v3.26.3
Segment Reporting
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting 14. Segment Reporting
Carlyle conducts its operations through three reportable segments:
Global Private Equity – The Global Private Equity segment advises buyout, growth, real estate, and
infrastructure & natural resources funds. The segment also includes the NGP Carry Funds advised by NGP.
Global Credit – The Global Credit segment advises funds and vehicles that pursue investment strategies
including insurance solutions, liquid credit, opportunistic credit, direct lending, asset-backed finance, aviation
finance, infrastructure credit, cross-platform credit products, and global capital markets.
Carlyle AlpInvest – The Carlyle AlpInvest segment advises global private equity programs that pursue
secondary purchases and financing of existing portfolios, managed co-investment programs, and primary
fund investments.
The Company’s reportable business segments are differentiated by their various investment focuses and
strategies. Overhead costs are generally allocated based on cash-based compensation and benefits expense for
each segment. The Company’s earnings from its investment in NGP are presented in the respective operating
captions within the Global Private Equity segment.
Distributable Earnings. Distributable Earnings, or “DE,” is a key performance benchmark used in the
Company’s industry and is evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief
Executive Officer, in making resource deployment and compensation decisions and in assessing performance of the
Company’s three reportable segments. The CODM also uses DE in budgeting, forecasting, and the overall
management of the Company’s segments. The CODM believes that reporting DE is helpful to understanding the
Company’s business and that investors should review the same supplemental financial measure that the CODM
uses to analyze the Company’s segment performance. DE is intended to show the amount of net realized earnings
without the effects of the consolidation of the Consolidated Funds. DE is derived from the Company’s segment
reported results and is used to assess performance.
Distributable Earnings differs from income (loss) before provision for income taxes computed in accordance
with U.S. GAAP in that it includes certain tax expenses associated with certain foreign performance revenues
(composed of performance allocations and incentive fees), and does not include unrealized performance allocations
and related compensation expense, unrealized principal investment income, equity-based compensation expense,
net income (loss) attributable to non-Carlyle interests in consolidated entities, or charges (credits) related to Carlyle
corporate actions and non-recurring items that affect period-to-period comparability and are not reflective of the
Company’s operational performance. Charges (credits) related to Carlyle corporate actions and non-recurring items
include: charges associated with the Conversion, charges (credits) associated with acquisitions, dispositions or
strategic investments, changes in the tax receivable agreement liability, amortization and any impairment charges
associated with acquired intangible assets, transaction costs associated with acquisitions and dispositions, charges
associated with earn-outs and contingent consideration including gains and losses associated with the estimated
fair value of contingent considerations issued in conjunction with acquisitions or strategic investments, impairment
charges associated with lease right-of-use assets, gains and losses from the retirement of debt, charges associated
with contract terminations and employee severance, and non-recurring items that affect period-to-period
comparability and are not reflective of the Company’s operating performance. Management believes the inclusion or
exclusion of these items provides investors with a meaningful indication of the Company’s core operating
performance.
Fee Related Earnings. Fee Related Earnings, or “FRE,” is a component of DE and is used to assess the ability
of the business to cover base compensation and operating expenses from total fee revenues. FRE adjusts DE to
exclude net realized performance revenues, realized principal investment income, and net interest (interest income
less interest expense). Fee Related Earnings includes fee related performance revenues and related compensation
expense. Fee related performance revenues represent the realized portion of performance revenues that are
measured and received on a recurring basis, are not dependent on realization events, and which have no risk of
giveback.
Asset information by segment is not disclosed because this information is not used by the CODM to make
resource deployment decisions or evaluate the performance of the Company’s segments.
The following tables present the financial data for the Company’s three reportable segments for the three 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
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.
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
 
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.
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:
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
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:
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.
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.