v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting 14. Segment Reporting
Carlyle 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.
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.
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.
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
(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 Principal 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).
(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
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.