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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 September 30, 2026
OR
 
☐
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
 
Carlyle_Logo_RGB.jpg
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 November 3, 2026, there were 353,914,742 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.
Large accelerated filer
 
☒
  
Accelerated filer
 
☐
Non-accelerated filer
 
☐
  
Smaller reporting company
 
☐
Emerging growth company
 
☐
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  ☒   
1
TABLE OF CONTENTS
 
 
 
Page
Item 1.
Unaudited Condensed Consolidated Financial Statements – September 30, 2026 and
2025:
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 
2
Table of Contents
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.
Terms Used in This Report
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.
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Table of Contents
“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 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.
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“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 or aggregate principal amount of the notes
of our CLOs and other structured products (inclusive of all positions);
(c) the net asset value of certain carry funds and evergreen products;
(d)the fair value of Fortitude’s general account assets 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.
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Table of Contents
“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.
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Table of Contents
PART I – FINANCIAL INFORMATION
 
Item 1. Financial Statements
The Carlyle Group Inc.
Condensed Consolidated Balance Sheets
(Dollars in millions)
September 30,
2026
December 31,
2025
 
(Unaudited)
Assets
Cash and cash equivalents
$1,583.5
$1,970.2
Cash and cash equivalents held at Consolidated Funds
1,021.5
1,235.1
Investments, including accrued performance allocations of $5,801.3 and $7,620.3 as
of September 30, 2026 and December 31, 2025, respectively
9,400.7
11,152.7
Investments of Consolidated Funds
13,709.2
12,519.8
Due from affiliates and other receivables, net
1,015.9
834.8
Due from affiliates and other receivables of Consolidated Funds, net
324.5
206.4
Fixed assets, net
256.6
224.9
Lease right-of-use assets, net
310.6
331.9
Deposits and other
78.8
100.9
Intangible assets, net
408.0
507.1
Deferred tax assets
70.1
32.2
Total assets
$28,179.4
$29,116.0
Liabilities and equity
Debt obligations
$3,016.7
$2,997.0
Loans payable of Consolidated Funds
11,716.0
10,426.0
Accounts payable, accrued expenses and other liabilities
411.3
543.7
Accrued compensation and benefits
4,569.9
5,849.4
Due to affiliates
217.9
203.9
Deferred revenue
358.6
129.2
Deferred tax liabilities
17.9
106.3
Other liabilities of Consolidated Funds
717.4
1,260.4
Lease liabilities
436.9
470.2
Accrued giveback obligations
120.2
72.8
Total liabilities
21,582.8
22,058.9
Commitments and contingencies
Common stock, $0.01 par value, 100,000,000,000 shares authorized (353,695,343
and 357,374,023 shares issued and outstanding as of September 30, 2026 and
December 31, 2025, respectively)
3.6
3.6
Additional paid-in capital
4,666.4
4,285.8
Retained earnings
525.7
1,642.3
Accumulated other comprehensive loss
(194.2)
(170.2)
Non-controlling interests in consolidated entities
1,595.1
1,295.6
Total equity
6,596.6
7,057.1
Total liabilities and equity
$28,179.4
$29,116.0
See accompanying notes.
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Table of Contents
The Carlyle Group Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(Dollars in millions, except share and per share data)
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
Revenues
Fund management fees
$555.4
$583.3
$1,796.4
$1,789.8
Incentive fees
51.6
51.4
202.2
135.1
Investment income (loss)
Performance allocations
(626.6)
(606.7)
(1,263.0)
255.0
Principal investment income
119.3
87.7
252.9
79.8
Total investment income (loss)
(507.3)
(519.0)
(1,010.1)
334.8
Interest and other income
59.4
53.6
175.9
159.2
Interest and other income of Consolidated Funds
175.0
163.4
547.2
459.8
Total revenues
334.1
332.7
1,711.6
2,878.7
Expenses
Compensation and benefits
Cash-based compensation and benefits
196.5
216.2
685.5
673.0
Equity-based compensation
100.8
90.7
336.6
287.1
Performance allocations and incentive fee related compensation
(334.5)
(324.6)
(608.8)
290.4
Total compensation and benefits
(37.2)
(17.7)
413.3
1,250.5
General, administrative and other expenses
193.8
180.7
581.3
559.8
Interest
39.1
29.8
115.9
85.6
Interest and other expenses of Consolidated Funds
192.6
177.3
522.3
461.6
Other non-operating income
—
—
—
(0.1)
Total expenses
388.3
370.1
1,632.8
2,357.4
Other income (loss)
Net investment income (loss) of Consolidated Funds
(22.7)
123.2
(60.9)
176.1
Income (loss) before provision for income taxes
(76.9)
85.8
17.9
697.4
Provision (benefit) for income taxes
(0.1)
(26.7)
11.8
98.2
Net income (loss)
(76.8)
112.5
6.1
599.2
Net income (loss) attributable to non-controlling interests in consolidated entities
(69.1)
111.6
8.9
148.6
Net income (loss) attributable to The Carlyle Group Inc.
$(7.7)
$0.9
$(2.8)
$450.6
Net income (loss) attributable to The Carlyle Group Inc. per common share (see
Note 11)
Basic
$(0.02)
$0.00
$(0.01)
$1.25
Diluted
$(0.02)
$0.00
$(0.01)
$1.22
Weighted-average common shares
Basic
354,291,958
360,065,837
357,067,726
359,965,320
Diluted
354,291,958
376,487,705
357,067,726
369,932,801
Substantially all revenue is earned from affiliates of the Company. See accompanying notes.
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Table of Contents
The Carlyle Group Inc.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
(Dollars in millions)
 
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
Net income (loss)
$(76.8)
$112.5
$6.1
$599.2
Other comprehensive income (loss)
Foreign currency translation adjustments
3.2
(6.8)
(29.6)
145.7
Defined benefit plans
Unrealized loss for the period
(1.9)
(1.4)
(1.6)
(2.0)
Reclassification adjustment for gain during the period, included
in cash-based compensation and benefits expense
—
(0.1)
(0.2)
(0.2)
Other comprehensive income (loss)
1.3
(8.3)
(31.4)
143.5
Comprehensive income (loss)
(75.5)
104.2
(25.3)
742.7
Comprehensive income (loss) attributable to non-controlling
interests in consolidated entities
(66.2)
110.3
1.5
158.8
Comprehensive income (loss) attributable to The Carlyle Group Inc.
$(9.3)
$(6.1)
$(26.8)
$583.9
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 June 30, 2026
353.4
$3.5
$4,557.4
$873.8
$(192.6)
$1,970.7
$7,212.8
Shares repurchased
(2.6)
—
—
(125.0)
—
—
(125.0)
Net shares issued for equity-based awards
2.9
—
—
(85.4)
—
—
(85.4)
Equity-based compensation
—
0.1
103.5
—
—
—
103.6
Dividend-equivalent rights on certain equity-
based awards
—
—
5.5
(5.5)
—
—
—
Contributions
—
—
—
—
—
68.1
68.1
Dividends and distributions
—
—
—
(124.5)
—
(161.9)
(286.4)
Net loss
—
—
—
(7.7)
—
(69.1)
(76.8)
Deconsolidation of Consolidated Entities
—
—
—
—
—
(215.6)
(215.6)
Currency translation adjustments
—
—
—
—
0.3
2.9
3.2
Defined benefit plans, net
—
—
—
—
(1.9)
—
(1.9)
Balance at September 30, 2026
353.7
$3.6
$4,666.4
$525.7
$(194.2)
$1,595.1
$6,596.6
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, 2025
357.4
$3.6
$4,285.8
$1,642.3
$(170.2)
$1,295.6
$7,057.1
Shares repurchased
(10.6)
(0.1)
—
(489.9)
—
—
(490.0)
Net shares issued for equity-based awards
6.9
—
—
(229.3)
—
—
(229.3)
Equity-based compensation
—
0.1
332.8
—
—
—
332.9
Dividend-equivalent rights on certain equity-
based awards
—
—
18.0
(18.0)
—
—
—
Initial consolidation of Consolidated Entities
—
—
—
—
—
544.1
544.1
Contributions
—
—
—
—
—
867.6
867.6
Dividends and distributions
—
—
—
(376.6)
—
(323.0)
(699.6)
Net income (loss)
—
—
—
(2.8)
—
8.9
6.1
Transfer of interests
—
—
29.8
—
—
(29.8)
—
Deconsolidation of Consolidated Entities
—
—
—
—
—
(760.9)
(760.9)
Currency translation adjustments
—
—
—
—
(22.2)
(7.4)
(29.6)
Defined benefit plans, net
—
—
—
—
(1.8)
—
(1.8)
Balance at September 30, 2026
353.7
$3.6
$4,666.4
$525.7
$(194.2)
$1,595.1
$6,596.6
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Table of Contents
Common
Shares
Common
Stock
Additional
Paid-in-
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Non-
controlling
Interests in
Consolidated
Entities
Total
Equity
Balance at June 30, 2025
359.0
$3.6
$4,096.4
$1,950.0
$(189.5)
$857.1
$6,717.6
Shares repurchased
(1.6)
(0.1)
—
(99.9)
—
—
(100.0)
Net shares issued for equity-based awards
2.7
—
—
(102.7)
—
—
(102.7)
Equity-based compensation
—
0.1
94.3
—
—
—
94.4
Dividend-equivalent rights on certain equity-
based awards
—
—
4.0
(4.0)
—
—
—
Contributions
—
—
—
—
—
367.8
367.8
Dividends and distributions
—
—
—
(126.5)
—
(109.7)
(236.2)
Net income
—
—
—
0.9
—
111.6
112.5
Currency translation adjustments
—
—
—
—
(5.5)
(1.3)
(6.8)
Defined benefit plans, net
—
—
—
—
(1.5)
—
(1.5)
Balance at September 30, 2025
360.1
$3.6
$4,194.7
$1,617.8
$(196.5)
$1,225.5
$6,845.1
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
(4.3)
(0.1)
—
(224.9)
—
—
(225.0)
Net shares issued for equity-based awards
7.2
—
—
(257.8)
—
—
(257.8)
Equity-based compensation
—
0.1
290.7
—
—
—
290.8
Dividend-equivalent rights on certain equity-
based awards
—
—
11.7
(11.7)
—
—
—
Initial consolidation of a Consolidated Entity
—
—
—
—
—
35.0
35.0
Contributions
—
—
—
—
—
599.1
599.1
Dividends and distributions
—
—
—
(379.2)
—
(308.1)
(687.3)
Net income
—
—
—
450.6
—
148.6
599.2
Currency translation adjustments
—
—
—
—
135.5
10.2
145.7
Defined benefit plans, net
—
—
—
—
(2.2)
—
(2.2)
Balance at September 30, 2025
360.1
$3.6
$4,194.7
$1,617.8
$(196.5)
$1,225.5
$6,845.1
See accompanying notes.
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Table of Contents
The Carlyle Group Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in millions)
 
Nine Months Ended September 30,
 
2026
2025
Cash flows from operating activities
Net income
$6.1
$599.2
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization
153.8
143.1
Equity-based compensation
336.6
287.1
Non-cash performance allocations and incentive fees, net
686.7
13.1
Non-cash principal investment (income) loss
(241.2)
(50.2)
Other non-cash amounts
(2.5)
35.9
Consolidated Funds related:
Realized/unrealized (gain) loss on investments of Consolidated Funds
156.3
(100.1)
Realized/unrealized (gain) loss from loans payable of Consolidated Funds
(95.4)
(76.0)
Purchases of investments by Consolidated Funds
(8,355.0)
(8,990.3)
Proceeds from sales and settlements of investments by Consolidated Funds
6,495.1
5,169.3
Non-cash interest income, net
(13.9)
(13.0)
Change in cash and cash equivalents held at Consolidated Funds
462.2
317.1
Change in other receivables held at Consolidated Funds
(101.4)
(8.0)
Change in other liabilities held at Consolidated Funds
(421.7)
65.3
Purchases of investments
(340.2)
(251.1)
Proceeds from the sale of investments
561.4
664.0
Payments of contingent consideration
(14.8)
(2.7)
Change in deferred taxes, net
(109.0)
(67.5)
Change in due from affiliates and other receivables
0.9
(8.7)
Change in deposits and other
19.8
(25.4)
Change in accounts payable, accrued expenses and other liabilities
(116.9)
37.8
Change in accrued compensation and benefits
(187.4)
(61.4)
Change in due to affiliates
20.6
25.1
Change in lease right-of-use assets and lease liabilities
(11.7)
(9.7)
Change in deferred revenue
229.8
226.7
Net cash used in operating activities
(881.8)
(2,080.4)
Cash flows from investing activities
Purchases of fixed assets, net
(87.5)
(57.4)
Net cash used in investing activities
(87.5)
(57.4)
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Nine Months Ended September 30,
 
2026
2025
Cash flows from financing activities
Issuance of 5.05% senior notes due 2035, net of financing costs
—
792.9
Payments on CLO borrowings
(67.9)
(52.0)
Proceeds from CLO borrowings, net of financing costs
97.9
64.8
Net borrowings on loans payable of Consolidated Funds
1,336.9
2,755.1
Dividends to common shareholders
(376.6)
(379.2)
Contributions from non-controlling interest holders
867.6
599.1
Distributions to non-controlling interest holders
(323.0)
(308.1)
Common shares repurchased and net share settlement of equity-based awards
(719.3)
(482.8)
Change in due to/from affiliates financing activities
(212.1)
25.6
Net cash provided by financing activities
603.5
3,015.4
Effect of foreign exchange rate changes
(23.5)
82.3
Increase (decrease) in cash, cash equivalents and restricted cash
(389.3)
959.9
Cash, cash equivalents and restricted cash, beginning of period
1,973.6
1,266.5
Cash, cash equivalents and restricted cash, end of period
$1,584.3
$2,226.4
Supplemental non-cash disclosures
Initial consolidation of Consolidated Funds
$649.3
$55.0
Net asset impact of deconsolidation of Consolidated Funds
$(873.4)
$(512.5)
Reconciliation of cash, cash equivalents and restricted cash, end of period:
Cash and cash equivalents
$1,583.5
$2,221.7
Restricted cash
0.8
4.7
Total cash, cash equivalents and restricted cash, end of period
$1,584.3
$2,226.4
Cash and cash equivalents held at Consolidated Funds
$1,021.5
$1,037.3
See accompanying notes.
13
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
1. Organization
The Carlyle Group Inc., together with its consolidated subsidiaries (“Carlyle” or the “Company”), 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). Carlyle typically serves as the general partner, investment manager, or collateral manager,
making day-to-day investment decisions concerning the assets of the products within these segments.
The Carlyle Group Inc. was formed in Delaware as a partnership on July 18, 2011. On January 1, 2020, the
Company completed its 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”).
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
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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 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 September 30, 2026, assets and liabilities of the consolidated VIEs reflected in the condensed
consolidated balance sheets were $15.0 billion and $12.4 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 September 30, 2026, the Company held
$534.3 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 September 30, 2026, the
Company held $980.0 million 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
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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.
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
 
September 30, 2026
December 31, 2025
 
(Dollars in millions)
Investments
$668.9
$776.5
Accrued performance allocations
832.6
756.0
Management fee receivables
49.8
57.2
Total
$1,551.3
$1,589.7
These amounts represent the Company’s maximum exposure to loss related to the unconsolidated VIEs as of
September 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
16
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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.
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.
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
•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, ETAC, CPEP, 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%. 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 $27.7 million and $21.1
million for the three months ended September 30, 2026 and 2025, respectively, and $185.5 million and $143.6
million for the nine months ended September 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.
18
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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 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. See Note 7, Commitments and Contingencies, for additional
information on the Company’s 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 is included in interest and other income of Consolidated Funds in the
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
accompanying condensed consolidated statements of operations. See Note 4, Investments, for additional
information on investments of Consolidated Funds.
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.
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.
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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
September 30, 2026 and December 31, 2025, the Company recorded a liability of $4.0 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, local, 
and foreign 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 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.
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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 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
22
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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 – Where available, 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. Where such
pricing is not available or reliable, 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 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
23
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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 fulfill its obligations and if balances held at a financial institution exceed insured
limits.
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 that is subject to legal, regulatory, or contractual restrictions on its
withdrawal or use for general operating purposes, as well as certain amounts held on behalf of Carlyle funds. As of
September 30, 2026 and December 31, 2025, the Company held restricted cash of $0.8 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.
24
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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 September 30, 2026, $358.6 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
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
25
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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 September 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 September
30, 2026 and 2025, and $98.4 million and $98.2 million for the nine months ended September 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 nine
months ended September 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) comprises 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 September 30, 2026 and December 31, 2025 were as
follows:
 
As of
 
September 30, 2026
December 31, 2025
 
(Dollars in millions)
Currency translation adjustments
$(194.9)
$(172.7)
Unrealized gains on defined benefit plans
0.7
2.5
Total
$(194.2)
$(170.2)
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
$1.0 million and $2.9 million for the three months ended September 30, 2026 and 2025, respectively, and
$3.9 million and $(22.2) million for the nine months ended September 30, 2026 and 2025, respectively, are included
in general, administrative and other expenses in the condensed consolidated statements of operations.
26
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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.
In September 2026, the FASB issued ASU 2026-03, Investment Companies with Equity Securities Subject to
Contractual Sale Restrictions, which changes how investment companies in the scope of ASC 946, Financial
Services — Investment Companies, measure the fair value of an equity security that is subject to a contractual
restriction that prohibits the sale of the security. The guidance is effective for annual reporting periods beginning
after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted,
and the amendments in this update are required to be applied on a prospective 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
September 30, 2026:
(Dollars in millions)
Level I
Level II
Level III
Total
Assets
Investments of Consolidated Funds(1):
Equity securities(2)
$47.1
$18.7
$1,174.0
$1,239.8
Bonds
—
—
760.2
760.2
Loans
—
—
10,033.9
10,033.9
47.1
18.7
11,968.1
12,033.9
Investments in CLOs and other:
Investments in CLOs
—
—
293.3
293.3
Other investments(3)
89.7
20.2
19.0
128.9
Subtotal
$136.8
$38.9
$12,280.4
$12,456.1
Investments measured at net asset value
1,683.3
Total
$14,139.4
Liabilities
Loans payable of Consolidated Funds(4)(5)
$—
$—
$10,755.3
$10,755.3
Foreign currency forward contracts
—
2.0
—
2.0
Total
$—
$2.0
$10,755.3
$10,757.3
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
(1)This balance excludes $1.7 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 $773.6 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 September 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 $97.8 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 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 $926.7 million of senior notes measured at amortized cost and a
$33.9 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.
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
(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.
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 September 30, 2026
 
Investments of Consolidated Funds
 
 
 
Equity
securities
Bonds
Loans
Investments
in CLOs
Other
investments
Total
Balance, beginning of period
$981.8
$720.7
$9,502.2
$321.0
$20.0
$11,545.7
Initial consolidation of funds(1)
(7.4)
20.0
533.9
(1.0)
—
545.5
Purchases
374.8
186.4
1,631.9
13.1
—
2,206.2
Sales and distributions
(159.6)
(159.8)
(1,206.1)
(35.8)
—
(1,561.3)
Settlements
—
—
(378.6)
—
—
(378.6)
Realized and unrealized gains (losses), net
Included in earnings
(15.6)
(3.0)
(25.9)
0.1
(1.0)
(45.4)
Included in other comprehensive income
—
(4.1)
(23.5)
(4.1)
—
(31.7)
Balance, end of period
$1,174.0
$760.2
$10,033.9
$293.3
$19.0
$12,280.4
Changes in unrealized gains (losses) included in
earnings related to financial assets still held at the
reporting date
$0.7
$(2.8)
$(3.6)
$0.6
$(1.0)
$(6.1)
Changes in unrealized gains (losses) included in other
comprehensive income related to financial assets still
held at the reporting date
$—
$(4.2)
$(36.2)
$(4.0)
$—
$(44.4)
Financial Assets
Nine Months Ended September 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)
(34.6)
14.1
(261.5)
13.7
—
(268.3)
Purchases
716.7
456.3
6,634.8
35.9
12.5
7,856.2
Sales and distributions
(482.3)
(369.6)
(4,194.9)
(93.5)
(86.9)
(5,227.2)
Settlements
—
—
(1,154.3)
—
—
(1,154.3)
Realized and unrealized gains (losses), net
Included in earnings
(120.6)
(11.5)
(125.1)
(2.0)
(1.2)
(260.4)
Included in other comprehensive income
—
(20.3)
(114.9)
(9.8)
—
(145.0)
Balance, end of period
$1,174.0
$760.2
$10,033.9
$293.3
$19.0
$12,280.4
Changes in unrealized gains (losses) included in
earnings related to financial assets still held at the
reporting date
$(110.2)
$(11.8)
$(70.1)
$(1.3)
$(1.0)
$(194.4)
Changes in unrealized gains (losses) included in other
comprehensive income related to financial assets still
held at the reporting date
$—
$(12.6)
$(113.9)
$(9.9)
$—
$(136.4)
(1)As a result of the initial consolidation of two funds during the three months ended September 30, 2026.
(2)As a result of the initial consolidation of three funds and deconsolidation of five funds during the nine months ended
September 30, 2026.
29
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
Financial Assets
Three Months Ended September 30, 2025
Investments of Consolidated Funds
Equity
securities
Bonds
Loans
Investments
in CLOs
Other
investments
Total
Balance, beginning of period
$910.1
$569.7
$7,964.7
$366.9
$66.3
$9,877.7
Initial consolidation/deconsolidation of funds(1)
—
(87.7)
(920.6)
(0.7)
—
(1,009.0)
Purchases
78.6
253.0
3,601.0
27.7
0.6
3,960.9
Sales and distributions
(11.1)
(102.8)
(2,023.6)
(18.8)
(58.2)
(2,214.5)
Settlements
—
—
(529.3)
—
—
(529.3)
Realized and unrealized gains (losses), net
Included in earnings
(34.1)
2.5
(1.8)
10.1
(2.0)
(25.3)
Included in other comprehensive income
—
(0.1)
(0.9)
(4.5)
—
(5.5)
Balance, end of period
$943.5
$634.6
$8,089.5
$380.7
$6.7
$10,055.0
Changes in unrealized gains (losses) included in
earnings related to financial assets still held at the
reporting date
$(39.2)
$1.0
$(1.0)
$8.3
$(4.7)
$(35.6)
Changes in unrealized gains (losses) included in other
comprehensive income related to financial assets still
held at the reporting date
$—
$0.1
$0.6
$(3.9)
$—
$(3.2)
Financial Assets
Nine Months Ended September 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)
—
(140.3)
(1,176.7)
23.5
—
(1,293.5)
Transfer out related to the Exchange(3)
—
—
—
—
(50.4)
(50.4)
Purchases
406.4
536.2
7,119.7
30.9
60.6
8,153.8
Sales and distributions
(39.6)
(287.1)
(3,354.0)
(100.6)
(89.4)
(3,870.7)
Settlements
—
(0.6)
(1,238.4)
—
—
(1,239.0)
Realized and unrealized gains (losses), net
Included in earnings
4.7
6.4
(62.7)
23.9
0.8
(26.9)
Included in other comprehensive income
—
54.9
370.2
24.1
—
449.2
Balance, end of period
$943.5
$634.6
$8,089.5
$380.7
$6.7
$10,055.0
Changes in unrealized gains (losses) included in
earnings related to financial assets still held at the
reporting date
$(1.9)
$2.8
$(49.1)
$22.8
$1.0
$(24.4)
Changes in unrealized gains (losses) included in other
comprehensive income related to financial assets still
held at the reporting date
$—
$26.3
$193.0
$24.7
$—
$244.0
(1)As a result of the initial consolidation of three funds and deconsolidation of one fund during the three months ended
September 30, 2025.
(2)As a result of the initial consolidation of four funds and deconsolidation of two funds during the nine months ended
September 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.
 
30
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 September 30,
 
2026
2025
Balance, beginning of period
$9,837.2
$7,923.0
Initial consolidation/deconsolidation of funds(1)
582.5
(521.3)
Borrowings
3,879.7
3,446.7
Paydowns
(1,715.5)
(713.9)
Sales
(1,770.4)
(1,890.5)
Realized and unrealized (gains) losses, net
Included in earnings
(31.7)
(34.7)
Included in other comprehensive income
(26.5)
(0.6)
Balance, end of period
$10,755.3
$8,208.7
Changes in unrealized (gains) losses included in earnings related
to financial liabilities still held at the reporting date
$(30.3)
$(21.4)
Changes in unrealized (gains) losses included in other
comprehensive income related to financial liabilities still held at the
reporting date
$(67.4)
$1.9
Financial Liabilities
Loans Payable of Consolidated Funds
 
Nine Months Ended September 30,
 
2026
2025
Balance, beginning of period
$9,423.1
$6,809.1
Initial consolidation/deconsolidation of funds(2)
177.1
(801.4)
Borrowings
7,986.9
5,659.0
Paydowns
(3,355.1)
(1,555.5)
Sales
(3,252.7)
(2,243.7)
Realized and unrealized (gains) losses, net
Included in earnings
(95.4)
(74.0)
Included in other comprehensive income
(128.6)
415.2
Balance, end of period
$10,755.3
$8,208.7
Changes in unrealized (gains) losses included in earnings related
to financial liabilities still held at the reporting date
$(71.3)
$(35.9)
Changes in unrealized (gains) losses included in other
comprehensive income related to financial liabilities still held at the
reporting date
$(197.3)
$452.4
(1)As a result of the initial consolidation of one fund during the three months ended September 30, 2026, and the
initial consolidation of three funds and deconsolidation of one fund during the three months ended September 30,
2025.
(2)As a result of the initial consolidation of four funds and the deconsolidation of four funds during the nine months
ended September 30, 2026, and the initial consolidation of four funds and deconsolidation of two funds during
the nine months ended September 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 assets and liabilities are
included in accumulated other comprehensive loss and non-controlling interests in consolidated entities.
31
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
September 30, 2026:
Fair Value at
Valuation Technique(s)
Unobservable Input(s)
Range
(Weighted Average)
Impact to
Valuation
from
Increase in
Input
(Dollars in millions)
September 30,
2026
Assets
Investments of
Consolidated Funds:
Equity securities
$1.9
Consensus Pricing
Indicative Quotes ($ per
share)
0.00 - 547.56
(467.64)
Higher
755.1
Discounted Cash Flow
Discount Rates
0% - 19% (11%)
Lower
Terminal Growth Rate
0% - 11% (3%)
Higher
Comparable Multiple
EBITDA Multiple
1.2x - 22.7x (13.8x)
Higher
Revenue Multiple
2.8x - 8.6x (5.9x)
Higher
235.7
Discounted Cash Flow
Discount Rates
7% - 24% (14%)
Lower
Constant Prepayment Rate
6% - 18% (8%)
Lower
Constant Default Rate
0% - 5% (1%)
Lower
181.3
Other(1)
N/A
N/A
N/A
Bonds
760.2
Consensus Pricing
Indicative Quotes (% of Par)
58 - 101 (95)
Higher
Loans
9,755.0
Consensus Pricing
Indicative Quotes (% of Par)
1 - 101 (97)
Higher
277.2
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
11,968.1
Investments in CLOs:
Senior secured
notes
255.9
Consensus Pricing with
Discounted Cash Flow
Indicative Quotes (% of Par)
80 - 102 (100)
Higher
Discount Margins (Basis
Points)
85 - 1,450 (217)
Lower
Default Rates
2% - 2% (2%)
Lower
Recovery Rates
60% - 60% (60%)
Higher
Subordinated notes
and preferred shares
37.4
Consensus Pricing with
Discounted Cash Flow
Indicative Quotes (% of Par)
1 - 82 (28)
Higher
Discount Rates
8% - 19% (11%)
Lower
Default Rates
1% - 2% (2%)
Lower
Recovery Rates
60% - 60% (60%)
Higher
Other investments:
Aviation
subordinated notes
6.5
Discounted Cash Flow
Discount Rates
21% - 21% (21%)
Lower
12.5
Other(1)
N/A
N/A
N/A
Total
$12,280.4
Liabilities
Loans payable of 
Consolidated Funds:
Senior secured
notes
$10,172.2
Other(2)
N/A
N/A
N/A
Subordinated notes
and preferred shares
355.1
Consensus Pricing with
Discounted Cash Flow
Indicative Quotes (% of Par)
3 - 90 (62)
Higher
Discount Rates
7% - 14% (10%)
Lower
Default Rates
1% - 2% (2%)
Lower
Recovery Rates
60% - 60% (60%)
Higher
228.0
Other(1)
N/A
N/A
Total
$10,755.3
32
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.
The following table summarizes quantitative information about the Company’s Level III inputs as of
December 31, 2025:
Fair Value at
Valuation
Technique(s)
Unobservable Input(s)
Range
(Weighted
Average)
Impact to
Valuation
from
Increase in
Input
(Dollars in millions)
December 31,
2025
Assets
Investments of Consolidated
Funds:
Equity securities
$1.4
Consensus Pricing
Indicative Quotes ($ per
share)
0.00 - 20.38 (0.19)
Higher
789.2
Discounted Cash Flow
Discount Rates
7% - 19% (11%)
Lower
Terminal Growth Rate
1% - 11% (4%)
Higher
Comparable Multiple
EBITDA Multiple
1.5x - 23.8x (12.0x)
Higher
Revenue Multiple
2.8x - 2.8x (2.8x)
Higher
TCF Multiple
22.3x - 22.3x
(22.3x)
Higher
112.3
Discounted Cash Flow
Discount Rates
7% - 20% (12%)
Lower
Constant Prepayment Rate
6% - 16% (9%)
Lower
Constant Default Rate
0% - 6% (1%)
Lower
Recovery Rate
0% - 40% (21%)
Higher
191.9
Other(1)
N/A
N/A
N/A
Bonds
691.2
Consensus Pricing
Indicative Quotes (% of Par)
12 - 106 (96)
Higher
Loans
9,028.5
Consensus Pricing
Indicative Quotes (% of Par)
0 - 101 (98)
Higher
216.0
Discounted Cash Flow
Discount Rates
6% - 16% (9%)
Lower
3.5
Discounted Cash Flow
Discount Rates
14% - 14% (14%)
Lower
Constant Prepayment Rate
8% - 14% (11%)
Lower
Constant Default Rate
2% - 2% (2%)
Lower
Other
1.8
Other(1)
N/A
N/A
N/A
11,035.8
Investments in CLOs
Senior secured notes
303.3
Discounted Cash Flow
with Consensus
Pricing
Indicative Quotes (% of Par)
92 - 101 (100)
Higher
Discount Margins (Basis
Points)
80 - 1,060 (204)
Lower
Default Rates
2% - 2% (2%)
Lower
Recovery Rates
60% - 60% (60%)
Higher
Subordinated notes and
preferred shares
45.7
Discounted Cash Flow
with Consensus
Pricing
Indicative Quotes (% of Par)
0 - 87 (38)
Higher
Discount Rate
0% - 31% (10%)
Lower
Default Rates
1% - 2% (2%)
Lower
Recovery Rates
60% - 60% (60%)
Higher
Other investments:
Aviation subordinated
notes
7.5
Discounted Cash Flow
Discount Rates
21% - 21% (21%)
Lower
Loans
37.6
Discounted Cash Flow
Discount Rates
6% - 10% (9%)
Lower
Consensus Pricing
Indicative Quotes (% of Par)
100 - 100 (100)
Higher
49.5
Other(1)
N/A
N/A
N/A
Total
$11,479.4
33
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
Fair Value at
Valuation
Technique(s)
Unobservable Input(s)
Range
(Weighted
Average)
Impact to
Valuation
from
Increase in
Input
(Dollars in millions)
December 31,
2025
Liabilities
Loans payable of
Consolidated Funds:
Senior secured notes
$9,032.2
Other(2)
N/A
N/A
N/A
Subordinated notes and
preferred shares
390.9
Discounted Cash Flow
with Consensus
Pricing
Indicative Quotes (% of Par)
10 - 84 (51)
Higher
Discount Rates
5% - 24% (9%)
Lower
Default Rates
1% - 2% (2%)
Lower
Recovery Rates
60% - 60% (60%)
Higher
Total
$9,423.1
(1)Fair value approximates transaction price that was in close proximity to the reporting date.
(2)Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO
financial assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any
beneficial interests that represent compensation for services.
4. Investments
Investments consist of the following: 
 
As of
 
September 30, 2026
December 31, 2025
 
(Dollars in millions)
Accrued performance allocations
$5,801.3
$7,620.3
Principal equity method investments, excluding performance allocations
3,069.4
2,879.5
Principal investments in CLOs
293.3
349.0
Other investments
236.7
303.9
Total
$9,400.7
$11,152.7
Accrued Performance Allocations
The components of accrued performance allocations are as follows:
 
As of
 
September 30, 2026
December 31, 2025
 
(Dollars in millions)
Global Private Equity
$3,164.8
$5,021.1
Global Credit
918.5
724.6
Carlyle AlpInvest
1,718.0
1,874.6
Total
$5,801.3
$7,620.3
Approximately 12% of accrued performance allocations at September 30, 2026 were related to Carlyle
Partners VIII, L.P., one of the Company’s Global Private Equity funds. Approximately 24% of accrued performance
allocations at December 31, 2025 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:
34
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
 
As of
 
September 30, 2026
December 31, 2025
 
(Dollars in millions)
Global Private Equity
$(94.7)
$(47.3)
Global Credit
(25.5)
(25.5)
Total
$(120.2)
$(72.8)
Principal Equity Method Investments, Excluding Performance Allocations
The Company’s principal equity method investments (excluding performance allocations) include its fund
investments in Global Private Equity, Global Credit, and Carlyle AlpInvest typically as general partner interests, and
its investments in Fortitude through a Carlyle-affiliated fund (included within Global Credit) and NGP (included within
Global Private Equity), which are not consolidated. Principal investments are related to the following segments:
 
As of
 
September 30, 2026
December 31, 2025
 
(Dollars in millions)
Global Private Equity(1)
$1,460.5
$1,384.4
Global Credit(2)
1,185.0
1,151.9
Carlyle AlpInvest
423.9
343.2
Total
$3,069.4
$2,879.5
(1)The balance includes $640.9 million and $616.0 million as of September 30, 2026 and December 31, 2025,
respectively, related to the Company’s equity method investments in NGP.
(2)The balance includes $743.0 million and $722.4 million as of September 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 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 September 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 $743.0 million, relative to equity invested of
$666.8 million.
Fortitude declared and paid dividends of $300.0 million in each of September 2026 and 2025, of which
$31.3 million and $31.4 million, respectively, were distributed to the Company from Carlyle FRL and recognized as
realized principal investment income in the condensed consolidated statements of operations for the three and nine
months ended September 30, 2026 and 2025.
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 September 30,
2026, Fortitude, its affiliates and certain Fortitude reinsurance counterparties have committed approximately
$27.4 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.
35
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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 September 30, 2026 and December 31, 2025 are as follows:
As of
September 30, 2026
December 31, 2025
(Dollars in millions)
Investment in NGP Management
$220.6
$247.4
Investments in NGP general partners - accrued performance allocations
377.1
326.2
Principal investments in NGP funds
43.2
42.4
Total investments in NGP
$640.9
$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 nine months ended September 30, 2025 included a
$92.5 million impairment of the Company’s 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 nine
months ended September 30, 2026 and 2025 related to its investment in NGP Management were as follows:
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Management fee related revenues from NGP Management
$13.4
$15.0
$42.0
$46.5
Expenses related to the investment in NGP Management
(2.8)
(3.6)
(8.4)
(10.8)
Amortization of basis differences and impairment of investment in NGP
Management
(8.3)
(8.7)
(25.5)
(110.0)
Net investment income (loss) from NGP Management
$2.3
$2.7
$8.1
$(74.3)
Management fee related revenues from NGP Management were primarily driven by NGP XI, NGP XII, and
NGP XIII during the three and nine months ended September 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 entitles 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
36
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
consolidated statements of operations. The Company recognized net investment earnings (losses) related to these
performance allocations of $49.8 million and $23.8 million for the three months ended September 30, 2026 and
2025, respectively, and $132.1 million and $22.9 million for the nine months ended September 30, 2026 and 2025,
respectively, in its condensed consolidated statements of operations. The nine months ended September 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 $7.0 million and $3.3 million for the three
months ended September 30, 2026 and 2025, respectively, and $18.2 million and $8.8 million for the nine months
ended September 30, 2026 and 2025, respectively.
Principal Investments in CLOs and Other Investments
Principal investments in CLOs as of September 30, 2026 and December 31, 2025 were $293.2 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
September 30, 2026 and December 31, 2025, other investments included the Company’s investment in common
shares of CGBD at fair value of $33.3 million and $37.5 million, respectively.
Investment Income (Loss)
The components of investment income (loss) are as follows:
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Performance allocations
Realized
$211.6
$49.4
$569.0
$499.0
Unrealized
(838.2)
(656.1)
(1,832.0)
(244.0)
(626.6)
(606.7)
(1,263.0)
255.0
Principal investment income (loss) from equity method
investments (excluding performance allocations)
Realized
144.6
59.6
195.4
208.5
Unrealized
(29.1)
8.4
67.1
(147.8)
115.5
68.0
262.5
60.7
Principal investment income (loss) from investments in CLOs and
other investments
Realized
3.1
1.1
6.9
0.7
Unrealized
0.7
18.6
(16.5)
18.4
3.8
19.7
(9.6)
19.1
Total
$(507.3)
$(519.0)
$(1,010.1)
$334.8
37
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
The performance allocations included in revenues are derived from the following segments: 
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Global Private Equity
$(669.0)
$(781.4)
$(1,468.9)
$(219.5)
Global Credit
128.7
93.3
268.0
223.1
Carlyle AlpInvest
(86.3)
81.4
(62.1)
251.4
Total
$(626.6)
$(606.7)
$(1,263.0)
$255.0
The following tables summarize the funds that are the primary drivers of performance allocations for the three
and nine months ended September 30, 2026 and 2025, as well as the total revenue recognized, including
performance allocations, fund management fees and principal investment income:
Three Months Ended September 30, 2026
Nine Months Ended September 30, 2026
(Dollars in millions)
(Dollars in millions)
Global Private
Equity
Carlyle Partners VII, L.P.
$(783.0)
Global Private
Equity
Carlyle Partners VII, L.P.
$(1,770.8)
Three Months Ended September 30, 2025
Nine Months Ended September 30, 2025
(Dollars in millions)
(Dollars in millions)
Global Private
Equity
Carlyle Asia Partners V,
L.P.
$(257.2)
Global Private
Equity
Carlyle Partners VII, L.P.
$(110.2)
Global Private
Equity
Carlyle Partners VII, L.P.
$(557.9)
Global Private
Equity
Carlyle Asia Partners V,
L.P.
$(197.4)
Carlyle’s income (loss) from its principal equity method investments consists of:
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Global Private Equity
$82.0
$39.4
$201.5
$(13.0)
Global Credit
10.2
12.8
25.3
31.5
Carlyle AlpInvest
23.3
15.8
35.7
42.2
Total
$115.5
$68.0
$262.5
$60.7
Investments of Consolidated Funds
The Company consolidates the financial positions and results of operations of certain CLOs in which it is the
primary beneficiary. During the nine months ended September 30, 2026, the Company became the primary
beneficiary of six additional CLOs. Investments in Consolidated Funds as of September 30, 2026 and December 31,
2025 also included $773.6 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.
38
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
Interest and Other Income of Consolidated Funds
The components of interest and other income of Consolidated Funds are as follows:
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Interest income from investments
$163.2
$146.9
$503.0
$412.4
Other income
11.8
16.5
44.2
47.4
Total
$175.0
$163.4
$547.2
$459.8
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
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Gains (losses) from investments of Consolidated Funds
$(54.3)
$88.5
$(156.3)
$100.1
Gains from liabilities of consolidated CLOs
31.6
34.7
95.4
76.0
Total
$(22.7)
$123.2
$(60.9)
$176.1
The following table presents realized and unrealized gains (losses) earned from investments of the
Consolidated Funds (including consolidated CLOs):
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Net realized gains
$52.3
$58.5
$10.7
$33.6
Net change in unrealized gains (losses)
(106.6)
30.0
(167.0)
66.5
Total
$(54.3)
$88.5
$(156.3)
$100.1
39
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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:
As of
 
September 30, 2026
December 31, 2025
 
Borrowing
Outstanding
Carrying
Value
Borrowing
Outstanding
Carrying
Value
(Dollars in millions)
CLO Borrowings
$370.4
$367.7
$350.1
$349.4
3.500% Senior Notes Due 9/19/2029
425.0
423.7
425.0
423.4
5.050% Senior Notes Due 9/19/2035
800.0
791.8
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
486.2
500.0
485.9
Total debt obligations
$3,045.4
$3,016.7
$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 September 30, 2026, the interest rate was 5.01%). The Company made no borrowings under
the revolving credit facility during the three and nine months ended September 30, 2026 and 2025, and there was
no amount outstanding as of September 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 amended in August 2026 to
extend the maturity date to August 18, 2027. 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 nine
months ended September 30, 2026 and 2025, the Company made no borrowings under the Global Credit Revolving
Credit Facility. As of September 30, 2026, there was no borrowing outstanding under the Global Credit Revolving
Credit Facility.
40
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
CLO Borrowings
For certain of the Company’s CLOs, the Company finances a portion of its investment in the CLOs through the
proceeds received from term loans and other financing arrangements with financial institutions. The following table
provides information regarding total outstanding CLO borrowings as of September 30, 2026 and December 31,
2025 (Dollars in millions):
 
As of September 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
$370.4
5.07%
10.72
$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 September 30, 2026 and 2025 was $4.6 million and $3.7
million, respectively. Interest expense for the nine months ended September 30, 2026 and 2025 was $12.6 million
and $11.5 million, respectively. The fair value of the outstanding balance of the CLO term loans at September 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 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 September 30, 2026,
$358.6 million was outstanding under the CLO Financing Facilities, which includes €296.0 million ($335.6 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.
41
Table of Contents
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
Aggregate
Principal
Amount
Fair Value (1)
As of
Three Months
Ended
September 30,
Nine Months
Ended
September 30,
September
30, 2026
December
31, 2025
2026
2025
2026
2025
3.500% Senior Notes Due 9/19/2029 (2)
$425.0
$400.3
$417.8
$3.8
$3.8
$11.5
$11.5
5.050% Senior Notes Due 9/19/2035 (3)
800.0
726.3
800.9
10.3
1.3
31.0
1.3
5.625% Senior Notes Due 3/30/2043 (4)
600.0
533.3
600.7
8.4
8.4
25.3
25.3
5.650% Senior Notes Due 9/15/2048 (5)
350.0
307.6
347.5
4.9
4.9
14.9
14.9
$27.4
$18.4
$82.7
$53.0
(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 September 30, 2026 and December 31, 2025, the fair value of the Subordinated Notes was
$301.4 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 September 30, 2026 and 2025,
the Company incurred $5.8 million of interest expense on the Subordinated Notes. For both the nine months ended
September 30, 2026 and 2025, the Company incurred $17.6 million of interest expense on the Subordinated Notes.
42
Table of Contents
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 September 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 September 30, 2026 and December 31, 2025, the following borrowings were outstanding (Dollars in
millions):
 
As of September 30, 2026
 
Borrowing
Outstanding
Fair Value
Weighted
Average
Interest Rate
 
Weighted
Average
Remaining
Maturity in
Years
Senior secured notes(1)
$11,120.6
$11,099.0
5.05%
11.87
Subordinated notes
449.1
355.1
N/A
(3)
10.44
Revolving credit facilities(2)
261.9
261.9
4.74%
0.46
Total
$11,831.6
$11,716.0
 
 
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 September 30, 2026 includes $937.5 million of senior secured notes that are measured at
amortized cost, which approximates fair value. Fair Value as of September 30, 2026 and December 31, 2025 includes
the carrying value of these notes of $926.7 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 September 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
September 30, 2026 and December 31, 2025, total assets of the CLOs were $11.8 billion and $11.0 billion,
respectively.
43
Table of Contents
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
 
September 30, 2026
December 31, 2025
 
(Dollars in millions)
Accrued performance allocations and incentive fee related compensation
$4,037.7
$5,111.8
Accrued bonuses
192.7
294.5
Realized performance allocations and incentive fee related compensation not yet
paid
210.4
315.1
Other
129.1
128.0
Total
$4,569.9
$5,849.4
The following table presents realized and unrealized performance allocations and incentive fee related
compensation: 
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Realized
$203.3
$62.9
$492.2
$505.2
Unrealized
(537.8)
(387.5)
(1,101.0)
(214.8)
Total
$(334.5)
$(324.6)
$(608.8)
$290.4
7. Commitments and Contingencies
Capital Commitments
The Company and its unconsolidated affiliates have unfunded commitments totaling $4.3 billion as of
September 30, 2026, of which approximately $3.2 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 September 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 September 30, 2026, the
Company had no material outstanding guarantees under the credit facilities.
In February 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 September 30, 2026. The agreement will remain effective for
the term of the credit facility, including any extensions thereof, unless terminated earlier in accordance with the
44
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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.
In June 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.
In July 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, with
$228.0 million outstanding as of September 30, 2026. 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 $120.2 million and $72.8
million at September 30, 2026 and December 31, 2025, respectively, is 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 September 30, 2026 and December 31, 2025, respectively.
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 $51.7 million and $24.2 million of unbilled receivables from
former and current employees and senior Carlyle professionals as of September 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, as of September 30,
2026 and December 31, 2025, $160.9 million and $151.5 million, respectively, have been withheld from distributions
of carried interest to senior Carlyle professionals and employees for potential giveback obligations. 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
September 30, 2026, approximately $51.7 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 $68.5 million.
If, at September 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 $1.5 billion, on an after-tax basis where applicable, of which approximately $0.5 billion
would be the responsibility of current and former senior Carlyle professionals.
Other
In April 2026, in connection with an investment fund that is actively fundraising in the Global Private Equity
segment, the Company entered into an arrangement with a third party pursuant to which the third party subscribed
for a $500.0 million commitment in the investment fund (the “Warehoused Interests”), with the Company obligated to
acquire any unsold Warehoused Interests as of December 31, 2026. As of September 30, 2026, $450.2 million of
Warehoused Interests had been sold to other investors, and the remaining $49.8 million continued to be held by the
third party. In October 2026, the remaining Warehoused Interests were sold to other investors.
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 September 30, 2026,
45
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
the Company has concluded that the likelihood of payment under this arrangement is not probable; therefore, no
liability has been recorded.
Legal Matters
In the ordinary course of business, the Company is a party to litigation, investigations, inquiries, employment-
related matters, disputes, and other potential claims. Certain of these matters are described below. The Company is
not currently able to estimate the reasonably possible amount of loss or range of loss, in excess of amounts
accrued, for the matters that have not been resolved. Although it is not possible to predict the ultimate outcome of
these unresolved matters, the Company does not believe it is probable that the outcome of any existing litigation,
investigations, disputes, or 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.
46
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
The Company accrues an estimated loss contingency liability when it is probable that such a liability has been
incurred and the amount of the loss can be reasonably estimated. The Company evaluates its outstanding legal and
regulatory proceedings and other matters each quarter to assess its loss contingency accruals, and makes
adjustments in such accruals, upward or downward, as appropriate, based on management’s best judgment after
consultation with counsel. There is no assurance that the Company’s accruals for loss contingencies will not need to
be adjusted in the future or that, in light of the uncertainties involved in such matters, the ultimate resolution of these
matters will not significantly exceed the accruals that the Company has recorded.
Indemnifications
In the normal course of business, the Company and its subsidiaries enter into contracts that contain a variety
of representations and warranties and provide general indemnifications. The Company’s maximum exposure under
these arrangements is unknown as this would involve future claims that may be made against the Company that
have not yet occurred. However, based on experience, the Company believes the risk of material loss to be remote.
In connection with the sale of the Company’s interest in its local Brazilian management entity in August 2021,
the Company provided a guarantee to the acquiring company of up to BRL 100.0 million ($19.3 million as of
September 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 in 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 is 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.
47
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
The Company considers cash, cash equivalents, securities, receivables, principal equity method investments,
accounts payable, accrued expenses, other liabilities, loans, senior notes, assets, and liabilities of Consolidated
Funds and contingent and other consideration for acquisitions to be its financial instruments. Except for the senior
notes, subordinated notes, and compensatory contingent and other consideration for acquisitions, the carrying
amounts reported in the condensed consolidated balance sheets for these financial instruments equal or closely
approximate their fair values. The fair value of the senior and subordinated notes is disclosed in Note 5, Borrowings.
8. Related Party Transactions
Due from Affiliates and Other Receivables, Net
The Company had the following due from affiliates and other receivables at September 30, 2026 and
December 31, 2025: 
 
As of
 
September 30, 2026
December 31, 2025
 
(Dollars in millions)
Accrued incentive fees
$55.5
$53.6
Unbilled receivable for giveback obligations from current and former employees
51.7
24.2
Notes receivable and accrued interest from affiliates
51.2
34.0
Management fee receivable, net
251.9
246.0
Reimbursable expenses and other receivables from unconsolidated funds and
affiliates, net
605.6
477.0
Total
$1,015.9
$834.8
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
September 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 September 30, 2026 and December 31, 2025 also
include interest-bearing loans of $39.2 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 6.00%
as of September 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.
48
Table of Contents
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 September 30, 2026 and December 31, 2025: 
 
As of
 
September 30, 2026
December 31, 2025
 
(Dollars in millions)
Due to affiliates of Consolidated Funds
$7.2
$6.1
Due to non-consolidated affiliates
126.9
102.0
Amounts owed under the tax receivable agreement
63.7
71.8
Other
20.1
24.0
Total
$217.9
$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 September 30,
2026 and 2025, the Company incurred fees for the use of these aircraft of $1.0 million and $0.4 million, respectively.
For the nine months ended September 30, 2026 and 2025, the Company incurred fees for the use of these aircraft
of $1.9 million and $1.4 million, respectively. All payments were paid directly to the manager of the aircraft, and a
significant portion of the payments were ultimately paid to or were for the benefit of certain co-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. 
49
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
9. Income Taxes
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Provision (benefit) for income taxes
$(0.1)
$(26.7)
$11.8
$98.2
Effective tax rate
0%
(31)%
66%
14%
The effective tax rate for the three and nine months ended September 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, the tax effects of
non-controlling interest, disallowed executive compensation, and equity-based compensation deductions. The
effective tax rate for the three months ended September 30, 2026 was 0% due to the offsetting effects of these rate
drivers and the benefit from non-taxable income. The effective tax rate for the three months ended September 30,
2025 was negative primarily due to the tax benefit from the pretax loss incurred prior to the effect of non-controlling
interest and due to the deduction related to the excess tax benefit from the vesting of restricted stock units in the
quarter. For the nine months ended September 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 September 30, 2026 and December 31, 2025, the Company had federal, state, local and foreign taxes
payable of $82.7 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 September 30, 2026, the Company’s U.S. federal income tax returns for the years
2022 through 2025 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 2025. 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
 
September 30, 2026
December 31, 2025
 
(Dollars in millions)
Non-Carlyle interests in Consolidated Funds
$1,099.9
$861.5
Non-Carlyle interests in majority-owned subsidiaries
469.8
433.9
Non-controlling interests in carried interest and giveback obligations
25.4
0.2
Non-controlling interests in consolidated entities
$1,595.1
$1,295.6
50
Table of Contents
The Carlyle Group Inc.
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
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Non-Carlyle interests in Consolidated Funds
$(25.5)
$91.3
$31.3
$113.2
Non-Carlyle interests in majority-owned subsidiaries
(2.8)
20.3
38.8
35.6
Non-controlling interests in carried interest and giveback
obligations
(40.8)
—
(61.2)
(0.2)
Non-controlling interests in income (loss) of consolidated
entities
$(69.1)
$111.6
$8.9
$148.6
 
11. Earnings Per Common Share
Basic and diluted net income (loss) per common share are calculated as follows:
 
Three Months Ended
September 30, 2026
Nine Months Ended
September 30, 2026
 
Basic
Diluted
Basic
Diluted
Net loss attributable to common shares
$(7,700,000)
$(7,700,000)
$(2,800,000)
$(2,800,000)
Weighted-average common shares outstanding
354,291,958
354,291,958
357,067,726
357,067,726
Net loss per common share
$(0.02)
$(0.02)
$(0.01)
$(0.01)
Three Months Ended
September 30, 2025
Nine Months Ended
September 30, 2025
Basic
Diluted
Basic
Diluted
Net income attributable to common shares
$900,000
$900,000
$450,600,000
$450,600,000
Weighted-average common shares outstanding
360,065,837
376,487,705
359,965,320
369,932,801
Net income per common share
$0.00
$0.00
$1.25
$1.22
The weighted-average common shares outstanding, basic and diluted, are calculated as follows:
 
Three Months Ended
September 30, 2026
Nine Months Ended
September 30, 2026
 
Basic
Diluted
Basic
Diluted
The Carlyle Group Inc. weighted-average common shares
outstanding
354,291,958
354,291,958
357,067,726
357,067,726
Weighted-average common shares outstanding
354,291,958
354,291,958
357,067,726
357,067,726
Three Months Ended
September 30, 2025
Nine Months Ended
September 30, 2025
Basic
Diluted
Basic
Diluted
The Carlyle Group Inc. weighted-average common shares
outstanding
360,065,837
360,065,837
359,965,320
359,965,320
Unvested restricted stock units
—
6,763,578
—
6,287,811
Issuable common shares and performance-vesting restricted
stock units
—
9,658,290
—
3,679,670
Weighted-average common shares outstanding
360,065,837
376,487,705
359,965,320
369,932,801
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. For the three and nine months ended September 30, 2026, all such awards are
51
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
antidilutive and excluded from the computation of diluted earnings per share given the net loss attributable to
common shareholders.
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 September 30, 2026,
$1.4 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 nine months ended September 30, 2026 and 2025. Dollar amounts exclude the impact
of excise taxes.
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
Shares
$
Shares
$
Shares
$
Shares
$
(Dollars in millions, except share data)
Shares repurchased
2,637,455
$125.0
1,568,399
$100.0
10,554,697
$490.0
4,236,146
$225.0
Shares retired in connection with the
net share settlement of equity-
based awards
1,854,503
85.4
1,693,158
102.7
4,406,553
229.3
4,620,513
257.8
Total
4,491,958
$210.4
3,261,557
$202.7
14,961,250
$719.3
8,856,659
$482.8
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
Shareholders
(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
124.5
November 16, 2026
November 23, 2026
0.35
123.9
Total 2026 Dividend Year (through Q3 2026)
$1.05
$374.1
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
52
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
obligations, legal, tax, and regulatory restrictions, other constraints on the payment of dividends by the Company to
its common shareholders or by subsidiaries to the Company, and other such factors as the Board of Directors may
deem relevant. In addition, the terms of the Company’s credit facility provide certain limits on the Company’s ability
to pay dividends.
13. Equity-Based Compensation
The Carlyle Group Inc. Amended and Restated 2012 Equity Incentive Plan (the “Equity Incentive Plan,” initially
adopted in May 2012 and as most recently amended and restated on 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 37,498,491 shares of the Company’s common stock remain available for
grant as of September 30, 2026.
A summary of the status of the Company’s unvested equity-based awards as of September 30, 2026 and a
summary of changes for the nine months ended September 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)
102,885
$48.87
6,910,194
$57.16
126,507
$61.32
Vested (2)
5,189,824
$26.17
5,872,229
$42.27
220,517
$39.62
Forfeited
—
$—
260,866
$50.69
—
$—
Balance, September 30, 2026
9,127,629
$30.25
12,116,133
$55.34
303,828
$54.44
(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 4,406,553 shares that were retired in connection with the net share settlement of equity-based awards. The
Company paid $229.3 million of taxes related to the net share settlement of equity-based awards during the nine months
ended September 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
$100.8 million and $90.7 million for the three months ended September 30, 2026 and 2025, respectively, with
$12.6 million and $15.9 million of corresponding deferred tax benefits, respectively. The Company recorded equity-
based compensation expense, net of forfeitures, for restricted stock units of $336.6 million and $287.1 million for the
nine months ended September 30, 2026 and 2025, respectively, with $45.7 million and $52.6 million of
corresponding deferred tax benefits, respectively. As of September 30, 2026, the total unrecognized equity-based
compensation expense related to unvested restricted stock units was $562.3 million, which is expected to be
recognized over a weighted-average term of 2.2 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.
53
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
Carlyle AlpInvest – The Carlyle AlpInvest segment advises global private equity programs that pursue
secondary purchases and financing of existing portfolios, managed co-investment programs, and primary
fund investments.
The Company’s reportable business segments are differentiated by their various investment focuses and
strategies. Overhead costs are generally allocated based on cash-based compensation and benefits expense for
each segment. The Company’s earnings from its investment in NGP are presented in the respective operating
captions within the Global Private Equity segment.
Distributable Earnings. Distributable Earnings, or “DE,” is a key performance benchmark used in the
Company’s industry and is evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief
Executive Officer, in making resource deployment and compensation decisions and in assessing performance of the
Company’s three reportable segments. The CODM also uses DE in budgeting, forecasting, and the overall
management of the Company’s segments. The CODM believes that reporting DE is helpful to understanding the
Company’s business and that investors should review the same supplemental financial measure that the CODM
uses to analyze the Company’s segment performance. DE is intended to show the amount of net realized earnings
without the effects of the consolidation of the Consolidated Funds. DE is derived from the Company’s segment
reported results and is used to assess performance.
Distributable Earnings differs from income (loss) before provision for income taxes computed in accordance
with U.S. GAAP in that it includes certain tax expenses associated with certain foreign performance revenues
(composed of performance allocations and incentive fees), and does not include unrealized performance allocations
and related compensation expense, unrealized principal investment income, equity-based compensation expense,
net income (loss) attributable to non-Carlyle interests in consolidated entities, or charges (credits) related to Carlyle
corporate actions and non-recurring items that affect period-to-period comparability and are not reflective of the
Company’s operational performance. Charges (credits) related to Carlyle corporate actions and non-recurring items
include: charges associated with the Conversion, charges (credits) associated with acquisitions, dispositions or
strategic investments, changes in the tax receivable agreement liability, amortization and any impairment charges
associated with acquired intangible assets, transaction costs associated with acquisitions and dispositions, charges
associated with earn-outs and contingent consideration including gains and losses associated with the estimated
fair value of contingent considerations issued in conjunction with acquisitions or strategic investments, impairment
charges associated with lease right-of-use assets, gains and losses from the retirement of debt, charges associated
with contract terminations and employee severance, and non-recurring items that affect period-to-period
comparability and are not reflective of the Company’s operating performance. Management believes the inclusion or
exclusion of these items provides investors with a meaningful indication of the Company’s core operating
performance.
Fee Related Earnings. Fee Related Earnings, or “FRE,” is a component of DE and is used to assess the ability
of the business to cover base compensation and operating expenses from total fee revenues. FRE adjusts DE to
exclude net realized performance revenues, realized principal investment income, and net interest (interest income
less interest expense). Fee Related Earnings includes fee related performance revenues and related compensation
expense. Fee related performance revenues represent the realized portion of performance revenues that are
measured and received on a recurring basis, are not dependent on realization events, and which have no risk of
giveback.
Asset information by segment is not disclosed because this information is not used by the CODM to make
resource deployment decisions or evaluate the performance of the Company’s segments.
54
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
The following tables present the financial data for the Company’s three reportable segments for the three and
nine months ended September 30, 2026:
Three Months Ended September 30, 2026
Global
Private
Equity
Global
Credit
Carlyle
AlpInvest
Total
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$272.6
$161.2
$113.1
$546.9
Portfolio advisory and transaction fees, net and other
5.5
27.1
—
32.6
Fee related performance revenues
4.7
34.6
10.4
49.7
Total fund level fee revenues
282.8
222.9
123.5
629.2
Realized performance revenues
273.0
4.4
8.6
286.0
Realized principal investment income
21.0
41.3
1.8
64.1
Interest income
5.6
7.5
2.1
15.2
Total revenues
582.4
276.1
136.0
994.5
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits
83.0
80.0
32.1
195.1
Realized performance revenues related compensation
175.0
2.8
8.4
186.2
Total compensation and benefits
258.0
82.8
40.5
381.3
General, administrative, and other indirect expenses(1)
59.5
44.3
20.5
124.3
Depreciation and amortization expense
9.0
5.4
2.8
17.2
Interest expense
18.7
15.5
5.0
39.2
Total expenses
345.2
148.0
68.8
562.0
(=) Distributable Earnings
$237.2
$128.1
$67.2
$432.5
(-) Realized net performance revenues
98.0
1.6
0.2
99.8
(-) Realized principal investment income
21.0
41.3
1.8
64.1
(+) Net interest
13.1
8.0
2.9
24.0
(=) Fee Related Earnings
$131.3
$93.2
$68.1
$292.6
55
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
Nine Months Ended September 30, 2026
Global
Private
Equity
Global
Credit
Carlyle
AlpInvest
Total
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$840.3
$457.1
$354.1
$1,651.5
Portfolio advisory and transaction fees, net and other
30.2
166.9
0.1
197.2
Fee related performance revenues
9.8
120.3
53.7
183.8
Total fund level fee revenues
880.3
744.3
407.9
2,032.5
Realized performance revenues
554.2
69.3
39.1
662.6
Realized principal investment income
38.4
57.2
19.3
114.9
Interest income
17.9
22.5
7.2
47.6
Total revenues
1,490.8
893.3
473.5
2,857.6
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits
282.6
285.2
112.1
679.9
Realized performance revenues related compensation
353.8
43.0
30.9
427.7
Total compensation and benefits
636.4
328.2
143.0
1,107.6
General, administrative, and other indirect expenses(1)
167.9
120.3
65.8
354.0
Depreciation and amortization expense
25.3
15.1
7.9
48.3
Interest expense
55.6
45.4
14.9
115.9
Total expenses
885.2
509.0
231.6
1,625.8
(=) Distributable Earnings
$605.6
$384.3
$241.9
$1,231.8
(-) Realized net performance revenues
200.4
26.3
8.2
234.9
(-) Realized principal investment income
38.4
57.2
19.3
114.9
(+) Net interest
37.7
22.9
7.7
68.3
(=) Fee Related Earnings
$404.5
$323.7
$222.1
$950.3
(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.
56
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
The following tables present the financial data for the Company’s three reportable segments for the three and
nine months ended September 30, 2025:
Three Months Ended September 30, 2025
Global
Private
Equity
Global
Credit
Carlyle
AlpInvest
Total
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$295.0
$146.5
$132.4
$573.9
Portfolio advisory and transaction fees, net and other
6.5
25.6
0.2
32.3
Fee related performance revenues
—
28.6
18.9
47.5
Total fund level fee revenues
301.5
200.7
151.5
653.7
Realized performance revenues
38.0
8.2
15.5
61.7
Realized principal investment income (loss)
(0.4)
42.8
7.1
49.5
Interest income
7.4
8.1
2.1
17.6
Total revenues
346.5
259.8
176.2
782.5
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits
97.4
83.8
39.3
220.5
Realized performance revenues related compensation
24.2
4.7
13.7
42.6
Total compensation and benefits
121.6
88.5
53.0
263.1
General, administrative, and other indirect expenses(1)
56.2
28.5
22.6
107.3
Depreciation and amortization expense
7.6
4.3
2.1
14.0
Interest expense
14.3
12.1
3.3
29.7
Total expenses
199.7
133.4
81.0
414.1
(=) Distributable Earnings
$146.8
$126.4
$95.2
$368.4
(-) Realized net performance revenues
13.8
3.5
1.8
19.1
(-) Realized principal investment income (loss)
(0.4)
42.8
7.1
49.5
(+) Net interest
6.9
4.0
1.2
12.1
(=) Fee Related Earnings
$140.3
$84.1
$87.5
$311.9
57
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
 
Nine Months Ended September 30, 2025
Global
Private
Equity
Global
Credit
Carlyle
AlpInvest
Total
 
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$880.4
$456.1
$352.5
$1,689.0
Portfolio advisory and transaction fees, net and other
27.9
130.0
0.2
158.1
Fee related performance revenues
—
86.0
39.7
125.7
Total fund level fee revenues
908.3
672.1
392.4
1,972.8
Realized performance revenues
599.8
26.6
50.2
676.6
Realized principal investment income
27.1
60.3
25.6
113.0
Interest income
18.9
22.1
6.3
47.3
Total revenues
1,554.1
781.1
474.5
2,809.7
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits
306.5
261.0
110.8
678.3
Realized performance revenues related compensation
385.5
15.7
41.2
442.4
Total compensation and benefits
692.0
276.7
152.0
1,120.7
General, administrative, and other indirect expenses(1)
155.2
99.7
54.3
309.2
Depreciation and amortization expense
21.5
12.0
6.0
39.5
Interest expense
41.1
34.9
9.5
85.5
Total expenses
909.8
423.3
221.8
1,554.9
(=) Distributable Earnings
$644.3
$357.8
$252.7
$1,254.8
(-) Realized net performance revenues
214.3
10.9
9.0
234.2
(-) Realized principal investment income
27.1
60.3
25.6
113.0
(+) Net interest
22.2
12.8
3.2
38.2
(=) Fee Related Earnings
$425.1
$299.4
$221.3
$945.8
(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.
58
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes
for the three months ended September 30, 2026 and 2025.
 
Three Months Ended September 30, 2026
 
Total
Reportable
Segments
Consolidated
Funds
Reconciling
Items
Carlyle
Consolidated
 
 
(Dollars in millions)
Revenues
$994.5
$175.0
$(835.4)
(a) 
$334.1
Expenses
$562.0
$198.5
$(372.2)
(b) 
$388.3
Other income (loss)
$—
$(22.7)
$—
(c) 
$(22.7)
Distributable Earnings
$432.5
$(46.2)
$(463.2)
(d) 
$(76.9)
 
Three Months Ended September 30, 2025
 
Total
Reportable
Segments
Consolidated
Funds
Reconciling
Items
Carlyle
Consolidated
 
 
(Dollars in millions)
Revenues
$782.5
$163.4
$(613.2)
(a) 
$332.7
Expenses
$414.1
$195.8
$(239.8)
(b) 
$370.1
Other income (loss)
$—
$123.2
$—
(c) 
$123.2
Distributable Earnings
$368.4
$90.8
$(373.4)
(d) 
$85.8
The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes
for the nine months ended September 30, 2026 and 2025.
 
Nine Months Ended September 30, 2026
 
Total
Reportable
Segments
Consolidated
Funds
Reconciling
Items
Carlyle
Consolidated
 
 
(Dollars in millions)
Revenues
$2,857.6
$547.2
$(1,693.2)
(a) 
$1,711.6
Expenses
$1,625.8
$570.5
$(563.5)
(b) 
$1,632.8
Other income (loss)
$—
$(60.9)
$—
(c) 
$(60.9)
Distributable Earnings
$1,231.8
$(84.2)
$(1,129.7)
(d) 
$17.9
 
Nine Months Ended September 30, 2025
 
Total
Reportable
Segments
Consolidated
Funds
Reconciling
Items
 
Carlyle
Consolidated
 
 
 
(Dollars in millions)
Revenues
$2,809.7
$459.8
$(390.8)
(a) 
$2,878.7
Expenses
$1,554.9
$505.1
$297.4
(b) 
$2,357.4
Other income (loss)
$—
$176.1
$—
(c) 
$176.1
Distributable Earnings
$1,254.8
$130.8
$(688.2)
(d) 
$697.4
(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:
59
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
(Dollars in millions)
Unrealized performance and fee related performance revenues
$(815.1)
$(632.0)
$(1,685.1)
$(498.3)
Unrealized principal investment income (loss)
(13.6)
(7.4)
(132.7)
35.1
Adjustments related to expenses associated with investments in
NGP Management and its affiliates
(11.2)
(12.3)
(34.0)
(120.8)
Non-controlling interests and other adjustments to present certain
costs on a net basis
(10.2)
56.5
91.3
254.3
Elimination of revenues of Consolidated Funds
14.7
(18.0)
67.3
(61.1)
$(835.4)
$(613.2)
$(1,693.2)
$(390.8)
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 nine months ended
September 30, 2026 and 2025.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
(Dollars in millions)
Total Reportable Segments - Fund level fee revenues
$629.2
$653.7
$2,032.5
$1,972.8
Adjustments(1)
(73.8)
(70.4)
(236.1)
(183.0)
Carlyle Consolidated - Fund management fees
$555.4
$583.3
$1,796.4
$1,789.8
(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 nine months ended September 30, 2026 and 2025.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
(Dollars in millions)
Total Reportable Segments - Portfolio advisory and transaction
fees, net and other
$32.6
$32.3
$197.2
$158.1
Adjustments(1)
(4.9)
(11.2)
(11.7)
(14.5)
Carlyle Consolidated - Portfolio advisory and transaction fees, net
$27.7
$21.1
$185.5
$143.6
(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
60
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
behalf of Carlyle funds on a net basis, changes in the tax receivable agreement liability, and charges and
credits associated with Carlyle corporate actions and non-recurring items, as detailed below:
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
(Dollars in millions)
Unrealized performance and fee related performance revenue
compensation expense
$(533.6)
$(387.4)
$(1,078.0)
$(288.0)
Equity-based compensation
102.3
88.2
341.1
289.3
Acquisition or disposition-related charges and amortization of
intangibles and impairment
41.8
46.2
133.1
216.7
Tax (expense) benefit associated with certain foreign performance
revenues related compensation
0.1
(0.4)
0.5
(0.5)
Non-controlling interests and other adjustments to present certain
costs on a net basis
22.2
23.9
79.7
98.1
Other adjustments
1.0
8.2
8.3
25.3
Elimination of expenses of Consolidated Funds
(6.0)
(18.5)
(48.2)
(43.5)
$(372.2)
$(239.8)
$(563.5)
$297.4
(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 (Loss) Before Provision for Income Taxes to Distributable
Earnings and to Fee Related Earnings:
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
(Dollars in millions)
Income (loss) before provision for income taxes
$(76.9)
$85.8
$17.9
$697.4
Adjustments:
Net unrealized performance and fee related performance revenues
281.5
244.6
607.1
210.3
Unrealized principal investment (income) loss
13.6
7.4
132.7
(35.1)
Equity-based compensation(1)
102.3
88.2
341.1
289.3
Acquisition or disposition-related charges, including amortization of
intangibles and impairment
41.8
46.2
133.1
216.7
Tax (expense) benefit associated with certain foreign performance
revenues
0.1
(0.4)
0.5
(0.5)
Net (income) loss attributable to non-controlling interests in consolidated
entities
69.1
(111.6)
(8.9)
(148.6)
Other adjustments(2)
1.0
8.2
8.3
25.3
Distributable Earnings
$432.5
$368.4
$1,231.8
$1,254.8
(-) Realized performance revenues, net of related compensation(3)
99.8
19.1
234.9
234.2
(-) Realized principal investment income(3)
64.1
49.5
114.9
113.0
(+) Net interest
24.0
12.1
68.3
38.2
Fee Related Earnings
$292.6
$311.9
$950.3
$945.8
(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:
61
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
Three Months Ended September 30, 2026
Carlyle
Consolidated
Adjustments (4)
Total
Reportable
Segments
(Dollars in millions)
Performance revenues
$(626.6)
$912.6
$286.0
Performance revenues related compensation
expense
(334.5)
520.7
186.2
Net performance revenues
$(292.1)
$391.9
$99.8
Principal investment income (loss)
$119.3
$(55.2)
$64.1
Nine Months Ended September 30, 2026
Carlyle
Consolidated
Adjustments (4)
Total
Reportable
Segments
(Dollars in millions)
Performance revenues
$(1,263.0)
$1,925.6
$662.6
Performance revenues related compensation
expense
(608.8)
1,036.5
427.7
Net performance revenues
$(654.2)
$889.1
$234.9
Principal investment income (loss)
$252.9
$(138.0)
$114.9
Three Months Ended September 30, 2025
Carlyle
Consolidated
Adjustments (4)
Total
Reportable
Segments
(Dollars in millions)
Performance revenues
$(606.7)
$668.4
$61.7
Performance revenues related compensation
expense
(324.6)
367.2
42.6
Net performance revenues
$(282.1)
$301.2
$19.1
Principal investment income (loss)
$87.7
$(38.2)
$49.5
Nine Months Ended September 30, 2025
Carlyle
Consolidated
Adjustments (4)
Total
Reportable
Segments
(Dollars in millions)
Performance revenues
$255.0
$421.6
$676.6
Performance revenues related compensation
expense
290.4
152.0
442.4
Net performance revenues
$(35.4)
$269.6
$234.2
Principal investment income (loss)
$79.8
$33.2
$113.0
(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.
62
Table of Contents
The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
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, and the exclusion
of charges associated with the investment in NGP Management and its affiliates from the segment results.
15. Subsequent Events
Subsequent events have been evaluated through the date the condensed consolidated financial statements
were issued. There have been no subsequent events that require recognition or disclosure through the date the
condensed consolidated financial statements were issued, except as disclosed below and elsewhere in these
condensed consolidated financial statements.
In October 2026, the Company’s Board of Directors declared a quarterly dividend of $0.35 per share of
common stock to common shareholders of record at the close of business on November 16, 2026, payable on
November 23, 2026.
63
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 September 30, 2026 and December 31, 2025 and results of operations for
the three and nine months ended September 30, 2026 and 2025. The supplemental statement of cash flows is
presented without effects of the Consolidated Funds.
 
As of September 30, 2026
 
Consolidated
Operating
Entities
Consolidated
Funds
Eliminations
Consolidated
 
(Dollars in millions)
Assets
Cash and cash equivalents
$1,583.5
$—
$—
$1,583.5
Cash and cash equivalents held at Consolidated Funds
—
1,021.5
—
1,021.5
Investments, including accrued performance allocations of
$5,801.3
10,565.6
—
(1,164.9)
9,400.7
Investments of Consolidated Funds
—
13,709.2
—
13,709.2
Due from affiliates and other receivables, net
1,317.0
—
(301.1)
1,015.9
Due from affiliates and other receivables of Consolidated
Funds, net
—
324.5
—
324.5
Fixed assets, net
256.6
—
—
256.6
Lease right-of-use assets, net
310.6
—
—
310.6
Deposits and other
73.7
5.1
—
78.8
Intangible assets, net
408.0
—
—
408.0
Deferred tax assets
70.1
—
—
70.1
Total assets
$14,585.1
$15,060.3
$(1,466.0)
$28,179.4
Liabilities and equity
Debt obligations
$3,016.7
$—
$—
$3,016.7
Loans payable of Consolidated Funds
—
12,000.0
(284.0)
11,716.0
Accounts payable, accrued expenses and other liabilities
411.3
—
—
411.3
Accrued compensation and benefits
4,569.9
—
—
4,569.9
Due to affiliates
210.7
10.3
(3.1)
217.9
Deferred revenue
358.6
—
—
358.6
Deferred tax liabilities
17.9
—
—
17.9
Other liabilities of Consolidated Funds
—
718.1
(0.7)
717.4
Lease liabilities
436.9
—
—
436.9
Accrued giveback obligations
120.2
—
—
120.2
Total liabilities
9,142.2
12,728.4
(287.8)
21,582.8
Common stock
3.6
—
—
3.6
Additional paid-in capital
4,666.4
1,208.0
(1,208.0)
4,666.4
Retained earnings
525.7
—
—
525.7
Accumulated other comprehensive loss
(248.0)
24.0
29.8
(194.2)
Non-controlling interests in consolidated entities
495.2
1,099.9
—
1,595.1
Total equity
5,442.9
2,331.9
(1,178.2)
6,596.6
Total liabilities and equity
$14,585.1
$15,060.3
$(1,466.0)
$28,179.4
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
As of December 31, 2025
 
Consolidated
Operating
Entities
Consolidated
Funds
Eliminations
Consolidated
 
(Dollars in millions)
Assets
Cash and cash equivalents
$1,970.2
$—
$—
$1,970.2
Cash and cash equivalents held at Consolidated Funds
—
1,235.1
—
1,235.1
Investments, including accrued performance allocations of
$7,620.3
12,219.6
—
(1,066.9)
11,152.7
Investments of Consolidated Funds
—
12,519.8
—
12,519.8
Due from affiliates and other receivables, net
1,135.0
—
(300.2)
834.8
Due from affiliates and other receivables of Consolidated
Funds, net
—
206.4
—
206.4
Fixed assets, net
224.9
—
—
224.9
Lease right-of-use assets, net
331.9
—
—
331.9
Deposits and other
98.2
2.7
—
100.9
Intangible assets, net
507.1
—
—
507.1
Deferred tax assets
32.2
—
—
32.2
Total assets
$16,519.1
$13,964.0
$(1,367.1)
$29,116.0
Liabilities and equity
Debt obligations
$2,997.0
$—
$—
$2,997.0
Loans payable of Consolidated Funds
—
10,712.4
(286.4)
10,426.0
Accounts payable, accrued expenses and other liabilities
543.7
—
—
543.7
Accrued compensation and benefits
5,849.4
—
—
5,849.4
Due to affiliates
197.8
6.1
—
203.9
Deferred revenue
129.2
—
—
129.2
Deferred tax liabilities
106.3
—
—
106.3
Other liabilities of Consolidated Funds
—
1,260.7
(0.3)
1,260.4
Lease liabilities
470.2
—
—
470.2
Accrued giveback obligations
72.8
—
—
72.8
Total liabilities
10,366.4
11,979.2
(286.7)
22,058.9
Common stock
3.6
—
—
3.6
Additional paid-in capital
4,285.8
1,099.2
(1,099.2)
4,285.8
Retained earnings
1,642.3
—
—
1,642.3
Accumulated other comprehensive loss
(213.1)
24.1
18.8
(170.2)
Non-controlling interests in consolidated entities
434.1
861.5
—
1,295.6
Total equity
6,152.7
1,984.8
(1,080.4)
7,057.1
Total liabilities and equity
$16,519.1
$13,964.0
$(1,367.1)
$29,116.0
 
 
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
 
Three Months Ended September 30, 2026
 
Consolidated
Operating
Entities
Consolidated
Funds
Eliminations
Consolidated
 
(Dollars in millions)
Revenues
Fund management fees
$566.7
$—
$(11.3)
$555.4
Incentive fees
51.6
—
—
51.6
Investment income (loss)
Performance allocations
(627.6)
—
1.0
(626.6)
Principal investment income
88.1
—
31.2
119.3
Total investment loss
(539.5)
—
32.2
(507.3)
Interest and other income
65.6
—
(6.2)
59.4
Interest and other income of Consolidated Funds
—
175.0
—
175.0
Total revenues
144.4
175.0
14.7
334.1
Expenses
Compensation and benefits
Cash-based compensation and benefits
196.5
—
—
196.5
Equity-based compensation
100.8
—
—
100.8
Performance allocations and incentive fee related
compensation
(334.5)
—
—
(334.5)
Total compensation and benefits
(37.2)
—
—
(37.2)
General, administrative and other expenses
193.9
—
(0.1)
193.8
Interest
39.1
—
—
39.1
Interest and other expenses of Consolidated Funds
—
198.5
(5.9)
192.6
Total expenses
195.8
198.5
(6.0)
388.3
Other loss
Net investment loss of Consolidated Funds
—
(22.7)
—
(22.7)
Loss before provision for income taxes
(51.4)
(46.2)
20.7
(76.9)
Benefit for income taxes
(0.1)
—
—
(0.1)
Net loss
(51.3)
(46.2)
20.7
(76.8)
Net loss attributable to non-controlling interests in
consolidated entities
(43.6)
—
(25.5)
(69.1)
Net loss attributable to The Carlyle Group Inc.
$(7.7)
$(46.2)
$46.2
$(7.7)
66
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
 
Nine Months Ended September 30, 2026
 
Consolidated
Operating
Entities
Consolidated
Funds
Eliminations
Consolidated
 
(Dollars in millions)
Revenues
Fund management fees
$1,831.1
$—
$(34.7)
$1,796.4
Incentive fees
202.2
—
—
202.2
Investment income (loss)
Performance allocations
(1,260.5)
—
(2.5)
(1,263.0)
Principal investment income
126.8
—
126.1
252.9
Total investment loss
(1,133.7)
—
123.6
(1,010.1)
Interest and other income
197.5
—
(21.6)
175.9
Interest and other income of Consolidated Funds
—
547.2
—
547.2
Total revenues
1,097.1
547.2
67.3
1,711.6
Expenses
Compensation and benefits
Cash-based compensation and benefits
685.5
—
—
685.5
Equity-based compensation
336.6
—
—
336.6
Performance allocations and incentive fee related
compensation
(608.8)
—
—
(608.8)
Total compensation and benefits
413.3
—
—
413.3
General, administrative and other expenses
581.3
—
—
581.3
Interest
115.9
—
—
115.9
Interest and other expenses of Consolidated Funds
—
570.5
(48.2)
522.3
Total expenses
1,110.5
570.5
(48.2)
1,632.8
Other loss
Net investment loss of Consolidated Funds
—
(60.9)
—
(60.9)
Income (loss) before provision for income taxes
(13.4)
(84.2)
115.5
17.9
Provision for income taxes
11.8
—
—
11.8
Net income (loss)
(25.2)
(84.2)
115.5
6.1
Net income (loss) attributable to non-controlling interests in
consolidated entities
(22.4)
—
31.3
8.9
Net loss attributable to The Carlyle Group Inc.
$(2.8)
$(84.2)
$84.2
$(2.8)
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
Three Months Ended September 30, 2025
Consolidated
Operating
Entities
Consolidated
Funds
Eliminations
Consolidated
(Dollars in millions)
Revenues
Fund management fees
$600.0
$—
$(16.7)
$583.3
Incentive fees
53.8
—
(2.4)
51.4
Investment income
Performance allocations
(598.2)
—
(8.5)
(606.7)
Principal investment income
71.4
—
16.3
87.7
Total investment income (loss)
(526.8)
—
7.8
(519.0)
Interest and other income
60.3
—
(6.7)
53.6
Interest and other income of Consolidated Funds
—
163.4
—
163.4
Total revenues
187.3
163.4
(18.0)
332.7
Expenses
Compensation and benefits
Cash-based compensation and benefits
216.2
—
—
216.2
Equity-based compensation
90.7
—
—
90.7
Performance allocations and incentive fee related
compensation
(324.6)
—
—
(324.6)
Total compensation and benefits
(17.7)
—
—
(17.7)
General, administrative and other expenses
180.7
—
—
180.7
Interest
29.8
—
—
29.8
Interest and other expenses of Consolidated Funds
—
195.8
(18.5)
177.3
Total expenses
192.8
195.8
(18.5)
370.1
Other income (loss)
Net investment income of Consolidated Funds
—
123.2
—
123.2
Income (loss) before provision (benefit) for income taxes
(5.5)
90.8
0.5
85.8
Benefit for income taxes
(26.7)
—
—
(26.7)
Net income
21.2
90.8
0.5
112.5
Net income attributable to non-controlling interests in
consolidated entities
20.3
—
91.3
111.6
Net income attributable to The Carlyle Group Inc.
$0.9
$90.8
$(90.8)
$0.9
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
Nine Months Ended September 30, 2025
 
Consolidated
Operating
Entities
Consolidated
Funds
Eliminations
Consolidated
 
(Dollars in millions)
Revenues
Fund management fees
$1,822.4
$—
$(32.6)
$1,789.8
Incentive fees
138.0
—
(2.9)
135.1
Investment income
Performance allocations
265.2
—
(10.2)
255.0
Principal investment income (loss)
77.1
—
2.7
79.8
Total investment income
342.3
—
(7.5)
334.8
Interest and other income
177.3
—
(18.1)
159.2
Interest and other income of Consolidated Funds
—
459.8
—
459.8
Total revenues
2,480.0
459.8
(61.1)
2,878.7
Expenses
Compensation and benefits
Cash-based compensation and benefits
673.0
—
—
673.0
Equity-based compensation
287.1
—
—
287.1
Performance allocations and incentive fee related
compensation
290.4
—
—
290.4
Total compensation and benefits
1,250.5
—
—
1,250.5
General, administrative and other expenses
559.8
—
—
559.8
Interest
85.6
—
—
85.6
Interest and other expenses of Consolidated Funds
—
505.1
(43.5)
461.6
Other non-operating income
(0.1)
—
—
(0.1)
Total expenses
1,895.8
505.1
(43.5)
2,357.4
Other income
Net investment income of Consolidated Funds
—
176.1
—
176.1
Income before provision for income taxes
584.2
130.8
(17.6)
697.4
Provision for income taxes
98.2
—
—
98.2
Net income
486.0
130.8
(17.6)
599.2
Net income attributable to non-controlling interests in
consolidated entities
35.4
—
113.2
148.6
Net income attributable to The Carlyle Group Inc.
$450.6
$130.8
$(130.8)
$450.6
 
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The Carlyle Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
 
Nine Months Ended September 30,
 
2026
2025
 
(Dollars in millions)
Cash flows from operating activities
Net income (loss)
$(25.2)
$486.0
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization
153.8
143.1
Equity-based compensation
336.6
287.1
Non-cash performance allocations and incentive fees
680.0
2.7
Non-cash principal investment (income) loss
(92.8)
(32.5)
Other non-cash amounts
(2.5)
35.9
Purchases of investments
(995.2)
(872.6)
Proceeds from the sale of investments
977.2
807.6
Payments of contingent consideration
(14.8)
(2.7)
Change in deferred taxes, net
(109.0)
(67.5)
Change in due from affiliates and other receivables
1.0
(8.1)
Change in deposits and other
19.8
(25.4)
Change in accounts payable, accrued expenses and other liabilities
(116.9)
37.8
Change in accrued compensation and benefits
(187.4)
(61.4)
Change in due to affiliates
20.6
25.1
Change in lease right-of-use assets and lease liabilities
(11.7)
(9.7)
Change in deferred revenue
229.8
226.7
Net cash provided by operating activities
863.3
972.1
Cash flows from investing activities
Purchases of fixed assets, net
(87.5)
(57.4)
Net cash used in investing activities
(87.5)
(57.4)
Cash flows from financing activities
Issuance of 5.05% senior notes due 2035, net of financing costs
—
792.9
Payments on CLO borrowings
(67.9)
(52.0)
Proceeds from CLO borrowings, net of financing costs
97.9
64.8
Dividends to common shareholders
(376.6)
(379.2)
Contributions from non-controlling interest holders
269.9
116.9
Distributions to non-controlling interest holders
(151.7)
(83.9)
Common shares repurchased and net share settlement of equity-based awards
(719.3)
(482.8)
Change in due to/from affiliates financing activities
(208.8)
29.4
Net cash provided by (used in) financing activities
(1,156.5)
6.1
Effect of foreign exchange rate changes
(8.6)
39.1
Increase (decrease) in cash, cash equivalents and restricted cash
(389.3)
959.9
Cash, cash equivalents and restricted cash, beginning of period
1,973.6
1,266.5
Cash, cash equivalents and restricted cash, end of period
$1,584.3
$2,226.4
Reconciliation of cash, cash equivalents and restricted cash, end of period:
  Cash and cash equivalents
$1,583.5
$2,221.7
  Restricted cash
0.8
4.7
  Total cash, cash equivalents and restricted cash, end of period
$1,584.3
$2,226.4
  Cash and cash equivalents held at Consolidated Funds
$1,021.5
$1,037.3
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Table of Contents
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 September 30, 2026, our Global Private Equity segment had $160.7 billion in AUM and $96.1 billion in Fee-
earning AUM.
•Global Credit — Our Global Credit segment advises funds and vehicles that pursue investment strategies
including insurance solutions, liquid credit, opportunistic credit, direct lending, asset-backed finance, aviation
finance, infrastructure credit, cross-platform credit products, and global capital markets. As of September 30,
2026, our Global Credit segment had $207.3 billion in AUM and $163.7 billion in Fee-earning AUM.
•Carlyle AlpInvest — Our Carlyle AlpInvest segment advises global private equity programs that pursue
secondary purchases and financing of existing portfolios, managed co-investment programs, and primary fund
investments. As of September 30, 2026, our Carlyle AlpInvest segment had $110.5 billion in AUM and $69.9
billion in Fee-earning AUM.
We earn management fees pursuant to contractual arrangements with the investment funds that we manage
and fees for transaction advisory and oversight services provided to portfolio companies of these funds. We also
typically receive a performance fee from an investment fund, which may be either an incentive fee or a special
residual allocation of income, which we refer to as a performance allocation, or carried interest, in the event that
specified investment returns are achieved by the fund. Under U.S. generally accepted accounting principles (“U.S.
GAAP”), we are required to consolidate some of the investment funds that we advise. However, for segment
reporting purposes, we present revenues and expenses on a basis that deconsolidates these investment funds.
Refer to Note 14, Segment Reporting, to the condensed consolidated financial statements included in this Quarterly
Report on Form 10-Q for more information on the differences between our financial results reported pursuant to
U.S. GAAP and our financial results for segment reporting purposes.
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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 $479 billion as of September 30, 2026 for each of our three global business segments
(in billions):
Global Private Equity
$160.7
Global Credit
$207.3
Corporate Private Equity
$99.6
Insurance Solutions4
$81.5
U.S. Buyout (CP)
50.6
Liquid Credit
$47.4
Asia Buyout (CAP)
11.2
U.S. CLOs
35.0
Europe Buyout (CEP)
8.9
Europe CLOs
8.6
Carlyle Global Partners (CGP)
6.7
CLO Investment Products
2.3
Europe Technology (CETP)
5.3
Revolving Credit
1.4
Japan Buyout (CJP)
4.9
Private Credit
$78.5
U.S. Growth (CP Growth / CEOF)
3.2
Opportunistic Credit (CCOF / CSP)
22.8
Life Sciences (ABV / ACCD)
2.2
Direct Lending5
14.1
Asia Growth (CAP Growth)
1.0
Asset-Backed Finance
11.9
Other1
5.6
Aviation Finance6
11.4
Real Estate
$35.5
Cross-Platform Credit (incl CTAC)
9.8
U.S. Real Estate (CRP)
23.8
Infrastructure Credit (CICF)
8.0
Core Plus Real Estate (CPI)
9.1
Real Estate Credit (CNLI)
0.4
International Real Estate (CER)
2.6
Infrastructure & Natural Resources
$25.6
Carlyle AlpInvest
$110.5
NGP Energy2
11.6
Secondaries & Portfolio Finance (ASF / ASPF)
$48.9
Infrastructure & Renewable Energy3
7.4
Co-Investments (ACF)
$24.6
International Energy (CIEP)
6.6
Primary Investments & Other7
$36.9
Note: All amounts shown represent total assets under management as of September 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, including our private equity
evergreen wealth platform (CPEP).
(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 Aviation carry funds (CAPF / SASOF), asset-backed securitization vehicles, and other related managed
accounts.
(7)Includes our Carlyle AlpInvest Private Markets (CAPM) and Carlyle AlpInvest Private Markets Secondaries (CAPS) funds.
Trends Affecting Our Business
Our global business is affected by conditions in 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.
U.S. equity markets extended their gains in the third quarter of 2026, though returns were considerably
more muted than in the second quarter, as resilient economic growth and strong corporate earnings outweighed
geopolitical tensions, higher energy prices, and rising interest rates. The S&P 500 and NASDAQ Composite
returned approximately 2.0% and 2.5%, respectively, reaching new record highs, supported by further upward
earnings per share (“EPS”) revisions. Consensus expectations for 2026 S&P 500 EPS growth have now risen by
1,820 basis points (“bps”) since the onset of the Iran conflict, with much of the earnings strength concentrated
among a small number of companies in the information technology (“IT”) and energy sectors. SaaS stocks
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rebounded 39% during the quarter as stronger financials helped allay near-term concerns around artificial
intelligence (“AI”) disruption, though the sector remained down 9% year-to-date. Meanwhile, small caps pulled back
as the Russell 2000 declined 7.5%. Headline index gains obscured significant underlying weakness: over 40% of
S&P 500 constituent companies and roughly 60% of Russell 3000 constituent companies finished the quarter more
than 30% below their all-time highs. Globally, over 60% of stocks were more than 30% below their all-time highs,
while more than half finished the quarter more than 25% below their 52-week highs.
Performance was generally weaker outside the United States. Europe’s Euro Stoxx 50 declined 0.9%, while
the sharpest reversal occurred in Asia. Japan’s Nikkei 225 declined 4.7% and Korea’s KOSPI fell 19.3%, its largest
quarterly decline since the first quarter of 2020, as the semiconductor-led rally that drove Asian markets in the first
half of the year reversed sharply. In private markets, buyouts in the U.S. continued to lag the S&P 500 over the last
year, but longer-term comparisons remain favorable against benchmarks that align with the market capitalization
profile of buyout-backed companies and are less influenced by mega-cap concentration. Compared to the Russell
2000 and S&P 600, buyouts in the U.S. have generated annualized outperformance of approximately 50 to 80 bps
over the last five years, 260 to 270 bps over the last 10 years, and 240 to 320 bps over the last 15 years. As public-
market returns become increasingly driven by a small number of mega-caps, comparisons between private market
performance and headline capitalization-weighted indexes have become less informative about the relative
performance of similarly sized companies. The growing divergence within public markets reinforces this distinction:
the rolling 52-week correlation of weekly returns between the equal-weighted and capitalization-weighted S&P 500
has fallen to its lowest level in the history of available data.
Official estimates suggest the U.S. economy expanded at a 3.4% annualized rate in Q3 2026. The
mechanical reversal of the inventory drag in Q2 2026 added 160 bps to growth in Q3 2026, leaving just 1.7%
annualized growth in final sales. U.S. demand remains strong, though so much of the surge in AI-related spending
has been met through capital goods imports that the bulk of the value-added in Q3 2026 accrued to the Asian
supplier economies. Our portfolio-implied measure of aggregate inflation finished the quarter 3.6% above year-ago
levels, driven primarily by energy costs. Management teams, however, continue to offset higher input costs through
price increases to consumers and our proprietary portfolio data suggest operating margins sit at multi-year highs. In
this respect, cumulative inflation has been a major challenge for tens of millions of households, making affordability
a central issue in elections. Forward interest rates rose sharply during the third quarter, with most of the move
occurring at the front end of the curve. The policy-sensitive two-year Treasury yield rose 72 bps in the month
following Chairman Warsh’s Jackson Hole address, as the shift in Federal Reserve tone interacted with the new
“acceleration” narrative to price in expectations for a significant tightening cycle. This higher-rate environment
reinforces the importance of disciplined underwriting and operational improvement in driving private equity returns.
The rise in rates also comes amid a broader shift in the supply and demand for capital: the formerly “asset-light”
hyperscalers have transitioned from the economy’s largest providers of liquidity to its largest users, increasing
competition for capital alongside large fiscal deficits. AI shipments and backlogs reached record highs every month
for two straight quarters. Growth in enterprise IT spending also remains strong at 32.7%, but its trajectory has
flattened relative to the step-function increase observed from the third quarter of 2025 to the second quarter of 2026
as many companies adopted policies to optimize token consumption. We expect year-over-year growth in enterprise
IT spending may moderate from current levels during the fourth quarter of 2026.
European conditions were mixed in the third quarter of 2026. The broader euro area industrial recovery lost
momentum as the energy shock weighed on activity. Our proprietary portfolio data suggest recent price trends have
introduced stagflation risk that may complicate European Central Bank policy deliberations. European forward rates
have also moved closely with natural gas prices, which ended October more than 200% above pre-Iran-war levels.
German factory orders showed pockets of resilience, particularly in long-cycle capital goods such as defense and
transportation equipment, though more recent data suggest broader momentum has pulled back. Higher euro area
defense spending could provide an additional tailwind if procurement shifts toward domestic suppliers, reducing
external leakage and generating commercial technology spillovers. In Asia, China remains two economies. As the
ongoing housing slump continues to weigh on household net worth and confidence, growth remains inordinately
dependent on exports of high-tech electronics, advanced machinery, electric vehicles, batteries, and electrical
equipment. The economies of Japan and South Korea continue to benefit from global demand for semiconductors
and other high-value components tied to the AI buildout. South Korean semiconductor exports are growing at an
annual rate of 219%, while Japan’s AI-related exports are 50% above year-ago levels. In India, growth remains
resilient, though the economy’s reliance on imported oil and gas leaves it vulnerable to persistently elevated energy
costs.
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Global merger and acquisition markets remained active, though transaction volumes declined from the
record pace in the first half of 2026. Transactions in the third quarter totaled $1.2 trillion, a decrease of 30% quarter-
over-quarter and 5% year-over-year. Leveraged buyout activity also slowed. Globally, general partners announced
leveraged buyouts totaling $118 billion in the third quarter of 2026, a moderate decline quarter-over-quarter (6.4%),
though a steep decline from the record volume observed in the same quarter a year ago (54%). Transaction counts
remained stable at 488 deals, a 2% increase compared to last quarter. U.S. IPO activity likewise moderated from
the elevated pace in the second quarter: 21 operating-company IPOs came to market in the third quarter compared
to 39 in the second quarter. By contrast, the aggregate value of global divestments of private equity-backed
companies rebounded sharply, rising 68% quarter-over-quarter, though the increase reflected a relatively small
number of large transactions as exit counts remained essentially flat.
Credit markets remained resilient during the third quarter of 2026. Leveraged loans posted gains in the
quarter, underpinned by supportive technical factors and a rebound in software names. The weighted-average bid in
the U.S. leveraged loan market reached 95.69 in late September, its highest level since early February, before
declining through quarter-end and into the fourth quarter to 94.59 (as of November 2) amid continued pressure from
higher yields. Broader credit stress remained contained: the par-weighted rate of defaults plus distressed
exchanges in the leveraged loan market finished the third quarter at 2.08%, well below their 2024–25 average of
3.59%, while private credit defaults fell 10 bps to 2.41%, only modestly above their 2024–25 average of 2.21%.
However, redemptions have been elevated at certain credit-oriented retail vehicles despite the resiliency of credit
markets. U.S. CLO issuance rebounded, rising 37% quarter-over-quarter to $45.8 billion. By September, the median
weighted-average spread on broadly syndicated loans held in U.S. CLOs fell below 300 bps, its tightest level in
more than a decade. There have been some notable instances of spread widening early in the fourth quarter, but
these have been largely confined to interest-rate-sensitive businesses and concerns around the AI data center
buildout. Competition among private credit lenders and from broadly syndicated loan markets continued to create
pricing pressure despite resilient demand. Interest rate and credit spread movements impacted fixed-income
valuations and reinsurance-related assets under management, potentially driving volatility independent of
underlying cash flows. At the same time, continued insurer interest in third-party capital and reinsurance sidecar
structures to improve capital efficiency and manage risk supports opportunities for alternative asset managers.
Looking ahead, the AI compute buildout could become an increasingly significant source of credit demand, with
bank analysts estimating that the buildout may require roughly $1 trillion in private credit financing—equal to more
than half of the private credit industry’s current assets under management. Much of this financing is expected to be
delivered through a range of bespoke, largely untested structures. The scale and nature of these financings
underscore the importance of disciplined underwriting and appropriate concentration limits as the buildout
progresses.
In the third quarter of 2026, we deployed $11.0 billion across our platform and $52.2 billion over the last
twelve months. In our traditional carry funds, we realized proceeds of $8.8 billion in the third quarter of 2026 and
$39.6 billion over the last twelve months, including $5.7 billion and $23.6 billion, respectively, in our Global Private
Equity segment. We had $10.8 billion in inflows in the third quarter of 2026 and $49.8 billion in inflows over the last
twelve months as of September 30, 2026. Inflows over the last twelve months include $5.9 billion in our evergreen
wealth products, which had $21.0 billion in assets under management as of September 30, 2026, a 35% increase
from one year ago.
Our carry fund portfolio appreciated 1% in the third quarter. Within our Global Private Equity segment in the
third quarter, our infrastructure & natural resources funds appreciated 8% driven by our international energy funds
and the NGP Carry Funds, and our corporate private equity and real estate funds were flat. Our Global Credit carry
funds, which represent approximately 12% of the total Global Credit remaining fair value as of September 30, 2026,
appreciated 4% in the third quarter. Carry funds in our Carlyle AlpInvest segment appreciated 1% in the third
quarter.
Notable Developments
Dividends
In October 2026, our Board of Directors declared a quarterly dividend of $0.35 per share to common
shareholders of record at the close of business on November 16, 2026, payable on November 23, 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, as well as realized and unrealized gains or losses on our investments in our funds and
other principal investments), and 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.
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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, 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 their 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
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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, refer to Note 4, Investments, to the condensed
consolidated financial statements included in this Quarterly Report on Form 10-Q.
We record investment income (loss) for our equity income allocation from NGP management fee related
revenues and our share of any allocated expenses from NGP Management, as well as expenses associated with
the compensatory elements of the strategic investment and any impairment charges. We also record our equity
income allocation from NGP performance allocations in principal investment income (loss) from equity method
investments rather than performance allocations in our condensed consolidated statements of operations. We do
not control or manage NGP. Moreover, we do not operate NGP’s business, have representation on NGP’s board or
serve as an investment advisor to any investment fund sponsored by NGP, nor do we direct the operations of any of
NGP’s portfolio companies. While we have consent rights over certain major actions by NGP outside of the ordinary
course of NGP’s business (including, for example, consent rights over items such as amendments to the
organizational documents of the entity in which we are invested, changes to the management fee streams earned
by NGP under its fund agreements, or the incurrence of certain debt by NGP and other similar items), we have no
voting rights or consent rights on any NGP investment committee that selects investments to be made by NGP
funds.
Interest and other income. Interest and other income primarily represents reimbursement of certain costs
incurred on behalf of our funds, as well as interest income that we earn such as from our cash and money market
accounts and other investments, including CLO senior and subordinated notes.
Interest and other income of Consolidated Funds. Interest and other income of Consolidated Funds primarily
represents the interest earned on assets of consolidated CLOs. Our CLOs generate interest income primarily from
investments in bonds and loans, inclusive of amortization of discounts, and generate other income from consent
and amendment fees.
Net investment income (loss) of Consolidated Funds. Net investment income (loss) of Consolidated Funds
generally measures the change in the difference in fair value between the assets and the liabilities of the
Consolidated Funds. Income (loss) indicates that the fair value of the assets of the Consolidated Funds appreciated
more (less), or depreciated less (more), than the fair value of the liabilities of the Consolidated Funds. Income or
loss is not necessarily indicative of the investment performance of the Consolidated Funds and does not impact the
management or incentive fees received by Carlyle for its management of the Consolidated Funds. The portion of
the net investment income (losses) of Consolidated Funds attributable to the limited partner investors is allocated to
non-controlling interests. Therefore, income or loss is not expected to have a material impact on the revenues or
profitability of, 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.
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In addition, we have implemented various equity-based compensation arrangements that require senior
Carlyle professionals and other employees to provide services over a service period of generally one year to four
years in order to vest in the applicable equity interests, which under U.S. GAAP will result in compensation charges
over current and future periods. In certain of our equity-based compensation arrangements, vesting is based on the
achievement of certain performance targets or market conditions (see Note 13, Equity-Based Compensation, for
additional information). Compensation charges associated with all equity-based compensation grants are excluded
from Fee Related Earnings and Distributable Earnings.
We may hire additional individuals and overall compensation levels may correspondingly increase, which
could result in an increase in compensation and benefits expense. As a result of prior acquisitions, we have charges
associated with contingent consideration taking the form of earn-outs and profit participation, some of which are
reflected as compensation expense.
General, administrative and other expenses. General, administrative and other expenses include occupancy
and equipment expenses and other expenses, which consist principally of professional fees, including those related
to our global regulatory compliance program, external costs of fundraising, travel and related expenses,
communications and information services, depreciation and amortization (including intangible asset amortization
and impairment), bad debt expense, and foreign currency transactions. We expect that general, administrative and
other expenses will vary due to infrequently occurring or unusual items, such as impairment of intangible assets or
lease right-of-use assets and expenses or insurance recoveries associated with litigation and contingencies. Also, in
periods of significant fundraising, to the extent that we use third parties to assist in our fundraising efforts, our
general, administrative and other expenses may increase accordingly. Similarly, our general, administrative and
other expenses may increase as a result of professional and other fees incurred as part of due diligence related to
strategic acquisitions and new product development. Additionally, we anticipate that general, administrative and
other expenses will fluctuate from period to period due to the impact of foreign exchange transactions.
Interest and other expenses of Consolidated Funds. Interest and other expenses of Consolidated Funds
consist primarily of interest expense related primarily to loans of consolidated CLOs and other consolidated funds,
professional fees and other third-party expenses.
Income taxes. The Carlyle Group Inc. is a corporation for U.S. federal income tax purposes and is subject to
U.S. federal, state, local, and foreign 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,
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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 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.
1
The table below details Fee-earning AUM by its respective components at each period.
 
As of September 30,
 
2026
2025
Consolidated Results
(Dollars in millions)
Components of Fee-earning AUM
Fee-earning AUM based on capital commitments
$74,466
$71,995
Fee-earning AUM based on invested capital
76,225
79,310
Fee-earning AUM based on collateral balances, at par
40,418
43,929
Fee-earning AUM based on net asset value
35,311
28,344
Fee-earning AUM based on fair value and other
103,224
108,376
Balance, End of Period(1)
$329,644
$331,954
(1)Ending balances as of September 30, 2026 and 2025 exclude $28.2 billion and $19.1 billion, respectively, of Pending Fee-
earning AUM for which fees have not yet been activated.
The table below provides the period to period rollforward of Fee-earning AUM.
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2026
2025
2026
2025
Consolidated Results
(Dollars in millions)
Fee-earning AUM Rollforward
Balance, Beginning of Period
$334,409
$324,701
$336,778
$304,358
Inflows(1)
7,955
14,092
24,090
43,996
Outflows (including realizations)(2)
(7,138)
(7,563)
(22,341)
(23,974)
Market Activity & Other(3)
(5,476)
848
(7,599)
2,487
Foreign Exchange(4)
(106)
(124)
(1,284)
5,087
Balance, End of Period
$329,644
$331,954
$329,644
$331,954
(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, as well as gross subscriptions in vehicles for which management fees are
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based on net asset value. Inflows exclude fundraising amounts during the period for which fees have not yet been activated,
which are referenced as Pending Fee-earning AUM.
(2)Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at
cost or fair value, changes in basis for funds where the investment period, weighted-average investment period or
commitment fee period has expired during the period, reductions for funds that are no longer calling for fees, gross
redemptions in our evergreen funds, and outflows from our liquid credit products. Distributions for funds earning
management fees based on commitments during the period do not affect Fee-earning AUM.
(3)Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based
on the lower of cost or fair value and net asset value, activity of funds with fees based on gross asset value, and changes in
the fair value of Fortitude’s general account assets covered by the strategic advisory services agreement.
(4)Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar
denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated
at the spot rate as of the period end.
Refer to “—Segment Analysis” for a detailed discussion by segment of the activity affecting Fee-earning AUM
for each of the periods presented by segment.
Assets under Management. Assets under management or “AUM” refers to the assets we manage or advise.
Our AUM generally equals the sum of the following:
(a)  the aggregate fair value of our carry funds and related co-investment vehicles, and separately managed
accounts, plus the capital that Carlyle is entitled to call from investors in those funds and vehicles (including
Carlyle commitments to those funds and vehicles and those of senior Carlyle professionals and employees)
pursuant to the terms of their capital commitments to those funds and vehicles;
(b) the amount of aggregate collateral balance and principal cash at par or aggregate principal amount of the
notes of our CLOs and other structured products (inclusive of all positions);
(c) the net asset value of certain carry funds and evergreen products;
(d)the fair value of Fortitude’s general account assets invested under the strategic advisory services agreement;
and
(e) the gross assets (including assets acquired with leverage) of certain cross-platform credit and direct lending
products, plus the capital that Carlyle is entitled to call from investors in those vehicles pursuant to the terms
of their capital commitments to those vehicles.
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The chart below presents Total AUM by segment at each period, in billions.
13
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
September 30, 2026
Nine Months Ended
September 30, 2026
Consolidated Results
(Dollars in millions)
Total AUM Rollforward
Balance, Beginning of Period
$485,495
$476,867
Inflows(1)
10,811
40,573
Outflows (including realizations)(2)
(14,279)
(39,124)
Market Activity & Other(3)
(3,285)
2,232
Foreign Exchange(4)
(219)
(2,025)
Balance, End of Period
$478,523
$478,523
(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. As of September 30, 2026, we had $94.5
billion of Available Capital.
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 September 30, 2026, our total AUM and Fee-earning AUM included
$115.8 billion and $109.7 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
$40.9 billion and $34.9 billion, respectively, as of September 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
83
Table of Contents
“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 September 30, 2026, our total AUM included $237.4 billion of Performance Fee Eligible AUM.
Consolidation of Certain Carlyle Funds
The Company consolidates all entities that it controls either through a majority voting interest or as the primary
beneficiary of variable interest entities. The 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 September 30, 2026, our Consolidated Funds represent approximately 5% of our AUM;
2% and 2% of our management fees for the three and nine months ended September 30, 2026, respectively; and
6% and 12% of our total investment income or loss on an unconsolidated basis for the three and nine months ended
September 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 September 30, 2026, the assets and liabilities of the Consolidated Funds were primarily
related to our consolidated CLOs, which held approximately $11.8 billion of total assets. Additionally, the
Investments of Consolidated Funds included approximately $980.0 million 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 the
results of those Consolidated Funds may impact net income attributable to the common shareholders.
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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Table of Contents
Consolidated Results of Operations
The following table and discussion sets forth information regarding our condensed consolidated results of
operations for the three and nine months ended September 30, 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
September 30,
Change
Nine Months Ended
September 30,
Change
 
2026
2025
$
%
2026
2025
$
%
 
(Dollars in millions)
Revenues
Fund management fees
$555.4
$583.3
$(27.9)
(5)%
$1,796.4
$1,789.8
$6.6
0%
Incentive fees
51.6
51.4
0.2
0%
202.2
135.1
67.1
50%
Investment income (loss)
Performance allocations
(626.6)
(606.7)
(19.9)
3%
(1,263.0)
255.0
(1,518.0)
NM
Principal investment income
119.3
87.7
31.6
36%
252.9
79.8
173.1
217%
Total investment income
(loss)
(507.3)
(519.0)
11.7
(2)%
(1,010.1)
334.8
(1,344.9)
NM
Interest and other income
59.4
53.6
5.8
11%
175.9
159.2
16.7
10%
Interest and other income of
Consolidated Funds
175.0
163.4
11.6
7%
547.2
459.8
87.4
19%
Total revenues
334.1
332.7
1.4
0%
1,711.6
2,878.7
(1,167.1)
(41)%
Expenses
Compensation and benefits
Cash-based compensation and
benefits
196.5
216.2
(19.7)
(9)%
685.5
673.0
12.5
2%
Equity-based compensation
100.8
90.7
10.1
11%
336.6
287.1
49.5
17%
Performance allocations and
incentive fee related
compensation
(334.5)
(324.6)
(9.9)
3%
(608.8)
290.4
(899.2)
NM
Total compensation and
benefits
(37.2)
(17.7)
(19.5)
110%
413.3
1,250.5
(837.2)
(67)%
General, administrative and other
expenses
193.8
180.7
13.1
7%
581.3
559.8
21.5
4%
Interest
39.1
29.8
9.3
31%
115.9
85.6
30.3
35%
Interest and other expenses of
Consolidated Funds
192.6
177.3
15.3
9%
522.3
461.6
60.7
13%
Other non-operating income
—
—
—
—%
—
(0.1)
0.1
(100)%
Total expenses
388.3
370.1
18.2
5%
1,632.8
2,357.4
(724.6)
(31)%
Other income (loss)
Net investment income (loss) of
Consolidated Funds
(22.7)
123.2
(145.9)
NM
(60.9)
176.1
(237.0)
NM
Income (loss) before provision for
income taxes
(76.9)
85.8
(162.7)
NM
17.9
697.4
(679.5)
(97)%
Provision (benefit) for income taxes
(0.1)
(26.7)
26.6
(100)%
11.8
98.2
(86.4)
(88)%
Net income (loss)
(76.8)
112.5
(189.3)
NM
6.1
599.2
(593.1)
(99)%
Net income (loss) attributable to
non-controlling interests in
consolidated entities
(69.1)
111.6
(180.7)
NM
8.9
148.6
(139.7)
(94)%
Net income (loss) attributable to The
Carlyle Group Inc.
$(7.7)
$0.9
$(8.6)
NM
$(2.8)
$450.6
$(453.4)
NM
NM - Not meaningful
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Table of Contents
Revenues
Fund management fees. The following table provides the components of the changes in Fund management
fees for the periods presented:
Three Months Ended
September 30,
Nine Months Ended
September 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
$28.8
$110.8
Net lower management fees resulting from the change in basis from
commitments to invested capital and stepdowns in rate for certain funds
and the impact of net investment activity in funds whose management fees
are based on invested capital
(26.2)
(73.3)
Decrease in catch-up management fees from subsequent closes of funds
that are in the fundraising period
(17.2)
(37.7)
Higher transaction and portfolio advisory fees
6.6
41.9
All other changes(1)
(19.9)
(35.1)
Total (decrease) increase in Fund management fees(2)
$(27.9)
$6.6
(1)The nine months ended September 30, 2025 included approximately $19 million of aviation catch-up subordinated management fees.
(2)Total (decrease) 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.
Our Fee-earning AUM reflects a diversified fund management fee base across our three business segments.
No fund generated over 10% of total fund management fees in any of the periods presented. Fee-earning AUM as
of September 30, 2026 increased in Carlyle AlpInvest and decreased in Global Private Equity and Global Credit as
compared to September 30, 2025, resulting in a 1% overall decrease in Fee-earning AUM. Refer to “—Segment
Analysis” for a detailed discussion by segment of the activity affecting Fee-earning AUM for each of the periods
presented.
Fund management fees included transaction and portfolio advisory fees, net of rebate offsets, of $27.7 million
and $21.1 million for the three months ended September 30, 2026 and 2025, respectively, and $185.5 million and
$143.6 million for the nine months ended September 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 $67.1 million for the nine months ended September 30, 2026, as
compared to the prior year period, primarily due to catch-up fees related to our Global Credit segment, as well as
the growth and performance of our evergreen funds: CPEP in the Global Private Equity segment and CAPM and
CAPS in the Carlyle AlpInvest segment.
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Table of Contents
Investment income (loss). The components of Investment income (loss) are included in the following table:
Three Months Ended
September 30,
Change
Nine Months Ended
September 30,
Change
2026
2025
$
%
2026
2025
$
%
(Dollars in millions)
Performance allocations
$(626.6)
$(606.7)
$(19.9)
3%
$(1,263.0)
$255.0
$(1,518.0)
NM
Principal investment income:
Investment income (loss) from
NGP, which includes
performance allocations
59.1
29.8
29.3
98%
158.4
(42.6)
201.0
NM
Investment income (loss) from
our carry funds:
Global Private Equity
22.8
9.1
13.7
151%
42.3
28.5
13.8
48%
Global Credit
(9.9)
8.7
(18.6)
NM
(12.1)
8.6
(20.7)
NM
Carlyle AlpInvest
17.1
6.3
10.8
171%
14.8
13.0
1.8
14%
Investment income (loss) from our
CLOs
(2.5)
2.1
(4.6)
NM
(12.9)
(5.4)
(7.5)
139%
Investment income from Carlyle
FRL
10.3
0.3
10.0
NM
20.6
15.7
4.9
31%
Investment income from our other
Global Credit products
8.7
1.4
7.3
NM
15.0
6.1
8.9
146%
Investment income from our other
Carlyle AlpInvest products
6.1
10.0
(3.9)
(39)%
20.8
29.8
(9.0)
(30)%
Investment income on foreign
currency hedges
0.4
0.4
—
—%
0.9
2.1
(1.2)
(57)%
All other investment income
7.2
19.6
(12.4)
(63)%
5.1
24.0
(18.9)
(79)%
Total Principal investment income
119.3
87.7
31.6
36%
252.9
79.8
173.1
217%
Total Investment income (loss)
$(507.3)
$(519.0)
$11.7
(2)%
$(1,010.1)
$334.8
$(1,344.9)
NM
Performance allocations. Performance allocations by segment for the three and nine months ended
September 30, 2026 and 2025 comprised the following:
Three Months Ended
September 30,
Change
Nine Months Ended
September 30,
Change
2026
2025
$
%
2026
2025
$
%
(Dollars in millions)
Global Private Equity
$(669.0)
$(781.4)
$112.4
(14)%
$(1,468.9)
$(219.5)
$(1,249.4)
NM
Global Credit
128.7
93.3
35.4
38%
268.0
223.1
44.9
20%
Carlyle AlpInvest
(86.3)
81.4
(167.7)
NM
(62.1)
251.4
(313.5)
NM
Total performance allocations
$(626.6)
$(606.7)
$(19.9)
3%
$(1,263.0)
$255.0
$(1,518.0)
NM
Performance allocations for the three and nine months ended September 30, 2026 included the following:
•In the Global Private Equity segment, for the three and nine months ended September 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, CP VIII, CGP II, and CP Growth I.
•In the Global Credit segment, for the three and nine months ended September 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 months ended September 30, 2026, reversals of
Performance allocations were primarily attributable to depreciation in our secondaries & portfolio finance
funds, and to a lesser extent, our co-investment funds. For the nine months ended September 30, 2026,
reversals of Performance allocations were primarily attributable to depreciation in our co-investment
funds, partially offset by appreciation in our secondaries & portfolio finance funds.
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Table of Contents
Performance allocations for the three and nine months ended September 30, 2025 included the following:
•In the Global Private Equity segment, for the three and nine months ended September 30, 2025,
reversals of Performance allocations were primarily attributable to the impact of a decrease in the market
prices of certain public investments in CP VII and CAP V. Additionally, for the nine months ended
September 30, 2025, reversals of Performance allocations were offset by accruals of Performance
allocations resulting from appreciation in CP VIII.
•In the Global Credit segment, for the three and nine months ended September 30, 2025, Performance
allocation accruals were primarily driven by the impact of appreciation in CCOF II and CCOF III. During
the nine months ended September 30, 2025, Performance allocation accruals were also driven by the
impact of appreciation in SASOF V.
•In the Carlyle AlpInvest segment, for the three and nine months ended September 30, 2025, Performance
allocation accruals were primarily driven by the impact of appreciation in our secondaries & portfolio
finance funds. During the nine months ended September 30, 2025, Performance allocation accruals were
also driven by the impact of appreciation in our co-investment funds.
See “—Trends Affecting Our Business” for further discussion on the macroeconomic, geopolitical and industry
landscape, and our investment activity.
Principal investment income. Principal investment income for the three months ended September 30, 2026
and 2025 and the nine months ended September 30, 2026 was primarily attributable to Performance allocations on
funds managed by NGP. Principal investment income for the nine months ended September 30, 2025 was primarily
attributable to U.S. buyout, infrastructure, CAPM, and CAPS funds, partially offset by an impairment charge of
$92.5 million and a $38.0 million reduction in NGP accrued carry, both of which negatively impacted the nine
months ended September 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
$11.6 million for the three months ended September 30, 2026, as compared to the prior year period, and increased
$87.4 million for the nine months ended September 30, 2026, as compared to the prior year period, primarily driven
by a net increase in the number of consolidated CLOs.
Expenses
Compensation and benefits. Total compensation and benefits decreased $19.5 million for the three months
ended September 30, 2026, as compared to the prior year period, and decreased $837.2 million for the nine months
ended September 30, 2026, as compared to the prior year period. The decrease for the three and nine months
ended September 30, 2026 relative to the comparable prior year period is primarily attributable to a decrease in
Performance allocations and incentive fee related compensation of $9.9 million and $899.2 million, respectively,
which was driven by a decrease in Performance allocations, on which Performance allocations and incentive fee
related compensation is based. The decrease for three months ended September 30, 2026 was also attributable to
a decrease in Cash-based compensation and benefits of $19.7 million primarily due to lower discretionary bonus
expense. These decreases were partially offset by an increase in Equity-based compensation for the three and nine
months ended September 30, 2026 relative to the comparable prior year period of $10.1 million and $49.5 million,
respectively, primarily driven by stock awards granted in December 2025 and February 2026 to further align
leadership with Company performance.
Interest and other expenses of Consolidated Funds. Interest and other expenses of Consolidated Funds
increased $15.3 million for the three months ended September 30, 2026, as compared to the prior year period, and
increased $60.7 million for the nine months ended September 30, 2026, as compared to the prior year period,
primarily due to a collateralized fund obligation in the Carlyle AlpInvest segment. The increase was also attributable
to higher interest expense related to the consolidated CLOs for the nine months ended September 30, 2026.
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Table of Contents
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
September 30,
Change
Nine Months
Ended
September 30,
Change
 
2026
2025
$
%
2026
2025
$
%
 
(Dollars in millions)
Net realized gains on investments of
Consolidated Funds (excluding CLOs)
$82.7
$63.6
$19.1
30%
$111.3
$82.2
$29.1
35%
Net change in unrealized gains (losses) on
investments of Consolidated Funds
(excluding CLOs)
(103.1)
30.6
(133.7)
NM
(118.1)
86.2
(204.3)
NM
Net realized and unrealized gains
(losses) on investments of
Consolidated Funds (excluding CLOs)
(20.4)
94.2
(114.6)
NM
(6.8)
168.4
(175.2)
NM
Losses on investments of consolidated
CLOs
(33.9)
(5.7)
(28.2)
NM
(149.5)
(68.3)
(81.2)
119%
Gains from liabilities of consolidated CLOs
31.6
34.7
(3.1)
(9)%
95.4
76.0
19.4
26%
Net gains (losses) from consolidated
CLOs
(2.3)
29.0
(31.3)
NM
(54.1)
7.7
(61.8)
NM
Total net investment income (loss) of
Consolidated Funds
$(22.7)
$123.2
$(145.9)
NM
$(60.9)
$176.1
$(237.0)
NM
Net investment loss of Consolidated Funds for the three months ended September 30, 2026 was primarily
driven by net losses of consolidated funds in the Carlyle AlpInvest segment. Net investment loss of Consolidated
Funds for the nine months ended September 30, 2026 included net change in unrealized loss on an investment in a
consolidated infrastructure fund in our Global Private Equity segment of approximately $82 million. Through
September 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 in the fourth quarter of 2026. Net losses from consolidated CLOs
and unrealized losses from investments that have been warehoused for a Global Private Equity fund also
contributed to the Net investment loss of Consolidated Funds for the nine months ended September 30, 2026.
These losses were partially offset by net investment 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 (benefit) for income taxes. The table below presents the provision (benefit) for income taxes and the
effective tax rate for the three and nine months ended September 30, 2026 and 2025:
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Provision (benefit) for income taxes
$(0.1)
$(26.7)
$11.8
$98.2
Effective tax rate
0%
(31)%
66%
14%
The effective tax rate for the three and nine months ended September 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, the tax effects of
non-controlling interest, disallowed executive compensation, and equity-based compensation deductions. The
effective tax rate for the three months ended September 30, 2026 was 0% due to the offsetting effects of these rate
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drivers and the benefit from non-taxable income. The effective tax rate for the three months ended September 30,
2025 was negative primarily due to the tax benefit from the pretax loss incurred prior to the effect of non-controlling
interest and due to the deduction related to the excess tax benefit from the vesting of restricted stock units in the
quarter. For the nine months ended September 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. See Note 9, Income
Taxes, to the condensed consolidated financial statements for further information.
Non-controlling Interests
Net income (loss) attributable to non-controlling interests in consolidated entities. Net income (loss)
attributable to non-controlling interests in consolidated entities was $(69.1) million for the three months ended
September 30, 2026, as compared to $111.6 million for the prior year period, and $8.9 million for the nine months
ended September 30, 2026, as compared to $148.6 million for the prior year period. These amounts 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 decrease for the three and
nine months ended September 30, 2026, as compared to the prior year periods, was primarily due to a decline of
$40.8 million and $61.2 million, respectively, in accrued carry held by non-controlling interests, as well as lower net
earnings in certain Consolidated Funds in the Carlyle AlpInvest segment. The net income (loss) of our Consolidated
Funds, after eliminations, attributable to non-controlling interests was $(25.5) million and $91.3 million for the three
months ended September 30, 2026 and 2025, respectively, and $31.3 million and $113.2 million for the nine months
ended September 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 nine months ended September 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 nine months ended September 30,
2026 and 2025.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
(Dollars in millions)
Total Segment Revenues
$994.5
$782.5
$2,857.6
$2,809.7
Total Segment Expenses
562.0
414.1
1,625.8
1,554.9
(=) Distributable Earnings
$432.5
$368.4
$1,231.8
$1,254.8
(-) Realized net performance revenues
99.8
19.1
234.9
234.2
(-) Realized principal investment income
64.1
49.5
114.9
113.0
(+) Net interest
24.0
12.1
68.3
38.2
(=) Fee Related Earnings
$292.6
$311.9
$950.3
$945.8
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The following table sets forth our total segment revenues for the three and nine months ended September 30,
2026 and 2025.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$546.9
$573.9
$1,651.5
$1,689.0
Portfolio advisory and transaction fees, net and other
32.6
32.3
197.2
158.1
Fee related performance revenues
49.7
47.5
183.8
125.7
Total fund level fee revenues
629.2
653.7
2,032.5
1,972.8
Realized performance revenues
286.0
61.7
662.6
676.6
Realized principal investment income
64.1
49.5
114.9
113.0
Interest income
15.2
17.6
47.6
47.3
Total Segment Revenues
$994.5
$782.5
$2,857.6
$2,809.7
The following table sets forth our total segment expenses for the three and nine months ended September 30,
2026 and 2025.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
(Dollars in millions)
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits
$195.1
$220.5
$679.9
$678.3
Realized performance revenue related compensation
186.2
42.6
427.7
442.4
Total compensation and benefits
381.3
263.1
1,107.6
1,120.7
General, administrative, and other indirect expenses
124.3
107.3
354.0
309.2
Depreciation and amortization expense
17.2
14.0
48.3
39.5
Interest expense
39.2
29.7
115.9
85.5
Total Segment Expenses
$562.0
$414.1
$1,625.8
$1,554.9
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Income (loss) before provision for income taxes is the U.S. GAAP financial measure most comparable to
Distributable Earnings and Fee Related Earnings. The following table is a reconciliation of income (loss) before
provision for income taxes to Distributable Earnings and to Fee Related Earnings.
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Income (loss) before provision for income taxes
$(76.9)
$85.8
$17.9
$697.4
Adjustments:
Net unrealized performance and fee related performance revenues
281.5
244.6
607.1
210.3
Unrealized principal investment (income) loss
13.6
7.4
132.7
(35.1)
Equity-based compensation(1)
102.3
88.2
341.1
289.3
Acquisition or disposition-related charges, including amortization of
intangibles and impairment
41.8
46.2
133.1
216.7
Tax (expense) benefit associated with certain foreign performance
revenues
0.1
(0.4)
0.5
(0.5)
Net (income) loss attributable to non-controlling interests in
consolidated entities
69.1
(111.6)
(8.9)
(148.6)
Other adjustments(2)
1.0
8.2
8.3
25.3
(=) Distributable Earnings
$432.5
$368.4
$1,231.8
$1,254.8
(-) Realized net performance revenues, net of related
compensation(3)
99.8
19.1
234.9
234.2
(-) Realized principal investment income(3)
64.1
49.5
114.9
113.0
(+) Net interest
24.0
12.1
68.3
38.2
(=) Fee Related Earnings
$292.6
$311.9
$950.3
$945.8
(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 September 30, 2026
 
Carlyle
Consolidated
Adjustments(4)
Total
Reportable
Segments
 
(Dollars in millions)
Performance revenues
$(626.6)
$912.6
$286.0
Performance revenues related compensation expense
(334.5)
520.7
186.2
Net performance revenues
$(292.1)
$391.9
$99.8
Principal investment income (loss)
$119.3
$(55.2)
$64.1
Nine Months Ended September 30, 2026
Carlyle
Consolidated
Adjustments(4)
Total
Reportable
Segments
(Dollars in millions)
Performance revenues
$(1,263.0)
$1,925.6
$662.6
Performance revenues related compensation expense
(608.8)
1,036.5
427.7
Net performance revenues
$(654.2)
$889.1
$234.9
Principal investment income (loss)
$252.9
$(138.0)
$114.9
 
Three Months Ended September 30, 2025
 
Carlyle
Consolidated
Adjustments(4)
Total
Reportable
Segments
 
(Dollars in millions)
Performance revenues
$(606.7)
$668.4
$61.7
Performance revenues related compensation expense
(324.6)
367.2
42.6
Net performance revenues
$(282.1)
$301.2
$19.1
Principal investment income (loss)
$87.7
$(38.2)
$49.5
Nine Months Ended September 30, 2025
Carlyle
Consolidated
Adjustments(4)
Total
Reportable
Segments
(Dollars in millions)
Performance revenues
$255.0
$421.6
$676.6
Performance revenues related compensation expense
290.4
152.0
442.4
Net performance revenues
$(35.4)
$269.6
$234.2
Principal investment income (loss)
$79.8
$33.2
$113.0
(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 Non-GAAP
results, (ii) amounts earned from the Consolidated Funds, which are eliminated in the U.S. GAAP consolidation but are
included in the Non-GAAP results, (iii) amounts attributable to non-controlling interests in consolidated entities, which are
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
from the Non-GAAP results.
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Distributable Earnings for our reportable segments are as follows: 
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2026
2025
2026
2025
 
(Dollars in millions)
Global Private Equity
$237.2
$146.8
$605.6
$644.3
Global Credit
128.1
126.4
384.3
357.8
Carlyle AlpInvest
67.2
95.2
241.9
252.7
Distributable Earnings
$432.5
$368.4
$1,231.8
$1,254.8
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
September 30,
Change
Nine Months Ended
September 30,
Change
 
2026
2025
$
%
2026
2025
$
%
 
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$272.6
$295.0
$(22.4)
(8)%
$840.3
$880.4
$(40.1)
(5)%
Portfolio advisory and
transaction fees, net and
other
5.5
6.5
(1.0)
(15)%
30.2
27.9
2.3
8%
Fee related performance
revenues
4.7
—
4.7
NM
9.8
—
9.8
NM
Total fund level fee
revenues
282.8
301.5
(18.7)
(6)%
880.3
908.3
(28.0)
(3)%
Realized performance revenues
273.0
38.0
235.0
NM
554.2
599.8
(45.6)
(8)%
Realized principal investment
income (loss)
21.0
(0.4)
21.4
NM
38.4
27.1
11.3
42%
Interest income
5.6
7.4
(1.8)
(24)%
17.9
18.9
(1.0)
(5)%
Total revenues
582.4
346.5
235.9
68%
1,490.8
1,554.1
(63.3)
(4)%
Segment Expenses
Compensation and benefits
Cash-based compensation
and benefits
83.0
97.4
(14.4)
(15)%
282.6
306.5
(23.9)
(8)%
Realized performance
revenues related
compensation
175.0
24.2
150.8
NM
353.8
385.5
(31.7)
(8)%
Total compensation and
benefits
258.0
121.6
136.4
112%
636.4
692.0
(55.6)
(8)%
General, administrative, and
other indirect expenses
59.5
56.2
3.3
6%
167.9
155.2
12.7
8%
Depreciation and amortization
expense
9.0
7.6
1.4
18%
25.3
21.5
3.8
18%
Interest expense
18.7
14.3
4.4
31%
55.6
41.1
14.5
35%
Total expenses
345.2
199.7
145.5
73%
885.2
909.8
(24.6)
(3)%
(=) Distributable Earnings
$237.2
$146.8
$90.4
62%
$605.6
$644.3
$(38.7)
(6)%
(-) Realized net performance
revenues
98.0
13.8
84.2
NM
200.4
214.3
(13.9)
(6)%
(-) Realized principal investment
income (loss)
21.0
(0.4)
21.4
NM
38.4
27.1
11.3
42%
(+) Net interest
13.1
6.9
6.2
90%
37.7
22.2
15.5
70%
(=) Fee Related Earnings
$131.3
$140.3
$(9.0)
(6)%
$404.5
$425.1
$(20.6)
(5)%
(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 nine
months ended September 30, 2026:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026 v. 2025
(Dollars in millions)
Distributable Earnings, September 30, 2025
$146.8
$644.3
Increases (decreases):
Decrease in Fee related earnings
(9.0)
(20.6)
Increase (decrease) in Realized net performance revenues
84.2
(13.9)
Increase in Realized principal investment income
21.4
11.3
Increase in Net interest
(6.2)
(15.5)
Total increase (decrease)
90.4
(38.7)
Distributable Earnings, September 30, 2026
$237.2
$605.6
Realized net performance revenues. Realized net performance revenues increased $84.2 million for the three
months ended September 30, 2026, as compared to the prior year period, and decreased $13.9 million for the nine
months ended September 30, 2026, as compared to the prior year period. Realized net performance revenues for
the three and nine months ended September 30, 2026 were generated by a diverse set of funds, including CJP IV,
CEOF II, NGP XI, CIEP I and CETP IV. The year-to-date period also included realizations from CP VI and CRP VIII.
Realized net performance revenues for the three months ended September 30, 2025 were primarily attributable to
realizations in CJP III and CRP VIII. Realized net performance revenues for the nine months ended September 30,
2025 were primarily attributable to realizations in CPP II, NGP XI, CAP IV, and CETP IV.
Realized principal investment income. Realized principal investment income increased $21.4 million for three
months ended September 30, 2026, as compared to the prior year period, primarily due to higher realized principal
investment income from our U.S. buyout, Europe growth and life sciences funds, as well as the NGP Energy funds.
Realized principal investment income increased $11.3 million for the nine months ended September 30, 2026, as
compared to the prior year period, primarily due to higher realized investment income from our U.S. buyout and
Japan buyout funds, partially offset by realized principal investment losses from our Europe buyout funds. Global
Private Equity distributable earnings is expected to be lower in the fourth quarter of 2026 due to the expected
realization of a loss on an investment in an infrastructure fund. Through September 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 in the fourth quarter
of 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 nine
months ended September 30, 2026:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026 v. 2025
(Dollars in millions)
Fee Related Earnings, September 30, 2025
$140.3
$425.1
Increases (decreases):
Decrease in Fee revenues
(18.7)
(28.0)
Decrease in Cash-based compensation and benefits
14.4
23.9
Increase in General, administrative and other indirect expenses
(3.3)
(12.7)
All other changes
(1.4)
(3.8)
Total decrease
(9.0)
(20.6)
Fee Related Earnings, September 30, 2026
$131.3
$404.5
Fee revenues. The following table provides the components of the changes in Fee revenues for the periods
presented:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026 v. 2025
(Dollars in millions)
Lower Fund management fees
$(22.4)
$(40.1)
(Lower) higher Portfolio advisory and transaction fees, net and other
(1.0)
2.3
Higher Fee related performance revenues
4.7
9.8
Total decrease in Fee revenues
$(18.7)
$(28.0)
Fund management fees decreased for the three and nine months ended September 30, 2026, as compared to
the prior year periods, driven by exit activity in funds on which management fees are based on invested capital and
the stepdown in CP VII. Fee-earning AUM declined to $96.1 billion as of September 30, 2026, from $101.1 billion as
of September 30, 2025, primarily driven by substantial returns of capital to fund investors. The decrease for the nine
months ended September 30, 2026 was partially offset by the activation of management fees in CRP X in April
2025.
Fee related performance revenues increased for the three and nine months ended September 30, 2026, as
compared to the prior year periods, primarily due to fees earned from our private equity evergreen wealth platform,
CPEP, which launched in late 2025.
Cash-based compensation and benefits expense. Cash-based compensation and benefits expense
decreased $14.4 million and $23.9 million for the three and nine months ended September 30, 2026, as compared
to the prior year periods, primarily due to a decrease in discretionary bonus expense, partially offset by the impact of
increased headcount.
General, administrative and other indirect expenses. General, administrative and other indirect expenses 
increased $12.7 million for the nine months ended September 30, 2026, as compared to the prior year period,
primarily due to higher IT-related spending, higher travel costs, and unfavorable foreign currency remeasurement
resulting from the strengthening of the U.S. dollar in 2026, partially offset by lower professional fees.
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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 September 30,
 
2026
2025
Global Private Equity
(Dollars in millions)
Components of Fee-earning AUM(1)
Fee-earning AUM based on capital commitments
$41,081
$41,525
Fee-earning AUM based on invested capital
43,702
49,232
Fee-earning AUM based on net asset value
9,095
7,472
Fee-earning AUM based on lower of cost or fair value
2,187
2,918
Total Fee-earning AUM
$96,065
$101,147
Annualized Management Fee Rate(2)
1.14%
1.17%
(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
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
(Dollars in millions)
Balance, Beginning of Period
$96,557
$102,330
$101,366
$98,033
Inflows(1)
1,380
413
3,235
11,079
Outflows (including realizations)(2)
(1,969)
(1,583)
(8,272)
(9,599)
Market Activity & Other(3)
41
97
122
(161)
Foreign Exchange(4)
56
(110)
(386)
1,795
Balance, End of Period
$96,065
$101,147
$96,065
$101,147
(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 $96.1 billion at September 30, 2026 decreased 1% from $96.6 billion at June 30, 2026.
The net decrease was due to:
•Outflows of $2.0 billion, driven by realizations in funds that charge fees on invested capital, notably in the
NGP energy funds and our U.S. real estate funds, as well as the expiration of fees in our Europe buyout
funds during the period.
Offsetting this decrease were:
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•Inflows of $1.4 billion, primarily driven by investment activity in our U.S. growth funds which charge fees
on invested capital, as well as investments in our evergreen funds which charge fees on net asset value.
Fee-earning AUM at September 30, 2026 decreased 5% from $101.4 billion at December 31, 2025, due to:
•Outflows of $8.3 billion, which were driven by realizations in funds that charge fees on invested capital,
notably in our U.S. buyout, U.S. real estate and Europe buyout funds, as well as the expiration of fees in
our U.S. growth funds.
Offsetting this decrease were:
•Inflows of $3.2 billion, primarily driven by investments in our evergreen funds which charge fees on net
asset value, as well as investment activity in our U.S. growth funds which charge fees on invested capital.
Fee-earning AUM at September 30, 2026 decreased 5% from $101.1 billion at September 30, 2025, due to:
•Outflows of $9.3 billion driven by realizations in funds that charge fees on invested capital, notably in our
U.S. buyout, U.S. real estate, and Europe buyout funds, as well as the NGP energy funds, and the
expiration of fees in our U.S. growth funds during the period.
Offsetting this decrease were:
•Inflows of $4.9 billion, primarily driven by investments in our evergreen funds, investment activity in our
U.S. real estate and U.S. growth funds which charge fees on invested capital, as well as additional fee-
paying capital raised in our life sciences funds.
Total AUM
Total AUM was $160.7 billion at September 30, 2026, which comprised $120.3 billion of investments at fair
value and $40.4 billion of available capital. Approximately 8% of the fair value as of September 30, 2026 was
publicly traded, and approximately 67% 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
September 30, 2026
Nine Months Ended
September 30, 2026
 
(Dollars in millions)
Balance, Beginning of Period
$162,703
$163,543
Inflows(1)
2,173
10,843
Outflows (including realizations)(2)
(5,017)
(16,217)
Market Activity & Other(3)
794
3,167
Foreign Exchange(4)
60
(623)
Balance, End of Period
$160,713
$160,713
(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 $160.7 billion at September 30, 2026, a decrease of 1% from $162.7 billion at June 30, 2026.
The net decrease was due to:
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•Outflows of $5.0 billion, driven by realizations in our U.S. growth, Japan buyout and international energy
funds, as well as the NGP Energy funds.
Offsetting this decrease were:
•Inflows of $2.2 billion, driven by new capital raised in our U.S. growth and evergreen funds; and
•Market activity of $0.8 billion, driven by appreciation of $0.8 billion from the NGP Energy funds, $0.5
billion from our international energy funds, $0.2 billion from our Carlyle global partners funds, and $0.2
billion from our Europe growth funds, offset by depreciation of $1.2 billion from our U.S. buyout funds.
Total AUM at September 30, 2026 decreased 2% from $163.5 billion at December 31, 2025, due to:
•Outflows of $16.2 billion, primarily driven by realizations in our U.S. buyout, Japan buyout, U.S. real
estate and U.S. growth funds, as well as the NGP Energy funds; and
•Negative foreign exchange activity of $0.6 billion reflecting 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 $10.8 billion, driven by new capital raised in our U.S. buyout, U.S. growth and evergreen funds;
and
•Market activity of $3.2 billion, driven by appreciation of $2.2 billion from the NGP Energy funds, $1.8
billion from our international energy funds, and $0.7 billion from our Japan buyout funds, offset by
depreciation of $1.5 billion from our U.S. buyout funds and $0.7 billion from our Europe 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. See
“—Our Global Investment Offerings” for a legend of the fund acronyms listed below.
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(Amounts in millions)
TOTAL INVESTMENTS
REALIZED/PARTIALLY
REALIZED INVESTMENTS(12)
 
As of September 30, 2026
As of September 30, 2026
Fund (Fee Initiation Date/Stepdown
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
$12,225
83%
$3,403
$14,825
1.5x
18%
10%
$241
$4,465
2.1x
46%
CP VII (May 2018 / Oct 2021)
$18,510
$17,787
96%
$13,732
$15,136
1.6x
10%
8%
$1
$18,344
2.0x
15%
CP VI (May 2013 / May 2018)
$13,000
$13,140
101%
$26,929
$1,593
2.2x
17%
13%
$72
$27,685
2.5x
22%
CP V (Jun 2007 / May 2013)
$13,720
$13,238
96%
$28,126
$174
2.1x
18%
14%
$12
$28,138
2.3x
20%
CEP V (Oct 2018 / Oct 2024)
€6,416
€6,090
95%
€1,794
€4,346
1.0x
Neg
Neg
$—
€878
0.7x
Neg
CEP IV (Sep 2014 / Oct 2018)
€3,670
€3,964
108%
€6,294
€1,109
1.9x
16%
10%
$37
€6,260
2.1x
20%
CAP VI (Jun 2024 / Jun 2030)
$2,886
$854
30%
$—
$851
1.0x
NM
NM
$—
n/a
n/a
n/a
CAP V (Jun 2018 / Jun 2024)
$6,554
$7,185
110%
$3,235
$6,526
1.4x
10%
5%
$—
$2,146
1.3x
23%
CAP IV (Jul 2013 / Jun 2018)
$3,880
$4,146
107%
$8,715
$260
2.2x
18%
13%
$19
$8,695
2.4x
21%
CJP V (Nov 2024 / Nov 2030)
¥434,325
¥139,402
32%
¥—
¥139,768
1.0x
NM
NM
$—
n/a
n/a
n/a
CJP IV (Oct 2020 / Nov 2024)
¥258,000
¥236,110
92%
¥368,184
¥198,310
2.4x
38%
27%
$51
¥368,743
3.9x
56%
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%
$878
$1,403
2.3x
19%
14%
$70
$1,370
3.5x
28%
CGFSP II (Jun 2013 / Dec 2017)
$1,000
$943
94%
$2,083
$555
2.8x
25%
19%
$32
$2,637
2.8x
26%
CP Growth (Oct 2021 / Oct 2027)
$1,283
$744
58%
$1
$1,252
1.7x
25%
13%
$19
n/a
n/a
n/a
CETP V (Mar 2022 / Jun 2028)
€3,180
€1,818
57%
€387
€2,039
1.3x
NM
NM
$—
€389
1.6x
NM
CETP IV (Jul 2019 / Jun 2022)
€1,350
€1,204
89%
€1,859
€861
2.3x
26%
18%
$34
€1,954
3.5x
52%
CETP III (Jul 2014 / Jul 2019)
€657
€614
94%
€2,040
€213
3.7x
41%
29%
$15
€2,040
4.0x
44%
CGP II (Dec 2020 / Jan 2025)
$1,840
$984
53%
$242
$2,612
2.9x
27%
23%
$65
n/a
n/a
n/a
CGP (Jan 2015 / Mar 2021)
$3,588
$3,267
91%
$2,110
$2,044
1.3x
3%
3%
$—
$2,263
1.5x
7%
All Other Active Funds & Vehicles(13)
$22,655
n/a
$16,640
$17,596
1.5x
10%
9%
$62
$19,440
2.0x
16%
Fully Realized Funds &
Vehicles(14)(15)
$44,259
n/a
$101,208
$20
2.3x
27%
20%
$—
$101,228
2.3x
27%
TOTAL CORPORATE PRIVATE EQUITY(16)
$160,899
n/a
$225,422
$76,766
1.9x
25%
17%
$734
$233,565
2.2x
26%
Real Estate
CRP X (Apr 2025 / Jul 2030)
$9,000
$1,032
11%
$18
$1,118
1.1x
NM
NM
$—
n/a
n/a
n/a
CRP IX (Oct 2021 / Dec 2024)
$7,987
$6,652
83%
$1,062
$6,805
1.2x
8%
1%
$—
$975
1.3x
17%
CRP VIII (Aug 2017 / Oct 2021)
$5,505
$4,958
90%
$6,169
$2,359
1.7x
29%
15%
$52
$6,114
2.1x
45%
CRP VII (Jun 2014 / Dec 2017)
$4,162
$3,761
90%
$5,293
$852
1.6x
16%
10%
$(49)
$5,257
1.7x
19%
CRP VI (Mar 2011 / Jun 2014)
$2,340
$2,119
91%
$3,832
$49
1.8x
26%
17%
$3
$3,785
1.8x
27%
CPI (May 2016 / n/a)
$9,091
$9,369
n/a
$4,050
$8,396
1.3x
10%
8%
n/a*
$2,583
1.7x
11%
All Other Active Funds & Vehicles(17)
$3,044
n/a
$734
$2,760
1.1x
8%
4%
$6
$461
1.2x
18%
Fully Realized Funds &
Vehicles(15)(18)
$14,150
n/a
$21,520
$13
1.5x
9%
5%
$—
$21,533
1.5x
10%
TOTAL REAL ESTATE(16)
$45,084
n/a
$42,678
$22,351
1.4x
11%
7%
$11
$40,726
1.6x
13%
Infrastructure & Natural Resources
CIEP II (Apr 2019 / Apr 2025)
$2,286
$1,490
65%
$1,209
$1,898
2.1x
32%
18%
$79
$910
3.8x
NM**
CIEP I (Sep 2013 / Jun 2019)
$2,500
$2,470
99%
$3,790
$1,712
2.2x
17%
11%
$84
$4,587
2.3x
18%
CGIOF (Dec 2018 / Sep 2023)
$2,201
$2,132
97%
$691
$3,170
1.8x
16%
10%
$97
$841
1.9x
16%
CRSEF II (Nov 2022 / Aug 2027)
$1,187
$531
45%
$—
$1,125
2.1x
40%
27%
$32
n/a
n/a
n/a
NGP XIII (Feb 2023 / Feb 2028)
$2,300
$1,599
70%
$389
$2,175
1.6x
49%
34%
$15
$815
3.8x
NM
NGP XII (Jul 2017 / Jul 2022)
$4,304
$3,796
88%
$5,590
$2,520
2.1x
21%
15%
$39
$5,725
2.4x
33%
NGP XI (Oct 2014 / Jul 2017)
$5,325
$5,034
95%
$8,732
$1,410
2.0x
13%
10%
$45
$10,021
2.0x
13%
NGP X (Jan 2012 / Dec 2014)
$3,586
$3,351
93%
$3,590
$346
1.2x
4%
1%
$—
$3,359
1.2x
5%
All Other Active Funds & Vehicles(19)
$5,644
n/a
$4,290
$6,006
1.8x
18%
16%
$55
$4,325
2.5x
22%
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)
$29,579
n/a
$33,860
$20,361
1.8x
13%
10%
$445
$36,164
2.0x
13%
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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 September 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 stepdown date represents the contractual stepdown date under the respective fund agreements for
funds on which the fee basis stepdown has not yet occurred. Funds without a listed Fee Initiation Date and
Stepdown Date have not yet initiated fees.
(2)All amounts shown represent total capital commitments as of September 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.
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Table of Contents
(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,
CEP III, CAP I, CAP II, CAP III, 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, CEOF II, 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, CER II and CER III.
(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, CRSEF, and CGIOF II.
(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.
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Global Credit
The following table presents our results of operations for our Global Credit segment:
 
Three Months Ended
September 30,
Change
Nine Months Ended
September 30,
Change
 
2026
2025
$
%
2026
2025
$
%
 
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$161.2
$146.5
$14.7
10%
$457.1
$456.1
$1.0
0%
Portfolio advisory and
transaction fees, net and other
27.1
25.6
1.5
6%
166.9
130.0
36.9
28%
Fee related performance
revenues
34.6
28.6
6.0
21%
120.3
86.0
34.3
40%
Total fund level fee revenues
222.9
200.7
22.2
11%
744.3
672.1
72.2
11%
Realized performance revenues
4.4
8.2
(3.8)
(46)%
69.3
26.6
42.7
161%
Realized principal investment
income (loss)
41.3
42.8
(1.5)
(4)%
57.2
60.3
(3.1)
(5)%
Interest income
7.5
8.1
(0.6)
(7)%
22.5
22.1
0.4
2%
Total revenues
276.1
259.8
16.3
6%
893.3
781.1
112.2
14%
Segment Expenses
Compensation and benefits
Cash-based compensation and
benefits
80.0
83.8
(3.8)
(5)%
285.2
261.0
24.2
9%
Realized performance
revenues related
compensation
2.8
4.7
(1.9)
(40)%
43.0
15.7
27.3
174%
Total compensation and
benefits
82.8
88.5
(5.7)
(6)%
328.2
276.7
51.5
19%
General, administrative, and other
indirect expenses
44.3
28.5
15.8
55%
120.3
99.7
20.6
21%
Depreciation and amortization
expense
5.4
4.3
1.1
26%
15.1
12.0
3.1
26%
Interest expense
15.5
12.1
3.4
28%
45.4
34.9
10.5
30%
Total expenses
148.0
133.4
14.6
11%
509.0
423.3
85.7
20%
(=) Distributable Earnings
$128.1
$126.4
$1.7
1%
$384.3
$357.8
$26.5
7%
(-) Realized net performance
revenues
1.6
3.5
(1.9)
(54)%
26.3
10.9
15.4
141%
(-) Realized principal investment
income (loss)
41.3
42.8
(1.5)
(4)%
57.2
60.3
(3.1)
(5)%
(+) Net interest
8.0
4.0
4.0
100%
22.9
12.8
10.1
79%
(=) Fee Related Earnings
$93.2
$84.1
$9.1
11%
$323.7
$299.4
$24.3
8%
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Table of Contents
Distributable Earnings
The following table provides the components of the changes in Distributable Earnings for the three and nine
months ended September 30, 2026:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026 v. 2025
(Dollars in millions)
Distributable Earnings, September 30, 2025
$126.4
$357.8
Increases (decreases):
Increase in Fee related earnings
9.1
24.3
(Decrease) increase in Realized net performance revenues
(1.9)
15.4
Decrease in Realized principal investment income
(1.5)
(3.1)
Increase in Net interest
(4.0)
(10.1)
Total increase
1.7
26.5
Distributable Earnings, September 30, 2026
$128.1
$384.3
Realized net performance revenues. Realized net performance revenues increased $15.4 million for the nine
months ended September 30, 2026, as compared to the prior year period, 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 nine
months ended September 30, 2026:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026 v. 2025
(Dollars in millions)
Fee Related Earnings, September 30, 2025
$84.1
$299.4
Increases (decreases):
Increase in Fee revenues
22.2
72.2
Decrease (increase) in Cash-based compensation and benefits
3.8
(24.2)
Increase in General, administrative and other indirect expenses
(15.8)
(20.6)
All other changes
(1.1)
(3.1)
Total increase
9.1
24.3
Fee Related Earnings, September 30, 2026
$93.2
$323.7
Fee Revenues. The following table provides the components of the changes in Fee revenues for the periods
presented:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026 v. 2025
(Dollars in millions)
Higher Fund management fees
$14.7
$1.0
Higher Portfolio advisory and transaction fees, net and other
1.5
36.9
Higher Fee related performance revenues
6.0
34.3
Total increase in Fee revenues
$22.2
$72.2
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Table of Contents
The increase in Fund management fees for the three months ended September 30, 2026, as compared to the
prior year period, was primarily attributable to an increase in catch-up management fees related to the conclusion of
fundraising in our most recent vintage aviation finance fund in the third quarter of 2026. For the nine months ended
September 30, 2026, as compared to the prior year period, higher management fees from direct lending and cross-
platform vehicles were largely offset by lower management fees from our CLOs and aviation finance funds.
The increase in Portfolio advisory and transaction fees, net and other fees for the nine months ended
September 30, 2026, as compared to the prior year period, was primarily driven by an increase in capital markets
fees. The recognition of capital markets fees can be volatile as they are primarily generated by 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 nine months ended September 30, 2026, as
compared to the prior year period, 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 in the second
quarter of 2026. Growth in fees from direct lending evergreen vehicles also contributed to the increase in Fee
related performance revenues.
Cash-based compensation and benefits expense. Cash-based compensation and benefits expense increased
$24.2 million for the nine months ended September 30, 2026, as compared to the prior year period, primarily due to
increased headcount to support the growth of the business as well as an increase in Fee related performance
revenue compensation.
General, administrative and other indirect expenses. General, administrative and other indirect expenses
increased for the three months ended September 30, 2026, as compared to the prior year period, primarily due to
an increase in costs to support new funds, and higher professional fees. General, administrative and other indirect
expenses increased for the nine months ended September 30, 2026, as compared to the prior year period, primarily
due to unfavorable foreign currency remeasurement resulting from the strengthening of the U.S. dollar in 2026,
increase in costs to support new funds, and higher IT-related spending.
Fee-earning AUM
Fee-earning AUM is presented below for each period together with the components of change during each
respective period.
 
As of September 30,
 
2026
2025
Global Credit
(Dollars in millions)
Components of Fee-earning AUM(1)
Fee-earning AUM based on capital commitments
$4,934
$2,504
Fee-earning AUM based on invested capital
22,858
21,110
Fee-earning AUM based on collateral balances, at par
40,418
43,929
Fee-earning AUM based on net asset value
4,694
3,821
Fee-earning AUM based on fair value and other(2)
90,821
95,800
Total Fee-earning AUM
$163,725
$167,164
Annualized Management Fee Rate(3)
0.36%
0.37%
(1)For additional information concerning the components of Fee-earning AUM, see “—Key Financial Measures—Operating
Metrics.”
(2)Includes the fair value of Fortitude’s general account assets covered by the strategic advisory services agreement and
funds with fees based on gross asset value.
(3)Represents annualized fund management fees divided by the average of the beginning of year and each quarter end’s
Fee-earning AUM in the reporting period. Catch-up management fees were excluded in the calculation of the annualized
fund management fees.
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The table below provides the period to period rollforward of Global Credit Fee-earning AUM.
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
(Dollars in millions)
Balance, Beginning of Period
$167,630
$162,784
$169,460
$154,186
Inflows(1)
5,076
8,983
12,965
21,264
Outflows (including realizations)(2)
(3,174)
(4,878)
(10,328)
(11,406)
Market Activity & Other(3)
(5,749)
278
(8,051)
1,980
Foreign Exchange(4)
(58)
(3)
(321)
1,140
Balance, End of Period
$163,725
$167,164
$163,725
$167,164
(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 $163.7 billion at September 30, 2026, a decrease of 2% from $167.6 billion at June 30,
2026. The net decrease was due to:
•Market activity decline of $5.7 billion, which primarily reflected a decrease in the fair value of assets
covered by the Fortitude strategic advisory services agreement mainly due to an increase in interest rates
during the quarter; and
•Outflows of $3.2 billion, driven by realizations in our opportunistic credit and asset-backed finance funds,
as well as outflows from our liquid credit products.
Offsetting these decreases were:
•Inflows of $5.1 billion, which were driven by deployment across the platform, including two new-issue
CLOs in our liquid credit platform and activity in our opportunistic credit and asset-backed finance
products, closed flow reinsurance transactions in our insurance strategy, and fee-paying capital raised in
aviation.
Fee-earning AUM at September 30, 2026 decreased 3% from $169.5 billion at December 31, 2025, due to:
•Outflows of $10.3 billion, which were driven by outflows from our liquid credit products and realizations in
our opportunistic credit and asset-backed finance funds; and
•Market activity decline of $8.1 billion, which primarily reflected a decrease in the fair value of assets
covered by the Fortitude strategic advisory services agreement, partially offset by increases in our cross-
platform credit products.
Offsetting these decreases were:
•Inflows of $13.0 billion, which were driven by deployment across the platform, reinsurance and other
activity in our insurance strategy, and the closing of six new-issue CLOs.
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Fee-earning AUM at September 30, 2026 decreased 2% from $167.2 billion at September 30, 2025, due to:
•Outflows of $12.8 billion, which included outflows from our liquid credit products and realizations across
the platform, notably in our opportunistic credit and asset-backed finance products; and
•Market activity decline of $8.8 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.
Offsetting these decreases were:
•Inflows of $18.5 billion, which reflected capital deployment across the platform, including the closing of
nine new-issue CLOs, deployment across our asset-backed finance, opportunistic credit, and
infrastructure credit products, and reinsurance and other activity in our insurance strategy.
Total AUM
The table below provides the period to period rollforward of Total AUM in our Global Credit segment. 
 
Three Months Ended
September 30, 2026
Nine Months Ended
September 30, 2026
 
(Dollars in millions)
Balance, Beginning of Period
$211,119
$211,328
Inflows(1)
7,254
16,984
Outflows (including realizations)(2)
(5,988)
(15,667)
Market Activity & Other(3)
(4,985)
(4,949)
Foreign Exchange(4)
(66)
(362)
Balance, End of Period
$207,334
$207,334
(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 $207.3 billion at September 30, 2026, a decrease of 2% compared to $211.1 billion at June
30, 2026. The net decrease was due to:
•Outflows of $6.0 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; and
•Market activity decline of $5.0 billion, primarily from a decrease in the fair value of assets covered by the
Fortitude strategic advisory services agreement, partially offset by appreciation in opportunistic credit.
Offsetting these decreases were:
•Inflows of $7.3 billion, which were driven by capital raised in our opportunistic credit strategy, including the
first closing in our latest opportunistic credit fund, as well as in our aviation, and liquid credit strategies,
including two new-issue CLOs, plus reinsurance and other activity in our insurance strategy.
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Total AUM at September 30, 2026 decreased 2% from $211.3 billion at December 31, 2025, due to:
•Outflows of $15.7 billion, including outflows in our liquid credit products and realizations across the
platform, notably in our aviation and asset-backed finance products; and
•Market activity decline of $4.9 billion, primarily from a decrease in the fair value of assets covered by the
Fortitude strategic advisory services agreement, partially offset by increases in our opportunistic credit,
direct lending, and aviation products.
Offsetting these decreases were:
•Inflows of $17.0 billion, which were driven by capital raised in our liquid credit strategy, including the
closing of six new-issue CLOs, opportunistic credit strategy, including the first closing in our latest
opportunistic credit fund, and asset-backed finance strategy, including the first closing in our asset-backed
income fund, as well as reinsurance and other activity 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 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. See
“—Our Global Investment Offerings” for a legend of the fund acronyms listed below. 
(Dollars in millions)
 
TOTAL INVESTMENTS
 
 
As of September 30, 2026
Fund (Fee Initiation Date/Stepdown 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 IV - Levered (Jul 2026 / Jan 2032)
$2,248
$158
7%
$—
$159
1.0x
NM
NM
$—
CCOF III - Levered (Feb 2023 / Oct 2028)
$4,678
$4,886
104%
$1,256
$4,795
1.2x
24%
16%
$44
CCOF II (Nov 2020 / Mar 2026)
$4,430
$5,966
135%
$5,524
$2,883
1.4x
13%
9%
$98
CCOF I (Nov 2017 / Sep 2022)
$2,373
$3,546
149%
$4,013
$1,218
1.5x
16%
11%
$32
CSP IV (Apr 2016 / Dec 2020)
$2,500
$2,500
100%
$1,828
$1,877
1.5x
10%
6%
$—
CICF II (Mar 2024 / Dec 2029)
$2,319
$502
22%
$225
$317
1.1x
NM
NM
$—
SASOF V (Apr 2020 / Jan 2027)
$975
$801
82%
$861
$775
2.0x
21%
15%
$49
SASOF IV (Jul 2017 / Jul 2024)
$950
$711
75%
$831
$458
1.8x
13%
9%
$36
SASOF III (Nov 2014 / n/a)
$833
$991
119%
$1,326
$45
1.4x
19%
12%
$4
All Other Active Funds & Vehicles(11)
$12,985
n/a
$5,930
$10,234
1.2x
10%
9%
$66
Fully Realized Funds & Vehicles(12)(13)
$9,698
n/a
$12,155
$27
1.3x
9%
4%
$—
TOTAL GLOBAL CREDIT CARRY FUNDS
$42,745
n/a
$33,948
$22,789
1.3x
11%
7%
$327
(1)The fund stepdown date represents the contractual stepdown date under the respective fund agreements for
funds on which the fee basis stepdown has not yet occurred. Funds without a listed Fee Initiation Date and
Stepdown Date have not yet initiated fees.
(2)All amounts shown represent total capital commitments as of September 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. The CCOF IV platform, which also includes CCOF IV - Unlevered,
collectively has $2.4 billion of Committed Capital.
(3)Represents the original cost of investments since the inception of the fund. For CSP IV, amounts are
presented net of investment-level recallable proceeds to reflect the recyclability of invested capital for the
purpose of calculating the fund MOIC.
(4)Represents all realized proceeds since inception of the fund.
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(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)Aggregate includes the following funds, as well as all active co-investments, separately managed accounts
(SMAs), and stand-alone investments arranged by us: CAPF VII, CICF, CAF, CALF, CCOF III - Unlevered,
CCOF III PSV, and CCOF IV - Unlevered.
(12)Aggregate includes the following funds, as well as related co-investments, separately managed accounts
(SMAs), and certain other stand-alone investments arranged by us: CSP I, CSP II, CSP III, CEMOF I,
CEMOF II, CSC, CMP I, CMP II, SASOF II, and CASCOF.
(13)Funds are included when all investments have been realized. There may be remaining fair value and net
accrued carry where there are outstanding escrow balances or undistributed proceeds.
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Carlyle AlpInvest
The following table presents our results of operations for our Carlyle AlpInvest segment:
 
Three Months Ended
September 30,
Change
Nine Months Ended
September 30,
Change
 
2026
2025
$
%
2026
2025
$
%
 
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$113.1
$132.4
$(19.3)
(15)%
$354.1
$352.5
$1.6
0%
Portfolio advisory and
transaction fees, net and
other
—
0.2
(0.2)
(100)%
0.1
0.2
(0.1)
(50)%
Fee related performance
revenues
10.4
18.9
(8.5)
(45)%
53.7
39.7
14.0
35%
Total fund level fee
revenues
123.5
151.5
(28.0)
(18)%
407.9
392.4
15.5
4%
Realized performance revenues
8.6
15.5
(6.9)
(45)%
39.1
50.2
(11.1)
(22)%
Realized principal investment
income
1.8
7.1
(5.3)
(75)%
19.3
25.6
(6.3)
(25)%
Interest income
2.1
2.1
—
—%
7.2
6.3
0.9
14%
Total revenues
136.0
176.2
(40.2)
(23)%
473.5
474.5
(1.0)
0%
Segment Expenses
Compensation and benefits
Cash-based compensation
and benefits
32.1
39.3
(7.2)
(18)%
112.1
110.8
1.3
1%
Realized performance
revenues related
compensation
8.4
13.7
(5.3)
(39)%
30.9
41.2
(10.3)
(25)%
Total compensation and
benefits
40.5
53.0
(12.5)
(24)%
143.0
152.0
(9.0)
(6)%
General, administrative, and
other indirect expenses
20.5
22.6
(2.1)
(9)%
65.8
54.3
11.5
21%
Depreciation and amortization
expense
2.8
2.1
0.7
33%
7.9
6.0
1.9
32%
Interest expense
5.0
3.3
1.7
52%
14.9
9.5
5.4
57%
Total expenses
68.8
81.0
(12.2)
(15)%
231.6
221.8
9.8
4%
(=) Distributable Earnings
$67.2
$95.2
$(28.0)
(29)%
$241.9
$252.7
$(10.8)
(4)%
(-) Realized net performance
revenues
0.2
1.8
(1.6)
(89)%
8.2
9.0
(0.8)
(9)%
(-) Realized principal investment
income
1.8
7.1
(5.3)
(75)%
19.3
25.6
(6.3)
(25)%
(+) Net interest
2.9
1.2
1.7
142%
7.7
3.2
4.5
141%
(=) Fee Related Earnings
$68.1
$87.5
$(19.4)
(22)%
$222.1
$221.3
$0.8
0%
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Distributable Earnings
The following table provides the components of the changes in Distributable Earnings for the three and nine
months ended September 30, 2026:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026 v. 2025
(Dollars in millions)
Distributable Earnings, September 30, 2025
$95.2
$252.7
Increases (decreases):
(Decrease) increase in Fee related earnings
(19.4)
0.8
Decrease in Realized net performance revenues
(1.6)
(0.8)
Decrease in Realized principal investment income
(5.3)
(6.3)
Increase in Net interest
(1.7)
(4.5)
Total decrease
(28.0)
(10.8)
Distributable Earnings, September 30, 2026
$67.2
$241.9
Fee Related Earnings
The following table provides the components of the changes in Fee Related Earnings for the three and nine
months ended September 30, 2026:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026 v. 2025
(Dollars in millions)
Fee Related Earnings, September 30, 2025
$87.5
$221.3
Increases (decreases):
(Decrease) increase in Fee revenues
(28.0)
15.5
Decrease (increase) in Cash-based compensation and benefits
7.2
(1.3)
Decrease (increase) in General, administrative and other indirect
expenses
2.1
(11.5)
All other changes
(0.7)
(1.9)
Total (decrease) increase
(19.4)
0.8
Fee Related Earnings, September 30, 2026
$68.1
$222.1
Fee Revenues. The following table provides the components of the changes in Fee revenues for the periods
presented:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026 v. 2025
(Dollars in millions)
(Lower) higher Fund management fees
$(19.3)
$1.6
Lower Portfolio advisory and transaction fees, net and other
(0.2)
(0.1)
(Lower) higher Fee related performance revenues
(8.5)
14.0
Total (decrease) increase in Fee revenues
$(28.0)
$15.5
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The decrease in Fund management fees for the three months ended September 30, 2026, as compared to the
prior year period, was primarily driven by a decrease in catch-up management fees of $31.1 million due to the
conclusion of fundraising of our most recent vintage secondaries & portfolio finance funds in the third quarter of
2025.
The decrease in Fee related performance revenues for the three months ended September 30, 2026, as
compared to the prior year period, was primarily driven by performance in our CAPM and CAPS funds. The
increase in Fee related performance revenues for the nine months ended September 30, 2026, as compared to the
prior year period, reflects growth and performance in our CAPM and CAPS funds.
Cash-based compensation and benefits. Cash-based compensation and benefits decreased $7.2 million for
the three months ended September 30, 2026, as compared to the prior year period, primarily due to a decrease in
compensation associated with Fee related performance revenues.
General, administrative and other indirect expenses. General, administrative and other indirect expenses
increased $11.5 million for the nine months ended September 30, 2026, as compared to the prior year period,
primarily due to an increase in professional fees and higher IT-related spending.
Fee-earning AUM
Fee-earning AUM is presented below for each period together with the components of change during each
respective period.
 
As of September 30,
 
2026
2025
Carlyle AlpInvest
(Dollars in millions)
Components of Fee-earning AUM(1)
Fee-earning AUM based on capital commitments
$28,451
$27,966
Fee-earning AUM based on invested capital(2)
9,665
8,968
Fee-earning AUM based on net asset value
21,522
17,051
Fee-earning AUM based on lower of cost or fair market value and other
10,216
9,658
Total Fee-earning AUM
$69,854
$63,643
Annualized Management Fee Rate(3)
0.67%
0.69%
(1)For additional information concerning the components of Fee-earning AUM, see “—Key Financial Measures—Operating
Metrics.”
(2)Includes amounts committed to or reserved for certain AlpInvest funds.
(3)Represents annualized fund management fees divided by the average of the beginning of year and each quarter end’s
Fee-earning AUM in the reporting period. Catch-up management fees were excluded in the calculation of the annualized
fund management fees.
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The table below provides the period to period rollforward of Fee-earning AUM in our Carlyle AlpInvest
segment.
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2026
2025
2026
2025
(Dollars in millions)
Balance, Beginning of Period
$70,222
$59,587
$65,952
$52,139
Inflows(1)
1,499
4,696
7,890
11,653
Outflows (including realizations)(2)
(1,995)
(1,102)
(3,741)
(2,969)
Market Activity & Other(3)
232
473
330
668
Foreign Exchange(4)
(104)
(11)
(577)
2,152
Balance, End of Period
$69,854
$63,643
$69,854
$63,643
(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, fee-earning commitments invested in vehicles for which
management fees are based on invested capital, and gross subscriptions in our 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, and reductions for funds that are no longer calling for fees.
Distributions for funds earning management fees based on commitments during the period do not affect Fee-earning AUM.
(3)Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based
on the lower of cost or fair value and net asset value.
(4)Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar
denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are
translated at the spot rate as of the period end.
Fee-earning AUM was $69.9 billion at September 30, 2026, a slight decrease from $70.2 billion at June 30,
2026. The net decrease was due to:
•Outflows of $2.0 billion, which were driven by realizations in our secondaries & portfolio finance funds that
charge fees on fair value or invested capital.
Offsetting this decrease were:
•Inflows of $1.5 billion, which were driven by investment activity across all strategies, notably in our
secondaries & portfolio finance and CAPM funds.
Fee-earning AUM at September 30, 2026 increased 6% from $66.0 billion at December 31, 2025, due to:
•Inflows of $7.9 billion, which were driven by investment activity and fee-paying capital raised in our
secondaries & portfolio finance strategy, as well as investment activity in our AlpInvest wealth products.
Offsetting this increase were:
•Outflows of $3.7 billion, which were driven by realizations in products across all strategies that charge
fees on fair value or invested capital.
Fee-earning AUM at September 30, 2026 increased 10% from $63.6 billion at September 30, 2025, due to:
•Inflows of $12.3 billion, which were driven by fee-paying capital raised and investment activity across all
strategies, notably in our secondaries & portfolio finance and AlpInvest wealth products; and
•Market appreciation of $0.6 billion, which was driven by our AlpInvest wealth products in which fees are
based on net asset value.
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Offsetting these increases were:
•Outflows of $6.0 billion, which reflected realizations, notably in our secondaries & portfolio finance and
primary strategies, and stepdowns in fee bases.
Total AUM
The table below provides the period to period rollforward of Total AUM in our Carlyle AlpInvest segment.
 
Three Months Ended
September 30, 2026
Nine Months Ended
September 30, 2026
 
(Dollars in millions)
Balance, Beginning of Period
$111,673
$101,996
Inflows(1)
1,384
12,746
Outflows (including realizations)(2)
(3,274)
(7,240)
Market Activity & Other(3)
906
4,014
Foreign Exchange(4)
(213)
(1,040)
Balance, End of Period
$110,476
$110,476
(1)Inflows reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies,
this reflects translation at the average quarterly rate.
(2)Outflows includes distributions in our carry funds, related co-investment vehicles and separately managed accounts, as
well as the expiration of available capital.
(3)Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry
funds, related co-investment vehicles and separately managed accounts, the net impact of fees, expenses and non-
investment income, as well as other changes in AUM.
(4)Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar
denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are
translated at the spot rate as of the period end.
Total AUM was $110.5 billion at September 30, 2026, a decrease of 1% compared to $111.7 billion at June 30,
2026. The net decrease was due to:
•Outflows of $3.3 billion, predominantly from realizations in our secondaries & portfolio finance and primary
strategies.
Offsetting this decrease were:
•Inflows of $1.4 billion, which reflected fundraising across the segment, notably in our secondaries &
portfolio finance and CAPM funds; and
•Market appreciation of $0.9 billion, which was driven by appreciation in our primary and coinvestment
funds.
Total AUM at September 30, 2026 increased 8% compared to $102.0 billion at December 31, 2025, due to:
•Inflows of $12.7 billion, which reflected fundraising across the platform, notably in our secondaries &
portfolio finance, primary, and AlpInvest wealth products; and
•Market appreciation of $4.0 billion, which was driven by our secondaries & portfolio finance and primary
strategies.
Offsetting these increases were:
•Outflows of $7.2 billion, which reflected realizations across all strategies, notably in our secondaries &
portfolio finance and primary funds; and
•Negative foreign exchange activity of $1.0 billion primarily reflected the impact of a strengthening U.S.
Dollar on the translation of our EUR-denominated funds to USD.
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Fund Performance Metrics
The fund return information reflected in this discussion and analysis is not indicative of the performance of The
Carlyle Group Inc. and is also not necessarily indicative of the future performance of any particular fund. An
investment in The Carlyle 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.
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The following table reflects the performance of our significant funds in our Carlyle AlpInvest business. We also
present fund performance information for portfolios of investments held by separately managed accounts, generally
aggregated either as invested alongside the relevant commingled fund or over a specified time period.
(Amounts in millions)
 
 
TOTAL INVESTMENTS
 
 
 
As of September 30, 2026
Carlyle AlpInvest (1)(8)
Vintage
Year
Fund Size
Cumulative
Invested
Capital
(2)(3)
Realized
Value (3)
Remaining
Fair Value
(3)
Total
Value
(3)(4)
MOIC
(5)
Gross
IRR  
(6)(10)
Net
IRR
(7)(10)
Net
Accrued
Carry/
(Giveback)
(12)
 
 
 
(Reported in Local Currency, in Millions)
SECONDARIES & PORTFOLIO FINANCE
ASF VIII
2024
$13,422
$7,992
$701
$9,685
$10,387
1.3x
NM
NM
$70
ASF VII
2020
$6,769
$5,086
$2,704
$5,277
$7,982
1.6x
14%
11%
$114
ASF VII - SMAs
2020
€2,043
€1,812
€780
€1,894
€2,674
1.5x
13%
11%
$35
ASF VI
2017
$3,333
$2,822
$3,279
$1,269
$4,547
1.6x
14%
10%
$53
ASF VI - SMAs
2017
€2,817
€2,718
€2,962
€1,311
€4,273
1.6x
12%
10%
$42
ASF V
2012
$756
$670
$1,105
$80
$1,186
1.8x
17%
14%
$3
ASF V - SMAs
2012
€3,916
€4,027
€7,132
€298
€7,430
1.8x
20%
19%
$6
SMAs 2009-2011
2010
€1,859
€1,973
€3,409
€66
€3,475
1.8x
19%
18%
$—
ASPF II
2023
$2,227
$1,644
$430
$1,581
$2,012
1.2x
22%
15%
$17
AAF II
2025
$1,677
$622
$28
$797
$825
1.3x
NM
NM
$7
All Other Active Funds & Vehicles (9)
Various
$2,091
$618
$2,278
$2,896
1.4x
17%
14%
$40
Fully Realized Funds & Vehicles (29)
Various
€4,445
€7,242
€11
€7,253
1.6x
19%
18%
$—
CO-INVESTMENTS
ACF IX
2023
$4,120
$2,855
$197
$3,261
$3,458
1.2x
15%
10%
$12
ACF IX - SMAs
2023
$1,124
$494
$30
$567
$598
1.2x
16%
13%
$4
ACF VIII
2021
$3,614
$3,479
$549
$4,357
$4,907
1.4x
9%
8%
$6
ACF VIII - SMAs
2021
$1,099
$1,023
$165
$1,275
$1,439
1.4x
10%
8%
$9
ACF VII
2017
$1,688
$1,679
$1,903
$1,324
$3,228
1.9x
13%
11%
$55
ACF VII - SMAs
2017
€1,452
€1,424
€1,322
€1,242
€2,564
1.8x
12%
10%
$38
SMAs 2014-2016
2014
€1,274
€1,091
€2,603
€158
€2,762
2.5x
24%
22%
$3
SMAs 2012-2013
2012
€1,124
€1,039
€2,849
€113
€2,962
2.8x
28%
26%
$1
SMAs 2009-2010
2010
€1,475
€1,350
€3,612
€352
€3,964
2.9x
23%
21%
$—
Strategic SMAs
Various
$5,252
$2,921
$5,696
$8,617
1.6x
14%
13%
$80
All Other Active Funds & Vehicles (9)
Various
€149
€167
€87
€254
1.7x
35%
34%
$—
Fully Realized Funds & Vehicles (29)
Various
€5,942
€10,150
€—
€10,150
1.7x
15%
13%
$—
PRIMARY INVESTMENTS
SMAs 2024-2026
2024
€4,386
€454
€17
€474
€491
1.1x
NM
NM
$—
SMAs 2021-2023
2021
€4,704
€2,417
€277
€2,778
€3,055
1.3x
13%
12%
$1
SMAs 2018-2020
2018
$3,116
$2,813
$1,234
$3,056
$4,290
1.5x
13%
12%
$5
SMAs 2015-2017
2015
€2,501
€2,564
€3,232
€1,954
€5,186
2.0x
18%
18%
$8
SMAs 2012-2014
2012
€5,080
€5,889
€10,317
€2,741
€13,059
2.2x
17%
17%
$10
SMAs 2009-2011
2009
€4,877
€5,653
€10,862
€1,245
€12,107
2.1x
17%
16%
$1
SMAs 2006-2008
2005
€11,500
€13,158
€22,187
€985
€23,172
1.8x
10%
10%
$—
SMAs 2003-2005
2003
€4,628
€4,991
€7,947
€128
€8,075
1.6x
10%
9%
$—
All Other Active Funds & Vehicles (9)
Various
€1,824
€1,846
€219
€2,065
1.1x
3%
2%
$—
Fully Realized Funds & Vehicles (29)
Various
€4,856
€7,917
€20
€7,937
1.6x
12%
11%
$—
TOTAL CARLYLE ALPINVEST (USD)(11)
$115,373
$137,003
$58,735
$195,738
1.7x
13%
12%
$619
(1)Includes private equity and mezzanine primary fund investments, secondary fund investments and co-
investments originated by AlpInvest. Excluded from the performance information shown are: (a) investments
that were not originated by AlpInvest (i.e., AlpInvest did not make the original investment decision or
recommendation); (b) Direct Investments, which was spun off from AlpInvest in 2005; (c) Carlyle AlpInvest
Private Markets (“CAPM”); (d) Carlyle AlpInvest Private Markets Secondaries (“CAPS”); and (e) LP co-
investment vehicles managed by AlpInvest. As of September 30, 2026, these excluded portfolios amounted to
approximately $20.8 billion of AUM in the aggregate.
(2)Represents the original cost of investments since inception of the fund.
(3)To exclude the impact of FX, all foreign currency cash flows have been converted to the currency representing a
majority of the capital committed to the relevant fund at the reporting period spot rate.
(4)Represents all realized proceeds combined with remaining fair value, before management fees, expenses and
carried interest.
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(5)Multiple of invested capital (“MOIC”) represents total value, before management fees, expenses and carried
interest, divided by cumulative invested capital.
(6)Gross Internal Rate of Return (“Gross IRR”) represents the annualized IRR for the period indicated on Limited
Partner invested capital based on investment contributions, distributions and unrealized value of the underlying
investments, before management fees, expenses and carried interest at the AlpInvest level.
(7)Net Internal Rate of Return (“Net IRR”) represents the annualized IRR for the period indicated on Limited
Partner invested capital based on investment contributions, distributions and unrealized value of the underlying
investments, after management fees, expenses and carried interest. Fund level IRRs are based on aggregate
Limited Partner cash flows, and this blended return may differ from that of individual Limited Partners. As a
result, certain funds may generate accrued performance revenues with a blended Net IRR that is below the
preferred return hurdle for that fund. 
(8)“ASF” stands for AlpInvest Secondaries Fund, “ACF” stands for AlpInvest Co-Investment Fund, “ASPF” stands
for AlpInvest Strategic Portfolio Finance, “AAF” stands for AlpInvest Atom Fund, and “SMAs” are Separately
Managed Accounts. “ASF - SMAs” and “ACF - SMAs” reflect the aggregated portfolios of investments held by
SMAs within the relevant strategy, which invest alongside the relevant ASF or ACF (as applicable). Strategic
SMAs reflect the aggregated portfolios of co-investments made by SMAs sourced from the SMA investor’s own
private equity fund investment portfolio. Other SMAs reflect the aggregated portfolios of investments within the
relevant strategy that began making investments in the corresponding time periods. Co-Investments SMAs
2014-2016 does not include two SMAs that started in 2016 but invested a substantial majority alongside ACF
VII. These two SMAs have instead been grouped with ACF VII - SMAs. ACF IX SMAs and Primary Investments
SMAs 2024-2026 do not include one SMA that started in 2026 but will invest a substantial majority alongside
ACF X and Primary Investments 2027-2029. This SMA will remain grouped with All Other Active Funds &
Vehicles until the activation of ACF X and Primary Investments 2027-2029. An SMA may pursue multiple
investment strategies and make commitments over multiple years.
(9)Includes ASF VIII - SMAs,  AlpInvest Atom Fund, all mezzanine investment portfolios, all ‘clean technology’
private equity investment portfolios, all strategic portfolio finance SMAs, all AlpInvest senior portfolio lending
SMAs, and any state-focused investment mandate portfolios.
(10)For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the
limited time since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is
considered meaningful but is negative as of reporting period end.
(11)For purposes of aggregation, funds that report in foreign currency have been converted to U.S. dollars at the
reporting period spot rate.
(12)Represents the net accrued performance revenue balance/(giveback obligation) as of the current quarter end.
Liquidity and Capital Resources
Historical Liquidity and Capital Resources
We have historically required limited capital resources to support the working capital and operating needs of
our business. Our management fees have largely covered our operating costs and all realized performance
allocations, after covering the related compensation, are available for distribution to shareholders. Approximately
97% of all capital commitments to our funds are provided by our fund investors, with the remaining amount typically
funded by Carlyle, our senior Carlyle professionals, advisors, and other professionals. We may elect to invest
additional amounts in new investment areas or other growth opportunities through increased investment in our
funds, which we may subsequently transfer to newly developed products.
Our Sources of Liquidity
We have multiple sources of liquidity to meet our capital needs, as outlined below. Although we may consider
other financings to invest in growing our business, such as the $800 million senior note offering in 2025, we believe
these sources will be sufficient to fund our capital needs for at least the next twelve months. We believe we will
meet longer-term expected future cash requirements and obligations through a combination of existing cash and
cash equivalent balances, cash flow from operations, accumulated earnings, and amounts available for borrowing
from our senior revolving credit facility or other financings.
Cash, Cash Equivalents, and Corporate Treasury Investments. Cash and cash equivalents, as well as
corporate treasury investments (if any), were $1.6 billion at September 30, 2026. However, a portion of this cash is
allocated for specific business purposes, including, but not limited to: (i) performance allocations and incentive fee
related cash that has been received but not yet distributed as performance allocations and incentive fee related
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compensation, (ii) amounts owed to non-controlling interests, and (iii) regulatory capital. After deducting cash
amounts allocated to the specific requirements mentioned above, the remaining cash, cash equivalents, and
corporate treasury investments, was $1.5 billion as of September 30, 2026.
Borrowings. Our credit facilities, notes offerings, and CLO borrowings are additional sources of liquidity, as
discussed in Note 5, Borrowings, to the condensed consolidated financial statements. The amended and restated
revolving credit facility has a borrowing capacity of $1.0 billion as of September 30, 2026, and is scheduled to
mature on May 29, 2030. Additionally, 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, which provides for a
revolving line of credit with a capacity of $300 million, that matures in September 2027, and a second revolving line
of credit with a capacity of $200 million, which the Company amended in August 2026 to extend the maturity date to
August 18, 2027. There are no amounts outstanding on the credit facilities as of September 30, 2026.
The following table summarizes our debt obligations as of September 30, 2026. The maturity profile of these
debt obligations, including our credit facilities, and our other contractual obligations is presented under “Contractual
Obligations” later in this section.
Instrument
Coupon
Maturity
Principal
Carrying
Value(1)
(Dollars in millions)
CLO Borrowings
Various(2)
Various(2)
$370.4
$367.7
Senior Notes
3.500%
September 19, 2029
425.0
423.7
Senior Notes
5.050%
September 19, 2035
800.0
791.8
Senior Notes
5.625%
March 30, 2043
600.0
600.5
Senior Notes
5.650%
September 15, 2048
350.0
346.8
Subordinated Notes
4.625%
May 15, 2061
500.0
486.2
Total debt obligations
$3,045.4
$3,016.7
(1)Carrying value reflects unamortized original issue discount or premium and deferred financing costs.
(2)CLO borrowings carried a weighted-average interest rate of 5.07% and weighted-average remaining maturity of 10.72
years as of September 30, 2026. See Note 5, Borrowings, for fair values and additional terms.
Realized Performance Allocation Revenues. Another source of liquidity we may use to meet our capital needs
is the realized performance allocation revenues generated by our investment funds. Performance allocations are
generally realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in
excess of the preferred return. For certain funds, performance allocations are realized once all invested capital and
expenses have been returned to the fund’s investors and the fund’s cumulative returns are in excess of the
preferred return.
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Our accrued performance allocations by segment as of September 30, 2026, gross and net of accrued
giveback obligations, are set forth below:
Accrued
Performance
Allocations(1)
Accrued
Giveback
Obligation
Net Accrued
Performance
Revenues
 
(Dollars in millions)
Global Private Equity
$3,164.8
$(94.7)
$3,070.1
Global Credit
918.5
(25.5)
893.0
Carlyle AlpInvest
1,718.0
—
1,718.0
Total
$5,801.3
$(120.2)
$5,681.1
Plus:  Accrued performance allocations from NGP Carry Funds(2)
377.1
Less:  Accrued performance allocation-related compensation
(3,959.7)
Plus:  Receivable for giveback obligations from current and former employees
51.7
Less:  Deferred taxes on certain foreign accrued performance allocations
(13.8)
Less/Plus:  Net accrued performance allocations/giveback obligations attributable to non-controlling
interests in consolidated entities
(25.4)
Plus:  Net accrued performance allocations attributable to Consolidated Funds, eliminated in
consolidation
22.1
Net accrued performance revenues before timing differences
2,133.1
Less/Plus:  Timing differences between the period when accrued performance allocations/giveback
obligations are realized and the period they are collected/distributed
2.7
Net accrued performance revenues attributable to The Carlyle Group Inc.
$2,135.8
(1)Accrued incentive fees are excluded from net accrued performance revenues.
(2)Accrued performance allocations from NGP funds are presented as principal equity method investments in the
condensed consolidated balance sheets.
The net accrued performance revenues attributable to The Carlyle Group Inc., excluding realized amounts,
related to our carry funds and our other vehicles as of September 30, 2026, as well as the carry fund appreciation
(depreciation), is set forth below by segment (Dollars in millions):
Carry Fund Appreciation/(Depreciation)(1)
Net Accrued
Performance
Revenues
Quarter-to-Date
Year-to-Date
Last Twelve
Months
Q3 2025
Q3 2026
Q3 2025
Q3 2026
Q3 2025
Q3 2026
Overall Carry Fund Appreciation/
(Depreciation)
2%
1%
5%
5%
7%
7%
Global Private Equity:
1%
1%
4%
4%
5%
7%
$1,190.0
Corporate Private Equity
—%
—%
3%
—%
4%
4%
733.8
Real Estate
1%
—%
3%
1%
4%
2%
11.2
Infrastructure & Natural Resources
5%
8%
12%
25%
12%
32%
445.0
Global Credit Carry Funds
4%
4%
12%
12%
16%
15%
326.6
Carlyle AlpInvest Carry Funds
2%
1%
5%
4%
8%
4%
619.2
Net Accrued Performance Revenues
$2,135.8
(1)Appreciation/(Depreciation) represents unrealized gain/(loss) for the period on a total return basis before fees and
expenses. The percentage of return is calculated as: ending remaining investment fair market value plus net investment
outflow (sales proceeds minus net purchases) minus beginning remaining investment fair market value divided by
beginning remaining investment fair market value. Amounts are fund only, and do not include coinvestments.
Realized Principal Investment Income. Another source of liquidity we may use to meet our capital needs is the
realized principal investment income generated by our equity method investments and other principal investments.
Certain of the investments attributable to The Carlyle Group Inc. (excluding certain general partner interests, certain
strategic investments, and investments in certain CLOs) may be sold at our discretion as a source of liquidity.
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Investments as of September 30, 2026 consist of the following:
Investments in
Carlyle Funds
Investments
in NGP(1)
Total
(Dollars in millions)
Investments, excluding performance allocations
$2,958.5
$640.9
$3,599.4
Less: Amounts attributable to non-controlling interests in consolidated
entities
(428.8)
—
(428.8)
Plus: Investments in Consolidated Funds, eliminated in consolidation
1,142.8
—
1,142.8
Less: Strategic equity method investments in NGP Management
—
(220.6)
(220.6)
Less: Investment in NGP general partners - accrued performance
allocations
—
(377.1)
(377.1)
Total investments attributable to The Carlyle Group Inc.
$3,672.5
$43.2
$3,715.7
(1)Represents our total investment in NGP. See Note 4, Investments, to our condensed consolidated financial statements.
Our investments as of September 30, 2026 can be further attributed as follows (Dollars in millions):
Investments in Carlyle Funds, excluding CLOs:
Global Private Equity(1)
$1,425.5
Global Credit(2)
1,263.3
Carlyle AlpInvest
422.9
Total investments in Carlyle Funds, excluding CLOs
3,111.7
Investments in CLOs
441.6
Other investments
162.4
Total investments attributable to The Carlyle Group Inc.
3,715.7
CLO borrowings collateralized by investments attributable to The Carlyle Group Inc.
(367.7)
Total investments attributable to The Carlyle Group Inc., net of CLO borrowings
$3,348.0
(1)Excludes our strategic equity method investment in NGP Management and investments in NGP general partners -
accrued performance allocations. This balance also includes amounts bridged by us on behalf of investment funds for
which we have entered into warehouse agreements. Under such warehouse agreements, we may elect to transfer
investments for a price that differs from fair value.
(2)Includes the Company’s indirect investment in Fortitude through Carlyle FRL, a Carlyle-affiliated investment fund, as
discussed in Note 4, Investments, to the condensed consolidated financial statements. This investment had a carrying
value of $743.0 million as of September 30, 2026.
Our Liquidity Needs
We generally use our working capital and cash flows to invest in growth initiatives, service our debt, fund the
working capital needs of our business and investment funds, and return capital to our common shareholders in the
form of dividends or stock repurchases.
In the future, we expect that our primary liquidity needs will be to: 
•provide capital to facilitate the growth of our existing business lines;
•provide capital to facilitate our expansion into new, complementary business lines, including acquisitions;
•pay operating expenses, including compensation and compliance costs and other obligations as they
arise;
•fund costs of litigation and contingencies, including related legal costs;
•fund the capital investments in our funds;
•fund capital expenditures;
•repay borrowings and related interest costs and expenses;
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•pay earn-outs and contingent cash consideration associated with our acquisitions and strategic
investments;
•pay income taxes, including corporate income taxes;
•pay dividends to our common shareholders in accordance with our dividend policy;
•repurchase our common stock and pay any associated taxes; and
•settle tax withholding obligations in connection with net share settlements of equity-based awards.
Common Shareholder Dividends. Under our dividend policy for our common stock, our intention is to pay
dividends to holders of our common stock in an amount of $0.35 per common share on a quarterly basis ($1.40
annually). For U.S. federal income tax purposes, any dividends we pay generally will be treated as qualified
dividend income (generally taxable to U.S. individual shareholders at capital gain rates) paid by a domestic
corporation to the extent paid out of our current or accumulated earnings and profits, as determined for U.S. federal
income tax purposes, with any excess dividends treated as return of capital to the extent of the shareholder’s basis.
The declaration and payment of dividends to holders of our common stock will be at the sole discretion of our Board
of Directors and in compliance with applicable law, and our dividend policy may be changed at any time.
To date, with respect to dividend year 2026, the Board of Directors has declared a dividend to common
shareholders totaling $374.1 million, or $1.05 per share, including the third quarter 2026 dividend declared in
October 2026. With respect to the full dividend year 2025, the Board of Directors declared cumulative dividends to
common shareholders totaling $505.1 million, or $1.40 per share. For further information, see Note 12, Equity, to the
condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
Fund Commitments. Generally, up to 3% of all capital commitments to our investment funds are made by
Carlyle, our senior Carlyle professionals, advisors, and other professionals. Carlyle will generally commit up to 1%
of capital commitments related to our carry funds, although we may elect to invest additional amounts in funds
focused on new investment areas or other growth opportunities. We may, from time to time, exercise our right to
purchase additional interests in our investment funds that become available in the ordinary course of their
operations. We expect our senior Carlyle professionals and employees to continue to make significant capital
contributions to our funds based on their existing commitments, and to make capital commitments to future funds
consistent with the level of their historical commitments. We also intend to make investments in our evergreen funds
and our CLO vehicles. Our investments in our European CLO vehicles will comply with the risk retention rules as
discussed in “Risk Retention Rules” later in this section.
A substantial majority of the remaining commitments to our investment funds are expected to be funded by
senior Carlyle professionals, operating executives, and other professionals through our internal co-investment
program. Of the $4.3 billion of unfunded commitments as of September 30, 2026, approximately $3.2 billion is
subscribed individually by senior Carlyle professionals, operating executives, and other professionals, with the
balance funded directly by the Company. Approximately 74% of the $4.3 billion of unfunded commitments relate to
investment funds in our Global Private Equity segment.
Under the Carlyle Global Capital Markets platform, certain of our subsidiaries may act as an underwriter,
syndicator or placement agent for security offerings and loan originations. We earn fees in connection with these
activities and bear the risk of the sale of such securities and placement of such loans, which may be longer dated.
As of September 30, 2026, there were no material commitments related to the origination and syndication of loans
and securities under the Carlyle Global Capital Markets platform.
Repurchase Program. During the nine months ended September 30, 2026, we paid an aggregate of $490.0
million to repurchase and retire approximately 10.6 million shares of common stock. In addition, during the nine
months ended September 30, 2026, we paid an aggregate of $229.3 million and retired 4.4 million shares of
common stock to settle tax withholding obligations in connection with net share settlements of equity-based awards,
for a total of $719.3 million for approximately 15.0 million shares repurchased or withheld this year. As of
September 30, 2026, $1.4 billion of repurchase capacity remained under the share repurchase program, which
reflects the cost of common shares repurchased as well as tax withholding payments made by the Company related
to the net share settlement of equity-based awards. For further information on our repurchase program, see Note
12, Equity, to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
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Cash Flows
The following tables summarize our condensed consolidated statements of cash flows by activities
attributable to the Company and the Consolidated Funds.
 
Nine Months Ended September 30,
 
2026
2025
 
(Dollars in millions)
Statements of Cash Flows Data
Net cash provided by the Company’s operating activities
$863.3
$972.1
Net cash used in the Consolidated Funds’ operating activities, after eliminations
(1,745.1)
(3,052.5)
Net cash used in operating activities
(881.8)
(2,080.4)
Net cash used in investing activities
(87.5)
(57.4)
Net cash provided by (used in) the Company’s financing activities
(1,156.5)
6.1
Net cash provided by the Consolidated Funds' financing activities, after
eliminations
1,760.0
3,009.3
Net cash provided by financing activities
603.5
3,015.4
Effect of foreign exchange rate changes
(23.5)
82.3
Net change in cash, cash equivalents and restricted cash
$(389.3)
$959.9
The condensed consolidated statements of cash flows include the cash flows of our Consolidated Funds,
which include certain consolidated investment funds and the CLOs. Generally, the consolidation of the Consolidated
Funds has a gross-up effect on our assets, liabilities and cash flows activities. The primary cash flow activities of the
Consolidated Funds generally include (i) purchases of investments, (ii) proceeds from sales of investments, and (iii)
net borrowings of the Consolidated Funds. Contributions from and distributions to the non-controlling interest
holders on the condensed consolidated statements of cash flows primarily relate to non-controlling interest holders
in the Consolidated Funds. The impact that the Consolidated Funds had on cash flows attributable to the Company
for the periods presented were limited to our interest in these funds, which is included in the discussion below. Thus
we excluded the Consolidated Funds from the discussion below.
Net cash provided by the Company's operating activities. Net cash provided by the Company's operating
activities primarily consists of: (i) net cash generated from operating activities, which include the receipt of
management fees, realized performance allocations and incentive fees after payments for compensation, and
general, administrative and other expenses, and (ii) our net investment-related operating activity, which include
purchases of and proceeds from our investments.
For the nine months ended September 30, 2026 and 2025, we received management fees and realized
performance allocations, principal investment income, and incentive fees of $3.0 billion and $2.9 billion,
respectively, partially offset by payments for compensation, interest, and general, administrative and other expenses
of $2.1 billion and $2.0 billion, respectively, which included payment of 2025 and 2024 year-end bonuses paid in
January 2026 and 2025, respectively.
For the nine months ended September 30, 2026 and 2025, net cash used in our investment-related operating
activities was $(18.0) million and $(65.0) million, respectively, which primarily represented cash used to fund
commitments and investments in our portfolio, partially offset by proceeds from distributions on our investments. As
of September 30, 2026 and September 30, 2025, our investments totaled $3.3 billion and $3.2 billion, respectively.
We expect our commitments to and investments in our funds will continue to increase with the growth of our assets
under management and our investments in new products.
Net cash used in investing activities. For the nine months ended September 30, 2026 and 2025, cash used in
investing activities primarily reflected capital expenditures related to information technology, leasehold
improvements, and other fixed assets of $87.5 million and $57.4 million, respectively.
Net cash provided by (used in) the Company's financing activities. For the nine months ended September 30,
2026 and 2025, we paid dividends to our common shareholders of $376.6 million and $379.2 million, respectively.
For the nine months ended September 30, 2026 and 2025, we paid $719.3 million and $482.8 million, respectively,
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to repurchase and retire 15.0 million and 8.9 million shares, respectively, which included shares retired in
connection with the net share settlement of equity-based awards.
Our Balance Sheet
Total assets were $28.2 billion at September 30, 2026, a decrease of $0.9 billion compared to December 31,
2025. The decrease in total assets was primarily attributable to a decrease in Investments, including Performance
allocations of $1.8 billion and a decrease in Cash and cash equivalents of $0.4 billion, partially offset by an increase
in Investments of Consolidated Funds of $1.2 billion. The decrease in Investments, including Performance
allocations was primarily driven by declines in CP VII’s accrued performance allocations, largely attributable to
declines in market prices of certain public investments and the impact of preferred return, partially offset by
appreciation in our international energy funds and aviation funds. Refer to “—Cash Flows” in Part I, Item 2 of this
Quarterly Report on Form 10-Q for details on the decrease in Cash and cash equivalents.
Total liabilities were $21.6 billion at September 30, 2026, a decrease of $0.5 billion from December 31, 2025.
The decrease in liabilities was primarily attributable to a decrease in Accrued compensation and benefits of $1.3
billion and a decrease in Other liabilities of Consolidated Funds of $0.5 billion, partially offset by an increase in
Loans payable of Consolidated Funds of $1.3 billion. The decrease in Accrued compensation and benefits was
primarily attributable to a decrease in Accrued performance allocations, on which Accrued performance allocations
and incentive fee related compensation is based, as well as the payment of previously realized performance
allocations and incentive fee related compensation and year-end bonuses.
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 meet our liquidity requirements and similarly the
liabilities of the Consolidated Funds are non-recourse to us. The number of funds that we consolidate fluctuates
period to period. In general, the number of funds we are required to consolidate has been increasing as a result of
our investment in new products and our indirect interest in funds through our indirect investment in Fortitude.
Our balance sheet without the effect of the Consolidated Funds can be seen in Note 16, Supplemental
Financial Information, to the condensed consolidated financial statements included in this Quarterly Report on Form
10-Q. At September 30, 2026, our total assets without the effect of the Consolidated Funds were $14.6 billion,
including cash and cash equivalents of $1.6 billion and Investments, including accrued performance allocations, of
$10.6 billion.
Unconsolidated Entities
Certain of our funds have entered into lines of credit secured by their investors’ unpaid capital commitments or
by a pledge of the equity of the underlying investment. These lines of credit are used primarily to reduce the overall
number of capital calls to investors or for working capital needs. In certain instances, however, they may be used for
other investment related activities, including serving as bridge financing for investments. The degree of leverage
employed varies among our funds.
Off-balance Sheet Arrangements
In the normal course of business, we enter into various off-balance sheet arrangements including sponsoring
and owning limited or general partner interests in consolidated and non-consolidated funds, entering into derivative
transactions, and entering into guarantee arrangements. We also have ongoing capital commitment arrangements
with certain of our consolidated and non-consolidated funds.
For further information regarding our off-balance sheet arrangements, see Note 2, Summary of Significant
Accounting Policies, and Note 7, Commitments and Contingencies, to the condensed consolidated financial
statements included in this Quarterly Report on Form 10-Q. Other than what we have disclosed in this Quarterly
Report on Form 10-Q, we do not have any other off-balance sheet arrangements that would require us to fund
losses or guarantee target returns to investors in any of our other investment funds.
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Contractual Obligations
The following table sets forth information relating to our contractual obligations as of September 30, 2026 on a
consolidated basis and on a basis excluding the obligations of the Consolidated Funds:
Oct. 1, 2026 to
Dec. 31, 2026
2027-2028
2029-2030
Thereafter
Total
 
(Dollars in millions)
Debt obligations(1)
$17.1
$104.7
$486.4
$2,437.2
$3,045.4
Interest payable(2)
38.7
301.0
275.1
1,673.0
2,287.8
Other consideration(3)
15.9
—
—
—
15.9
Operating lease obligations(4)
19.7
185.0
183.8
378.6
767.1
Capital commitments to Carlyle funds(5)
4,330.9
—
—
—
4,330.9
Tax receivable agreement payments(6)
—
8.8
13.5
41.4
63.7
Loans payable of Consolidated Funds(7)
170.3
1,692.7
1,440.6
14,251.3
17,554.9
Unfunded commitments of the CLOs(8)
35.8
—
—
—
35.8
Consolidated contractual obligations
4,628.4
2,292.2
2,399.4
18,781.5
28,101.5
Loans payable of Consolidated Funds(7)
(170.3)
(1,692.7)
(1,440.6)
(14,251.3)
(17,554.9)
Capital commitments to Carlyle funds(5)
(3,209.3)
—
—
—
(3,209.3)
Unfunded commitments of the CLOs(8)
(35.8)
—
—
—
(35.8)
Carlyle Operating Entities contractual obligations
$1,213.0
$599.5
$958.8
$4,530.2
$7,301.5
(1)The table above assumes that no prepayments are made on the senior and subordinated notes and that the outstanding balances, if any,
on the senior credit facility and Global Credit Revolving Credit Facility are repaid on the maturity dates of credit facilities. The CLO term
loans are included in the table above based on the earlier of the stated maturity date or the date the CLO is expected to be dissolved.
See Note 5, Borrowings, to the condensed consolidated financial statements for the various maturity dates of our borrowings.
(2)Interest payments assume that no prepayments are made and loans are held until maturity with the exception of the CLO term loans,
which are based on the earlier of the stated maturity date or the date the CLO is expected to be dissolved.
(3)These obligations represent our estimate of contingent amounts to be paid in connection with our acquisition of Abingworth. The payment
obligations are unsecured obligations of the Company or a subsidiary thereof, subordinated in right of payment to indebtedness of the
Company and its subsidiaries, and do not bear interest.
(4)We lease office space in various countries around the world, including our largest offices in Washington, D.C., New York City, London,
Amsterdam, and Hong Kong, which have non-cancelable lease agreements expiring in various years through 2037. The amounts in this
table represent the minimum lease payments required over the term of the lease.
(5)These obligations generally represent commitments by us to fund a portion of the purchase price paid for each investment made by our
funds. These amounts are generally due on demand and are therefore presented in the less than one year category. A substantial
majority of these investments is expected to be funded by senior Carlyle professionals and other professionals through our internal co-
investment program. Additionally, these obligations include accrued giveback that has been realized but not yet paid to the respective
funds, a portion of which is payable by current and former senior Carlyle professionals. See Fund Commitments section above for further
details.
(6)In connection with our initial public offering, we entered into a tax receivable agreement with the limited partners of the Carlyle Holdings
partnerships whereby we agreed to pay such limited partners 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. From and after the consummation of the Conversion, former holders of Carlyle Holdings partnership units
do not have any rights to payments under the tax receivable agreement except for payment obligations pre-existing at the time of the
Conversion with respect to exchanges that occurred prior to the Conversion. These obligations are more than offset by the future cash tax
savings that we are expected to realize.
(7)These obligations primarily represent amounts due to holders of debt securities issued by the consolidated CLO vehicles. These
obligations include interest to be paid on debt securities issued by the consolidated CLO vehicles. Interest payments assume that no
prepayments are made and loans are held until maturity. For debt securities with rights only to the residual value of the CLO and no
stated interest, no interest payments were included in this calculation. Interest payments on variable-rate debt securities are based on
interest rates in effect as of September 30, 2026, at spreads to market rates pursuant to the debt agreements, and range from 1.65% to
11.32%. Interest payments on fixed-rate debt securities are based on the contractual interest rates specified in the respective debt
agreements.
(8)These obligations represent commitments of the CLOs to fund certain investments. These amounts are generally due on demand and are
therefore presented in the less than one year category.
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Contingent Cash Payments For Business Acquisitions and Strategic Investments
We have certain contingent cash obligations associated with our acquisition of Abingworth, which are
accounted for as compensation expense and accrued over the service period. The obligations relate to future
incentive payments of up to $130.0 million, which is the maximum amount that could be paid as of September 30,
2026, that are payable upon the achievement of certain performance targets during 2026 through 2028.  If earned,
payments are made in the quarter following the applicable performance year. Through September 30, 2026, we paid
$19.0 million related to these contingent obligations.
Risk Retention Rules
We will continue to comply with the risk retention rules governing CLOs issued in Europe for which we are a
sponsor, which require a combination of capital from our balance sheet, commitments from senior Carlyle
professionals and/or third-party financing.
Guarantees
See Note 7, Commitments and Contingencies, to the condensed consolidated financial statements included in
this Quarterly Report on Form 10-Q for information related to all of our material guarantees.
Indemnifications
In many of our service contracts, we agree to indemnify the third-party service provider under certain
circumstances. The terms of the indemnities vary from contract to contract, and the amount of indemnification
liability, if any, cannot be determined and has not been included in the table above or recorded in our condensed
consolidated financial statements as of September 30, 2026. See Note 7, Commitments and Contingencies, to the
condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for information related
to indemnifications.
Contingent Obligations (Giveback)
Carried interest is ultimately realized when: (1) an underlying investment is profitably disposed of, (2) certain
costs borne by the limited partner investors have been reimbursed, (3) the fund’s cumulative returns are in excess
of the preferred return, and (4) we have decided to collect carry rather than return additional capital to limited
partner investors. Realized carried interest may be required to be returned by us 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. 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. See Note 7,
Commitments and Contingencies, to the condensed consolidated financial statements included in this Quarterly
Report on Form 10-Q for additional information related to our contingent obligations (giveback).
Other Contingencies
In the ordinary course of business, we are a party to litigation, investigations, inquiries, employment-related
matters, disputes and other potential claims. We discuss certain of these matters in Note 7, Commitments and
Contingencies, to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
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Carlyle Common Stock
A rollforward of our common stock outstanding is as follows:
Nine Months Ended
September 30,
2026
Common stock outstanding, beginning of period
357,374,023
Shares issued
6,876,017
Shares repurchased/retired
(10,554,697)
Common stock outstanding, end of period
353,695,343
Shares of The Carlyle Group Inc. common stock issued during the nine months ended September 30, 2026
relate to the vesting of the Company’s restricted stock units and shares issued and delivered in connection with our
equity method investment in NGP. Shares of The Carlyle Group Inc. common stock repurchased during the nine
months ended September 30, 2026 relate to shares repurchased and subsequently retired as part of our share
repurchase program. Shares of The Carlyle Group Inc. common stock issued and repurchased/retired during the
nine months ended September 30, 2026 exclude shares retired as part of the net share settlement of equity-based
awards.
The total shares as of September 30, 2026 as shown above exclude approximately 0.2 million net common
shares, representing the vesting of restricted stock units subsequent to September 30, 2026 that will participate in
the common shareholder dividend that will be paid on November 23, 2026.
Critical Accounting Policies and Estimates
The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires
our management to make estimates and judgments that affect the reported amounts of assets and liabilities,
revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates and
judgments are based on historical information, information currently available to us and various other assumptions
management believes to be reasonable under the circumstances. Actual results could vary from those estimates
and we may change our estimates and assumptions in future evaluations. Changes in these estimates and
assumptions may have a material effect on our results of operations and financial condition.
There have been no material changes in the critical accounting estimates since those discussed in our Annual
Report on Form 10-K for the year ended December 31, 2025.
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Our primary exposure to market risk is related to our role as general partner or investment advisor to our
investment funds and the sensitivities to movements in the fair value of their investments, including the effect on
management fees, incentive fees and investment income, including performance allocations. Although our
investment funds share many common themes, each of our asset management asset classes runs its own
investment and risk management processes, subject to our overall risk tolerance and philosophy. The investment
process of our investment funds involves a comprehensive due diligence approach, including review of reputation of
shareholders and management, company size and sensitivity of cash flow generation, business sector and
competitive risks, portfolio fit, exit risks and other key factors highlighted by the deal team. Key investment decisions
are generally subject to approval by both the fund-level managing directors, as well as the investment committee,
which generally comprises one or more of the three founding partners as well as senior investment professionals.
Once an investment in a portfolio company has been made, our fund teams closely monitor the performance of the
portfolio company, generally through frequent contact with management and the receipt of financial and
management reports.
There was no material change in our market risks during the nine months ended September 30, 2026. For
additional information, refer to our Annual Report on Form 10-K for the year ended December 31, 2025.
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Item 4.Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to
ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information
is accumulated and communicated to our management, including our principal executive officer and principal
financial officer, as appropriate, to allow timely decisions regarding required disclosures. In designing disclosure
controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-
benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and
procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be
no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any
controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute,
assurance of achieving the desired control objectives.
Our management, with the participation of our principal executive officer and principal financial officer, has
evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of the end of
the period covered by this report. Based upon that evaluation and subject to the foregoing, our principal executive
officer and principal financial officer concluded that, as of the end of the period covered by this report, the design
and operation of our disclosure controls and procedures were effective to accomplish their objectives at the
reasonable assurance level.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and
15d-15(f) under the Exchange Act) during the fiscal quarter ended September 30, 2026 that have materially
affected, or that are reasonably likely to materially affect, our internal control over financial reporting.
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PART II - OTHER INFORMATION
 
Item 1. Legal Proceedings
The information required with respect to this item can be found under “Legal Matters” in Note 7, Commitments
and Contingencies, of the notes to the Company’s condensed consolidated financial statements contained in this
Quarterly Report on Form 10-Q, and such information is incorporated by reference into this Item 1.
Item 1A.  Risk Factors
For a discussion of our potential risks and uncertainties, see the information under Item 1A. “Risk Factors” in
our Annual Report on Form 10-K for the year ended December 31, 2025.
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities
The following table sets forth repurchases of our common stock during the three months ended September 30,
2026 for the periods indicated. During the three months ended September 30, 2026, 2.6 million shares were
repurchased. In addition, 1.9 million shares were retired in connection with the net share settlement of equity-based
awards, which are not included in the table below.
Period
(a) Total number
of shares
purchased
(b) Average
price paid
per share
(c) Total number
of shares
purchased as part
of publicly
announced plans
or programs
(d) Maximum number (or
approximate dollar
value) of shares that
may yet be purchased
under the plans or
programs (3)
(Dollars in millions, except share and per share data)
July 1, 2026 to July 31, 2026 (1)
—
$—
—
$1,635.0
August 1, 2026 to August 31, 2026 (1)(2)
1,423,824
$48.94
1,423,824
$1,565.3
September 1, 2026 to September 30,
2026 (1)(2)
1,213,631
$45.58
1,213,631
$1,510.0
Total
2,637,455
2,637,455
(1)The Board of Directors reset the total repurchase authorization of our previously approved share repurchase program to
$2.0 billion in shares of our common stock, effective as of February 26, 2026. Under the share repurchase program,
shares of our 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 the repurchase of common stock, the 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
repurchase program may be suspended or discontinued at any time and does not have a specified expiration date.
(2)Reflects shares purchased in open market and brokered transactions, which were subsequently retired.
(3)The remaining repurchase authorization was $1,420.5 million as of September 30, 2026 when factoring in the net share
settlement of equity-based awards.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
None.
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Item 6. Exhibits
The following is a list of all exhibits filed or furnished as part of this report: 
Exhibit No.
Description
3.1
3.2
10.1*
22*
31.1*
31.2*
32.1**
32.2**
101.INS
Inline XBRL Instance Document - the Instance Document does not appear in the Interactive Data File
because its XBRL tags are embedded within the Inline XBRL document.
101.SCH
Inline XBRL Taxonomy Extension Schema Document.
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB
Inline XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104
The cover page from The Carlyle Group Inc.’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2026, formatted in Inline XBRL (included within the Exhibit 101 attachments).
*
Filed herewith.
**
Furnished herewith.
The agreements and other documents filed as exhibits to this report are not intended to provide factual
information or other disclosure other than with respect to the terms of the agreements or other documents
themselves, and you should not rely on them for that purpose. In particular, any representations and warranties
made by us in these agreements or other documents were made solely within the specific context of the relevant
agreement or document and may not describe the actual state of affairs as of the date they were made or at any
other time.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly authorized.
 
The Carlyle Group Inc.
Date: November 6, 2026
 
By:
 
/s/ Justin V. Plouffe
 
Name:
 
Justin V. Plouffe
 
Title:
 
Chief Financial Officer
 
 
(Principal Financial Officer and
Authorized Officer)

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