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Carlyle Group Inc.

For the period ended Dec 31, 2025. Filed Feb 27, 2026.

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About this filing

A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2025 · Filed Feb 27, 2026

CG$39.70-0.7%Stored close · as of Nov 6, 2026

What changed in Risk Factors?

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Previous report: 10-K

Period ended 2024-12-31; filed 2025-02-27.

0001527166-25-000006

Item 1A. RISK FACTORS

Current report: 10-K

Period ended 2025-12-31; filed 2026-02-27.

0001527166-26-000009

Item 1A. RISK FACTORS

The 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 3291 previous paragraphs and 2916 current paragraphs.

1539 unchanged; 784 reworded; 527 added; 922 removed; 46 previous and 66 current paragraphs rearranged.

Tables are not compared: 0 previous and 0 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 (527)

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underlying public equity market dynamics. After the April 2nd “Liberation Day” tariff announcements in the United States, the

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S&P 500 fell by over 12% peak-to-trough in the six days that followed. The market rebounded strongly in the weeks that

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followed and regained its prior peak by mid-summer. In the process of this rebound, both the S&P 500 and global indices have

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become ever more concentrated in a handful of AI-related or AI-adjacent stocks. The top ten largest stocks now account for

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over 40% of the market capitalization of the S&P 500, and eight of those ten companies are exposed to roughly the same AI

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risks. A change in the outlook for AI-related company earnings, or a reassessment of these companies’ valuations, could drive

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performance revenues.

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considering commitments to new funds. Although net distributions to investors across all private asset classes turned positive in

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thesecond quarter of 2025 for the first time in eighteen quarters, cumulative contributions have exceeded distributions by

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particular, while deal activity has been robust over the past year, the exit environment in private markets remains sluggish. A

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in 2025, we deployed nearly$55 billion across our business, a 28% increase over 2024.

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input costs for our funds’ portfolio companies and depress margins. In addition, the current administration has sought to reduce

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Committee on Foreign Investment in the United States (“CFIUS”) in 2018 and then again in 2022 may reduce the number of

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Severe public health events also may occur from time to time, and could directly and indirectly impact us in material

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respects that we are unable to predict or control, including by threatening our employees’ well-being and morale and

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interrupting business activities. Moreover, related factors may materially and adversely affect us, including the effectiveness of

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governmental responses, the extension, amendment, or withdrawal of any government programs or initiatives and the timing

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and speed of economic recovery. Actions taken in response may contribute to significant volatility in financial markets,

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resulting in increased volatility in equity prices, material interest rate changes, supply chain disruptions, such as simultaneous

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supply and demand shock in global, regional, and national economies, and an increase in inflationary pressures.

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and junior subordinated notes with an aggregate principal amount of$1,875.0 million as of December 31, 2025, as well as a

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and energy.

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may reduce our AUM, restrain its growth, warehouse investments on our balance sheet for new funds, reduce our fees, or

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margins. We have made, and expect to continue making, balance sheet investments to seed certain funds during their early

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fundraising stages, and we may later sell those investments to the funds at the lower of our original cost or fair value, without

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interest, regardless of how long we held them. If we do not sell a warehoused investment to a fund, we may sell it to another

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buyer at a price below our cost or hold it longer than intended, exposing us to value fluctuations and changing business

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revenues.”

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fewer investment opportunities. We also face potential threats to our physical security, including to our offices and the safety

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and well-being of our people, including our senior Carlyle professionals. These threats could involve terrorism, insider threats,

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targeted threats against our senior Carlyle professionals, workplace violence, or civil unrest, all of which could adversely affect

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and areas of expertise, particularly in light of increasingly unpredictable enforcement of immigration laws and visa

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will be enforceable in all cases. In this respect, we continue to monitor developments on the state and federal level. These

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each of which targets has been satisfied as of December 31, 2025. In 2025, we granted a total of 8.1 million restricted stock

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units to Carlyle professionals, and in February 2026, we granted a total of 5.8 million restricted stock units to Carlyle

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for grant under the Equity Incentive Plan as of February 27, 2026.

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vesting conditions tied to the achievement of absolute stock price targets over a period of three to four years. In order to recruit

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In addition, we and our portfolio companies face increased difficulty in obtaining or maintaining sufficient insurance

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(including cyber insurance) against potential liabilities and that could have a material adverse effect on our business. We face a

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data transfers as a national security issue that could limit how we and our portfolio companies are able to utilize data and those

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China, Taiwan and China, Israel and Iran and the Axis of Resistance, and between Ukraine and Russia), the imposition of

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Japanese monetary policy drove a sharp appreciation of the yen. This in turn disrupted long-standing carry trades whose

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funding leg rested on Japan’s low rates. The surge in the currency value triggered a selloff in Japanese equity markets. Liquidity

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pressures further exacerbated the selloff. For example, on August 5, 2024, the Nikkei 225 fell 12.4%, while the TOPIX fell

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12.2%, their largest respective single day declines since 1987. Global equity markets were impacted as well, albeit to a lesser

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extent. These series of events highlighted how seemingly innocuous and not wholly unexpected changes in policies or other

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accrued performance revenues.

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considering commitments to new funds. Through the first half of 2024, liquidity shortfalls across all private market asset classes

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produced persistent and meaningful negative cash flows—more capital calls than distributions—for 14 consecutive quarters, a

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phenomenon not seen on such a scale since the aftermath of the Global Financial Crisis. Cumulatively, across private market

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The availability and cost of financing for significant acquisition and disposition transactions could be impacted if

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equity and credit markets experience heightened volatility. While base rates are elevated relative to recent historical norms, high

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yield credit spreads currently are very favorable and remain near historic lows; at 275 basis points, B-rated spreads sit just 40

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basis points above the trough hit in the second quarter of 2007. Obtaining financings in both the high yield and leveraged loan

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markets currently is relatively easy. If credit markets weaken in the future, it is possible that we and our investment funds may

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not be able to consummate significant acquisition and disposition transactions on acceptable terms, or at all, if we or our funds

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are unable to finance these types of transactions on attractive terms or if the counterparty to the transaction is unable to secure

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suitable financing.

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capital could impact the management fees we earn on those carry funds and managed accounts that generate fees based on

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funds’ portfolio companies and depress margins. The new administration also may seek to reduce subsidies and roll back

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example, bipartisan legislation enacted in 2018 has significantly increased and may continue to significantly increase the

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number and types of investment transactions that are subject to the jurisdiction of the Committee on Foreign Investment in the

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United States (“CFIUS”). Under the final regulations implementing the reform legislation, which became effective in 2020,

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CFIUS has the authority to review, and potentially recommend that the President unwind, block, or impose conditions on

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certain non-controlling foreign investments in U.S. businesses that deal in certain ways with “critical technology,” “critical

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infrastructure,” and/or “sensitive personal data” of U.S. citizens (as those terms are defined in the regulations). In addition, in

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September 2022, then-President Biden signed an Executive Order directing CFIUS to sharpen its scrutiny of foreign investment

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that could impact cybersecurity, quantum computing, biotechnology, and sensitive data. CFIUS’ expanded jurisdiction may

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principal amount of$1,375.0 million as of December 31, 2024, as well as a credit agreement that provides a $1.0 billion

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interests of our stockholders.

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also has been a shift to a hybrid work model and, in our recruiting efforts, we have seen increased focus by prospective

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candidates on remote and hybrid work arrangements and arrangements providing more flexibility, including around location.

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Although we generally have moved to a hybrid work model in which many of our employees are permitted to work remotely

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for a designated portion of their working time and are expected to come to a Carlyle office for a designated portion of their

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working time, we continue to see focus on remote work arrangements. We also have experienced upward pressure on

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us. In addition, there is no assurance that such agreements will be enforceable in all cases. These noncompetition and

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Commission (“FTC”) published a final rule that would generally prohibit post-employment noncompete clauses (or other

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clauses with comparable effect) in agreements between employers and their employees, subject to limited exceptions, although

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enforcement of the final rule has been enjoined. We are continuing to monitor the status of the final rule, including with the new

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operations), geopolitical tensions and instability, social unrest, supply chain pressures, and the effects of climate change. Over

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operations), geopolitical tensions and instability (including the realignment of alliances), social unrest, supply chain pressures,

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the last several years, markets have been affected by the COVID-19 pandemic, significant increases in U.S. interest rates,

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and the effects of climate change. Over the last several years, markets have been affected by the introduction of new tariffs,

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inflationary pressures, sharp currency moves, heightened geopolitical tensions (including those between the United States and

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monetary policy uncertainty, inflationary pressures, sharp currency moves, heightened geopolitical tensions, the imposition of

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export controls, tariffs, and trade barriers, the imposition of economic and political sanctions (upon specific individuals or

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export controls and trade barriers, the imposition of economic and political sanctions (upon specific individuals or companies

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companies and country, industry, and sector-wide restrictions), ongoing trade negotiations with major U.S. trading partners, and

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and country, industry, and sector-wide restrictions), and changes in U.S. tax regulations. Moreover, our investment funds

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investment funds with significant operations or connectivity and reliance on Asia companies, and listed securities or debt

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focused on Asia, and portfolio companies within non-Asia investment funds with significant operations or connectivity and

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instruments of companies or industries, could be impacted by any disruptions to the global supply chain that may result from

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reliance on Asian companies, and listed securities or debt instruments of companies or industries, could be impacted by any

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escalating tensions, disputes, or potential conflicts in the region surrounding the Taiwan Strait. The resulting actions taken, the

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disruptions to the global supply chain that may result from escalating tensions, disputes, or potential conflicts in the region

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response of the international community, and other factors affecting trade with China or political or economic conditions in

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affecting trade with China or political or economic conditions in Taiwan could disrupt the manufacture of several business-

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which may impact sectors and industries regardless of their business proximity to the Taiwan Strait.

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their business proximity to the Taiwan Strait.

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Over the twelve months ending on December 31, 2024, the S&P 500 rose by 23.0%, while the MSCI All Country

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Over the twelve months ending on December 31, 2025, the S&P 500 rose by 16.4%, while the MSCI All Country

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World Index (MSCI) increased by 15.0%. This robust full-year performance masks interim volatility. Notably, a shift in

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World Index (MSCI ACWI) increased by 20.6%. This robust full-year performance masks interim volatilityand fragile

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market conditions may quickly cascade into more significant movements. Factors that impact global markets, including

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significant market movements. Overall, factors that impact global markets, including growth expectations, inflation, interest

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inflation, interest rates, trade barriers such as tariffs, regulatory, and political environments, can be unpredictable and investor

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rates, trade barriers such as tariffs, regulatory, and political environments, can be unpredictable and investor sentiment could

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sentiment could change quickly in the future, while market volatility could accelerate in the face of negative macro, monetary,

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change quickly in the future, while market volatility could accelerate in the face of negative macro, monetary, or geopolitical

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or geopolitical developments. If global markets become unstable, it is possible sellers of assets may readjust their valuations

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developments. If global markets become unstable, it is possible sellers of assets may readjust their valuations and attractive

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and attractive investment opportunities may become available. On the other hand, the valuations of certain assets we planned to

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investment opportunities may become available. On the other hand, the valuations of certain assets we planned to sell in the

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sell in the near future could be negatively impacted, as well as the valuations of our portfolio companies and, as a result, our

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near future could be negatively impacted, as well as the valuations of our portfolio companies and, as a result, our accrued

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decline. In addition, investors often evaluate the amount of distributions they have received from existing funds when

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decline. In addition, investors often evaluate the amount of distributions that they have received from existing funds when

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asset classes, contributions have exceeded distributions by nearly $470 billion since 2020. This has restricted investor liquidity,

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nearly $550 billion since 2020. This has restricted investor liquidity, which in turn has reduced commitments to private capital

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which in turn has reduced commitments to private capital assets. Investors also may weigh the likely impact of geopolitical

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assets. Investors also may weigh the likely impact of geopolitical tensions, cross-border regulations, and other factors such as

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tensions, cross-border regulations, and other factors such as general market volatility and/or a reduction in distributions to

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general market volatility and/or a reduction in distributions to investors when considering their allocations to new investment

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funds could have an impact on the ultimate size of our funds and amount of management fees we generate.

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funds. A decrease in the amount an investor commits to our funds could have an impact on the ultimate size of our funds and

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Global merger and acquisition volume totaled$3.5 trillion in 2024, a 12% increase from 2023. While total M&A

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Global merger and acquisition (“M&A”) volume totaled$5.1 trillion in 2025, a 44% increase from 2024. While total

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activity appears to be normalizing, a retrenchment could cause a slowdown in our investment pace, which in turn could have an

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M&A activity has accelerated, a retrenchment could cause a slowdown in our investment pace, which in turn could have an

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adverse impact on our ability to generate future performance revenues and to fully invest the available capital in our funds and

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adverse impact on our ability to generate future performance revenues and to fully invest the available capital in our funds. In

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reduce opportunities to exit and realize value from our fund investments. A slowdown in the deployment of our available

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deceleration in M&A activity could further reduce opportunities to exit and realize value from our fund investments. A

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invested (and not committed) capital. A slowdown in the deployment of our available capital also could adversely affect our

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managed accounts that generate fees based on invested (and not committed) capital. A slowdown in the deployment of our

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ability to raise and the timing of raising successor investment funds. In 2024, we invested nearly $22 billion through our carry

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available capital also could adversely affect our ability to raise and the timing of raising successor investment funds. However,

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foreign investment, trade, taxation, economic, environmental, and other policies under the new administration, as well as the

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foreign investment, trade, taxation, economic, environmental, and other policies under the current administration, as well as the

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further escalation in conflicts in the Middle East and Eastern Europe, could lead to disruption, instability, and volatility in the

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further escalation in conflicts in the Middle East, Eastern Europe, and Latin America could lead to disruption, instability, and

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global markets, which also may have an impact on our exit opportunities across negatively impacted sectors or geographies.

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volatility in the global markets, which also may have an impact on our exit opportunities across negatively impacted sectors or

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The new administration has decided to impose and may decide to impose additional steep tariffs on goods, materials, inputs,

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geographies. The current administration has decided to impose and may decide to impose additional steep tariffs on goods,

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and intermediate parts with origins across numerous geographies. Such changes could materially increase input costs for our

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materials, inputs, and intermediate parts with origins across numerous geographies. Such changes could materially increase

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favorable terms for investments in renewable energy projects, which could adversely impact the performance of those strategies

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subsidies, block permits and leases for new projects, and roll back favorable terms for investments in renewable energy

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in our portfolio. The consequences of previously enacted legislation also could impact our business operations in the future. For

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enacted legislation also could impact our business operations in the future. For example, the expansion of the jurisdiction of the

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reduce the number of potential buyers of and investors in U.S. companies and, accordingly, may limit the ability of our funds to

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potential buyers of and investors in U.S. companies and, accordingly, may limit the ability of our funds to realize value and/or

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realize value and/or exit from certain existing and future investments. Our flexibility in structuring or financing certain

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exit from certain existing and future investments. Our flexibility in structuring or financing certain transactions may likewise be

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transactions may likewise be constrained and we are unable to predict whether and to what extent uncertainty surrounding

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constrained and we are unable to predict whether and to what extent uncertainty surrounding economic and market conditions

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economic and market conditions or adverse conditions or events in particular sectors may cause our performance to suffer.

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or adverse conditions or events in particular sectors may cause our performance to suffer.

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surrounding the Taiwan Strait. The resulting actions taken, the response of the international community, and other factors

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critical products or hardware components, including semiconductors, which may impact sectors and industries regardless of

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amount of management fees we generate.

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slowdown in the deployment of our available capital could impact the management fees we earn on our investments and

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ventures, which could adversely impact the performance of those strategies in our portfolio. The consequences of previously

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information regarding our senior and subordinated notes and credit agreements). The credit agreement contains financial and

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resulting from a breach of certain financial or non-financial covenants could result, at the option of the lenders, in an

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proves to be profitable, it may be a number of years before any profits can be realized, particularly if market conditions are

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otherwise alter the terms under which we do business when we deem it in the best interest of our investors—even in

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retain all of our desired personnel due to shifting employee priorities. In addition, the minimum retained ownership

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from leaving, joining our competitors, or otherwise competing with us. In addition, there is no assurance that such agreements

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against terrorism or certain other catastrophic losses.

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sectors, continue to rapidly evolve, and our use of AI Technologies may require compliance with legal or regulatory

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extent of current or future risks related thereto.

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time, hire additional personnel, or buy new technology to comply effectively.

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annual reporting of how they voted on say-on-pay proxy matters.

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In addition, existing rules and future rule changes could increase our risk of exposure to additional regulatory scrutiny,

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litigation, censure, and penalties for noncompliance or perceived noncompliance, which in turn would be expected to adversely

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(potentially materially) affect us and our reputation and to negatively impact our ability to conduct business.

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dealing with many aspects of financial services, including the authority to grant, and in specific circumstances to cancel,

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permissions to carry on particular activities. Many of these regulators, including U.S. and foreign government agencies and

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self-regulatory organizations, as well as state securities commissions in the United States, are also empowered to conduct

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investigations and administrative proceedings that can result in fines, suspensions of personnel, changes in policies, procedures,

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or disclosure or other sanctions, including censure, the issuance of cease-and-desist orders, the suspension or expulsion of a

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broker-dealer or investment adviser from registration or memberships, or the commencement of a civil or criminal lawsuit

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investigation, proceeding or imposition of these sanctions could harm Carlyle and our funds. While it is difficult to predict what

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CSRC, the AMAC, local financial bureaus, or others). These regulations may have an adverse effect on us and/or ourrenminbi

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advisers to, among other measures, adopt an anti-money laundering and countering the financing of terrorism (“AML/CFT”)

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may be more successful than we are in the development and implementation of new technologies, including services and

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to the Assets We Manage—Our investors may negotiate to pay us lower management fees and the economic terms of our future

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funds may be less favorable to us than those of our existing funds, which could adversely affect our revenues.”

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See “Risks Related to Our Business Operations—Risks Related to the Assets We Manage—Our funds make investments in

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companies that are based outside of the United States, which may expose us to additional risks not typically associated with

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investing in companies that are based in the United States.”

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and adversely affect our financial condition.

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investment funds. This significantly limits such investors’ ability to make new commitments to third-party managed investment

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Manage—Third-party investors in substantially all of our carry funds have the right to remove the general partner of the fund

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for cause, to accelerate the liquidation date of the investment fund without cause by a simple majority vote, and to terminate the

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cash flow and adversely affect our financial condition.

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In connection with raising new funds or making additional investments in existing funds, we negotiate terms for such

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changes in U.S. tax regulations. Moreover, our investment funds focused on Asia, and portfolio companies within non-Asia

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Taiwan could disrupt the manufacture of several business critical products or hardware components, including semiconductors,

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investors when considering their allocations to new investment funds. A decrease in the amount an investor commits to our

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credit agreements). The credit agreement contains financial and non-financial covenants with which we need to comply to

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any profits can be realized, particularly if market conditions were unaccommodating. We cannot predict when, or if, any

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may reduce our AUM, restrain its growth, reduce our fees, or otherwise alter the terms under which we do business when we

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us than those of our existing funds, which could adversely affect our revenues.”

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the noncompetition and nonsolicitation agreements to which certain of our senior Carlyle professionals are subject, together

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during the fourth quarter of 2024),140%, and 160% of the applicable starting share price. In addition, in February 2025, we

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and implementation of new technologies, including services and platforms based on artificial intelligence, to address investor

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have proposed or finalized laws that create regulatory risk around the use of AI Technologies or threaten to limit or eliminate

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damage our reputation and adversely affect our business.

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Moreover, the SEC (in May 2023) and the SEC and CFTC jointly (in February 2024) adopted changes to Form PF, a

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prohibited from sponsoring or investing in such funds.

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of trades. These rules could affect Carlyle’s business by making it more costly financially or otherwise burdensome for Carlyle

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affects our activities and creates the potential for significant liabilities and penalties, and could result in additional burdens on

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funds, including our investment funds. Compliance with any new laws or regulations (including recent heightened SEC scrutiny

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regulations may have an adverse effect on us and/or ourrenminbi (RMB)-denominated investment funds by, among other

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respect to issuers in which we may be considering making an investment. Consequently, we may be precluded from providing

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industry and change the way financial institutions, as well as asset managers, do business. A number of factors serve to increase

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investors or that target insurance capital;

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management fees and the economic terms of our future funds may be less favorable to us than those of our existing funds,

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which could adversely affect our revenues.”

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Operations—Risks Related to the Assets We Manage—Our funds make investments in companies that are based outside of the

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United States, which may expose us to additional risks not typically associated with investing in companies that are based in the

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investments to meet future capital calls. In cases where valuations of existing investments fall, the investment pace is delayed

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private equity and alternative investments were to decline.

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result in a significant decline in revenue generated from transaction fees. For instance, our current generations of U.S., Europe,

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related to amounts previously distributed to our senior Carlyle professionals, the majority of which relates to the accrued

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Arrangements / Fee Structure” and Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results

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Accounting Policies, and 8, Commitments and Contingencies, to the consolidated financial statements in Part II, Item 8 of this

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Annual Report on Form 10-K.

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material adverse effect on our business.

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uncertainty for our funds’ portfolio companies and our investment strategies and adversely affect the profitability of our funds’

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suffering losses. For example, investments in structured vehicles, including equity and debt securities issued by CLOs, involve

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the credit markets may result in an increase in credit spreads and a decline in ratings, performance, and market values for

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personnel; and risks associated with the acquisition of new investment platforms.

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“Risks Related to Our Business Operations—Risks Related to the Assets We Manage—The investments of our private equity

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funds are subject to a number of inherent risks.”

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Our investments in the life sciences industry may expose us to increased risks.

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