cg-20260630

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED June 30, 2026


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission File Number: 001-35538

The Carlyle Group Inc.

(Exact name of registrant as specified in its charter)


Delaware		45-2832612
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1001 Pennsylvania Avenue, NW

Washington, DC, 20004-2505

(Address of principal executive offices) (Zip Code)

(202) 729-5626

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	CG	The Nasdaq Global Select Market
4.625% Subordinated Notes due 2061 of Carlyle Finance L.L.C.	CGABL	The Nasdaq Global Select Market

As of August 4, 2026, there were 356,332,798 shares of common stock of the registrant outstanding.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during

the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for

the past 90 days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of

Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such

files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging

growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule

12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or

revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

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Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of Section 27A of the

Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements

include, but are not limited to, statements related to our expectations, estimates, beliefs, projections, future plans and strategies,

anticipated events or trends, and similar expressions and statements that are not historical facts, including our expectations

regarding the performance of our business, our financial results, our liquidity and capital resources, contingencies, and our

dividend policy. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,”

“expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,”

“estimates,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements

are subject to various risks, uncertainties, and assumptions. Accordingly, there are or will be important factors that could cause

actual outcomes or results to differ materially from those indicated in these statements including, but not limited to, those

described in this Quarterly Report on Form 10-Q and under the section entitled “Risk Factors” in our Annual Report on Form

10-K for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission (“SEC”) on February 27,

2026, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s

website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other

cautionary statements that are included in this Quarterly Report on Form 10-Q and in our other periodic filings with the SEC.

We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new

information, future developments, or otherwise, except as required by applicable law.

Website and Social Media Disclosure

We use our website (www.carlyle.com), our corporate Facebook page (www.facebook.com/onecarlyle), our corporate X

account (@OneCarlyle or www.x.com/onecarlyle), our corporate Instagram account (@onecarlyle or www.instagram.com/

onecarlyle), our corporate LinkedIn account (www.linkedin.com/company/the-carlyle-group), our corporate YouTube channel

(www.youtube.com/user/onecarlyle), and our corporate WeChat account (ID: gh_3e34f090ec20) as channels of distribution of

material company information. For example, financial and other material information regarding our company is routinely

posted on and accessible at www.carlyle.com. Accordingly, investors should monitor these channels, in addition to following

our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive email

alerts and other information about Carlyle when you enroll your email address by visiting the “Email Alerts” section at http://

ir.carlyle.com/email-alerts. The contents of our website and social media channels are not, however, a part of this Quarterly

Report on Form 10-Q and are not incorporated by reference herein.

Carlyle does not conduct any public solicitations (including print and online articles, advertisements, or postings on social

media sites, messaging applications such as Telegram, WeChat, or WhatsApp, or other public platforms) with respect to

investments, fundraising, cryptocurrency, or opening accounts on social media sites. Any investment-related communication

received from these platforms purporting to be from a Carlyle professional is fraudulent and should be reported to authorities.

The Carlyle Group Inc. was formed in Delaware as a partnership on July 18, 2011. On January 1, 2020, we completed our

conversion from a Delaware limited partnership named The Carlyle Group L.P. into a Delaware Corporation named The

Carlyle Group Inc. (the conversion, together with such restructuring steps and related transactions, the “Conversion”).

Unless the 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. When we refer to our “senior Carlyle

professionals,” we are referring to the partner-level personnel of our firm. References in this Quarterly Report on Form 10-Q to

the ownership of the senior Carlyle professionals include the ownership of personal planning vehicles of these individuals.

When we refer to the “Carlyle Holdings partnerships” or “Carlyle Holdings,” we are referring to Carlyle Holdings I L.P.,

Carlyle Holdings II L.P., and Carlyle Holdings III L.P., which prior to the Conversion were the holding partnerships through

which the Company and our senior Carlyle professionals and other holders of Carlyle Holdings partnership units owned their

respective interests in our business.

“Carlyle funds,” “our funds,” and “our investment funds” refer to the investment funds and vehicles advised by Carlyle.

“Carry funds” generally refers to closed-end investment vehicles, in which commitments are drawn down over a specified

investment period, and in which the general partner receives a special residual allocation of income from limited partners,

which we refer to as carried interest, in the event that specified investment returns are achieved by the fund. Disclosures

referring to carry funds will also include the impact of certain commitments that do not earn carried interest, but are either part

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of or associated with our carry funds. The rate of carried interest, as well as the share of carried interest allocated to Carlyle,

may vary across the carry fund platform. Carry funds generally include the following investment vehicles across our three

business segments:

•Global Private Equity: Buyout, growth, real estate, and infrastructure & natural resources funds advised by Carlyle, as

well as certain energy funds advised by our strategic partner NGP Energy Capital Management (“NGP”) in which

Carlyle is entitled to receive a share of carried interest (“NGP Carry Funds”);

•Global Credit: Opportunistic credit, aviation finance, infrastructure credit, and other closed-end credit funds advised by

Carlyle; and

•Carlyle AlpInvest: Funds and vehicles advised by AlpInvest Partners B.V. and its affiliates (“AlpInvest”), which

include global private equity programs that pursue secondary purchases and financing of existing portfolios, managed

co-investment programs, and primary fund investments.

Carry funds specifically exclude certain legacy Abingworth funds in which Carlyle is not entitled to receive a share of

carried interest, collateralized loan obligation vehicles (“CLOs”), our business development companies and associated managed

accounts, as well as capital raised from strategic third-party investors which directly invest in Fortitude (defined below)

alongside a carry fund.

For an explanation of the fund acronyms used throughout this Quarterly Report on Form 10-Q, refer to “Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations – Our Global Investment Offerings.”

“Fortitude” refers to FGH Parent, L.P. (“FGH Parent”), the direct parent of Fortitude Group Holdings, LLC (“Fortitude

Holdings”). See Note 4, Investments, to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly

Report on Form 10-Q for more information regarding the Company’s strategic investment in Fortitude.

“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;

(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;

(c)the amount of aggregate fee-earning collateral balance 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;

(e)the fair value of Fortitude’s general account assets invested under the strategic advisory services agreement;

(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; 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.

“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;

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(b) the amount of aggregate collateral balance and principal cash or aggregate principal amount of the notes of our

CLOs and other structured products (inclusive of all positions);

(d)the fair value of Fortitude’s general account assets covered by 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.

We include in our calculation of AUM and Fee-earning AUM the NGP Carry 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 which directly invest in Fortitude alongside the fund. The total AUM and Fee-

earning AUM related to the strategic advisory services agreement with Fortitude is 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 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, incentive 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.

“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 allocations are excluded from these metrics.

“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.

“Legacy Energy Funds” include Energy III, Energy IV, and Renew II and are managed with Riverstone and its affiliates.

The investment periods for these funds have expired and the remaining investments in each fund are being disposed of in the

ordinary course of business. The impact of these funds is no longer significant to our results of operations.

“Metropolitan” or “MRE” refers to Metropolitan Real Estate Management, LLC, which was included in the Carlyle

AlpInvest business segment prior to its sale on April 1, 2021.

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

The Carlyle Group Inc.

Condensed Consolidated Balance Sheets

(Dollars in millions)


	June 30, 2026	December 31, 2025
	(Unaudited)
Assets
Cash and cash equivalents	$1,256.5	$1,970.2
Cash and cash equivalents held at Consolidated Funds	784.1	1,235.1
Investments, including accrued performance allocations of $6,608.2 and $7,620.3 as of June 30, 2026 and December 31, 2025, respectively	10,231.6	11,152.7
Investments of Consolidated Funds	13,320.3	12,519.8
Due from affiliates and other receivables, net	1,181.2	834.8
Due from affiliates and other receivables of Consolidated Funds, net	290.3	206.4
Fixed assets, net	248.3	224.9
Lease right-of-use assets, net	320.4	331.9
Deposits and other	91.8	100.9
Intangible assets, net	440.9	507.1
Deferred tax assets	30.2	32.2
Total assets	$28,195.6	$29,116.0
Liabilities and equity
Debt obligations	$2,998.8	$2,997.0
Loans payable of Consolidated Funds	10,804.4	10,426.0
Accounts payable, accrued expenses and other liabilities	591.8	543.7
Accrued compensation and benefits	5,007.6	5,849.4
Due to affiliates	243.0	203.9
Deferred revenue	135.5	129.2
Deferred tax liabilities	16.0	106.3
Other liabilities of Consolidated Funds	642.8	1,260.4
Lease liabilities	450.5	470.2
Accrued giveback obligations	92.4	72.8
Total liabilities	20,982.8	22,058.9
Commitments and contingencies
Common stock, $0.01 par value, 100,000,000,000 shares authorized (353,389,038 and 357,374,023 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively)	3.5	3.6
Additional paid-in-capital	4,557.4	4,285.8
Retained earnings	873.8	1,642.3
Accumulated other comprehensive loss	(192.6)	(170.2)
Non-controlling interests in consolidated entities	1,970.7	1,295.6
Total equity	7,212.8	7,057.1
Total liabilities and equity	$28,195.6	$29,116.0

See accompanying notes.

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The Carlyle Group Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(Dollars in millions, except share and per share data)


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Revenues
Fund management fees	$657.0	$620.4	$1,241.0	$1,206.5
Incentive fees	98.9	40.5	150.6	83.7
Investment income (loss)
Performance allocations	44.7	638.8	(636.4)	861.7
Principal investment income (loss)	69.2	55.2	133.6	(7.9)
Total investment income (loss)	113.9	694.0	(502.8)	853.8
Interest and other income	61.2	55.0	116.5	105.6
Interest and other income of Consolidated Funds	192.5	163.0	372.2	296.4
Total revenues	1,123.5	1,572.9	1,377.5	2,546.0
Expenses
Compensation and benefits
Cash-based compensation and benefits	261.9	238.4	489.0	456.8
Equity-based compensation	116.0	92.9	235.8	196.4
Performance allocations and incentive fee related compensation	93.6	443.6	(274.3)	615.0
Total compensation and benefits	471.5	774.9	450.5	1,268.2
General, administrative and other expenses	202.9	205.5	387.5	379.1
Interest	38.2	28.0	76.8	55.8
Interest and other expenses of Consolidated Funds	163.3	170.8	329.7	284.3
Other non-operating income	—	(0.1)	—	(0.1)
Total expenses	875.9	1,179.1	1,244.5	1,987.3
Other income (loss)
Net investment income (loss) of Consolidated Funds	26.2	46.8	(38.2)	52.9
Income before provision for income taxes	273.8	440.6	94.8	611.6
Provision for income taxes	49.0	112.5	11.9	124.9
Net income	224.8	328.1	82.9	486.7
Net income attributable to non-controlling interests in consolidated entities	87.7	8.4	78.0	37.0
Net income attributable to The Carlyle Group Inc.	$137.1	$319.7	$4.9	$449.7
Net income attributable to The Carlyle Group Inc. per common share (see Note 11)
Basic	$0.38	$0.89	$0.01	$1.25
Diluted	$0.37	$0.87	$0.01	$1.23
Weighted-average common shares
Basic	357,772,352	360,359,241	358,478,614	359,914,229
Diluted	367,301,542	366,967,197	368,081,014	366,654,517

Substantially all revenue is earned from affiliates of the Company. See accompanying notes.

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The Carlyle Group Inc.

Condensed Consolidated Statements of Changes in Equity

(Unaudited)

(Dollars and shares in millions)


	Common Shares	Common Stock	Additional Paid-in- Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Non- controlling Interests in Consolidated Entities	Total Equity
Balance at March 31, 2026	359.8	$3.6	$4,408.4	$1,172.7	$(181.2)	$1,971.1	$7,374.6
Shares repurchased	(6.6)	(0.1)	—	(299.9)	—	—	(300.0)
Net shares issued for equity-based awards	0.2	—	—	(4.1)	—	—	(4.1)
Equity-based compensation	—	—	112.9	—	—	—	112.9
Dividend-equivalent rights on certain equity- based awards	—	—	6.3	(6.3)	—	—	—
Initial consolidation of Consolidated Entities	—	—	—	—	—	222.0	222.0
Contributions	—	—	—	—	—	337.7	337.7
Dividends and distributions	—	—	—	(125.7)	—	(71.3)	(197.0)
Net income	—	—	—	137.1	—	87.7	224.8
Transfer of interests	—	—	29.8	—	—	(29.8)	—
Deconsolidation of Consolidated Entities	—	—	—	—	—	(545.3)	(545.3)
Currency translation adjustments	—	—	—	—	(12.4)	(1.4)	(13.8)
Defined benefit plans, net	—	—	—	—	1.0	—	1.0
Balance at June 30, 2026	353.4	$3.5	$4,557.4	$873.8	$(192.6)	$1,970.7	$7,212.8

	Common Shares	Common Stock	Additional Paid-in- Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Non- controlling Interests in Consolidated Entities	Total Equity
Balance at December 31, 2025	357.4	$3.6	$4,285.8	$1,642.3	$(170.2)	$1,295.6	$7,057.1
Shares repurchased	(7.9)	(0.1)	—	(364.9)	—	—	(365.0)
Net shares issued for equity-based awards	3.9	—	—	(143.9)	—	—	(143.9)
Equity-based compensation	—	—	229.3	—	—	—	229.3
Dividend-equivalent rights on certain equity- based awards	—	—	12.5	(12.5)	—	—	—
Initial consolidation of Consolidated Entities	—	—	—	—	—	544.1	544.1
Contributions	—	—	—	—	—	799.5	799.5
Dividends and distributions	—	—	—	(252.1)	—	(161.1)	(413.2)
Net loss	—	—	—	4.9	—	78.0	82.9
Transfer of interests	—	—	29.8	—	—	(29.8)	—
Deconsolidation of Consolidated Entities	—	—	—	—	—	(545.3)	(545.3)
Currency translation adjustments	—	—	—	—	(22.5)	(10.3)	(32.8)
Defined benefit plans, net	—	—	—	—	0.1	—	0.1
Balance at June 30, 2026	353.4	$3.5	$4,557.4	$873.8	$(192.6)	$1,970.7	$7,212.8

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	Common Shares	Common Stock	Additional Paid-in- Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Non- controlling Interests in Consolidated Entities	Total Equity
Balance at March 31, 2025	360.9	$3.6	$3,997.7	$1,864.8	$(288.7)	$807.8	$6,385.2
Shares repurchased	(2.2)	—	—	(100.0)	—	—	(100.0)
Net shares issued for equity-based awards	0.3	—	—	(3.6)	—	—	(3.6)
Equity-based compensation	—	—	94.1	—	—	—	94.1
Dividend-equivalent rights on certain equity- based awards	—	—	4.6	(4.6)	—	—	—
Contributions	—	—	—	—	—	68.3	68.3
Dividends and distributions	—	—	—	(126.3)	—	(34.2)	(160.5)
Net income	—	—	—	319.7	—	8.4	328.1
Currency translation adjustments	—	—	—	—	98.7	6.8	105.5
Defined benefit plans, net	—	—	—	—	0.5	—	0.5
Balance at June 30, 2025	359.0	$3.6	$4,096.4	$1,950.0	$(189.5)	$857.1	$6,717.6

	Common Shares	Common Stock	Additional Paid-in- Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Non- controlling Interests in Consolidated Entities	Total Equity
Balance at December 31, 2024	357.2	$3.6	$3,892.3	$2,040.8	$(329.8)	$740.7	$6,347.6
Shares repurchased	(2.7)	—	—	(125.0)	—	—	(125.0)
Net shares issued for equity-based awards	4.5	—	—	(155.1)	—	—	(155.1)
Equity-based compensation	—	—	196.4	—	—	—	196.4
Dividend-equivalent rights on certain equity- based awards	—	—	7.7	(7.7)	—	—	—
Initial consolidation of a Consolidated Entity	—	—	—	—	—	35.0	35.0
Contributions	—	—	—	—	—	231.3	231.3
Dividends and distributions	—	—	—	(252.7)	—	(198.4)	(451.1)
Net income	—	—	—	449.7	—	37.0	486.7
Currency translation adjustments	—	—	—	—	141.0	11.5	152.5
Defined benefit plans, net	—	—	—	—	(0.7)	—	(0.7)
Balance at June 30, 2025	359.0	$3.6	$4,096.4	$1,950.0	$(189.5)	$857.1	$6,717.6

See accompanying notes.

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The Carlyle Group Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(Dollars in millions)


	Six Months Ended June 30,
	2026	2025
Cash flows from operating activities
Net income	$82.9	$486.7
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	101.8	94.6
Equity-based compensation	235.8	196.4
Non-cash performance allocations and incentive fees, net	338.9	(250.6)
Non-cash principal investment (income) loss	(121.5)	32.6
Other non-cash amounts	(6.4)	36.8
Consolidated Funds related:
Realized/unrealized (gain) loss on investments of Consolidated Funds	102.0	(11.6)
Realized/unrealized (gain) loss from loans payable of Consolidated Funds	(63.8)	(41.3)
Purchases of investments by Consolidated Funds	(6,140.0)	(4,033.2)
Proceeds from sales and settlements of investments by Consolidated Funds	4,398.1	2,311.1
Non-cash interest income, net	(9.5)	(8.7)
Change in cash and cash equivalents held at Consolidated Funds	658.4	405.4
Change in other receivables held at Consolidated Funds	(81.1)	10.5
Change in other liabilities held at Consolidated Funds	(461.0)	(14.0)
Purchases of investments	(283.6)	(144.3)
Proceeds from the sale of investments	321.1	469.6
Payments of contingent consideration	—	(1.0)
Change in deferred taxes, net	(72.4)	(16.5)
Change in due from affiliates and other receivables	(65.4)	(16.3)
Change in deposits and other	7.5	(24.9)
Change in accounts payable, accrued expenses and other liabilities	55.1	39.1
Change in accrued compensation and benefits	(243.1)	(116.2)
Change in due to affiliates	3.9	23.6
Change in lease right-of-use assets and lease liabilities	(7.9)	(6.3)
Change in deferred revenue	7.3	57.6
Net cash used in operating activities	(1,242.9)	(520.9)
Cash flows from investing activities
Purchases of fixed assets, net	(60.1)	(34.2)
Net cash used in investing activities	(60.1)	(34.2)

Table of Contents


	Six Months Ended June 30,
	2026	2025
Cash flows from financing activities
Payments on CLO borrowings	(37.6)	(40.1)
Proceeds from CLO borrowings, net of financing costs	47.8	15.1
Net borrowings on loans payable of Consolidated Funds	949.6	1,055.1
Dividends to common stockholders	(252.1)	(252.7)
Contributions from non-controlling interest holders	799.5	231.3
Distributions to non-controlling interest holders	(161.1)	(198.4)
Common shares repurchased and net share settlement of equity-based awards	(508.9)	(280.1)
Change in due to/from affiliates financing activities	(208.7)	(3.4)
Net cash provided by financing activities	628.5	526.8
Effect of foreign exchange rate changes	(41.1)	38.7
Increase (decrease) in cash, cash equivalents and restricted cash	(715.6)	10.4
Cash, cash equivalents and restricted cash, beginning of period	1,973.6	1,266.5
Cash, cash equivalents and restricted cash, end of period	$1,258.0	$1,276.9
Supplemental non-cash disclosures
Initial consolidation of Consolidated Funds	$750.2	$55.0
Net asset impact of deconsolidation of Consolidated Funds	$(731.8)	$(26.6)

Reconciliation of cash, cash equivalents and restricted cash, end of period:
Cash and cash equivalents	$1,256.5	$1,275.8
Restricted cash	1.5	1.1
Total cash, cash equivalents and restricted cash, end of period	$1,258.0	$1,276.9
Cash and cash equivalents held at Consolidated Funds	$784.1	$463.1

See accompanying notes.

Table of Contents

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

1. Organization

Carlyle is one of the world’s largest global investment firms that deploys private capital across its business and conducts

its operations through three reportable segments: Global Private Equity, Global Credit, and Carlyle AlpInvest (see Note 14,

Segment Reporting). The Global Private Equity segment advises buyout, growth, real estate, and infrastructure & natural

resources funds. The Global Private Equity segment also includes the NGP Carry Funds advised by NGP. 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. 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. Carlyle typically serves as

the general partner, investment manager, or collateral manager, making day-to-day investment decisions concerning the assets

of these products.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements are prepared in accordance with accounting principles

generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company and its consolidated

subsidiaries. In addition, certain Carlyle-affiliated funds, related co-investment entities, and certain CLOs managed by the

Company (collectively, the “Consolidated Funds”) have been consolidated in the accompanying financial statements.

Generally, the consolidation of the Consolidated Funds has a gross-up effect on assets, liabilities and cash flows, but has no net

effect on the net income attributable to the Company beyond the capital contributed by the Company to the Consolidated Funds.

The economic ownership interests of the other investors in the Consolidated Funds are reflected as non-controlling interests in

consolidated entities in the accompanying condensed consolidated financial statements. All of the investments held by the

Consolidated Funds and notes issued by the consolidated CLOs are presented at their estimated fair values in the Company’s

condensed consolidated balance sheets. Interest and other income of the Consolidated Funds, interest expense and other

expenses of the Consolidated Funds, and net investment income (losses) of Consolidated Funds are included in the Company’s

condensed consolidated statements of operations.

Management has determined that the Company’s funds are investment companies under U.S. GAAP for the purposes of

financial reporting. U.S. GAAP for an investment company requires investments to be recorded at estimated fair value and the

unrealized gains and/or losses in an investment’s fair value are recognized on a current basis in the statements of operations.

Additionally, the funds do not consolidate their majority-owned and controlled investments. In the preparation of these

condensed consolidated financial statements, the Company has retained the specialized accounting for the funds.

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for

interim financial information. These statements, including notes, have not been audited, exclude some of the disclosures

required for annual financial statements, and should be read in conjunction with the audited consolidated financial statements

included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities

and Exchange Commission (“SEC”) on February 27, 2026. The operating results presented for interim periods are not

necessarily indicative of the results that may be expected for any other interim period or for the entire year. In the opinion of

management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals,

which are necessary for the fair presentation of the financial condition and results of operations for the interim periods

presented.

Principles of Consolidation

The Company consolidates all entities that it controls either through a majority voting interest or as the primary

beneficiary of variable interest entities (“VIEs”).

The Company evaluates (1) whether it holds a variable interest in an entity, (2) whether the entity is a VIE, and (3)

whether the Company’s involvement would make it the primary beneficiary. In evaluating whether the Company holds a

variable interest, fees (including management fees, incentive fees and performance allocations) that are customary and

commensurate with the level of services provided, and where the Company does not hold other economic interests in the entity

Table of Contents

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

that would absorb more than an insignificant amount of the expected losses or returns of the entity, are not considered variable

interests. The Company considers all economic interests, including indirect interests, to determine if a fee is considered a

variable interest.

For those entities where the Company holds a variable interest, the Company determines whether each of these entities

qualifies as a VIE and, if so, whether or not the Company is the primary beneficiary. The assessment of whether the entity is a

VIE is generally performed qualitatively, which requires judgment. These judgments include: (a) determining whether the

equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial

support, (b) evaluating whether the equity holders, as a group, can make decisions that have a significant effect on the economic

performance of the entity, (c) determining whether two or more parties’ equity interests should be aggregated, and (d)

determining whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to

receive returns from an entity.

For entities that are determined to be VIEs, the Company consolidates those entities where it has concluded it is the

primary beneficiary. The primary beneficiary is defined as the variable interest holder with (a) the power to direct the activities

of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity

or the right to receive benefits from the entity that could potentially be significant to the VIE. In evaluating whether the

Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly

by the Company.

As of June 30, 2026, assets and liabilities of the consolidated VIEs reflected in the condensed consolidated balance sheets

were $14.4 billion and $11.5 billion, respectively. As of December 31, 2025, assets and liabilities of the consolidated VIEs

reflected in the consolidated balance sheets were $14.0 billion and $11.7 billion, respectively. Except to the extent of the

consolidated assets of the VIEs, the holders of the consolidated VIEs’ liabilities generally do not have recourse to the Company.

The Company’s Consolidated Funds are primarily CLOs, which are VIEs that issue loans payable that are backed by

diversified collateral asset portfolios consisting primarily of loans or structured debt. In exchange for managing the collateral

for the CLOs, the Company earns investment management fees, including in some cases subordinated management fees and

contingent incentive fees. In cases where the Company consolidates the CLOs (primarily because of a retained interest that is

significant to the CLO), those management fees and contingent incentive fees have been eliminated as intercompany

transactions. As of June 30, 2026, the Company held $477.4 million of investments in these CLOs which represents its

maximum risk of loss. The Company’s investments in these CLOs are generally subordinated to other interests in the entities

and entitle the Company to receive a pro rata portion of the residual cash flows, if any, from the entities. Investors in the CLOs

have no recourse against the Company for any losses sustained in the CLO structure. The Company’s Consolidated Funds also

include certain investment funds in the Global Private Equity segment that are accounted for as consolidated VIEs due to the

Company providing financing to bridge investment purchases. As of June 30, 2026, the Company held $1.1 billion of notes

receivable and investments related to these investment funds which represents its maximum risk of loss. The Company’s

Consolidated Funds also include certain funds in the Global Credit and Carlyle AlpInvest segments that are accounted for as

consolidated VIEs due to the Company having either a significant direct interest in these funds or significant indirect interest

via the Company’s investment in Fortitude (see Note 4, Investments).

Entities that do not qualify as VIEs are generally assessed for consolidation as voting interest entities. Under the voting

interest entity model, the Company consolidates those entities it controls through a majority voting interest.

All significant inter-entity transactions and balances of entities consolidated have been eliminated.

Investments in Unconsolidated Variable Interest Entities

The Company holds variable interests in certain VIEs that are not consolidated because the Company is not the primary

beneficiary, including its investments in certain credit vehicles and certain Carlyle AlpInvest vehicles, as well as its strategic

investment in NGP Management Company, L.L.C. (“NGP Management” and, together with its affiliates, “NGP”). Refer to

Note 4, Investments, for information on the strategic investment in NGP. The Company’s involvement with such entities is in

the form of direct or indirect equity interests and fee arrangements. The maximum exposure to loss represents the loss of assets

recognized by the Company relating to its variable interests in these unconsolidated entities.

Table of Contents

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The assets recognized in the Company’s condensed consolidated balance sheets related to the Company’s variable

interests in these non-consolidated VIEs were as follows:


	As of
	June 30, 2026	December 31, 2025
	(Dollars in millions)
Investments	$714.7	$776.5
Accrued performance allocations	768.5	756.0
Management fee receivables	65.3	57.2
Total	$1,548.5	$1,589.7

These amounts represent the Company’s maximum exposure to loss related to the unconsolidated VIEs as of June 30,

2026 and December 31, 2025.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make assumptions and

estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of

the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting

period. Management’s estimates are based on historical experiences and other factors, including expectations of future events

that management believes to be reasonable under the circumstances. It also requires management to exercise judgment in the

process of applying the Company’s accounting policies. Assumptions and estimates regarding the valuation of investments and

their resulting impact on performance allocations and incentive fees involve a higher degree of judgment and complexity and

these assumptions and estimates may be significant to the condensed consolidated financial statements and the resulting impact

on performance allocations and incentive fees. Actual results could differ from these estimates and such differences could be

material.

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from

Contracts with Customers. Revenue is recognized when the Company transfers promised goods or services to customers in an

amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

ASC 606 includes a five-step framework that requires an entity to: (i) identify the contract(s) with a customer, which includes

assessing the collectability of the consideration to which it will be entitled in exchange for the goods or services transferred to

the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the

transaction price to the performance obligations in the contract, and (v) recognize revenue when the entity satisfies a

performance obligation.

The Company accounts for performance allocations that represent a performance-based capital allocation from fund

limited partners to the Company (commonly known as “carried interest”) as earnings from financial assets within the scope of

ASC 323, Investments—Equity Method and Joint Ventures, and therefore are not in the scope of ASC 606. In accordance with

ASC 323, the Company records equity method income (losses) as a component of investment income based on the change in its

proportionate claim on net assets of the investment fund, including performance allocations, assuming the investment fund was

liquidated as of each reporting date pursuant to each fund’s governing agreements. See Note 4, Investments, for additional

information on the components of investments and investment income. Performance fees that do not meet the definition of

performance-based capital allocations are in the scope of ASC 606 and are included in incentive fees in the condensed

consolidated statements of operations. The calculation of unrealized performance revenues utilizes investment valuations of the

funds’ underlying investments, which are derived using the policies, methodologies and templates prepared by the Company’s

valuation group, as described in Note 3, Fair Value Measurement.

While the determination of who is the customer in a contractual arrangement will be made on a contract-by-contract

basis, the customer will generally be the investment fund for the Company’s significant management and advisory contracts.

The customer determination impacts the Company’s analysis of the accounting for contract costs.

Table of Contents

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Fund Management Fees

The Company provides management services to funds in which it holds a general partner interest or to funds or certain

portfolio companies with which it has an investment advisory or investment management agreement. The Company considers

the performance obligations in its contracts with its funds to be the promise to provide (or to arrange for third parties to provide)

investment management services related to the management, policies and operations of the funds.

As it relates to the Company’s performance obligation to provide investment management services, the Company

typically satisfies this performance obligation over time as the services are rendered, as the funds simultaneously receive and

consume the benefits provided as the Company performs the service. The transaction price is the amount of consideration to

which the Company expects to be entitled in exchange for transferring the promised services to the funds. Management fees

earned from each investment management contract over the contract life represent variable consideration because the

consideration the Company is entitled to varies based on fluctuations in the basis for the management fee, for example fund net

asset value (“NAV”) or assets under management (“AUM”). Given that the management fee basis is susceptible to market

factors outside of the Company’s influence, management fees are constrained and, therefore, estimates of future period

management fees are generally not included in the transaction price. Revenue recognized for the investment management

services provided is generally the amount determined at the end of the period because that is when the uncertainty for that

period is resolved.

Management fees may be charged in advance or arrears, and at a monthly, quarterly, or semi-annual cadence pursuant to

the terms of the investment management agreement. The range of management fee rates and the base on which they are earned

vary based on the product’s strategy, expected term, and other factors, but generally encompass the following:

•For closed-end carry funds in the Global Private Equity and Global Credit segments:

◦During the fund’s commitment period, generally 1.0% to 2.0% of limited partners’ capital commitments in

the case of Global Private Equity and invested capital in the case of Global Credit, and

◦Following the expiration or termination of the investment period, generally 0.5% to 2.0% of the lower of

cost or fair value of invested capital.

•For carry funds and other fund vehicles in the Carlyle AlpInvest segment:

◦During the fund’s commitment period, generally 0.25% to 1.5% of the vehicle’s capital commitments, and

◦Following the expiration of the commitment fee period, generally 0.25% to 1.5% on (i) the net invested

capital, (ii) the lower of cost or net asset value of the capital invested, or (iii) the net asset value for

unrealized investments.

•For CLOs and other structured products in the Global Credit segment, 0.4% to 0.5% based on the total par amount

of assets or the aggregate principal amount of the notes in the CLO.

•For certain of the Company’s perpetual capital strategies and separately managed accounts in the Global Credit

segment, 0.10% to 0.75% based on invested capital or the fair value of the underlying assets.

•For certain cross platform products as well as the company’s business development companies in the Global Credit

segment, 1.0% to 1.5% of gross assets, excluding cash and cash equivalents, or net asset value.

•For the Company’s retail-oriented perpetual capital products, including CTAC, CAPM, and CAPS funds, generally

1.0% to 1.25% of net asset value.

The Company also provides transaction advisory and portfolio advisory services to the portfolio companies, and where

covered by separate contractual agreements, recognizes fees for these services when the performance obligation has been

satisfied and collection is reasonably assured. The Company is generally required to offset its fund management fees earned

from the funds that have invested in the portfolio companies to which the service has been provided by a percentage of the

transaction and advisory fees allocable to those funds. This amount is referred to as the “rebate offset,” and is generally 100%.

Table of Contents

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Transaction and advisory fees allocable to funds that do not pay fund management fees do not have a rebate offset. The

Company also recognizes underwriting fees from the Company’s loan syndication and capital markets business, Carlyle Global

Capital Markets. Fund management fees include transaction and portfolio advisory fees, as well as capital markets fees, of

$108.5 million and $45.8 million for the three months ended June 30, 2026 and 2025, respectively, and $157.8 million and

$122.5 million for the six months ended June 30, 2026 and 2025, respectively, net of rebate offsets as defined in the respective

fund limited partnership agreements.

Fund management fees exclude the reimbursement of any partnership expenses paid by the Company on behalf of the

Carlyle funds pursuant to the limited partnership agreements, including amounts related to the pursuit of actual, proposed, or

unconsummated investments, professional fees, expenses associated with the acquisition, holding and disposition of

investments, and other fund administrative expenses. For the professional fees that the Company arranges for the investment

funds, the Company concluded that the nature of its promise is to arrange for the services to be provided and it does not control

the services provided by third parties before they are transferred to the customer. Therefore, the Company concluded it is acting

in the capacity of an agent. Accordingly, the reimbursement for these professional fees paid on behalf of the investment funds is

presented on a net basis in general, administrative and other expenses in the condensed consolidated statements of operations.

The Company also incurs certain costs, primarily employee travel and entertainment costs, employee compensation and

systems costs, for which it receives reimbursement from the investment funds in connection with its performance obligation to

provide investment and management services. For reimbursable travel, compensation and systems costs, the Company

concluded it controls the services provided by its employees and the resources used to develop applicable systems before they

are transferred to the customer and therefore is a principal. Accordingly, the reimbursement for these costs incurred by the

Company to manage the fund limited partnerships are presented on a gross basis in interest and other income in the condensed

consolidated statements of operations and the expense in general, administrative and other expenses or cash-based

compensation and benefits expenses in the condensed consolidated statements of operations.

Incentive Fees

The Company is also entitled to receive performance-based incentive fees when the return on assets under management

exceeds certain benchmark returns or other performance targets. In such arrangements, the Company is entitled to an incentive

fee generally between 10.0% and 17.5% of either pre-incentive investment income or net profits, in most instances subject to a

quarterly hurdle rate and catch-up, payable quarterly. Incentive fees are recognized when the performance benchmark has been

achieved. Incentive fees are variable consideration because they are contingent upon the investment vehicle achieving stipulated

investment return hurdles. Investment returns are highly susceptible to market factors outside of the Company’s influence.

Accordingly, incentive fees are constrained until all uncertainty is resolved. Estimates of future period incentive fees are

generally not included in the transaction price because these estimates are constrained. The transaction price for incentive fees

is generally the amount determined at the end of each accounting period to which they relate because that is when the

uncertainty for that period is resolved, as these fees are not subject to clawback.

Investment Income (Loss), including Performance Allocations

Investment income (loss) represents the unrealized and realized gains and losses resulting from the Company’s equity

method investments, including any associated general partner performance allocations, and other principal investments,

including CLOs.

General partner performance allocations consist of the allocation of profits from certain of the funds to which the

Company is entitled (commonly known as carried interest).

For closed-end carry funds in the Global Private Equity and Global Credit segments, the Company is generally entitled to

a 20% allocation (or approximately 2% to 12.5% for most of the Carlyle AlpInvest segment carry fund vehicles) of the net

realized income or gain as a carried interest after returning the invested capital, the allocation of preferred returns of generally

7% to 9% and return of certain fund costs (generally subject to catch-up provisions as set forth in the fund limited partnership

agreement). These terms may vary on longer-dated funds, certain credit funds, and external co-investment vehicles. Carried

interest is recognized upon appreciation of the funds’ investment values above certain return hurdles set forth in each respective

partnership agreement. The Company recognizes revenues attributable to performance allocations based upon the amount that

would be due pursuant to the fund partnership agreement at each period end as if the funds were terminated at that date.

Accordingly, the amount recognized as investment income for performance allocations reflects the Company’s share of the

Table of Contents

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

gains and losses of the associated funds’ underlying investments measured at their then-current fair values relative to the fair

values as of the end of the prior period. Because of the inherent uncertainty, these estimated values may differ significantly

from the values that would have been used had a ready market for the investments existed, and it is reasonably possible that the

difference could be material.

Carried interest is ultimately realized when: (i) an underlying investment is profitably disposed of, (ii) certain costs borne

by the limited partner investors have been reimbursed, (iii) the fund’s cumulative returns are in excess of the preferred return,

and (iv) the Company has decided to collect carry rather than return additional capital to limited partner investors. Realized

carried interest may be required to be returned by the Company in future periods if the fund’s investment values decline below

certain levels. When the fair value of a fund’s investments remains constant or falls below certain return hurdles, previously

recognized performance allocations are reversed. In all cases, each fund is considered separately in this regard, and for a given

fund, performance allocations can never be negative over the life of a fund. If upon a hypothetical liquidation of a fund’s

investments at their then-current fair values, previously recognized and distributed carried interest would be required to be

returned, a liability is established for the potential giveback obligation. As of June 30, 2026 and December 31, 2025, the

Company accrued $92.4 million and $72.8 million, respectively, for giveback obligations.

Principal investment income (loss) is realized when the Company redeems all or a portion of its investment or when the

Company receives or is due cash income, such as dividends or distributions. Unrealized principal investment income (loss)

results from the Company’s proportionate share of the investee’s unrealized earnings, including changes in the fair value of the

underlying investment, as well as the reversal of unrealized gain (loss) at the time an investment is realized. As it relates to the

Company’s investments in NGP (see Note 4, Investments), principal investment income includes the related amortization of the

basis difference between the Company’s carrying value of its investment and the Company’s share of underlying net assets of

the investee, as well as the compensation expense associated with compensatory arrangements provided by the Company to

employees of its equity method investee, and impairment charges.

Interest Income

Interest income is recognized when earned. For debt securities representing non-investment grade beneficial interests in

securitizations, the effective yield is determined based on the estimated cash flows of the security. Changes in the effective

yield of these securities due to changes in estimated cash flows are recognized on a prospective basis as adjustments to interest

income in future periods. Interest income earned by the Company is included in interest and other income in the accompanying

condensed consolidated statements of operations. Interest income of the Consolidated Funds was $178.0 million and $142.5

million for the three months ended June 30, 2026 and 2025, respectively, and $339.8 million and $265.5 million for the six

months ended June 30, 2026 and 2025, respectively, and is included in interest and other income of Consolidated Funds in the

accompanying condensed consolidated statements of operations.

Credit Losses

The Company measures all expected credit losses for financial assets held at the reporting date in accordance with ASC

326, Financial Instruments—Credit Losses, based on historical experience, current conditions, and reasonable and supportable

forecasts. The Company assesses the collection risk characteristics of the outstanding amounts in its due from affiliates balance

into the following pools of receivables:

•Reimbursable fund expenses receivables,

•Management fee receivables,

•Incentive fee receivables,

•Transaction fee receivables,

•Portfolio fee receivables, and

•Notes receivable.

The Company generally utilizes either historical credit loss information or discounted cash flows to calculate expected

credit losses for each pool. The Company’s receivables are predominantly with its investment funds, which have low risk of

credit loss based on the Company’s historical experience. Historical credit loss data may be adjusted for current conditions and

reasonable and supportable forecasts, including the Company’s expectation of near-term realization based on the liquidity of the

affiliated investment funds.

Table of Contents

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Compensation and Benefits

Cash-Based Compensation and Benefits – Cash-based compensation and benefits includes salaries, bonuses

(discretionary awards and guaranteed amounts), performance payment arrangements, and benefits paid and payable to Carlyle

employees. Bonuses are accrued over the service period to which they relate.

Equity-Based Compensation – Compensation expense relating to the issuance of equity-based awards is measured at fair

value on the grant date. The compensation expense for awards that vest over a future service period is recognized over the

relevant service period on a straight-line basis. The compensation expense for awards that do not require future service is

recognized immediately. Cash settled equity-based awards are classified as liabilities and are re-measured at the end of each

reporting period. The compensation expense for awards that contain performance conditions is recognized when it is probable

that the performance conditions will be achieved. The compensation expense for awards that contain market conditions is based

on a grant-date fair value that factors in the probability that the market conditions will be achieved and is recognized over the

requisite service period on a straight-line basis.

Certain equity-based awards contain dividend-equivalent rights, which are subject to the same terms and conditions,

including with respect to vesting and settlement, that apply to the related award. Dividend-equivalents are accounted for as a

reclassification from retained earnings to additional paid-in capital at the time dividends are declared and do not result in

incremental compensation expense.

Equity-based awards issued to non-employees are generally recognized as general, administrative and other expenses,

except to the extent they are recognized as part of the Company’s equity method earnings because they are issued to employees

of equity method investees.

The Company recognizes equity-based award forfeitures in the period they occur as a reversal of previously recognized

compensation expense for awards that vest based on service and/or performance conditions. The reduction in compensation

expense is determined based on the specific awards forfeited during that period. Furthermore, the Company recognizes all

excess tax benefits and deficiencies as income tax benefit or expense in the condensed consolidated statements of operations.

For awards with a market condition (e.g., achievement of certain stock price hurdles) that are forfeited due to the market

condition not being achieved, the related equity-based compensation expense is not reversed.

Performance Allocations and Incentive Fee Related Compensation – A portion of the performance allocations and

incentive fees and certain other interests earned is due to employees and advisors of the Company. These amounts are

accounted for as profit sharing interests in compensation expense in a systematic and rational manner in conjunction with the

recognition of the related performance allocations and incentive fee revenue and, until paid, are recognized as a component of

the accrued compensation and benefits liability. The liability is measured assuming the hypothetical liquidation of the

associated funds’ underlying investments as of the measurement date. Accordingly, upon a reversal of performance allocations

or incentive fee revenue, the related compensation expense, if any, is also reversed. As any vesting requirement is accelerated

upon realization, the service period is not considered substantive when recording the liability based on the hypothetical

liquidation value. As of June 30, 2026 and December 31, 2025, the Company recorded a liability of $4.5 billion and

$5.1 billion, respectively, related to the portion of accrued performance allocations and incentive fees due to employees and

advisors, which was included in accrued compensation and benefits in the accompanying condensed consolidated balance

sheets.

Income Taxes

The Company is a corporation for U.S. federal income tax purposes and is subject to U.S. federal, state, and local

corporate income taxes. The Company is subject to periodic audit by U.S. federal, state, local, and foreign taxing authorities.

The interim provision for income taxes is generally calculated using an estimated annual effective tax rate applied to year-to-

date ordinary income in accordance with ASC 740, Income Taxes.

Non-controlling Interests

Non-controlling interests in consolidated entities represent the component of equity in consolidated entities held by third-

party investors. These interests are adjusted for general partner allocations which occur during the reporting period. Any change

in ownership of a subsidiary while the controlling financial interest is retained is accounted for as an equity transaction between

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

the controlling and non-controlling interests. Transaction costs incurred in connection with such changes in ownership of a

subsidiary are recorded as a direct charge to equity.

Earnings Per Common Share

The Company computes earnings per common share in accordance with ASC 260, Earnings Per Share. Basic earnings

per common share is calculated by dividing net income (loss) attributable to the common shares of the Company by the

weighted-average number of common shares outstanding for the period. Diluted earnings per common share reflects the

assumed conversion of all dilutive securities. The Company applies the treasury stock method to determine the dilutive

weighted-average common shares outstanding for certain equity-based compensation awards. For certain equity-based

compensation awards that contain performance or market conditions, the number of contingently issuable common shares is

included in diluted earnings per common share based on the number of common shares, if any, that would be issuable under the

terms of the awards if the end of the reporting period were the end of the contingency period, if the result is dilutive.

Fair Value of Financial Instruments

The underlying entities that the Company manages and invests in (and in certain cases, consolidates) are primarily

investment companies which account for their investments at estimated fair value.

The fair value measurement accounting guidance under ASC 820, Fair Value Measurement, establishes a hierarchical

disclosure framework which ranks the observability of market price inputs used in measuring financial instruments at fair value.

The observability of inputs is impacted by a number of factors, including the type of financial instrument, the characteristics

specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions

between market participants. Financial instruments with readily available quoted prices, or for which fair value can be measured

from quoted prices in active markets, will generally have a higher degree of market price observability and a lesser degree of

judgment applied in determining fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs

used in the determination of fair values, as follows:

Level I – inputs to the valuation methodology are quoted prices available in active markets for identical

instruments as of the reporting date. The type of financial instruments in this category include unrestricted

securities, such as equities and derivatives, listed in active markets. The Company does not adjust the quoted price

for these instruments, even in situations where the Company holds a large position and a sale could reasonably

impact the quoted price.

Level II – inputs to the valuation methodology are other than quoted prices in active markets, which are either

directly or indirectly observable as of the reporting date. The types of financial instruments in this category

include less liquid and restricted securities listed in active markets, securities traded in other than active markets,

government and agency securities, and certain over-the-counter derivatives where the fair value is based on

observable inputs.

Level III – inputs to the valuation methodology are unobservable and significant to overall fair value

measurement. The inputs into the determination of fair value require significant management judgment or

estimation. The types of financial instruments in this category include investments in privately-held entities, non-

investment grade residual interests in securitizations, collateralized loan obligations, and certain over-the-counter

derivatives where the fair value is based on unobservable inputs.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such

cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is

based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the

significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to

the financial instrument.

In certain cases, debt and equity securities (including corporate treasury investments) are valued on the basis of prices

from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)

value of a particular investment, pricing services may use certain information with respect to transactions in such investments,

quotations from dealers, pricing matrices, market transactions in comparable investments, and various relationships between

investments.

In the absence of observable market prices, the Company values its investments and its funds’ investments using

valuation methodologies applied on a consistent basis. For some investments little market activity may exist. Management’s

determination of fair value is then based on the best information available in the circumstances and may incorporate

management’s own assumptions and involve a significant degree of judgment, taking into consideration a combination of

internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks. Investments for

which market prices are not observable include private investments in the equity and debt of operating companies and real

assets, CLO investments and CLO loans payable, and fund investments. The valuation technique for each of these investments

is described below:

Investments in Operating Companies and Real Assets – The fair values of private investments in operating companies

and real assets are generally determined by reference to the income approach (including the discounted cash flow

method and the income capitalization method) and the market approach (including the comparable publicly traded

company method and the comparable transaction method). Valuations under these approaches are typically derived by

reference to investment-specific inputs (such as projected cash flows, earnings before interest, taxes, depreciation and

amortization (“EBITDA”), and net operating income) combined with market-based inputs (such as discount rates,

EBITDA multiples and capitalization rates). In many cases, the investment-specific inputs are unaudited at the time

received. Management may also adjust the market-based inputs to account for differences between the subject

investment and the companies, assets or investments used to derive the market-based inputs. Adjustments to

observable valuation measures are frequently made upon the initial investment to calibrate the initial investment

valuation to industry observable inputs. Such adjustments are made to align the investment to observable industry

inputs for differences in size, profitability, projected growth rates, geography, capital structure, and other factors as

applicable. The adjustments are then reviewed with each subsequent valuation to assess how the investment has

evolved relative to the observable inputs. Additionally, the investment may be subject to certain specific risks and/or

development milestones which are also taken into account in the valuation assessment. Option pricing models and

similar tools may also be considered but do not currently drive a significant portion of operating company or real asset

valuations and are used primarily to value warrants, derivatives, certain restrictions, and other atypical investment

instruments.

Credit-Oriented Investments – The fair values of credit-oriented investments (including corporate treasury

investments) are generally determined on the basis of prices between market participants provided by reputable dealers

or pricing services. In determining the value of a particular investment, pricing services may use certain information

with respect to transactions in such investments, quotations from dealers, pricing matrices, market transactions in

comparable investments, and various relationships between investments. Specifically, for investments in distressed

debt and corporate loans and bonds, the fair values are generally determined by valuations of comparable investments.

In some instances, the Company may utilize other valuation techniques, including the discounted cash flow method.

CLO Investments and CLO Loans Payable – The Company measures the financial liabilities of its consolidated CLOs

based on the fair value of the financial assets of its consolidated CLOs, as the Company believes the fair value of the

financial assets are more observable. The fair values of the CLO loan and bond assets are primarily based on

quotations from reputable dealers or relevant pricing services. In situations where valuation quotations are unavailable,

the assets are valued based on similar securities, market index changes, and other factors. The Company performs

certain procedures to ensure the reliability of the quotations from pricing services for its CLO assets and CLO

structured asset positions, which generally includes corroborating prices with a discounted cash flow analysis.

Generally, the loan and bond assets of the CLOs are not publicly traded and are classified as Level III. The fair values

of the CLO structured asset positions are determined based on both discounted cash flow analyses and third-party

quotes. Those analyses consider the position size, liquidity, current financial condition of the CLOs, the third-party

financing environment, reinvestment rates, recovery lags, discount rates, and default forecasts and are compared to

broker quotations from market makers and third-party dealers.

The Company measures the CLO loan payables held by third-party beneficial interest holders on the basis of the fair

value of the financial assets of the CLO and the beneficial interests held by the Company. The Company continues to

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)

measure the CLO loans payable that it holds at fair value based on relevant pricing services or discounted cash flow

analyses, as described above.

Fund Investments – The Company’s primary and secondary investments in external funds are generally valued as its

proportionate share of the most recent net asset value provided by the third-party general partners of the underlying

fund partnerships, adjusted for subsequent cash flows received from or distributed to the underlying fund partnerships.

The Company also adjusts for any changes in the market prices of public securities held by the underlying fund

partnerships and may also apply a market adjustment to reflect the estimated change in the fair value of the underlying

fund partnerships’ non-public investments from the date of the most recent net asset value provided by the third-party

general partners.

Investment professionals with responsibility for the underlying investments are responsible for preparing the investment

valuations pursuant to the policies, methodologies, and templates prepared by the Company’s valuation group, which is a team

made up of dedicated valuation professionals reporting to the Company’s Chief Accounting Officer. The valuation group is

responsible for maintaining the Company’s valuation policy and related guidance, templates, and systems that are designed to

be consistent with the guidance found in ASC 820. These valuations, inputs, and preliminary conclusions are reviewed by the

fund management teams. The valuations are then reviewed and approved by the respective fund valuation subcommittees,

which include the respective fund head(s), segment head, Chief Financial Officer, and Chief Accounting Officer, as well as

members of the valuation group. The valuation group compiles the aggregate results and significant matters and presents them

for review and approval by the global valuation committee, which includes, among others, the Company’s Chief Financial

Officer, Chief Accounting Officer, and the business segment heads, and is observed by the Chief Compliance Officer, the Chief

Audit Executive, the Chief Risk Officer, the Company’s Audit Committee, and others. Additionally, each quarter a sample of

valuations are reviewed by external valuation firms. Valuations of the funds’ investments are used in the calculation of accrued

performance allocations.

Investments, at Fair Value

Investments include (i) the Company’s ownership interests (typically general partner interests) in the Funds, including the

Company’s investment in Fortitude held through Carlyle FRL (which are accounted for as equity method investments), (ii) the

Company’s investment in NGP (which is accounted for as an equity method investment), (iii) the investments held by the

Consolidated Funds (which are presented at fair value in the Company’s condensed consolidated financial statements), and (iv)

certain credit-oriented investments, including investments in the CLOs and the common shares of Carlyle Secured Lending,

Inc. (“CGBD,” see Note 4, Investments, to this Quarterly Report on Form 10-Q and Note 9, Related Party Transactions, to our

Annual Report on Form 10-K for the year ended December 31, 2025 for more information), which are accounted for as trading

securities.

Upon the sale of a security or other investment, the realized net gain or loss is computed on a weighted average cost

basis, with the exception of the investments held by the CLOs, which compute the realized net gain or loss on a first in, first out

basis. Securities transactions are recorded on a trade date basis.

Equity Method Investments

The Company accounts for all investments in which it has or is otherwise presumed to have significant influence,

including investments in unconsolidated investment funds and the Company’s investment in NGP, using the equity method of

accounting. The carrying value of equity method investments is determined based on amounts invested by the Company,

adjusted for the equity in earnings or losses of the investee (including performance allocations) allocated based on the

respective partnership agreement, less distributions received. The Company evaluates its equity method investments for

impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be

recoverable.

Cash and Cash Equivalents

Cash and cash equivalents include cash held at banks and cash held for distributions, including investments with original

maturities of less than three months when purchased. The Company is subject to credit risk should a financial institution be

unable to fulfil its obligations and if balances held at a financial institution exceed insured limits.

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Cash and Cash Equivalents Held at Consolidated Funds

Cash and cash equivalents held at Consolidated Funds consists of cash and cash equivalents held by the Consolidated

Funds, which, although not legally restricted, is not available to fund the general liquidity needs of the Company.

Restricted Cash

Restricted cash primarily represents cash held by the Company’s foreign subsidiaries due to certain government

regulatory capital requirements as well as certain amounts held on behalf of Carlyle funds. As of June 30, 2026 and

December 31, 2025, the Company held restricted cash of $1.5 million and $3.4 million, respectively, which are included in

Deposits and other in the condensed consolidated balance sheets.

Corporate Treasury Investments

Corporate treasury investments represent investments in U.S. Treasury and government agency obligations, commercial

paper, certificates of deposit, other investment grade securities and other investments with original maturities of greater than

three months when purchased. These investments are accounted for as trading securities in which changes in the fair value of

each investment are recorded through investment income (loss). Any interest earned on debt investments is recorded through

interest and other income.

Derivative Instruments

The Company uses derivative instruments primarily to reduce its exposure to changes in foreign currency exchange rates.

Derivative instruments are recognized at fair value in the condensed consolidated balance sheets with changes in fair value

recognized in the condensed consolidated statements of operations for all derivatives not designated as hedging instruments.

Securities Sold Under Agreements to Repurchase

As it relates to certain European CLOs sponsored by the Company, securities sold under agreements to repurchase

(“Repurchase Agreements”) are accounted for as collateralized financing transactions. The Company provides securities to

counterparties to collateralize amounts borrowed under Repurchase Agreements on terms that permit the counterparties to

repledge or resell the securities to others. As of June 30, 2026, $346.1 million of securities were transferred to counterparties

under Repurchase Agreements and are included within investments in the condensed consolidated balance sheets. Cash

received under Repurchase Agreements is recognized as a liability within debt obligations in the condensed consolidated

balance sheets. See Note 5, Borrowings, for additional information.

Fixed Assets

Fixed assets consist of furniture, fixtures and equipment, leasehold improvements, computer hardware and software, and

fractional shares in corporate aircraft, and are stated at cost, less accumulated depreciation and amortization. Depreciation is

recognized on a straight-line method over the assets’ estimated useful lives, which for leasehold improvements are the lesser of

the lease terms or the life of the asset, and three to seven years for other fixed assets. Fixed assets are reviewed for impairment

whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Leases

The Company accounts for its leases in accordance with ASC 842, Leases, and recognizes a lease liability and right-of-

use (“ROU”) asset in the condensed consolidated balance sheets for contracts that it determines are leases or contain a lease.

The Company’s leases primarily consist of operating leases for office space in various countries around the world. The

Company also has operating leases for office equipment and vehicles, which are not significant. The Company does not

separate non-lease components from lease components for its office space and equipment operating leases and instead accounts

for each separate lease component and its associated non-lease component as a single lease component. ROU assets represent

the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to

make lease payments arising from the leases. The Company’s ROU assets and lease liabilities are recognized at lease

commencement based on the present value of lease payments over the lease term. Lease ROU assets include initial direct costs

incurred by the Company and are presented net of deferred rent and lease incentives. Absent an implicit interest rate in the

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)

lease, the Company uses its incremental borrowing rate, adjusted for the effects of collateralization, based on the information

available at commencement in determining the present value of lease payments. The Company’s lease terms may include

options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. Lease

expense for lease payments is recognized on a straight-line basis over the lease term. Lease ROU assets are reviewed for

impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

The Company does not recognize a lease liability or ROU asset on the balance sheet for short-term leases. Instead, the

Company recognizes short-term lease payments as an expense on a straight-line basis over the lease term. A short-term lease is

defined as a lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to

purchase the underlying asset that the lessee is reasonably certain to exercise. When determining whether a lease qualifies as a

short-term lease, the Company evaluates the lease term and the purchase option in the same manner as all other leases.

In 2026, the Company entered into an operating lease agreement for office space in New York City, which has a term of

10 years and is expected to commence during 2028. The total contractual minimum lease payment over the term of the lease is

approximately $255 million. The related ROU asset and operating lease liability will be recorded on the lease commencement

date and are not reflected on the Company’s condensed consolidated balance sheets as of June 30, 2026.

Intangible Assets and Goodwill

The Company’s intangible assets consist of acquired contractual rights to earn future fee income, including management

and advisory fees, customer relationships, and acquired trademarks. Finite-lived intangible assets are amortized over their

estimated useful lives, which range from four to eight years, and are reviewed for impairment whenever events or changes in

circumstances indicate that the carrying amount of the asset may not be recoverable. Intangible asset amortization expense was

$32.8 million for both the three months ended June 30, 2026 and 2025, and $65.6 million and $65.4 million for the six months

ended June 30, 2026 and 2025, respectively, and is included in general, administrative, and other expenses in the condensed

consolidated statements of operations. Certain intangible assets are held by entities of which the functional currency is not the

U.S. dollar. Any corresponding currency translation is recorded in accumulated other comprehensive income (loss).

Goodwill represents the excess of cost over the identifiable net assets of businesses acquired and is recorded in the

functional currency of the acquired entity. Goodwill is recognized as an asset and is reviewed for impairment annually as of

October 1 and between annual tests when events and circumstances indicate that impairment may have occurred.

The Company recorded no impairment losses of intangible assets or goodwill during the three and six months ended June

30, 2026 and 2025.

Deferred Revenue

Deferred revenue represents management fees and other revenue received prior to the balance sheet date, which has not

yet been earned. Deferred revenue also includes transaction and portfolio advisory fees received by the Company that are

required to offset fund management fees pursuant to the related fund agreements.

Accumulated Other Comprehensive Income (Loss)

The Company’s accumulated other comprehensive income (loss) comprise foreign currency translation adjustments and

gains and losses on defined benefit plans sponsored by AlpInvest. The components of accumulated other comprehensive

income (loss) as of June 30, 2026 and December 31, 2025 were as follows:


	As of
	June 30, 2026	December 31, 2025
	(Dollars in millions)
Currency translation adjustments	$(195.2)	$(172.7)
Unrealized gains on defined benefit plans	2.6	2.5
Total	$(192.6)	$(170.2)

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Foreign Currency Translation

Non-U.S. dollar denominated assets and liabilities are remeasured at period-end rates of exchange, and the condensed

consolidated statements of operations are remeasured at rates of exchange in effect throughout the period. Foreign currency

gains (losses) resulting from transactions outside of the functional currency of an entity of $(1.1) million and $(20.9) million for

the three months ended June 30, 2026 and 2025, respectively, and $2.9 million and $(25.1) million for the six months ended

June 30, 2026 and 2025, respectively, are included in general, administrative and other expenses in the condensed consolidated

statements of operations.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial

Accounting Standards Board (“FASB”). ASUs not listed below were assessed and either determined to be not applicable or

expected to have minimal impact on the Company’s condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires

disaggregated disclosures of certain categories of expenses on an annual and interim basis including employee compensation,

depreciation, and intangible asset amortization for each income statement line item that contains those expenses. The guidance

is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The

Company is currently evaluating the impact of adopting this guidance on its condensed consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software,

which clarifies the threshold for capitalizing internal-use software costs to be based on when (i) management has authorized and

committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used

to perform the function intended. The guidance is effective for annual periods beginning after December 15, 2027 and interim

periods within those annual reporting periods. Early adoption is permitted, and the amendments in this update may be applied

on a prospective, retrospective or modified basis. The Company is currently evaluating the impact of adopting this guidance on

its condensed consolidated financial statements.

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 June 30, 2026:


(Dollars in millions)	Level I	Level II	Level III	Total
Assets
Investments of Consolidated Funds(1):
Equity securities(2)	$68.3	$22.2	$981.8	$1,072.3
Bonds	—	—	720.7	720.7
Loans	—	—	9,502.2	9,502.2
	68.3	22.2	11,204.7	11,295.2
Investments in CLOs and other:
Investments in CLOs	—	—	321.0	321.0
Other investments(3)	83.5	20.2	20.0	123.7
	83.5	20.2	341.0	444.7
Foreign currency forward contracts	—	1.4	—	1.4
Subtotal	$151.8	$43.8	$11,545.7	$11,741.3
Investments measured at net asset value				2,033.3
Total				$13,774.6
Liabilities
Loans payable of Consolidated Funds(4)(5)	$—	$—	$9,837.2	$9,837.2
Foreign currency forward contracts	—	2.3	—	2.3
Total	$—	$2.3	$9,837.2	$9,839.5

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

(1)This balance excludes $2.0 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 $844.3 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 June 30, 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 $98.1 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 $925.7 million of senior notes measured at amortized cost and a

$41.5 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 $939.9 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.

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The changes in financial instruments measured at fair value for which the Company has used Level III inputs to

determine fair value are as follows (Dollars in millions):


	Financial Assets
	Three Months Ended June 30, 2026
	Investments of Consolidated Funds
	Equity securities	Bonds	Loans	Investments in CLOs	Other investments	Total
Balance, beginning of period	$875.5	$756.2	$10,214.7	$309.9	$91.0	$12,247.3
Initial deconsolidation of funds(1)	(27.3)	(23.4)	(1,157.1)	14.7	—	(1,193.1)
Purchases	296.4	108.6	2,360.0	21.8	12.5	2,799.3
Sales and distributions	(61.6)	(115.4)	(1,649.1)	(23.5)	(84.1)	(1,933.7)
Settlements	—	—	(336.5)	—	—	(336.5)
Realized and unrealized gains (losses), net
Included in earnings	(101.2)	1.3	106.3	(1.3)	0.6	5.7
Included in other comprehensive income	—	(6.6)	(36.1)	(0.6)	—	(43.3)
Balance, end of period	$981.8	$720.7	$9,502.2	$321.0	$20.0	$11,545.7
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date	$(101.9)	$2.1	$93.5	$2.0	$0.7	$(3.6)
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date	$—	$(5.9)	$(35.7)	$(0.6)	$—	$(42.2)

	Financial Assets
	Six Months Ended June 30, 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/deconsolidation of funds(2)	(27.2)	(5.9)	(795.4)	14.7	—	(813.8)
Purchases	341.9	269.9	5,002.9	22.8	12.5	5,650.0
Sales and distributions	(322.7)	(209.8)	(2,988.8)	(57.7)	(86.9)	(3,665.9)
Settlements	—	—	(775.7)	—	—	(775.7)
Realized and unrealized gains (losses), net
Included in earnings	(105.0)	(8.5)	(99.2)	(2.1)	(0.2)	(215.0)
Included in other comprehensive income	—	(16.2)	(91.4)	(5.7)	—	(113.3)
Balance, end of period	$981.8	$720.7	$9,502.2	$321.0	$20.0	$11,545.7
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date	$(110.9)	$(8.4)	$(67.3)	$(1.9)	$—	$(188.5)
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date	$—	$(11.9)	$(79.4)	$(5.9)	$—	$(97.2)

(1)As a result of the deconsolidation of five funds during the three months ended June 30, 2026.

(2)As a result of the initial consolidation of one fund and deconsolidation of five funds during the six months ended June 30, 2026.

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	Financial Assets
	Three Months Ended June 30, 2025
	Investments of Consolidated Funds
	Equity securities	Bonds	Loans	Investments in CLOs	Other investments	Total
Balance, beginning of period	$821.7	$495.8	$7,632.6	$365.5	$63.7	$9,379.3
Deconsolidation of funds(1)	—	(76.6)	(424.0)	23.2	—	(477.4)
Purchases	74.6	226.8	1,293.4	2.1	22.2	1,619.1
Sales and distributions	(19.5)	(111.7)	(386.5)	(45.6)	(20.0)	(583.3)
Settlements	—	(0.6)	(350.2)	—	—	(350.8)
Realized and unrealized gains (losses), net
Included in earnings	33.3	(0.6)	(50.0)	1.8	0.4	(15.1)
Included in other comprehensive income	—	36.6	249.4	19.9	—	305.9
Balance, end of period	$910.1	$569.7	$7,964.7	$366.9	$66.3	$9,877.7
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date	$32.8	$(1.3)	$(52.4)	$4.3	$0.6	$(16.0)
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date	$—	$27.9	$199.9	$18.9	$—	$246.7

	Financial Assets
	Six Months Ended June 30, 2025
	Investments of Consolidated Funds
	Equity securities	Bonds	Loans	Investments in CLOs	Other investments	Total
Balance, beginning of period	$572.0	$465.1	$6,431.4	$378.9	$85.1	$7,932.5
Initial consolidation/deconsolidation of funds(2)	—	(52.6)	(256.1)	24.2	—	(284.5)
Transfer out related to the Exchange(3)	—	—	—	—	(50.4)	(50.4)
Purchases	327.8	283.2	3,518.7	3.2	60.0	4,192.9
Sales and distributions	(28.5)	(184.3)	(1,330.4)	(81.8)	(31.2)	(1,656.2)
Settlements	—	(0.6)	(709.1)	—	—	(709.7)
Realized and unrealized gains (losses), net
Included in earnings	38.8	3.9	(60.9)	13.8	2.8	(1.6)
Included in other comprehensive income	—	55.0	371.1	28.6	—	454.7
Balance, end of period	$910.1	$569.7	$7,964.7	$366.9	$66.3	$9,877.7
Changes in unrealized gains (losses) included in earnings related to financial assets still held at the reporting date	$37.3	$1.4	$(54.2)	$14.5	$5.7	$4.7
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date	$—	$34.5	$266.8	$28.6	$—	$329.9

(1)As a result of the deconsolidation of one fund during the three months ended June 30, 2025.

(2)As a result of the initial consolidation of one fund and deconsolidation of two funds during the six months ended June 30, 2025.

(3)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.

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 June 30,
	2026	2025
Balance, beginning of period	$10,156.7	$7,680.3
Initial deconsolidation of funds(1)	(793.8)	(473.9)
Borrowings	2,460.1	1,430.2
Paydowns	(1,152.7)	(599.5)
Sales	(912.9)	(346.7)
Realized and unrealized (gains) losses, net
Included in earnings	120.5	(40.5)
Included in other comprehensive income	(40.7)	273.1
Balance, end of period	$9,837.2	$7,923.0
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date	$97.7	$(17.3)
Changes in unrealized (gains) losses included in other comprehensive income related to financial liabilities still held at the reporting date	$(41.7)	$262.5

	Financial Liabilities
	Loans Payable of Consolidated Funds
	Six Months Ended June 30,
	2026	2025
Balance, beginning of period	$9,423.1	$6,809.1
Initial consolidation/deconsolidation of funds(2)	(405.4)	(280.1)
Borrowings	4,107.2	2,212.3
Paydowns	(1,639.6)	(841.6)
Sales	(1,482.3)	(353.2)
Realized and unrealized (gains) losses, net
Included in earnings	(63.7)	(39.3)
Included in other comprehensive income	(102.1)	415.8
Balance, end of period	$9,837.2	$7,923.0
Changes in unrealized (gains) losses included in earnings related to financial liabilities still held at the reporting date	$(30.1)	$(5.0)
Changes in unrealized (gains) losses included in other comprehensive income related to financial liabilities still held at the reporting date	$(114.1)	$395.8

(1)As a result of the deconsolidation of four funds during the three months ended June 30, 2026, and the deconsolidation of one

fund during the three months ended June 30, 2025.

(2)As a result of the initial consolidation of one fund and the deconsolidation of four funds during the six months ended June

30, 2026, and the initial consolidation of one fund and deconsolidation of two funds during the six months ended June 30,

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.

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 June 30, 2026:


	Fair Value at	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)	Impact to Valuation from Increase in Input
(Dollars in millions)	June 30, 2026	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)	Impact to Valuation from Increase in Input
Assets
Investments of Consolidated Funds:
Equity securities	$1.7	Consensus Pricing	Indicative Quotes ($ per share)	0.00 - 547.56 (527.79)	Higher
	534.5	Discounted Cash Flow	Discount Rates	10% - 19% (10%)	Lower
			Terminal Growth Rate	0% - 11% (3%)	Higher
		Comparable Multiple	EBITDA Multiple	2.8x - 22.8x (13.0x)	Higher
			Revenue Multiple	2.8x - 8.6x (6.1x)	Higher
	211.0	Discounted Cash Flow	Discount Rates	7% - 24% (12%)	Lower
			Constant Prepayment Rate	6% - 16% (8%)	Lower
			Constant Default Rate	0% - 5% (1%)	Lower
			Recovery Rate	20% - 40% (30%)	Higher
	234.6	Other(1)	N/A	N/A	N/A

Bonds	720.7	Consensus Pricing	Indicative Quotes (% of Par)	72 - 101 (96)	Higher
Loans	9,261.4	Consensus Pricing	Indicative Quotes (% of Par)	0 - 102 (97)	Higher
	239.1	Discounted Cash Flow	Discount Rates	8% - 20% (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
	11,204.7
Investments in CLOs:
Senior secured notes	280.4	Consensus Pricing with Discounted Cash Flow	Indicative Quotes (% of Par)	81 - 102 (100)	Higher
			Discount Margins (Basis Points)	85 - 1,400 (211)	Lower
			Default Rates	2% - 2% (2%)	Lower
			Recovery Rates	60% - 60% (60%)	Higher
Subordinated notes and preferred shares	40.6	Consensus Pricing with Discounted Cash Flow	Indicative Quotes (% of Par)	1 - 88 (32)	Higher
			Discount Rates	8% - 12% (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
	12.5	Other(1)	N/A	N/A	N/A
Total	$11,545.7
Liabilities
Loans payable of Consolidat ed Funds:
Senior secured notes	$9,546.8	Other(2)	N/A	N/A	N/A
Subordinated notes and preferred shares	290.4	Consensus Pricing with Discounted Cash Flow	Indicative Quotes (% of Par)	6 - 88 (61)	Higher
			Discount Rates	8% - 15% (11%)	Lower
			Default Rates	1% - 2% (2%)	Lower
			Recovery Rates	60% - 60% (60%)	Higher

Total	$9,837.2

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	Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)	Impact to Valuation from Increase in Input
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

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

Investments consist of the following:


	As of
	June 30, 2026	December 31, 2025
	(Dollars in millions)
Accrued performance allocations	$6,608.2	$7,620.3
Principal equity method investments, excluding performance allocations	3,068.8	2,879.5
Principal investments in CLOs	321.0	349.0
Other investments	233.6	303.9
Total	$10,231.6	$11,152.7

Accrued Performance Allocations

The components of accrued performance allocations are as follows:


	As of
	June 30, 2026	December 31, 2025
	(Dollars in millions)
Global Private Equity	$3,996.8	$5,021.1
Global Credit	793.4	724.6
Carlyle AlpInvest	1,818.0	1,874.6
Total	$6,608.2	$7,620.3

Approximately 12% and 24% of accrued performance allocations at June 30, 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, as well as the portion attributable to non-controlling interests.

The components of the accrued giveback obligations are as follows:


	As of
	June 30, 2026	December 31, 2025
	(Dollars in millions)
Global Private Equity	$(66.9)	$(47.3)
Global Credit	(25.5)	(25.5)
Total	$(92.4)	$(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

Table of Contents

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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:


	As of
	June 30, 2026	December 31, 2025
	(Dollars in millions)
Global Private Equity(1)	$1,481.5	$1,384.4
Global Credit(2)	1,178.9	1,151.9
Carlyle AlpInvest	408.4	343.2
Total	$3,068.8	$2,879.5

(1)The balance includes $679.4 million and $616.0 million as of June 30, 2026 and December 31, 2025, respectively, related to the

Company’s equity method investments in NGP.

(2)The balance includes $732.7 million and $722.4 million as of June 30, 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

June 30, 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 $732.7 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 June 30, 2026, Fortitude, its

affiliates and certain Fortitude reinsurance counterparties have committed approximately $26.3 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 profitability.

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 June 30, 2026 and December 31, 2025 are as follows:


	As of
	June 30, 2026	December 31, 2025
	(Dollars in millions)
Investment in NGP Management	$230.7	$247.4
Investments in NGP general partners - accrued performance allocations	401.2	326.2
Principal investments in NGP funds	47.5	42.4
Total investments in NGP	$679.4	$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 six months ended June 30, 2025 included a $92.5 million impairment of the Company’s

Table of Contents

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

investment in NGP Management and a $38.0 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

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, expenses associated with the compensatory elements of the investment, and any impairment charges.

The net investment income (loss) recognized in the Company’s condensed consolidated statements of operations for the three

and six months ended June 30, 2026 and 2025 related to its investment in NGP Management were as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Management fee related revenues from NGP Management	$14.5	$15.4	$28.6	$31.5
Expenses related to the investment in NGP Management	(2.7)	(3.6)	(5.6)	(7.2)
Amortization of basis differences and impairment of investment in NGP Management	(8.4)	(8.8)	(17.2)	(101.3)
Net investment income (loss) from NGP Management	$3.4	$3.0	$5.8	$(77.0)

Management fee related revenues from NGP Management were primarily driven by NGP XII, NGP XIII, and NGP XI

during the three and six months ended June 30, 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 $35.8 million and $27.6 million for the

three months ended June 30, 2026 and 2025, respectively, and $82.3 million and $(0.9) million for the six months ended June

30, 2026 and 2025, respectively, in its condensed consolidated statements of operations. The six months ended June 30, 2025

included a $38.0 million reduction related to the Restructuring.

Principal Investments in NGP Funds. The Company also holds principal investments in the NGP Carry Funds. The

Company recognized net investment earnings (losses) related to these investments in principal investment income (loss) in its

condensed consolidated statements of operations of $4.8 million and $4.2 million for the three months ended June 30, 2026 and

2025, respectively, and $11.2 million and $5.5 million for the six months ended June 30, 2026 and 2025, respectively.

Principal Investments in CLOs and Other Investments

Principal investments in CLOs as of June 30, 2026 and December 31, 2025 were $321.0 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 June 30, 2026 and December 31, 2025,

other investments included the Company’s investment in common shares of CGBD at fair value of $32.8 million and

$37.5 million, respectively.

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 June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Performance allocations
Realized	$307.0	$116.7	$357.4	$449.6
Unrealized	(262.3)	522.1	(993.8)	412.1
	44.7	638.8	(636.4)	861.7
Principal investment income (loss) from equity method investments (excluding performance allocations)
Realized	28.1	178.3	50.8	148.9
Unrealized	42.6	(122.9)	96.2	(156.2)
	70.7	55.4	147.0	(7.3)
Principal investment income (loss) from investments in CLOs and other investments
Realized	0.2	1.6	3.8	(0.4)
Unrealized	(1.7)	(1.8)	(17.2)	(0.2)
	(1.5)	(0.2)	(13.4)	(0.6)
Total	$113.9	$694.0	$(502.8)	$853.8

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


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Global Private Equity	$(101.8)	$476.9	$(799.9)	$561.9
Global Credit	102.6	50.8	139.3	129.8
Carlyle AlpInvest	43.9	111.1	24.2	170.0
Total	$44.7	$638.8	$(636.4)	$861.7

The following tables summarize the funds that are the primary drivers of performance allocations for the three and six

months ended June 30, 2026 and 2025, as well as the total revenue recognized, including performance allocations, fund

management fees and principal investment income:


Three Months Ended June 30, 2026			Six Months Ended June 30, 2026
(Dollars in millions)			(Dollars in millions)
Global Private Equity	Carlyle Partners VII, L.P.	$(264.7)	Global Private Equity	Carlyle Partners VII, L.P.	$(987.8)


Three Months Ended June 30, 2025			Six Months Ended June 30, 2025
(Dollars in millions)			(Dollars in millions)
Global Private Equity	Carlyle Asia Partners V, L.P.	$287.6	Global Private Equity	Carlyle Partners VII, L.P.	$447.7
Global Private Equity	Carlyle Partners VII, L.P.	213.7

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 June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Global Private Equity	$65.4	$43.2	$119.5	$(52.4)
Global Credit	3.2	(0.5)	15.1	18.7
Carlyle AlpInvest	2.1	12.7	12.4	26.4
Total	$70.7	$55.4	$147.0	$(7.3)

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 six months ended June 30, 2026, the Company became the primary beneficiary of three additional

CLOs. Investments in Consolidated Funds as of June 30, 2026 and December 31, 2025 also included $844.3 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 June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Interest income from investments	$178.0	$142.5	$339.8	$265.5
Other income	14.5	20.5	32.4	30.9
Total	$192.5	$163.0	$372.2	$296.4

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 June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Gains (losses) from investments of Consolidated Funds	$146.6	$4.6	$(102.0)	$11.6
Gains (losses) from liabilities of consolidated CLOs	(120.4)	42.2	63.8	41.3
Total	$26.2	$46.8	$(38.2)	$52.9

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

(including consolidated CLOs):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Net realized gains (losses)	$(42.0)	$(24.5)	$(41.6)	$(24.9)
Net change in unrealized gains (losses)	188.6	29.1	(60.4)	36.5
Total	$146.6	$4.6	$(102.0)	$11.6

5. Borrowings

The Company borrows and enters into credit agreements for its general operating and investment purposes. The

Company’s debt obligations consist of the following:


	June 30, 2026		December 31, 2025
	Borrowing Outstanding	Carrying Value	Borrowing Outstanding	Carrying Value
	(Dollars in millions)
CLO Borrowings	$351.1	$350.3	$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	791.6	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	486.1	500.0	485.9
Total debt obligations	$3,026.1	$2,998.8	$3,025.1	$2,997.0

Senior Credit Facility

The senior credit facility consists of a $1.0 billion revolving credit facility, which was amended in May 2025 to extend

the maturity date from April 29, 2027 to May 29, 2030. The Company is required to maintain management fee-earning assets of

at least $156.9 billion and a total leverage ratio of less than 4.0 to 1.0, in each case, tested on a quarterly basis. 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 June 30, 2026, the interest rate was 4.75%). The Company made no borrowings under the

revolving credit facility during the three and six months ended June 30, 2026 and 2025, and there was no amount outstanding as

of June 30, 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 the Company intends to amend to extend the maturity date from August 19, 2026. The

Company’s borrowing capacity is subject to the ability of the financial institutions in the banking syndicate to fulfill their

respective obligations under the Global Credit Revolving Credit Facility. Principal amounts outstanding accrue interest at

applicable SOFR or Eurocurrency rates plus an applicable margin of 2.00% or an alternate base rate plus an applicable margin

of 1.00%. During the three and six months ended June 30, 2026 and 2025, the Company made no borrowings under the Global

Credit Revolving Credit Facility. As of June 30, 2026, there was no borrowing outstanding under the Global Credit Revolving

Credit Facility.

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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 total outstanding CLO borrowings as of June 30, 2026 and December 31, 2025 (Dollars in millions):


	As of June 30, 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	$351.1	4.87%	10.50	$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 June 30, 2026 and 2025 was $3.8 million and $4.0 million, respectively. Interest expense for the six

months ended June 30, 2026 and 2025 was $8.0 million and $7.8 million, respectively. The fair value of the outstanding

balance of the CLO term loans at June 30, 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 CLOs managed by the Company. Each transaction entered into under the CLO

Financing Facilities bears interest at a rate based on the weighted average effective interest rate of each class of securities that

have been sold plus a spread agreed upon by the parties. As of June 30, 2026, $346.1 million was outstanding under the CLO

Financing Facilities, which includes €283.1 million ($323.1 million) in borrowings made in Euro. 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.

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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):


				Interest Expense
		Fair Value (1) As of		Three Months Ended June 30,		Six Months Ended June 30,
	Aggregate Principal Amount	June 30, 2026	December 31, 2025	2026	2025	2026	2025
3.500% Senior Notes Due 9/19/2029 (2)	$425.0	$412.4	$417.8	$3.9	$3.9	$7.7	$7.7
5.050% Senior Notes Due 9/19/2035 (3)	800.0	777.8	800.9	10.4	—	20.7	—
5.625% Senior Notes Due 3/30/2043 (4)	600.0	584.4	600.7	8.5	8.5	16.9	16.9
5.650% Senior Notes Due 9/15/2048 (5)	350.0	339.3	347.5	5.0	5.0	10.0	10.0
				$27.8	$17.4	$55.3	$34.6

(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, prior to their stated maturity, at a redemption price equal to their principal amount plus any accrued and unpaid interest to,

but excluding, the redemption date. If interest due on the Subordinated Notes is deemed to no longer be deductible in the U.S.,

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 redemption date.

As of June 30, 2026 and December 31, 2025, the fair value of the Subordinated Notes was $326.2 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 June 30, 2026 and 2025, the Company incurred $5.9 million of interest

expense on the Subordinated Notes. For both the six months ended June 30, 2026 and 2025, the Company incurred $11.8

million of interest expense on the Subordinated Notes.

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Debt Covenants

The Company is subject to various financial and 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 June 30, 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 June 30, 2026 and December 31, 2025, the following borrowings were outstanding (Dollars in millions):


	As of June 30, 2026
	Borrowing Outstanding	Fair Value	Weighted Average Interest Rate		Weighted Average Remaining Maturity in Years
Senior secured notes(1)	$10,480.2	$10,472.5	5.07%		11.57
Subordinated notes	375.7	290.4	N/A	(3)	10.15
Revolving credit facilities(2)	41.5	41.5	6.57%		2.93
Total	$10,897.4	$10,804.4


	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 June 30, 2026 includes $937.5 million of senior secured notes that are measured at amortized cost,

which approximates fair value. Fair Value as of June 30, 2026 and December 31, 2025 includes the carrying value of these notes of

$925.7 million and $939.9 million, respectively. These senior secured notes were classified as Level III within the fair value

hierarchy.

(2)Fair Value as of June 30, 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. The Company is not liable for any loans payable of the CLOs. As of June 30, 2026 and December 31, 2025,

total assets of the CLOs were $10.9 billion and $11.0 billion, respectively.

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

6. Accrued Compensation and Benefits

Accrued compensation and benefits consist of the following:


	As of
	June 30, 2026	December 31, 2025
	(Dollars in millions)
Accrued performance allocations and incentive fee related compensation	$4,545.5	$5,111.8
Accrued bonuses	166.8	294.5
Realized performance allocations and incentive fee related compensation not yet paid	150.2	315.1
Other	145.1	128.0
Total	$5,007.6	$5,849.4

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


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Realized	$230.7	$189.4	$288.9	$442.3
Unrealized	(137.1)	254.2	(563.2)	172.7
Total	$93.6	$443.6	$(274.3)	$615.0

7. Commitments and Contingencies

Capital Commitments

The Company and its unconsolidated affiliates have unfunded commitments totaling $4.3 billion as of June 30, 2026, of

which approximately $3.4 billion is subscribed individually by senior Carlyle professionals, advisors and other professionals. In

addition to these unfunded commitments, the Company may from time to time exercise its right to purchase additional interests

in its investment funds that become available in the ordinary course of their operations.

Under the Carlyle Global Capital Markets platform, certain subsidiaries of the Company may act as an underwriter,

syndicator or placement agent for security offerings and loan originations. The Company earns fees in connection with these

activities and bears the risk of the sale of such securities and placement of such loans, which may be longer dated. As of

June 30, 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 June 30, 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 June 30, 2026. The guarantee will remain effective for the term of the credit facility,

including any extensions thereof, unless terminated earlier in accordance with the terms of the credit facility. The Company has

not funded any amounts under this agreement to date and believes the likelihood of any material funding to be remote.

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

As of June 30, 2026, certain consolidated subsidiaries of the Company are the guarantors of a credit agreement for a fund

in the Carlyle AlpInvest segment, which is scheduled to expire on December 16, 2026. The maximum potential amount to be

funded under this guarantee is $30.0 million. The outstanding balances under the credit agreement are collateralized by the

investments in the fund, and the Company believes the likelihood of any material funding under this guarantee to be remote.

Additionally, on July 1, 2026, the Company entered into an agreement with a financial institution pursuant to which it

provided the guarantee for an unsecured revolving credit facility of an investment fund that is actively fundraising in the Global

Private Equity segment. The maximum aggregate amount available under the facility is $400.0 million. This facility matures in

April 2027 with the possibility to extend to July 2027. The Company has not funded any amounts under this guarantee to date

and believes the likelihood of any material funding to be remote.

Contingent Obligations

Giveback

A liability for potential repayment of previously received performance allocations of $92.4 million at June 30, 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 June 30, 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 $39.4

million and $24.2 million of unbilled receivables from former and current employees and senior Carlyle professionals as of

June 30, 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, $154.7

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 June 30, 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 June 30, 2026, approximately $39.5 million of the

Company’s accrued giveback obligation is the responsibility of various current and former senior Carlyle professionals and

other former limited partners of the Carlyle Holdings partnerships, and the net accrued giveback obligation attributable to the

Company is $52.9 million.

If, at June 30, 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

$1.6 billion, on an after-tax basis where applicable, of which approximately $0.6 billion would be the responsibility of current

and former senior Carlyle professionals.

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 subscribed for a $500.0 million

commitment in the investment fund (the “Warehoused Interests”) through December 31, 2026. As of June 30, 2026,

$290.2 million of Warehoused Interests have been sold to other investors, and the remaining $209.8 million continues to be

held by the third party. 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 June 30, 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

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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, which remains pending. The Company intends to

continue 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

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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 ($19.4 million as of June 30, 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

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.

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

8. Related Party Transactions

Due from Affiliates and Other Receivables, Net

The Company had the following due from affiliates and other receivables at June 30, 2026 and December 31, 2025:


	As of
	June 30, 2026	December 31, 2025
	(Dollars in millions)
Accrued incentive fees	$96.4	$53.6
Unbilled receivable for giveback obligations from current and former employees	39.4	24.2
Notes receivable and accrued interest from affiliates	50.3	34.0
Management fee receivable, net	244.5	246.0
Reimbursable expenses and other receivables from unconsolidated funds and affiliates, net(1)	750.6	477.0
Total	$1,181.2	$834.8

(1)As of June 30, 2026, this balance included $132 million of reimbursable expenses related to a transaction in the Global Private Equity

segment, which were received in the third quarter.

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 June 30, 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 June 30, 2026 and December 31, 2025 also include interest-bearing

loans of $38.9 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 June 30, 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.

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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 June 30, 2026 and December 31, 2025:


	As of
	June 30, 2026	December 31, 2025
	(Dollars in millions)
Due to affiliates of Consolidated Funds	$7.4	$6.1
Due to non-consolidated affiliates	144.4	102.0
Amounts owed under the tax receivable agreement	63.9	71.8
Other	27.3	24.0
Total	$243.0	$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 June 30, 2026 and 2025, the Company incurred fees for

the use of these aircraft of $0.6 million and $0.6 million, respectively. For the six months ended June 30, 2026 and 2025, the

Company incurred fees for the use of these aircraft of $0.9 million and $1.0 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-founders.

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 of a

realized giveback obligation. 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.

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)

9. Income Taxes


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Provision for income taxes	$49.0	$112.5	$11.9	$124.9

Effective tax rate	18%	26%	13%	20%

The effective tax rate for the three months ended June 30, 2026 and 2025 primarily comprised the 21% U.S. federal

corporate income tax rate, the impact of U.S. state and foreign income taxes, and disallowed executive compensation, offset by

non-controlling interest. The effective tax rate for the six months ended June 30, 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 six months ended June 30, 2026, the effective tax rate also included the

impact of a one-time tax expense related to a change in the tax classification of a consolidated subsidiary.

As of June 30, 2026 and December 31, 2025, the Company had federal, state, local and foreign taxes payable of

$78.8 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 June 30, 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 2025. 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.

10. Non-controlling Interests in Consolidated Entities

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


	As of
	June 30, 2026	December 31, 2025
	(Dollars in millions)
Non-Carlyle interests in Consolidated Funds	$1,461.5	$861.5
Non-Carlyle interests in majority-owned subsidiaries	442.9	433.9
Non-controlling interests in carried interest and giveback obligations	66.3	0.2
Non-controlling interests in consolidated entities	$1,970.7	$1,295.6

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Non-Carlyle interests in Consolidated Funds	$59.3	$13.9	$56.8	$21.9
Non-Carlyle interests in majority-owned subsidiaries	42.4	(5.3)	41.6	15.3
Non-controlling interests in carried interest and giveback obligations	(14.0)	(0.2)	(20.4)	(0.2)
Non-controlling interests in income of consolidated entities	$87.7	$8.4	$78.0	$37.0

11. Earnings Per Common Share

Basic and diluted net income per common share are calculated as follows:


	Three Months Ended June 30, 2026		Six Months Ended June 30, 2026
	Basic	Diluted	Basic	Diluted
Net income attributable to common shares	$137,100,000	$137,100,000	$4,900,000	$4,900,000
Weighted-average common shares outstanding	357,772,352	367,301,542	358,478,614	368,081,014
Net income per common share	$0.38	$0.37	$0.01	$0.01


	Three Months Ended June 30, 2025		Six Months Ended June 30, 2025
	Basic	Diluted	Basic	Diluted
Net income attributable to common shares	$319,700,000	$319,700,000	$449,700,000	$449,700,000
Weighted-average common shares outstanding	360,359,241	366,967,197	359,914,229	366,654,517
Net income per common share	$0.89	$0.87	$1.25	$1.23

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


	Three Months Ended June 30, 2026		Six Months Ended June 30, 2026
	Basic	Diluted	Basic	Diluted
The Carlyle Group Inc. weighted-average common shares outstanding	357,772,352	357,772,352	358,478,614	358,478,614
Unvested restricted stock units	—	4,956,997	—	5,030,207
Issuable common shares and performance-vesting restricted stock units	—	4,572,193	—	4,572,193
Weighted-average common shares outstanding	357,772,352	367,301,542	358,478,614	368,081,014


	Three Months Ended June 30, 2025		Six Months Ended June 30, 2025
	Basic	Diluted	Basic	Diluted
The Carlyle Group Inc. weighted-average common shares outstanding	360,359,241	360,359,241	359,914,229	359,914,229
Unvested restricted stock units	—	5,917,596	—	6,049,928
Issuable common shares and performance-vesting restricted stock units	—	690,360	—	690,360
Weighted-average common shares outstanding	360,359,241	366,967,197	359,914,229	366,654,517

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.

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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 June 30,

2026, $1.6 billion of repurchase capacity remained under the program, which reflects both common shares repurchased and

shares retired in connection with the net share settlement of equity-based awards. The following table presents the Company’s

shares that have been repurchased or retired as a result of net share settlement of equity-based awards during the three and six

months ended June 30, 2026 and 2025. Dollar amounts exclude the impact of excise taxes.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	Shares	$	Shares	$	Shares	$	Shares	$
	(Dollars in millions, except share data)
Shares repurchased	6,585,389	$300.0	2,173,966	$100.0	7,917,242	$365.0	2,667,747	$125.0
Shares retired in connection with the net share settlement of equity-based awards	82,213	4.1	92,001	3.6	2,552,050	143.9	2,927,355	155.1
Total	6,667,602	$304.1	2,265,967	$103.6	10,469,292	$508.9	5,595,102	$280.1

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	$125.7
August 17, 2026	August 26, 2026	0.35	124.7
Total 2026 Dividend Year (through Q2 2026)		$0.70	$250.4

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.

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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 June 3, 2026) 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 77,800,000 shares of

common stock are authorized for the grant of awards under the Equity Incentive Plan, of which a total of 35,738,646 shares of

the Company’s common stock remain available for grant as of June 30, 2026.

A summary of the status of the Company’s unvested equity-based awards as of June 30, 2026 and a summary of changes

for the six months ended June 30, 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)	68,423	$48.81	6,723,596	$57.43	126,507	$61.32
Vested (2)	5,189,824	$26.17	1,294,483	$47.08	—	$—
Forfeited	—	$—	136,536	$48.75	—	$—
Balance, June 30, 2026	9,093,167	$30.18	16,631,611	$51.44	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 2,552,050 shares that were retired in connection with the net share settlement of equity-based awards. The Company paid

$143.9 million of taxes related to the net share settlement of equity-based awards during the six months ended June 30, 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 $116.0 million

and $92.9 million for the three months ended June 30, 2026 and 2025, respectively, with $15.5 million and $18.1 million of

corresponding deferred tax benefits, respectively. The Company recorded equity-based compensation expense, net of

forfeitures, for restricted stock units of $235.8 million and $196.4 million for the six months ended June 30, 2026 and 2025,

respectively, with $33.1 million and $36.7 million of corresponding deferred tax benefits, respectively. As of June 30, 2026, the

total unrecognized equity-based compensation expense related to unvested restricted stock units was $658.7 million, which is

expected to be recognized over a weighted-average term of 2.4 years.

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

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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.

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The following tables present the financial data for the Company’s three reportable segments for the three and six months

ended June 30, 2026:


	Three Months Ended June 30, 2026
	Global Private Equity	Global Credit	Carlyle AlpInvest	Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$283.4	$148.6	$128.1	$560.1
Portfolio advisory and transaction fees, net and other	17.9	92.6	—	110.5
Fee related performance revenues	3.0	53.6	32.1	88.7
Total fund level fee revenues	304.3	294.8	160.2	759.3
Realized performance revenues	251.5	54.2	9.1	314.8
Realized principal investment income	5.6	6.6	10.4	22.6
Interest income	5.3	7.8	2.4	15.5
Total revenues	566.7	363.4	182.1	1,112.2
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits	108.3	111.9	46.1	266.3
Realized performance revenues related compensation	159.0	33.5	7.7	200.2
Total compensation and benefits	267.3	145.4	53.8	466.5
General, administrative, and other indirect expenses(1)	54.5	40.5	25.1	120.1
Depreciation and amortization expense	7.9	4.8	2.5	15.2
Interest expense	18.5	14.7	4.9	38.1
Total expenses	348.2	205.4	86.3	639.9
(=) Distributable Earnings	$218.5	$158.0	$95.8	$472.3
(-) Realized net performance revenues	92.5	20.7	1.4	114.6
(-) Realized principal investment income	5.6	6.6	10.4	22.6
(+) Net interest	13.2	6.9	2.5	22.6
(=) Fee Related Earnings	$133.6	$137.6	$86.5	$357.7

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	Six Months Ended June 30, 2026
	Global Private Equity	Global Credit	Carlyle AlpInvest	Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$567.7	$295.9	$241.0	$1,104.6
Portfolio advisory and transaction fees, net and other	24.7	139.8	0.1	164.6
Fee related performance revenues	5.1	85.7	43.3	134.1
Total fund level fee revenues	597.5	521.4	284.4	1,403.3
Realized performance revenues	281.2	64.9	30.5	376.6
Realized principal investment income	17.4	15.9	17.5	50.8
Interest income	12.3	15.0	5.1	32.4
Total revenues	908.4	617.2	337.5	1,863.1
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits	199.6	205.2	80.0	484.8
Realized performance revenues related compensation	178.8	40.2	22.5	241.5
Total compensation and benefits	378.4	245.4	102.5	726.3
General, administrative, and other indirect expenses(1)	108.4	76.0	45.3	229.7
Depreciation and amortization expense	16.3	9.7	5.1	31.1
Interest expense	36.9	29.9	9.9	76.7
Total expenses	540.0	361.0	162.8	1,063.8
(=) Distributable Earnings	$368.4	$256.2	$174.7	$799.3
(-) Realized net performance revenues	102.4	24.7	8.0	135.1
(-) Realized principal investment income	17.4	15.9	17.5	50.8
(+) Net interest	24.6	14.9	4.8	44.3
(=) Fee Related Earnings	$273.2	$230.5	$154.0	$657.7

(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.

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The following tables present the financial data for the Company’s three reportable segments for the three and six months

ended June 30, 2025:


	Three Months Ended June 30, 2025
	Global Private Equity	Global Credit	Carlyle AlpInvest	Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$302.4	$170.0	$117.2	$589.6
Portfolio advisory and transaction fees, net and other	6.9	41.0	—	47.9
Fee related performance revenues	—	28.6	10.1	38.7
Total fund level fee revenues	309.3	239.6	127.3	676.2
Realized performance revenues	244.7	5.1	10.0	259.8
Realized principal investment income	12.4	12.0	9.1	33.5
Interest income	5.5	7.0	2.0	14.5
Total revenues	571.9	263.7	148.4	984.0
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits	108.4	88.2	37.2	233.8
Realized performance revenues related compensation	160.9	3.1	8.1	172.1
Total compensation and benefits	269.3	91.3	45.3	405.9
General, administrative, and other indirect expenses(1)	50.3	36.2	19.8	106.3
Depreciation and amortization expense	7.0	3.8	2.0	12.8
Interest expense	13.4	11.5	3.1	28.0
Total expenses	340.0	142.8	70.2	553.0
(=) Distributable Earnings	$231.9	$120.9	$78.2	$431.0
(-) Realized net performance revenues	83.8	2.0	1.9	87.7
(-) Realized Principal Investment Income (Loss)	12.4	12.0	9.1	33.5
(+) Net interest	7.9	4.5	1.1	13.5
(=) Fee Related Earnings	$143.6	$111.4	$68.3	$323.3

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	Six Months Ended June 30, 2025
	Global Private Equity	Global Credit	Carlyle AlpInvest	Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$585.4	$309.6	$220.1	$1,115.1
Portfolio advisory and transaction fees, net and other	21.4	104.4	—	125.8
Fee related performance revenues	—	57.4	20.8	78.2
Total fund level fee revenues	606.8	471.4	240.9	1,319.1
Realized performance revenues	561.8	18.4	34.7	614.9
Realized principal investment income	27.5	17.5	18.5	63.5
Interest income	11.5	14.0	4.2	29.7
Total revenues	1,207.6	521.3	298.3	2,027.2
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits	209.1	177.2	71.5	457.8
Realized performance revenues related compensation	361.3	11.0	27.5	399.8
Total compensation and benefits	570.4	188.2	99.0	857.6
General, administrative, and other indirect expenses(1)	99.0	71.2	31.7	201.9
Depreciation and amortization expense	13.9	7.7	3.9	25.5
Interest expense	26.8	22.8	6.2	55.8
Total expenses	710.1	289.9	140.8	1,140.8
(=) Distributable Earnings	$497.5	$231.4	$157.5	$886.4
(-) Realized net performance revenues	200.5	7.4	7.2	215.1
(-) Realized principal investment income	27.5	17.5	18.5	63.5
(+) Net interest	15.3	8.8	2.0	26.1
(=) Fee Related Earnings	$284.8	$215.3	$133.8	$633.9

(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 June 30, 2026 and 2025.


	Three Months Ended June 30, 2026
	Total Reportable Segments	Consolidated Funds	Reconciling Items		Carlyle Consolidated
	Total Reportable Segments	Consolidated Funds	Reconciling Items		Carlyle Consolidated
	(Dollars in millions)
Revenues	$1,112.2	$192.5	$(181.2)	(a)	$1,123.5
Expenses	$639.9	$193.7	$42.3	(b)	$875.9
Other income (loss)	$—	$26.2	$—	(c)	$26.2
Distributable Earnings	$472.3	$25.0	$(223.5)	(d)	$273.8

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	Three Months Ended June 30, 2025
	Total Reportable Segments	Consolidated Funds	Reconciling Items		Carlyle Consolidated
	Total Reportable Segments	Consolidated Funds	Reconciling Items		Carlyle Consolidated
	(Dollars in millions)
Revenues	$984.0	$163.0	$425.9	(a)	$1,572.9
Expenses	$553.0	$178.5	$447.6	(b)	$1,179.1
Other income (loss)	$—	$46.8	$—	(c)	$46.8
Distributable Earnings	$431.0	$31.3	$(21.7)	(d)	$440.6

The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes for the

six months ended June 30, 2026 and 2025.


	Six Months Ended June 30, 2026
	Total Reportable Segments	Consolidated Funds	Reconciling Items		Carlyle Consolidated
	Total Reportable Segments	Consolidated Funds	Reconciling Items		Carlyle Consolidated
	(Dollars in millions)
Revenues	$1,863.1	$372.2	$(857.8)	(a)	$1,377.5
Expenses	$1,063.8	$372.0	$(191.3)	(b)	$1,244.5
Other income (loss)	$—	$(38.2)	$—	(c)	$(38.2)
Distributable Earnings	$799.3	$(38.0)	$(666.5)	(d)	$94.8


	Six Months Ended June 30, 2025
	Total Reportable Segments	Consolidated Funds	Reconciling Items		Carlyle Consolidated
	Total Reportable Segments	Consolidated Funds	Reconciling Items		Carlyle Consolidated
	(Dollars in millions)
Revenues	$2,027.2	$296.4	$222.4	(a)	$2,546.0
Expenses	$1,140.8	$309.3	$537.2	(b)	$1,987.3
Other income (loss)	$—	$52.9	$—	(c)	$52.9
Distributable Earnings	$886.4	$40.0	$(314.8)	(d)	$611.6

(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 June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Unrealized performance and fee related performance revenues	$(200.6)	$331.0	$(870.0)	$133.7
Unrealized principal investment income (loss)	(50.8)	25.5	(119.1)	42.5
Adjustments related to expenses associated with investments in NGP Management and its affiliates	(11.2)	(12.4)	(22.8)	(108.5)
Non-controlling interests and other adjustments to present certain costs on a net basis	77.5	106.8	101.5	197.8
Elimination of revenues of Consolidated Funds	3.9	(25.0)	52.6	(43.1)
	$(181.2)	$425.9	$(857.8)	$222.4

Table of Contents

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The following table reconciles the total segments fund level fee revenue to the most directly comparable U.S. GAAP

measure, the Company’s consolidated fund management fees, for the three and six months ended June 30, 2026 and

2025.


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Total Reportable Segments - Fund level fee revenues	$759.3	$676.2	$1,403.3	$1,319.1
Adjustments(1)	(102.3)	(55.8)	(162.3)	(112.6)
Carlyle Consolidated - Fund management fees	$657.0	$620.4	$1,241.0	$1,206.5

(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 U.S. GAAP measure, the Company’s consolidated transaction and portfolio advisory fees, net for

the three and six months ended June 30, 2026 and 2025.


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Total Reportable Segments - Portfolio advisory and transaction fees, net and other	$110.5	$47.9	$164.6	$125.8
Adjustments(1)	(2.0)	(2.1)	(6.8)	(3.3)
Carlyle Consolidated - Portfolio advisory and transaction fees, net	$108.5	$45.8	$157.8	$122.5

(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:

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Unrealized performance and fee related performance revenue compensation expense	$(129.5)	$206.7	$(544.4)	$99.4
Equity-based compensation	117.0	96.4	238.8	201.1
Acquisition or disposition-related charges and amortization of intangibles and impairment	44.9	48.3	91.3	170.5
Tax (expense) benefit associated with certain foreign performance revenues related compensation	(0.3)	(0.1)	0.4	(0.1)
Non-controlling interests and other adjustments to present certain costs on a net basis	37.9	99.9	57.5	74.2
Other adjustments	2.7	4.0	7.3	17.1
Elimination of expenses of Consolidated Funds	(30.4)	(7.6)	(42.2)	(25.0)
	$42.3	$447.6	$(191.3)	$537.2

(c)Represents Other Income (Loss) of Consolidated Funds which are excluded from the Company’s segment reporting.

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

Fee Related Earnings:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Income before provision for income taxes	$273.8	$440.6	$94.8	$611.6
Adjustments:
Net unrealized performance and fee related performance revenues	71.1	(124.3)	325.6	(34.3)
Unrealized principal investment (income) loss	50.8	(25.5)	119.1	(42.5)
Equity-based compensation(1)	117.0	96.4	238.8	201.1
Acquisition or disposition-related charges, including amortization of intangibles and impairment	44.9	48.3	91.3	170.5
Tax (expense) benefit associated with certain foreign performance revenues	(0.3)	(0.1)	0.4	(0.1)
Net (income) loss attributable to non-controlling interests in consolidated entities	(87.7)	(8.4)	(78.0)	(37.0)
Other adjustments(2)	2.7	4.0	7.3	17.1
Distributable Earnings	$472.3	$431.0	$799.3	$886.4
(-) Realized performance revenues, net of related compensation(3)	114.6	87.7	135.1	215.1
(-) Realized principal investment income(3)	22.6	33.5	50.8	63.5
(+) Net interest	22.6	13.5	44.3	26.1
Fee Related Earnings	$357.7	$323.3	$657.7	$633.9

(1)Equity-based compensation 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:

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	Three Months Ended June 30, 2026
	Carlyle Consolidated	Adjustments (4)	Total Reportable Segments
	(Dollars in millions)
Performance revenues	$44.7	$270.1	$314.8
Performance revenues related compensation expense	93.6	106.6	200.2
Net performance revenues	$(48.9)	$163.5	$114.6

Principal investment income (loss)	$69.2	$(46.6)	$22.6

	Six Months Ended June 30, 2026
	Carlyle Consolidated	Adjustments (4)	Total Reportable Segments
	(Dollars in millions)
Performance revenues	$(636.4)	$1,013.0	$376.6
Performance revenues related compensation expense	(274.3)	515.8	241.5
Net performance revenues	$(362.1)	$497.2	$135.1

Principal investment income (loss)	$133.6	$(82.8)	$50.8


	Three Months Ended June 30, 2025
	Carlyle Consolidated	Adjustments (4)	Total Reportable Segments
	(Dollars in millions)
Performance revenues	$638.8	$(379.0)	$259.8
Performance revenues related compensation expense	443.6	(271.5)	172.1
Net performance revenues	$195.2	$(107.5)	$87.7

Principal investment income (loss)	$55.2	$(21.7)	$33.5

	Six Months Ended June 30, 2025
	Carlyle Consolidated	Adjustments (4)	Total Reportable Segments
	(Dollars in millions)
Performance revenues	$861.7	$(246.8)	$614.9
Performance revenues related compensation expense	615.0	(215.2)	399.8
Net performance revenues	$246.7	$(31.6)	$215.1

Principal investment income (loss)	$(7.9)	$71.4	$63.5

(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.

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 June 30, 2026 and December 31, 2025 and results of operations for the three and six months

ended June 30, 2026 and 2025. The supplemental statement of cash flows is presented without effects of the Consolidated

Funds.


	As of June 30, 2026
	Consolidated Operating Entities	Consolidated Funds	Eliminations	Consolidated
	(Dollars in millions)
Assets
Cash and cash equivalents	$1,256.5	$—	$—	$1,256.5
Cash and cash equivalents held at Consolidated Funds	—	784.1	—	784.1
Investments, including accrued performance allocations of $6,608.2	11,362.6	—	(1,131.0)	10,231.6
Investments of Consolidated Funds	—	13,320.3	—	13,320.3
Due from affiliates and other receivables, net	1,482.4	—	(301.2)	1,181.2
Due from affiliates and other receivables of Consolidated Funds, net	—	290.3	—	290.3
Fixed assets, net	248.3	—	—	248.3
Lease right-of-use assets, net	320.4	—	—	320.4
Deposits and other	87.1	4.7	—	91.8
Intangible assets, net	440.9	—	—	440.9
Deferred tax assets	30.2	—	—	30.2
Total assets	$15,228.4	$14,399.4	$(1,432.2)	$28,195.6
Liabilities and equity
Debt obligations	$2,998.8	$—	$—	$2,998.8
Loans payable of Consolidated Funds	—	11,089.2	(284.8)	10,804.4
Accounts payable, accrued expenses and other liabilities	591.8	—	—	591.8
Accrued compensation and benefits	5,007.6	—	—	5,007.6
Due to affiliates	235.6	7.4	—	243.0
Deferred revenue	135.5	—	—	135.5
Deferred tax liabilities	16.0	—	—	16.0
Other liabilities of Consolidated Funds	—	643.9	(1.1)	642.8
Lease liabilities	450.5	—	—	450.5
Accrued giveback obligations	92.4	—	—	92.4
Total liabilities	9,528.2	11,740.5	(285.9)	20,982.8
Common stock	3.5	—	—	3.5
Additional paid-in capital	4,557.4	1,174.9	(1,174.9)	4,557.4
Retained earnings	873.8	—	—	873.8
Accumulated other comprehensive loss	(243.7)	22.5	28.6	(192.6)
Non-controlling interests in consolidated entities	509.2	1,461.5	—	1,970.7
Total equity	5,700.2	2,658.9	(1,146.3)	7,212.8
Total liabilities and equity	$15,228.4	$14,399.4	$(1,432.2)	$28,195.6

Table of Contents

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

Table of Contents

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	Three Months Ended June 30, 2026
	Consolidated Operating Entities	Consolidated Funds	Eliminations	Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$668.4	$—	$(11.4)	$657.0
Incentive fees	98.9	—	—	98.9
Investment income
Performance allocations	47.1	—	(2.4)	44.7
Principal investment income	43.9	—	25.3	69.2
Total investment income	91.0	—	22.9	113.9
Interest and other income	68.8	—	(7.6)	61.2
Interest and other income of Consolidated Funds	—	192.5	—	192.5
Total revenues	927.1	192.5	3.9	1,123.5
Expenses
Compensation and benefits
Cash-based compensation and benefits	261.9	—	—	261.9
Equity-based compensation	116.0	—	—	116.0
Performance allocations and incentive fee related compensation	93.6	—	—	93.6
Total compensation and benefits	471.5	—	—	471.5
General, administrative and other expenses	202.9	—	—	202.9
Interest	38.2	—	—	38.2
Interest and other expenses of Consolidated Funds	—	193.7	(30.4)	163.3
Total expenses	712.6	193.7	(30.4)	875.9
Other income
Net investment income of Consolidated Funds	—	26.2	—	26.2
Income before provision for income taxes	214.5	25.0	34.3	273.8
Provision for income taxes	49.0	—	—	49.0
Net income	165.5	25.0	34.3	224.8
Net income attributable to non-controlling interests in consolidated entities	28.4	—	59.3	87.7
Net income attributable to The Carlyle Group Inc.	$137.1	$25.0	$(25.0)	$137.1

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)



	Six Months Ended June 30, 2026
	Consolidated Operating Entities	Consolidated Funds	Eliminations	Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$1,264.4	$—	$(23.4)	$1,241.0
Incentive fees	150.6	—	—	150.6
Investment income (loss)
Performance allocations	(632.9)	—	(3.5)	(636.4)
Principal investment income	38.7	—	94.9	133.6
Total investment loss	(594.2)	—	91.4	(502.8)
Interest and other income	131.9	—	(15.4)	116.5
Interest and other income of Consolidated Funds	—	372.2	—	372.2
Total revenues	952.7	372.2	52.6	1,377.5
Expenses
Compensation and benefits
Cash-based compensation and benefits	489.0	—	—	489.0
Equity-based compensation	235.8	—	—	235.8
Performance allocations and incentive fee related compensation	(274.3)	—	—	(274.3)
Total compensation and benefits	450.5	—	—	450.5
General, administrative and other expenses	387.4	—	0.1	387.5
Interest	76.8	—	—	76.8
Interest and other expenses of Consolidated Funds	—	372.0	(42.3)	329.7
Total expenses	914.7	372.0	(42.2)	1,244.5
Other income (loss)
Net investment loss of Consolidated Funds	—	(38.2)	—	(38.2)
Income (loss) before provision for income taxes	38.0	(38.0)	94.8	94.8
Provision for income taxes	11.9	—	—	11.9
Net income (loss)	26.1	(38.0)	94.8	82.9
Net income attributable to non-controlling interests in consolidated entities	21.2	—	56.8	78.0
Net income (loss) attributable to The Carlyle Group Inc.	$4.9	$(38.0)	$38.0	$4.9

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	Three Months Ended June 30, 2025
	Consolidated Operating Entities	Consolidated Funds	Eliminations	Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$628.0	$—	$(7.6)	$620.4
Incentive fees	40.9	—	(0.4)	40.5
Investment income
Performance allocations	640.0	—	(1.2)	638.8
Principal investment income	66.2	—	(11.0)	55.2
Total investment income	706.2	—	(12.2)	694.0
Interest and other income	59.8	—	(4.8)	55.0
Interest and other income of Consolidated Funds	—	163.0	—	163.0
Total revenues	1,434.9	163.0	(25.0)	1,572.9
Expenses
Compensation and benefits
Cash-based compensation and benefits	238.4	—	—	238.4
Equity-based compensation	92.9	—	—	92.9
Performance allocations and incentive fee related compensation	443.6	—	—	443.6
Total compensation and benefits	774.9	—	—	774.9
General, administrative and other expenses	205.4	—	0.1	205.5
Interest	28.0	—	—	28.0
Interest and other expenses of Consolidated Funds	—	178.5	(7.7)	170.8
Other non-operating income	(0.1)	—	—	(0.1)
Total expenses	1,008.2	178.5	(7.6)	1,179.1
Other income (loss)
Net investment income of Consolidated Funds	—	46.8	—	46.8
Income before provision for income taxes	426.7	31.3	(17.4)	440.6
Provision for income taxes	112.5	—	—	112.5
Net income	314.2	31.3	(17.4)	328.1
Net income (loss) attributable to non-controlling interests in consolidated entities	(5.5)	—	13.9	8.4
Net income attributable to The Carlyle Group Inc.	$319.7	$31.3	$(31.3)	$319.7

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Notes to the Condensed Consolidated Financial Statements

(Unaudited)



	Six Months Ended June 30, 2025
	Consolidated Operating Entities	Consolidated Funds	Eliminations	Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$1,222.4	$—	$(15.9)	$1,206.5
Incentive fees	84.2	—	(0.5)	83.7
Investment income
Performance allocations	863.4	—	(1.7)	861.7
Principal investment income (loss)	5.7	—	(13.6)	(7.9)
Total investment income	869.1	—	(15.3)	853.8
Interest and other income	117.0	—	(11.4)	105.6
Interest and other income of Consolidated Funds	—	296.4	—	296.4
Total revenues	2,292.7	296.4	(43.1)	2,546.0
Expenses
Compensation and benefits
Cash-based compensation and benefits	456.8	—	—	456.8
Equity-based compensation	196.4	—	—	196.4
Performance allocations and incentive fee related compensation	615.0	—	—	615.0
Total compensation and benefits	1,268.2	—	—	1,268.2
General, administrative and other expenses	379.1	—	—	379.1
Interest	55.8	—	—	55.8
Interest and other expenses of Consolidated Funds	—	309.3	(25.0)	284.3
Other non-operating income	(0.1)	—	—	(0.1)
Total expenses	1,703.0	309.3	(25.0)	1,987.3
Other income
Net investment income of Consolidated Funds	—	52.9	—	52.9
Income before provision for income taxes	589.7	40.0	(18.1)	611.6
Provision for income taxes	124.9	—	—	124.9
Net income	464.8	40.0	(18.1)	486.7
Net income attributable to non-controlling interests in consolidated entities	15.1	—	21.9	37.0
Net income attributable to The Carlyle Group Inc.	$449.7	$40.0	$(40.0)	$449.7

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The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)


	Six Months Ended June 30,
	2026	2025
	(Dollars in millions)
Cash flows from operating activities
Net income	$26.1	$464.8
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	101.8	94.6
Equity-based compensation	235.8	196.4
Non-cash performance allocations and incentive fees	335.3	(252.4)
Non-cash principal investment (income) loss	(12.9)	33.5
Other non-cash amounts	(6.4)	36.8
Purchases of investments	(733.1)	(481.8)
Proceeds from the sale of investments	600.6	499.5
Payments of contingent consideration	—	(1.0)
Change in deferred taxes, net	(72.4)	(16.5)
Change in due from affiliates and other receivables	(66.8)	(16.5)
Change in deposits and other	7.5	(25.0)
Change in accounts payable, accrued expenses and other liabilities	55.1	39.1
Change in accrued compensation and benefits	(243.1)	(116.2)
Change in due to affiliates	3.9	23.6
Change in lease right-of-use assets and lease liabilities	(7.9)	(6.3)
Change in deferred revenue	7.3	57.6
Net cash provided by operating activities	230.8	530.2
Cash flows from investing activities
Purchases of fixed assets, net	(60.1)	(34.2)
Net cash used in investing activities	(60.1)	(34.2)
Cash flows from financing activities
Payments on CLO borrowings	(37.6)	(40.1)
Proceeds from CLO borrowings, net of financing costs	47.8	15.1
Dividends to common stockholders	(252.1)	(252.7)
Contributions from non-controlling interest holders	208.4	91.4
Distributions to non-controlling interest holders	(119.1)	(48.6)
Common shares repurchased and net share settlement of equity-based awards	(508.9)	(280.1)
Change in due to/from affiliates financing activities	(206.7)	(0.5)
Net cash used in financing activities	(868.2)	(515.5)
Effect of foreign exchange rate changes	(18.1)	29.9
(Decrease) increase in cash, cash equivalents and restricted cash	(715.6)	10.4
Cash, cash equivalents and restricted cash, beginning of period	1,973.6	1,266.5
Cash, cash equivalents and restricted cash, end of period	$1,258.0	$1,276.9

Reconciliation of cash, cash equivalents and restricted cash, end of period:
Cash and cash equivalents	$1,256.5	$1,275.8
Restricted cash	1.5	1.1
Total cash, cash equivalents and restricted cash, end of period	$1,258.0	$1,276.9

Cash and cash equivalents held at Consolidated Funds	$784.1	$463.1

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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 June 30, 2026, our

Global Private Equity segment had $162.7 billion in AUM and $96.6 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 June 30, 2026, our Global Credit segment had

$211.1 billion in AUM and $167.6 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

June 30, 2026, our Carlyle AlpInvest segment had $111.7 billion in AUM and $70.2 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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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 $485 billion as of June 30, 2026 for each of our three global business segments (in billions):


Global Private Equity	$162.7	Global Credit	$211.1
Corporate Private Equity	$101.3	Insurance Solutions 4	$86.4
U.S. Buyout (CP)	51.9	Liquid Credit	$47.9
Asia Buyout (CAP)	11.3	U.S. CLOs	34.6
Europe Buyout (CEP)	9.0	Europe CLOs	9.0
Carlyle Global Partners (CGP)	6.5	CLO Investment Products	2.4
Japan Buyout (CJP)	5.4	Revolving Credit	2.0
Europe Technology (CETP)	5.4	Private Credit	$76.8
U.S. Growth (CP Growth / CEOF)	3.3	Opportunistic Credit (CCOF / CSP)	20.7
Life Sciences (ABV / ACCD)	2.3	Direct Lending 5	14.1
Asia Growth (CAP Growth / CAGP)	1.1	Asset-Backed Finance	12.1
Other 1	5.3	Aviation Finance (SASOF / CALF)	11.9
Real Estate	$35.6	Cross-Platform Credit (incl CTAC)	9.8
U.S. Real Estate (CRP)	24.1	Infrastructure Credit (CICF)	7.7
Core Plus Real Estate (CPI)	9.0	Other 6	0.4
International Real Estate (CER)	2.5
Infrastructure & Natural Resources	$25.7	Carlyle AlpInvest	$111.7
NGP Energy 2	12.0	Secondaries & Portfolio Finance (ASF / ASPF)	$50.7
Infrastructure & Renewable Energy 3	7.2	Co-Investments (ACF)	$24.4
International Energy (CIEP)	6.5	Primary Investments & Other 7	$36.6

Note: All amounts shown represent total assets under management as of June 30, 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 these 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), Europe Direct Lending funds (EDLF / ETAC), and our evergreen fund

(CDLF).

(6)Includes our Real Estate Credit fund (CNLI).

(7)Includes Carlyle AlpInvest Private Markets (CAPM) and Carlyle AlpInvest Private Markets Secondaries (CAPS) funds.

Trends Affecting Our Business

Our global business is affected by the conditions in the global financial markets, global economies and the geopolitical

landscape, particularly in the U.S., Europe, and Asia, as discussed in Item 1A “Risk Factors” of our Annual Report on

Form 10-K.

Equity markets posted their strongest quarterly returns since 2020 in Q2 2026, rising despite persistent geopolitical

tensions in the Strait of Hormuz. Although a ceasefire agreement improved market sentiment, geopolitical tensions persisted,

and shipping through the Strait of Hormuz remained well below pre-conflict levels, leaving physical supply constraints largely

intact. The S&P 500, NASDAQ Composite, and Russell 2000 returned 14.9%, 21.4%, and 21.2%, respectively, supported by

upward earnings per share (“EPS”) revisions—consensus 2026 S&P 500 EPS growth has risen 1,440 basis points (“bps”) since

the onset of the Iran conflict. Rotation was a defining feature through the first half of the year: the Magnificent 7 stocks

declined 10% from their peak and software stocks finished the half down 20%, while traditional economy sectors such as

construction & engineering, communications equipment, and marine transport, as well as hardware, led performance, and small

caps outperformed large caps by over 1,000 bps. Globally, Europe’s Euro Stoxx 50 returned 13.6% during the quarter, while

Asian markets were the strongest performers—Korea’s KOSPI, Taiwan’s TAIEX, and Japan’s Nikkei returned 67.8%, 45.4%,

and 37.2%, respectively, driven by semiconductor demand tied to AI infrastructure. However, record earnings from memory

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chip manufacturers paradoxically triggered a sharp KOSPI selloff of 25% from peak, as investors grew concerned that surging

circuit board costs could impair the economics of the broader AI value chain. In private markets, buyout performance improved

somewhat compared to the S&P 500 for Q1 2026 (the latest data available), but this was primarily due to quarter end volatility.

Over longer periods against benchmarks that align more closely with market capitalization and display less concentration,

buyouts continue to outperform. Compared to the S&P 600 small-cap index, U.S. buyouts have generated outperformance of

506 bps over the last five years, 386 bps over the last 10 years, and 310 bps over the last 15 years.

Official estimates of U.S. GDP surprised to the downside in Q2 2026, but real final demand came in right on top of the

2.2% estimate implied by our proprietary portfolio data, as a surge in AI-related capital goods imports slowed topline GDP

growth relative to what would be implied by investment outlays, and inventory liquidation also reduced growth. Our measure of

corporate revenue growth accelerated to 6.2% annualized in Q2 2026, up from 5.7% in Q1 2026, but price rather than volume

accounted for a disproportionate share of that growth. Our data imply real consumption slowed to 1.8% annualized as

households absorbed the price shock, with spending among top-third households growing at 2.3x the rate of bottom-third

households. Headline inflation finished June at a 3.7% annual rate, and with core inflation above 3%, the Fed has not hit its

inflation target in five years. Against this backdrop, interest rates no longer appear to be on a pre-set path toward sub-3%, and

market participants largely expect the Fed’s next move to be a rate hike. The clearest source of strength was business

investment: our data indicate U.S. business spending rose at a 15.8% annualized rate, with corporate information technology

services up 28.3%. AI-related investment remains the primary driver—compute capex has grown at an 80% annualized rate

since year-end 2024, and data center real estate is now roughly 3.8x its year-end 2022 level. This spending surge is also bidding

away finite resources—grid capacity, engineering talent, construction labor, and key materials—raising input costs and creating

headwinds for competing capital projects.

European conditions stabilized as the quarter progressed. German factory orders, while still negative, rebounded from

post-conflict troughs, and euro area order books improved, signaling firmer forward demand. A notable structural development

was the agreement by the EU’s six largest economies on capital markets integration, which could mobilize an estimated €8

trillion of household savings currently held in low-yielding deposits toward more productive investment. In China, domestic

consumption continued to contract, with weakness particularly evident in big-ticket categories previously supported by trade-in

subsidies. Exports remained the structural growth driver, with export growth to the U.S. turning positive for the first time since

the 2025 trade war. Taiwan and South Korea continue to benefit from AI-linked semiconductor demand—South Korean

semiconductor exports are growing at a record 180% annual rate—though concentration risk remains elevated, with Samsung

and SK Hynix’s combined market cap reaching approximately 135% of South Korea’s GDP. Japan has also benefited from AI-

related export growth, and recent moves in the yen and JGB yields appear to reflect a gradual normalization rather than a

sovereign or currency crisis. In India, growth appears resilient, but the country’s reliance on imported oil and gas leaves it

exposed to renewed energy supply disruptions.

Merger and acquisition (“M&A”) activity in the first half of 2026 surpassed the record aggregate deal value set in the

first half of 2021, though those headline figures increasingly reflected a relatively small number of large transactions.

Transactions totaled $1.75 trillion, a 23% increase quarter-over-quarter and a 66% increase over the same period a year ago,

even as transaction counts declined 15% quarter-over-quarter and 12% year-over-year. Leveraged buyout (“LBO”) activity was

more subdued. U.S. buyouts slowed in the second quarter, with deal volume falling 45% from the first quarter as managers

digested higher energy prices and saw hopes for Fed rate cuts fade. European buyouts helped take up the slack, with volume

increasing 51% in EMEA to exceed the U.S. by more than $13 billion. Exit activity remained constrained—announced buyout

exit value of $245 billion declined 23% quarter-over-quarter, and the 595 companies divested globally represented the lowest

quarterly count since 2020. However, median exit EBITDA multiples continued to improve, rising to a range of 14.7x to 17.6x

for deals exited in the fourth quarter of 2025 and first quarter of 2026 (the latest data available), compared to a range of 11.0x to

13.0x over much of 2022 through 2024. Meanwhile, initial public offering (“IPO”) activity was a bright spot, with 39 operating

company IPOs on U.S. exchanges generating $117 billion in proceeds, an 86% increase in transaction count versus Q1 2026.

SpaceX’s $86 billion IPO—22 years after founding—was emblematic of broader structural trends: private markets are

capturing an increasing share of value creation before listing, while passive investing is exerting a growing influence on public

market behavior.

Credit markets demonstrated broad resilience during the quarter, with improving conditions across most sectors even

as differentiation increased. Broader credit quality continued to improve: leveraged loan defaults plus distressed exchanges fell

to their lowest level in over three years at 2.77%, while the weighted average bid on the U.S. leveraged loan market ended the

quarter at 94.96, modestly below its year-end 2025 level of 96.64 but essentially unchanged from 95 at the end of the first

quarter. Amendment activity (repricings and extensions) also remained relatively steady from the first quarter, as a more than

doubling of extensions largely offset a decline in refinancings. Notably, weakness remained concentrated rather than broad-

based. Excluding software, the average secondary bid firmed by roughly 0.4 points over the quarter, while software loans fell

approximately 1.9 points, widening the gap between software and the rest of the index to a historically wide 9.6 points. CLO

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new issuance moderated from last year’s pace amid tight loan spreads and continued uncertainty around software and energy

exposures.

In the second quarter of 2026, we deployed $14.3 billion across our platform and $53.0 billion over the last twelve

months. In our traditional carry funds, we realized proceeds of $6.7 billion in the second quarter of 2026 and $36.8 billion over

the last twelve months, including $2.9 billion and $15.3 billion, respectively, in our corporate private equity strategy. We had

$16.8 billion in inflows in the second quarter of 2026 and $55.8 billion in inflows over the last twelve months as of June 30,

2026. Inflows over the last twelve months include $7.3 billion in our evergreen wealth products, which had $20.1 billion in

assets under management as of June 30, 2026, a 64% increase from one year ago.

Our carry fund portfolio appreciated 3% in the second quarter. Within our Global Private Equity segment in the second

quarter, our corporate private equity funds appreciated 2% as market price decreases in certain publicly traded positions offset

appreciation elsewhere, our infrastructure & natural resources funds appreciated 6% driven by our international energy funds

and appreciation in the NGP Carry funds, and our real estate funds were flat. Our Global Credit carry funds, which represent

approximately 11% of the total Global Credit remaining fair value as of June 30, 2026, appreciated 4% in the second quarter.

Carry funds in our Carlyle AlpInvest segment appreciated 3% in the second quarter.

Notable Developments

Dividends

In July 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 August 17, 2026, payable on August 26, 2026.

Global Private Equity Structured Investment Vehicle

During the second quarter of 2026, the Company completed the structuring of an investment vehicle in our Global Private

Equity segment, which created liquidity for our fund investors and raised capital earmarked for our next vintage U.S. buyout

fund. In connection with the transaction, the Company recognized portfolio advisory and transaction fees in our Global Credit

segment results during the quarter. Additionally, the Company transferred interests in certain fund-related entities to the vehicle,

which are reflected as a component of non-controlling interests in consolidated entities on our condensed consolidated balance

sheet as of June 30, 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 “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 fund 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, we

are entitled to 15% of carried interest generated from certain Abingworth funds.

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 if a fund’s investment values decline

below certain return hurdles, which vary from fund to fund, and become subject to a giveback obligation. See Note 7,

Commitments and Contingencies, for more information. 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 (i) amounts allocated to our investment professionals

and other employees, (ii) non-controlling interests, and (iii) 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 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.

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, which entitle us to an

allocation of up to 55.0% of the management fee revenues earned by NGP Management in certain funds, and up to 47.5% of the

performance allocations received by certain 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.

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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. 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 is not expected to have a material impact on the

revenues or profitability of, or the assets available to, the Company beyond the Company’s capital invested in the Consolidated

Funds.

Expenses

Compensation and benefits. Compensation includes salaries, bonuses, equity-based compensation, and performance

payment arrangements. Bonuses are accrued over the service period to which they relate.

We recognize as compensation expense the portion of performance allocations and incentive fees that are due to our

employees, senior Carlyle professionals, advisors, and operating executives in a manner consistent with how we recognize the

performance allocations and incentive fee revenue. These amounts are accounted for as compensation expense in conjunction

with the related performance allocations and incentive fee revenue and, until paid, are recognized as a component of the accrued

compensation and benefits liability. Compensation in respect of performance allocations and incentive fees is paid when the

related performance allocations and incentive fees are realized, and not when such performance allocations and incentive fees

are accrued. The funds do not have a uniform allocation of performance allocations and incentive fees to our employees, senior

Carlyle professionals, advisors, and operating executives. However, we generally allocate a range of 60% to 70% of

performance allocations and incentive fees to our employees.

In addition, we have implemented various equity-based compensation arrangements that require senior Carlyle

professionals and other employees to provide services over a service period of generally one year to four years in order to vest

in the applicable equity interests, which under U.S. GAAP will result in compensation charges over current and future periods.

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.

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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. The Carlyle Group Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S.

federal, state, and local corporate income taxes. The interim provision for income taxes is generally calculated using an

estimated annual effective tax rate applied to year-to-date ordinary income in accordance with ASC 740, Income Taxes.

Non-controlling Interests in Consolidated Entities. Non-controlling interests in consolidated entities represent the

component of equity in consolidated entities not held by us.

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

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

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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 June 30,
	2026	2025
Consolidated Results	(Dollars in millions)
Components of Fee-earning AUM
Fee-earning AUM based on capital commitments	$72,626	$70,434
Fee-earning AUM based on invested capital	76,974	80,609
Fee-earning AUM based on collateral balances, at par	42,368	45,062
Fee-earning AUM based on net asset value	33,867	26,221
Fee-earning AUM based on fair value and other	108,574	102,375
Balance, End of Period(1)	$334,409	$324,701

(1)Ending balances as of June 30, 2026 and 2025 exclude $27.6 billion and $17.6 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 June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Consolidated Results	(Dollars in millions)
Fee-earning AUM Rollforward
Balance, Beginning of Period	$333,357	$313,843	$336,778	$304,358
Inflows(1)	8,498	18,038	16,135	29,904
Outflows (including realizations)(2)	(6,389)	(10,805)	(15,203)	(16,411)
Market Activity & Other(3)	(582)	209	(2,123)	1,639
Foreign Exchange(4)	(475)	3,416	(1,178)	5,211
Balance, End of Period	$334,409	$324,701	$334,409	$324,701

(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

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on invested capital, incremental fee-earning collateral from new CLO issuances and resets, 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);

(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 and 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 June 30, 2026	Six Months Ended June 30, 2026
Consolidated Results	(Dollars in millions)
Total AUM Rollforward
Balance, Beginning of Period	$475,418	$476,867
Inflows(1)	16,784	29,762
Outflows (including realizations)(2)	(11,319)	(24,845)
Market Activity & Other(3)	5,421	5,517
Foreign Exchange(4)	(809)	(1,806)
Balance, End of Period	$485,495	$485,495

(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 June 30, 2026, our total AUM and Fee-earning AUM included

$119.7 billion and $113.2 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 $39.9 billion and $33.5 billion,

respectively, as of June 30, 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 June 30, 2026, our total AUM included

$236.6 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 fund 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 June 30, 2026, our Consolidated

Funds represent approximately 4% of our AUM; 2% and 2% of our management fees for the three and six months ended June

30, 2026, respectively; and 20% and 18% of our total investment income or loss on an unconsolidated basis for the three and six

months ended June 30, 2026, respectively.

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 June 30, 2026, the assets

and liabilities of the Consolidated Funds were primarily related to our consolidated CLOs, which held approximately $10.9

billion of total assets. Additionally, the Investments of Consolidated Funds included approximately $1.1 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 beyond the capital contributed by the Company to the

Consolidated Funds. 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 and six months ended June 30, 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 June 30,		Change		Six Months Ended June 30,		Change
	2026	2025	$	%	2026	2025	$	%
	(Dollars in millions)
Revenues
Fund management fees	$657.0	$620.4	$36.6	6%	$1,241.0	$1,206.5	$34.5	3%
Incentive fees	98.9	40.5	58.4	144%	150.6	83.7	66.9	80%
Investment income (loss)
Performance allocations	44.7	638.8	(594.1)	(93)%	(636.4)	861.7	(1,498.1)	NM
Principal investment income (loss)	69.2	55.2	14.0	25%	133.6	(7.9)	141.5	NM
Total investment income (loss)	113.9	694.0	(580.1)	(84)%	(502.8)	853.8	(1,356.6)	NM
Interest and other income	61.2	55.0	6.2	11%	116.5	105.6	10.9	10%
Interest and other income of Consolidated Funds	192.5	163.0	29.5	18%	372.2	296.4	75.8	26%
Total revenues	1,123.5	1,572.9	(449.4)	(29)%	1,377.5	2,546.0	(1,168.5)	(46)%
Expenses
Compensation and benefits
Cash-based compensation and benefits	261.9	238.4	23.5	10%	489.0	456.8	32.2	7%
Equity-based compensation	116.0	92.9	23.1	25%	235.8	196.4	39.4	20%
Performance allocations and incentive fee related compensation	93.6	443.6	(350.0)	(79)%	(274.3)	615.0	(889.3)	NM
Total compensation and benefits	471.5	774.9	(303.4)	(39)%	450.5	1,268.2	(817.7)	(64)%
General, administrative and other expenses	202.9	205.5	(2.6)	(1)%	387.5	379.1	8.4	2%
Interest	38.2	28.0	10.2	36%	76.8	55.8	21.0	38%
Interest and other expenses of Consolidated Funds	163.3	170.8	(7.5)	(4)%	329.7	284.3	45.4	16%
Other non-operating income	—	(0.1)	0.1	(100)%	—	(0.1)	0.1	(100)%
Total expenses	875.9	1,179.1	(303.2)	(26)%	1,244.5	1,987.3	(742.8)	(37)%
Other income
Net investment income of Consolidated Funds	26.2	46.8	(20.6)	(44)%	(38.2)	52.9	(91.1)	NM
Income before provision for income taxes	273.8	440.6	(166.8)	(38)%	94.8	611.6	(516.8)	(84)%
Provision for income taxes	49.0	112.5	(63.5)	(56)%	11.9	124.9	(113.0)	(90)%
Net income	224.8	328.1	(103.3)	(31)%	82.9	486.7	(403.8)	(83)%
Net income attributable to non- controlling interests in consolidated entities	87.7	8.4	79.3	NM	78.0	37.0	41.0	111%
Net income attributable to The Carlyle Group Inc. Common Stockholders	$137.1	$319.7	$(182.6)	(57)%	$4.9	$449.7	$(444.8)	(99)%

NM - Not meaningful

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Revenues

Fund management fees. The following table provides the components of the changes in Fund management fees for the

periods presented:


	Three Months Ended June 30,	Six Months Ended June 30,
	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	$34.0	$91.0
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	(33.6)	(50.6)
Decrease in catch-up management fees from subsequent closes of funds that are in the fundraising period	(12.7)	(26.7)
Higher transaction and portfolio advisory fees	62.6	35.3
All other changes(1)	(13.7)	(14.5)
Total increase in Fund management fees(2)	$36.6	$34.5

(1)The three and six months ended June 30, 2025 included approximately $19 million of aviation catch-up subordinated management fees.

(2)Total increase in Fund management fees does not include our equity income allocation from NGP management fee related revenues. We do not control

NGP and account for our strategic investment in NGP as an equity method investment under U.S. GAAP. Therefore, Fund management fees associated

with NGP are included in Principal investment income (loss) in our U.S. GAAP results.

No fund generated over 10% of total fund management fees in any of the periods presented. Fee-earning AUM as of

June 30, 2026 increased in Carlyle AlpInvest and Global Credit and decreased in Global Private Equity as compared to June 30,

2025, reflecting a diversified fund management fee base across our three business segments.

Fund management fees included transaction and portfolio advisory fees, net of rebate offsets, of $108.5 million and $45.8

million for the three months ended June 30, 2026 and 2025, respectively, and $157.8 million and $122.5 million for the six

months ended June 30, 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.

Incentive fees. Incentive fees increased $58.4 million for the three months ended June 30, 2026, as compared to the three

months ended June 30, 2025, and increased $66.9 million for the six months ended June 30, 2026, as compared to the six

months ended June 30, 2025, primarily due to catch-up fees from the restructuring of certain incentive fee arrangements in the

Global Credit segment, as well as the growth and performance of the CAPM and CAPS evergreen funds in the Carlyle

AlpInvest segment.

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Investment income (loss). The components of Investment income (loss) are included in the following table:


	Three Months Ended June 30,		Change		Six Months Ended June 30,		Change
	2026	2025	$	%	2026	2025	$	%
	(Dollars in millions)
Performance allocations	$44.7	$638.8	$(594.1)	(93)%	$(636.4)	$861.7	$(1,498.1)	NM
Principal investment income (loss):
Investment income (loss) from NGP, which includes performance allocations	44.0	34.8	9.2	26%	99.3	(72.4)	171.7	NM
Investment income (loss) from our carry funds:
Global Private Equity	21.2	7.9	13.3	168%	19.5	19.4	0.1	1%
Global Credit	(5.3)	(0.9)	(4.4)	NM	(2.2)	(0.1)	(2.1)	NM
Carlyle AlpInvest	0.7	4.5	(3.8)	(84)%	(2.3)	6.7	(9.0)	NM
Investment loss from our CLOs	(0.7)	(6.7)	6.0	(90)%	(10.4)	(7.5)	(2.9)	39%
Investment income from Carlyle FRL	3.5	1.5	2.0	133%	10.3	15.4	(5.1)	(33)%
Investment income (loss) from our other Global Credit products	5.3	(1.7)	7.0	NM	6.3	4.7	1.6	34%
Investment income from our other Carlyle AlpInvest products	1.3	8.2	(6.9)	(84)%	14.7	19.8	(5.1)	(26)%
Investment income on foreign currency hedges	1.5	2.4	(0.9)	(38)%	0.5	1.6	(1.1)	(69)%
All other investment income (loss)	(2.3)	5.2	(7.5)	NM	(2.1)	4.5	(6.6)	NM
Total Principal investment income (loss)	69.2	55.2	14.0	25%	133.6	(7.9)	141.5	NM
Total Investment income (loss)	$113.9	$694.0	$(580.1)	(84)%	$(502.8)	$853.8	$(1,356.6)	NM

Performance allocations. Performance allocations by segment for the three and six months ended June 30, 2026 and 2025

comprised the following:


	Three Months Ended June 30,		Change		Six Months Ended June 30,		Change
	2026	2025	$	%	2026	2025	$	%
	(Dollars in millions)
Global Private Equity	$(101.8)	$476.9	$(578.7)	NM	$(799.9)	$561.9	$(1,361.8)	NM
Global Credit	102.6	50.8	51.8	102%	139.3	129.8	9.5	7%
Carlyle AlpInvest	43.9	111.1	(67.2)	(60)%	24.2	170.0	(145.8)	(86)%
Total performance allocations	$44.7	$638.8	$(594.1)	(93)%	$(636.4)	$861.7	$(1,498.1)	NM

Performance allocations for the three and six months ended June 30, 2026 included the following:

•In the Global Private Equity segment, for the three and six months ended June 30, 2026, reversals of Performance

allocations were primarily attributable to declines in CP VII’s accrued performance allocations, largely due to

decreases in the market price 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, CJP IV, CP VIII,

CP Growth I, CGP II, and CETP III.

•In the Global Credit segment, for the three and six months ended June 30, 2026, Performance allocation accruals

were primarily driven by appreciation in CCOF III, SASOF IV, and SASOF V.

•In the Carlyle AlpInvest segment, for the three and six months ended June 30, 2026, Performance allocation accruals

were primarily driven by appreciation in our secondaries & portfolio finance funds, partially offset by declines in

ACF VIII due to the impact of preferred return.

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Performance allocations for the three and six months ended June 30, 2025 included the following:

•In the Global Private Equity segment, for the three months ended June 30, 2025, Performance allocation accruals

were primarily driven by appreciation in CAP V, CP VII, and CP VIII. For the six months ended June 30, 2025,

Performance allocation accruals were primarily driven by appreciation in CP VII and CP VIII.

•In the Global Credit segment, for the three and six months ended June 30, 2025, Performance allocation accruals

were primarily driven by appreciation in SASOF V and CCOF II.

•In the Carlyle AlpInvest segment, for the three and six months ended June 30, 2025, Performance allocation accruals

were primarily driven by appreciation in our secondaries & portfolio finance and 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 June 30, 2026 and 2025 was

primarily attributable to performance allocations on funds managed by NGP. Principal investment income for the six months

ended June 30, 2026 was primarily attributable to performance allocations on funds managed by NGP. Principal investment

loss for the six months ended June 30, 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 six months ended June 30, 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 $29.5

million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, and increased $75.8

million for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily driven by an

increase in interest income from our consolidated CLOs.

Expenses

Compensation and benefits. Total compensation and benefits decreased $303.4 million for the three months ended June

30, 2026, as compared to the three months ended June 30, 2025, and decreased $817.7 million for the six months ended June

30, 2026, as compared to the six months ended June 30, 2025. The decrease for the three and six months ended June 30, 2026

relative to the comparable prior year period is primarily attributable to a decrease in Performance allocations and incentive fee

related compensation of $350.0 million and $889.3 million, respectively, which was 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 for the three and six months ended June 30, 2026 relative to the comparable prior year

period of $23.1 million and $39.4 million, respectively, primarily driven by stock awards granted in December 2025 and

February 2026 to further align leadership with Company performance, as well as an increase in Cash-based compensation and

benefits of $23.5 million and $32.2 million, respectively, primarily due to an increase in headcount.

Interest and other expenses of Consolidated Funds. Interest and other expenses of Consolidated Funds decreased $7.5

million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. Interest and other

expenses of Consolidated Funds increased $45.4 million for the six months ended June 30, 2026, as compared to the six months

ended June 30, 2025, primarily due to higher interest expense related to the consolidated CLOs and a collateralized fund

obligation in the Carlyle AlpInvest segment that was consolidated in the third quarter of 2025.

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Other Income (Loss)

Net investment income (loss) of Consolidated Funds. The table below summarizes the components of Net investment

income (loss) of Consolidated Funds:


	Three Months Ended June 30,		Change		Six Months Ended June 30,		Change
	2026	2025	$	%	2026	2025	$	%
	(Dollars in millions)
Net realized gains (losses) on investments of Consolidated Funds (excluding CLOs)	$8.3	$4.7	$3.6	77%	$28.6	$18.6	$10.0	54%
Net change in unrealized gains (losses) on investments of Consolidated Funds (excluding CLOs)	34.8	53.3	(18.5)	(35)%	(15.0)	55.6	(70.6)	NM
Net realized and unrealized gains (losses) on investments of Consolidated Funds (excluding CLOs)	43.1	58.0	(14.9)	(26)%	13.6	74.2	(60.6)	(82)%
Gains (losses) on investments of consolidated CLOs	103.5	(53.4)	156.9	NM	(115.6)	(62.6)	(53.0)	85%
Gains (losses) from liabilities of consolidated CLOs	(120.4)	42.2	(162.6)	NM	63.8	41.3	22.5	54%
Net gains (losses) from consolidated CLOs	(16.9)	(11.2)	(5.7)	51%	(51.8)	(21.3)	(30.5)	143%
Total net investment income (loss) of Consolidated Funds	$26.2	$46.8	$(20.6)	(44)%	$(38.2)	$52.9	$(91.1)	NM

Net investment income (loss) of Consolidated Funds for the three and six months ended June 30, 2026 included net

change in unrealized loss on an investment in a consolidated infrastructure fund in our Global Private Equity segment of

approximately $47 million and $82 million, respectively. Through June 30, 2026, the cumulative unrealized investment loss

recognized with respect to this investment attributable to the Company was approximately $222 million, which will be realized

upon the disposition of the fund’s investment, which we currently expect will occur later in 2026. These unrealized losses were

partially offset by unrealized gains primarily attributable to consolidated funds in our Carlyle AlpInvest segment.

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.

Income Tax Expense

Provision for income taxes. Our provision for income taxes was $49.0 million and $112.5 million for the three months

ended June 30, 2026 and 2025, respectively, and $11.9 million and $124.9 million for the six months ended June 30, 2026 and

2025, respectively. Our effective tax rate was approximately 18% and 26% for the three months ended June 30, 2026 and 2025,

respectively, and 13% and 20% for the six months ended June 30, 2026 and 2025, respectively. The effective tax rate for the

three months ended June 30, 2026 and 2025 primarily comprised the 21% U.S. federal corporate income tax rate, the impact of

U.S. state and foreign income taxes, and disallowed executive compensation, offset by non-controlling interest. The effective

tax rate for the six months ended June 30, 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 six months ended June 30, 2026, the effective tax rate also included the impact of a one-time tax expense related to a

change in the tax classification of a consolidated subsidiary.

Non-controlling Interests

Net income attributable to non-controlling interests in consolidated entities. Net income attributable to non-controlling

interests in consolidated entities was $87.7 million for the three months ended June 30, 2026, as compared to $8.4 million for

the three months ended June 30, 2025, and $78.0 million for the six months ended June 30, 2026, as compared to $37.0 million

for the six months ended June 30, 2025. The increase for the three and six months ended June 30, 2026 as compared to three

and six months ended June 30, 2025 was primarily due to net earnings of several Consolidated Funds in our Carlyle AlpInvest

segment, partially offset by a decline of $14.0 million during the three and six months ended June 30, 2026 in accrued carry

held by non-controlling interests. These amounts also reflect the related allocation of Consolidated Funds’ net earnings to

limited partners or CLO investors, net earnings from our insurance solutions business and certain other products allocated to

third-party investors, and net income attributable to non-controlling interests in carried interest and giveback obligations. The

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net income (loss) of our Consolidated Funds, after eliminations, attributable to non-controlling interests was $59.3 million and

$13.9 million for the three months ended June 30, 2026 and 2025, respectively, and $56.8 million and $21.9 million for the six

months ended June 30, 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 and

six months ended June 30, 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 and six months ended June 30, 2026 and 2025.


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Total segment revenues	$1,112.2	$984.0	$1,863.1	$2,027.2
Total segment expenses	639.9	553.0	1,063.8	1,140.8
(=) Distributable Earnings	$472.3	$431.0	$799.3	$886.4
(-) Realized net performance revenues	114.6	87.7	135.1	215.1
(-) Realized principal investment income	22.6	33.5	50.8	63.5
(+) Net interest	22.6	13.5	44.3	26.1
(=) Fee Related Earnings	$357.7	$323.3	$657.7	$633.9

The following table sets forth our total segment revenues for the three and six months ended June 30, 2026 and 2025.


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$560.1	$589.6	$1,104.6	$1,115.1
Portfolio advisory and transaction fees, net and other	110.5	47.9	164.6	125.8
Fee related performance revenues	88.7	38.7	134.1	78.2
Total fund level fee revenues	759.3	676.2	1,403.3	1,319.1
Realized performance revenues	314.8	259.8	376.6	614.9
Realized principal investment income	22.6	33.5	50.8	63.5
Interest income	15.5	14.5	32.4	29.7
Total Segment Revenues	$1,112.2	$984.0	$1,863.1	$2,027.2

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The following table sets forth our total segment expenses for the three and six months ended June 30, 2026 and 2025.


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits	$266.3	$233.8	$484.8	$457.8
Realized performance revenue related compensation	200.2	172.1	241.5	399.8
Total compensation and benefits	466.5	405.9	726.3	857.6
General, administrative, and other indirect expenses	120.1	106.3	229.7	201.9
Depreciation and amortization expense	15.2	12.8	31.1	25.5
Interest expense	38.1	28.0	76.7	55.8
Total Segment Expenses	$639.9	$553.0	$1,063.8	$1,140.8

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 June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Income (loss) before provision for income taxes	$273.8	$440.6	$94.8	$611.6
Adjustments:
Net unrealized performance and fee related performance revenues	71.1	(124.3)	325.6	(34.3)
Unrealized principal investment (income) loss	50.8	(25.5)	119.1	(42.5)
Equity-based compensation(1)	117.0	96.4	238.8	201.1
Acquisition or disposition-related charges, including amortization of intangibles and impairment	44.9	48.3	91.3	170.5
Tax (expense) benefit associated with certain foreign performance revenues	(0.3)	(0.1)	0.4	(0.1)
Net (income) loss attributable to non-controlling interests in consolidated entities	(87.7)	(8.4)	(78.0)	(37.0)
Other adjustments(2)	2.7	4.0	7.3	17.1
(=) Distributable Earnings	$472.3	$431.0	$799.3	$886.4
(-) Realized net performance revenues, net of related compensation(3)	114.6	87.7	135.1	215.1
(-) Realized principal investment income(3)	22.6	33.5	50.8	63.5
(+) Net interest	22.6	13.5	44.3	26.1
(=) Fee Related Earnings	$357.7	$323.3	$657.7	$633.9

(1)Equity-based compensation includes amounts presented in principal investment income and general, administrative and other expenses

in our U.S. GAAP statement of operations.

(2)Includes charges (credits) related to Carlyle corporate actions and non-recurring items that affect period-to-period comparability and are

not reflective of the Company’s operating performance.

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


	Three Months Ended June 30, 2026
	Carlyle Consolidated	Adjustments(4)	Total Reportable Segments
	(Dollars in millions)
Performance revenues	$44.7	$270.1	$314.8
Performance revenues related compensation expense	93.6	106.6	200.2
Net performance revenues	$(48.9)	$163.5	$114.6

Principal investment income (loss)	$69.2	$(46.6)	$22.6

	Six Months Ended June 30, 2026
	Carlyle Consolidated	Adjustments(4)	Total Reportable Segments
	(Dollars in millions)
Performance revenues	$(636.4)	$1,013.0	$376.6
Performance revenues related compensation expense	(274.3)	515.8	241.5
Net performance revenues	$(362.1)	$497.2	$135.1

Principal investment income (loss)	$133.6	$(82.8)	$50.8


	Three Months Ended June 30, 2025
	Carlyle Consolidated	Adjustments(4)	Total Reportable Segments
	(Dollars in millions)
Performance revenues	$638.8	$(379.0)	$259.8
Performance revenues related compensation expense	443.6	(271.5)	172.1
Net performance revenues	$195.2	$(107.5)	$87.7

Principal investment income (loss)	$55.2	$(21.7)	$33.5

	Six Months Ended June 30, 2025
	Carlyle Consolidated	Adjustments(4)	Total Reportable Segments
	(Dollars in millions)
Performance revenues	$861.7	$(246.8)	$614.9
Performance revenues related compensation expense	615.0	(215.2)	399.8
Net performance revenues	$246.7	$(31.6)	$215.1

Principal investment income (loss)	$(7.9)	$71.4	$63.5

(4)Adjustments to performance revenues and principal investment income (loss) relate to (i) unrealized performance allocations net of

related compensation expense and unrealized principal investment income, which are excluded from our Non-GAAP results, (ii)

amounts earned from the Consolidated Funds, which were eliminated in the U.S. GAAP consolidation but were included in the Non-

GAAP results, (iii) amounts attributable to non-controlling interests in consolidated entities, which were excluded from the Non-GAAP

results, (iv) the reclassification of NGP performance revenues, which are included in investment income in the U.S. GAAP financial

statements, (v) the reclassification of fee related performance revenues, which are included in fund level fee revenues in the segment

results, and (vi) the reclassification of tax expenses associated with certain foreign performance revenues. Adjustments to principal

investment income (loss) also include the reclassification of earnings for the investment in NGP Management and its affiliates to the

appropriate operating captions for the Non-GAAP results, and the exclusion of charges associated with the investment in NGP

Management and its affiliates that are excluded from the Non-GAAP results.

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Distributable Earnings for our reportable segments are as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Global Private Equity	$218.5	$231.9	$368.4	$497.5
Global Credit	158.0	120.9	256.2	231.4
Carlyle AlpInvest	95.8	78.2	174.7	157.5
Distributable Earnings	$472.3	$431.0	$799.3	$886.4

Segment Analysis

Discussed below is our DE and FRE for our segments for the periods presented. Our segment information is reflected in

the manner used by our chief operating decision maker to make operating and compensation decisions, assess performance, and

allocate resources.

For segment reporting purposes, revenues and expenses are presented on a basis that deconsolidates our Consolidated

Funds. As a result, segment revenues from management fees, realized performance revenues and realized principal investment

income (loss) are different than those presented on a consolidated U.S. GAAP basis because these revenues recognized in

certain segments are received from Consolidated Funds and are eliminated in consolidation when presented on a consolidated

U.S. GAAP basis. Furthermore, segment expenses are different than related amounts presented on a consolidated U.S. GAAP

basis due to the exclusion of fund expenses that are paid by the Consolidated Funds.

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Global Private Equity

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


	Three Months Ended June 30,		Change		Six Months Ended June 30,		Change
	2026	2025	$	%	2026	2025	$	%
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$283.4	$302.4	$(19.0)	(6)%	$567.7	$585.4	$(17.7)	(3)%
Portfolio advisory and transaction fees, net and other	17.9	6.9	11.0	159%	24.7	21.4	3.3	15%
Fee related performance revenues	3.0	—	3.0	NM	5.1	—	5.1	NM
Total fund level fee revenues	304.3	309.3	(5.0)	(2)%	597.5	606.8	(9.3)	(2)%
Realized performance revenues	251.5	244.7	6.8	3%	281.2	561.8	(280.6)	(50)%
Realized principal investment income (loss)	5.6	12.4	(6.8)	(55)%	17.4	27.5	(10.1)	(37)%
Interest income	5.3	5.5	(0.2)	(4)%	12.3	11.5	0.8	7%
Total revenues	566.7	571.9	(5.2)	(1)%	908.4	1,207.6	(299.2)	(25)%
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits	108.3	108.4	(0.1)	—%	199.6	209.1	(9.5)	(5)%
Realized performance revenues related compensation	159.0	160.9	(1.9)	(1)%	178.8	361.3	(182.5)	(51)%
Total compensation and benefits	267.3	269.3	(2.0)	(1)%	378.4	570.4	(192.0)	(34)%
General, administrative, and other indirect expenses	54.5	50.3	4.2	8%	108.4	99.0	9.4	9%
Depreciation and amortization expense	7.9	7.0	0.9	13%	16.3	13.9	2.4	17%
Interest expense	18.5	13.4	5.1	38%	36.9	26.8	10.1	38%
Total expenses	348.2	340.0	8.2	2%	540.0	710.1	(170.1)	(24)%
(=) Distributable Earnings	$218.5	$231.9	$(13.4)	(6)%	$368.4	$497.5	$(129.1)	(26)%
(-) Realized net performance revenues	92.5	83.8	8.7	10%	102.4	200.5	(98.1)	(49)%
(-) Realized principal investment income (loss)	5.6	12.4	(6.8)	(55)%	17.4	27.5	(10.1)	(37)%
(+) Net interest	13.2	7.9	5.3	67%	24.6	15.3	9.3	61%
(=) Fee Related Earnings	$133.6	$143.6	$(10.0)	(7)%	$273.2	$284.8	$(11.6)	(4)%

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

respective operating captions.

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Distributable Earnings

The following table provides the components of the changes in Distributable Earnings for the three and six months ended

June 30, 2026:


	Three Months Ended June 30,	Six Months Ended June 30,
	2026 v. 2025
	(Dollars in millions)
Distributable Earnings, June 30, 2025	$231.9	$497.5
Increases (decreases):
Decrease in Fee related earnings	(10.0)	(11.6)
Increase (decrease) in Realized net performance revenues	8.7	(98.1)
Decrease in Realized principal investment income	(6.8)	(10.1)
Increase in Net interest	(5.3)	(9.3)
Total decrease	(13.4)	(129.1)
Distributable Earnings, June 30, 2026	$218.5	$368.4

Realized net performance revenues. Realized net performance revenues increased $8.7 million for the three months ended

June 30, 2026, as compared to the three months ended June 30, 2025, and decreased $98.1 million for the six months ended

June 30, 2026, as compared to the six months ended June 30, 2025. Realized net performance revenues for the three and six

months ended June 30, 2026 were primarily attributable to realizations in CJP IV, which realized carry for the first time in the

second quarter of 2026, and to a lesser extent, CP VI. Realized net performance revenues for the three months ended June 30,

2025 were primarily attributable to realizations in NGP XI and, to a lesser extent, CAP IV and CP VI. Realized net performance

revenues for the six months ended June 30, 2025 were primarily attributable to realizations in CPP II, NGP XI, and CAP IV.

While overall exit activity increased for the six months ended June 30, 2026, as compared to the six months ended June 30,

2025, the mix of exits was more concentrated in funds not yet realizing performance revenues.

Realized principal investment income. Realized principal investment income decreased $6.8 million for three months

ended June 30, 2026, as compared to the three months ended June 30, 2025, primarily due to lower realized investment income

from our U.S. buyout funds. Realized principal investment income decreased $10.1 million for the six months ended June 30,

2026, as compared to the six months ended June 30, 2025, primarily due to lower realized principal investment income from

our U.S. and Europe buyout and infrastructure funds, partially offset by an increase from our Japan buyout funds. Global

Private Equity distributable earnings in the second half of 2026 may be lower than the first half of 2026 due to the expected

realization of a loss on an investment in an infrastructure fund. Through June 30, 2026, the cumulative unrealized loss with

respect to this investment is $222 million and will reduce realized principal investment income in Global Private Equity upon

disposition of the investment, which we currently expect will occur later in 2026.

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Fee Related Earnings

The following table provides the components of the changes in Fee Related Earnings for the three and six months ended

June 30, 2026:


	Three Months Ended June 30,	Six Months Ended June 30,
	2026 v. 2025
	(Dollars in millions)
Fee Related Earnings, June 30, 2025	$143.6	$284.8
Increases (decreases):
Decrease in Fee revenues	(5.0)	(9.3)
Decrease in Cash-based compensation and benefits	0.1	9.5
Increase in General, administrative and other indirect expenses	(4.2)	(9.4)
All other changes	(0.9)	(2.4)
Total decrease	(10.0)	(11.6)
Fee Related Earnings, June 30, 2026	$133.6	$273.2

Fee Revenues. The following table provides the components of the changes in Fee revenues for the periods presented:


	Three Months Ended June 30,	Six Months Ended June 30,
	2026 v. 2025
	(Dollars in millions)
Lower Fund management fees	$(19.0)	$(17.7)
Higher Portfolio advisory and transaction fees, net and other	11.0	3.3
Higher Fee related performance revenues	3.0	5.1
Total decrease in fee revenues	$(5.0)	$(9.3)

Fund management fees decreased for the three months ended June 30, 2026 as compared to the three months ended June

30, 2025 driven by exit activity in funds on which management fees are based on invested capital and step-down in CP VII. The

decrease for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025 was driven by exit activity

in funds on which management fees are based on invested capital, a management fee step-down in CP VII, and lower catch-up

management fees, partially offset by the activation of management fees in CRP X in April 2025.

Portfolio advisory and transaction fees, net and other for the three and six months ended June 30, 2026 were primarily

driven by fees associated with multiple large transactions that closed during the second quarter of 2026. Portfolio advisory and

transaction fees, net and other for the six months ended June 30, 2025 reflected fees associated with the acquisition of a

healthcare investment across our U.S., Europe, and Asia buyout funds. Transaction fees are primarily generated by investment

activity within our funds, and are therefore impacted by our investment pace. See “—Trends Affecting Our Business” for

further discussion on our investment activity and broader market trends.

Cash-based compensation and benefits expense. Cash-based compensation and benefits expense decreased $9.5 million

for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily due to a decrease in

bonus accruals, partially offset by the impact of increased headcount.

General, administrative and other indirect expenses. General, administrative and other indirect expenses increased $4.2

million for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, and increased $9.4

million for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily due to higher IT-

related spending, higher conference costs, and unfavorable foreign currency remeasurement resulting from the strengthening of

the U.S. dollar in 2026.

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Fee-earning AUM

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

period.


	As of June 30,
	2026	2025
Global Private Equity	(Dollars in millions)
Components of Fee-earning AUM(1)
Fee-earning AUM based on capital commitments	$41,021	$42,297
Fee-earning AUM based on invested capital	44,700	49,703
Fee-earning AUM based on net asset value	8,497	7,364
Fee-earning AUM based on lower of cost or fair value	2,339	2,966
Total Fee-earning AUM	$96,557	$102,330
Annualized Management Fee Rate(2)	1.14%	1.16%

(1)For additional information concerning the components of Fee-earning AUM, see “—Key Financial Measures—Operating Metrics.”

(2)Represents annualized fund management fees divided by the average of the beginning of year and each quarter end’s Fee-earning AUM

in the reporting period. Catch-up management fees were excluded in the calculation of the annualized fund management fees.

The table below provides the period to period rollforward of Fee-earning AUM in our Global Private Equity segment.


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Balance, Beginning of Period	$99,059	$98,711	$101,366	$98,033
Inflows(1)	748	9,169	1,855	10,666
Outflows (including realizations)(2)	(3,029)	(6,539)	(6,303)	(8,016)
Market Activity & Other(3)	(30)	(208)	81	(258)
Foreign Exchange(4)	(191)	1,197	(442)	1,905
Balance, End of Period	$96,557	$102,330	$96,557	$102,330

(1)Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based

on commitments were activated during the period, and the fee-earning commitments invested in vehicles for which management fees

are based on invested capital. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which

are referenced as Pending Fee-earning AUM.

(2)Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair

value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has

expired during the period, and reductions for funds that are no longer calling for fees. Realizations for funds earning management fees

based on commitments during the period do not affect Fee-earning AUM.

(3)Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the

lower of cost or fair value.

(4)Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated

funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the

period end.

Fee-earning AUM of $96.6 billion at June 30, 2026 decreased 3% from $99.1 billion at March 31, 2026. The net decrease

was due to:

•Outflows of $3.0 billion, driven by the expiration of fees in CEOF II during the period and realizations in funds that

charge fees on invested capital, notably in CP VII and CEP V.

Offsetting this decrease were:

•Inflows of $0.7 billion, primarily driven by investments in our evergreen funds which charge fees on net asset value,

as well as investment activity in our funds which charge fees on invested capital.

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Fee-earning AUM at June 30, 2026 decreased 5% from $101.4 billion at December 31, 2025, due to:

•Outflows of $6.3 billion, which were driven by realizations in funds that charge fees on invested capital, notably in

CP VII, CRP IX and CEP V, as well as the expiration of fees in CEOF II.

Offsetting this decrease were:

•Inflows of $1.9 billion, primarily driven by investments in our evergreen funds which charge fees on net asset value,

as well as investment activity in our funds which charge fees on invested capital.

Fee-earning AUM at June 30, 2026 decreased 6% from $102.3 billion at June 30, 2025, due to:

•Outflows of $9.0 billion driven by realizations in funds that charge fees on invested capital, notably in CP VII, CEP

V, CRP IX, and the NGP Energy funds, and the expiration of fees in CEOF II during the period.

Offsetting this decrease were:

•Inflows of $3.9 billion, primarily driven by investments in our evergreen funds, additional fee-paying capital raised

in our life sciences funds, as well as investment activity in our U.S. real estate funds which charge fees on invested

capital.

Total AUM

Total AUM was $162.7 billion at June 30, 2026, which comprised $120.7 billion of investments at fair value and $42.0

billion of available capital. Approximately 10% of the fair value as of June 30, 2026 was publicly traded, and approximately

66% was aged four or more years. The table below provides the period to period rollforward of Total AUM in our Global

Private Equity segment.


	Three Months Ended June 30, 2026	Six Months Ended June 30, 2026
	(Dollars in millions)
Balance, Beginning of Period	$159,027	$163,543
Inflows(1)	6,427	8,670
Outflows (including realizations)(2)	(4,585)	(11,200)
Market Activity & Other(3)	2,155	2,373
Foreign Exchange(4)	(321)	(683)
Balance, End of Period	$162,703	$162,703

(1)Inflows reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects

translation at the average quarterly rate.

(2)Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and

separately managed accounts, gross redemptions in our evergreen products, and the expiration of available capital.

(3)Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related

co-investment vehicles, and separately managed accounts, as well as the impact of fees, expenses and non-investment income, and

other changes in AUM.

(4)Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated

funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the

period end.

Total AUM was $162.7 billion at June 30, 2026, an increase of 2% from $159.0 billion at March 31, 2026. The net

increase was due to:

•Inflows of $6.4 billion, driven by $5 billion of capital raised in an investment vehicle that is earmarked for our next

vintage U.S. buyout fund; and

•Market activity of $2.2 billion, driven by appreciation of $0.6 billion from the NGP Energy funds, $0.4 billion from

our international energy funds, and $0.4 billion from our Asia buyout funds, offset by depreciation of $0.2 billion

from our U.S. real estate funds and, $0.1 billion from our Europe buyout funds.

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Offsetting these increases were:

•Outflows of $4.6 billion driven by realizations in our U.S. buyout, Japan buyout and U.S. real estate funds.

Total AUM at June 30, 2026 decreased 1% from $163.5 billion at December 31, 2025, due to:

•Outflows of $11.2 billion, primarily driven by realizations in our U.S. buyout, U.S. real estate and Japan buyout

funds; and

•Negative foreign exchange activity of $0.7 billion reflected the impact of a strengthening U.S. Dollar on the

translation of our EUR- and JPY-denominated funds to USD.

Offsetting these decreases were:

•Inflows of $8.7 billion, driven by $5 billion of capital raised in an investment vehicle that is earmarked for our next

vintage U.S. buyout fund, as well as capital raised in U.S. buyout coinvestments and U.S. real estate products; and

•Market activity of $2.4 billion, driven by appreciation of $1.4 billion from the NGP Energy funds, $1.3 billion from

our international energy funds, and $0.6 billion from our Japan buyout funds, offset by depreciation of $0.6 billion

from our Europe buyout funds, $0.4 billion from our Asia buyout funds, and $0.4 billion from our U.S. buyout

funds.

Fund Performance Metrics

Fund performance information for our significant investment funds, which we generally define as those with at least $1.0

billion in capital commitments, is included throughout this discussion and analysis to facilitate an understanding of our results

of operations for the periods presented. The fund return information reflected in this discussion and analysis is not indicative of

the performance of The Carlyle Group Inc. and is also not necessarily indicative of the future performance of any particular

fund. An investment in The Carlyle Group Inc. is not an investment in any of our funds. There can be no assurance that any of

our funds or our other existing and future funds will achieve similar returns.

The following table reflects the performance of our significant funds in our Global Private Equity business. Please see

“—Our Global Investment Offerings” for a legend of the fund acronyms listed below.

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(Amounts in millions)				TOTAL INVESTMENTS						REALIZED/PARTIALLY REALIZED INVESTMENTS(12)
				As of June 30, 2026						As of June 30, 2026
Fund (Fee Initiation Date/Step-down Date)(1)	Committed Capital(2)	Cumulative Invested Capital(3)	Percent Invested	Realized Value(4)	Remaining Fair Value(5)	MOIC (6)	Gross IRR (7)(8)	Net IRR (8)(9)	Net Accrued Carry/ (Giveback) (10)	Total Value(11)	MOIC (6)	Gross IRR (7)(8)
Corporate Private Equity
CP VIII (Oct 2021 / Oct 2027)	$14,797	$12,419	84%	$3,184	$14,935	1.5x	19%	11%	$228	$4,615	2.2x	50%
CP VII (May 2018 / Oct 2021)	$18,510	$17,787	96%	$13,691	$16,134	1.7x	11%	8%	$256	$19,226	2.1x	16%
CP VI (May 2013 / May 2018)	$13,000	$13,140	101%	$26,929	$1,574	2.2x	17%	13%	$71	$27,665	2.5x	22%
CP V (Jun 2007 / May 2013)	$13,720	$13,238	96%	$28,126	$172	2.1x	18%	14%	$12	$28,136	2.3x	20%
CEP V (Oct 2018 / Oct 2024)	€6,416	€6,076	95%	€1,794	€4,266	1.0x	Neg	Neg	$—	€878	0.8x	Neg
CEP IV (Sep 2014 / Oct 2018)	€3,670	€3,964	108%	€6,294	€1,142	1.9x	16%	11%	$40	€6,260	2.1x	20%
CEP III (Jul 2007 / Dec 2013)	€5,295	€5,177	98%	€11,749	€0	2.3x	19%	14%	$—	€11,749	2.3x	19%
CAP VI (Jun 2024 / Jun 2030)	$2,886	$509	18%	$—	$509	1.0x	NM	NM	$—	n/a	n/a	n/a
CAP V (Jun 2018 / Jun 2024)	$6,554	$7,071	108%	$3,067	$6,432	1.3x	10%	5%	$—	$2,146	1.3x	23%
CAP IV (Jul 2013 / Jun 2018)	$3,880	$4,146	107%	$8,715	$269	2.2x	18%	13%	$19	$8,707	2.4x	21%
CJP V (Nov 2024 / Nov 2030)	¥434,325	¥119,642	28%	¥—	¥118,146	1.0x	NM	NM	$—	n/a	n/a	n/a
CJP IV (Oct 2020 / Nov 2024)	¥258,000	¥236,110	92%	¥304,891	¥256,443	2.4x	39%	28%	$71	¥369,075	3.9x	61%
CJP III (Sep 2013 / Aug 2020)	¥119,505	¥91,192	76%	¥275,264	¥8,832	3.1x	25%	18%	$4	¥274,341	3.3x	26%
CGFSP III (Dec 2017 / Dec 2023)	$1,005	$982	98%	$862	$1,419	2.3x	20%	14%	$70	$1,358	3.4x	29%
CGFSP II (Jun 2013 / Dec 2017)	$1,000	$943	94%	$2,083	$538	2.8x	25%	19%	$30	$2,620	2.8x	26%
CP Growth (Oct 2021 / Oct 2027)	$1,283	$657	51%	$1	$1,065	1.6x	23%	11%	$14	n/a	n/a	n/a
CEOF II (Nov 2015 / Mar 2020)	$2,400	$2,370	99%	$4,109	$1,364	2.3x	20%	15%	$67	$4,622	2.4x	22%
CETP V (Mar 2022 / Jun 2028)	€3,180	€1,859	58%	€—	€2,299	1.2x	NM	NM	$—	€—	0.0x	NM
CETP IV (Jul 2019 / Jun 2022)	€1,350	€1,204	89%	€1,726	€970	2.2x	27%	18%	$38	€1,837	3.7x	56%
CETP III (Jul 2014 / Jul 2019)	€657	€614	94%	€2,040	€215	3.7x	41%	29%	$15	€2,040	4.0x	44%
CGP II (Dec 2020 / Jan 2025)	$1,840	$984	53%	$236	$2,245	2.5x	25%	20%	$52	n/a	n/a	n/a
CGP (Jan 2015 / Mar 2021)	$3,588	$3,267	91%	$2,110	$2,207	1.3x	4%	3%	$2	$2,263	1.5x	7%
All Other Active Funds & Vehicles(13)		$22,170	n/a	$17,466	$17,340	1.6x	11%	10%	$30	$20,968	2.1x	18%
Fully Realized Funds & Vehicles(14)(15)		$35,288	n/a	$81,161	$2	2.3x	28%	20%	$—	$81,163	2.3x	28%
TOTAL CORPORATE PRIVATE EQUITY(16)		$159,284	n/a	$222,247	$78,711	1.9x	25%	17%	$1,017	$233,427	2.3x	26%

Real Estate
CRP X (Apr 2025 / Jul 2030)	$9,000	$939	10%	$18	$989	1.1x	NM	NM	$—	n/a	n/a	n/a
CRP IX (Oct 2021 / Dec 2024)	$7,987	$6,488	81%	$978	$6,756	1.2x	9%	2%	$—	$943	1.3x	26%
CRP VIII (Aug 2017 / Oct 2021)	$5,505	$4,963	90%	$6,125	$2,480	1.7x	30%	16%	$59	$6,093	2.1x	46%
CRP VII (Jun 2014 / Dec 2017)	$4,162	$3,754	90%	$5,216	$944	1.6x	16%	10%	$(34)	$5,207	1.7x	20%
CRP VI (Mar 2011 / Jun 2014)	$2,340	$2,145	92%	$3,828	$90	1.8x	26%	17%	$4	$3,781	1.9x	28%
CPI (May 2016 / n/a)	$9,050	$9,139	n/a	$3,840	$8,254	1.3x	9%	7%	n/a*	$2,249	1.7x	11%
All Other Active Funds & Vehicles(17)		$3,025	n/a	$724	$2,750	1.1x	8%	5%	$6	$448	1.2x	19%
Fully Realized Funds & Vehicles(15)(18)		$14,177	n/a	$21,547	$13	1.5x	9%	5%	$—	$21,560	1.5x	10%
TOTAL REAL ESTATE(16)		$44,629	n/a	$42,275	$22,275	1.4x	11%	7%	$35	$40,296	1.6x	13%

Infrastructure & Natural Resources
CIEP II (Apr 2019 / Apr 2025)	$2,286	$1,301	57%	$1,084	$1,667	2.1x	31%	17%	$69	$910	3.8x	NM**
CIEP I (Sep 2013 / Jun 2019)	$2,500	$2,470	99%	$3,650	$1,645	2.1x	16%	10%	$80	$4,442	2.3x	17%
CGIOF (Dec 2018 / Sep 2023)	$2,201	$2,136	97%	$680	$3,082	1.8x	16%	10%	$90	$832	1.9x	16%
CRSEF II (Nov 2022 / Aug 2027)	$1,187	$511	43%	$—	$1,037	2.0x	41%	28%	$27	n/a	n/a	n/a
NGP XIII (Feb 2023 / Feb 2028)	$2,300	$1,150	50%	$199	$1,719	1.7x	50%	33%	$12	$182	5.0x	NM
NGP XII (Jul 2017 / Jul 2022)	$4,304	$3,686	86%	$4,947	$2,944	2.1x	21%	15%	$40	$4,607	2.8x	33%
NGP XI (Oct 2014 / Jul 2017)	$5,325	$5,034	95%	$8,355	$1,582	2.0x	13%	10%	$58	$8,857	2.1x	17%
NGP X (Jan 2012 / Dec 2014)	$3,586	$3,351	93%	$3,578	$265	1.1x	3%	1%	$—	$3,359	1.2x	5%
All Other Active Funds & Vehicles(19)		$5,424	n/a	$3,685	$5,880	1.8x	17%	15%	$49	$3,761	2.4x	21%
Fully Realized Funds & Vehicles(15)(20)		$3,534	n/a	$5,581	$—	1.6x	8%	5%	$—	$5,581	1.6x	8%
TOTAL INFRASTRUCTURE & NATURAL RESOURCES(16)		$28,597	n/a	$31,760	$19,820	1.8x	13%	9%	$425	$32,531	2.0x	14%

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*Net accrued fee related performance revenues for CPI are excluded from Net Accrued Performance Revenues. These amounts will be

reflected as fee related performance revenues when realized, and included in Fund level fee revenues in our segment results. Accrued fee

related performance revenues for CPI were immaterial as of June 30, 2026.

**The IRR is incalculable, which occurs in instances when a distribution occurs prior to a Limited Partner capital contribution due to the use

of fund-level credit facilities.

(1)The fund step-down date represents the contractual step-down date under the respective fund agreements for funds on

which the fee basis step-down has not yet occurred. Funds without a listed Fee Initiation Date and Step-down Date have

not yet initiated fees.

(2)All amounts shown represent total capital commitments as of June 30, 2026. Certain of our recent vintage funds are

currently in fundraising and total capital commitments are subject to change.

(3)Represents the original cost of investments since inception of the fund.

(4)Represents all realized proceeds since inception of the fund.

(5)Represents remaining fair value, before management fees, expenses and carried interest, and may include remaining

escrow values for realized investments.

(6)Multiple of invested capital (“MOIC”) represents total value, before management fees, expenses and carried interest,

divided by cumulative invested capital.

(7)Gross Internal Rate of Return (“Gross IRR”) represents an annualized return on Limited Partner invested capital, based

on contributions, distributions and unrealized fair value as of the reporting date, before the impact of management fees,

partnership expenses and carried interest. For fund vintages 2017 and after, Gross IRR includes the impact of interest

expense related to the funding of investments on fund lines of credit. Gross IRR is calculated based on the timing of

Limited Partner cash flows, which may differ to varying degrees from the timing of actual investment cash flows for the

fund. Subtotal Gross IRR aggregations for multiple funds are calculated based on actual cash flow dates for each fund

and represent a theoretical time-weighted return for a Limited Partner who invested sequentially in each fund.

(8)For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time

since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is considered meaningful

but is negative as of reporting period end.

(9)Net Internal Rate of Return (“Net IRR”) represents an annualized return on Limited Partner invested capital, based on

contributions, distributions and unrealized fair value as of the reporting date, after the impact of all management fees,

partnership expenses and carried interest, including current accruals. Net IRR is calculated based on the timing of Limited

Partner cash flows, which may differ to varying degrees from the timing of actual investment cash flows for the fund.

Fund level IRRs are based on aggregate Limited Partner cash flows, and this blended return may differ from that of

individual Limited Partners. As a result, certain funds may generate accrued performance revenues with a blended Net

IRR that is below the preferred return hurdle for that fund. Subtotal Net IRR aggregations for multiple funds are

calculated based on actual cash flow dates for each fund and represent a theoretical time-weighted return for a Limited

Partner who invested sequentially in each fund.

(10)Represents the net accrued performance revenue balance/(giveback obligation) as of the current quarter end.

(11)Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried

interest.

(12)An investment is considered realized when the investment fund has completely exited, and ceases to own an interest in,

the investment. An investment is considered partially realized when the total amount of proceeds received in respect of

such investment, including dividends, interest or other distributions and/or return of capital, represents at least 85% of

invested capital and such investment is not yet fully realized. Because part of our value creation strategy involves

pursuing best exit alternatives, we believe information regarding Realized/Partially Realized MOIC and Gross IRR, when

considered together with the other investment performance metrics presented, provides investors with meaningful

information regarding our investment performance by removing the impact of investments where significant realization

activity has not yet occurred. Realized/Partially Realized MOIC and Gross IRR have limitations as measures of

investment performance and should not be considered in isolation. Such limitations include the fact that these measures

do not include the performance of earlier stage and other investments that do not satisfy the criteria provided above. The

exclusion of such investments will have a positive impact on Realized/Partially Realized MOIC and Gross IRR in

instances when the MOIC and Gross IRR in respect of such investments are less than the aggregate MOIC and Gross

IRR. Our measurements of Realized/Partially Realized MOIC and Gross IRR may not be comparable to those of other

companies that use similarly titled measures.

(13)Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and

stand-alone investments arranged by us: MENA, CCI, CSSAF I, CPF I, CAP Growth I, CAP Growth II, CBPF II, CAGP

IV, ABV 8, ABV 9, ACCD 2, ACCD 3, and CCD-CIF.

(14)Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and

certain other stand-alone investments arranged by us: CP I, CP II, CP III, CP IV, CEP I, CEP II, CAP I, CAP II, CAP III,

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CBPF I, CJP I, CJP II, CMG, CVP I, CVP II, CUSGF III, CGFSP I, CEVP I, CETP I, CETP II, CAVP I, CAVP II,

CAGP III, CEOF I, Mexico, and CSABF.

(15)Funds are included when all investments have been realized. There may be remaining fair value and net accrued carry

where there are outstanding escrow balances or undistributed proceeds.

(16)For purposes of aggregation, funds that report in foreign currency have been converted to U.S. dollars at the reporting

period spot rate.

(17)Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and

stand-alone investments arranged by us: CCR, CER I, and CER II.

(18)Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and

certain other stand-alone investments arranged by us: CRP I, CRP II, CRP III, CRP IV, CRP V, CRCP I, CAREP I,

CAREP II, CEREP I, CEREP II, and CEREP III.

(19)Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and

stand-alone investments arranged by us: NGP GAP, NGP RP I, NGP RP II, NGP RP III, NGP ETP IV, NGP SRA II, and

CRSEF.

(20)Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and

certain other stand-alone investments arranged by us: CIP, CPP II, and CPOCP.

Global Credit

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


	Three Months Ended June 30,		Change		Six Months Ended June 30,		Change
	2026	2025	$	%	2026	2025	$	%
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$148.6	$170.0	$(21.4)	(13)%	$295.9	$309.6	$(13.7)	(4)%
Portfolio advisory and transaction fees, net and other	92.6	41.0	51.6	126%	139.8	104.4	35.4	34%
Fee related performance revenues	53.6	28.6	25.0	87%	85.7	57.4	28.3	49%
Total fund level fee revenues	294.8	239.6	55.2	23%	521.4	471.4	50.0	11%
Realized performance revenues	54.2	5.1	49.1	NM	64.9	18.4	46.5	253%
Realized principal investment income (loss)	6.6	12.0	(5.4)	(45)%	15.9	17.5	(1.6)	(9)%
Interest income	7.8	7.0	0.8	11%	15.0	14.0	1.0	7%
Total revenues	363.4	263.7	99.7	38%	617.2	521.3	95.9	18%
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits	111.9	88.2	23.7	27%	205.2	177.2	28.0	16%
Realized performance revenues related compensation	33.5	3.1	30.4	NM	40.2	11.0	29.2	265%
Total compensation and benefits	145.4	91.3	54.1	59%	245.4	188.2	57.2	30%
General, administrative, and other indirect expenses	40.5	36.2	4.3	12%	76.0	71.2	4.8	7%
Depreciation and amortization expense	4.8	3.8	1.0	26%	9.7	7.7	2.0	26%
Interest expense	14.7	11.5	3.2	28%	29.9	22.8	7.1	31%
Total expenses	205.4	142.8	62.6	44%	361.0	289.9	71.1	25%
(=) Distributable Earnings	$158.0	$120.9	$37.1	31%	$256.2	$231.4	$24.8	11%
(-) Realized net performance revenues	20.7	2.0	18.7	NM	24.7	7.4	17.3	234%
(-) Realized principal investment income (loss)	6.6	12.0	(5.4)	(45)%	15.9	17.5	(1.6)	(9)%
(+) Net interest	6.9	4.5	2.4	53%	14.9	8.8	6.1	69%
(=) Fee Related Earnings	$137.6	$111.4	$26.2	24%	$230.5	$215.3	$15.2	7%

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Distributable Earnings

The following table provides the components of the changes in Distributable Earnings for the three and six months ended

June 30, 2026:


	Three Months Ended June 30,	Six Months Ended June 30,
	2026 v. 2025
	(Dollars in millions)
Distributable Earnings, June 30, 2025	$120.9	$231.4
Increases (decreases):
Increase in Fee related earnings	26.2	15.2
Increase in Realized net performance revenues	18.7	17.3
Decrease in Realized principal investment income	(5.4)	(1.6)
Increase in Net interest	(2.4)	(6.1)
Total increase	37.1	24.8
Distributable Earnings, June 30, 2026	$158.0	$256.2

Realized net performance revenues. Realized net performance revenues increased $18.7 million for the three months

ended June 30, 2026, as compared to the three months ended June 30, 2025, and increased $17.3 million for the six months

ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily attributable to realizations in CCOF II.

Fee Related Earnings

The following table provides the components of the changes in Fee Related Earnings for the three and six months ended

June 30, 2026:


	Three Months Ended June 30,	Six Months Ended June 30,
	2026 v. 2025
	(Dollars in millions)
Fee Related Earnings, June 30, 2025	$111.4	$215.3
Increases (decreases):
Increase in Fee revenues	55.2	50.0
Increase in Cash-based compensation and benefits	(23.7)	(28.0)
Increase in General, administrative and other indirect expenses	(4.3)	(4.8)
All other changes	(1.0)	(2.0)
Total increase	26.2	15.2
Fee Related Earnings, June 30, 2026	$137.6	$230.5

Fee Revenues. The following table provides the components of the changes in Fee revenues for the periods presented:


	Three Months Ended June 30,	Six Months Ended June 30,
	2026 v. 2025
	(Dollars in millions)
Lower Fund management fees	$(21.4)	$(13.7)
Higher Portfolio advisory and transaction fees, net and other	51.6	35.4
Higher Fee related performance revenues	25.0	28.3
Total increase in Fee revenues	$55.2	$50.0

The decrease in Fund management fees for the three and six months ended June 30, 2026 as compared to the three and six

months ended June 30, 2025 was primarily attributable to $19 million of catch-up subordinated management fees in certain

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aviation funds in 2025, due in part to the collection of insurance proceeds and the sale of collateral in those vehicles, that did

not recur in 2026. This was partially offset by increases in management fees from CCOF III, CTAC, and direct lending

products for the three and six months ended June 30, 2026.

The increase in Portfolio advisory and transaction fees, net and other fees for the three and six months ended June 30,

2026 as compared to the three and six months ended June 30, 2025 was primarily driven by an increase in capital markets fees.

Capital markets fees in the three months ended June 30, 2026 were elevated in part due to approximately $49 million related to

an investment vehicle that raised $5 billion of capital which is earmarked for our next vintage U.S. buyout fund. The

recognition of capital markets fees can be volatile as they are primarily generated by investment activity. See “—Trends

Affecting Our Business” for further discussion on our investment activity and broader market trends.

The increase in Fee related performance revenues for the three and six months ended June 30, 2026 as compared to the

three and six months ended June 30, 2025 was primarily due to the restructuring of certain fee arrangements in our asset-backed

finance products, the impact of which included approximately $19 million of catch-up fees.

Cash-based compensation and benefits expense. Cash-based compensation and benefits expense increased $23.7 million

for the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, and increased $28.0 million

for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily due to increased

headcount to support the growth of the business as well as an increase in fee related compensation.

Fee-earning AUM

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

period.


	As of June 30,
	2026	2025
Global Credit	(Dollars in millions)
Components of Fee-earning AUM(1)
Fee-earning AUM based on capital commitments	$2,549	$2,530
Fee-earning AUM based on invested capital	22,876	20,884
Fee-earning AUM based on collateral balances, at par	42,368	45,062
Fee-earning AUM based on net asset value	4,209	3,512
Fee-earning AUM based on fair value and other(2)	95,628	90,796
Total Fee-earning AUM	$167,630	$162,784
Annualized Management Fee Rate(3)	0.35%	0.36%

(1)For additional information concerning the components of Fee-earning AUM, see “—Key Financial Measures—Operating Metrics.”

(2)Includes the fair value of Fortitude’s general account assets covered by the strategic advisory services agreement and funds with fees

based on gross asset value.

(3)Represents annualized fund management fees divided by the average of the beginning of year and each quarter end’s Fee-earning AUM

in the reporting period. Catch-up management fees were excluded in the calculation of the annualized fund management fees.

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


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
	(Dollars in millions)
Balance, Beginning of Period	$166,438	$160,731	$169,460	$154,186
Inflows(1)	4,605	4,470	7,889	12,281
Outflows (including realizations)(2)	(2,634)	(3,415)	(7,154)	(6,528)
Market Activity & Other(3)	(683)	237	(2,302)	1,702
Foreign Exchange(4)	(96)	761	(263)	1,143
Balance, End of Period	$167,630	$162,784	$167,630	$162,784

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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, incremental fee-earning collateral from new CLO issuances and resets, reinsurance and other transactions at

Fortitude, and gross subscriptions in our vehicles for which management fees are based on net asset value.

(2)Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair

value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has

expired during the period, reductions for funds that are no longer calling for fees, gross redemptions in our evergreen products, and

outflows from our liquid credit products. Realizations for funds earning management fees based on commitments during the period do

not affect Fee-earning AUM.

(3)Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in funds or vehicles based on the

lower of cost or fair value or net asset value, activity of funds with fees based on gross asset value, and changes in the fair value of

Fortitude’s general account assets covered by the strategic advisory services agreement.

(4)Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated

funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the

period end.

Fee-earning AUM was $167.6 billion at June 30, 2026, an increase of 1% from $166.4 billion at March 31, 2026. The net

increase was due to:

•Inflows of $4.6 billion, which were driven by deployment across the platform, including two new-issue CLOs in our

U.S. liquid credit platform, deployment in our opportunistic credit and asset-backed finance funds, and closed block

and flow reinsurance transactions in our insurance strategy.

Offsetting these increases were:

•Outflows of $2.6 billion, driven by outflows from our liquid credit and direct lending products, as well as

realizations across the platform; and

•Negative market activity of $0.7 billion, which primarily reflected a decrease in the fair value of assets covered by

the Fortitude strategic advisory services agreement.

Fee-earning AUM at June 30, 2026 decreased 1% from $169.5 billion at December 31, 2025, due to:

•Outflows of $7.2 billion, which were driven by outflows from our liquid credit products and realizations in our

opportunistic credit funds; and

•Negative market activity of $2.3 billion, which primarily reflected a decrease in the fair value of assets covered by

the Fortitude strategic advisory services agreement.

Offsetting these decreases were:

•Inflows of $7.9 billion, which were driven by deployment across the platform, closed block and flow reinsurance

transactions in our insurance strategy, and the closing of two U.S. CLOs and one European CLO.

Fee-earning AUM at June 30, 2026 increased 3% from $162.8 billion at June 30, 2025, due to:

•Inflows of $22.4 billion, which reflected capital deployment across the platform, including the closing of seven U.S.

CLOs and three European CLOs, deployment across our asset-backed finance, opportunistic credit, and direct

lending funds, and closed block and flow reinsurance transactions in our insurance strategy.

Offsetting this increase were:

•Outflows of $14.5 billion, which included outflows from our liquid credit products and realizations across the

platform; and

•Negative market activity of $2.8 billion, which was primarily driven by a decrease in the fair value of assets covered

by the Fortitude strategic advisory services agreement, partially offset by increases in our cross-platform credit

products.

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Total AUM

The table below provides the period to period rollforward of Total AUM in our Global Credit segment.


	Three Months Ended June 30, 2026	Six Months Ended June 30, 2026
	(Dollars in millions)
Balance, Beginning of Period	$209,495	$211,328
Inflows(1)	5,824	9,730
Outflows (including realizations)(2)	(4,964)	(9,679)
Market Activity & Other(3)	875	36
Foreign Exchange(4)	(111)	(296)
Balance, End of Period	$211,119	$211,119

(1)Inflows generally reflects the impact of gross fundraising, as well as reinsurance and other transactions at Fortitude during the period.

For funds or vehicles denominated in foreign currencies, this reflects translation at the average quarterly rate.

(2)Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and

separately managed accounts, gross redemptions in our 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, related

co-investment vehicles, and separately managed accounts, as well as the impact of fees, expenses and non-investment income, change

in gross asset value for our business development companies, changes in the fair value of Fortitude’s general account assets covered by

the strategic advisory services agreement, and other changes in AUM.

(4)Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated

funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the

period end.

Total AUM was $211.1 billion at June 30, 2026, an increase of 1% compared to $209.5 billion at March 31, 2026. The

net increase was due to:

•Inflows of $5.8 billion, which were driven by the closing of three U.S. CLOs, capital raised in our asset-backed

finance, infrastructure credit, and opportunistic credit products, and closed block and flow reinsurance transactions

in our insurance strategy; and

•Positive market activity of $0.9 billion, primarily from an increase in the fair value of our direct lending,

opportunistic credit, and aviation products, partially offset by a decrease in the fair value of assets covered by the

Fortitude strategic advisory services agreement.

Offsetting these increases were:

•Outflows of $5.0 billion, which primarily reflected outflows from our liquid credit products and realizations across

the platform, notably in our direct lending, aviation, asset-backed finance, and opportunistic credit products.

Total AUM at June 30, 2026 slightly decreased from $211.3 billion at December 31, 2025, due to:

•Outflows of $9.7 billion, including outflows in our liquid credit products and realizations across the platform,

notably in our aviation, direct lending, and asset-backed finance products.

Offsetting this decrease were:

•Inflows of $9.7 billion, which were driven by capital raised in our asset-backed finance strategy, including the first

closing in our asset-backed income fund, the closing of three U.S. CLOs and one European CLO, and closed block

and flow reinsurance transactions in our insurance strategy.

Fund Performance Metrics

Fund performance information for certain of our Global Credit funds is included throughout this discussion and analysis

to facilitate an understanding of our results of operations for the periods presented. The fund return information reflected in this

discussion and analysis is not indicative of the performance of The Carlyle Group Inc. and is also not necessarily indicative of

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the future performance of any particular fund. An investment in The Carlyle Group Inc. is not an investment in any of our

funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.

The following table reflects the performance of our significant carry funds in our Global Credit business. Please see “—

Our Global Investment Offerings” for a legend of the fund acronyms listed below.


(Dollars in millions)				TOTAL INVESTMENTS
				As of June 30, 2026
Fund (Fee Initiation Date/Step-down Date)(1)	Committed Capital(2)	Cumulative Invested Capital (3)	Percent Invested	Realized Value (4)	Remaining Fair Value (5)	MOIC (6)	Gross IRR (7) (8)	Net IRR (8) (9)	Net Accrued Carry/(Giveback) (10)
Global Credit Carry Funds
CCOF III - Levered (Feb 2023 / Oct 2028)	$4,678	$4,697	100%	$925	$4,765	1.2x	25%	16%	$36
CCOF II (Nov 2020 / Mar 2026)	$4,430	$5,950	134%	$5,251	$3,136	1.4x	14%	10%	$99
CCOF I (Nov 2017 / Sep 2022)	$2,373	$3,543	149%	$3,920	$1,275	1.5x	16%	11%	$30
CSP IV (Apr 2016 / Dec 2020)	$2,500	$2,500	100%	$1,822	$1,799	1.4x	9%	5%	$—
CICF II (Mar 2024 / Dec 2029)	$2,011	$474	24%	$211	$298	1.1x	NM	NM	$—
SASOF III (Nov 2014 / n/a)	$833	$991	119%	$1,313	$58	1.4x	19%	12%	$6
All Other Active Funds & Vehicles(11)		$13,942	n/a	$6,871	$11,256	1.3x	12%	10%	$112
Fully Realized Funds & Vehicles(12)(13)		$9,698	n/a	$12,155	$29	1.3x	9%	4%	$—
TOTAL GLOBAL CREDIT CARRY FUNDS		$41,796	n/a	$32,468	$22,617	1.3x	11%	7%	$283

(1)The fund step-down date represents the contractual step-down date under the respective fund agreements for funds on

which the fee basis step-down has not yet occurred. Funds without a listed Fee Initiation Date and Step-down Date have

not yet initiated fees.

(2)All amounts shown represent total capital commitments as of June 30, 2026. Certain of our recent vintage funds are

currently in fundraising and total capital commitments are subject to change. Committed capital for CCOF II excludes

$150 million in capital committed by a CCOF II investor to a side vehicle. The CCOF III platform, which includes

CCOF III - Levered, CCOF III - Unlevered, and CCOF III PSV, collectively has $5.7 billion of committed capital.

(3)Represents the original cost of investments since the inception of the fund. For CSP III and CSP IV, reflects amounts

net of investment level recallable proceeds which is adjusted to reflect recyclability of invested capital for the purpose

of calculating the fund MOIC.