Carlyle Group Inc.
For the period ended Jun 30, 2025. Filed Aug 8, 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.
Jun 30, 2025 · Filed Aug 8, 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 2025-03-31; filed 2025-05-09.
0001527166-25-000071
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001527166-25-000104
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 1443 previous paragraphs and 1476 current paragraphs.
897 unchanged; 272 reworded; 295 added; 252 removed; 22 previous and 12 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 (295)
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Investment Solutions).
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Global Private Equity segment had$165 billion in AUM and$102 billion in Fee-earning AUM.
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$203 billion in AUM and$163 billion in Fee-earning AUM.
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The second quarter of 2025 ended very differently from the way it started. Just two days into the period, markets were
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roiled by higher than expected “Liberation Day” tariffs, driving the S&P 500 down more than 12% peak-to-trough over the
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following six days. Yet, financial markets ultimately performed well, as tariff rates were temporarily reduced and the hard
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economic data, while lackluster, held up. In the United States, the S&P 500 and NASDAQ ended the quarter up 10.6% and
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17.6%, respectively, outperforming many other global benchmarks (1%, 2.9%, and 7.9% for the Euro Stoxx 50, Shanghai
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Composite, and DAX, respectively; the Nikkei 225 outperformed the S&P 500 with a 13.7% return). While employment
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growth was sluggish in the U.S. during the second quarter, the unemployment rate was roughly unchanged at quarter-end
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thanks in large part to a simultaneously shrinking labor force. Front-loaded inventories and longer-term supply contracts made
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it possible for many businesses to maintain pricing and production schedules without sacrificing margins. Looking ahead,
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however, prices, output, and labor demand will likely adjust more than has been observed thus far as inventory stocks dwindle
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and fixed contracts approach expiration. Indeed, early clues of what might be yet to come were visible in the June inflation
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report, where prices for goods with high import exposure surged (e.g., toy and appliance prices rose 15% and 34%,
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respectively, at an annualized rate over the quarter). While trade negotiations have produced tentative agreements with a
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handful of countries, the end-state tariff rate for many U.S. trading partners remains unclear. Several nations currently face
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potential levies of as much as 25-50% on their exports to the U.S. and important inputs to domestic U.S. producers (copper
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products, steel and aluminum) may shoulder 50% tariffs. While few expect a full implementation of the initial (and highest)
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“reciprocal” rates, current U.S. economy-wide effective tariff rates in place are already at 13%, a more than 10 percentage point
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increase over 2024’s level, representing an implicit tax increase of over 1% of GDP. This fundamental change in trade policy
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still imposes risks to corporate profit margins and broader global growth in subsequent quarters. Companies that rely on key
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components and supplies from regions with high tariff rates may see their operating performance materially impacted, while
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stretched consumers and a general softening in global growth may erode the financial performance of even those companies
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with minimal trade dependence.
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Perhaps the biggest counterweight to trade-policy headwinds is ongoing or planned fixed investment. In the U.S., the
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relentless surge in artificial intelligence (AI)-related capital expenditures accounted for over half of U.S. GDP growth in the
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first half of the year, with order backlogs growing at annual rates of 35–60%—a powerful support for both corporate investment
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and overall output amid tariff uncertainty. This AI-related spend should also bolster business investment in Japan, even while
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its auto sector faces headwinds from U.S. tariffs. In Europe, a pivot towards “military Keynesianism” could unlock upwards of
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€1.5 trillion of new capex into defense, infrastructure, and energy over the next decade and, in turn, drive both productivity and
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real output growth higher. In the second quarter, China’s economy performed remarkably well, expanding at a 4.5% annual rate
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thanks to strong industrial production and export growth despite the U.S.’s punitive tariffs on Chinese goods; China has quickly
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succeeded in finding new export destinations, primarily Southeast Asian countries such as Vietnam. However, exports to these
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markets are not typically for domestic consumption (goods intended for domestic consumption only account for about 10% of
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Vietnam’s imports from China). The prospect of broader tariffs on Asian imports with Chinese value-added has therefore
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prompted many management teams to plan to relocate supply chains to Europe, with associated potential economic upside for
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alternative to China for global manufacturers, although recent tensions with the U.S. administration over India’s Russian oil
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purchases has introduced uncertainty into the near-term outlook.
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Despite the subsequent market rebound, the tariff-driven selloff earlier in the quarter underscored the new reality that
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Global Investment Solutions).
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Global Private Equity segment had$164 billion in AUM and$99 billion in Fee-earning AUM.
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$199 billion in AUM and$161 billion in Fee-earning AUM.
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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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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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performance. While the Federal Reserve remained on hold in the first quarter of 2025, market participants now anticipate
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roughly three 25 basis point rate cuts by the end of the year despite tariffs’ inflationary impacts, signaling market fears over
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weaker demand.
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While the U.S. economy is perhaps most exposed to the new tariff regime, the effects are global. In China, industrial
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output drove a record $1 trillion trade surplus in 2024; however, weak domestic consumption and a still-recovering property
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sector leave growth vulnerable to escalating U.S. tariffs, which now stand at 145%as of May 8, 2025, prompting China to seek
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Unless context suggests otherwise, references in this report to “Carlyle,” the “Company,” “we,” “us,” and “our” refer
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Unless context suggests otherwise, references in this Quarterly Report on Form 10-Q to “Carlyle,” the “Company,”
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to The Carlyle Group Inc. and its consolidated subsidiaries. The following discussion and analysis should be read in
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“we,” “us,” and “our” refer to The Carlyle Group Inc. and its consolidated subsidiaries. The following discussion and
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conjunction with the consolidated financial statements and the related notes included in this Quarterly Report on Form 10-Q
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analysis should be read in conjunction with the consolidated financial statements and the related notes included in this
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and the Annual Report on Form 10-K for the year ended December 31, 2024.
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Quarterly Report on Form 10-Q and the Annual Report on Form 10-K for the year ended December 31, 2024.
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We are one of the world’s largest global investment firms that deploys private capital across its business and we conduct
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We are one of the world’s largest global investment firms and deploy private capital across our business. We conduct our
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our operations through three reportable segments: Global Private Equity, Global Credit, and Carlyle AlpInvest (formerly,
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operations through three reportable segments: Global Private Equity, Global Credit, and Carlyle AlpInvest (formerly, Global
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•Global Private Equity — Our Global Private Equity segment advises our buyout, growth, real estate, infrastructure, and
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•Global Private Equity — Our Global Private Equity segment advises our buyout, growth, real estate, and infrastructure &
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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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June 30, 2025, our Carlyle AlpInvest segment had$97 billion in AUM and$60 billion in Fee-earning AUM.
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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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management of$465 billion as of June 30, 2025 for each of our three global business segments (in billions):
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MENA Buyout and Ireland Buyout (CICF) funds, as well as platform accounts which invest across Corporate Private Equity strategies.
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MENA Buyout and Ireland Buyout(CCIF) funds, as well as platform accounts which invest across Corporate Private Equity strategies.
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China. India’s relatively large consumer market, strong manufacturing base in select sectors (e.g., smartphones, automotive
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that region. India’s relatively large consumer market, strong manufacturing base in select sectors (e.g., smartphones, automotive
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components), and growing policy emphasis on attracting foreign direct investment have positioned it as a promising alternative
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components), and growing policy emphasis on attracting foreign direct investment have also positioned it as a promising
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around 4.3% as of May 8, 2025. Large and persistent fiscal deficits, an overvalued dollar, and the risk of sanctions pressure
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yields spiked in tandem. Large and persistent fiscal deficits, an overvalued dollar, and the risk of sanctions pressures have
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have combined to make U.S. dollar-denominated assets less attractive. This in turn has put upward pressure on the term premia
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combined to make U.S. dollar-denominated assets less attractive, putting upward pressure on the term premia of longer-
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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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liquidity at the same time that exit activity has slowed could present our secondaries business the opportunity to buy assets at
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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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discounts larger than would have been otherwise anticipated. Continuation vehicles and portfolio financings have also emerged
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Our investment activity in the first quarter continued the momentum we experienced toward the end of 2024 as global
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continued the momentum we experienced toward the end of 2024 and into the first quarter this year. We deployed$14.6 billion
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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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realized proceeds to date. In addition, we generated$122.5 million in transaction and portfolio advisory fees, net of rebate
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markets, combined with heightened equity and credit market volatility, may impact our investment deployment and realization
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period. However, the impact of pervasive uncertainty in global markets, combined with heightened equity and credit market
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Our carry fund portfolio appreciated 2% in thefirst quarter of 2025, displaying relative stability compared to the volatility
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Our carry fund portfolio appreciated 2% in thesecond quarter of 2025, continuing to show relative stability against a
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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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backdrop of volatility in the global equity markets. Within our Global Private Equity segment in thesecond quarter, our
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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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portfolio, appreciated 16% during the second quarter. Our Global Credit carry funds (which represent approximately 11% of the
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Investment income (loss). Investment income (loss) consists of our performance allocations as well as the realized and
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Investment income. Investment income consists of our performance allocations as well as the realized and unrealized
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unrealized gains and losses resulting from our equity method investments and other principal investments.
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gains and losses resulting from our equity method investments and other principal investments.
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On March 31, 2025, we restructured the terms of our strategic investment in NGP (the “Restructuring”) to further align
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restructuring of the terms of our strategic investment in NGP (the “Restructuring”), our equity interests in NGP Management
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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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entitle us to an allocation ofincome equal to 55.0% of the management fee related revenues earned by NGP Management for
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management fee related revenues earned by NGP Management for existing funds, and up to 55.0% for all NGP funds that held
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existing funds, and up to 55.0% for all NGP funds that held an initial closing after December 31, 2024, including all
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an initial closing after December 31, 2024, including all management fees being retained by NGP for the years 2025 through
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management fees being retained by NGP for the years 2025 through 2028 on such future NGP funds. Our investment in the
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2028 on such future NGP funds. Our investment in the general partners of the NGP Carry Funds entitle us to up to 47.5% of the
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general partners of the NGP Carry Funds entitle us to up to 47.5% of the performance allocations received from NGP fund
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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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general partners. For further information regarding our strategic investments in NGP and the Restructuring, refer to Note 4,
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do we direct the operations of any of NGP portfolio companies. While we have consent rights over certain major actions by
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do we direct the operations of anyof NGP’s portfolio companies. While we have consent rights over certain major actions by
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(1)Ending balances as of March 31, 2025 and 2024 exclude$25.6 billion and$15.3 billion, respectively, of pending Fee-earning AUM for
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(1)Ending balances as of June 30, 2025 and 2024 exclude$17.6 billion and$18.3 billion, respectively, of pending Fee-earning AUM for
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Private Markets (“CAPM”) funds, and (f) certain other structured credit products. As of March 31, 2025, our total AUM and
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Private Markets (“CAPM”) funds, and (f) certain other structured credit products. As of June 30, 2025, our total AUM and Fee-
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Fee-earning AUM included$102.1 billion and$99.1 billion, respectively, of Perpetual Capital.
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earning AUM included$104.5 billion and$101.0 billion, respectively, of Perpetual Capital.
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$231.3 billion of Performance Fee Eligible AUM.
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$236.7 billion of Performance Fee Eligible AUM.
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AUM;1% of our management fees for thethree months ended March 31, 2025; and 2% of our total investment income or loss
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AUM;1% of our management fees for both thethree and six months ended June 30, 2025; and 2% of our total investment
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on an unconsolidated basis for thethree months ended March 31, 2025.
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income or loss on an unconsolidated basis for both thethree and six months ended June 30, 2025.
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funds we advise. However, we consolidate certain CLOs and certain other funds that we advise. As of March 31, 2025, the
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funds we advise. However, we consolidate certain CLOs and certain other funds that we advise. As of June 30, 2025, the assets
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assets and liabilities of the Consolidated Funds were primarily related to our consolidated CLOs, which held approximately
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and liabilities of the Consolidated Funds were primarily related to our consolidated CLOs, which held approximately$9.2
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$8.8 billion of total assets. The assets and liabilities of the Consolidated Funds are generally held within separate legal entities
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billion of total assets. The assets and liabilities of the Consolidated Funds are generally held within separate legal entities and,
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volatility, may impact our investment deployment and realization pace in the near term.
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ended June 30, 2024, was primarily attributable to an impairment charge of$92.5 million and a$38.0 million reduction in NGP
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incentive fee related compensation is based;
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result in, lower fund management fees relative to prior periods.
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Trends Affecting Our Business” for further discussion on our investment activity and broader market trends.
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•Inflows of$2.8 billion, which included new capital raised in CRP X, CPI, and ACCD 3;
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further discussion on our investment activity and broader market trends.
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(8)For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time
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CMP II, SASOF II, and CASCOF.
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•Positive foreign exchange activity of$1.5 billion, primarily from the translation of our EUR-denominated funds to
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under the senior revolving credit facility.
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condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
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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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in NGP and the Restructuring, refer to Note 4, Investments, to the condensed consolidated financial statements included in this
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31, 2025 compared to thethree months ended March 31, 2024 was primarily attributable to an impairment charge of
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investment gains (losses) of Consolidated Funds is attributable to the related funds’ limited partners or CLO investors.
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three months ended March 31, 2025 as compared to thethree months ended March 31, 2024, primarily driven byan increase in
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interest expense of our CLOs and net investment gains (losses) of Consolidated Funds is attributable to the related funds’
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2025 primarily comprised the 21% U.S. federal corporate income tax rate and disallowed executive compensation, primarily
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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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•Outflows of$13.8 billion driven by realizations in funds that charge fees on invested capital, notably in our U.S.
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(4)Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest,
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(6)Gross Internal Rate of Return (“Gross IRR”) represents an annualized time-weighted return on Limited Partner invested
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(7)Net Internal Rate of Return (“Net IRR”) represents an annualized time-weighted return on Limited Partner invested
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(10)Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and
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discussion on our investment activity and broader market trends.
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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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General, administrative and other indirect expenses. General, administrative and other indirect expenses increased $5.4
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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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Note 13, Equity, to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
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not have recourse to any other Carlyle entity.
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Quarterly Report on Form 10-Q.
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connection with the vesting of restricted stock units subsequent to March 31, 2025 that will participate in the common