Carlyle Group Inc.
For the period ended Mar 31, 2026. Filed May 8, 2026.
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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, 2026 · Filed May 8, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001527166-25-000125
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001527166-26-000027
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.
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797 unchanged; 286 reworded; 281 added; 391 removed; 29 previous and 25 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 (281)
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Global Private Equity segment had$159.0 billion in AUM and$99.1 billion in Fee-earning AUM.
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$209.5 billion in AUM and$166.4 billion in Fee-earning AUM.
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investment activity.
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Thecommencement of hostilities in the Middle East and the closure of the Strait of Hormuz have not yet manifested as
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visible economic damage. However, risks to the global economy remain elevated as the conflict in the Middle East persists, and
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those risks will continue to rise for as long as the Strait remains effectively shut. Approximately 20% of global crude oil, 20%
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of global liquid natural gas (“LNG”), 30% of global helium supplies, and 50% of global stocks of urea, the most widely used
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nitrogenous fertilizer, transit the Strait. For the industrial sector, energy looms large, but for many businesses beyond this
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sector, disruptions to supplies of petrochemicals, metals, helium, and other byproducts of LNG processing are just as
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significant. In the U.S., which is less reliant on imports that traverse the Strait, impacts seem most likely to manifest in higher
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prices, which could put downward pressure on consumption demand and slow overall growth. For much of the rest of the
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world, impacts could be more substantial, with physical shortages of energy and supplies resulting in outright demand
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destruction. Global supply shortages also have significant implications for the AI buildout, and AI-related capex growth
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intentions could be pared back materially should the conflict become prolonged.
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In equity markets, investors have grown skeptical about returns to AI capex: the Magnificent 7 stocks declined 12%
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during the quarter, though recent layoff announcements (presumably in an effort to offset these AI-related capex costs) and
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soaring cloud revenues have driven a recovery rally that has more than erased the drawdown, lifting the group above its
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October 2025 market peak to new all-time highs (as of May 8, 2026). The quarter was also marked by distinct pre- and post-
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conflict market dynamics. In the U.S., prior to February 27, 2026, investors rotated away from mega-cap technology and
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software toward “real economy” sectors: industrials were up 14%, while SaaS stocks were down 30% from the start of the year
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through that date, as new AI capabilities raised concerns about incumbent business models. After February 27, 2026, however,
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that rotation partially reversed in response to the energy shock, and industrials underperformed through quarter-end. Since the
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end of the first quarter of 2026, both “real economy” sectors and enterprise software (which is seen as less vulnerable to AI
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disruption) have performed well, while SaaS and cloud services providers continue to lag. Overall, the S&P 500 ended the
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quarter down 4.6%, though significant upgrades to “consensus” earnings estimates coupled with market optimism for an end to
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the Middle East conflict have driven the index to record highs in May. This recent rally is a symptom of the difficulty investors
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face in hedging and quantifying geopolitical risk. In contrast to other discrete shocks, such as the failure of SVB in 2023,
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markets face less clarity in mapping out the trajectory of evolving geopolitical developments and so tend to “look through”
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them. Globally, Japan’s Nikkei and Europe’s Euro Stoxx 50 started the quarter up 16.9% and 6%, respectively, prior to the
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outbreak of hostilities, but ultimately finished the quarter up just 1.4% and down 3.8%, respectively. The shock also reaffirmed
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the notion that bonds no longer hedge equity market risk. Bonds have now sold off with stocks during each major shock of the
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last 12 months, and the correlation between the monthly returns of stocks and bonds has moved from -25% to +50% since 2022.
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As the “natural” hedge of the traditional 60/40 portfolio continues to dissolve, investors may choose to rotate towards private
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markets to achieve greater diversification.
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The U.S. economy retained underlying momentum during the quarter. The labor market did not show obvious signs of
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deterioration, and our measure of real final demand—a proxy for real GDP net of foreign trade and inventories—grew at a 2.7%
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annualized rate, a result consistent with 5.7% annual growth in S&P 1500 revenue. Business spending continued to advance at
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an 11.1% annualized rate, led by AI-related investment. That strength is not limited to capex associated with data centers, which
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continues to grow at prodigious rates, but also reflects enterprise IT budgets, as the need to devise and implement AI strategies
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has moved technology spending from “nice to have” to a top corporate priority. Much of the spending thus far has been
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Investment Solutions).
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Global Private Equity segment had$163 billion in AUM and$101 billion in Fee-earning AUM.
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had$208 billion in AUM and$167 billion in Fee-earning AUM.
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commenced investment activity.
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The third quarter of 2025 was one of continued optimism across markets. In the U.S., the S&P 500 and NASDAQ
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sustained their upward climb, returning 8% and 11%, respectively. Broad enthusiasm for AI continues to drive sharp price
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action, with just ten stocks accounting for 40% of U.S. stock market capitalization, the highest degree of concentration on
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record. Moreover, eight of those companies operate in roughly the same sector and the earnings prospects of seven of them are
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highly leveraged to AI. Relatively modest declines in data center capacity utilization, or extensions of AI monetization
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timelines, could be enough to shift major stock market indexes. Stocks also performed well elsewhere. European stocks had a
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better third quarter than second quarter, with the Euro Stoxx 50 up over 4%, compared to a 1% return in the respective periods;
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meanwhile the Shanghai Composite and Nikkei 225 returned 13% and 11%, respectively, in the third quarter.
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As of the end of the third quarter, U.S. public equity multiples were 20–30% above their 10-year average. Since the
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pandemic, stock performance has become more divorced from traditional business quality metrics, such as top-line growth,
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profit margins, and the stability of earnings over the cycle. Over the past five years, investors would have outperformed a
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quality long portfolio by shorting a basket of stocks of the highest quality businesses, a notable inversion of historical patterns.
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Much of this change is the result of the prevalence in public markets of both passive fund flows and short-term oriented retail
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investors. The reduced role of institutional active investing as a share of overall public market activity has dampened
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meaningful price discovery. By contrast, the frictions associated with exiting positions help to insulate private markets from
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similar effects. With transaction prices set on the basis of underwritten return expectations over multiyear holding periods,
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private markets abide by arithmetic constraints absent from listed markets. These constraints help to ensure that prices remain
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tied to fundamentals, rather than liquidity flows, and that returns stem from earnings growth, rather than short-horizon
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momentum. This discipline has been reflected in ongoing private equity transactions; across the U.S. buyout universe, median
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purchase price multiples are still in line with the 10-year historical average.
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Our proprietary portfolio data indicate U.S. economic underlying growth is resilient and expanded at an annualized rate
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of roughly 2.7% in the third quarter. Household spending regained momentum, dominated by higher income households
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buoyed by a surging stock market and insulated from higher rates through mortgages fixed at below-market rates. Growth was
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also supported by business investment, which advanced at an annualized rate of nearly 5% over the quarter, powered by a
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concentrated surge in AI‑related outlays. This includes investments spanning data center construction, graphics processing unit
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(GPU) and server procurement, spending on related applications, and power and generation capacity. These investments—
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though a relatively small slice of gross domestic product (GDP)—account for roughly 30–40% of overall growth. Crucially, the
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financing mix skews heavily toward internally‑generated cash flows from mega‑cap technology firms, limiting the exposure to
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higher interest rates.
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Despite a steady economic outlook in the U.S., our portfolio data suggest that U.S. job growth has slowed with monthly
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payroll gains during the third quarter averaging only 15,000–20,000. This slowdown may reflect both the impact of narrower
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operating margins—likely due to tariffs—as well as a shrinking labor supply. Though most analysts assumed that the cost of
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tariffs would manifest as higher consumer prices, inflation rates across affected categories have not yet matched what would be
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implied by tariff revenue as some companies have absorbed higher tariffs in fear of weakened demand resulting from price
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increases. At the same time, the shift to tighter immigration policy has sharply reduced U.S. labor force growth, with net
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immigration near zero this year. Given that the domestic population is expected to grow just 14 basis points in 2025, only
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operations through three reportable segments: Global Private Equity, Global Credit, and Carlyle AlpInvest (formerly, Global
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operations through three reportable segments: Global Private Equity, Global Credit, and Carlyle AlpInvest.
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credit, cross-platform credit products, and global capital markets. As of September 30, 2025, our Global Credit segment
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credit, cross-platform credit products, and global capital markets. As of March 31, 2026, our Global Credit segment had
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September 30, 2025, our Carlyle AlpInvest segment had$102 billion in AUM and$64 billion in Fee-earning AUM.
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March 31, 2026, our Carlyle AlpInvest segment had$106.9 billion in AUM and$67.9 billion in Fee-earning AUM.
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management of$474 billion as of September 30, 2025 for each of our three global business segments (in billions):
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management of$475 billion as of March 31, 2026 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, 2025, 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, 2026, 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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(1)Includes our Financial Services (CGFSP), Sub-Saharan Africa Buyout (CSSAF), South America Buyout (CSABF), Peru Buyout (CPF),
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(1)Includes our Financial Services (CGFSP), Sub-Saharan Africa Buyout (CSSAF), Peru Buyout (CPF), and MENA Buyout funds, as well
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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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as platform accounts which invest across Corporate Private Equity strategies.
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(3)Includes our Infrastructure (CGIOF), Renewable Energy (CRSEF), and Power funds (CPP / CPOCP).
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(3)Includes our Infrastructure (CGIOF) and Renewable Energy (CRSEF) funds.
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(7)Includes Carlyle AlpInvest Private Markets (CAPM), Carlyle AlpInvest Private Markets Secondaries (CAPS), and Mezzanine funds.
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(7)Includes Carlyle AlpInvest Private Markets (CAPM) and Carlyle AlpInvest Private Markets Secondaries (CAPS) funds.
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We had$16.9 billion in inflows in thethird quarter of 2025 and$58.7 billion in inflows over the last twelve months as of
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inflows over the last twelve months as of March 31, 2026. Inflows over the last twelve months include $7.7 billion in our
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market price decreases in certain publicly traded positions offset appreciation elsewhere, our infrastructure & natural resources
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our corporate private equity funds depreciated(2)% as market price decreases in certain publicly traded positions offset
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funds appreciated 5%, and our real estate funds appreciated 1%. Our Global Credit carry funds, which represent approximately
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and appreciation in the NGP Carry funds, and our real estate funds appreciated 1%. Our Global Credit carry funds, which
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11% of the total Global Credit remaining fair value as of September 30, 2025, appreciated 4% in thethird quarter. Carry funds
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represent approximately 11% of the total Global Credit remaining fair value as of March 31, 2026, appreciated 4% in thefirst
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In October 2025, our Board of Directors declared a quarterly dividend of$0.35 per share to common stockholders of
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In April 2026, our Board of Directors declared a quarterly dividend of$0.35 per share to common stockholders of record
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record at the close of business on November 10, 2025, payable on November 19, 2025.
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at the close of business on May 18, 2026, payable on May 28, 2026.
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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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below. Underwriting fees include gains, losses, and fees arising from securities offerings in which we participate in the
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primarily from certain of our Global Credit funds, when the return on assets under management exceeds certain benchmark
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when the return on assets under management exceeds certain benchmark returns or other performance targets. In such
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returns or other performance targets. In such arrangements, incentive fees are recognized when the performance benchmark has
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arrangements, incentive fees are recognized when the performance benchmark has been achieved.
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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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$264.6 million,$181.8 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$87.1 million of the$257.0 million aggregate giveback obligation realized since
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the realized giveback obligation, only$88.5 million of the$264.6 million aggregate giveback obligation realized since
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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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restructuring of the terms of our strategic investment in NGP in March 2025 (the “Restructuring”), our equity interests in NGP
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entitle us to an allocation of income equal to 55.0% of the management fee related revenues earned by NGP Management for
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Management entitle us to an allocation of income equal to 55.0% of the management fee related revenues earned by NGP
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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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Management for existing funds, and up to 55.0% for all NGP funds that held an initial closing after December 31, 2024,
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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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including all management fees being retained by NGP for the years 2025 through 2028 on such future NGP funds. Our
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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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investment in the general partners of the NGP Carry Funds entitle us to up to 47.5% of the performance allocations received
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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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from NGP fund general partners. For further information regarding our strategic investments in NGP and the Restructuring,
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Investments, to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.
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refer to Note 4, Investments, to the condensed consolidated financial statements included in this Quarterly Report on
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the interest earned on assets of consolidated CLOs.
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the interest earned on assets of consolidated CLOs. Our CLOs generate interest income primarily from investments in bonds
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material impact on the revenues or profitability of the Company. Moreover, although the assets of the Consolidated Funds are
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material impact on the revenues or profitability of the Company beyond the Company’s capital invested in the Consolidated
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consolidated onto our balance sheet pursuant to U.S. GAAP, ultimately we do not have recourse to such assets and such
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GAAP, ultimately we do not have recourse to such assets and such liabilities are generally non-recourse to us. Therefore,
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the assets available to our common stockholders.
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income or loss from the Consolidated Funds does notgenerally have a material impact onthe assets available to our common
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of interest expense related primarily to loans of consolidated CLOs, professional fees and other third-party expenses.
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of interest expense related primarily to loans of consolidated CLOs and other consolidated funds, professional fees and other
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(d)the external investor portion of the net asset value of certain carry funds (see “Fee-earning AUM based on net
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(d)the external investor portion of the net asset value of certain carry funds and evergreen products (see “Fee-earning
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asset value” in the table below for the amount of this component at each period);
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AUM based on net asset value” in the table below for the amount of this component at each period);
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(1)Ending balances as of September 30, 2025 and 2024 exclude$19.1 billion and$21.0 billion, respectively, of pending Fee-earning AUM
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(1)Ending balances as of March 31, 2026 and 2025 exclude$21.2 billion and$25.6 billion, respectively, of Pending Fee-earning AUM for
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for which fees have not yet been activated.
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which fees have not yet been activated.
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on invested capital, the fee-earning collateral balance of new CLO issuances, closed reinsurance transactions at Fortitude, as well as
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on invested capital, the fee-earning collateral balance of new CLO issuances, reinsurance and other transactions at Fortitude, as well as
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expired during the period, reductions for funds that are no longer calling for fees, gross redemptions in our open-end funds, and outflows
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expired during the period, reductions for funds that are no longer calling for fees, gross redemptions in our evergreen funds, and outflows
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(c)the net asset value of certain carry funds;
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(c)the net asset value of certain carry funds and evergreen products;
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Funds. Moreover, although the assets of the Consolidated Funds are consolidated onto our balance sheet pursuant to U.S.
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markets fees can be volatile as they are primarily generated by investment activity within our funds, and therefore are impacted
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by our investment pace. See “—Trends Affecting Our Business” for further discussion on our investment activity and broader
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•In the Global Credit segment, for thethree months ended March 31, 2025, Performance allocation accruals were
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•In the Carlyle AlpInvest segment, for thethree months ended March 31, 2025, performance allocation accruals were
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Consolidated Funds and interest and other expenses of Consolidated Funds, is attributable to the related funds’ limited partners
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reflective of the Company’s operating performance.
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million for thethree months ended March 31, 2026 as compared to thethree months ended March 31, 2025, primarily due to a
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million for thethree months ended March 31, 2026 as compared to thethree months ended March 31, 2025, primarily due to
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of operations for the periods presented. The fund return information reflected in this discussion and analysis is not indicative of
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our funds or our other existing and future funds will achieve similar returns.
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calculated based on actual cash flow dates for each fund and represent a theoretical time-weighted return for a Limited
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Partner who invested sequentially in each fund.
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months ended March 31, 2025, due to the following:
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Affecting Our Business” for further discussion on our investment activity and broader market trends.
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value of assets covered by the Fortitude strategic advisory services agreement, partially offset by increases in the fair
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and represent a theoretical time-weighted return for a Limited Partner who invested sequentially in each fund.
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of individual Limited Partners. As a result, certain funds may generate accrued performance revenues with a blended
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calculated based on actual cash flow dates for each fund and represent a theoretical time-weighted return for a Limited
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Partner who invested sequentially in each fund.
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million for thethree months ended March 31, 2026 as compared to thethree months ended March 31, 2025, primarily due to an
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on invested capital, and gross subscriptions in our vehicles for which management fees are based on net asset value. Inflows exclude
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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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portfolios of investments within the relevant strategy that began making investments in the corresponding time periods. Co-
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certain consolidated investment funds and the CLOs. Generally, the consolidation of the Consolidated Funds has a gross-up
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condensed consolidated financial statements for further information.
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Business” for further discussion on our investment activity and broader market trends.
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are primarily generated by investment activity within our funds, and are therefore impacted by our investment pace. See “—
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Trends Affecting Our Business” for further discussion on our investment activity and broader market trends.
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million for thethree months ended September 30, 2025, as compared to thethree months ended September 30, 2024, and
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CRP IX, CEP V, and CIEP II, and the expiration of fees in CP VI during the period.
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fund return information reflected in this discussion and analysis is not indicative of the performance of The Carlyle Group Inc.
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are calculated based on actual cash flow dates for each fund and represent a theoretical time-weighted return for a
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Limited Partner who invested sequentially in each fund.
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“—Trends Affecting Our Business” for further discussion on our investment activity and broader market trends.
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•Outflows of$15.0 billion, which included outflows from our liquid credit products and realizations across the
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realizations across the platform, notably in our asset-backed finance products.
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dates for each fund and represent a theoretical time-weighted return for a Limited Partner who invested sequentially in
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differ from that of individual Limited Partners. As a result, certain funds may generate accrued performance revenues
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multiple funds are calculated based on actual cash flow dates for each fund and represent a theoretical time-weighted
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return for a Limited Partner who invested sequentially in each fund.
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ended September 30, 2025, as compared to thethree months ended September 30, 2024. Realized principal investment income
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million for thethree months ended September 30, 2025, as compared to thethree months ended September 30, 2024, and
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on commitments were activated during the period and the fee-earning commitments invested in vehicles for which management fees are
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based on invested capital. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which are
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referenced as Pending Fee-earning AUM.
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•Inflows of$11.7 billion, which were driven by fee-paying capital raised and investment activity across all strategies,
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notably in our secondaries & portfolio finance funds; and
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(1)Strategic equity method investment in NGP Management and investments in NGP general partners - accrued performance allocations.
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increase in Deferred revenue of$0.2 billion, partially offset bya decrease in Accrued compensation and benefits of$0.2 billion.
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the Company’s investment in the CLO, have a general unsecured interest in the Carlyle entity that manages the CLO, and do
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guarantee target returns to investors in any of our other investment funds.
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Quarterly Report on Form 10-Q.
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September 30, 2025. See Note 8, Commitments and Contingencies, to the condensed consolidated financial statements included