Carlyle Group Inc.
For the period ended Mar 31, 2025. Filed May 9, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 9, 2025
CG$39.70-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001527166-24-000079
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001527166-25-000071
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 1527 previous paragraphs and 1443 current paragraphs.
758 unchanged; 343 reworded; 321 added; 414 removed; 12 previous and 21 current paragraphs rearranged.
Tables are not compared: 48 previous and 48 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (321)
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Global Private Equity segment had$164 billion in AUM and$99 billion in Fee-earning AUM.
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insurance solutions, liquid credit, opportunistic credit, direct lending, asset-backed finance, aviation finance, infrastructure
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$199 billion in AUM and$161 billion in Fee-earning AUM.
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•Carlyle AlpInvest — Our Carlyle AlpInvest segment advises global private equity programs that pursue secondary
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purchases and financing of existing portfolios, managed co-investment programs, and primary fund investments. As of
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March 31, 2025, our Carlyle AlpInvest segment had$89 billion in AUM and$54 billion in Fee-earning AUM.
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investment activity.
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In the first quarter of 2025 with the change in U.S. presidential administration, significant uncertainty was introduced to
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the global economic outlook through the rapid imposition of steep tariffs on major U.S. trading partners. This policy regime
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change culminated in April 2,2025 when the U.S. enacted the most sweeping tariff hikes in nearly a century. Although
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temporary reductions and numerous exemptions have since been announced—potentially in response to pronounced volatility
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in both bond and equity markets—these interim measures add to the uncertainty and increase economic drag as management
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teams are forced to both “wait and see” and spend significant time planning for a range of possible scenarios. Overall, this
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dramatic policy shift has the potential to disrupt global supply chains, distort trade flows, create shortages for a wide range of
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both finished goods and intermediate parts, and intensify cost uncertainty, forcing companies to divert significant managerial
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and financial resources toward contingency planning. These impacts pose significant risks to corporate profit margins and
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broader economic growth across the globe. Our portfolio companies’ operating performance could face nontrivial impacts to
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the extent that they are exposed to and dependent upon imports of key components and supplies or purchases of their products
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by certain end markets. A widespread global slowdown could also impact a company’s financial performance regardless of
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overall exposure to trade flows. However, current volatility could produce opportunities for certain asset classes. A retreat in
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traditional lending channels may result in compelling opportunities across our Global Credit segment. Retail investors, deterred
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by public market vicissitudes, could seek out alternative investment channels through our private wealth products. Heightened
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demand for liquidity at the same time that exit activity slows in the face of volatile markets could present our secondaries
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business the opportunity tobuy assets at discounts larger than would have been otherwise anticipated. And greater demand for
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domestic U.S. investment to onshore production where possible to avoid steep tariffs could generate attractive projects for our
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infrastructure funds.
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The U.S. imports roughly $3.3 trillion in goods or more than 11% of GDP each year. If the tariff schedule announced on
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April 2 is fully implemented, this could represent the equivalent of a tax hit to the economy as large as 2% of GDP. Widespread
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contingency planning has diverted managerial attention and imposed productivity losses. The preemptive acceleration of
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intermediate goods imports during the first quarter of 2025 has also distorted GDP accounting and resulted in a negative
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headline quarter-over-quarter change, as imports were subtracted from GDP without contributing to an offsetting rise in private
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inventories (only finished goods are counted in the national accounts). As tariff-related price increases accumulate, businesses
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face rising uncertainty over how much of the cost they can pass through to consumers without driving material declines in sales
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volumes, creating the potential for steep nonlinearities in economic outcomes. Asymmetrical trade dependencies—Chinese
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imports represent a higher value add share of U.S. goods than the other way around—underscore the cost risks facing both the
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U.S. industrial sector and the U.S. consumer. In many cases, purchasing managers are choosing to delay new imports
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altogether, opting instead to sell down existing inventory while awaiting clearer policy signals—behavior that, if widespread,
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can create abrupt and concentrated contractions in activity that traditional macro models struggle to anticipate. Although a
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continued surge in artificial intelligence-related capital expenditures, growing at roughly 45% annually, offers some
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counterbalance to this drag on economic output, the pervasive uncertainty remains a key risk to growth and corporate operating
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our U.S. and internationally focused real estate funds, and our infrastructure and natural resources funds. The segment
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$169 billion in AUM and$104 billion in Fee-earning AUM.
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and structured credit, direct lending, opportunistic credit, distressed credit, aircraft financing and servicing, infrastructure
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billion in AUM and$159 billion in Fee-earning AUM.
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•Global Investment Solutions — Our Global Investment Solutions segment advises global private equity programs and
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related co-investment and secondary activities. As of September 30, 2024, our Global Investment Solutions segment had
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$84 billion in AUM and$51 billion in Fee-earning AUM.
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commenced investment activity.
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In the third quarter of 2024, global growth remained much more stable than many had feared, as monetary policy in most
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developed market economies continued to ease. Labor market indicators in the United States softened as the Federal Reserve
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initiated its easing cycle, while the European Central Bank (ECB) has now cut its deposit facility rate year-to-date by a
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cumulative 75bps amidst uneven growth. India experienced slower economic activity and consumption growth, and China
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continued to face uneven underlying growth as it attempted to stabilize property markets amid broader economic
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transformation. Meanwhile, momentum in Japan slowed as the country navigated market volatility following the Bank of Japan
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raising rates to the highest level in 15 years. By contrast, Korea’s economy rebounded as the Bank of Korea initiated its easing
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cycle following a second-quarter contraction.
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In the U.S., official data suggest the economy grew at a 2.8% annualized rate in the third quarter of 2024 and U.S.
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corporate margins continued to widen. Underlying growth was notably strong, with real consumption contributing nearly 2.5
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percentage points to the headline number. Spending rose strongly across both goods and services, with certain durable goods
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such as autos notching their strongest growth since the pandemic. Profit growth also remains strong: unlike 2020-22, when
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profit growth was primarily a pricing power phenomenon, today it is mainly driven by productivity gains that have thus far
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been underreported in official statistics. Lower base rates help as well; the Federal Open Market Committee’s decision to
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reduce the policy rate by 50bps in September responded to incoming data implying softening price pressures and a balancing
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labor market. The unemployment rate temporarily rose to 4.3% in July — the highest level since 2021 — on increased labor
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supply, before settling back to 4.1% by the end of the quarter, where it began. The Fed’s preferred inflation gauge, the core
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Personal Consumption Expenditures Price Index, has held steady, finishing August 2.7% above year ago levels. The Fed now
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views the risks to achieving its dual mandate of maximum employment and stable prices as roughly in balance. Market
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participants are generally in alignment with the Federal Reserve’s September Summary of Economic Projections, but the recent
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strength of the hard data has increased the market’s assigned probability of a pause in cuts before year-end; futures quotes
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currently imply slightly less than two full additional rate cuts in the fourth quarter of 2024.
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In Japan, momentum slowed but growth remained positive, with estimates indicating the economy grew at a 1.7%
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annualized rate in the third quarter. This performance occurred against a backdrop of market volatility. The Bank of Japan
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raised short-term borrowing costs from the previous range of 0% to 0.1% to 0.25% in July, its highest level in 15 years, and
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released a plan for tapering its asset purchases, signaling a pivotal shift away from a decade-long stimulus program. These
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actions, paired with hawkish comments from policymakers and a disappointing string of economic data in the U.S., led to a
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sharp appreciation of the yen, disrupting long-standing carry trades whose funding leg rested on Japan’s low rates. The surge in
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the currency value triggered asell-off in Japanese equity markets. Liquidity pressures led to a sell-off far in excess of what
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could be explained by any change in fundamentals. On August 5th, the Nikkei 225 fell 12.4%, while the TOPIX fell 12.2%,
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their largest respective single day declines since 1987. This event underscored the relative illiquidity of certain listed markets
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and how public market moves can diverge from underlying fundamentals, a distinction that is much less pronounced in private
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our operations through three reportable segments: Global Private Equity, Global Credit, and Global Investment Solutions.
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our operations through three reportable segments: Global Private Equity, Global Credit, and Carlyle AlpInvest (formerly,
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•Global Private Equity — Our Global Private Equity segment advises our buyout, middle market and growth capital funds,
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•Global Private Equity — Our Global Private Equity segment advises our buyout, growth, real estate, infrastructure, and
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also includes the NGP Carry Funds advised by NGP. As of September 30, 2024, our Global Private Equity segment had
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natural resources funds. The segment also includes the NGP Carry Funds advised by NGP. As of March 31, 2025, our
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•Global Credit — Our Global Credit segment advises funds and vehicles that pursue investment strategies including loans
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•Global Credit — Our Global Credit segment advises funds and vehicles that pursue investment strategies including
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debt, insurance solutions and global capital markets. As of September 30, 2024, our Global Credit segment had$194
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credit, cross-platform credit products, and global capital markets. As of March 31, 2025, our Global Credit segment had
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management of$447 billion as of September 30, 2024 for each of our three global business segments (in billions):
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management of$453 billion as of March 31, 2025 for each of our three global business segments (in billions):
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Note: All amounts shown represent total assets under management as of September 30, 2024, and totals may not sum due to rounding. In
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Note: All amounts shown represent total assets under management as of March 31, 2025, and totals may not sum due to rounding. In addition,
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addition, certain carry funds included herein may not be included in fund performance if they have not made an initial capital call or
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certain carry funds included herein may not be included in fund performance if they have not made an initial capital call or commenced
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(5)Includes our business development companies (CSL / CARS) and our evergreen fund (CDLF).
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(5)Includes our business development companies (CGBD / CARS) and our evergreen fund (CDLF).
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three months ended September 30, 2024 as compared to thethree months ended September 30, 2023, primarily driven by
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million in transaction and portfolio advisory fees, net of rebate offsets, during the three months ended March 31, 2025, more
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quarter of 2022. Within our Global Private Equity segment in thethird quarter, our corporate private equity funds appreciated
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of the global equity markets as the quarter drew to a close. Within our Global Private Equity segment in thefirst quarter, our
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building exit pipeline. Our infrastructure and natural resources funds appreciated 2% in the quarter, reflecting stable commodity
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natural resources funds appreciated 3% in the quarter, reflecting stable commodity prices, and our real estate funds appreciated
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thaw. Our Global Credit carry funds (which represent approximately 11% of the total Global Credit remaining fair value as of
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1%. Our Global Credit carry funds (which represent approximately 11% of the total Global Credit remaining fair value as of
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September 30, 2024) appreciated 3% in thethird quarter, while carry funds in our Global Investment Solutions segment
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March 31, 2025) appreciated 4% in thefirst quarter, while carry funds in our Carlyle AlpInvest segment appreciated 1% in the
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In October, the Company’s Board of Directors declared a quarterly dividend of$0.35 per share to common stockholders
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In April 2025, our Board of Directors declared a quarterly dividend of$0.35 per share to common stockholders of record
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of record at the close of business on November 18, 2024, payable on November 25, 2024.
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at the close of business on May 19, 2025, payable on May 27, 2025.
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advised by NGP. These interests entitle us to an allocation of income equal to 55.0% of the management fee related revenues of
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to an allocation of income equal to 55.0% of the management fee related revenues earned by NGP Management. Subsequent to
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investments to be made by NGP funds. For further information regarding our strategic investments in NGP, refer to Note 4,
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Measures.” For further information regarding our strategic investments in NGP and the Restructuring, refer to Note 4,
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Transaction and portfolio advisory fees. Transaction and portfolio advisory fees generally include capital markets fees
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Transaction and portfolio advisory fees generally include capital markets fees generated by Carlyle Global Capital
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generated by Carlyle Global Capital Markets in connection with activities related to the underwriting, issuance and placement
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Markets in connection with activities related to the underwriting, issuance and placement of debt and equity securities, and loan
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of debt and equity securities, and loan syndication for our portfolio companies and third-party clients, which are generally not
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syndication for our portfolio companies and third-party clients, which are generally not subject to rebate offsets as described
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subject to rebate offsets as described below with respect to our most recent vintages (but are subject to the rebate offsets set
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below with respect to our most recent vintages (but are subject to the rebate offsets set forth below for older funds).
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forth below for older funds). Underwriting fees include gains, losses and fees arising from securities offerings in which we
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Underwriting fees include gains, losses, and fees arising from securities offerings in which we participate in the underwriter
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generated by investment activity within our funds, and therefore are impacted by our investment pace.
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generated by investment activity within our funds, and therefore are impacted by our investment pace or other capital
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difference between the time we start accruing performance allocations and realization. The timing of performance allocations
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difference between the time we start accruing performance allocations and realization. The timing of performance allocation
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realizations from our Global Investment Solutions, Carlyle Aviation, and Abingworth funds is typically later than in our other
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realizations from our Carlyle AlpInvest, Carlyle Aviation, and Abingworth funds is typically later than in our other carry funds
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carry funds based on the terms of such arrangements.
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based on the terms of such arrangements.
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investment fund is considered separately in evaluating carried interest and potential giveback obligations.
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investment fund is considered separately in evaluating carried interest and potential giveback obligations. See Note 8,
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aggregation of the accrued performance allocations and incentive fees net of (i) accrued giveback obligations, (ii) accrued
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aggregation of the accrued performance allocations net of (i) accrued giveback obligations, (ii) accrued performance allocations
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performance allocations and incentive fee related compensation, (iii) performance allocations and incentive fee related tax
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related compensation, (iii) performance allocations related tax obligations, and (iv) accrued performance allocations attributable
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obligations, and (iv) accrued performance allocations and incentive fees attributable to non-controlling interests. Net accrued
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to non-controlling interests. Net accrued performance revenues exclude any net accrued performance allocations and incentive
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collected in subsequent periods, as well as net accrued performance revenues which are presented as fee related performance
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fees that have been realized but will be collected in subsequent periods, as well as net accrued performance revenues which are
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revenues when realized in our non-GAAP financial measures. Realized performance allocation-related compensation associated
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presented as fee related performance revenues when realized in our non-GAAP financial measures. Realized performance
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with our updated compensation program that has not yet been paid is also excluded from our net accrued performance
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allocation-related compensation that has not yet been paid is also excluded from our net accrued performance allocations.
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$242.3 million,$160.8 million of which was related to various Legacy Energy Funds. Given that current and former senior
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$257.0 million,$175.6 million of which was related to various Legacy Energy Funds. Given that current and former senior
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the realized giveback obligation, only$72.3 million of the$242.3 million aggregate giveback obligation realized since
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the realized giveback obligation, only$87.1 million of the$257.0 million aggregate giveback obligation realized since
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our investments in Carlyle funds that are not consolidated, and our strategic investments in NGP as described below, as well as
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our investments in Carlyle funds that are not consolidated, and our strategic investments in NGP as described below. Realized
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any interest and other income. Realized principal investment income (loss) is recorded when we redeem all or a portion of our
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principal investment income (loss) is recorded when we redeem all or a portion of our investment or when we receive or are due
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investment or when we receive or are due cash income, such as dividends or distributions. A realized principal investment loss
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cash income, such as dividends or distributions. A realized principal investment loss is also recorded when an investment is
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is also recorded when an investment is deemed to be worthless. Unrealized principal investment income (loss) results from
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deemed to be permanently impaired or worthless. Unrealized principal investment income (loss) results from changes in the fair
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Prior to the Restructuring, our equity interests in NGP Management Company, L.L.C. (“NGP Management”) entitled us
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Restructuring, our equity interests in NGP Management entitle us to an allocation of income equity equal to 55.0% of the
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business, have representation on NGP’s board or serve as an investment advisor to any investment fund sponsored by NGP, nor
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consent rights on any NGP investment committee that selects investments to be made by NGP funds.
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performance allocations and incentive fees to our employees.
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consolidated financial statements in this Quarterly Report on Form 10-Q for more information.
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associated with lease right-of-use assets, gains and losses from the retirement of debt, charges associated with contract
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meaningful indication of our core operating performance. This measure supplements and should be considered in addition to
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AUM based on fair value and other” in the table below).
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Business” for further discussion on our investment activity and broader market trends.
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Accordingly, such amounts have no material impact on net income attributable to the Company.
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three months ended March 31, 2024 primarily comprised the 21% U.S. federal corporate income tax rate and disallowed
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The increase in portfolio advisory and transaction fees, net and other for thethree months ended March 31, 2025 as
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Affecting Our Business” for further discussion on our investment activity and broader market trends.
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million for thethree months ended March 31, 2025 as compared to thethree months ended March 31, 2024, primarily due to an
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for thethree months ended March 31, 2025 as compared to thethree months ended March 31, 2024, primarily due to an
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million for thethree months ended March 31, 2025 as compared to thethree months ended March 31, 2024, primarily due to an
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primary strategies in which fees are based on fair value.
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allocations, on which Accrued performance allocations and incentive fee related compensation is based.
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Quarterly Report on Form 10-Q.
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Form 10-K for the year ended December 31, 2024.
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performance revenues exclude any net accrued performance allocations and incentive fees that have been realized but will be
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at the time an investment is realized.
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investment advisor to any investment fund sponsored by NGP, nor do we direct the operations of any of NGP portfolio
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affect period-to-period comparability and are not reflective of the Company’s operating performance. We believe the inclusion
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Consolidated Results of Operations” prepared in accordance with U.S. GAAP.
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(1)Inflows reflects the impact of gross fundraising and closed reinsurance transactions at Fortitude during the period. For funds or vehicles
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is translated at the spot rate for each individual closing.
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are included in the following table:
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consent and amendment fees. Substantially all interest and other income of the CLOs and other consolidated funds together
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impact on net income attributable to the Company.
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fundraising amounts during the period for which fees have not yet been activated, which are referenced as Pending Fee-earning AUM.
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10-K for the year ended December 31, 2023.