidated Funds balance excludes $940.9 million of senior notes measured at amortized cost and a
$51.0 million revolving credit balance, which relate to certain consolidated investment fund of funds in the Company’s Carlyle
AlpInvest segment.
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the
above fair value hierarchy levels as of December 31, 2025:
(Dollars in millions)
Level I
Level II
Level III
Total
Assets
Investments of Consolidated Funds(1):
Equity securities(2)
$132.0
$18.2
$1,094.8
$1,245.0
Bonds
—
—
691.2
691.2
Loans
—
—
9,249.8
9,249.8
132.0
18.2
11,035.8
11,186.0
Investments in CLOs and other:
Investments in CLOs
—
—
349.0
349.0
Other investments(3)
112.0
20.9
94.6
227.5
112.0
20.9
443.6
576.5
Foreign currency forward contracts
—
4.8
—
4.8
Subtotal
$244.0
$43.9
$11,479.4
$11,767.3
Investments measured at net asset value
1,340.6
Total
$13,107.9
Liabilities
Loans payable of Consolidated Funds(4)(5)
$—
$—
$9,423.1
$9,423.1
Foreign currency forward contracts
—
4.4
—
4.4
Total
$—
$4.4
$9,423.1
$9,427.5
(1)This balance excludes $1.3 billion of Investments of Consolidated Funds that are included in Investments measured at net asset
value, which relate to certain consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.
(2)This balance includes $989.4 million related to investments that have been bridged by a subsidiary of the Company to investment
funds and are accounted for as consolidated VIEs as of December 31, 2025. The Company’s subsidiary, which is accounted for as a
consolidated VIE, has entered into warehouse agreements with certain funds to transfer certain of these investments at a price agreed
upon by the parties, which may differ from fair value.
(3)The Level III balance excludes $63.0 million related to three corporate investments in equity securities which the Company has
elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to
ASC 321, Investments–Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is
excluded from the tabular Level III rollforward disclosures.
(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial
assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that
represent compensation for services.
(5)Loans payable of Consolidated Funds balance excludes a $939.4 million of senior notes measured at amortized cost and a
$63.0 million revolving credit balance, which relate to certain consolidated investment fund of funds in the Company’s Carlyle
AlpInvest segment.
 
The changes in financial instruments measured at fair value for which the Company has used Level III inputs to
determine fair value are as follows (Dollars in millions):
Financial Assets
Three Months Ended March 31, 2026
 
Investments of Consolidated Funds
 
 
 
Equity
securities
Bonds
Loans
Investments in
CLOs
Other
investments
Total
Balance, beginning of period
$1,094.8
$691.2
$9,249.8
$349.0
$94.6
$11,479.4
Initial consolidation of funds(1)
0.1
17.5
361.7
—
—
379.3
Purchases
45.5
161.3
2,642.9
1.0
—
2,850.7
Sales and distributions
(261.1)
(94.4)
(1,339.7)
(34.2)
(2.8)
(1,732.2)
Settlements
—
—
(439.2)
—
—
(439.2)
Realized and unrealized gains (losses), net
Included in earnings
(3.8)
(9.8)
(205.5)
(0.8)
(0.8)
(220.7)
Included in other comprehensive income
—
(9.6)
(55.3)
(5.1)
—
(70.0)
Balance, end of period
$875.5
$756.2
$10,214.7
$309.9
$91.0
$12,247.3
Changes in unrealized gains (losses) included in earnings
related to financial assets still held at the reporting date
$(9.2)
$(7.5)
$(200.1)
$(3.9)
$(0.7)
$(221.4)
Changes in unrealized gains (losses) included in other
comprehensive income related to financial assets still held at
the reporting date
$—
$(8.2)
$(50.5)
$(5.3)
$—
$(64.0)
(1)As a result of the initial consolidation of two funds during the three months ended March 31, 2026.
Financial Assets
Three Months Ended March 31, 2025
 
Investments of Consolidated Funds
 
 
 
Equity
securities
Bonds
Loans
Investments in
CLOs
Other
investments
Total
Balance, beginning of period
$572.0
$465.1
$6,431.4
$378.9
$85.1
$7,932.5
Initial consolidation of funds(1)
—
24.0
167.9
1.0
—
192.9
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.
 
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:
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
1.5x - 22.0x (11.4x)
Higher
Revenue Multiple
2.7x - 9.0x (6.4x)
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
(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.
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
1.5x - 23.8x (12.0x)
Higher
Revenue Multiple
2.8x - 2.8x (2.8x)
Higher
TCF Multiple
22.3x - 22.3x (22.3x)
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
(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.