Carlyle Group Inc.

1. Organization

Carlyle is one of the world’s largest global investment firms that deploys private capital acrossits business and conducts

its operations through three reportable segments: Global Private Equity, Global Credit, and Carlyle AlpInvest (see Note 14,

Segment Reporting). The Global Private Equity segment advises buyout, growth, real estate, and infrastructure & natural

resources funds. The Global Private Equity segment also includes the NGP Carry Funds advised by NGP. The Global Credit

segment advises funds and vehicles that pursue investment strategies including insurance solutions, liquid credit, opportunistic

credit, direct lending, asset-backed finance, aviation finance, infrastructure credit, cross-platform credit products, and global

capital markets. The Carlyle AlpInvest segment advises global private equity programs that pursue secondary purchases and

financing of existing portfolios, managed co-investment programs, and primary fund investments. Carlyle typically serves as

the general partner, investment manager, or collateral manager, making day-to-day investment decisions concerning the assets

of these products.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements are prepared in accordance with accounting principles

generally accepted in the United States (“U.S. GAAP”) and include the accounts of the Company and its consolidated

subsidiaries. In addition, certain Carlyle-affiliated funds, related co-investment entities, and certain CLOs managed by the

Company (collectively, the “Consolidated Funds”) have been consolidated in the accompanying financial statements.

Generally, the consolidation of the Consolidated Funds has a gross-up effect on assets, liabilities and cash flows, but has no net

effect on the net income attributable to the Company beyond the capital contributed by the Company to the Consolidated Funds.

The economic ownership interests of the other investors in the Consolidated Funds are reflected as non-controlling interests in

consolidated entities in the accompanying condensed consolidated financial statements. All of the investments held by the

Consolidated Funds and notes issued by the consolidated CLOs are presented at their estimated fair values in the Company’s

condensed consolidated balance sheets. Interest and other income of the Consolidated Funds, interest expense and other

expenses of the Consolidated Funds, and net investment income (losses) of Consolidated Funds are included in the Company’s

condensed consolidated statements of operations.

Management has determined that the Company’s funds are investment companies under U.S. GAAP for the purposes of

financial reporting. U.S. GAAP for an investment company requires investments to be recorded at estimated fair value and the

unrealized gains and/or losses in an investment’s fair value are recognized on a current basis in the statements of operations.

Additionally, the funds do not consolidate their majority-owned and controlled investments. In the preparation of these

condensed consolidated financial statements, the Company has retained the specialized accounting for the funds.

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for

interim financial information. These statements, including notes, have not been audited, exclude some of the disclosures

required for annual financial statements, and should be read in conjunction with the audited consolidated financial statements

included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities

and Exchange Commission (“SEC”) on February 27, 2026. The operating results presented for interim periods are not

necessarily indicative of the results that may be expected for any other interim period or for the entire year. In the opinion of

management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals,

which are necessary for the fair presentation of the financial condition and results of operations for the interim periods

presented.

Principles of Consolidation

The Company consolidates all entities that it controls either through a majority voting interest or as the primary

beneficiary of variable interest entities (“VIEs”).

The Company evaluates (1) whether it holds a variable interest in an entity, (2) whether the entity is a VIE, and (3)

whether the Company’s involvement would make it the primary beneficiary. In evaluating whether the Company holds a

variable interest, fees (including management fees, incentive fees and performance allocations) that are customary and

commensurate with the level of services provided, and where the Company does not hold other economic interests in the entity

that would absorb more than an insignificant amount of the expected losses or returns of the entity, are not considered variable

interests. The Company considers all economic interests, including indirect interests, to determine if a fee is considered a

variable interest.

For those entities where the Company holds a variable interest, the Company determines whether each of these entities

qualifies as a VIE and, if so, whether or not the Company is the primary beneficiary. The assessment of whether the entity is a

VIE is generally performed qualitatively, which requires judgment. These judgments include: (a) determining whether the

equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial

support, (b) evaluating whether the equity holders, as a group, can make decisions that have a significant effect on the economic

performance of the entity, (c) determining whether two or more parties’ equity interests should be aggregated, and (d)

determining whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to

receive returns from an entity.

For entities that are determined to be VIEs, the Company consolidates those entities where it has concluded it is the

primary beneficiary. The primary beneficiary is defined as the variable interest holder with (a) the power to direct the activities

of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity

or the right to receive benefits from the entity that could potentially be significant to the VIE. In evaluating whether the

Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly

by the Company.

As of March 31, 2026, assets and liabilities of the consolidated VIEs reflected in the condensed consolidated balance

sheets were$15.8 billion and$12.9 billion, respectively. As of December 31, 2025, assets and liabilities of the consolidated

VIEs reflected in the consolidated balance sheets were$14.0 billion and$11.7 billion, respectively. Except to the extent of the

consolidated assets of the VIEs, the holders of the consolidated VIEs’ liabilities generally do not have recourse to the Company.

The Company’s Consolidated Funds are primarily CLOs, which are VIEs that issue loans payable that are backed by

diversified collateral asset portfolios consisting primarily of loans or structured debt. In exchange for managing the collateral

for the CLOs, the Company earns investment management fees, including in some cases subordinated management fees and

contingent incentive fees. In cases where the Company consolidates the CLOs (primarily because of a retained interest that is

significant to the CLO), those management fees and contingent incentive fees have been eliminated as intercompany

transactions. As of March 31, 2026, the Company held$484.3 million of investments in these CLOs which represents its

maximum risk of loss. The Company’s investments in these CLOs are generally subordinated to other interests in the entities

and entitle the Company to receive a pro rata portion of the residual cash flows, if any, from the entities. Investors in the CLOs

have no recourse against the Company for any losses sustained in the CLO structure. The Company’s Consolidated Funds also

include certain investment funds in the Global Private Equity segment that are accounted for as consolidated VIEs due to the

Company providing financing to bridge investment purchases. As of March 31, 2026, the Company held$900.5 million of

notes receivable and investments related to these investment funds which represents its maximum risk of loss. The Company’s

Consolidated Funds also include certain funds in the Global Credit and Carlyle AlpInvest segments that are accounted for as

consolidated VIEs due to the Company having either a significant direct interest in these funds or significant indirect interest

via the Company’s investment in Fortitude (see Note 4, Investments).

Entities that do not qualify as VIEs are generally assessed for consolidation as voting interest entities. Under the voting

interest entity model, the Company consolidates those entities it controls through a majority voting interest.

All significant inter-entity transactions and balances of entities consolidated have been eliminated.

Investments in Unconsolidated Variable Interest Entities

The Company holds variable interests in certain VIEs that are not consolidated because the Company is not the primary

beneficiary, including its investments in certain credit vehicles and certain Carlyle AlpInvest vehicles, as well as its strategic

investment in NGP Management Company, L.L.C. (“NGP Management” and, together with its affiliates, “NGP”). Refer to

Note 4, Investments, for information on the strategic investment in NGP. The Company’s involvement with such entities is in

the form of direct or indirect equity interests and fee arrangements. The maximum exposure to loss represents the loss of assets

recognized by the Company relating to its variable interests in these unconsolidated entities.

The assets recognized in the Company’s condensed consolidated balance sheets related to the Company’s variable

interests in these non-consolidated VIEs were as follows:

These amounts represent the Company’s maximum exposure to loss related to the unconsolidated VIEs as of March 31,

2026 and December 31, 2025.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make assumptions and

estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of

the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting

period. Management’s estimates are based on historical experiences and other factors, including expectations of future events

that management believes to be reasonable under the circumstances. It also requires management to exercise judgment in the

process of applying the Company’s accounting policies. Assumptions and estimates regarding the valuation of investments and

their resulting impact on performance allocations and incentive fees involve a higher degree of judgment and complexity and

these assumptions and estimates may be significant to the condensed consolidated financial statements and the resulting impact

on performance allocations and incentive fees. Actual results could differ from these estimates and such differences could be

material.

Revenue Recognition

The Company recognizes revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from

Contracts with Customers. Revenue is recognized when the Company transfers promised goods or services to customers in an

amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

ASC 606 includes a five-step framework that requires an entity to: (i) identify the contract(s) with a customer, which includes

assessing the collectability of the consideration to which it will be entitled in exchange for the goods or services transferred to

the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the

transaction price to the performance obligations in the contract, and (v) recognize revenue when the entity satisfies a

performance obligation.

The Company accounts for performance allocations that represent a performance-based capital allocation from fund

limited partners to the Company (commonly known as “carried interest”) as earnings from financial assets within the scope of

ASC 323, Investments—Equity Method and Joint Ventures, and therefore are not in the scope of ASC 606. In accordance with

ASC 323, the Company records equity method income (losses) as a component of investment income based on the change in its

proportionate claim on net assets of the investment fund, including performance allocations, assuming the investment fund was

liquidated as of each reporting date pursuant to each fund’s governing agreements. See Note 4, Investments, for additional

information on the components of investments and investment income. Performance fees that do not meet the definition of

performance-based capital allocations are in the scope of ASC 606 and are included in incentive fees in the condensed

consolidated statements of operations. The calculation of unrealized performance revenues utilizes investment valuations of the

funds’ underlying investments, which are derived using the policies, methodologies and templates prepared by the Company’s

valuation group, as described in Note 3, Fair Value Measurement.

While the determination of who is the customer in a contractual arrangement will be made on a contract-by-contract

basis, the customer will generally be the investment fund for the Company’s significant management and advisory contracts.

The customer determination impacts the Company’s analysis of the accounting for contract costs.

Fund Management Fees

The Company provides management services to funds in which it holds a general partner interest or to funds or certain

portfolio companies with which it has an investment advisory or investment management agreement. The Company considers

the performance obligations in its contracts with its funds to be the promise to provide (or to arrange for third parties to provide)

investment management services related to the management, policies and operations of the funds.

As it relates to the Company’s performance obligation to provide investment management services, the Company

typically satisfies this performance obligation over time as the services are rendered, as the funds simultaneously receive and

consume the benefits provided as the Company performs the service. The transaction price is the amount of consideration to

which the Company expects to be entitled in exchange for transferring the promised services to the funds. Management fees

earned from each investment management contract over the contract life represent variable consideration because the

consideration the Company is entitled to varies based on fluctuations in the basis for the management fee, for example fund net

asset value (“NAV”) or assets under management (“AUM”). Given that the management fee basis is susceptible to market

factors outside of the Company’s influence, management fees are constrained and, therefore, estimates of future period

management fees are generally not included in the transaction price. Revenue recognized for the investment management

services provided is generally the amount determined at the end of the period because that is when the uncertainty for that

period is resolved.

Management fees may be charged in advance or arrears, and at a monthly, quarterly, or semi-annual cadence pursuant to

the terms of the investment management agreement. The range of management fee rates and the base on which they are earned

vary based on the product’s strategy, expected term, and other factors, but generally encompass the following:

•For closed-end carry funds in the Global Private Equity and Global Credit segments:

◦During the fund’s commitment period, generally 1.0% to 2.0% of limited partners’ capital commitments in

the case of Global Private Equity and invested capital in the case of Global Credit, and

◦Following the expiration or termination of the investment period, generally 0.5% to 2.0% of the lower of

cost or fair value of invested capital.

•For carry funds and other fund vehicles in the Carlyle AlpInvest segment:

◦During the fund’s commitment period, generally 0.25% to 1.5% of the vehicle’s capital commitments, and

◦Following the expiration of the commitment fee period, generally 0.25% to 1.5% on (i) the net invested

capital, (ii) the lower of cost or net asset value of the capital invested, or (iii) the net asset value for

unrealized investments.

•For CLOs and other structured products in the Global Credit segment,0.4% to 0.5% based on the total par amount

of assets or the aggregate principal amount of the notes in the CLO.

•For certain of the Company’s perpetual capital strategies and separately managed accounts in the Global Credit

segment,0.10% to 0.75% based on invested capital or the fair value of the underlying assets.

•For certain cross platform products as well as the company’s business development companies in the Global Credit

segment,1.0% to 1.5% of gross assets, excluding cash and cash equivalents, or net asset value.

•For the Company’sretail-oriented perpetual capital products, including CTAC, CAPM, and CAPS funds, generally

1.0% to 1.25% of net asset value.

The Company also provides transaction advisory and portfolio advisory services to the portfolio companies, and where

covered by separate contractual agreements, recognizes fees for these services when the performance obligation has been

satisfied and collection is reasonably assured. The Company is generally required to offset its fund management fees earned

from the funds that have invested in the portfolio companies to which the service has been provided by a percentage of the

transaction and advisory fees allocable to those funds. This amount is referred to as the “rebate offset,” and is generally 100%.

Transaction and advisory fees allocable to funds that do not pay fund management fees do not have a rebate offset. The

Company also recognizes underwriting fees from the Company’s loan syndication and capital markets business, Carlyle Global

Capital Markets. Fund management fees include transaction and portfolio advisory fees, as well as capital markets fees, of

$49.3 million and$76.7 million for thethree months ended March 31, 2026 and 2025, respectively, net of rebate offsets as

defined in the respective fund limited partnership agreements.

Fund management fees exclude the reimbursement of any partnership expenses paid by the Company on behalf of the

Carlyle funds pursuant to the limited partnership agreements, including amounts related to the pursuit of actual, proposed, or

unconsummated investments, professional fees, expenses associated with the acquisition, holding and disposition of

investments, and other fund administrative expenses. For the professional fees that the Company arranges for the investment

funds, the Company concluded that the nature of its promise is to arrange for the services to be provided and it does not control

the services provided by third parties before they are transferred to the customer. Therefore, the Company concluded it is acting

in the capacity of an agent. Accordingly, the reimbursement for these professional fees paid on behalf of the investment funds is

presented on a net basis in general, administrative and other expenses in the condensed consolidated statements of operations.

The Company also incurs certain costs, primarily employee travel and entertainment costs, employee compensation and

systems costs, for which it receives reimbursement from the investment funds in connection with its performance obligation to

provide investment and management services. For reimbursable travel, compensation and systems costs, the Company

concluded it controls the services provided by its employees and the resources used to develop applicable systems before they

are transferred to the customer and therefore is a principal. Accordingly, the reimbursement for these costs incurred by the

Company to manage the fund limited partnerships are presented on a gross basis in interest and other income in the condensed

consolidated statements of operations and the expense in general, administrative and other expenses or cash-based

compensation and benefits expenses in the condensed consolidated statements of operations.

Incentive Fees

The Company is also entitled to receive performance-based incentive fees when the return on assets under management

exceeds certain benchmark returns or other performance targets. In such arrangements, the Company is entitled to an incentive

fee generally between 10.0% and 17.5% of either pre-incentive investment income or net profits, in most instances subject to a

quarterly hurdle rate and catch-up, payable quarterly. Incentive fees are recognized when the performance benchmark has been

achieved. Incentive fees are variable consideration because they are contingent upon the investment vehicle achieving stipulated

investment return hurdles. Investment returns are highly susceptible to market factors outside of the Company’s influence.

Accordingly, incentive fees are constrained until all uncertainty is resolved. Estimates of future period incentive fees are

generally not included in the transaction price because these estimates are constrained. The transaction price for incentive fees

is generally the amount determined at the end of each accounting period to which they relate because that is when the

uncertainty for that period is resolved, as these fees are not subject to clawback.

Investment Income (Loss), including Performance Allocations

Investment income (loss) represents the unrealized and realized gains and losses resulting from the Company’s equity

method investments, including any associated general partner performance allocations, and other principal investments,

including CLOs.

General partner performance allocations consist of the allocation of profits from certain of the funds to which the

Company is entitled (commonly known as carried interest).

For closed-end carry funds in the Global Private Equity and Global Credit segments, the Company is generally entitled to

a 20% allocation (or approximately 2% to 12.5% for most of the Carlyle AlpInvest segment carry fund vehicles) of the net

realized income or gain as a carried interest after returning the invested capital, the allocation of preferred returns of generally

7% to 9% and return of certain fund costs (generally subject to catch-up provisions as set forth in the fund limited partnership

agreement). These terms may vary on longer-dated funds, certain credit funds, and external co-investment vehicles. Carried

interest is recognized upon appreciation of the funds’ investment values above certain return hurdles set forth in each respective

partnership agreement. The Company recognizes revenues attributable to performance allocations based upon the amount that

would be due pursuant to the fund partnership agreement at each period end as if the funds were terminated at that date.

Accordingly, the amount recognized as investment income for performance allocations reflects the Company’s share of the

gains and losses of the associated funds’ underlying investments measured at their then-current fair values relative to the fair

values as of the end of the prior period. Because of the inherent uncertainty, these estimated values may differ significantly

from the values that would have been used had a ready market for the investments existed, and it is reasonably possible that the

difference could be material.

Carried interest is ultimately realized when: (i) an underlying investment is profitably disposed of, (ii) certain costs borne

by the limited partner investors have been reimbursed, (iii) the fund’s cumulative returns are in excess of the preferred return,

and (iv) the Company has decided to collect carry rather than return additional capital to limited partner investors. Realized

carried interest may be required to be returned by the Company in future periods if the fund’s investment values decline below

certain levels. When the fair value of a fund’s investments remains constant or falls below certain return hurdles, previously

recognized performance allocations are reversed. In all cases, each fund is considered separately in this regard, and for a given

fund, performance allocations can never be negative over the life of a fund. If upon a hypothetical liquidation of a fund’s

investments at their then-current fair values, previously recognized and distributed carried interest would be required to be

returned, a liability is established for the potential giveback obligation. As of March 31, 2026 and December 31, 2025, the

Company accrued$102.0 million and$72.8 million, respectively, for giveback obligations.

Principal investment income (loss) is realized when the Company redeems all or a portion of its investment or when the

Company receives or is due cash income, such as dividends or distributions. Unrealized principal investment income (loss)

results from the Company’s proportionate share of the investee’s unrealized earnings, including changes in the fair value of the

underlying investment, as well as the reversal of unrealized gain (loss) at the time an investment is realized. As it relates to the

Company’s investments in NGP (see Note 4, Investments), principal investment income includes the related amortization of the

basis difference between the Company’s carrying value of its investment and the Company’s share of underlying net assets of

the investee, as well as the compensation expense associated with compensatory arrangements provided by the Company to

employees of its equity method investee, and impairment charges.

Interest Income

Interest income is recognized when earned. For debt securities representing non-investment grade beneficial interests in

securitizations, the effective yield is determined based on the estimated cash flows of the security. Changes in the effective

yield of these securities due to changes in estimated cash flows are recognized on a prospective basis as adjustments to interest

income in future periods. Interest income earned by the Company is included in interest and other income in the accompanying

condensed consolidated statements of operations. Interest income of the Consolidated Funds was$161.8 million and$123.0

million for thethree months ended March 31, 2026 and 2025, respectively, and is included in interest and other income of

Consolidated Funds in the accompanying condensed consolidated statements of operations.

Credit Losses

The Company measures all expected credit losses for financial assets held at the reporting date in accordance with ASC

326, Financial Instruments—Credit Losses, based on historical experience, current conditions, and reasonable and supportable

forecasts. The Company assesses the collection risk characteristics of the outstanding amounts in its due from affiliates balance

into the following pools of receivables:

•Reimbursable fund expenses receivables,

•Management fee receivables,

•Incentive fee receivables,

•Transaction fee receivables,

•Portfolio fee receivables, and

•Notes receivable.

The Company generally utilizes either historical credit loss information or discounted cash flows to calculate expected

credit losses for each pool. The Company’s receivables are predominantly with its investment funds, which have low risk of

credit loss based on the Company’s historical experience. Historical credit loss data may be adjusted for current conditions and

reasonable and supportable forecasts, including the Company’s expectation of near-term realization based on the liquidity of the

affiliated investment funds.

Compensation and Benefits

Cash-Based Compensation and Benefits – Cash-based compensation and benefits includes salaries, bonuses

(discretionary awards and guaranteed amounts), performance payment arrangements, and benefits paid and payable to Carlyle

employees. Bonuses are accrued over the service period to which they relate.

Equity-Based Compensation – Compensation expense relating to the issuance of equity-based awards is measured at fair

value on the grant date. The compensation expense for awards that vest over a future service period is recognized over the

relevant service period on a straight-line basis. The compensation expense for awards that do not require future service is

recognized immediately. Cash settled equity-based awards are classified as liabilities and are re-measured at the end of each

reporting period. The compensation expense for awards that contain performance conditions is recognized when it is probable

that the performance conditions will be achieved. The compensation expense for awards that contain market conditions is based

on a grant-date fair value that factors in the probability that the market conditions will be achieved and is recognized over the

requisite service period on a straight-line basis.

Certain equity-based awards contain dividend-equivalent rights, which are subject to the same terms and conditions,

including with respect to vesting and settlement, that apply to the related award. Dividend-equivalents are accounted for as a

reclassification from retained earnings to additional paid-in capital at the time dividends are declared and do not result in

incremental compensation expense.

Equity-based awards issued to non-employees are generally recognized as general, administrative and other expenses,

except to the extent they are recognized as part of the Company’s equity method earnings because they are issued to employees

of equity method investees.

The Company recognizes equity-based award forfeitures in the period they occur as a reversal of previously recognized

compensation expense for awards that vest based on service and/or performance conditions. The reduction in compensation

expense is determined based on the specific awards forfeited during that period. Furthermore, the Company recognizes all

excess tax benefits and deficiencies as income tax benefit or expense in the condensed consolidated statements of operations.

For awards with a market condition (e.g., achievement of certain stock price hurdles) that are forfeited due to the market

condition not being achieved, the related equity-based compensation expense is not reversed.

Performance Allocations and Incentive Fee Related Compensation – A portion of the performance allocations and

incentive fees and certain other interests earned is due to employees and advisors of the Company. These amounts are

accounted for as profit sharing interests in compensation expense in a systematic and rational manner in conjunction with the

recognition of the related performance allocations and incentive fee revenue and, until paid, are recognized as a component of

the accrued compensation and benefits liability. The liability is measured assuming the hypothetical liquidation of the

associated funds’ underlying investments as of the measurement date. Accordingly, upon a reversal of performance allocations

or incentive fee revenue, the related compensation expense, if any, is also reversed. As any vesting requirement is accelerated

upon realization, the service period is not considered substantive when recording the liability based on the hypothetical

liquidation value. As of March 31, 2026 and December 31, 2025, the Company recorded a liability of$4.6 billion and

$5.1 billion, respectively, related to the portion of accrued performance allocations and incentive fees due to employees and

advisors, which was included in accrued compensation and benefits in the accompanying condensed consolidated balance

sheets.

Income Taxes

The Company is a corporation for U.S. federal income tax purposes and is subject to U.S. federal, state, and local

corporate income taxes. The Company is subject to periodic audit by U.S. federal, state, local, and foreign taxing authorities.

The interim provision for income taxes is generally calculated using an estimated annual effective tax rate applied to year-to-

date ordinary income in accordance with ASC 740, Income Taxes.

Non-controlling Interests

Non-controlling interests in consolidated entities represent the component of equity in consolidated entities held by third-

party investors. These interests are adjusted for general partner allocations which occur during the reporting period. Any change

in ownership of a subsidiary while the controlling financial interest is retained is accounted for as an equity transaction between

the controlling and non-controlling interests. Transaction costs incurred in connection with such changes in ownership of a

subsidiary are recorded as a direct charge to equity.

Earnings Per Common Share

The Company computes earnings per common share in accordance with ASC 260, Earnings Per Share. Basic earnings

per common share is calculated by dividing net income (loss) attributable to the common shares of the Company by the

weighted-average number of common shares outstanding for the period. Diluted earnings per common share reflects the

assumed conversion of all dilutive securities. The Company applies the treasury stock method to determine the dilutive

weighted-average common shares outstanding for certain equity-based compensation awards. For certain equity-based

compensation awards that contain performance or market conditions, the number of contingently issuable common shares is

included in diluted earnings per common share based on the number of common shares, if any, that would be issuable under the

terms of the awards if the end of the reporting period were the end of the contingency period, if the result is dilutive.

Fair Value of Financial Instruments

The underlying entities that the Company manages and invests in (and in certain cases, consolidates) are primarily

investment companies which account for their investments at estimated fair value.

The fair value measurement accounting guidance under ASC 820, Fair Value Measurement, establishes a hierarchical

disclosure framework which ranks the observability of market price inputs used in measuring financial instruments at fair value.

The observability of inputs is impacted by a number of factors, including the type of financial instrument, the characteristics

specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions

between market participants. Financial instruments with readily available quoted prices, or for which fair value can be measured

from quoted prices in active markets, will generally have a higher degree of market price observability and a lesser degree of

judgment applied in determining fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs

used in the determination of fair values, as follows:

Level I– inputs to the valuation methodology are quoted prices available in active markets for identical

instruments as of the reporting date. The type of financial instruments in this category include unrestricted

securities, such as equities and derivatives, listed in active markets. The Company does not adjust the quoted price

for these instruments, even in situations where the Company holds a large position and a sale could reasonably

impact the quoted price.

Level II – inputs to the valuation methodology are other than quoted prices in active markets, which are either

directly or indirectly observable as of the reporting date. The types of financial instruments in this category

include less liquid and restricted securities listed in active markets, securities traded in other than active markets,

government and agency securities, and certain over-the-counter derivatives where the fair value is based on

observable inputs.

Level III – inputs to the valuation methodology are unobservable and significant to overall fair value

measurement. The inputs into the determination of fair value require significant management judgment or

estimation. The types of financial instruments in this category include investments in privately-held entities, non-

investment grade residual interests in securitizations, collateralized loan obligations, and certain over-the-counter

derivatives where the fair value is based on unobservable inputs.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such

cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is

based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the

significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to

the financial instrument.

In certain cases, debt and equity securities (including corporate treasury investments) are valued on the basis of prices

from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the

value of a particular investment, pricing services may use certain information with respect to transactions in such investments,

quotations from dealers, pricing matrices, market transactions in comparable investments, and various relationships between

investments.

In the absence of observable market prices, the Company values its investments and its funds’ investments using

valuation methodologies applied on a consistent basis. For some investments little market activity may exist. Management’s

determination of fair value is then based on the best information available in the circumstances and may incorporate

management’s own assumptions and involve a significant degree of judgment, taking into consideration a combination of

internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks. Investments for

which market prices are not observable include private investments in the equity and debt of operating companies and real

assets, CLO investments and CLO loans payable, and fund investments. The valuation technique for each of these investments

is described below:

Investments in Operating Companies and Real Assets – The fair values of private investments in operating companies

and real assets are generally determined by reference to the income approach (including the discounted cash flow

method and the income capitalization method) and the market approach (including the comparable publicly traded

company method and the comparable transaction method). Valuations under these approaches are typically derived by

reference to investment-specific inputs (such as projected cash flows, earnings before interest, taxes, depreciation and

amortization (“EBITDA”), and net operating income) combined with market-based inputs (such as discount rates,

EBITDA multiples and capitalization rates). In many cases, the investment-specific inputs are unaudited at the time

received. Management may also adjust the market-based inputs to account for differences between the subject

investment and the companies, assets or investments used to derive the market-based inputs. Adjustments to

observable valuation measures are frequently made upon the initial investment to calibrate the initial investment

valuation to industry observable inputs. Such adjustments are made to align the investment to observable industry

inputs for differences in size, profitability, projected growth rates, geography, capital structure, and other factors as

applicable. The adjustments are then reviewed with each subsequent valuation to assess how the investment has

evolved relative to the observable inputs. Additionally, the investment may be subject to certain specific risks and/or

development milestones which are also taken into account in the valuation assessment. Option pricing models and

similar tools may also be considered but do not currently drive a significant portion of operating company or real asset

valuations and are used primarily to value warrants, derivatives, certain restrictions, and other atypical investment

instruments.

Credit-Oriented Investments –The fair values of credit-oriented investments (including corporate treasury

investments) are generally determined on the basis of prices between market participants provided by reputable dealers

or pricing services. In determining the value of a particular investment, pricing services may use certain information

with respect to transactions in such investments, quotations from dealers, pricing matrices, market transactions in

comparable investments, and various relationships between investments. Specifically, for investments in distressed

debt and corporate loans and bonds, the fair values are generally determined by valuations of comparable investments.

In some instances, the Company may utilize other valuation techniques, including the discounted cash flow method.

CLO Investments and CLO Loans Payable – The Company measures the financial liabilities of its consolidated CLOs

based on the fair value of the financial assets of its consolidated CLOs, as the Company believes the fair value of the

financial assets are more observable. The fair values of the CLO loan and bond assets are primarily based on

quotations from reputable dealers or relevant pricing services. In situations where valuation quotations are unavailable,

the assets are valued based on similar securities, market index changes, and other factors. The Company performs

certain procedures to ensure the reliability of the quotations from pricing services for its CLO assets and CLO

structured asset positions, which generally includes corroborating prices with a discounted cash flow analysis.

Generally, the loan and bond assets of the CLOs are not publicly traded and are classified as Level III. The fair values

of the CLO structured asset positions are determined based on both discounted cash flow analyses and third-party

quotes. Those analyses consider the position size, liquidity, current financial condition of the CLOs, the third-party

financing environment, reinvestment rates, recovery lags, discount rates, and default forecasts and are compared to

broker quotations from market makers and third-party dealers.

The Company measures the CLO loan payables held by third-party beneficial interest holders on the basis of the fair

value of the financial assets of the CLO and the beneficial interests held by the Company. The Company continues to

measure the CLO loans payable that it holds at fair value based on relevant pricing services or discounted cash flow

analyses, as described above.

Fund Investments– The Company’s primary and secondary investments in external funds are generally valued as its

proportionate share of the most recent net asset value provided by the third-party general partners of the underlying

fund partnerships, adjusted for subsequent cash flows received from or distributed to the underlying fund partnerships.

The Company also adjusts for any changes in the market prices of public securities held by the underlying fund

partnerships and may also apply a market adjustment to reflect the estimated change in the fair value of the underlying

fund partnerships’ non-public investments from the date of the most recent net asset value provided by the third-party

general partners.

Investment professionals with responsibility for the underlying investments are responsible for preparing the investment

valuations pursuant to the policies, methodologies, and templates prepared by the Company’s valuation group, which is a team

made up of dedicated valuation professionals reporting to the Company’s Chief Accounting Officer. The valuation group is

responsible for maintaining the Company’s valuation policy and related guidance, templates, and systems that are designed to

be consistent with the guidance found in ASC 820. These valuations, inputs, and preliminary conclusions are reviewed by the

fund management teams. The valuations are then reviewed and approved by the respective fund valuation subcommittees,

which include the respective fund head(s), segment head, Chief Financial Officer, and Chief Accounting Officer, as well as

members of the valuation group. The valuation group compiles the aggregate results and significant matters and presents them

for review and approval by the global valuation committee, which includes, among others, the Company’s Chief Financial

Officer, Chief Accounting Officer, and the business segment heads, and is observed by the Chief Compliance Officer, the Chief

Audit Executive, the Chief Risk Officer, the Company’s Audit Committee, and others. Additionally, each quarter a sample of

valuations are reviewed by external valuation firms. Valuations of the funds’ investments are used in the calculation of accrued

performance allocations.

Investments, at Fair Value

Investments include (i) the Company’s ownership interests (typically general partner interests) in the Funds, including the

Company’s investment in Fortitude held through Carlyle FRL (which are accounted for as equity method investments), (ii) the

Company’s investment in NGP (which is accounted for as an equity method investment), (iii) the investments held by the

Consolidated Funds (which are presented at fair value in the Company’s condensed consolidated financial statements), and (iv)

certain credit-oriented investments, including investments in the CLOs and the common shares of Carlyle Secured Lending,

Inc. (“CGBD,” see Note 4, Investments, to this Quarterly Report on Form 10-Q and Note 9, Related Party Transactions, to our

Annual Report on Form 10-K for the year ended December 31, 2025 for more information), which are accounted for as trading

securities.

Upon the sale of a security or other investment, the realized net gain or loss is computed on a weighted average cost

basis, with the exception of the investments held by the CLOs, which compute the realized net gain or loss on a first in, first out

basis. Securities transactions are recorded on a trade date basis.

Equity Method Investments

The Company accounts for all investments in which it has or is otherwise presumed to have significant influence,

including investments in unconsolidated investment funds and the Company’s investment in NGP, using the equity method of

accounting. The carrying value of equity method investments is determined based on amounts invested by the Company,

adjusted for the equity in earnings or losses of the investee (including performance allocations) allocated based on the

respective partnership agreement, less distributions received. The Company evaluates its equity method investments for

impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be

recoverable.

Cash and Cash Equivalents

Cash and cash equivalents include cash held at banks and cash held for distributions, including investments with original

maturities of less than three months when purchased. The Company is subject to credit risk should a financial institution be

unable to fulfil its obligations and if balances held at a financial institution exceed insured limits.

Cash and Cash Equivalents Held at Consolidated Funds

Cash and cash equivalents held at Consolidated Funds consists of cash and cash equivalents held by the Consolidated

Funds, which, although not legally restricted, is not available to fund the general liquidity needs of the Company.

Restricted Cash

Restricted cash primarily represents cash held by the Company’s foreign subsidiaries due to certain government

regulatory capital requirements as well as certain amounts held on behalf of Carlyle funds. As of March 31, 2026 and

December 31, 2025, the Company held restricted cash of$9.5 million and$3.4 million, respectively, which are included in

Deposits and other in the condensed consolidated balance sheets.

Corporate Treasury Investments

Corporate treasury investments represent investments in U.S. Treasury and government agency obligations, commercial

paper, certificates of deposit, other investment grade securities and other investments with original maturities of greater than

three months when purchased. These investments are accounted for as trading securities in which changes in the fair value of

each investment are recorded through investment income (loss). Any interest earned on debt investments is recorded through

interest and other income.

Derivative Instruments

The Company uses derivative instruments primarily to reduce its exposure to changes in foreign currency exchange rates.

Derivative instruments are recognized at fair value in the condensed consolidated balance sheets with changes in fair value

recognized in the condensed consolidated statements of operations for all derivatives not designated as hedging instruments.

Securities Sold Under Agreements to Repurchase

As it relates to certain European CLOs sponsored by the Company, securities sold under agreements to repurchase

(“Repurchase Agreements”) are accounted for as collateralized financing transactions. The Company provides securities to

counterparties to collateralize amounts borrowed under Repurchase Agreements on terms that permit the counterparties to

repledge or resell the securities to others. As of March 31, 2026,$337.2 million of securities were transferred to counterparties

under Repurchase Agreements and are included within investments in the condensed consolidated balance sheets. Cash

received under Repurchase Agreements is recognized as a liability within debt obligations in the condensed consolidated

balance sheets. See Note 5, Borrowings, for additional information.

Fixed Assets

Fixed assets consist of furniture, fixtures and equipment, leasehold improvements, computer hardware and software, and

fractional shares in corporate aircraft, and are stated at cost, less accumulated depreciation and amortization. Depreciation is

recognized on a straight-line method over the assets’ estimated useful lives, which for leasehold improvements are the lesser of

the lease terms or the life of the asset, andthree toseven years for other fixed assets. Fixed assets are reviewed for impairment

whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Leases

The Company accounts for its leases in accordance with ASC 842, Leases, and recognizes a lease liability and right-of-

use (“ROU”) asset in the condensed consolidated balance sheets for contracts that it determines are leases or contain a lease.

The Company’s leases primarily consist of operating leases for office space in various countries around the world. The

Company also has operating leases for office equipment and vehicles, which are not significant. The Company does not

separate non-lease components from lease components for its office space and equipment operating leases and instead accounts

for each separate lease component and its associated non-lease component as a single lease component. ROU assets represent

the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to

make lease payments arising from the leases. The Company’s ROU assets and lease liabilities are recognized at lease

commencement based on the present value of lease payments over the lease term. Lease ROU assets include initial direct costs

incurred by the Company and are presented net of deferred rent and lease incentives. Absent an implicit interest rate in the

lease, the Company uses its incremental borrowing rate, adjusted for the effects of collateralization, based on the information

available at commencement in determining the present value of lease payments. The Company’s lease terms may include

options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. Lease

expense for lease payments is recognized on a straight-line basis over the lease term. Lease ROU assets are reviewed for

impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.

The Company does not recognize a lease liability or ROU asset on the balance sheet for short-term leases. Instead, the

Company recognizes short-term lease payments as an expense on a straight-line basis over the lease term. A short-term lease is

defined as a lease that, at the commencement date, has a lease term of 12 months or less and does not include an option to

purchase the underlying asset that the lessee is reasonably certain to exercise. When determining whether a lease qualifies as a

short-term lease, the Company evaluates the lease term and the purchase option in the same manner as all other leases.

In 2026, the Company entered into an operating lease agreement for office space in New York City, which has a term of

10 years and is expected to commence during 2028. The total contractual minimum lease payments over the term of the lease is

approximately$255 million. The related ROU asset and operating lease liability will be recorded on the lease commencement

date and are not reflected on the Company’s condensed consolidated balance sheets as of March 31, 2026.

Intangible Assets and Goodwill

The Company’s intangible assets consist of acquired contractual rights to earn future fee income, including management

and advisory fees, customer relationships, and acquired trademarks. Finite-lived intangible assets are amortized over their

estimated useful lives, which range from four toeight years, and are reviewed for impairment whenever events or changes in

circumstances indicate that the carrying amount of the asset may not be recoverable. Intangible asset amortization expense was

$32.8 million and$32.6 million for thethree months ended March 31, 2026 and 2025, respectively, and is included in general,

administrative, and other expenses in the condensed consolidated statements of operations. Certain intangible assets are held by

entities of which the functional currency is not the U.S. dollar. Any corresponding currency translation is recorded in

accumulated other comprehensive income (loss).

Goodwill represents the excess of cost over the identifiable net assets of businesses acquired and is recorded in the

functional currency of the acquired entity. Goodwill is recognized as an asset and is reviewed for impairment annually as of

October 1 and between annual tests when events and circumstances indicate that impairment may have occurred.

The Company recordedno impairment losses of intangible assets or goodwill during thethree months ended March 31,

2026 and 2025.

Deferred Revenue

Deferred revenue represents management fees and other revenue received prior to the balance sheet date, which has not

yet been earned. Deferred revenue also includes transaction and portfolio advisory fees received by the Company that are

required to offset fund management fees pursuant to the related fund agreements.

Accumulated Other Comprehensive Income (Loss)

The Company’s accumulated other comprehensive income (loss) comprise foreign currency translation adjustments and

gains and losses on defined benefit plans sponsored by AlpInvest. The components of accumulated other comprehensive

income (loss) as of March 31, 2026 and December 31, 2025 were as follows:

Foreign Currency Translation

Non-U.S. dollar denominated assets and liabilities are remeasured at period-end rates of exchange, and the condensed

consolidated statements of operations are remeasured at rates of exchange in effect throughout the period. Foreign currency

gains (losses) resulting from transactions outside of the functional currency of an entity of$4.0 million and$(4.3) million for

thethree months ended March 31, 2026 and 2025, respectively, are included in general, administrative and other expenses in

the condensed consolidated statements of operations.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial

Accounting Standards Board (“FASB”). ASUs not listed below were assessed and either determined to be not applicable or

expected to have minimal impact on the Company’s condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, which requires

disaggregated disclosures of certain categories of expenses on an annual and interim basis including employee compensation,

depreciation, and intangible asset amortization for each income statement line item that contains those expenses. The guidance

is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The

Company is currently evaluating the impact of adopting this guidance on its condensed consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software,

which clarifies the threshold for capitalizing internal-use software costs to be based on when (i) management has authorized and

committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used

to perform the function intended. The guidance is effective for annual periods beginning after December 15, 2027 and interim

periods within those annual reporting periods. Early adoption is permitted, and the amendments in this update may be applied

on a prospective, retrospective or modified basis. The Company is currently evaluating the impact of adopting this guidance on

its condensed consolidated financial statements.

3. Fair Value Measurement

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the

fair value hierarchy levels as disclosed in Note 2, Summary of Significant Accounting Policies, as of March 31, 2026:

(1)This balance excludes$2.4 billion of Investments of Consolidated Funds that are included in Investments measured at net asset

value, which relate to certain consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.

(2)This balance includes $726.4 million related to investments that have been bridged by a subsidiary of the Company to investment

funds and are accounted for as consolidated VIEs as of March 31, 2026. The Company’s subsidiary, which is accounted for as a

consolidated VIE, has entered into warehouse agreements with certain funds to transfer certain of these investments at a price agreed

upon by the parties, which may differ from fair value.

(3)The Level III balance excludes$98.3 million related tofour corporate investments in equity securities which the Company has

elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to

ASC 321, Investments–Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is

excluded from the tabular Level III rollforward disclosures.

(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial

assets, less (i) the fair value of any beneficial interest held by the Company and (ii) the carrying value of any beneficial interests that

represent compensation for services.

(5)Loans payable of Consolidated Funds balance excludes$940.9 million of senior notes measured at amortized cost and a

$51.0 million revolving credit balance, which relate to certain consolidated investment fund of funds in the Company’s Carlyle

AlpInvest segment.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the

above fair value hierarchy levels as of December 31, 2025:

(1)This balance excludes$1.3 billion of Investments of Consolidated Funds that are included in Investments measured at net asset

value, which relate to certain consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.

(2)This balance includes$989.4 million related to investments that have been bridged by a subsidiary of the Company to investment

funds and are accounted for as consolidated VIEs as of December 31, 2025. The Company’s subsidiary, which is accounted for as a

consolidated VIE, has entered into warehouse agreements with certain funds to transfer certain of these investments at a price agreed

upon by the parties, which may differ from fair value.

(3)The Level III balance excludes$63.0 million related to three corporate investments in equity securities which the Company has

elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to

ASC 321, Investments–Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is

excluded from the tabular Level III rollforward disclosures.

(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial

assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that

represent compensation for services.

(5)Loans payable of Consolidated Funds balance excludes a$939.4 million of senior notes measured at amortized cost and a

$63.0 million revolving credit balance, which relate to certain consolidated investment fund of funds in the Company’s Carlyle

AlpInvest segment.

The changes in financial instruments measured at fair value for which the Company has used Level III inputs to

determine fair value are as follows (Dollars in millions):

(1)As a result of the initial consolidation oftwo funds during thethree months ended March 31, 2026.

(1)As a result of the initial consolidation ofone fund during thethree months ended March 31, 2025.

(2)Represents the exchange of the BDC Preferred Shares, which were valued using Level III inputs, for common shares of CGBD, which

were valued using Level I inputs. See Note 9, Related Party Transactions, to our Annual Report on Form 10-K for the year ended

December 31, 2025 for more information.

(1)As a result of the initial consolidation oftwo funds during thethree months ended March 31, 2026, and the initial

consolidation ofone fund during thethree months ended March 31, 2025.

Realized and unrealized gains and losses included in earnings for Level III investments for investments in CLOs and

other investments are included in investment income (loss), and such gains and losses for investments of Consolidated Funds

and loans payable of the Consolidated Funds are included in Net investment income of Consolidated Funds in the condensed

consolidated statements of operations.

Gains and losses included in other comprehensive income for all Level III financial asset and liabilities are included in

accumulated other comprehensive loss and non-controlling interests in consolidated entities.

The following table summarizes quantitative information about the Company’s Level III inputs as of March 31, 2026:

(1)Fair value approximates transaction price that was in close proximity to the reporting date.

(2)Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,

less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent

compensation for services.

The following table summarizes quantitative information about the Company’s Level III inputs as of December 31, 2025:

(1)Fair value approximates transaction price that was in close proximity to the reporting date.

(2)Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,

less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent

compensation for services.

4. Investments

Investments consist of the following:

Accrued Performance Allocations

The components of accrued performance allocations are as follows:

Approximately 16% and 24% of accrued performance allocations at March 31, 2026 and December 31, 2025,

respectively, were related to Carlyle Partners VII, L.P., one of the Company’s Global Private Equity funds.

Accrued performance allocations are shown gross of the Company’s accrued performance allocations and incentive fee

related compensation (see Note 6, Accrued Compensation and Benefits), and accrued giveback obligations, which are

separately presented in the condensed consolidated balance sheets. The components of the accrued giveback obligations are as

follows:

Principal Equity Method Investments, Excluding Performance Allocations

The Company’s principal equity method investments (excluding performance allocations) include its fund investments in

Global Private Equity, Global Credit, and Carlyle AlpInvest typically as general partner interests, and its investments in

Fortitude through a Carlyle-affiliated fund (included within Global Credit) and NGP (included within Global Private Equity),

which are not consolidated. Principal investments are related to the following segments:

(1)The balance includes$652.4 million and$616.0 million as of March 31, 2026 and December 31, 2025, respectively, related to the

Company’s equity method investments in NGP.

(2)The balance includes$729.2 million and$722.4 million as of March 31, 2026 and December 31, 2025, respectively, related to the

Company’s investment in Fortitude.

Investment in Fortitude

Carlyle FRL, L.P. (“Carlyle FRL”), a Carlyle-affiliated investment fund, holds a 38.5% interest in Fortitude Holdings to

FGH Parent, L.P. (“FGH Parent” or “Fortitude”), an insurance and reinsurance company. The Company indirectly owns 10.5%

of Fortitude, and Carlyle FRL and other strategic third-party investors collectively hold a 97.5% interest in Fortitude. As of

March 31, 2026, the carrying value of the Company’s investment in Carlyle FRL, which is an investment company that

accounts for its investment in Fortitude at fair value, was$729.2 million, relative to equity invested of$666.8 million.

The Company has an asset management relationship with Fortitude pursuant to which Fortitude committed to allocate

assets in asset management strategies and vehicles of the Company and its affiliates. As of March 31, 2026, Fortitude, its

affiliates and certain Fortitude reinsurance counterparties have committed approximately$25.2 billion of capital to-date to

various Carlyle strategies. The Company has a strategic advisory services agreement in place with certain subsidiaries of

Fortitude through Carlyle Insurance Solutions Management L.L.C. (“CISM”), an investment adviser. Under the agreement,

CISM provides Fortitude with certain services, including business development and growth, transaction origination and

execution, and capital management services in exchange for a recurring management fee based on Fortitude’s general account

assets, which adjusts within an agreed range based on Fortitude’s overall profitability.

Investment in NGP

The Company has equity interests in NGP Management Company, L.L.C. (“NGP Management”), the general partners of

certain carry funds advised by NGP, and principal investments in certain NGP funds as described below. These investments are

included in the Global Private Equity segment. NGP Management serves as the investment advisor to the NGP Energy Funds.

The Company does not control NGP and accounts for its investments in NGP under the equity method of accounting.

The Company’s investments in NGP as of March 31, 2026 and December 31, 2025 are as follows:

See Note 4, Investments, to our Annual Report on Form 10-K for the year ended December 31, 2025 for additional

information regarding the restructuring of the terms of the Company’s strategic investment in NGP (the “Restructuring”). As a

result of the Restructuring, thethree months ended March 31, 2025 included a$92.5 million impairment of the Company’s

investment in NGP Management and a$38 million reduction in accrued performance allocations, which were recorded in

Principal investment income (loss) in the condensed consolidated statements of operations and excluded from Distributable

Earnings, as defined in Note 14, Segment Reporting. The Company amortizes basis differences established in connection with

the Restructuring as a reduction to Principal investment income over their estimated useful lives.

Investment in NGP Management. The Company’s equity interests in NGP Management entitle the Company to an

allocation of income equal to 55.0% of the management fee related revenues earned by existing funds prior to the Restructuring

that held an initial closing after December 31, 2024, and up to 55.0% of management fee related revenues on future NGP funds

subsequent to the Restructuring in the aggregate, which are based on a sliding scale, including all management fees being

retained by NGP for the years 2025 through 2028 on such future NGP funds. The Company records investment income (loss)

for its equity income allocation from NGP management fee related revenues and also records its share of any allocated expenses

from NGP Management, as well as expenses associated with the compensatory elements of the investment, and any impairment

charges. The net investment income (loss) recognized in the Company’s condensed consolidated statements of operations for

thethree months ended March 31, 2026 and 2025 were as follows:

Management fee related revenues from NGP Management were primarily driven by NGP XII, NGP XIII, and NGP XI

during thethree months ended March 31, 2026 and 2025. These funds calculate management fees as 1.5% of the limited

partners’ commitments less any return of capital or write-offs during the investment period. Following the investment period,

the basis on which fund management fees are generally calculated is further reduced by a reserve for future management fees

and operating costs.

Investment in the General Partners of NGP Carry Funds. The Company’s investment in the general partners of the NGP

Carry Funds entitle it to up to 47.5% of performance allocations received by NGP Fund general partners. The Company records

its equity income allocation from NGP performance allocations in principal investment income (loss) from equity method

investments rather than performance allocations in its condensed consolidated statements of operations. The Company

recognized net investment earnings (losses) related to these performance allocations of$46.5 million and$(28.5) million for the

three months ended March 31, 2026 and 2025, respectively, in its condensed consolidated statements of operations.

Principal Investments in NGP Funds. The Company also holds principal investments in the NGP Carry Funds. The

Company recognized net investment earnings (losses) related to principal investment income (loss) in its condensed

consolidated statements of operations of$6.4 million and$1.3 million for thethree months ended March 31, 2026 and 2025,

respectively.

Principal Investments in CLOs and Other Investments

Principal investments in CLOs as of March 31, 2026 and December 31, 2025 were$309.9 million and$349.0 million,

respectively, and consisted of investments in CLO senior and subordinated notes. A portion of the Company’s principal

investments in CLOs is collateral to CLO term loans (see Note 5, Borrowings). As of March 31, 2026 and December 31, 2025,

other investments included the Company’s investment in common shares of CGBD at fair value of$34.1 million and

$37.5 million, respectively.

Investment Income (Loss)

The components of investment income (loss) are as follows:

The performance allocations included in revenues are derived from the following segments:

The following tables summarize the funds that are the primary drivers of performance allocations for thethree months

ended March 31, 2026 and 2025, as well as the total revenue recognized, including performance allocations as well as fund

management fees and principal investment income:

Carlyle’s income (loss) from its principal equity method investments consists of:

Investments of Consolidated Funds

The Company consolidates the financial positions and results of operations of certain CLOs in which it is the primary

beneficiary. During thethree months ended March 31, 2026, the Company became the primary beneficiary oftwo additional

CLOs. Investments in Consolidated Funds as of March 31, 2026 and December 31, 2025 also included$726.4 million and

$989.4 million, respectively, related to investments that have been bridged by the Company to investment funds in the Global

Private Equity and Carlyle AlpInvest segments that are accounted for as consolidated VIEs.

There were no individual investments with a fair value greater than five percent of the Company’s total assets for any

period presented.

Interest and Other Income of Consolidated Funds

The components of interest and other income of Consolidated Funds are as follows:

Net Investment Income (Loss) of Consolidated Funds

Net investment income (loss) of Consolidated Funds includes net realized gains (losses) from sales of investments and

unrealized gains (losses) resulting from changes in fair value of the Consolidated Funds’ investments. The components of Net

investment income (loss) of Consolidated Funds are as follows:

The following table presents realized and unrealized gains (losses) earned from investments of the Consolidated Funds:

5. Borrowings

The Company borrows and enters into credit agreements for its general operating and investment purposes. The

Company’s debt obligations consist of the following:

Senior Credit Facility

As of March 31, 2026, the senior credit facility included$1.0 billion in a revolving credit facility, which was amended in

May 2025 to extend the maturity date from April 29, 2027 to May 29, 2030. The Company’s borrowing capacity is subject to

the ability of the financial institutions in the banking syndicate to fulfill their respective obligations under the revolving credit

facility. Principal amounts outstanding under the revolving credit facility accrue interest, at the option of the borrowers, either

(a) at an alternate base rate plus an applicable margin not to exceed 0.50% per annum, or (b) at SOFR (or similar benchmark

rate for non-U.S. dollar borrowings) plus a 0.10% adjustment and an applicable margin not to exceed 1.50% per annum (at

March 31, 2026, the interest rate was 4.76%). The Company madeno borrowings under the revolving credit facility during the

three months ended March 31, 2026 and 2025, and there wasno amount outstanding as of March 31, 2026.

Global Credit Revolving Credit Facility

Certain subsidiaries of the Company are parties to a revolving line of credit, primarily intended to support certain lending

activities within the Global Credit segment. As currently amended, the Global Credit Revolving Credit Facility provides for a

revolving line of credit with a capacity of$300 million, which matures in September 2027, and a second revolving line of credit

with a capacity of$200 million, which was amended in August 2025 to extend the maturity date to August 19, 2026. The

Company’s borrowing capacity is subject to the ability of the financial institutions in the banking syndicate to fulfill their

respective obligations under the Global Credit Revolving Credit Facility. Principal amounts outstanding accrue interest at

applicable SOFR or Eurocurrency rates plus an applicable margin of 2.00% or an alternate base rate plus an applicable margin

of 1.00%. During thethree months ended March 31, 2026 and 2025, the Company madeno borrowings under the Global Credit

Revolving Credit Facility. As of March 31, 2026, there wasno borrowing outstanding under the Global Credit Revolving Credit

Facility.

CLO Borrowings

For certain of the Company’s CLOs, the Company finances a portion of its investment in the CLOs through the proceeds

received from term loans and other financing arrangements with financial institutions. The following table provides information

regarding outstanding CLO borrowings as of March 31, 2026 and December 31, 2025 (Dollars in millions):

The CLO term loans are secured by the Company’s investments in the respective CLO, have a general unsecured interest

in the Carlyle entity that manages the CLO, and generally do not have recourse to any other Carlyle entity. Interest expense for

thethree months ended March 31, 2026 and 2025 was$4.2 million and$3.8 million, respectively. The fair value of the

outstanding balance of the CLO term loans at March 31, 2026 approximated par value based on current market rates for similar

debt instruments. These CLO term loans are classified as Level III within the fair value hierarchy.

CLO Repurchase Agreements

The Company is party to two master credit facility agreements (the “CLO Financing Facilities”) to finance a portion of

the risk retention investments in certain European CLOs managed by the Company. Each transaction entered into under the

CLO Financing Facilities will bear interest at a rate based on the weighted average effective interest rate of each class of

securities that have been sold plus a spread to be agreed upon by the parties. As of March 31, 2026,€292.2 million

($337.2 million) was outstanding under the CLO Financing Facilities. Additional borrowings may be made on terms agreed

upon by the Company and the counterparty subject to the terms and conditions of the CLO Financing Facilities.

Each transaction entered into under the CLO Financing Facilities provides for payment netting and, in the case of a

default or similar event with respect to the counterparty to the CLO Financing Facilities, provides for netting across

transactions. Generally, upon a counterparty default, the Company can terminate all transactions under the CLO Financing

Facilities and offset amounts it owes in respect of any one transaction against collateral, if any, or other amounts it has received

in respect of any other transactions under the CLO Financing Facilities; provided, however, that in the case of certain defaults,

the Company may only be able to terminate and offset solely with respect to the transaction affected by the default. During the

term of a transaction entered into under the CLO Financing Facilities, the Company will deliver cash or additional securities

acceptable to the counterparty if the securities sold are in default. Upon termination of a transaction, the Company will

repurchase the previously sold securities from the counterparty at a previously determined repurchase price. The CLO

Financing Facilities may be terminated at any time upon certain defaults or circumstances agreed upon by the parties.

The Repurchase Agreements may result in credit exposure in the event the counterparty to the transaction is unable to

fulfill its contractual obligations. The Company minimizes the credit risk associated with these activities by monitoring

counterparty credit exposure and collateral values. Other than margin requirements, the Company is not subject to additional

terms or contingencies which would expose the Company to additional obligations based upon the performance of the securities

pledged as collateral.

Senior Notes

The Company and certain indirect subsidiaries of the Company have issued long term borrowings in the form of senior

notes, on which interest is payable semi-annually in arrears. The following table provides information regarding these senior

notes (Dollars in millions):

(1)Including accrued interest. Fair value is based on indicative quotes and the notes are classified as Level II within the fair

value hierarchy.

(2)Issued in September 2019 at 99.841% of par.

(3)Issued in September 2025 at 99.767% of par.

(4)Issued$400.0 million in aggregate principal at 99.583% of par in March 2013. An additional$200.0 million in aggregate

principal was issued at 104.315% of par in March 2014, and is treated as a single class with the outstanding$400.0 million

in senior notes previously issued.

(5)Issued in September 2018 at 99.914% of par.

The issuers may redeem the senior notes, in whole at any time or in part from time to time, at a price equal to the greater

of (i)100% of the principal amount of the notes being redeemed and (ii) the sum of the present values of the remaining

scheduled payments of principal and interest on any notes being redeemed (less interest accrued to the date of redemption)

discounted to the redemption date on a semiannual basis at the Treasury Rate plus 40 basis points (30 basis points in the case of

the 3.500% senior notes and 20 basis points in the case of the 5.050% senior notes), plus in each case accrued and unpaid

interest on the principal amounts being redeemed.

Subordinated Notes

In May 2021, an indirect subsidiary of the Company issued$435.0 million aggregate principal amount of 4.625%

Subordinated Notes due May 15, 2061 (the “Subordinated Notes”), on which interest is payable quarterly accruing from May

11, 2021. In June 2021, an additional$65.0 million aggregate principal amount of these Subordinated Notes were issued and

are treated as a single series with the already outstanding$435.0 million aggregate principal amount. The Subordinated Notes

are unsecured and subordinated obligations of the issuer, and are fully and unconditionally guaranteed (the “Guarantees”),

jointly and severally, on a subordinated basis, by the Company, each of the Carlyle Holdings partnerships, and CG Subsidiary

Holdings L.L.C., an indirect subsidiary of the Company (collectively, the “Guarantors”). The Consolidated Funds are not

guarantors, and as such, the assets of the Consolidated Funds are not available to service the Subordinated Notes under the

Guarantee. The Subordinated Notes may be redeemed at the issuer’s option, in whole or in part, at any time and from time to

time on or after June 15, 2026, prior to their stated maturity, at a redemption price equal to their principal amount plus any

accrued and unpaid interest to, but excluding, the date of redemption. If interest due on the Subordinated Notes is deemed to no

longer be deductible in the U.S., a “Tax Redemption Event,” the Subordinated Notes may be redeemed, in whole, but not in

part, within 120 days of the occurrence of such event at a redemption price equal to their principal amount plus accrued and

unpaid interest to, but excluding, the date of redemption. In addition, the Subordinated Notes may be redeemed, in whole, but

not in part, at any time prior to May 15, 2026, within 90 days of the rating agencies determining that the Subordinated Notes

should no longer receive partial equity treatment pursuant to the rating agency’s criteria, a “rating agency event,” at a

redemption price equal to 102% of their principal amount plus any accrued and unpaid interest to, but excluding, the date of

redemption.

As of March 31, 2026 and December 31, 2025, the fair value of the Subordinated Notes was$350.0 million and

$342.0 million, respectively. Fair value is based on active market quotes and the notes are classified as Level I within the fair

value hierarchy. For both thethree months ended March 31, 2026 and 2025, the Company incurred$5.9 million of interest

expense on the Subordinated Notes.

Debt Covenants

The Company is subject to various financial covenants under its loan agreements including, among other items,

maintenance of a minimum amount of management fee-earning assets. The Company is also subject to various non-financial

covenants under its loan agreements and the indentures governing its senior notes. The Company was in compliance with all

financial and non-financial covenants under its various loan agreements as of March 31, 2026.

Loans Payable of Consolidated Funds

Loans payable of Consolidated Funds primarily represent amounts due to holders of debt securities issued by the CLOs.

As of March 31, 2026 and December 31, 2025, the following borrowings were outstanding (Dollars in millions):

(1)Borrowing Outstanding as of March 31, 2026 and December 31, 2025 included$940.9 million and$939.9 million, respectively, of

senior secured notes that are measured at amortized cost, which approximate fair value. These senior secured notes were classified as

Level III within the fair value hierarchy.

(2)Fair Value as of March 31, 2026 and December 31, 2025 reflects the amortized cost of outstanding revolving credit balances which

approximates fair value.

(3)The subordinated notes do not have contractual interest rates, but instead receive distributions from the excess cash flows of the

CLOs.

Loans payable of the CLOs are collateralized by the assets held by the CLOs and the assets of one CLO may not be used

to satisfy the liabilities of another. This collateral consisted of cash and cash equivalents, corporate loans, corporate bonds and

other securities. As of March 31, 2026 and December 31, 2025, the fair value of the CLO assets was$12.0 billion and$11.0

billion, respectively.

6. Accrued Compensation and Benefits

Accrued compensation and benefits consist of the following:

The following table presents realized and unrealized performance allocations and incentive fee related compensation:

7. Commitments and Contingencies

Capital Commitments

The Company and its unconsolidated affiliates have unfunded commitments totaling$3.9 billion as of March 31, 2026, of

which approximately$3.1 billion is subscribed individually by senior Carlyle professionals, advisors and other professionals. In

addition to these unfunded commitments, the Company may from time to time exercise its right to purchase additional interests

in its investment funds that become available in the ordinary course of their operations.

Under the Carlyle Global Capital Markets platform, certain subsidiaries of the Company may act as an underwriter,

syndicator or placement agent for security offerings and loan originations. The Company earns fees in connection with these

activities and bears the risk of the sale of such securities and placement of such loans, which may be longer dated. As of

March 31, 2026, the Company hadno material commitments related to the origination and syndication of loans and securities

under the Carlyle Global Capital Markets platform.

Guaranteed Loans

From time to time, the Company or its subsidiaries may enter into agreements to guarantee certain obligations of the

investment funds related to, for example, credit facilities or equity commitments. Certain consolidated subsidiaries of the

Company are the guarantors of revolving credit facilities for certain funds in the Carlyle AlpInvest segment. The guarantee is

limited to the lesser of the total amount drawn under the credit facilities or the total of net asset value of the guarantor

subsidiaries plus any uncalled capital of the applicable general partner. The outstanding balances are secured by uncalled capital

commitments from the underlying funds and the Company believes the likelihood of any material funding under this guarantee

to be remote. As of March 31, 2026, the Company hadno material outstanding guarantees under the credit facilities.

On February 25, 2026, the Company entered into an agreement pursuant to which it provided support for a credit facility

of a certain fund in the Global Credit segment. The maximum aggregate amount that could be funded under this agreement was

approximately$120.0 million as of March 31, 2026. The Company has not funded any amounts under this agreement to date

and believes the likelihood of any material funding to be remote.

Contingent Obligations

Giveback

A liability for potential repayment of previously received performance allocations of$102.0 million at March 31, 2026

was shown as accrued giveback obligations in the condensed consolidated balance sheets, representing the giveback obligation

that would need to be paid if the funds were liquidated at their current fair values at March 31, 2026. However, the ultimate

giveback obligation, if any, generally is not paid until the end of a fund’s life or earlier if the giveback becomes fixed and early

payment is agreed upon by the fund’s partners (see Note 2, Summary of Significant Accounting Policies). The Company had

$34.6 million and$24.2 million of unbilled receivables from former and current employees and senior Carlyle professionals as

of March 31, 2026 and December 31, 2025, respectively, related to giveback obligations. Any such receivables are

collateralized by investments made by individual senior Carlyle professionals and employees in Carlyle-sponsored funds. In

addition,$153.8 million and$151.5 million have been withheld from distributions of carried interest to senior Carlyle

professionals and employees for potential giveback obligations as of March 31, 2026 and December 31, 2025, respectively.

Such amounts are held on behalf of the respective current and former Carlyle employees to satisfy any givebacks they may owe

and are held by entities not included in the accompanying condensed consolidated balance sheets. Current and former senior

Carlyle professionals and employees are personally responsible for their giveback obligations. As of March 31, 2026,

approximately$40.8 million of the Company’s accrued giveback obligation is the responsibility of various current and former

senior Carlyle professionals and other former limited partners of the Carlyle Holdings partnerships, and the net accrued

giveback obligation attributable to the Company is$61.2 million.

If, at March 31, 2026, all of the investments held by the Company’s Funds were deemed worthless, a possibility that

management views as remote, the amount of realized and distributed carried interest subject to potential giveback would be

$1.5 billion, on an after-tax basis where applicable, of which approximately$0.5 billion would be the responsibility of current

and former senior Carlyle professionals.

Other

In April 2026, in connection with an investment fund that is actively fundraising in the Global Private Equity segment,

the Company entered into an arrangement with a third-party pursuant to which the third-party has agreed to subscribe for a

$500.0 million commitment in the investment fund (the “Warehoused Interests”) through December 31, 2026. During that

period, the Warehoused Interests are expected to besold to other investors. Under the terms of this arrangement, the Company

will be required to acquire any unsold Warehoused Interests as of December 31, 2026.

In connection with a consolidated investment fund in the Carlyle AlpInvest segment, the Company entered into an

arrangement with a third-party pursuant to which the Company may be required to make payments up to$50.0 million in the

aggregate in the event the fund does not achieve a specified return. As of March 31, 2026, the Company has concluded that the

likelihood of payment under this arrangement is not probable; therefore, no liability has been recorded.

Legal Matters

In the ordinary course of business, the Company is a party to litigation, investigations, inquiries, employment-related

matters, disputes, and other potential claims. Certain of these matters are described below. The Company is not currently able to

estimate the reasonably possible amount of loss or range of loss, in excess of amounts accrued, for the matters that have not

been resolved. The Company does not believe it is probable that the outcome of any existing litigation, investigations, disputes,

or other potential claims will materially affect the Company or these financial statements in excess of amounts accrued.

The Tax Receivable Agreement Matter

The Company came into existence on January 1, 2020, when its predecessor, The Carlyle Group, L.P. (the “PTP”),

converted from a partnership into a corporation (the “Conversion”). On July 29, 2022, an alleged stockholder of the Company,

the City of Pittsburgh Comprehensive Municipal Trust Fund (the “original Plaintiff”), filed suit in the Delaware Court of

Chancery, alleging a direct claim against the Company for breach of its certificate of incorporation and a derivative claim on

behalf of the Company against certain current and former officers and directors of the Company. As the original Plaintiff did

not actually own shares on the date of the Conversion, it stipulated to the dismissal of the derivative claims in October of 2025

and the Court has allowed Charles Blackburn (together with the original Plaintiff, “Plaintiffs”) to intervene as a new plaintiff

with respect to the derivative claims. The original Plaintiff continues as a plaintiff with respect to one direct claim.

Plaintiffs challenge the receipt, by certain officers of the PTP and certain directors of the general partner of the PTP, of a

right to cash payments associated with the elimination of a tax receivable agreement in connection with the Conversion.

Plaintiffs are seeking monetary damages, restitution, and an injunction preventing the Company from making any future cash

payments for the elimination of the tax receivable agreement in connection with the Conversion. By virtue of the derivative

nature of the primary claims (i.e., that the claims are aimed primarily at certain officers and directors), it is unlikely that the

Company itself will pay material damage awards based on the derivative claims, although the Company is expected to incur

legal defense fees to the extent not covered by insurance. The Delaware Court issued a ruling on the defendants’ motion to

dismiss on April 24, 2024, dismissing some of the original Plaintiff’s claims but allowing most of the claims to proceed to

discovery and possibly to trial. Plaintiffs filed a consolidated amended complaint on November 17, 2025. Defendants filed a

motion to dismiss the consolidated amended complaint on January 16, 2026. The Company intends to contest the direct claims

vigorously, and the officer and director defendants intend to continue contesting the derivative claims vigorously.

General

The Company currently is and expects to continue to be, from time to time, subject to examinations, formal and informal

inquiries, and investigations by various U.S. and non-U.S. governmental and regulatory agencies, including but not limited to,

the SEC, Department of Justice, state attorneys general, FINRA, National Futures Association, and the U.K. Financial Conduct

Authority. The Company routinely cooperates with such examinations, inquiries and investigations, and they may result in the

commencement of civil, criminal, or administrative or other proceedings against the Company or its personnel.

It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings and employment-

related matters, and some of the matters discussed above involve claims for potentially large and/or indeterminate amounts of

damages. Based on information known by management, management does not believe that as of the date of this filing the final

resolutions of the matters above will have a material effect upon the Company’s condensed consolidated financial statements.

However, given the potentially large and/or indeterminate amounts of damages sought in certain of these matters and the

inherent unpredictability of investigations and litigations, it is possible that an adverse outcome in certain matters could, from

time to time, have a material effect on the Company’s financial results in any particular period.

The Company accrues an estimated loss contingency liability when it is probable that such a liability has been incurred

and the amount of the loss can be reasonably estimated. The Company evaluates its outstanding legal and regulatory

proceedings and other matters each quarter to assess its loss contingency accruals, and makes adjustments in such accruals,

upward or downward, as appropriate, based on management’s best judgment after consultation with counsel. There is no

assurance that the Company’s accruals for loss contingencies will not need to be adjusted in the future or that, in light of the

uncertainties involved in such matters, the ultimate resolution of these matters will not significantly exceed the accruals that the

Company has recorded.

Indemnifications

In the normal course of business, the Company and its subsidiaries enter into contracts that contain a variety of

representations and warranties and provide general indemnifications. The Company’s maximum exposure under these

arrangements is unknown as this would involve future claims that may be made against the Company that have not yet

occurred. However, based on experience, the Company believes the risk of material loss to be remote.

In connection with the sale of the Company’s interest in its local Brazilian management entity in August 2021, the

Company provided a guarantee to the acquiring company of up to BRL 100.0 million ($19.2 million as of March 31, 2026) for

liabilities arising from tax-related indemnifications. This guarantee, which will expire in August 2027, would only come into

effect after all alternative remedies have been exhausted. The Company believes the likelihood of any material funding under

this guarantee to be remote.

Risks and Uncertainties

Carlyle’s funds seek investment opportunities that offer the possibility of attaining substantial capital appreciation.

Certain events particular to each industry in which the underlying investees conduct their operations, as well as general

economic, political, regulatory, and public health conditions, may have a significant negative impact on the Company’s

investments and profitability. The funds managed by the Company may also experience a slowdown in the deployment of

capital, which could adversely affect the Company’s ability to raise capital for new or successor funds and could also impact the

management fees the Company earns on its carry funds and managed accounts, and/or result in the impairment of intangible

assets and/or goodwill the case of the Company’s acquired businesses. Such events are beyond the Company’s control, and the

likelihood that they may occur and the effect on the Company cannot be predicted.

Furthermore, certain of the funds’ investments are made in private companies and there are generally no public markets

for the underlying securities at the current time. The funds’ ability to liquidate their publicly-traded investments are often

subject to limitations, including discounts that may be required to be taken on quoted prices due to the number of shares being

sold. The funds’ ability to liquidate their investments and realize value is subject to significant limitations and uncertainties,

including among others currency fluctuations and natural disasters.

The Company and the funds make investments outside of the United States. Investments outside the United States may be

subject to less developed bankruptcy, corporate, partnership and other laws (which may have the effect of disregarding or

otherwise circumventing the limited liability structures potentially causing the actions or liabilities of one fund or a portfolio

company to adversely impact the Company or an unrelated fund or portfolio company). Non-U.S. investments are subject to the

same risks associated with the Company’s U.S. investments as well as additional risks, such as fluctuations in foreign currency

exchange rates, unexpected changes in regulatory requirements, heightened risk of political and economic instability,

difficulties in managing non-U.S. investments, potentially adverse tax consequences, and the burden of complying with a wide

variety of foreign laws.

Furthermore, Carlyle is exposed to economic risk concentrations related to certain large investments as well as

concentrations of investments in certain industries and geographies.

Additionally, the Company encounters credit risk. Credit risk is the risk of default by a counterparty in the Company’s

investments in debt securities, loans, leases, and derivatives that result from a borrower’s, lessee’s, or derivative counterparty’s

inability or unwillingness to make required or expected payments. The Company is subject to credit risk should a financial

institution be unable to fulfill its obligations.

The Company considers cash, cash equivalents, securities, receivables, principal equity method investments, accounts

payable, accrued expenses, other liabilities, loans, senior notes, assets, and liabilities of Consolidated Funds and contingent and

other consideration for acquisitions to be its financial instruments. Except for the senior notes, subordinated notes, and

compensatory contingent and other consideration for acquisitions, the carrying amounts reported in the condensed consolidated

balance sheets for these financial instruments equal or closely approximate their fair values. The fair value of the senior and

subordinated notes is disclosed in Note 5, Borrowings.

8. Related Party Transactions

Due from Affiliates and Other Receivables, Net

The Company had the following due from affiliates and other receivables at March 31, 2026 and December 31, 2025:

Reimbursable expenses and other receivables from certain of the unconsolidated funds and portfolio companies relate to

advisory fees receivable and expenses paid on behalf of these entities. These costs generally represent costs related to the

pursuit of actual or proposed investments, professional fees, and expenses associated with the acquisition, holding, and

disposition of the investments. The affiliates are obligated at the discretion of the Company to reimburse the expenses. Based

on management’s determination, the Company may accrue and charge interest on amounts due from affiliate accounts at

interest rates ranging up to 7.05% as of March 31, 2026. The accrued and charged interest to the affiliates was not significant

for any period presented.

Notes receivable includes loans that the Company has provided to certain unconsolidated funds to meet short-term

obligations to purchase investments. Notes receivable as of March 31, 2026 and December 31, 2025 also include interest-

bearing loans of$39.0 million and$19.5 million, respectively, to certain eligible Carlyle employees, which excludes Section 16

officers and other members of senior management, to finance their investments in certain Carlyle sponsored funds. These

advances accrue interest at rates which range between 5.05% and 5.75% as of March 31, 2026.

These receivables are assessed regularly for collectability. Management fee receivable amounts determined to be

uncollectible are recorded as a reduction in revenue in the condensed consolidated statements of operations. For all other

receivables, amounts determined to be uncollectible are charged directly to general, administrative and other expenses in the

condensed consolidated statements of operations. A corresponding allowance for doubtful accounts is recorded and such

amounts were not significant for any period presented.

Due to Affiliates

The Company has recorded obligations for amounts due to certain of its affiliates. The Company periodically offsets

expenses it has paid on behalf of its affiliates against these obligations. The Company had the following due to affiliates

balances at March 31, 2026 and December 31, 2025:

In connection with the Company’s initial public offering, the Company entered into a tax receivable agreement with the

limited partners of the Carlyle Holdings partnerships whereby certain subsidiaries of the Partnership agreed to pay to the limited

partners of the Carlyle Holdings partnerships involved in any exchange transaction 85% of the amount of cash tax savings, if

any, in U.S. federal, state and local income tax realized as a result of increases in tax basis resulting from exchanges of Carlyle

Holdings Partnership units for common units of The Carlyle Group L.P.

Other Related Party Transactions

Aircraft Transactions

Entities controlled by our co-founders own aircraft that may be used for the Company’s business in the ordinary course of

its operations. The hourly rates that the Company pays for the use of these aircraft are based on current market rates for

chartering private aircraft of the same type. For thethree months ended March 31, 2026 and 2025, the Company incurred fees

for the use of these aircraft of$0.3 million and$0.4 million, respectively. All payments were paid directly to the manager of the

aircraft, and a significant portion of the payments were ultimately paid to or were for the benefit of certain co-founders.

Other Transactions

Senior Carlyle professionals and employees are permitted to participate in co-investment entities that invest in Carlyle

funds or alongside Carlyle funds. In many cases, participation is limited by law to individuals who qualify under applicable

legal requirements. These co-investment entities generally do not require senior Carlyle professionals and employees to pay

management fees or performance allocations, however, Carlyle professionals and employees are required to pay their portion of

partnership expenses.

Carried interest income from certain funds can be distributed to senior Carlyle professionals and employees on a current

basis, but is subject to repayment by the subsidiary of the Company that acts as general partner of the fund in the event that

certain specified return thresholds are not ultimately achieved. The senior Carlyle professionals and certain other investment

professionals have personally guaranteed, subject to certain limitations, the obligation of these subsidiaries in respect of this

general partner obligation. Such guarantees are several and not joint and are limited to a particular individual’s distributions

received.

The Company does business with some of its portfolio companies; all such arrangements are on a negotiated basis.

Substantially all revenue is earned from affiliates of Carlyle.

9. Income Taxes

The effective tax rate for thethree months ended March 31, 2026 and 2025 primarily comprised the 21% U.S. federal

corporate income tax rate and the tax effects of equity-based compensation deductions, disallowed executive compensation, and

non-controlling interest. For the three months ended March 31, 2026, the effective tax rate included the impact of a one-time tax

expense related to a change in the tax classification of a consolidated subsidiary.

As of March 31, 2026 and December 31, 2025, the Company had federal, state, local and foreign taxes payable of

$134.9 million and$141.4 million, respectively, which is recorded as a component of accounts payable, accrued expenses and

other liabilities on the accompanying condensed consolidated balance sheets.

In the normal course of business, the Company is subject to examination by federal and certain state, local and foreign tax

regulators. As of March 31, 2026, the Company’s U.S. federal income tax returns for the years 2022 through 2024 are generally

open under the normal three-year statute of limitations and therefore subject to examination. State and local tax returns are

generally subject to audit from 2020 to 2024. Foreign tax returns are generally subject to audit from 2011 to 2024. Certain of

the Company’s affiliates are currently under audit by federal, state and foreign tax authorities. The Company does not believe

that the outcome of the audits will require it to record material reserves for uncertain tax positions or that the outcome will have

a material impact on the condensed consolidated financial statements.

On October 8, 2021, the OECD introduced a 15% global minimum tax under the Pillar Two GloBE model rules. On

January 5, 2026, the OECD announced a “side-by-side” system under which U.S.-parented groups would be able to elect to be

exempt from certain Pillar Two provisions. Additional guidance on the “side-by-side” system and implementation of such

system remain subject to further discussions and clarifications from the OECD and local implementation by each OECD

member country. Pillar Two has not had a material impact to the Company’s provision for income taxes; however, the

Company will continue to monitor as additional guidance is released by the OECD, OECD member countries based on their

enacted law changes, and other standard-setting bodies.

10. Non-controlling Interests in Consolidated Entities

The components of the Company’s non-controlling interests in consolidated entities are as follows:

The components of the Company’s non-controlling interests in income (loss) of consolidated entities are as follows:

11. Earnings Per Common Share

Basic and dilutednet income (loss) per common share are calculated as follows:

The weighted-average common shares outstanding, basic and diluted, are calculated as follows:

The Company applies the treasury stock method to determine the dilutive weighted-average common shares represented

by the unvested restricted stock units. Also included in the determination of dilutive weighted-average common shares are

issuable common shares associated with the Company’s investment in NGP and performance-vesting restricted stock units. As

of March 31, 2026, all such awards are antidilutive and excluded from the computation of diluted earnings per share given the

net loss attributable to common stockholders.

12. Equity

Share Repurchase Program

The Board of Directors reset the total repurchase authorization of the Company’s previously approved share repurchase

program to$2.0 billion in shares of the Company’s common stock, effective as of February 26, 2026. Under the share

repurchase program, shares of the Company’s common stock may be repurchased from time to time in open market

transactions, in privately negotiated transactions, or otherwise, including through Rule 10b5-1 plans. The timing and actual

number of shares of common stock repurchased will depend on a variety of factors, including legal requirements and price,

economic, and market conditions. In addition to repurchases of common stock, the share repurchase program is used for the

payment of tax withholding amounts upon net share settlement of equity-based awards granted pursuant to our Equity Incentive

Plan or otherwise based on the value of shares withheld that would have otherwise been issued to the award holder. The share

repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. As of

March 31, 2026, the Company had repurchased approximately$0.1 billion of common shares under the reset program, and$1.9

billion of repurchase capacity remained available. The following table presents the Company’s shares that have been

repurchased or retired as a result of net share settlement of equity-based awards during thethree months ended March 31, 2026

and 2025. Dollar amounts exclude the impact of excise taxes.

Dividends

The table below presents information regarding the quarterly dividends on the common shares, which were made at the

sole discretion of the Board of Directors of the Company.

The Board of Directors will take into account general economic and business conditions, as well as the Company’s

strategic plans and prospects, business and investment opportunities, financial condition and obligations, legal, tax, and

regulatory restrictions, other constraints on the payment of dividends by the Company to its common stockholders or by

subsidiaries to the Company, and other such factors as the Board of Directors may deem relevant. In addition, the terms of the

Company’s credit facility provide certain limits on the Company’s ability to pay dividends.

13. Equity-Based Compensation

The Carlyle Group Inc. Amended and Restated 2012 Equity Incentive Plan (the “Equity Incentive Plan,” initially adopted

in May 2012 and as most recently amended and restated on May 29, 2024) is a source of equity-based awards permitting the

Company to grant to Carlyle employees, directors and consultants non-qualified options, share appreciation rights, common

shares, restricted stock units and other awards based on the Company’s shares of common stock. A total of 58,800,000 shares of

common stock are authorized for the grant of awards under the Equity Incentive Plan, of which a total of 17,523,365 shares of

the Company’s common stock remain available for grant as of March 31, 2026.

A summary of the status of the Company’snon-vested equity-based awards as of March 31, 2026 and a summary of

changes for thethree months ended March 31, 2026, are presented below:

(1)Includes shares reserved for issuance upon settlement of dividend-equivalent rights carried by certain restricted stock units concurrently

with the settlement of the restricted stock units for shares.

(2)Includes 2,469,837 shares that were retired in connection with the net share settlement of equity-based awards. The Company paid

$139.8 million of taxes related to the net share settlement of equity-based awards during thethree months ended March 31, 2026, which

is included within financing activities in the condensed consolidated statements of cash flows.

The Company recorded equity-based compensation expense, net of forfeitures, for restricted stock units of$119.8 million

and$103.5 million for thethree months ended March 31, 2026 and 2025, respectively, with$17.5 million and$18.6 million of

corresponding deferred tax benefits, respectively. As of March 31, 2026, the total unrecognized equity-based compensation

expense related to unvested restricted stock units was$736.0 million, which is expected to be recognized over a weighted-

average term of 2.4 years.

14. Segment Reporting

Carlyle conducts its operations through three reportable segments:

Global Private Equity – The Global Private Equity segment advises buyout, growth, real estate, and infrastructure &

natural resources funds. The segment also includes the NGP Carry Funds advised by NGP.

Global Credit – The Global Credit segment advises funds and vehicles that pursue investment strategies including

insurance solutions, liquid credit, opportunistic credit, direct lending, asset-backed finance, aviation finance,

infrastructure credit, cross-platform credit products, and global capital markets.

Carlyle AlpInvest – The Carlyle AlpInvest segment advises global private equity programs that pursue secondary

purchases and financing of existing portfolios, managed co-investment programs, and primary fund investments.

The Company’s reportable business segments are differentiated by their various investment focuses and strategies.

Overhead costs are generally allocated based on cash-based compensation and benefits expense for each segment. The

Company’s earnings from its investment in NGP are presented in the respective operating captions within the Global Private

Equity segment.

Distributable Earnings. Distributable Earnings, or “DE,” is a key performance benchmark used in the Company’s

industry and is evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief Executive Officer, in

making resource deployment and compensation decisions and in assessing performance of the Company’sthree reportable

segments. The CODM also uses DE in budgeting, forecasting, and the overall management of the Company’s segments. The

CODM believes that reporting DE is helpful to understanding the Company’s business and that investors should review the

same supplemental financial measure that the CODM uses to analyze the Company’s segment performance. DE is intended to

show the amount of net realized earnings without the effects of the consolidation of the Consolidated Funds. DE is derived from

the Company’s segment reported results and is used to assess performance.

Distributable Earnings differs from income (loss) before provision for income taxes computed in accordance with U.S.

GAAP in that it includes certain tax expenses associated with certain foreign performance revenues (composed of performance

allocations and incentive fees), and does not include unrealized performance allocations and related compensation expense,

unrealized principal investment income, equity-based compensation expense, net income (loss) attributable to non-Carlyle

interests in consolidated entities, or charges (credits) related to Carlyle corporate actions and non-recurring items that affect

period-to-period comparability and are not reflective of the Company’s operational performance. Charges (credits) related to

Carlyle corporate actions and non-recurring items include: charges associated with the Conversion, charges (credits) associated

with acquisitions, dispositions or strategic investments, changes in the tax receivable agreement liability, amortization and any

impairment charges associated with acquired intangible assets, transaction costs associated with acquisitions and dispositions,

charges associated with earn-outs and contingent consideration including gains and losses associated with the estimated fair

value of contingent considerations issued in conjunction with acquisitions or strategic investments, impairment charges

associated with lease right-of-use assets, gains and losses from the retirement of debt, charges associated with contract

terminations and employee severance, and non-recurring items that affect period-to-period comparability and are not reflective

of the Company’s operating performance. Management believes the inclusion or exclusion of these items provides investors

with a meaningful indication of the Company’s core operating performance.

Fee Related Earnings. Fee Related Earnings, or “FRE,” is a component of DE and is used to assess the ability of the

business to cover base compensation and operating expenses from total fee revenues. FRE adjusts DE to exclude net realized

performance revenues, realized principal investment income, and net interest (interest income less interest expense). Fee

Related Earnings includes fee related performance revenues and related compensation expense. Fee related performance

revenues represent the realized portion of performance revenues that are measured and received on a recurring basis, are not

dependent on realization events, and which have no risk of giveback.

Asset information by segment is not disclosed because this information is not used by the CODM to make resource

deployment decisions or evaluate the performance of the Company’s segments.

The following tables present the financial data for the Company’sthree reportable segments for thethree months ended

March 31, 2026:

(1)General, administrative, and other indirect expenses primarily comprised professional fees, rent and other office expenses, IT expenses, travel and

entertainment expenses, and fundraising costs.

The following tables present the financial data for the Company’sthree reportable segments for thethree months ended

March 31, 2025:

(1)General, administrative, and other indirect expenses primarily comprised professional fees, rent and other office expenses, IT expenses, travel and

entertainment expenses, and fundraising costs.

The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes for the

three months ended March 31, 2026 and 2025.

(a)The Revenues adjustment principally represents unrealized performance revenues, unrealized principal investment

income (loss) (including Fortitude), revenues earned from the Consolidated Funds which were eliminated in

consolidation to arrive at the Company’s total revenues, adjustments for amounts attributable to non-controlling

interests in consolidated entities, adjustments related to expenses associated with the investments in NGP Management

and its affiliates that are included in operating captions or are excluded from the segment results, and adjustments to

reflect the reimbursement of certain costs incurred on behalf of Carlyle funds on a net basis, as detailed below:

The following table reconciles the total segments fund level fee revenue to the most directly comparable U.S. GAAP

measure, the Company’s consolidated fund management fees, for thethree months ended March 31, 2026 and 2025.

(1)Adjustments represent the reclassification of NGP management fees from principal investment income, the

reclassification of fee related performance revenues from certain products, management fees earned from

Consolidated Funds which were eliminated in consolidation to arrive at the Company’s fund management fees,

and the reclassification of certain amounts included in portfolio advisory fees, net and other in the segment

results that are included in interest and other income in the U.S. GAAP results.

The following table reconciles the total segments transaction and portfolio advisory fees, net and other to the most

directly comparable US. GAAP measure, the Company’s consolidated transaction and portfolio advisory fees, net for

thethree months ended March 31, 2026 and 2025.

(1)Adjustments represent the reclassification of other income from Interest and other income in the U.S. GAAP

results and certain underwriting fees from Principal investment income.

(b)The Expenses adjustment represents the elimination of intercompany expenses of the Consolidated Funds payable to the

Company, the inclusion of equity-based compensation, certain tax expenses associated with realized performance

revenues related compensation, unrealized performance revenues related compensation, adjustments related to expenses

associated with the investment in NGP Management that are included in operating captions, adjustments to reflect the

reimbursement of certain costs incurred on behalf of Carlyle funds on a net basis, changes in the tax receivable

agreement liability, and charges and credits associated with Carlyle corporate actions and non-recurring items, as

detailed below:

(c)The Other Income (Loss) adjustment results from the Consolidated Funds that were eliminated in consolidation to

arrive at the Company’s total Other Income (Loss).

(d)The following table is a reconciliation of Income (Loss) Before Provision for Income Taxes to Distributable Earnings

and to Fee Related Earnings:

(1)Equity-based compensation for thethree months ended March 31, 2026 and 2025 included amounts that are presented in

principal investment income (loss) and general, administrative and other expenses in the Company’s condensed consolidated

statements of operations.

(2)Includes charges (credits) related to Carlyle corporate actions and non-recurring items that affect period-to-period

comparability and are not reflective of the Company’s operating performance.

(3)See reconciliation to most directly comparable U.S. GAAP measure below:

(4) Adjustments to performance revenues and principal investment income (loss) relate to (i) unrealized performance allocations

net of related compensation expense and unrealized principal investment income, which are excluded from the segment

results, (ii) amounts earned from the Consolidated Funds, which are eliminated in the U.S. GAAP consolidation but are

included in the segment results, (iii) amounts attributable to non-controlling interests in consolidated entities, which are

excluded from the segment results, (iv) the reclassification of NGP performance revenues, which are included in principal

investment income in the U.S. GAAP financial statements, (v) the reclassification of fee related performance revenues, which

are included in fund level fee revenues in the segment results, and (vi) the reclassification of tax expenses associated with

certain foreign performance revenues. Adjustments to principal investment income (loss) also include the reclassification of

earnings for the investments in NGP Management and its affiliates to the appropriate operating captions for the segment

results, the exclusion of charges associated with the investment in NGP Management and its affiliates from the segment

results and the exclusion of the principal investment loss from dilution of the indirect investment in Fortitude.

15. Subsequent Events

Subsequent events have been evaluated through the date the condensed consolidated financial statements were issued.

There have been no subsequent events that require recognition or disclosure through the date the condensed consolidated

financial statements were issued, except as disclosed below and elsewhere in these condensed consolidated financial statements.

In April 2026, the Company’s Board of Directors declared a quarterly dividend of$0.35 per share of common stock to

common stockholders of record at the close of business on May 18, 2026, payable on May 28, 2026.

16. Supplemental Financial Information

The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the

Company’s financial position as of March 31, 2026 and December 31, 2025 and results of operations for thethree months

ended March 31, 2026 and 2025. The supplemental statement of cash flows is presented without effects of the Consolidated

Funds.