Carlyle Group Inc.: Form 10-Q for the period ended Sep 30, 2025

Unless context suggests otherwise, references in this Quarterly Report on Form 10-Q to “Carlyle,” the “Company,”

“we,” “us,” and “our” refer to The Carlyle Group Inc. and its consolidated subsidiaries. The following discussion and

analysis should be read in conjunction with the consolidated financial statements and the related notes included in this

Quarterly Report on Form 10-Q and the Annual Report on Form 10-K for the year ended December 31, 2024.

Overview

We are one of the world’s largest global investment firms and deploy private capital across our business. We conduct our

operations through three reportable segments: Global Private Equity, Global Credit, and Carlyle AlpInvest (formerly, Global

Investment Solutions).

• Global Private Equity — Our Global Private Equity segment advises our buyout, growth, real estate, and infrastructure &

natural resources funds. The segment also includes the NGP Carry Funds advised by NGP. As of September 30, 2025, our

Global Private Equity segment had $163 billion in AUM and $101 billion in Fee-earning AUM.

• Global Credit — Our 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. As of September 30, 2025, our Global Credit segment

had $208 billion in AUM and $167 billion in Fee-earning AUM.

• Carlyle AlpInvest — Our 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. As of

September 30, 2025, our Carlyle AlpInvest segment had $102 billion in AUM and $64 billion in Fee-earning AUM.

We earn management fees pursuant to contractual arrangements with the investment funds that we manage and fees for

transaction advisory and oversight services provided to portfolio companies of these funds. We also typically receive a

performance fee from an investment fund, which may be either an incentive fee or a special residual allocation of income,

which we refer to as a performance allocation, or carried interest, in the event that specified investment returns are achieved by

the fund. Under U.S. generally accepted accounting principles (“U.S. GAAP”), we are required to consolidate some of the

investment funds that we advise. However, for segment reporting purposes, we present revenues and expenses on a basis that

deconsolidates these investment funds. Refer to Note 15, Segment Reporting, to the condensed consolidated financial

statements included in this Quarterly Report on Form 10-Q for more information on the differences between our financial

results reported pursuant to U.S. GAAP and our financial results for segment reporting purposes.

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Our Global Investment Offerings

The following table provides a breakout of the product offerings and related acronyms included in our total assets under

management of $474 billion as of September 30, 2025 for each of our three global business segments (in billions):

Note: All amounts shown represent total assets under management as of September 30, 2025, and totals may not sum due to rounding. In

addition, certain carry funds included herein may not be included in fund performance if they have not made an initial capital call or

commenced investment activity.

(1) Includes our Financial Services (CGFSP), Sub-Saharan Africa Buyout (CSSAF), South America Buyout (CSABF), Peru Buyout (CPF),

MENA Buyout and Ireland Buyout (CCIF) funds, as well as platform accounts which invest across Corporate Private Equity strategies.

(2) NGP Energy funds are advised by NGP Energy Capital Management, LLC, a separately registered investment adviser. We do not serve as

an investment adviser to those funds.

(3) Includes our Infrastructure (CGIOF), Renewable Energy (CRSEF), and Power funds (CPP / CPOCP).

(4) Includes Carlyle FRL, capital raised from strategic third-party investors which directly invest in Fortitude alongside Carlyle FRL, as well

as the fair value of the general account assets covered by the strategic advisory services agreement with Fortitude.

(5) Includes our business development companies (CGBD / CARS) and our evergreen fund (CDLF).

(6) Includes our Energy Credit (CEMOF) and Real Estate Credit (CNLI) funds.

(7) Includes Carlyle AlpInvest Private Markets (CAPM), Carlyle AlpInvest Private Markets Secondaries (CAPS), and Mezzanine funds.

Trends Affecting our Business

The third quarter of 2025 was one of continued optimism across markets. In the U.S., the S&P 500 and NASDAQ

sustained their upward climb, returning 8% and 11%, respectively. Broad enthusiasm for AI continues to drive sharp price

action, with just ten stocks accounting for 40% of U.S. stock market capitalization, the highest degree of concentration on

record. Moreover, eight of those companies operate in roughly the same sector and the earnings prospects of seven of them are

highly leveraged to AI. Relatively modest declines in data center capacity utilization, or extensions of AI monetization

timelines, could be enough to shift major stock market indexes. Stocks also performed well elsewhere. European stocks had a

better third quarter than second quarter, with the Euro Stoxx 50 up over 4%, compared to a 1% return in the respective periods;

meanwhile the Shanghai Composite and Nikkei 225 returned 13% and 11%, respectively, in the third quarter.

As of the end of the third quarter, U.S. public equity multiples were 20–30% above their 10-year average. Since the

pandemic, stock performance has become more divorced from traditional business quality metrics, such as top-line growth,

profit margins, and the stability of earnings over the cycle. Over the past five years, investors would have outperformed a

quality long portfolio by shorting a basket of stocks of the highest quality businesses, a notable inversion of historical patterns.

Much of this change is the result of the prevalence in public markets of both passive fund flows and short-term oriented retail

investors. The reduced role of institutional active investing as a share of overall public market activity has dampened

meaningful price discovery. By contrast, the frictions associated with exiting positions help to insulate private markets from

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similar effects. With transaction prices set on the basis of underwritten return expectations over multiyear holding periods,

private markets abide by arithmetic constraints absent from listed markets. These constraints help to ensure that prices remain

tied to fundamentals, rather than liquidity flows, and that returns stem from earnings growth, rather than short-horizon

momentum. This discipline has been reflected in ongoing private equity transactions; across the U.S. buyout universe, median

purchase price multiples are still in line with the 10-year historical average.

Our proprietary portfolio data indicate U.S. economic underlying growth is resilient and expanded at an annualized rate

of roughly 2.7% in the third quarter. Household spending regained momentum, dominated by higher income households

buoyed by a surging stock market and insulated from higher rates through mortgages fixed at below-market rates. Growth was

also supported by business investment, which advanced at an annualized rate of nearly 5% over the quarter, powered by a

concentrated surge in AI‑related outlays. This includes investments spanning data center construction, graphics processing unit

(GPU) and server procurement, spending on related applications, and power and generation capacity. These investments—

though a relatively small slice of gross domestic product (GDP)—account for roughly 30–40% of overall growth. Crucially, the

financing mix skews heavily toward internally‑generated cash flows from mega‑cap technology firms, limiting the exposure to

higher interest rates.

Despite a steady economic outlook in the U.S., our portfolio data suggest that U.S. job growth has slowed with monthly

payroll gains during the third quarter averaging only 15,000–20,000. This slowdown may reflect both the impact of narrower

operating margins—likely due to tariffs—as well as a shrinking labor supply. Though most analysts assumed that the cost of

tariffs would manifest as higher consumer prices, inflation rates across affected categories have not yet matched what would be

implied by tariff revenue as some companies have absorbed higher tariffs in fear of weakened demand resulting from price

increases. At the same time, the shift to tighter immigration policy has sharply reduced U.S. labor force growth, with net

immigration near zero this year. Given that the domestic population is expected to grow just 14 basis points in 2025, only

modest monthly job gains are needed to maintain full employment. If the Federal Reserve interprets a labor-supply shortfall as a

sign of weak demand and cuts rates too aggressively, it could trigger wage-price pressures in 2026.

In Europe, the fiscal expansion in Germany has not yet been reflected in industrial order books, which continue to

contract. The trend over the past six months has not moved in the direction one might have hoped when the German

government announced its €500 billion fiscal package in the first quarter of 2025. In Asia, our data suggest that domestic

consumption in China is growing at its slowest pace in two years despite an improving outlook for China’s manufacturing

sector, where output appears to be growing at a 6.5% annual rate as exports once destined for the U.S. are channeled to other

markets. Our India portfolio data suggest domestic business volumes strengthened in the third quarter of 2025, with annual

growth averaging 7% over the quarter. While the increase in U.S. tariffs seems likely to reduce merchandise exports, the

domestic economy should benefit from the recently enacted Goods and Services Tax reform, which reduces domestic prices on

nearly 90% of goods, including an estimated 6% decline in the average price of discretionary consumer items.

Global mergers and acquisitions (M&A) activity gained momentum in the third quarter of 2025, with year-to-date dollar

volumes nearly matching full-year 2024 levels. Transactions totaled about $1.3 trillion in the third quarter, up 21% from the

prior quarter and 42% from a year ago. However, the number of deals fell about 12% year-over-year as larger transactions

drove overall volume. Similarly, while general partners (GPs) announced $241 billion in leveraged buyouts during the quarter

• the highest total since 2007 and 72% higher than a year earlier—deal counts remained well below the average pace of the

2021–2022 post-pandemic boom, with just 10 transactions accounting for nearly two-thirds of the total volume.

Despite blockbuster dollar volumes, buyout exits remain muted. Exit dollar volumes totaled $101 billion, roughly flat

versus the prior quarter and down 7% year-over-year, with one transaction representing about 20% of the total. However, while

cumulative net outflows since early 2022 (when they first turned negative) remain significant at $(135) billion, data through the

second quarter of 2025, the latest quarter for which data are available, indicate global buyout funds have now recorded five

consecutive quarters of non-negative net distributions. The initial public offering (IPO) market showed strength in the third

quarter, with 28 U.S. exchange-listed offerings raising $15.5 billion—the highest level of activity in terms of both transactions

and volumes since late 2021—though most were concentrated in software, pharma/health-tech, and AI-related sectors. The

continued backdrop of fewer transactions, slower exits, and constrained liquidity creates an attractive environment for

secondaries strategies, which have historically performed well when the private equity market slows.

In the aftermath of the Tricolor Auto Group and First Brands Group bankruptcies in September of 2025, fears have risen

around the quality of underlying assets in the syndicated loan and private credit markets. Business development companies

(BDCs) have underperformed the broader equity market since July, and firms and funds with the greatest exposure to First

Brands have seen their prices fall substantially in the aftermath. In fact, private credit default rates have seen a recent trend of

improvement in 2025 after climbing in 2024 and excess demand for leveraged loans and credit over the available supply has

pushed high yield credit spreads to post-global financial crisis lows. Risk premiums for leveraged finance are exceedingly tight.

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Portfolio finance’s unique structure of over-collateralization and sizable asset diversification may help to meaningfully mitigate

default risk and enhance capital preservation. Within our Global Credit portfolio, credit quality remains healthy. As of

September 30, 2025, the non-accrual rate across our entire direct lending platform is nearly half of the market-wide direct

lending non-accrual rate, and default rates in our U.S. CLO business are 40% of the market level.

Our investment activity in the third quarter of 2025 reflected trends in the broader markets. We deployed $11.8 billion

across our platform and realized proceeds of $6.1 billion in our traditional carry funds during the third quarter. Our carry fund

portfolio appreciated 2% in the third quarter, continuing to show relative stability against a backdrop of volatility in the global

equity markets. Within our Global Private Equity segment in the third quarter, our corporate private equity funds were flat as

market price decreases in certain publicly traded positions offset appreciation elsewhere, our infrastructure & natural resources

funds appreciated 5%, and our real estate funds appreciated 1%. Our Global Credit carry funds, which represent approximately

11% of the total Global Credit remaining fair value as of September 30, 2025, appreciated 4% in the third quarter. Carry funds

in our Carlyle AlpInvest segment appreciated 2% in the third quarter.

We had $16.9 billion in inflows in the third quarter of 2025 and $58.7 billion in inflows over the last twelve months as of

September 30, 2025, continuing the momentum from the first half of the year against a backdrop of significant market

uncertainty. Our inflows during the third quarter included $3 billion in our evergreen wealth products, which continue to be an

area of strategic focus.

The ongoing U.S. federal government shutdown has introduced meaningful uncertainty into capital markets and

regulatory workflows. While we have not experienced material impact in our portfolio to date as a result, we are monitoring the

potential impact a prolonged shutdown could have on our investment activity, including potentially postponing planned

realization activity such as initial public offerings or delaying deal pipelines as regulatory agencies operate at reduced capacity.

Recent Developments

Dividends

In October 2025, our Board of Directors declared a quarterly dividend of $0.35 per share to common stockholders of

record at the close of business on November 10, 2025, payable on November 19, 2025.

Senior Note Issuance

In September 2025, we issued $800.0 million of 5.050% senior notes due 2035. See Note 6, Borrowings, to the

condensed consolidated financial statements for further information.

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Key Financial Measures

Our key financial measures and operating metrics are discussed in the following pages. Additional information regarding

U.S. GAAP measures and our other significant accounting policies can be found in Note 2, Summary of Significant Accounting

Policies, to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Revenues

Revenues primarily consist of Fund management fees, Incentive fees, Investment income (including Performance

allocations, realized and unrealized gains of our investments in our funds, and other principal investments), as well as Interest

and other income.

Fund management fees. Fund management fees include management fees and transaction and portfolio advisory fees. We

earn management fees for advisory services we provide to funds in which we hold a general partner interest or to funds or

certain portfolio companies with which we have an investment advisory or investment management agreement. These fees are

largely from either traditional closed-end, long-dated funds, which are highly predictable and stable, or Perpetual Capital

products as defined below. Management fees also include catch-up management fees, which are episodic in nature and

represent management fees charged to fund investors in subsequent closings of a fund which apply to the time period between

the fee initiation date and the subsequent closing date. We also earn management fees on our CLOs and other structured

products.

Transaction and portfolio advisory fees generally include capital markets fees generated by Carlyle Global Capital

Markets in connection with activities related to the underwriting, issuance and placement of debt and equity securities, and loan

syndication for our portfolio companies and third-party clients, which are generally not subject to rebate offsets as described

below with respect to our most recent vintages (but are subject to the rebate offsets set forth below for older funds).

Underwriting fees include gains, losses, and fees arising from securities offerings in which we participate in the underwriter

syndicate.

Transaction and portfolio advisory fees also include fees we receive for the transaction and portfolio advisory services we

provide to our portfolio companies. When covered by separate contractual agreements, we recognize transaction and portfolio

advisory fees for these services when the performance obligation has been satisfied and collection is reasonably assured. We are

generally required to offset our fund management fees by the transaction and advisory fees earned, which we refer to as “rebate

offsets.”

The recognition of portfolio advisory fees, transactions fees, and capital markets fees can be volatile as they are primarily

generated by investment activity within our funds, and therefore are impacted by our investment pace or other capital

transactions at our portfolio companies.

Incentive fees. Incentive fees consist of performance-based incentive arrangements pursuant to management contracts,

primarily from certain of our Global Credit funds, when the return on assets under management exceeds certain benchmark

returns or other performance targets. In such arrangements, incentive fees are recognized when the performance benchmark has

been achieved.

Investment income (loss). Investment income (loss) consists of our performance allocations as well as the realized and

unrealized gains and losses resulting from our equity method investments and other principal investments.

Performance allocations consist principally of the performance-based capital allocation from fund limited partners to us,

commonly referred to as carried interest, from certain of our investment funds, which we refer to as the “carry funds.” Carried

interest revenue is recognized by Carlyle upon appreciation of the valuation of our funds’ investments above certain return

hurdles as set forth in each respective partnership agreement and is based on the amount that would be due to us pursuant to the

fund partnership agreement at each period end as if the funds were liquidated at such date. Accordingly, the amount of carried

interest recognized as performance allocations reflects our share of the fair value 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. As

a result, the performance allocations earned in an applicable reporting period are not indicative of any future period, as fair

values are based on conditions prevalent as of the reporting date. Refer to “—Trends Affecting our Business” for further

discussion.

For any given period, performance allocations revenue on our statement of operations may include reversals of previously

recognized performance allocations due to a decrease in the value of a particular fund that results in a decrease of cumulative

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performance allocations earned to date. Since fund return hurdles are cumulative, previously recognized performance

allocations also may be reversed in a period of appreciation that is lower than the particular fund’s hurdle rate. Additionally,

unrealized performance allocations reverse when performance allocations are realized, and unrealized performance allocations

can be negative if the amount of realized performance allocations exceed total performance allocations generated in the period.

The timing and receipt of realized performance allocations varies with the lifecycle of our carry funds and there is often a

difference between the time we start accruing performance allocations and realization. The timing of performance allocation

realizations from our Carlyle AlpInvest, Carlyle Aviation, and Abingworth funds is typically later than in our other carry funds

based on the terms of such arrangements.

Under our arrangements with the historical owners and management teams of AlpInvest and Abingworth, the amount of

carried interest to which we are entitled varies. In some cases, we are entitled to 15% of the carried interest in respect of

commitments from the historical owners of AlpInvest for the period between 2011 and 2020. In certain instances, carried

interest associated with the AlpInvest fund vehicles is subject to entity level income taxes in the Netherlands. Additionally, in

connection with the acquisition of Abingworth, we are entitled to 15% of carried interest generated from certain Abingworth

funds.

Realized carried interest may be clawed back or given back to the fund if the fund’s investment values decline below

certain return hurdles, which vary from fund to fund. This amount is known as the “giveback obligation.” In all cases, each

investment fund is considered separately in evaluating carried interest and potential giveback obligations. See Note 8,

Commitments and Contingencies, for more information.

Accrued performance allocations and accrued giveback obligations at a point in time assume a hypothetical liquidation of

the funds’ investments at their then current fair values. Each investment fund is considered separately in evaluating carried

interest and potential giveback obligations. These assets and liabilities will continue to fluctuate in accordance with the fair

values of the funds’ investments until they are realized. The Company uses “net accrued performance revenues” to refer to the

aggregation of the accrued performance allocations net of (i) accrued giveback obligations, (ii) accrued performance allocations

related compensation, (iii) performance allocations related tax obligations, and (iv) accrued performance allocations attributable

to non-controlling interests. Net accrued performance revenues exclude any net accrued performance allocations and incentive

fees that have been realized but will be collected in subsequent periods, as well as net accrued performance revenues which are

presented as fee related performance revenues when realized in our non-GAAP financial measures. Realized performance

allocation-related compensation that has not yet been paid is also excluded from our net accrued performance allocations.

In addition, realized performance allocations may be reversed in future periods to the extent that such amounts become

subject to a giveback obligation. The aggregate amount of giveback obligations realized since Carlyle’s inception totaled

$257.0 million, $175.6 million of which was related to various Legacy Energy Funds. Given that current and former senior

Carlyle professionals and other limited partners of the Carlyle Holdings partnerships are responsible for paying the majority of

the realized giveback obligation, only $87.1 million of the $257.0 million aggregate giveback obligation realized since

inception was attributable to Carlyle. The realization of giveback obligations for the Company’s portion of such obligations

reduces Distributable Earnings in the period realized. Further, each individual who holds equity interests in carried interest

generated by our funds and is a recipient of realized carried interest typically signs a guarantee agreement or partnership

agreement that personally obligates such person to return his/her pro rata share of any amounts of realized carried interest

previously distributed that are later clawed back. Accordingly, carried interest as performance allocation compensation is

subject to return to the Company in the event a giveback obligation is funded. Generally, the actual giveback liability, if any,

does not become due until the end of a fund’s life.

In addition, in our discussion of our non-GAAP results, we use the term “realized net performance revenues” to refer to

realized performance allocations and incentive fees from our funds, net of the portion allocated to our investment professionals,

and other employees and certain tax expenses associated with carried interest attributable to certain partners and employees,

which are reflected as realized performance allocations and incentive fees related compensation expense. See “—Non-GAAP

Financial Measures” and “—Segment Analysis” for the amount of realized net performance revenues recognized each period

and related discussion.

Investment income also represents the realized and unrealized gains and losses on our principal investments, including

our investments in Carlyle funds that are not consolidated, and our strategic investments in NGP as described below. Realized

principal investment income (loss) is recorded when we redeem all or a portion of our investment or when we receive or are due

cash income, such as dividends or distributions. A realized principal investment loss is also recorded when an investment is

deemed to be permanently impaired or worthless. Unrealized principal investment income (loss) results from changes in the fair

value of the underlying investment, as well as the reversal of previously recognized unrealized gains (losses) at the time an

investment is realized.

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We account for our investments in NGP under the equity method of accounting. Our investments in NGP include the

equity interests in NGP Management and the general partners of certain carry funds advised by NGP. Following the

restructuring of the terms of our strategic investment in NGP (the “Restructuring”), our equity interests in NGP Management

entitle us to an allocation of income equal to 55.0% of the management fee related revenues earned by NGP Management for

existing funds, and up to 55.0% for all NGP funds that held an initial closing after December 31, 2024, including all

management fees being retained by NGP for the years 2025 through 2028 on such future NGP funds. Our investment in the

general partners of the NGP Carry Funds entitle us to up to 47.5% of the performance allocations received from NGP fund

general partners. For further information regarding our strategic investments in NGP and the Restructuring, refer to Note 4,

Investments, to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

We record investment income (loss) for our equity income allocation from NGP management fee related revenues and

our share of any allocated expenses from NGP Management, as well as expenses associated with the compensatory elements of

the strategic investment and any impairment charges. We also record our equity income allocation from NGP performance

allocations in principal investment income (loss) from equity method investments rather than performance allocations in our

condensed consolidated statements of operations. We do not control or manage NGP. Moreover, we do not operate NGP’s

business, have representation on NGP’s board or serve as an investment advisor to any investment fund sponsored by NGP, nor

do we direct the operations of any of NGP’s portfolio companies. While we have consent rights over certain major actions by

NGP outside of the ordinary course of NGP’s business (including, for example, consent rights over items such as amendments

to the organizational documents of the entity in which we are invested, changes to the management fee streams earned by NGP

under its fund agreements, or the incurrence of certain debt by NGP and other similar items), we have no voting rights or

consent rights on any NGP investment committee that selects investments to be made by NGP funds.

Interest and other income. Interest and other income primarily represents reimbursement of certain costs incurred on

behalf of our funds, as well as interest income that we earn such as from our cash and money market accounts and other

investments, including CLO senior and subordinated notes.

Interest and other income of Consolidated Funds. Interest and other income of Consolidated Funds primarily represents

the interest earned on assets of consolidated CLOs.

Net investment income (loss) of Consolidated Funds. Net investment income (loss) of Consolidated Funds generally

measures the change in the difference in fair value between the assets and the liabilities of the Consolidated Funds. Income

(loss) indicates that the fair value of the assets of the Consolidated Funds appreciated more (less), or depreciated less (more),

than the fair value of the liabilities of the Consolidated Funds. Income or loss is not necessarily indicative of the investment

performance of the Consolidated Funds and does not impact the management or incentive fees received by Carlyle for its

management of the Consolidated Funds. The portion of the net investment income (losses) of Consolidated Funds attributable

to the limited partner investors is allocated to non-controlling interests. Therefore, income or loss is not expected to have a

material impact on the revenues or profitability of the Company. Moreover, although the assets of the Consolidated Funds are

consolidated onto our balance sheet pursuant to U.S. GAAP, ultimately we do not have recourse to such assets and such

liabilities are generally non-recourse to us. Therefore, income or loss from the Consolidated Funds generally does not impact

the assets available to our common stockholders.

Expenses

Compensation and benefits. Compensation includes salaries, bonuses, equity-based compensation, and performance

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

We recognize as compensation expense the portion of performance allocations and incentive fees that are due to our

employees, senior Carlyle professionals, advisors, and operating executives in a manner consistent with how we recognize the

performance allocations and incentive fee revenue. These amounts are accounted for as compensation expense in conjunction

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

compensation and benefits liability. Compensation in respect of performance allocations and incentive fees is paid when the

related performance allocations and incentive fees are realized, and not when such performance allocations and incentive fees

are accrued. The funds do not have a uniform allocation of performance allocations and incentive fees to our employees, senior

Carlyle professionals, advisors, and operating executives. However, we generally allocate a range of 60% to 70% of

performance allocations and incentive fees to our employees.

In addition, we have implemented various equity-based compensation arrangements that require senior Carlyle

professionals and other employees to provide services over a service period of generally one year to four years in order to vest

in the applicable equity interests, which under U.S. GAAP will result in compensation charges over current and future periods.

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In certain of our equity-based compensation arrangements, vesting is based on the achievement of certain performance targets

or market conditions (see Note 14, Equity-Based Compensation, for additional information). Compensation charges associated

with all equity-based compensation grants are excluded from Fee Related Earnings and Distributable Earnings.

We may hire additional individuals and overall compensation levels may correspondingly increase, which could result in

an increase in compensation and benefits expense. As a result of prior acquisitions, we have charges associated with contingent

consideration taking the form of earn-outs and profit participation, some of which are reflected as compensation expense.

General, administrative and other expenses. General, administrative and other expenses include occupancy and

equipment expenses and other expenses, which consist principally of professional fees, including those related to our global

regulatory compliance program, external costs of fundraising, travel and related expenses, communications and information

services, depreciation and amortization (including intangible asset amortization and impairment), bad debt expense, and foreign

currency transactions. We expect that general, administrative and other expenses will vary due to infrequently occurring or

unusual items, such as impairment of intangible assets or lease right-of-use assets and expenses or insurance recoveries

associated with litigation and contingencies. Also, in periods of significant fundraising, to the extent that we use third parties to

assist in our fundraising efforts, our general, administrative and other expenses may increase accordingly. Similarly, our

general, administrative and other expenses may increase as a result of professional and other fees incurred as part of due

diligence related to strategic acquisitions and new product development. Additionally, we anticipate that general, administrative

and other expenses will fluctuate from period to period due to the impact of foreign exchange transactions.

Interest and other expenses of Consolidated Funds. Interest and other expenses of Consolidated Funds consist primarily

of interest expense related primarily to loans of consolidated CLOs, professional fees and other third-party expenses.

Income taxes. Income taxes are accounted for using the asset and liability method of accounting. Under this method,

deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying

amounts of assets and liabilities and their respective tax basis, using currently enacted tax rates. The effect on deferred tax

assets and liabilities of a change in tax rates is recognized in income in the period in which the change is enacted. Deferred tax

assets are reduced by a valuation allowance when it is more likely than not that some or all of the deferred tax assets will not be

realized.

Non-controlling Interests in Consolidated Entities. Non-controlling interests in consolidated entities represent the

component of equity in consolidated entities not held by us. These interests are adjusted for general partner allocations.

Earnings Per Common Share. We compute 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. See Note 12, Earnings Per Common Share, to the condensed

consolidated financial statements in this Quarterly Report on Form 10-Q for more information.

Non-GAAP Financial Measures

Distributable Earnings. Distributable Earnings, or “DE,” is a key performance benchmark used in our industry and is

evaluated regularly in making resource deployment and compensation decisions, and in assessing the performance of our three

segments. We also use DE in our budgeting, forecasting, and the overall management of our segments. We believe that

reporting DE is helpful to understanding our business and that investors should review the same supplemental financial measure

that management uses to analyze our segment performance. DE is intended to show the amount of net realized earnings without

the effects of consolidation of the Consolidated Funds. DE is derived from our segment reported results and is an additional

measure 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

interest 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 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

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value of contingent consideration 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. We believe the inclusion or exclusion of these items provides investors with a

meaningful indication of our core operating performance. This measure supplements and should be considered in addition to

and not in lieu of the results of operations discussed further under “—Consolidated Results of Operations” prepared in

accordance with U.S. GAAP.

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 from investments in Carlyle funds, 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.

Operating Metrics

We monitor certain operating metrics that are common to the asset management industry.

Fee-earning Assets under Management. Fee-earning assets under management or Fee-earning AUM refers to the assets

we manage or advise from which we derive recurring fund management fees. Our Fee-earning AUM is generally based on one

of the following, once fees have been activated:

(a) the amount of limited partner capital commitments, generally for carry funds where the original investment period

has not expired and for AlpInvest carry funds during the commitment fee period (see “Fee-earning AUM based on

capital commitments” in the table below for the amount of this component at each period);

(b) the remaining amount of limited partner invested capital at cost, generally for carry funds and certain co-

investment vehicles where the original investment period has expired (see “Fee-earning AUM based on invested

capital” in the table below for the amount of this component at each period);

(c) the amount of aggregate fee-earning collateral balance at par of our CLOs and other securitization vehicles, as

defined in the fund indentures (pre-2020 CLO vintages are generally exclusive of equities and defaulted positions)

as of the quarterly cut-off date;

(d) the external investor portion of the net asset value of certain carry funds (see “Fee-earning AUM based on net

asset value” in the table below for the amount of this component at each period);

(e) the fair value of Fortitude’s general account assets invested under the strategic advisory services agreement (see

“Fee-earning AUM based on fair value and other” in the table below);

(f) the gross assets (including assets acquired with leverage) of certain cross-platform credit and direct lending

products, excluding cash and cash equivalents for one of our business development companies (included in “Fee-

earning AUM based on fair value and other” in the table below); and

(g) the lower of cost or fair value of invested capital, generally for AlpInvest carry funds where the commitment fee

period has expired and certain carry funds where the investment period has expired, (included in “Fee-earning

AUM based on fair value and other” in the table below).

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The chart below presents Fee-earning AUM by segment at each period, in billions.

The table below details Fee-earning AUM by its respective components at each period.

(Dollars in millions)

(1) Ending balances as of September 30, 2025 and 2024 exclude $19.1 billion and $21.0 billion, respectively, of pending Fee-earning AUM

for which fees have not yet been activated.

The table below provides the period to period rollforward of Fee-earning AUM.

(Dollars in millions)

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(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based on

commitments were activated during the period, the fee-earning commitments invested in vehicles for which management fees are based

on invested capital, the fee-earning collateral balance of new CLO issuances, closed reinsurance transactions at Fortitude, as well as

gross subscriptions in vehicles for which management fees are based on net asset value. Inflows exclude fundraising amounts during the

period for which fees have not yet been activated, which are referenced as Pending Fee-earning AUM.

(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair

value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has

expired during the period, reductions for funds that are no longer calling for fees, gross redemptions in our open-end funds, and outflows

from our liquid credit products. Distributions for funds earning management fees based on commitments during the period do not affect

Fee-earning AUM.

(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the lower

of cost or fair value and net asset value, activity of funds with fees based on gross asset value, and changes in the fair value of Fortitude’s

general account assets covered by the strategic advisory services agreement.

(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated

funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the

period end.

Refer to “—Segment Analysis” for a detailed discussion by segment of the activity affecting Fee-earning AUM for each

of the periods presented by segment.

Assets under Management. Assets under management or “AUM” refers to the assets we manage or advise. Our AUM

generally equals the sum of the following:

(a) the aggregate fair value of our carry funds and related co-investment vehicles, and separately managed accounts, plus

the capital that Carlyle is entitled to call from investors in those funds and vehicles (including Carlyle commitments to

those funds and vehicles and those of senior Carlyle professionals and employees) pursuant to the terms of their capital

commitments to those funds and vehicles;

(b) the amount of aggregate collateral balance and principal cash at par or aggregate principal amount of the notes of our

CLOs and other structured products (inclusive of all positions);

(c) the net asset value of certain carry funds;

(d) the fair value of Fortitude’s general account assets invested under the strategic advisory services agreement; and

(e) the gross assets (including assets acquired with leverage) of certain cross-platform credit and direct lending products,

plus the capital that Carlyle is entitled to call from investors in those vehicles pursuant to the terms of their capital

commitments to those vehicles.

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The chart below presents Total AUM by segment at each period, in billions.

We include in our calculation of AUM and Fee-earning AUM the NGP Energy Funds that are advised by NGP. Our

calculation of AUM also includes third-party capital raised for the investment in Fortitude through a Carlyle-affiliated

investment fund and from strategic investors who directly invest in Fortitude alongside the fund. The AUM and Fee-earning

AUM related to the strategic advisory services agreement with Fortitude are inclusive of the net asset value of investments in

Carlyle products. These amounts are also reflected in the AUM and Fee-earning AUM of the strategy in which they are

invested.

For most of our Global Private Equity and Carlyle AlpInvest carry funds, total AUM includes the fair value of the capital

invested, whereas Fee-earning AUM includes the amount of capital commitments or the remaining amount of invested capital,

depending on whether the original investment period for the fund has expired. As such, Fee-earning AUM may be greater than

total AUM when the aggregate fair value of the remaining investments is less than the cost of those investments.

Our calculations of AUM and Fee-earning AUM may differ from the calculations of other asset managers. As a result,

these measures may not be comparable to similar measures presented by other asset managers. In addition, our calculation of

AUM (but not Fee-earning AUM) includes uncalled commitments to, and the fair value of invested capital in, our investment

funds from Carlyle and our personnel, regardless of whether such commitments or invested capital are subject to management

fees or performance allocations. Our calculations of AUM or Fee-earning AUM are not based on any definition of AUM or

Fee-earning AUM that is set forth in the agreements governing the investment funds that we manage or advise.

We generally use Fee-earning AUM as a metric to measure changes in the assets from which we earn recurring

management fees. Total AUM tends to be a better measure of our investment and fundraising performance as it reflects

investments at fair value plus available capital.

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The table below provides the period to period rollforward of Total AUM.

(Dollars in millions)

(1) Inflows generally reflects the impact of gross fundraising as well as closed reinsurance transactions at Fortitude and corporate

acquisitions during the period, if any. For funds or vehicles denominated in foreign currencies, this reflects translation at the average

quarterly rate.

(2) Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and separately

managed accounts, gross redemptions in our open-end funds, outflows from our liquid credit products, and the expiration of available

capital.

(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds and

related co-investment vehicles, and separately managed accounts, as well as the net impact of fees, expenses and non-investment income,

change in gross asset value for our business development companies, changes in the fair value of Fortitude’s general account assets

covered by the strategic advisory services agreement, and other changes in AUM.

(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated

funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the

period end.

Please refer to “—Segment Analysis” for a detailed discussion by segment of the activity affecting Total AUM for each

of the periods presented.

*Available Capital. “*Available Capital” refers to the amount of capital commitments available to be called for investments,

which may be reduced for equity invested that is funded via a fund credit facility and expected to be called from investors at a

later date, plus any additional assets/liabilities at the fund level other than active investments. Amounts previously called may

be added back to available capital following certain distributions. “Expired Available Capital” occurs when a fund has passed

the investment and follow-on periods and can no longer invest capital into new or existing deals. Any remaining Available

Capital, typically a result of either recycled distributions or specific reserves established for the follow-on period that are not

drawn, can only be called for fees and expenses and is therefore removed from the Total AUM calculation.

*Perpetual Capital. “*Perpetual Capital” refers to the assets we manage or advise which have an indefinite term and for

which there is no immediate requirement to return capital to investors upon the realization of investments made with such

capital, except as required by applicable law. Perpetual Capital may be materially reduced or terminated under certain

conditions, including reductions from changes in valuations and payments to investors, including through elections by investors

to redeem their investments, dividend payments, and other payment obligations, as well as the termination of or failure to renew

the respective investment advisory agreements. Perpetual Capital includes: (a) assets managed under the strategic advisory

services agreement with Fortitude, (b) our Core Plus real estate fund, (c) our business development companies and certain other

direct lending products, (d) Carlyle Tactical Private Credit Fund (“CTAC”), (e) our closed-end tender offer Carlyle AlpInvest

Private Markets (“CAPM”) and Carlyle AlpInvest Private Markets Secondaries (“CAPS”) funds, and (f) certain other structured

credit products. As of September 30, 2025, our total AUM and Fee-earning AUM included $112.9 billion and $108.1 billion,

respectively, of Perpetual Capital. Our Perpetual Capital total AUM and Fee-Earning AUM, exclusive of assets managed under

the strategic advisory services agreement with Fortitude, was $32.3 billion and $27.6 billion, respectively, as of September 30,

*Performance Fee Eligible AUM. “*Performance Fee Eligible AUM” represents the AUM of funds for which we are

entitled to receive performance allocations, inclusive of the fair value of investments in those funds (which we refer to as

“Performance Fee Eligible Fair Value”) and their Available Capital. Performance Fee Eligible Fair Value is “Performance Fee-

Generating” when the associated fund has achieved the specified investment returns required under the terms of the fund’s

agreement and is accruing performance revenue as of the quarter-end reporting date. Funds whose performance allocations are

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treated as fee related performance revenues are excluded from these metrics. As of September 30, 2025, our total AUM

included $237.9 billion of Performance Fee Eligible AUM.

Consolidation of Certain Carlyle Funds

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

beneficiary of variable interest entities. The entities we consolidate are referred to collectively as the Consolidated Funds in our

condensed consolidated financial statements. The assets and liabilities of the Consolidated Funds are generally held within

separate legal entities and, as a result, the assets of the Consolidated Funds are not available to support our operating activities

and similarly the liabilities of the Consolidated Funds are non-recourse to us. As of September 30, 2025, our Consolidated

Funds represent approximately 3% of our AUM; 3% and 2% of our management fees for the three and nine months ended

September 30, 2025, respectively; and 2% of our total investment income or loss on an unconsolidated basis for both the three

and nine months ended September 30, 2025.

We are not required under the consolidation guidance to consolidate in our financial statements most of the investment

funds we advise. However, we consolidate certain CLOs and certain other funds that we advise, and the number of funds we are

required to consolidate has been increasing as a result of the impacts of capital from our balance sheet invested in new products

and our indirect interest in funds through our investment in Fortitude (see Note 4, Investments). As of September 30, 2025, the

assets and liabilities of the Consolidated Funds were primarily related to our consolidated CLOs, which held approximately

$9.6 billion of total assets. Additionally, the Investments of Consolidated Funds included approximately $0.9 billion related to

investments that have been bridged to investment funds in our Global Private Equity segment.

Generally, the consolidation of the Consolidated Funds has a gross-up effect on our assets, liabilities and cash flows but

has no net effect on the net income attributable to the Company. The majority of the net economic ownership interests of the

Consolidated Funds are reflected as non-controlling interests in consolidated entities in the consolidated financial statements.

However, in certain Consolidated Funds, particularly those where we have elected to invest additional amounts or bridge

investments in new investment areas, the non-controlling interests are less significant.

The Consolidated Funds are not the same entities in all periods presented. The Consolidated Funds in future periods may

change due to changes in fund terms, formation of new funds, and terminations of funds. Because only a small portion of our

funds are consolidated, the performance of the Consolidated Funds is not necessarily consistent with or representative of the

combined performance trends of all of our funds.

For further information on our consolidation policy and the consolidation of certain funds, see Note 2, Summary of

Significant Accounting Policies, to the condensed consolidated financial statements included in this Quarterly Report on

Form 10-Q.

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Consolidated Results of Operations

The following table and discussion sets forth information regarding our condensed consolidated results of operations for

the three and nine months ended September 30, 2025 and 2024. The condensed consolidated financial statements have been

prepared on substantially the same basis for all historical periods presented; however, the consolidated funds are not the same

entities in all periods shown due to changes in fund terms and the creation and termination of funds. As further described above,

the consolidation of these funds primarily has the impact of increasing interest and other income of Consolidated Funds, interest

and other expenses of Consolidated Funds, and net investment income (losses) of Consolidated Funds in the year that the fund

is initially consolidated. The consolidation of these funds had no effect on net income attributable to the Company for the

periods presented.

(Dollars in millions)

NM - Not meaningful

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Revenues

Fund management fees. Fund management fees increased $50.6 million, or 9%, for the three months ended September

30, 2025, as compared to the three months ended September 30, 2024, and increased $199.1 million, or 13%, for the nine

months ended September 30, 2025, as compared to the nine months ended September 30, 2024, primarily due to the following:

(Dollars in millions)

(1) The nine months ended September 30, 2025 included approximately $19 million of aviation catch-up subordinated management fees.

(2) Total increase in Fund management fees does not include our equity income allocation from NGP management fee related revenues. We do not control

NGP and account for our strategic investment in NGP as an equity method investment under U.S. GAAP. Therefore, Fund management fees associated

with NGP are included in Principal investment income (loss) in our U.S. GAAP results.

No fund generated over 10% of total fund management fees in any of the periods presented. Over the last twelve months

ended September 30, 2025, Fee-earning assets under management in our Carlyle AlpInvest and Global Credit segments grew

25% and 5%, respectively, while Global Private Equity decreased 2%. As a result, Fund management fees increased in Carlyle

AlpInvest and Global Credit, while Global Private Equity decreased, which was due in part to smaller buyout fund sizes in our

corporate private equity strategy and step-downs in rate or basis, partially offset by the activation of fees in certain products in

our Global Private Equity segment. The increase in catch-up management fees for the three and nine months ended September

30, 2025 was primarily attributable to our Carlyle AlpInvest segment. Fundraising for our most recent vintage of secondaries &

portfolio finance funds in our Carlyle AlpInvest segment concluded in the third quarter of 2025 and therefore the associated

catch-up management fees will not recur next quarter.

Fund management fees included transaction and portfolio advisory fees, net of rebate offsets, of $21.1 million and

$25.1 million for the three months ended September 30, 2025 and 2024, respectively, and $143.6 million and $75.1 million for

the nine months ended September 30, 2025 and 2024, respectively. These fees primarily comprise capital markets fees

generated by Carlyle Global Capital Markets. Over 25% of the fees earned during the nine months ended September 30, 2025

related to the acquisition of a healthcare investment across our U.S., Europe, and Asia buyout funds in the first quarter. The

recognition of portfolio advisory fees, transactions fees, and capital markets fees can be volatile as they are primarily generated

by investment activity within our funds, and therefore are impacted by our investment pace. See “—Trends Affecting Our

Business” for further discussion on our investment activity and broader market trends.

Investment income (loss). Investment income (loss) decreased $2.4 billion for the three months ended September 30, 2025

compared to the three months ended September 30, 2024, and decreased $1.7 billion for the nine months ended September 30,

2025 compared to the nine months ended September 30, 2024. The components of Investment income (loss) are included in the

following table:

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(Dollars in millions)

Performance allocations. Performance allocations by segment for the three and nine months ended September 30, 2025

and 2024 comprised the following:

(Dollars in millions)

Performance allocations for the three and nine months ended September 30, 2025 included the following:

• In the Global Private Equity segment, for the three and nine months ended September 30, 2025, reversals of

Performance allocations were primarily attributable to the impact of a decrease in the market prices of certain public

investments in CP VII and CAP V. Additionally, for the nine months ended September 30, 2025, reversals of

Performance allocations were offset by accruals of Performance allocations resulting from appreciation in CP VIII.

• In the Global Credit segment, for the three and nine months ended September 30, 2025, Performance allocation

accruals were primarily driven by the impact of appreciation in CCOF II and CCOF III. During the nine months

ended September 30, 2025, Performance allocation accruals were also driven by the impact of appreciation in

SASOF V.

• In the Carlyle AlpInvest segment, for the three and nine months ended September 30, 2025, Performance allocation

accruals were primarily driven by the impact of appreciation in our secondaries & portfolio finance. During the nine

months ended September 30, 2025, Performance allocation accruals were also driven by the impact of appreciation

in our co-investment funds.

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Performance allocations for the three and nine months ended September 30, 2024 included the following:

• In the Global Private Equity segment, for the three and nine months ended September 30, 2024, performance

allocation accruals were primarily driven by appreciation in our CP VII fund, and to a lesser extent appreciation in

our CP VIII and CAP V funds, partially offset by the reversal of performance allocations in our CEP V and CP VI

funds due to portfolio depreciation.

• In the Global Credit segment, for the three and nine months ended September 30, 2024, performance allocation

accruals were primarily driven by appreciation in our opportunistic credit funds.

• In the Carlyle AlpInvest segment, for the three and nine months ended September 30, 2024, performance allocation

accruals were primarily driven by appreciation in our secondaries & portfolio finance and co-investment strategies.

See “—Trends Affecting Our Business” for further discussion on the macroeconomic, geopolitical and industry

landscape, and our investment activity.

Principal investment income. The increase in Principal investment income for the three months ended September 30,

2025 compared to the three months ended September 30, 2024 primarily reflects the impact of a $48.5 million reversal of

previously recorded unrealized investment income in the three months ended September 30, 2024 from our Global Credit

products as a result of the Merger as discussed in Note 9, Related Party Transactions. The increase for the three months ended

September 30, 2025 was also impacted by an increase in other investment income, driven by unrealized market appreciation in

a corporate investment. These were partially offset by a decrease in unrealized investment income from Carlyle FRL.

The decrease in Principal investment income for the nine months ended September 30, 2025 compared to the nine months

ended September 30, 2024 was primarily attributable to an impairment charge of $92.5 million and a $38.0 million reduction in

NGP accrued carry, both related to the restructuring of the terms of our strategic investment in NGP (see Note 4, Investments,

for more information).

Expenses

Compensation and benefits. Total compensation and benefits decreased $1.5 billion for the three months ended

September 30, 2025, as compared to the three months ended September 30, 2024, and decreased $1.0 billion for the nine

months ended September 30, 2025, as compared to the nine months ended September 30, 2024. The decreases for three and

nine months ended September 30, 2025 relative to the comparable prior year periods are primarily attributable to a decrease in

Performance allocations and incentive fee related compensation of $1.5 billion and $0.9 billion, respectively, and a decrease in

Equity-based compensation of $30.9 million and $68.0 million, respectively. The decrease in Performance allocations and

incentive fee related compensation was primarily driven by a decrease in Performance allocations, on which Performance

allocations and incentive fee related compensation is based. The decrease in Equity-based compensation was primarily driven

by lower amortization on performance-based stock awards, partially offset by additional equity awards granted in February

General, administrative and other expenses. General, administrative and other expenses increased $4.1 million for the

three months ended September 30, 2025, as compared to the three months ended September 30, 2024, and increased $47.6

million for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. The increase

for the three months ended September 30, 2025 was primarily attributable to an increase in external fundraising costs, primarily

in our Carlyle AlpInvest segment, as well as an increase in IT expenses and professional fees. These were partially offset by a

decrease in foreign currency remeasurement adjustments of $13.1 million, reflecting a foreign exchange gain for the three

months ended September 30, 2025, compared to a foreign exchange loss for the three months ended September 30, 2024 driven

by the movement in EUR relative to USD.

The increase for the nine months ended September 30, 2025 was primarily attributable to an increase in foreign currency

remeasurement loss of $13.1 million, reflecting the movement of EUR and GBP relative to USD, as well as an increase in

external fundraising costs and an increase in operating costs related to certain funds. These were partially offset by the impact

of an increase in liabilities during the nine months ended September 30, 2024 for litigation-related contingencies, regulatory

examination and inquiries, and other matters.

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Net investment income (loss) of Consolidated Funds. The table below summarizes the components of Net investment

income (loss) of Consolidated Funds, including our consolidated CLOs and certain other funds:

(Dollars in millions)

Net investment income (loss) of Consolidated Funds for the three and nine months ended September 30, 2025 included

unrealized gains of $153.6 million in a new collateralized fund obligation vehicle in our Carlyle AlpInvest segment, partially

offset by unrealized losses of $82.2 million on an infrastructure investment in consolidated funds in our Global Private Equity

segment.

Provision (benefit) for income taxes. The Company’s provision (benefit) for income taxes was $(26.7) million and $173.1

million for the three months ended September 30, 2025 and 2024, respectively, and $98.2 million and $264.5 million for the

nine months ended September 30, 2025 and 2024, respectively. The Company’s effective tax rate was approximately (31)% and

22% for the three months ended September 30, 2025 and 2024, respectively, and 14% and 23% for the nine months ended

September 30, 2025 and 2024, respectively. The effective tax rate for the three months ended September 30, 2025 and 2024

primarily comprised the 21% U.S. federal corporate income tax rate, the impact of U.S. state and foreign income taxes and

disallowed executive compensation, offset by non-controlling interest and equity-based compensation deductions. The effective

tax rate for the three months ended September 30, 2025 was negative primarily due to the tax benefit from the pretax loss

incurred prior to the effect of non-controlling interest and due to the deduction related to the excess tax benefit from the vesting

of restricted stock units in the quarter. The effective tax rate for the nine months ended September 30, 2025 and 2024 primarily

comprised the 21% U.S. federal corporate income tax rate, the impact of U.S. state and foreign income taxes, and disallowed

executive compensation, primarily offset by equity-based compensation deductions and non-controlling interest. The effective

tax rate for the nine months ended September 30, 2024 also includes an increase related to other non-deductible expenses.

As of September 30, 2025 and December 31, 2024, the Company had federal, state, local, and foreign taxes payable of

$90.6 million and $46.2 million, respectively, which is recorded as a component of accounts payable, accrued expenses and

other liabilities in the accompanying condensed consolidated balance sheets.

Net income attributable to non-controlling interests in consolidated entities. Net income attributable to non-controlling

interests in consolidated entities was $111.6 million for the three months ended September 30, 2025, as compared to $20.0

million for the three months ended September 30, 2024, and $148.6 million for the nine months ended September 30, 2025, as

compared to $54.3 million for the nine months ended September 30, 2024. These amounts are primarily attributable to the net

earnings of the Consolidated Funds for each period, which are substantially all allocated to the related fund’s limited partners or

CLO investors, as well as net earnings from our insurance solutions business and certain other products that are allocated to

certain third-party investors. These amounts also reflect the net income attributable to non-controlling interests in carried

interest, giveback obligations, and cash held for carried interest distributions. The net income (loss) of our Consolidated Funds,

after eliminations, was $91.3 million and $8.3 million for the three months ended September 30, 2025 and 2024, respectively,

and $113.2 million and $16.7 million for the nine months ended September 30, 2025 and 2024, respectively.

Non-GAAP Financial Measures

The following tables set forth information in the format used by management when making resource deployment

decisions and in assessing performance of our segments. These Non-GAAP financial measures are presented for the three and

nine months ended September 30, 2025 and 2024. Our Non-GAAP financial measures exclude the effects of unrealized

performance allocations net of related compensation expense, unrealized principal investment income, consolidated funds,

acquisition and disposition-related items including amortization and any impairment charges of acquired intangible assets and

contingent consideration taking the form of earn-outs, charges associated with the Conversion, impairment charges associated

with lease right-of-use assets, gains or losses from retirement of debt, charges associated with contract terminations and

employee severance, charges associated with equity-based compensation, changes in the tax receivable agreement liability,

corporate actions and infrequently occurring or unusual events.

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The following table shows our total segment DE and FRE for the three and nine months ended September 30, 2025 and

(Dollars in millions)

The following table sets forth our total segment revenues for the three and nine months ended September 30, 2025 and

(Dollars in millions)

The following table sets forth our total segment expenses for the three and nine months ended September 30, 2025 and

(Dollars in millions)

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Income (loss) before provision for income taxes is the U.S. GAAP financial measure most comparable to Distributable

Earnings and Fee Related Earnings. The following table is a reconciliation of income (loss) before provision for income taxes to

Distributable Earnings and to Fee Related Earnings.

(Dollars in millions)

(1) Equity-based compensation for the three and nine months ended September 30, 2025 and 2024 includes amounts presented in principal

investment income and general, administrative and other expenses in our U.S. GAAP statement 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.

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(3) See reconciliation to most directly comparable U.S. GAAP measure below:

(Dollars in millions)

(Dollars in millions)

(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 our Non-GAAP results, (ii)

amounts earned from the Consolidated Funds, which were eliminated in the U.S. GAAP consolidation but were included in the Non-

GAAP results, (iii) amounts attributable to non-controlling interests in consolidated entities, which were excluded from the Non-GAAP

results, (iv) the reclassification of NGP performance revenues, which are included in 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 investment in NGP Management and its affiliates to the

appropriate operating captions for the Non-GAAP results, and the exclusion of charges associated with the investment in NGP

Management and its affiliates that are excluded from the Non-GAAP results.

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Distributable Earnings for our reportable segments are as follows:

(Dollars in millions)

Segment Analysis

Discussed below is our DE and FRE for our segments for the periods presented. Our segment information is reflected in

the manner used by our chief operating decision maker to make operating and compensation decisions, assess performance, and

allocate resources.

For segment reporting purposes, revenues and expenses are presented on a basis that deconsolidates our Consolidated

Funds. As a result, segment revenues from management fees, realized performance revenues and realized principal investment

income (loss) are different than those presented on a consolidated U.S. GAAP basis because these revenues recognized in

certain segments are received from Consolidated Funds and are eliminated in consolidation when presented on a consolidated

U.S. GAAP basis. Furthermore, segment expenses are different than related amounts presented on a consolidated U.S. GAAP

basis due to the exclusion of fund expenses that are paid by the Consolidated Funds.

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Global Private Equity

The following table presents our results of operations for our Global Private Equity(1) segment:

(Dollars in millions)

(1) For purposes of presenting our results of operations for this segment, our earnings from our investments in NGP are presented in the

respective operating captions.

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Distributable Earnings

Distributable Earnings decreased $88.7 million for the three months ended September 30, 2025, as compared to the three

months ended September 30, 2024, and decreased $103.4 million for the nine months ended September 30, 2025, as compared

to the nine months ended September 30, 2024. The following table provides the components of the changes in Distributable

Earnings for the three and nine months ended September 30, 2025:

(Dollars in millions)

Realized Net Performance Revenues. Realized net performance revenues decreased $69.9 million for the three months

ended September 30, 2025, as compared to the three months ended September 30, 2024, and decreased $57.2 million for the

nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024. Realized net performance

revenues for the three months ended September 30, 2025 were primarily attributable to realizations in CJP III and CRP VIII.

Realized net performance revenues for the nine months ended September 30, 2025 were primarily attributable to realizations in

CPP II, NGP XI, CAP IV, and CETP IV. Realized net performance revenues for the three and nine months ended September

30, 2024 were primarily attributable to realizations in CAP IV, CETP III, and CJP III. Additionally, the nine months ended

September 30, 2024 included realizations in CIEP I. While overall exit activity increased in the nine months ended September

30, 2025 relative to the comparable 2024 period, the mix of exits was more concentrated in funds not yet realizing performance

revenues.

Fee Related Earnings

Fee Related Earnings decreased $7.9 million for the three months ended September 30, 2025, as compared to the three

months ended September 30, 2024, and decreased $35.8 million for the nine months ended September 30, 2025, as compared to

the nine months ended September 30, 2024. The following table provides the components of the changes in Fee Related

Earnings for the three and nine months ended September 30, 2025:

(Dollars in millions)

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Fee Revenues. Total fee revenues decreased $3.0 million for the three months ended September 30, 2025, as compared to

the three months ended September 30, 2024, and decreased $23.8 million for the nine months ended September 30, 2025, as

compared to the nine months ended September 30, 2024, due to the following:

(Dollars in millions)

The decrease in fund management fees for the nine months ended September 30, 2025 as compared to the nine months

ended September 30, 2024 was primarily due to step-downs in management fee basis on CEP V and CRP IX in the fourth

quarter of 2024, as well as net investment realizations in funds on which management fees are based on invested capital. These

were partially offset by the activation of fees in CJP V, which turned on fees in the fourth quarter of 2024, as well as CRP X,

which turned on fees on April 1, 2025. The impact of smaller buyout funds in our corporate private equity strategy is resulting

in, and may continue to result in, lower fund management fees relative to prior periods.

The increase in portfolio advisory and transaction fees, net and other for the nine months ended September 30, 2025 as

compared to the nine months ended September 30, 2024 was primarily due to an increase in transaction fees. Transaction fees

are primarily generated by investment activity within our funds, and are therefore impacted by our investment pace. See “—

Trends Affecting Our Business” for further discussion on our investment activity and broader market trends.

General, administrative and other indirect expenses. General, administrative and other indirect expenses increased $7.7

million for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, and

increased $17.9 million for the nine months ended September 30, 2025, as compared to the nine months ended September 30,

2024. The increase for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024

was primarily attributable to an increase in professional fees. The increase for the nine months ended September 30, 2025 was

primarily attributable to an increase in costs related to funds in fundraising, an increase in professional fees, and a lower

reversal of value-added tax expense in Asia. These were partially offset by foreign exchange gains for the nine months ended

September 30, 2025 compared to foreign exchange losses for the nine months ended September 30, 2024.

Fee-earning AUM

Fee-earning AUM is presented below for each period together with the components of change during each respective

period.

(Dollars in millions)

(1) For additional information concerning the components of Fee-earning AUM, see “—Key Financial Measures—Operating Metrics.”

(2) Represents annualized fund management fees divided by the average of the beginning of year and each quarter end’s Fee-earning AUM

in the reporting period. Catch-up management fees were excluded in the calculation of the annualized fund management fees.

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The table below provides the period to period rollforward of Fee-earning AUM.

(Dollars in millions)

(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based

on commitments were activated during the period, and the fee-earning commitments invested in vehicles for which management fees

are based on invested capital. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which

are referenced as Pending Fee-earning AUM.

(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair

value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has

expired during the period, and reductions for funds that are no longer calling for fees. Realizations for funds earning management fees

based on commitments during the period do not affect Fee-earning AUM.

(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the

lower of cost or fair value.

(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated

funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the

period end.

Fee-earning AUM of $101.1 billion at September 30, 2025 decreased 1% from $102.3 billion at June 30, 2025. The net

decrease was due to:

• Outflows of $1.6 billion, driven by realization in funds that charge fees on invested capital, notably in the NGP

energy funds and CP VII, as well as redemptions in CPI.

Offsetting these decreases were:

• Inflows of $0.4 billion, primarily driven by investments in CPI.

Fee-earning AUM of $101.1 billion at September 30, 2025 increased 3% from $98.0 billion at December 31, 2024. The

net increase was due to:

• Inflows of $11.1 billion, which included the activation of management fees in CRP X, additional fee-paying capital

raised in CAP VI, and investments in our U.S. real estate, Asia buyout, and Europe buyout funds which charge fees

on invested capital; and

• Positive foreign exchange activity of $1.8 billion reflecting the translation of our EUR- and JPY-denominated funds

to USD.

Offsetting these increases were:

• Outflows of $9.6 billion, which included realizations in funds that charge fees on invested capital, notably in the

NGP energy funds and our U.S. buyout, Europe buyout, Asia buyout, and U.S. real estate funds, as well as the

expiration of fees in CP VI during the period, and a fee basis step-down in CIEP II.

Fee-earning AUM of $101.1 billion at September 30, 2025 decreased 2% from $103.5 billion at September 30, 2024. The

net decrease was due to:

• Outflows of $17.3 billion driven by realizations in funds that charge fees on invested capital, fee basis step-downs in

CRP IX, CEP V, and CIEP II, and the expiration of fees in CP VI during the period.

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Offsetting these decreases were:

• Inflows of $14.6 billion primarily from the activation of fees in CRP X and CJP V, additional fee-paying capital

raised in CAP VI, and investments in funds which charge fees on invested capital; and

• Positive foreign exchange activity of $0.6 billion reflecting the translation of our EUR- and JPY-denominated funds

to USD.

Total AUM

The table below provides the period to period rollforward of Total AUM.

(Dollars in millions)

(1) Inflows reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects

translation at the average quarterly rate.

(2) Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and

separately managed accounts, gross redemptions in our open-ended funds, and the expiration of available capital.

(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related

co-investment vehicles, and separately managed accounts, as well as the impact of fees, expenses and non-investment income, and

other changes in AUM.

(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated

funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the

period end.

Total AUM was $163.5 billion at September 30, 2025, a decrease of 1% from $165.1 billion at June 30, 2025. The net

decrease was due to:

• Outflows of $2.7 billion driven by realizations in our U.S. buyout and U.S. real estate funds, as well as the NGP

energy funds.

Offsetting these decreases were:

• Inflows of $0.6 billion, driven by capital raised in our U.S. real estate funds; and
• Market appreciation of $0.6 billion, which reflected appreciation generally across the portfolio, net of depreciation

in CP VII ($0.4 billion) and CAP V ($0.3 billion), the portfolios of which were impacted by market price decreases

in certain public investments.

Total AUM was $163.5 billion at September 30, 2025, flat compared to $163.5 billion at December 31, 2024. This was

due to:

• Outflows of $12.3 billion, driven by realizations across the segment, notably in our U.S. buyout, power, and U.S.

real estate funds, as well as the NGP energy funds.

Offsetting these decreases were:

• Inflows of $6.2 billion, driven by new capital raised in our U.S. real estate and Asia buyout funds, as well as the

NGP energy funds;

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• Market appreciation of $3.1 billion, driven by appreciation in CP VII ($0.9 billion), CP VIII ($0.7 billion), and CGP

II ($0.5 billion), partially offset by depreciation in CEP V ($0.8 billion); and

• Positive foreign exchange activity of $3.0 billion reflecting the translation of our EUR- and JPY-denominated funds

to USD.

Fund Performance Metrics

Fund performance information for our investment funds that generally have at least $1.0 billion in capital commitments,

cumulative equity invested or total value as of September 30, 2025, which we refer to as our “significant funds,” is included

throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The

fund return information reflected in this discussion and analysis is not indicative of the performance of The Carlyle Group Inc.

and is also not necessarily indicative of the future performance of any particular fund. An investment in The Carlyle Group Inc.

is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds

will achieve similar returns.

The following table reflects the performance of our significant funds in our Global Private Equity business. Please see

“—Our Global Investment Offerings” for a legend of the fund acronyms listed below.

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(Amounts in millions)

103

*Net accrued fee related performance revenues for CPI are excluded from Net Accrued Performance Revenues. These amounts will be

reflected as fee related performance revenues when realized, and included in Fund level fee revenues in our segment results. There were no

accrued fee related performance revenues for CPI as of September 30, 2025.

**The IRR is incalculable, which occurs in instances when a distribution occurs prior to a Limited Partner capital contribution due to the use

of fund-level credit facilities.

(1) The fund step-down date represents the contractual step-down date under the respective fund agreements for funds on

which the fee basis step-down has not yet occurred. Funds without a listed Fee Initiation Date and Step-down Date have

not yet initiated fees.

(2) All amounts shown represent total capital commitments as of September 30, 2025. Certain of our recent vintage funds are

currently in fundraising and total capital commitments are subject to change.

(3) Represents the original cost of investments since inception of the fund.

(4) Represents all realized proceeds since inception of the fund.

(5) Represents remaining fair value, before management fees, expenses and carried interest, and may include remaining

escrow values for realized investments.

(6) Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest,

divided by cumulative invested capital.

(7) Gross Internal Rate of Return (“Gross IRR”) represents an annualized time-weighted return on Limited Partner invested

capital, based on contributions, distributions and unrealized fair value as of the reporting date, before the impact of

management fees, partnership expenses and carried interest. For fund vintages 2017 and after, Gross IRR includes the

impact of interest expense related to the funding of investments on fund lines of credit. Gross IRR is calculated based on

the timing of Limited Partner cash flows, which may differ to varying degrees from the timing of actual investment cash

flows for the fund. Subtotal Gross IRR aggregations for multiple funds are calculated based on actual cash flow dates for

each fund and represent a theoretical time-weighted return for a Limited Partner who invested sequentially in each fund.

(8) For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time

since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is considered meaningful

but is negative as of reporting period end.

(9) Net Internal Rate of Return (“Net IRR”) represents an annualized time-weighted return on Limited Partner invested

capital, based on contributions, distributions and unrealized fair value as of the reporting date, after the impact of all

management fees, partnership expenses and carried interest, including current accruals. Net IRR is calculated based on

the timing of Limited Partner cash flows, which may differ to varying degrees from the timing of actual investment cash

flows for the fund. Fund level IRRs are based on aggregate Limited Partner cash flows, and this blended return may differ

from that of individual Limited Partners. As a result, certain funds may generate accrued performance revenues with a

blended Net IRR that is below the preferred return hurdle for that fund. Subtotal Net IRR aggregations for multiple funds

are calculated based on actual cash flow dates for each fund and represent a theoretical time-weighted return for a

Limited Partner who invested sequentially in each fund.

(10) Represents the net accrued performance revenue balance/(giveback obligation) as of the current quarter end.

(11) Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried

interest.

(12) An investment is considered realized when the investment fund has completely exited, and ceases to own an interest in,

the investment. An investment is considered partially realized when the total amount of proceeds received in respect of

such investment, including dividends, interest or other distributions and/or return of capital, represents at least 85% of

invested capital and such investment is not yet fully realized. Because part of our value creation strategy involves

pursuing best exit alternatives, we believe information regarding Realized/Partially Realized MOIC and Gross IRR, when

considered together with the other investment performance metrics presented, provides investors with meaningful

information regarding our investment performance by removing the impact of investments where significant realization

activity has not yet occurred. Realized/Partially Realized MOIC and Gross IRR have limitations as measures of

investment performance and should not be considered in isolation. Such limitations include the fact that these measures

do not include the performance of earlier stage and other investments that do not satisfy the criteria provided above. The

exclusion of such investments will have a positive impact on Realized/Partially Realized MOIC and Gross IRR in

instances when the MOIC and Gross IRR in respect of such investments are less than the aggregate MOIC and Gross

IRR. Our measurements of Realized/Partially Realized MOIC and Gross IRR may not be comparable to those of other

companies that use similarly titled measures.

(13) Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and

stand-alone investments arranged by us: MENA, CCI, CSSAF I, CPF I, CAP Growth I, CAP Growth II, CBPF II, CAGP

IV, ABV 8, ABV 9, ACCD 2 and CCD-CIF.

(14) Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and

certain other stand-alone investments arranged by us: CP I, CP II, CP III, CP IV, CEP I, CEP II, CAP I, CAP II, CAP III,

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CBPF I, CJP I, CJP II, CMG, CVP I, CVP II, CUSGF III, CGFSP I, CEVP I, CETP I, CETP II, CAVP I, CAVP II,

CAGP III, CEOF I, Mexico and CSABF.

(15) Funds are included when all investments have been realized. There may be remaining fair value and net accrued carry

where there are outstanding escrow balances or undistributed proceeds.

(16) For purposes of aggregation, funds that report in foreign currency have been converted to U.S. dollars at the reporting

period spot rate.

(17) Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and

stand-alone investments arranged by us: CCR, CER I, and CER II.

(18) Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and

certain other stand-alone investments arranged by us: CRP I, CRP II, CRP III, CRP IV, CRP V, CRCP I, CAREP I,

CAREP II, CEREP I, CEREP II and CEREP III.

(19) Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and

stand-alone investments arranged by us: NGP GAP, NGP RP I, NGP RP II, NGP RP III, NGP ETP IV, CPOCP, and

CRSEF.

(20) Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and

certain other stand-alone investments arranged by us: CIP and CPP II.

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Global Credit

The following table presents our results of operations for our Global Credit segment:

(Dollars in millions)

106

Distributable Earnings

Distributable Earnings increased $45.9 million for the three months ended September 30, 2025, as compared to the three

months ended September 30, 2024, and increased $95.4 million for the nine months ended September 30, 2025, as compared to

the nine months ended September 30, 2024. The following table provides the components of the changes in Distributable

Earnings for the three and nine months ended September 30, 2025:

(Dollars in millions)

Realized Principal Investment Income. Realized principal investment income increased $45.6 million for the three months

ended September 30, 2025, as compared to the three months ended September 30, 2024, and increased $30.1 million for the

nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024, primarily attributable to

dividend income received of $31.4 million from our equity method investment in Carlyle FRL during the three months ended

September 30, 2025. The increase for the nine months ended September 30, 2025, as compared to the nine months ended

September 30, 2024, was partially offset by lower realized principal investment income from our CLOs.

Fee Related Earnings

Fee Related Earnings increased $1.9 million for the three months ended September 30, 2025, as compared to the three

months ended September 30, 2024, and increased $64.7 million for the nine months ended September 30, 2025, as compared to

the nine months ended September 30, 2024. The following table provides the components of the changes in Fee Related

Earnings for the three and nine months ended September 30, 2025:

(Dollars in millions)

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Fee Revenues. Fee revenues increased $7.5 million for the three months ended September 30, 2025, as compared to the

three months ended September 30, 2024, and increased $104.4 million for the nine months ended September 30, 2025, as

compared to the nine months ended September 30, 2024, due to the following:

(Dollars in millions)

The increase in Fund management fees for the nine months ended September 30, 2025 as compared to the nine months

ended September 30, 2024 was primarily attributable to the receipt of approximately $19 million of catch-up subordinated

management fees in certain aviation funds during the nine months ended September 30, 2025, due in part to the collection of

insurance proceeds and in part due to the sale of collateral in those vehicles, and an increase in management fees from our direct

lending business and CTAC. These were partially offset by lower management fees from our liquid credit business.

The increase in portfolio advisory and transaction fees, net and other fees for the three and nine months ended September

30, 2025 as compared to the three and nine months ended September 30, 2024 was primarily driven by an increase in capital

markets fees. The recognition of capital markets fees can be volatile as they are primarily generated by investment activity. See

“—Trends Affecting Our Business” for further discussion on our investment activity and broader market trends.

Cash-based compensation and benefits expense. Cash-based compensation and benefits expense increased $7.3 million

for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, and increased

$33.7 million for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024,

primarily due to an increase in accrued bonuses related to capital markets fees as well as higher headcount.

Fee-earning AUM

Fee-earning AUM is presented below for each period together with the components of change during each respective

period.

(Dollars in millions)

(1) For additional information concerning the components of Fee-earning AUM, see “—Key Financial Measures—Operating Metrics.”

(2) Includes the fair value of Fortitude’s general account assets covered by the strategic advisory services agreement and funds with fees

based on gross asset value.

(3) Represents annualized fund management fees divided by the average of the beginning of year and each quarter end’s Fee-earning AUM

in the reporting period. Catch-up management fees were excluded in the calculation of the annualized fund management fees.

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The table below provides the period to period rollforward of Fee-earning AUM.

(Dollars in millions)

(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based

on commitments were activated during the period, the fee-earning commitments invested in vehicles for which management fees are

based on invested capital, the fee-earning collateral balance of new CLO issuances, closed reinsurance transactions at Fortitude, and

gross subscriptions in our vehicles for which management fees are based on net asset value.

(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair

value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has

expired during the period, reductions for funds that are no longer calling for fees, gross redemptions in our open-ended funds, and

outflows from our liquid credit products. Realizations for funds earning management fees based on commitments during the period do

not affect Fee-earning AUM.

(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in funds or vehicles based on the

lower of cost or fair value or net asset value, activity of funds with fees based on gross asset value, and changes in the fair value of

Fortitude’s general account assets covered by the strategic advisory services agreement.

(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated

funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the

period end.

Fee-earning AUM was $167.2 billion at September 30, 2025, an increase of 3% from $162.8 billion at June 30, 2025. The

net increase was due to:

• Inflows of $9.0 billion, which were driven by over $4 billion of closed reinsurance transactions at Fortitude and

deployment across the platform, including the closing of two U.S. CLOs and two Euro CLOs.

Offsetting these increases were:

• Outflows of $4.9 billion, which included outflows from our liquid credit products and realizations across the

platform.

Fee-earning AUM was $167.2 billion at September 30, 2025, an increase of 8% from $154.2 billion at December 31,

2024. The net increase was due to:

• Inflows of $21.3 billion, which were driven by nearly $9 billion of closed reinsurance transactions at Fortitude and

capital deployment across the platform, including the closing of four U.S. CLOs and two Euro CLOs;

• Positive market activity of $2.0 billion, which primarily reflected an increase in the fair value of assets covered by

the Fortitude strategic advisory services agreement, as well as increases in our cross-platform credit and direct

lending products; and

• Positive foreign exchange activity of $1.1 billion reflecting the translation of our EUR-denominated products to

USD.

Offsetting these increases were:

• Outflows of $11.4 billion, which were driven by outflows from our liquid credit products and realizations in our

aviation and opportunistic credit funds.

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Fee-earning AUM was $167.2 billion at September 30, 2025, an increase of 5% from $159.2 billion at September 30,

2024. The net increase was due to:

• Inflows of $26.4 billion, which reflected capital deployment across the platform, notably in our liquid credit

products, including the closing of eight U.S. CLOs and three Euro CLOs, and asset-backed finance, direct lending,

and opportunistic credit funds, as well as nearly $9 billion of closed reinsurance transactions at Fortitude.

Offsetting these increases were:

• Outflows of $15.0 billion, which included outflows from our liquid credit products and realizations across the

platform; and

• Negative market activity of $3.9 billion, which primarily reflected a decrease in the fair value of assets covered by

the Fortitude strategic advisory services agreement, partially offset by increases in our cross-platform credit

products.

Total AUM

The table below provides the period to period rollforward of Total AUM.

(Dollars in millions)

(1) Inflows generally reflects the impact of gross fundraising and closed reinsurance transactions at Fortitude during the period. For funds

or vehicles denominated in foreign currencies, this reflects translation at the average quarterly rate.

(2) Outflows includes distributions net of recallable or recyclable amounts in our carry funds, related co-investment vehicles, and

separately managed accounts, gross redemptions in our open-ended funds, outflows from our liquid credit products, and the expiration

of available capital.

(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related

co-investment vehicles, and separately managed accounts, as well as the impact of fees, expenses and non-investment income, change

in gross asset value for our business development companies, changes in the fair value of Fortitude’s general account assets covered by

the strategic advisory services agreement, and other changes in AUM.

(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated

funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the

period end.

Total AUM was $208.5 billion at September 30, 2025, an increase of 3% compared to $203.0 billion at June 30, 2025.

The net increase was due to:

• Inflows of $9.9 billion, which were driven by capital raised in our liquid credit products, including the closing of

two U.S. CLOs and two Euro CLOs, and asset-backed finance products, as well as over $4 billion of closed

reinsurance transactions at Fortitude; and

• Positive market activity of $1.9 billion, primarily from an increase in the fair value of our cross-platform credit,

opportunistic credit, and direct lending products.

Offsetting these increases were:

• Outflows of $6.3 billion for the period, which primarily reflected outflows from our liquid credit products and

realizations across the platform, notably in our asset-backed finance products.

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Total AUM was $208.5 billion at September 30, 2025, an increase of 8% compared to $192.4 billion at December 31,

2024. The net increase was due to:

• Inflows of $22.9 billion, which were driven by capital raised in our liquid credit products, including the closing of

four U.S. CLOs and two Euro CLOs, as well as our asset-backed finance, cross-platform credit, aviation, and

opportunistic credit products, and nearly $9 billion of closed reinsurance transactions at Fortitude;

• Positive market activity of $5.0 billion, which primarily reflected an increase in the fair value of our direct lending

and cross-platform credit products, as well as an increase in the fair value of assets covered by the Fortitude strategic

advisory services agreement; and

• Positive foreign exchange activity of $1.2 billion reflecting the translation of our EUR-denominated products to

USD.

Offsetting these increases were:

• Outflows of $13.1 billion for the period, which were primarily in our liquid credit products, with additional activity

reflecting realizations across the platform, notably in our asset-backed finance and aviation products.

Fund Performance Metrics

Fund performance information for certain of our Global Credit funds is included throughout this discussion and analysis

to facilitate an understanding of our results of operations for the periods presented. The fund return information reflected in this

discussion and analysis is not indicative of the performance of The Carlyle Group Inc. and is also not necessarily indicative of

the future performance of any particular fund. An investment in The Carlyle Group Inc. is not an investment in any of our

funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.

The following table reflects the performance of our significant carry funds in our Global Credit business. Please see “—

Our Global Investment Offerings” for a legend of the fund acronyms listed below.

(Dollars in millions)

(1) Represents the original cost of investments since the inception of the fund. For CSP IV, reflects amounts net of

investment level recallable proceeds which is adjusted to reflect recyclability of invested capital for the purpose of

calculating the fund MOIC.

(2) Represents all realized proceeds since inception of the fund.

(3) Represents remaining fair value, before management fees, expenses and carried interest, and may include remaining

escrow values for realized investments.

(4) Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried

interest, divided by cumulative invested capital.

(5) Gross Internal Rate of Return (“Gross IRR”) represents an annualized time-weighted return on Limited Partner invested

capital, based on contributions, distributions and unrealized fair value as of the reporting date, before the impact of

management fees, partnership expenses and carried interest. For fund vintages 2017 and after, Gross IRR includes the

impact of interest expense related to the funding of investments on fund lines of credit. Gross IRR is calculated based

on the timing of Limited Partner cash flows, which may differ to varying degrees from the timing of actual investment

cash flows for the fund. Subtotal Gross IRR aggregations for multiple funds are calculated based on actual cash flow

111

dates for each fund and represent a theoretical time-weighted return for a Limited Partner who invested sequentially in

each fund.

(6) Net Internal Rate of Return (“Net IRR”) represents an annualized time-weighted return on Limited Partner invested

capital, based on contributions, distributions and unrealized fair value as of the reporting date, after the impact of all

management fees, partnership expenses and carried interest, including current accruals. Net IRR is calculated based on

the timing of Limited Partner cash flows, which may differ to varying degrees from the timing of actual investment cash

flows for the fund. Fund level IRRs are based on aggregate Limited Partner cash flows, and this blended return may

differ from that of individual Limited Partners. As a result, certain funds may generate accrued performance revenues

with a blended Net IRR that is below the preferred return hurdle for that fund. Subtotal Net IRR aggregations for

multiple funds are calculated based on actual cash flow dates for each fund and represent a theoretical time-weighted

return for a Limited Partner who invested sequentially in each fund.

(7) Represents the net accrued performance revenue balance/(giveback obligation) as of the current quarter end.

(8) For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time

since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is considered meaningful

but is negative as of reporting period end.

(9) Aggregate includes the following funds, as well as all active co-investments, separately managed accounts (SMAs), and

stand-alone investments arranged by us: SASOF IV, SASOF V, CAPF VII, CICF, CAF, CALF, CCOF III - Unlevered,

and CCOF III PSV.

(10) Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and

certain other stand-alone investments arranged by us: CSP I, CSP II, CSP III, CEMOF I, CEMOF II, CSC, CMP I,

CMP II, SASOF II, and CASCOF.

(11) The fund step-down date represents the contractual step-down date under the respective fund agreements for funds on

which the fee basis step-down has not yet occurred. Funds without a listed Fee Initiation Date and Step-down Date have

not yet initiated fees.

(12) All amounts shown represent total capital commitments as of September 30, 2025. Certain of our recent vintage funds

are currently in fundraising and total capital commitments are subject to change. Committed capital for CCOF II

excludes $150 million in capital committed by a CCOF II investor to a side vehicle. The CCOF III platform, which

includes CCOF III - Levered, CCOF III - Unlevered, and CCOF III PSV, collectively has $5.7 billion of committed

capital.

(13) Funds are included when all investments have been realized. There may be remaining fair value and net accrued carry

where there are outstanding escrow balances or undistributed proceeds.

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Carlyle AlpInvest

The following table presents our results of operations for our Carlyle AlpInvest segment:

(Dollars in millions)

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Distributable Earnings

Distributable Earnings increased $44.1 million for the three months ended September 30, 2025, as compared to the three

months ended September 30, 2024, and increased $121.2 million for the nine months ended September 30, 2025, as compared

to the nine months ended September 30, 2024. The following table provides the components of the changes in Distributable

Earnings for the three and nine months ended September 30, 2025:

(Dollars in millions)

Realized Principal Investment Income. Realized principal investment income increased $5.2 million for the three months

ended September 30, 2025, as compared to the three months ended September 30, 2024. Realized principal investment income

increased $22.1 million for the nine months ended September 30, 2025, as compared to the nine months ended September 30,

2024, primarily driven by our investment in the CAPM funds.

Fee Related Earnings

Fee Related Earnings increased $40.0 million for the three months ended September 30, 2025, as compared to the three

months ended September 30, 2024, and increased $99.7 million for the nine months ended September 30, 2025, as compared to

the nine months ended September 30, 2024. The following table provides the components of the changes in Fee Related

Earnings for the three and nine months ended September 30, 2025:

(Dollars in millions)

Fee Revenues. Fee revenues increased $59.0 million for the three months ended September 30, 2025, as compared to the

three months ended September 30, 2024, and increased $143.1 million for the nine months ended September 30, 2025, as

compared to the nine months ended September 30, 2024, driven by an increase in Fund management fees of $47.3 million and

$113.8 million, respectively, and an increase in Fee related performance revenues of $11.6 million and $29.3 million,

respectively. The increase in Fund management fees was primarily driven by the impact of fundraising in our most recent

vintage of secondaries & portfolio finance funds. Fund management fees included catch-up management fees of $31.1 million

and $55.6 million for the three and nine months ended September 30, 2025, respectively, an increase of $24.2 million and

$46.0 million, respectively, relative to the comparable 2024 periods. Fundraising for our most recent vintage of secondaries &

portfolio finance funds concluded in the third quarter and therefore these catch-up management fees will not recur next quarter.

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Our CAPM funds also contributed to the increase in Fund management fees, and drove the increase in Fee related performance

revenues due to its growing capital base and performance.

Cash-based compensation and benefits expense. Cash-based compensation and benefits expense increased $9.3 million

for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, and increased

$25.2 million for the nine months ended September 30, 2025, as compared to the nine months ended September 30, 2024,

primarily due to an increase in headcount and an increase in compensation associated with fee related performance revenues.

General, administrative and other indirect expenses. General, administrative and other indirect expenses increased $9.4

million for the three months ended September 30, 2025, as compared to the three months ended September 30, 2024, and

increased $17.2 million for the nine months ended September 30, 2025 as compared to the nine months ended September 30,

2024, primarily due to higher external fundraising costs.

Fee-earning AUM

Fee-earning AUM is presented below for each period together with the components of change during each respective

period.

(Dollars in millions)

(1) For additional information concerning the components of Fee-earning AUM, see “—Key Financial Measures—Operating Metrics.”

(2) Includes amounts committed to or reserved for certain AlpInvest funds.

(3) Represents annualized fund management fees divided by the average of the beginning of year and each quarter end’s Fee-earning AUM

in the reporting period. Catch-up management fees were excluded in the calculation of the annualized fund management fees.

The table below provides the period to period rollforward of Fee-earning AUM.

(Dollars in millions)

(1) Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based

on commitments were activated during the period and the fee-earning commitments invested in vehicles for which management fees are

based on invested capital. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which are

referenced as Pending Fee-earning AUM.

(2) Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair

value, changes in basis for funds where the investment period, weighted-average investment period, or commitment fee period has

expired during the period, and reductions for funds that are no longer calling for fees. Distributions for funds earning management fees

based on commitments during the period do not affect Fee-earning AUM.

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(3) Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the

lower of cost or fair value and net asset value.

(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated

funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the

period end.

Fee-earning AUM was $63.6 billion at September 30, 2025, an increase of 7% from $59.6 billion at June 30, 2025. The

net increase was due to:

• Inflows of $4.7 billion, which were driven by fee-paying capital raised and investment activity across all strategies,

notably in our secondaries & portfolio finance, CAPM, and CAPS funds.

Offsetting these increases were:

• Outflows of $1.1 billion, which were driven by realizations in funds, across all strategies, that charge fees on

invested capital.

Fee-earning AUM was $63.6 billion at September 30, 2025, an increase of 22% from $52.1 billion at December 31, 2024.

The net increase was due to:

• Inflows of $11.7 billion, which were driven by fee-paying capital raised and investment activity across all strategies,

notably in our secondaries & portfolio finance funds; and

• Positive foreign exchange activity of $2.2 billion, primarily from the translation of our EUR-denominated funds to

USD.

Offsetting these increases were:

• Outflows of $3.0 billion, which were driven by realizations across all strategies in funds that charge fees on invested

capital.

Fee-earning AUM was $63.6 billion at September 30, 2025, an increase of 25% compared to $50.9 billion at

September 30, 2024. The net increase was due to:

• Inflows of $14.7 billion, which were driven by fee-paying capital raised and investment activity in our secondaries

& portfolio finance and CAPM funds;

• Market appreciation of $1.5 billion, which was driven by certain funds in our secondaries & portfolio finance and

primary strategies, as well as our CAPM funds, in which fees are based on fair value; and

• Positive foreign exchange activity of $0.9 billion, primarily from the translation of our EUR-denominated funds to

USD.

Offsetting these increases were:

• Outflows of $4.4 billion, which reflected realizations across all strategies and step-downs in fee bases in our primary

funds.

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Total AUM

The table below provides the period to period rollforward of Total AUM.

(Dollars in millions)

(1) Inflows reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects

translation at the average quarterly rate.

(2) Outflows includes distributions in our carry funds, related co-investment vehicles and separately managed accounts, as well as the

expiration of available capital.

(3) Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds, related

co-investment vehicles and separately managed accounts, the net impact of fees, expenses and non-investment income, as well as other

changes in AUM.

(4) Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated

funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the

period end.

Total AUM was $102.1 billion at September 30, 2025, an increase of 6% compared to $96.5 billion at June 30, 2025. The

net increase was due to:

• Inflows of $6.3 billion, which reflected fundraising across the segment, notably in our secondaries & portfolio

finance, CAPS, and CAPM funds; and

• Market appreciation of $2.1 billion, which was driven by our secondaries & portfolio finance and primary funds.

Offsetting these increases were:

• Outflows of $2.7 billion, predominantly from realizations in our co-investment and secondaries & portfolio finance

strategies.

Total AUM was $102.1 billion at September 30, 2025, an increase of 20% compared to $85.1 billion at December 31,

2024. The net increase was due to:

• Inflows of $15.4 billion, which reflected fundraising across the platform, notably in our secondaries & portfolio

finance and co-investment strategies, as well as the CAPM and CAPS funds;

• Market appreciation of $4.3 billion, which was driven by our secondaries & portfolio finance and co-investment

strategies; and

• Positive foreign exchange activity of $3.7 billion, primarily from the translation of our EUR-denominated funds to

USD.

Offsetting these increases were:

• Outflows of $6.3 billion which reflected realizations across all strategies.

Fund Performance Metrics

The fund return information reflected in this discussion and analysis is not indicative of the performance of The Carlyle

Group Inc. and is also not necessarily indicative of the future performance of any particular fund. An investment in The Carlyle

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Group Inc. is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and

future funds will achieve similar returns.

The following table reflects the performance of our significant funds in our Carlyle AlpInvest business. We also present

fund performance information for portfolios of investments held by separately managed accounts, generally aggregated either

as invested alongside the relevant commingled fund or over a specified time period.

(Amounts in millions)

(Reported in Local Currency, in Millions)

(1) Includes private equity and mezzanine primary fund investments, secondary fund investments and co-investments

originated by AlpInvest. Excluded from the performance information shown are: (a) investments that were not originated

by AlpInvest (i.e., AlpInvest did not make the original investment decision or recommendation); (b) Direct Investments,

which was spun off from AlpInvest in 2005; (c) Carlyle AlpInvest Private Markets (“CAPM”); (d) Carlyle AlpInvest

Private Markets Secondaries (“CAPS”); and (e) LP co-investment vehicles managed by AlpInvest. As of September 30,

2025, these excluded portfolios amounted to approximately $15.1 billion of AUM in the aggregate.

(2) Represents the original cost of investments since inception of the fund.

(3) To exclude the impact of FX, all foreign currency cash flows have been converted to the currency representing a majority

of the capital committed to the relevant fund at the reporting period spot rate.

(4) Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried

interest.

(5) Multiple of invested capital (“MOIC”) represents total fair value, before management fees, expenses and carried interest,

divided by cumulative invested capital.

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(6) Gross Internal Rate of Return (“Gross IRR”) represents the annualized IRR for the period indicated on Limited Partner

invested capital based on investment contributions, distributions and unrealized value of the underlying investments, before

management fees, expenses and carried interest at the AlpInvest level.

(7) Net Internal Rate of Return (“Net IRR”) represents the annualized IRR for the period indicated on Limited Partner invested

capital based on investment contributions, distributions and unrealized value of the underlying investments, after

management fees, expenses and carried interest. Fund level IRRs are based on aggregate Limited Partner cash flows, and

this blended return may differ from that of individual Limited Partners. As a result, certain funds may generate accrued

performance revenues with a blended Net IRR that is below the preferred return hurdle for that fund.

(8) “ASF” stands for AlpInvest Secondaries Fund, “ACF” stands for AlpInvest Co-Investment Fund, and “SMAs” are

Separately Managed Accounts. “ASF - SMAs” and “ACF - SMAs” reflect the aggregated portfolios of investments held by

SMAs within the relevant strategy, which invest alongside the relevant ASF or ACF (as applicable). Strategic SMAs reflect

the aggregated portfolios of co-investments made by SMAs sourced from the SMA investor’s own private equity fund

investment portfolio. Other SMAs reflect the aggregated portfolios of investments within the relevant strategy that began

making investments in the corresponding time periods. Co-Investments SMAs 2014-2016 does not include two SMAs that

started in 2016 but invested a substantial majority alongside ACF VII. These two SMAs have instead been grouped with

ACF VII - SMAs. An SMA may pursue multiple investment strategies and make commitments over multiple years.

(9) Includes ASF VIII - SMAs, ACF IX - SMAs, AlpInvest Atom Fund, AlpInvest Atom Fund II, all mezzanine investment

portfolios, all ‘clean technology’ private equity investment portfolios, all strategic portfolio finance SMAs, all AlpInvest

senior portfolio lending SMAs, and any state-focused investment mandate portfolios.

(10) For funds marked “NM,” IRR may be positive or negative, but is not considered meaningful because of the limited time

since initial investment and early stage of capital deployment. For funds marked “Neg,” IRR is considered meaningful but

is negative as of reporting period end.

(11) For purposes of aggregation, funds that report in foreign currency have been converted to U.S. dollars at the reporting

period spot rate.

(12) Represents the net accrued performance revenue balance/(giveback obligation) as of the current quarter end. Total Net

Accrued Carry excludes net accrued carry which was retained as part of the sale of MRE on April 1, 2021. There was no

net accrued carry balance for MRE as of September 30, 2025.

Liquidity and Capital Resources

Historical Liquidity and Capital Resources

We have historically required limited capital resources to support the working capital and operating needs of our

business. Our management fees have largely covered our operating costs and all realized performance allocations, after

covering the related compensation, are available for distribution to stockholders. Approximately 95% – 97% of all capital

commitments to our funds are provided by our fund investors, with the remaining amount typically funded by Carlyle, our

senior Carlyle professionals, advisors, and other professionals. We may elect to invest additional amounts in funds focused on

new investment areas. We may also invest in or alongside our funds and may transfer those investments to newly developed

products.

Our Sources of Liquidity

We have multiple sources of liquidity to meet our capital needs, including cash on hand, annual cash flows, accumulated

earnings, cash we receive from our notes offerings, and funds from our senior revolving credit facility, which had $1.0 billion

of available capacity as of September 30, 2025. Although we may consider other financings to invest in growing our business,

such as the $800.0 million senior note offering during the quarter ended September 30, 2025, we believe these sources will be

sufficient to fund our capital needs for at least the next twelve months. We believe we will meet longer-term expected future

cash requirements and obligations through a combination of existing cash and cash equivalent balances, cash flow from

operations, accumulated earnings, and amounts available for borrowing from our senior revolving credit facility or other

financings.

Cash and cash equivalents. Cash and cash equivalents were approximately $2.2 billion at September 30, 2025. However,

a portion of this cash is allocated for specific business purposes, including, but not limited to: (i) performance allocations and

incentive fee related cash that has been received but not yet distributed as performance allocations and incentive fee related

compensation and amounts owed to non-controlling interests, (ii) proceeds received from realized investments that are allocable

to non-controlling interests, and (iii) regulatory capital.

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Corporate Treasury Investments. These 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.

After deducting cash amounts allocated to the specific requirements mentioned above, the remaining cash, cash

equivalents, and corporate treasury investments (if any), was approximately $2.1 billion as of September 30, 2025. This

remaining amount will be used towards our primary liquidity needs, as outlined in the next section. This amount does not take

into consideration ordinary course of business payables and reserves for specific business purposes.

Senior Revolving Credit Facility. The capacity under the amended and restated revolving credit facility is $1.0 billion,

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 amended and restated 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 (5.23% at September 30, 2025). As of September 30, 2025, there were no amounts

outstanding under the senior revolving credit facility.

The senior revolving credit facility is unsecured. We are required to maintain management fee-earning assets (as defined

in the amended and restated senior revolving credit facility) of at least $156.9 billion and a total leverage ratio of less than 4.0 to

1.0, in each case, tested on a quarterly basis. Non-compliance with any of the financial or non-financial covenants without cure

or waiver would constitute an event of default under the senior revolving credit facility. An event of default resulting from a

breach of certain financial or non-financial covenants may result, at the option of the lenders, in an acceleration of the principal

and interest outstanding, and a termination of the senior revolving credit facility. The senior revolving credit facility also

contains other customary events of default, including defaults based on events of bankruptcy and insolvency, nonpayment of

principal, interest or fees when due, breach of specified covenants, change in control, and material inaccuracy of representations

and warranties.

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 the Company 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%. As of September 30, 2025, there was no borrowing outstanding under the Global Credit Revolving Credit Facility.

CLO Borrowings. For certain of our 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 or other financing arrangements.

The Company’s CLO borrowings were $337.0 million at September 30, 2025. The CLO borrowings 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. As of September 30, 2025, $318.3 million of these borrowings

are secured by investments attributable to The Carlyle Group Inc. See Note 6, Borrowings, to the condensed consolidated

financial statements included in this Quarterly Report on Form 10-Q for more information on our CLO borrowings.

Senior Notes. The Company and certain indirect finance subsidiaries of the Company have issued senior notes, on which

interest is payable semi-annually, as discussed below. The senior notes are unsecured and unsubordinated obligations of the

respective subsidiary and are fully and unconditionally guaranteed, jointly and severally, by the Company and each of the

Carlyle Holdings partnerships. The indentures governing each of the senior notes contain customary covenants that, among

other things, limit the issuers’ and the guarantors’ ability, subject to certain exceptions, to incur indebtedness secured by liens

on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets.

The notes also contain customary events of default. All or a portion of the notes may be redeemed at our option, in whole or in

part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the notes.

If a change of control repurchase event occurs, the notes are subject to repurchase at the repurchase price as set forth in the

notes.

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3.500% Senior Notes. In September 2019, Carlyle Finance Subsidiary L.L.C. issued $425.0 million of 3.500% senior

notes due September 19, 2029 at 99.841% of par.

5.050% Senior Notes. In September 2025, the Company issued $800.0 million of 5.050% senior notes due September 19,

2035 at 99.767% of par.

5.625% Senior Notes. In March 2013, Carlyle Holdings II Finance L.L.C. issued $400.0 million of 5.625% senior notes

due March 30, 2043 at 99.583% of par. In March 2014, an additional $200.0 million of these notes were issued at 104.315% of

par and are treated as a single class with the already outstanding $400.0 million aggregate principal amount of these notes.

5.650% Senior Notes. In September 2018, Carlyle Finance L.L.C. issued $350.0 million of 5.650% senior notes due

September 15, 2048 at 99.914% of par.

Subordinated Notes. In May and June 2021, Carlyle Finance L.L.C. issued $500.0 million aggregate principal amount of

4.625% subordinated notes due May 15, 2061. The Subordinated Notes are unsecured and subordinated obligations of the issuer

and are fully and unconditionally guaranteed, 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. The indentures

governing the Subordinated Notes contain customary covenants that, among other things, limit the issuers’ and the guarantors’

ability, subject to certain exceptions, to incur indebtedness ranking on a parity with the Subordinated Notes or indebtedness

ranking junior to the Subordinated Notes secured by liens on voting stock or profit participating equity interests of their

subsidiaries or merge, consolidate or sell, transfer or lease all or substantially all of their assets. The Subordinated Notes also

contain customary events of default. All or a portion of the notes may be redeemed at our 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.

Obligations of CLOs. Loans payable of the Consolidated Funds primarily comprise amounts due to holders of debt

securities issued by the CLOs. We are not liable for any loans payable 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 consists of cash and cash equivalents, corporate loans, corporate bonds and other securities.

Realized Performance Allocation Revenues. Another source of liquidity we may use to meet our capital needs is the

realized performance allocation revenues generated by our investment funds. Performance allocations are generally realized

when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return.

For certain funds, performance allocations are realized once all invested capital and expenses have been returned to the fund’s

investors and the fund’s cumulative returns are in excess of the preferred return. Incentive fees earned on our CLO vehicles

generally are paid upon the dissolution of such vehicles.

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Our accrued performance allocations by segment as of September 30, 2025, gross and net of accrued giveback

obligations, are set forth below:

(Dollars in millions)

(1) Accrued incentive fees are excluded from net accrued performance revenues.

(2) Accrued performance allocations from NGP funds are presented as principal equity method investments in the condensed

consolidated balance sheets.

The net accrued performance revenues attributable to The Carlyle Group Inc., excluding realized amounts, related to our

carry funds and our other vehicles as of September 30, 2025, as well as the carry fund appreciation (depreciation), is set forth

below by segment (Dollars in millions):

(1) Appreciation/(Depreciation) represents unrealized gain/(loss) for the period on a total return basis before fees and expenses. The

percentage of return is calculated as: ending remaining investment fair market value plus net investment outflow (sales proceeds

minus net purchases) minus beginning remaining investment fair market value divided by beginning remaining investment fair

market value. Amounts are fund only, and do not include coinvestments.

Realized Principal Investment Income. Another source of liquidity we may use to meet our capital needs is the realized

principal investment income generated by our equity method investments and other principal investments. Principal investment

income is realized when we redeem all or a portion of our investment or when we receive or are due cash income, such as

dividends or distributions. Certain of the investments attributable to The Carlyle Group Inc. (excluding certain general partner

interests, certain strategic investments, and investments in certain CLOs) may be sold at our discretion as a source of liquidity.

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Investments as of September 30, 2025 consist of the following:

(Dollars in millions)

(1) Strategic equity method investment in NGP Management and investments in NGP general partners - accrued performance allocations.

See Note 4, Investments, to our condensed consolidated financial statements.

Our investments as of September 30, 2025 can be further attributed as follows (Dollars in millions):

(1) Excludes our strategic equity method investment in NGP Management and investments in NGP general partners - accrued

performance allocations.

(2) Includes the Company’s indirect investment in Fortitude through Carlyle FRL, a Carlyle-affiliated investment fund, as discussed in

Note 4, Investments, to the condensed consolidated financial statements. This investment had a carrying value of $739.5 million as

of September 30, 2025.

(3) Of the $337.0 million in total CLO borrowings as of September 30, 2025 and as disclosed in Note 6, Borrowings, to the condensed

consolidated financial statements, $318.3 million are collateralized by investments attributable to The Carlyle Group Inc. The

remaining $18.7 million in total CLO borrowings are collateralized by investments attributable to non-controlling interests.

Our Liquidity Needs

We generally use our working capital and cash flows to invest in growth initiatives, service our debt, fund the working

capital needs of our business and investment funds and return capital to our common stockholders in the form of dividends or

stock repurchases.

In the future, we expect that our primary liquidity needs will be to:

• provide capital to facilitate the growth of our existing business lines;
• provide capital to facilitate our expansion into new, complementary business lines, including acquisitions;
• pay operating expenses, including compensation and compliance costs and other obligations as they arise;
• fund costs of litigation and contingencies, including related legal costs;
• fund the capital investments in our funds;
• fund capital expenditures;
• repay borrowings and related interest costs and expenses;
• pay earn-outs and contingent cash consideration associated with our acquisitions and strategic investments;

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• pay income taxes, including corporate income taxes;
• pay dividends to our common stockholders in accordance with our dividend policy;
• repurchase our common stock and pay any associated taxes; and
• settle tax withholding obligations in connection with net share settlements of equity-based awards.

Common Stockholder Dividends. Under our dividend policy for our common stock, our intention is to pay dividends to

holders of our common stock in an amount of $0.35 per common share on a quarterly basis ($1.40 annually). For U.S. federal

income tax purposes, any dividends we pay generally will be treated as qualified dividend income (generally taxable to U.S.

individual stockholders at capital gain rates) paid by a domestic corporation to the extent paid out of our current or accumulated

earnings and profits, as determined for U.S. federal income tax purposes, with any excess dividends treated as return of capital

to the extent of the stockholder’s basis. The declaration and payment of dividends to holders of our common stock will be at the

sole discretion of our Board of Directors and in compliance with applicable law, and our dividend policy may be changed at any

time.

With respect to dividend year 2025, the Board of Directors has declared a dividend to common stockholders totaling

$378.9 million, or $1.05 per share, consisting of the following:

Common Stock Dividends - Dividend Year 2025

(Dollars in millions, except per share data)

With respect to dividend year 2024, the Board of Directors declared cumulative dividends to common stockholders

totaling $502.7 million, consisting of the following:

Common Stock Dividends - Dividend Year 2024

(Dollars in millions, except per share data)

Dividends to common stockholders paid during the nine months ended September 30, 2025 totaled $379.2 million,

including the amount paid in February 2025 of $0.35 per common share in respect of the fourth quarter of 2024. Dividends to

common stockholders paid during the nine months ended September 30, 2024 totaled $377.8 million, including the amount paid

in March 2024 of $0.35 per common share in respect of the fourth quarter of 2023.

Fund Commitments. Generally, 3% – 5% of all capital commitments to our investment funds are made by Carlyle, our

senior Carlyle professionals, advisors, and other professionals. Carlyle will generally commit up to 1% of capital commitments

related to our carry funds, although we may elect to invest additional amounts in funds focused on new investment areas. We

may, from time to time, exercise our right to purchase additional interests in our investment funds that become available in the

ordinary course of their operations. We expect our senior Carlyle professionals and employees to continue to make significant

capital contributions to our funds based on their existing commitments, and to make capital commitments to future funds

consistent with the level of their historical commitments. We also intend to make investments in our open-end funds and our

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CLO vehicles. Our investments in our European CLO vehicles will comply with the risk retention rules as discussed in “Risk

Retention Rules” later in this section.

A substantial majority of the remaining commitments to our investment funds are expected to be funded by senior Carlyle

professionals, operating executives, and other professionals through our internal co-investment program. Of the $4.0 billion of

unfunded commitments as of September 30, 2025, approximately $3.4 billion is subscribed individually by senior Carlyle

professionals, operating executives, and other professionals, with the balance funded directly by the Company. Approximately

78% of the $4.0 billion of unfunded commitments relate to investment funds in our Global Private Equity segment.

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

placement agent for security offerings and loan originations. We earn fees in connection with these activities and bear the risk

of the sale of such securities and placement of such loans, which may be longer dated. As of September 30, 2025, there were no

material commitments related to the origination and syndication of loans and securities under the Carlyle Global Capital

Markets platform.

Repurchase Program. During the nine months ended September 30, 2025, we paid an aggregate of $225.0 million to

repurchase and retire approximately 4.2 million shares of common stock. In addition, during the nine months ended September

30, 2025, we paid an aggregate of $257.8 million and retired 4.6 million shares of common stock to settle tax withholding

obligations in connection with net share settlements of equity-based awards, for a total of $482.8 million for approximately 8.9

million shares repurchased or withheld this year. As of September 30, 2025, $0.4 billion of repurchase capacity remained under

the share repurchase program, which reflects the cost of common shares repurchased as well as shares settled for tax

withholding payments made by the Company related to the net share settlement of equity-based awards. For further information

on our repurchase program, see Note 13, Equity, to the condensed consolidated financial statements included in this Quarterly

Report on Form 10-Q.

Cash Flows

The significant captions and amounts from our condensed consolidated statements of cash flows, which include the

effects of our Consolidated Funds and CLOs in accordance with U.S. GAAP, are summarized below.

(Dollars in millions)

Net cash used in operating activities. Net cash used in operating activities includes the investment activity of our

Consolidated Funds. Excluding this activity, net cash used in operating activities was primarily driven by our earnings in the

respective periods after adjusting for significant non-cash activity, including non-cash performance allocations and incentive

fees, the related non-cash performance allocations and incentive fee related compensation, non-cash equity-based

compensation, and depreciation, amortization and impairments, all of which are included in earnings. Operating cash inflows

primarily include the receipt of management fees, realized performance allocations and incentive fees, while operating cash

outflows primarily include payments for operating expenses, including compensation and general, administrative and other

expenses.

Cash flows provided by operating activities during the nine months ended September 30, 2025 and 2024, excluding the

activities of our Consolidated Funds, were $972.1 million and $867.3 million, respectively. During the nine months ended

September 30, 2025 and 2024, operating cash inflows primarily included the receipt of management fees and realized

performance allocations and incentive fees, totaling approximately $2.7 billion and $2.8 billion, respectively. These inflows

were offset by payments for compensation and general, administrative and other expenses of approximately $2.0 billion and

$2.0 billion for the nine months ended September 30, 2025 and 2024, respectively, which includes payment of 2024 and 2023

year-end bonuses paid in January 2025 and 2024, respectively.

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Cash used to purchase investments, as well as the proceeds from the sale of such investments, are also reflected in our

operating activities as investments are a normal part of our operating activities. During the nine months ended September 30,

2025, investment proceeds were $664.0 million as compared to investment purchases of $251.1 million. During the nine

months ended September 30, 2024, investment proceeds were $333.3 million as compared to investment purchases of $213.8

million, which included a $115.1 million deferred consideration payment related to our investment in Fortitude.

The net cash provided by operating activities for the nine months ended September 30, 2025 and 2024 also reflects the

investment activity of our Consolidated Funds. For the nine months ended September 30, 2025, purchases of investments by the

Consolidated Funds were $9.0 billion, while proceeds from the sales and settlements of investments by the Consolidated Funds

were $5.2 billion. For the nine months ended September 30, 2024, purchases of investments by the Consolidated Funds were

$5.0 billion, while proceeds from the sales and settlements of investments by the Consolidated Funds were $3.7 billion.

Net cash used in investing activities. Our investing activities generally reflect cash used for fixed assets, software for

internal use, and corporate treasury investments. For the nine months ended September 30, 2025 and 2024, cash used in

investing activities principally reflects purchases of fixed assets of $57.4 million and $51.0 million, respectively.

Net cash provided by financing activities. Excluding the activities of our Consolidated Funds, net cash provided by (used

in) financing activities during the nine months ended September 30, 2025 and 2024 was $6.1 million and $(888.6) million,

respectively. During the nine months ended September 30, 2025, we issued $800.0 million of 5.050% senior notes due 2035,

and we made no borrowings or repayments under the revolving credit facilities. During the nine months ended September 30,

2024, we borrowed and subsequently repaid an aggregate of $10.4 million under the Global Credit Revolving Credit Facility.

Dividends paid to our common stockholders were $379.2 million and $377.8 million for the nine months ended

September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025 and 2024, we paid $482.8 million

and $478.8 million, respectively, to repurchase and retire 8.9 million and 10.9 million shares, respectively, which included

shares retired in connection with the net share settlement of equity-based awards. During the nine months ended September 30,

2024, we paid $68.8 million in January 2024, representing the final annual installment of the deferred consideration payable to

former Carlyle Holdings unitholders in connection with the Conversion. For more information, see Note 9 to the consolidated

financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

The net borrowings (payments) on loans payable by our Consolidated Funds during the nine months ended September 30,

2025 and 2024 were $2,755.1 million and $1,220.5 million, respectively. Contributions from non-controlling interest holders

were $599.1 million and $219.2 million for the nine months ended September 30, 2025 and 2024, respectively, which relate

primarily to contributions from the non-controlling interest holders in Consolidated Funds. For the nine months ended

September 30, 2025 and 2024, distributions to non-controlling interest holders were $308.1 million and $73.0 million,

respectively, which relate primarily to distributions to the non-controlling interest holders in Consolidated Funds.

Our Balance Sheet

Total assets were $27.1 billion at September 30, 2025, an increase of $4.0 billion compared to December 31, 2024,

primarily attributable to an increase in Investments in Consolidated Funds of $3.3 billion and an increase in Cash and cash

equivalents of $1.0 billion, partially offset by a decrease in Investments, including Performance allocations of $0.4 billion. The

decrease in Investments, including Performance allocations was primarily attributable to a decrease in Accrued performance

allocations, primarily driven by depreciation in CAP V and CP VII, as well as the impact of realizations in CPP II, partially

offset by appreciation in our AlpInvest funds and CP VIII. Refer to “—Cash Flows” in Part I, Item 2 of this Quarterly Report

on Form 10-Q for details on the increase in Cash and cash equivalents.

Total liabilities were $20.2 billion at September 30, 2025, an increase of $3.5 billion from December 31, 2024. The

increase in liabilities was primarily attributable to an increase in Loans payable of Consolidated Funds of $2.3 billion, an

increase in Debt obligations of $0.8 billion, an increase in Other liabilities of Consolidated Funds of $0.3 billion, and an

increase in Deferred revenue of $0.2 billion, partially offset by a decrease in Accrued compensation and benefits of $0.2 billion.

The increase in Debt obligations was driven by our issuance of $800.0 million of 5.050% senior notes due 2035 during the third

quarter of 2025. The increase in Deferred revenue was driven by the receipt of management fees not yet recognized as revenue.

The decrease in Accrued compensation and benefits was primarily attributable to a decrease in Accrued performance

allocations, on which Accrued performance allocations and incentive fee related compensation is based, and the payment of

year-end bonuses.

The assets and liabilities of the Consolidated Funds are generally held within separate legal entities and, as a result, the

assets of the Consolidated Funds are not available to meet our liquidity requirements and similarly the liabilities of the

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Consolidated Funds are non-recourse to us. In addition, as previously discussed, the CLO term loans generally are secured by

the Company’s investment in the CLO, have a general unsecured interest in the Carlyle entity that manages the CLO, and do

not have recourse to any other Carlyle entity. The number of funds that we consolidate fluctuates period to period. In general,

the number of funds we are required to consolidate has been increasing as a result of the impacts of capital from our balance

sheet invested in new products and our indirect interest in funds through our indirect investment in Fortitude.

Our balance sheet without the effect of the Consolidated Funds can be seen in Note 17, Supplemental Financial

Information, to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. At

September 30, 2025, our total assets without the effect of the Consolidated Funds were $15.9 billion, including cash and cash

equivalents of $2.2 billion and net accrued performance revenues of $2.6 billion.

Unconsolidated Entities

Certain of our funds have entered into lines of credit secured by their investors’ unpaid capital commitments or by a

pledge of the equity of the underlying investment. These lines of credit are used primarily to reduce the overall number of

capital calls to investors or for working capital needs. In certain instances, however, they may be used for other investment

related activities, including serving as bridge financing for investments. The degree of leverage employed varies among our

funds.

Off-balance Sheet Arrangements

In the normal course of business, we enter into various off-balance sheet arrangements including sponsoring and owning

limited or general partner interests in consolidated and non-consolidated funds, entering into derivative transactions, and

entering into guarantee arrangements. We also have ongoing capital commitment arrangements with certain of our consolidated

and non-consolidated funds. We do not have any other off-balance sheet arrangements that would require us to fund losses or

guarantee target returns to investors in any of our other investment funds.

For further information regarding our off-balance sheet arrangements, see Note 2, Summary of Significant Accounting

Policies, and Note 8, Commitments and Contingencies, to the condensed consolidated financial statements included in this

Quarterly Report on Form 10-Q.

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Contractual Obligations

The following table sets forth information relating to our contractual obligations as of September 30, 2025 on a

consolidated basis and on a basis excluding the obligations of the Consolidated Funds:

(Dollars in millions)

(1) The table above assumes that no prepayments are made on the senior and subordinated notes and that the outstanding balances, if any, on the senior

credit facility and Global Credit Revolving Credit Facility are repaid on the maturity dates of credit facilities. The CLO term loans are included in the

table above based on the earlier of the stated maturity date or the date the CLO is expected to be dissolved. See Note 6, Borrowings, to the condensed

consolidated financial statements for the various maturity dates of our borrowings.

(2) The interest rates on the debt obligations as of September 30, 2025 consist of: 3.500% on $425.0 million of senior notes, 5.050% on $800.0 million of

senior notes, 5.650% on $350.0 million of senior notes, 5.625% on $600.0 million of senior notes, 4.625% on $500.0 million of subordinated notes,

and a range of approximately 3.56% to 10.12% for our CLO term loans. Interest payments assume that no prepayments are made and loans are held

until maturity with the exception of the CLO term loans, which are based on the earlier of the stated maturity date or the date the CLO is expected to be

dissolved.

(3) These obligations represent our estimate of amounts to be paid on the contingent cash obligations associated with our acquisition of Abingworth. The

payment obligations are unsecured obligations of the Company or a subsidiary thereof, subordinated in right of payment to indebtedness of the

Company and its subsidiaries, and do not bear interest.

(4) We lease office space in various countries around the world, including our largest offices in Washington, D.C., New York City, London, Amsterdam,

and Hong Kong, which have non-cancelable lease agreements expiring in various years through 2036. The amounts in this table represent the minimum

lease payments required over the term of the lease.

(5) These obligations generally represent commitments by us to fund a portion of the purchase price paid for each investment made by our funds. These

amounts are generally due on demand and are therefore presented in the less than one year category. A substantial majority of these investments is

expected to be funded by senior Carlyle professionals and other professionals through our internal co-investment program. Of the $4.0 billion of

unfunded commitments to the funds, approximately $3.4 billion is subscribed individually by senior Carlyle professionals, advisors and other

professionals, with the balance funded directly by the Company. Additionally, these obligations include accrued giveback that has been realized but not

yet paid to the respective funds, a portion of which is payable by current and former senior Carlyle professionals.

(6) In connection with our initial public offering, we entered into a tax receivable agreement with the limited partners of the Carlyle Holdings partnerships

whereby we agreed to pay such limited partners 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. From and

after the consummation of the Conversion, former holders of Carlyle Holdings partnership units do not have any rights to payments under the tax

receivable agreement except for payment obligations pre-existing at the time of the Conversion with respect to exchanges that occurred prior to the

Conversion. These obligations are more than offset by the future cash tax savings that we are expected to realize.

(7) These obligations represent amounts due to holders of debt securities issued by the consolidated CLO vehicles. These obligations include interest to be

paid on debt securities issued by the consolidated CLO vehicles. Interest payments assume that no prepayments are made and loans are held until

maturity. For debt securities with rights only to the residual value of the CLO and no stated interest, no interest payments were included in this

calculation. Interest payments on variable-rate debt securities are based on interest rates in effect as of September 30, 2025, at spreads to market rates

pursuant to the debt agreements, and range from 1.65% to 11.83%.

(8) These obligations represent commitments of the CLOs to fund certain investments. These amounts are generally due on demand and are therefore

presented in the less than one year category.

Excluded from the table above are liabilities for uncertain tax positions of $36.7 million at September 30, 2025 as we are

unable to estimate when such amounts may be paid.

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Contingent Cash Payments For Business Acquisitions and Strategic Investments

We have certain contingent cash obligations associated with our acquisition of Abingworth, which are accounted for as

compensation expense, and are accrued over the service period. If earned, payments are made in the quarter following the

performance year to which the payments relate. The contingent cash obligations relate to future incentive payments of up to

$130.0 million that are payable upon the achievement of certain performance targets during 2025 through 2028, which is the

maximum amount that could be paid as of September 30, 2025. Through September 30, 2025, we paid $2.7 million related to

these contingent obligations.

In connection with our acquisition of Carlyle Aviation Partners, we had contingent cash payments related to an earn-out

of up to $150.0 million that were payable upon the achievement of certain revenue and earnings performance targets during

2020 through 2025. We previously entered into a termination and settlement agreement with respect to the earn-out and made a

final payment of $1.0 million during the first quarter of 2025 for total earn-out payments of $124.7 million.

Risk Retention Rules

We will continue to comply with the risk retention rules governing CLOs issued in Europe for which we are a sponsor,

which require a combination of capital from our balance sheet, commitments from senior Carlyle professionals and/or third-

party financing.

Guarantees

See Note 8, Commitments and Contingencies, to the condensed consolidated financial statements included in this

Quarterly Report on Form 10-Q for information related to all of our material guarantees.

Indemnifications

In many of our service contracts, we agree to indemnify the third-party service provider under certain circumstances. The

terms of the indemnities vary from contract to contract, and the amount of indemnification liability, if any, cannot be

determined and has not been included in the table above or recorded in our condensed consolidated financial statements as of

September 30, 2025. See Note 8, Commitments and Contingencies, to the condensed consolidated financial statements included

in this Quarterly Report on Form 10-Q for information related to indemnifications.

Contingent Obligations (Giveback)

Carried interest is ultimately realized when: (1) an underlying investment is profitably disposed of, (2) certain costs borne

by the limited partner investors have been reimbursed, (3) the fund’s cumulative returns are in excess of the preferred return,

and (4) we have decided to collect carry rather than return additional capital to limited partner investors. Realized carried

interest may be required to be returned by us 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. See Note 8, Commitments and Contingencies, to the condensed consolidated financial

statements included in this Quarterly Report on Form 10-Q for additional information related to our contingent obligations

(giveback).

Other Contingencies

In the ordinary course of business, we are a party to litigation, investigations, inquiries, employment-related matters,

disputes and other potential claims. We discuss certain of these matters in Note 8, Commitments and Contingencies, to the

condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

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Carlyle Common Stock

A rollforward of our common stock outstanding for the nine months ended September 30, 2025 is as follows:

Shares of The Carlyle Group Inc. common stock issued during the nine months ended September 30, 2025 relate to the

vesting of the Company’s restricted stock units and shares issued and delivered in connection with our equity method

investment in NGP. Shares of The Carlyle Group Inc. common stock repurchased during the nine months ended September 30,

2025 relate to shares repurchased and subsequently retired as part of our share repurchase programs. Shares of The Carlyle

Group Inc. common stock issued and repurchased/retired during the nine months ended September 30, 2025 include shares

retired as part of the net share settlement of equity-based awards.

The total shares as of September 30, 2025 as shown above exclude approximately 0.3 million net common shares,

representing the vesting of restricted stock units subsequent to September 30, 2025 that will participate in the common

shareholder dividend that will be paid on November 19, 2025.

Critical Accounting Policies and Estimates

The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires our

management to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses,

and related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information,

information currently available to us and on various other assumptions management believes to be reasonable under the

circumstances. Actual results could vary from those estimates and we may change our estimates and assumptions in future

evaluations. Changes in these estimates and assumptions may have a material effect on our results of operations and financial

condition.

Other than the Restructuring as discussed in Note 4, Investments, which resulted in the impairment of our investment in

NGP, there have been no material changes in the critical accounting estimates since those discussed in our Annual Report on

Form 10-K for the year ended December 31, 2024.

Our primary exposure to market risk is related to our role as general partner or investment advisor to our investment

funds and the sensitivities to movements in the fair value of their investments, including the effect on management fees,

incentive fees and investment income, including performance allocations. Although our investment funds share many common

themes, each of our asset management asset classes runs its own investment and risk management processes, subject to our

overall risk tolerance and philosophy. The investment process of our investment funds involves a comprehensive due diligence

approach, including review of reputation of shareholders and management, company size and sensitivity of cash flow

generation, business sector and competitive risks, portfolio fit, exit risks and other key factors highlighted by the deal team. Key

investment decisions are generally subject to approval by both the fund-level managing directors, as well as the investment

committee, which generally comprises one or more of the three founding partners as well as senior investment professionals.

Once an investment in a portfolio company has been made, our fund teams closely monitor the performance of the portfolio

company, generally through frequent contact with management and the receipt of financial and management reports.

There was no material change in our market risks during the nine months ended September 30, 2025. For additional

information, refer to our Annual Report on Form 10-K for the year ended December 31, 2024.

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Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the

Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that information required to be

disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods

specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management,

including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding

required disclosures. In designing disclosure controls and procedures, our management necessarily was required to apply its

judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any

disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and

there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any

controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of

achieving the desired control objectives.

Our management, with the participation of our principal executive officer and principal financial officer, has evaluated

the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by

this report. Based upon that evaluation and subject to the foregoing, our principal executive officer and principal financial

officer concluded that, as of the end of the period covered by this report, the design and operation of our disclosure controls and

procedures were effective to accomplish their objectives at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f)

under the Exchange Act) during the fiscal quarter ended September 30, 2025 that have materially affected, or that are

reasonably likely to materially affect, our internal control over financial reporting.

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For a discussion of our potential risks and uncertainties, see the information under Item 1A. “Risk Factors” in our Annual

Report on Form 10-K for the year ended December 31, 2024.