The Carlyle Group CG Form 10-Q filing Q1 FY2026

Unaudited Condensed Consolidated Financial Statements – March 31, 2026 and 2025:

Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025 5

Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025 6

Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2026 and 2025 7

Condensed Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2026 and 2025 8

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025 9

Notes to the Condensed Consolidated Financial Statements 11

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 60

Item 3. Quantitative and Qualitative Disclosures About Market Risk 111

Item 4. Controls and Procedures 111

PART II – OTHER INFORMATION

Item 1. Legal Proceedings 113

Item 1A. Risk Factors 113

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 113

Item 3. Defaults Upon Senior Securities 113

Item 4. Mine Safety Disclosures 113

Item 5. Other Information 113

Item 1. Financial Statements

See accompanying notes.

Substantially all revenue is earned from affiliates of the Company. See accompanying notes.

See accompanying notes.

See accompanying notes.

See accompanying notes.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

1. Organization

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

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

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

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

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

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

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

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

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

of these products.

2. Summary of Significant Accounting Policies

Basis of Presentation

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

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

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

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

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

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

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

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

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

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

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

condensed consolidated statements of operations.

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

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

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

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

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

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

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

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

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

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

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

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

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

presented.

Principles of Consolidation

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

beneficiary of variable interest entities (“VIEs”).

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

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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

variable interest.

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

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

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

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

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

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

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

receive returns from an entity.

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

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

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

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

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

by the Company.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Investments in Unconsolidated Variable Interest Entities

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

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

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

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

interests in these non-consolidated VIEs were as follows:

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

2026 and December 31, 2025.

Use of Estimates

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

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

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

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

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

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

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

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

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

material.

Revenue Recognition

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

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

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

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

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

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

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

performance obligation.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Fund Management Fees

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

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

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

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

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

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

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

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

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

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

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

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

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

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

period is resolved.

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

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

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

• For closed-end carry funds in the Global Private Equity and Global Credit segments:
  • During the fund’s commitment period, generally 1.0% to 2.0% of limited partners’ capital commitments in

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

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

cost or fair value of invested capital.

• For carry funds and other fund vehicles in the Carlyle AlpInvest segment:
  • During the fund’s commitment period, generally 0.25% to 1.5% of the vehicle’s capital commitments, and
  • Following the expiration of the commitment fee period, generally 0.25% to 1.5% on (i) the net invested

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

unrealized investments.

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

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

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

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

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

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

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

1.0% to 1.25% of net asset value.

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

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

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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

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

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

defined in the respective fund limited partnership agreements.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Incentive Fees

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

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

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

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

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

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

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

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

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

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

Investment Income (Loss), including Performance Allocations

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

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

including CLOs.

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

Company is entitled (commonly known as carried interest).

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

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

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

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

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

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

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

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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

difference could be material.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

employees of its equity method investee, and impairment charges.

Interest Income

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

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

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

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

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

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

Consolidated Funds in the accompanying condensed consolidated statements of operations.

Credit Losses

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

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

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

into the following pools of receivables:

• Reimbursable fund expenses receivables,
• Management fee receivables,
• Incentive fee receivables,
• Transaction fee receivables,
• Portfolio fee receivables, and
• Notes receivable.

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

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

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

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

affiliated investment funds.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Compensation and Benefits

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

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

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

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

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

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

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

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

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

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

requisite service period on a straight-line basis.

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

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

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

incremental compensation expense.

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

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

of equity method investees.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

sheets.

Income Taxes

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

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

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

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

Non-controlling Interests

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

subsidiary are recorded as a direct charge to equity.

Earnings Per Common Share

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

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

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

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

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

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

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

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

Fair Value of Financial Instruments

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

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

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

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

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

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

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

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

judgment applied in determining fair value.

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

used in the determination of fair values, as follows:

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

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

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

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

impact the quoted price.

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

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

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

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

observable inputs.

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

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

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

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

derivatives where the fair value is based on unobservable inputs.

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

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

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

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

the financial instrument.

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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

investments.

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

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

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

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

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

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

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

is described below:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

instruments.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

broker quotations from market makers and third-party dealers.

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

analyses, as described above.

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

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

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

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

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

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

general partners.

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

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

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

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

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

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

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

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

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

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

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

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

performance allocations.

Investments, at Fair Value

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

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

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

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

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

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

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

securities.

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

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

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

Equity Method Investments

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

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

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

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

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

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

recoverable.

Cash and Cash Equivalents

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Cash and Cash Equivalents Held at Consolidated Funds

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

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

Restricted Cash

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

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

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

Deposits and other in the condensed consolidated balance sheets.

Corporate Treasury Investments

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

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

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

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

interest and other income.

Derivative Instruments

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

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

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

Securities Sold Under Agreements to Repurchase

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

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

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

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

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

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

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

Fixed Assets

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

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

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

the lease terms or the life of the asset, and three to seven years for other fixed assets. Fixed assets are reviewed for impairment

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

Leases

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

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

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

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

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

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

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

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Intangible Assets and Goodwill

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

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

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

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

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

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

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

accumulated other comprehensive income (loss).

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

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

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

The Company recorded no impairment losses of intangible assets or goodwill during the three months ended March 31,

2026 and 2025.

Deferred Revenue

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

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

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

Accumulated Other Comprehensive Income (Loss)

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Foreign Currency Translation

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

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

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

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

the condensed consolidated statements of operations.

Recent Accounting Pronouncements

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

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

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

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

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

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

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

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

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

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

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

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

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

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

its condensed consolidated financial statements.

3. Fair Value Measurement

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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

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

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

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

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

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

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

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

excluded from the tabular Level III rollforward disclosures.

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

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

represent compensation for services.

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

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

AlpInvest segment.

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

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

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

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

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

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

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

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

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

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

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

excluded from the tabular Level III rollforward disclosures.

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

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

represent compensation for services.

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

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

AlpInvest segment.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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

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

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

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

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

December 31, 2025 for more information.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

consolidation of one fund during the three months ended March 31, 2025.

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

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

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

consolidated statements of operations.

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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

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

compensation for services.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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

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

compensation for services.

4. Investments

Investments consist of the following:

Accrued Performance Allocations

The components of accrued performance allocations are as follows:

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

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

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

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

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

follows:

Principal Equity Method Investments, Excluding Performance Allocations

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

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

Company’s equity method investments in NGP.

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

Company’s investment in Fortitude.

Investment in Fortitude

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

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

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

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

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

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

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

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

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

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

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

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

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

Investment in NGP

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

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

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

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

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

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

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

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

and operating costs.

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

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

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

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

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

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

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

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

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

respectively.

Principal Investments in CLOs and Other Investments

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

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

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

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

$37.5 million, respectively.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Investment Income (Loss)

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

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

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

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

management fees and principal investment income:

Three Months Ended March 31, 2026

(Dollars in millions)

Global Private Equity Carlyle Partners VII, L.P. $(723.1)

Three Months Ended March 31, 2025

(Dollars in millions)

Global Private Equity Carlyle Partners VII, L.P. $234.1

Global Private Equity Carlyle Asia Partners V, L.P. (227.8)

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

Investments of Consolidated Funds

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

beneficiary. During the three months ended March 31, 2026, the Company became the primary beneficiary of two additional

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

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

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

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

period presented.

Interest and Other Income of Consolidated Funds

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

Net Investment Income (Loss) of Consolidated Funds

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

5. Borrowings

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

Company’s debt obligations consist of the following:

Senior Credit Facility

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

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

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

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

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

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

March 31, 2026, the interest rate was 4.76%). The Company made no borrowings under the revolving credit facility during the

three months ended March 31, 2026 and 2025, and there was no amount outstanding as of March 31, 2026.

Global Credit Revolving Credit Facility

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

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

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

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

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

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

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

of 1.00%. During the three months ended March 31, 2026 and 2025, the Company made no borrowings under the Global Credit

Revolving Credit Facility. As of March 31, 2026, there was no borrowing outstanding under the Global Credit Revolving Credit

Facility.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

CLO Borrowings

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

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

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

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

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

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

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

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

CLO Repurchase Agreements

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

pledged as collateral.

Senior Notes

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

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

notes (Dollars in millions):

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

value hierarchy.

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

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

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

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

in senior notes previously issued.

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

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

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

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

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

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

interest on the principal amounts being redeemed.

Subordinated Notes

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

redemption.

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

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

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

expense on the Subordinated Notes.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Debt Covenants

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

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

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

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

Loans Payable of Consolidated Funds

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

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

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

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

Level III within the fair value hierarchy.

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

approximates fair value.

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

CLOs.

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

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

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

billion, respectively.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

6. Accrued Compensation and Benefits

Accrued compensation and benefits consist of the following:

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

7. Commitments and Contingencies

Capital Commitments

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

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

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

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

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

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

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

March 31, 2026, the Company had no material commitments related to the origination and syndication of loans and securities

under the Carlyle Global Capital Markets platform.

Guaranteed Loans

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

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

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

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

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

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

to be remote. As of March 31, 2026, the Company had no material outstanding guarantees under the credit facilities.

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

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Contingent Obligations

Giveback

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

giveback obligation attributable to the Company is $61.2 million.

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

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

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

and former senior Carlyle professionals.

Other

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

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

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

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

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

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

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

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

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

Legal Matters

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

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

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

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

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

The Tax Receivable Agreement Matter

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

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

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

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

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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

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

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

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

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

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

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

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

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

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

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

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

General

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Company has recorded.

Indemnifications

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

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

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

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

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

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

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

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

this guarantee to be remote.

Risks and Uncertainties

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

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

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

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

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

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

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

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

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

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

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

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

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

including among others currency fluctuations and natural disasters.

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

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

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

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

same risks associated with the Company’s U.S. investments as well as additional risks, such as fluctuations in foreign currency

exchange rates, unexpected changes in regulatory requirements, heightened risk of political and economic instability,

difficulties in managing non-U.S. investments, potentially adverse tax consequences, and the burden of complying with a wide

variety of foreign laws.

Furthermore, Carlyle is exposed to economic risk concentrations related to certain large investments as well as

concentrations of investments in certain industries and geographies.

Additionally, the Company encounters credit risk. Credit risk is the risk of default by a counterparty in the Company’s

investments in debt securities, loans, leases, and derivatives that result from a borrower’s, lessee’s, or derivative counterparty’s

inability or unwillingness to make required or expected payments. The Company is subject to credit risk should a financial

institution be unable to fulfill its obligations.

The Company considers cash, cash equivalents, securities, receivables, principal equity method investments, accounts

payable, accrued expenses, other liabilities, loans, senior notes, assets, and liabilities of Consolidated Funds and contingent and

other consideration for acquisitions to be its financial instruments. Except for the senior notes, subordinated notes, and

compensatory contingent and other consideration for acquisitions, the carrying amounts reported in the condensed consolidated

balance sheets for these financial instruments equal or closely approximate their fair values. The fair value of the senior and

subordinated notes is disclosed in Note 5, Borrowings.

8. Related Party Transactions

Due from Affiliates and Other Receivables, Net

The Company had the following due from affiliates and other receivables at March 31, 2026 and December 31, 2025:

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Reimbursable expenses and other receivables from certain of the unconsolidated funds and portfolio companies relate to

advisory fees receivable and expenses paid on behalf of these entities. These costs generally represent costs related to the

pursuit of actual or proposed investments, professional fees, and expenses associated with the acquisition, holding, and

disposition of the investments. The affiliates are obligated at the discretion of the Company to reimburse the expenses. Based

on management’s determination, the Company may accrue and charge interest on amounts due from affiliate accounts at

interest rates ranging up to 7.05% as of March 31, 2026. The accrued and charged interest to the affiliates was not significant

for any period presented.

Notes receivable includes loans that the Company has provided to certain unconsolidated funds to meet short-term

obligations to purchase investments. Notes receivable as of March 31, 2026 and December 31, 2025 also include interest-

bearing loans of $39.0 million and $19.5 million, respectively, to certain eligible Carlyle employees, which excludes Section 16

officers and other members of senior management, to finance their investments in certain Carlyle sponsored funds. These

advances accrue interest at rates which range between 5.05% and 5.75% as of March 31, 2026.

These receivables are assessed regularly for collectability. Management fee receivable amounts determined to be

uncollectible are recorded as a reduction in revenue in the condensed consolidated statements of operations. For all other

receivables, amounts determined to be uncollectible are charged directly to general, administrative and other expenses in the

condensed consolidated statements of operations. A corresponding allowance for doubtful accounts is recorded and such

amounts were not significant for any period presented.

Due to Affiliates

The Company has recorded obligations for amounts due to certain of its affiliates. The Company periodically offsets

expenses it has paid on behalf of its affiliates against these obligations. The Company had the following due to affiliates

balances at March 31, 2026 and December 31, 2025:

In connection with the Company’s initial public offering, the Company entered into a tax receivable agreement with the

limited partners of the Carlyle Holdings partnerships whereby certain subsidiaries of the Partnership agreed to pay to the limited

partners of the Carlyle Holdings partnerships involved in any exchange transaction 85% of the amount of cash tax savings, if

any, in U.S. federal, state and local income tax realized as a result of increases in tax basis resulting from exchanges of Carlyle

Holdings Partnership units for common units of The Carlyle Group L.P.

Other Related Party Transactions

Aircraft Transactions

Entities controlled by our co-founders own aircraft that may be used for the Company’s business in the ordinary course of

its operations. The hourly rates that the Company pays for the use of these aircraft are based on current market rates for

chartering private aircraft of the same type. For the three months ended March 31, 2026 and 2025, the Company incurred fees

for the use of these aircraft of $0.3 million and $0.4 million, respectively. All payments were paid directly to the manager of the

aircraft, and a significant portion of the payments were ultimately paid to or were for the benefit of certain co-founders.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Other Transactions

Senior Carlyle professionals and employees are permitted to participate in co-investment entities that invest in Carlyle

funds or alongside Carlyle funds. In many cases, participation is limited by law to individuals who qualify under applicable

legal requirements. These co-investment entities generally do not require senior Carlyle professionals and employees to pay

management fees or performance allocations, however, Carlyle professionals and employees are required to pay their portion of

partnership expenses.

Carried interest income from certain funds can be distributed to senior Carlyle professionals and employees on a current

basis, but is subject to repayment by the subsidiary of the Company that acts as general partner of the fund in the event that

certain specified return thresholds are not ultimately achieved. The senior Carlyle professionals and certain other investment

professionals have personally guaranteed, subject to certain limitations, the obligation of these subsidiaries in respect of this

general partner obligation. Such guarantees are several and not joint and are limited to a particular individual’s distributions

received.

The Company does business with some of its portfolio companies; all such arrangements are on a negotiated basis.

Substantially all revenue is earned from affiliates of Carlyle.

9. Income Taxes

The effective tax rate for the three months ended March 31, 2026 and 2025 primarily comprised the 21% U.S. federal

corporate income tax rate and the tax effects of equity-based compensation deductions, disallowed executive compensation, and

non-controlling interest. For the three months ended March 31, 2026, the effective tax rate included the impact of a one-time tax

expense related to a change in the tax classification of a consolidated subsidiary.

As of March 31, 2026 and December 31, 2025, the Company had federal, state, local and foreign taxes payable of

$134.9 million and $141.4 million, respectively, which is recorded as a component of accounts payable, accrued expenses and

other liabilities on the accompanying condensed consolidated balance sheets.

In the normal course of business, the Company is subject to examination by federal and certain state, local and foreign tax

regulators. As of March 31, 2026, the Company’s U.S. federal income tax returns for the years 2022 through 2024 are generally

open under the normal three-year statute of limitations and therefore subject to examination. State and local tax returns are

generally subject to audit from 2020 to 2024. Foreign tax returns are generally subject to audit from 2011 to 2024. Certain of

the Company’s affiliates are currently under audit by federal, state and foreign tax authorities. The Company does not believe

that the outcome of the audits will require it to record material reserves for uncertain tax positions or that the outcome will have

a material impact on the condensed consolidated financial statements.

On October 8, 2021, the OECD introduced a 15% global minimum tax under the Pillar Two GloBE model rules. On

January 5, 2026, the OECD announced a “side-by-side” system under which U.S.-parented groups would be able to elect to be

exempt from certain Pillar Two provisions. Additional guidance on the “side-by-side” system and implementation of such

system remain subject to further discussions and clarifications from the OECD and local implementation by each OECD

member country. Pillar Two has not had a material impact to the Company’s provision for income taxes; however, the

Company will continue to monitor as additional guidance is released by the OECD, OECD member countries based on their

enacted law changes, and other standard-setting bodies.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

10. Non-controlling Interests in Consolidated Entities

The components of the Company’s non-controlling interests in consolidated entities are as follows:

The components of the Company’s non-controlling interests in income (loss) of consolidated entities are as follows:

11. Earnings Per Common Share

Basic and diluted net income (loss) per common share are calculated as follows:

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The weighted-average common shares outstanding, basic and diluted, are calculated as follows:

The Company applies the treasury stock method to determine the dilutive weighted-average common shares represented

by the unvested restricted stock units. Also included in the determination of dilutive weighted-average common shares are

issuable common shares associated with the Company’s investment in NGP and performance-vesting restricted stock units. As

of March 31, 2026, all such awards are antidilutive and excluded from the computation of diluted earnings per share given the

net loss attributable to common stockholders.

12. Equity

Share Repurchase Program

The Board of Directors reset the total repurchase authorization of the Company’s previously approved share repurchase

program to $2.0 billion in shares of the Company’s common stock, effective as of February 26, 2026. Under the share

repurchase program, shares of the Company’s common stock may be repurchased from time to time in open market

transactions, in privately negotiated transactions, or otherwise, including through Rule 10b5-1 plans. The timing and actual

number of shares of common stock repurchased will depend on a variety of factors, including legal requirements and price,

economic, and market conditions. In addition to repurchases of common stock, the share repurchase program is used for the

payment of tax withholding amounts upon net share settlement of equity-based awards granted pursuant to our Equity Incentive

Plan or otherwise based on the value of shares withheld that would have otherwise been issued to the award holder. The share

repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. As of

March 31, 2026, the Company had repurchased approximately $0.1 billion of common shares under the reset program, and $1.9

billion of repurchase capacity remained available. The following table presents the Company’s shares that have been

repurchased or retired as a result of net share settlement of equity-based awards during the three months ended March 31, 2026

and 2025. Dollar amounts exclude the impact of excise taxes.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Dividends

The table below presents information regarding the quarterly dividends on the common shares, which were made at the

sole discretion of the Board of Directors of the Company.

The Board of Directors will take into account general economic and business conditions, as well as the Company’s

strategic plans and prospects, business and investment opportunities, financial condition and obligations, legal, tax, and

regulatory restrictions, other constraints on the payment of dividends by the Company to its common stockholders or by

subsidiaries to the Company, and other such factors as the Board of Directors may deem relevant. In addition, the terms of the

Company’s credit facility provide certain limits on the Company’s ability to pay dividends.

13. Equity-Based Compensation

The Carlyle Group Inc. Amended and Restated 2012 Equity Incentive Plan (the “Equity Incentive Plan,” initially adopted

in May 2012 and as most recently amended and restated on May 29, 2024) is a source of equity-based awards permitting the

Company to grant to Carlyle employees, directors and consultants non-qualified options, share appreciation rights, common

shares, restricted stock units and other awards based on the Company’s shares of common stock. A total of 58,800,000 shares of

common stock are authorized for the grant of awards under the Equity Incentive Plan, of which a total of 17,523,365 shares of

the Company’s common stock remain available for grant as of March 31, 2026.

A summary of the status of the Company’s non-vested equity-based awards as of March 31, 2026 and a summary of

changes for the three months ended March 31, 2026, are presented below:

(1) Includes shares reserved for issuance upon settlement of dividend-equivalent rights carried by certain restricted stock units concurrently

with the settlement of the restricted stock units for shares.

(2) Includes 2,469,837 shares that were retired in connection with the net share settlement of equity-based awards. The Company paid

$139.8 million of taxes related to the net share settlement of equity-based awards during the three months ended March 31, 2026, which

is included within financing activities in the condensed consolidated statements of cash flows.

The Company recorded equity-based compensation expense, net of forfeitures, for restricted stock units of $119.8 million

and $103.5 million for the three months ended March 31, 2026 and 2025, respectively, with $17.5 million and $18.6 million of

corresponding deferred tax benefits, respectively. As of March 31, 2026, the total unrecognized equity-based compensation

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

expense related to unvested restricted stock units was $736.0 million, which is expected to be recognized over a weighted-

average term of 2.4 years.

14. Segment Reporting

Carlyle conducts its operations through three reportable segments:

Global Private Equity – The Global Private Equity segment advises buyout, growth, real estate, and infrastructure &

natural resources funds. The segment also includes the NGP Carry Funds advised by NGP.

Global Credit – The Global Credit segment advises funds and vehicles that pursue investment strategies including

insurance solutions, liquid credit, opportunistic credit, direct lending, asset-backed finance, aviation finance,

infrastructure credit, cross-platform credit products, and global capital markets.

Carlyle AlpInvest – The Carlyle AlpInvest segment advises global private equity programs that pursue secondary

purchases and financing of existing portfolios, managed co-investment programs, and primary fund investments.

The Company’s reportable business segments are differentiated by their various investment focuses and strategies.

Overhead costs are generally allocated based on cash-based compensation and benefits expense for each segment. The

Company’s earnings from its investment in NGP are presented in the respective operating captions within the Global Private

Equity segment.

Distributable Earnings. Distributable Earnings, or “DE,” is a key performance benchmark used in the Company’s

industry and is evaluated regularly by the chief operating decision maker (“CODM”), which is our Chief Executive Officer, in

making resource deployment and compensation decisions and in assessing performance of the Company’s three reportable

segments. The CODM also uses DE in budgeting, forecasting, and the overall management of the Company’s segments. The

CODM believes that reporting DE is helpful to understanding the Company’s business and that investors should review the

same supplemental financial measure that the CODM uses to analyze the Company’s segment performance. DE is intended to

show the amount of net realized earnings without the effects of the consolidation of the Consolidated Funds. DE is derived from

the Company’s segment reported results and is used to assess performance.

Distributable Earnings differs from income (loss) before provision for income taxes computed in accordance with U.S.

GAAP in that it includes certain tax expenses associated with certain foreign performance revenues (composed of performance

allocations and incentive fees), and does not include unrealized performance allocations and related compensation expense,

unrealized principal investment income, equity-based compensation expense, net income (loss) attributable to non-Carlyle

interests in consolidated entities, or charges (credits) related to Carlyle corporate actions and non-recurring items that affect

period-to-period comparability and are not reflective of the Company’s operational performance. Charges (credits) related to

Carlyle corporate actions and non-recurring items include: charges associated with the Conversion, charges (credits) associated

with acquisitions, dispositions or strategic investments, changes in the tax receivable agreement liability, amortization and any

impairment charges associated with acquired intangible assets, transaction costs associated with acquisitions and dispositions,

charges associated with earn-outs and contingent consideration including gains and losses associated with the estimated fair

value of contingent considerations issued in conjunction with acquisitions or strategic investments, impairment charges

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

terminations and employee severance, and non-recurring items that affect period-to-period comparability and are not reflective

of the Company’s operating performance. Management believes the inclusion or exclusion of these items provides investors

with a meaningful indication of the Company’s core operating performance.

Fee Related Earnings. Fee Related Earnings, or “FRE,” is a component of DE and is used to assess the ability of the

business to cover base compensation and operating expenses from total fee revenues. FRE adjusts DE to exclude net realized

performance revenues, realized principal investment income, and net interest (interest income less interest expense). Fee

Related Earnings includes fee related performance revenues and related compensation expense. Fee related performance

revenues represent the realized portion of performance revenues that are measured and received on a recurring basis, are not

dependent on realization events, and which have no risk of giveback.

Asset information by segment is not disclosed because this information is not used by the CODM to make resource

deployment decisions or evaluate the performance of the Company’s segments.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The following tables present the financial data for the Company’s three reportable segments for the three months ended

March 31, 2026:

(1) General, administrative, and other indirect expenses primarily comprised professional fees, rent and other office expenses, IT expenses, travel and

entertainment expenses, and fundraising costs.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The following tables present the financial data for the Company’s three reportable segments for the three months ended

March 31, 2025:

(1) General, administrative, and other indirect expenses primarily comprised professional fees, rent and other office expenses, IT expenses, travel and

entertainment expenses, and fundraising costs.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes for the

three months ended March 31, 2026 and 2025.

(a)The Revenues adjustment principally represents unrealized performance revenues, unrealized principal investment

income (loss) (including Fortitude), revenues earned from the Consolidated Funds which were eliminated in

consolidation to arrive at the Company’s total revenues, adjustments for amounts attributable to non-controlling

interests in consolidated entities, adjustments related to expenses associated with the investments in NGP Management

and its affiliates that are included in operating captions or are excluded from the segment results, and adjustments to

reflect the reimbursement of certain costs incurred on behalf of Carlyle funds on a net basis, as detailed below:

The following table reconciles the total segments fund level fee revenue to the most directly comparable U.S. GAAP

measure, the Company’s consolidated fund management fees, for the three months ended March 31, 2026 and 2025.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

(1) Adjustments represent the reclassification of NGP management fees from principal investment income, the

reclassification of fee related performance revenues from certain products, management fees earned from

Consolidated Funds which were eliminated in consolidation to arrive at the Company’s fund management fees,

and the reclassification of certain amounts included in portfolio advisory fees, net and other in the segment

results that are included in interest and other income in the U.S. GAAP results.

The following table reconciles the total segments transaction and portfolio advisory fees, net and other to the most

directly comparable US. GAAP measure, the Company’s consolidated transaction and portfolio advisory fees, net for

the three months ended March 31, 2026 and 2025.

(1) Adjustments represent the reclassification of other income from Interest and other income in the U.S. GAAP

results and certain underwriting fees from Principal investment income.

(b)The Expenses adjustment represents the elimination of intercompany expenses of the Consolidated Funds payable to the

Company, the inclusion of equity-based compensation, certain tax expenses associated with realized performance

revenues related compensation, unrealized performance revenues related compensation, adjustments related to expenses

associated with the investment in NGP Management that are included in operating captions, adjustments to reflect the

reimbursement of certain costs incurred on behalf of Carlyle funds on a net basis, changes in the tax receivable

agreement liability, and charges and credits associated with Carlyle corporate actions and non-recurring items, as

detailed below:

(c)The Other Income (Loss) adjustment results from the Consolidated Funds that were eliminated in consolidation to

arrive at the Company’s total Other Income (Loss).

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

(d)The following table is a reconciliation of Income (Loss) Before Provision for Income Taxes to Distributable Earnings

and to Fee Related Earnings:

(1) Equity-based compensation for the three months ended March 31, 2026 and 2025 included amounts that are presented in

principal investment income (loss) and general, administrative and other expenses in the Company’s condensed consolidated

statements of operations.

(2) Includes charges (credits) related to Carlyle corporate actions and non-recurring items that affect period-to-period

comparability and are not reflective of the Company’s operating performance.

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

(4) Adjustments to performance revenues and principal investment income (loss) relate to (i) unrealized performance allocations

net of related compensation expense and unrealized principal investment income, which are excluded from the segment

results, (ii) amounts earned from the Consolidated Funds, which are eliminated in the U.S. GAAP consolidation but are

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

included in the segment results, (iii) amounts attributable to non-controlling interests in consolidated entities, which are

excluded from the segment results, (iv) the reclassification of NGP performance revenues, which are included in principal

investment income in the U.S. GAAP financial statements, (v) the reclassification of fee related performance revenues, which

are included in fund level fee revenues in the segment results, and (vi) the reclassification of tax expenses associated with

certain foreign performance revenues. Adjustments to principal investment income (loss) also include the reclassification of

earnings for the investments in NGP Management and its affiliates to the appropriate operating captions for the segment

results, the exclusion of charges associated with the investment in NGP Management and its affiliates from the segment

results and the exclusion of the principal investment loss from dilution of the indirect investment in Fortitude.

15. Subsequent Events

Subsequent events have been evaluated through the date the condensed consolidated financial statements were issued.

There have been no subsequent events that require recognition or disclosure through the date the condensed consolidated

financial statements were issued, except as disclosed below and elsewhere in these condensed consolidated financial statements.

In April 2026, the Company’s Board of Directors declared a quarterly dividend of $0.35 per share of common stock to

common stockholders of record at the close of business on May 18, 2026, payable on May 28, 2026.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

16. Supplemental Financial Information

The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the

Company’s financial position as of March 31, 2026 and December 31, 2025 and results of operations for the three months

ended March 31, 2026 and 2025. The supplemental statement of cash flows is presented without effects of the Consolidated

Funds.

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

The Carlyle Group Inc.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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, 2025.

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.

• 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 March 31, 2026, our

Global Private Equity segment had $159.0 billion in AUM and $99.1 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 March 31, 2026, our Global Credit segment had

$209.5 billion in AUM and $166.4 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

March 31, 2026, our Carlyle AlpInvest segment had $106.9 billion in AUM and $67.9 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 14, 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.

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 $475 billion as of March 31, 2026 for each of our three global business segments (in billions):

Note: All amounts shown represent total assets under management as of March 31, 2026, 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), Peru Buyout (CPF), and MENA Buyout 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) and Renewable Energy (CRSEF) funds.

(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) and Carlyle AlpInvest Private Markets Secondaries (CAPS) funds.

Trends Affecting Our Business

The commencement of hostilities in the Middle East and the closure of the Strait of Hormuz have not yet manifested as

visible economic damage. However, risks to the global economy remain elevated as the conflict in the Middle East persists, and

those risks will continue to rise for as long as the Strait remains effectively shut. Approximately 20% of global crude oil, 20%

of global liquid natural gas (“LNG”), 30% of global helium supplies, and 50% of global stocks of urea, the most widely used

nitrogenous fertilizer, transit the Strait. For the industrial sector, energy looms large, but for many businesses beyond this

sector, disruptions to supplies of petrochemicals, metals, helium, and other byproducts of LNG processing are just as

significant. In the U.S., which is less reliant on imports that traverse the Strait, impacts seem most likely to manifest in higher

prices, which could put downward pressure on consumption demand and slow overall growth. For much of the rest of the

world, impacts could be more substantial, with physical shortages of energy and supplies resulting in outright demand

destruction. Global supply shortages also have significant implications for the AI buildout, and AI-related capex growth

intentions could be pared back materially should the conflict become prolonged.

In equity markets, investors have grown skeptical about returns to AI capex: the Magnificent 7 stocks declined 12%

during the quarter, though recent layoff announcements (presumably in an effort to offset these AI-related capex costs) and

soaring cloud revenues have driven a recovery rally that has more than erased the drawdown, lifting the group above its

October 2025 market peak to new all-time highs (as of May 8, 2026). The quarter was also marked by distinct pre- and post-

conflict market dynamics. In the U.S., prior to February 27, 2026, investors rotated away from mega-cap technology and

software toward “real economy” sectors: industrials were up 14%, while SaaS stocks were down 30% from the start of the year

through that date, as new AI capabilities raised concerns about incumbent business models. After February 27, 2026, however,

that rotation partially reversed in response to the energy shock, and industrials underperformed through quarter-end. Since the

end of the first quarter of 2026, both “real economy” sectors and enterprise software (which is seen as less vulnerable to AI

disruption) have performed well, while SaaS and cloud services providers continue to lag. Overall, the S&P 500 ended the

quarter down 4.6%, though significant upgrades to “consensus” earnings estimates coupled with market optimism for an end to

the Middle East conflict have driven the index to record highs in May. This recent rally is a symptom of the difficulty investors

face in hedging and quantifying geopolitical risk. In contrast to other discrete shocks, such as the failure of SVB in 2023,

markets face less clarity in mapping out the trajectory of evolving geopolitical developments and so tend to “look through”

them. Globally, Japan’s Nikkei and Europe’s Euro Stoxx 50 started the quarter up 16.9% and 6%, respectively, prior to the

outbreak of hostilities, but ultimately finished the quarter up just 1.4% and down 3.8%, respectively. The shock also reaffirmed

the notion that bonds no longer hedge equity market risk. Bonds have now sold off with stocks during each major shock of the

last 12 months, and the correlation between the monthly returns of stocks and bonds has moved from -25% to +50% since 2022.

As the “natural” hedge of the traditional 60/40 portfolio continues to dissolve, investors may choose to rotate towards private

markets to achieve greater diversification.

The U.S. economy retained underlying momentum during the quarter. The labor market did not show obvious signs of

deterioration, and our measure of real final demand—a proxy for real GDP net of foreign trade and inventories—grew at a 2.7%

annualized rate, a result consistent with 5.7% annual growth in S&P 1500 revenue. Business spending continued to advance at

an 11.1% annualized rate, led by AI-related investment. That strength is not limited to capex associated with data centers, which

continues to grow at prodigious rates, but also reflects enterprise IT budgets, as the need to devise and implement AI strategies

has moved technology spending from “nice to have” to a top corporate priority. Much of the spending thus far has been

concentrated in data capture, storage, and analytics, with companies also reporting significant value from dynamic pricing

algorithms that have allowed them to optimize prices across customers and products. At the same time, portfolio-wide energy

prices increased, while stronger transportation and logistics volumes suggested that some activity may have been pulled

forward in anticipation of higher prices and/or outright shortages. For many businesses, the challenge extends beyond energy to

supplies of petrochemicals, metals, helium, and other byproducts of LNG processing, with many focused on “taking price” to

defend margins in the face of escalating input costs. To date, our data are consistent with a short-term price shock and distortion

in volumes and shipments rather than sustained inflation. However, it is important to appreciate that energy and durable

consumer goods have been the expenditure categories doing the most to keep a lid on overall inflation. A reversal here seems

likely to intensify households’ affordability concerns as the supply impulse transitions from disinflationary to inflationary.

Although these pressures have not yet resulted in visible economic damage, there were signs of growing divergence in

consumer activity towards the end of Q1 2026, including a sharp deceleration in experiences spending and softer demand

among lower-income households, which could become more pronounced if current supply disruptions persist.

For much of the rest of the world, the question is not simply pricing output appropriately, but curtailing production

schedules in advance of looming shortages. In Europe, our proprietary portfolio data suggest domestic demand remained

positive through the first quarter of the year. However, the risks associated with the conflict appear more acute outside the

United States, as the region is more exposed to imported energy and other industrial inputs that could become subject to

physical shortages if disruption persists. Our data indicated that the signs of recovery in Europe’s industrial sector, which were

apparent earlier in the quarter, receded in March, with a sharp deceleration in German factory orders and weakness in

manufacturing despite massive public investment outlays. By contrast, China experienced firm retail sales and sustained

momentum in industrial output despite ongoing weakness in its property sector. China imported more than 1.7 million barrels

per day of oil from Iran in March, defying expectations that it would be among the economies hardest hit by the conflict.

Energy availability appears to have been an important differentiator in supporting continued manufacturing activity. Elsewhere

in Asia, Taiwan and South Korea continued to benefit from the AI buildout and strong demand for electronic components, but

those tailwinds do not insulate them from shortages of helium, LNG, and other inputs critical to semiconductor production. If

the Strait remains blocked, initial cutbacks are likely to focus on lower-value-added chips, but a prolonged disruption could

begin to weigh more materially on broader AI-related capex and industrial output. In India, growth similarly appears resilient to

date, but risks to the outlook are significant. India is one of the economies in the region most reliant on oil and gas imports, and

continued disruption to supply could not only harm domestic consumption but could also result in production shutdowns across

its industrial sector.

Global M&A activity was strong during the quarter. Transactions totaled $1.4 trillion, a 25% increase over Q1 2025.

Leveraged buyout (“LBO”) activity, however, was not as robust. GPs announced LBOs totaling $126 billion in the first quarter

of 2026, a deceleration both quarter-over-quarter (-21%) and year-over-year (-3.5%). Underlying transaction counts remained

relatively subdued at 434 deals, a 9% decrease from the same quarter a year ago, with the top 10 transactions accounting for

nearly 70% of total deal volume. Broader market volatility also impacted buyout exits in the quarter. Aggregate exit volumes of

$94 billion were down -15% quarter-over-quarter and were 17% lower than in the first quarter of 2025. There were 21

operating company IPOs on U.S. exchanges in the first quarter, consistent with Q4 2025 in terms of transaction count, but

substantially lower (-37%) in terms of proceeds. Offerings skewed noticeably smaller, with only one transaction generating

proceeds over $1 billion. Broader market volatility related to the Middle East conflict appears to have curtailed appetite for

public offerings, with only three operating company IPOs on U.S. exchanges in March. Continued equity market volatility tied

to ongoing geopolitical risks may push out exit timing across the private equity industry this year. Lower liquidity and delayed

distributions, however, could produce attractive opportunities for our secondaries and portfolio finance platforms.

Fears related to software exposure and AI-disintermediation risk drove credit spreads wider in the quarter across both

broadly syndicated (“BSL”) and direct lending markets, particularly for lower-rated borrowers: in BSL markets, B-flat spreads

widened 100 basis points in February and March relative to January. However, broader credit risks still appear contained, as

defaults plus distressed exchanges in the leveraged loan market finished the quarter at a 3.48% rate, well below their 2024-2025

average of 4.27%, while private credit defaults stood at 2.73%, modestly above their 2024-2025 average of 2.21%. Recent

credit events appear idiosyncratic rather than systemic, while concerns regarding software exposure do not fully reflect the

significant dispersion across portfolios, vintages, and software subsectors, some of which appear materially less vulnerable to

AI-related disruption than broader market sentiment suggests. Within the CLO market, widened liability spreads have put

pressure on new CLO creation and reset activity as compared to recent years, while underlying loan prices have remained

relatively resilient. The pullback in demand flows and normalization of spreads from 2025’s post-GFC lows could create

opportunities for private credit businesses to deploy capital on more favorable terms.

In the first quarter of 2026, we deployed $10.0 billion across our platform and in contrast to the deceleration in LBO

activity in the broader market, we realized proceeds of $12.2 billion in our traditional carry funds, including $6.9 billion in

realized proceeds in our U.S. buyout funds. We had $13.0 billion in inflows in the first quarter of 2026 and $52.5 billion in

inflows over the last twelve months as of March 31, 2026. Inflows over the last twelve months include $7.7 billion in our

evergreen wealth products, which had $19.0 billion in assets under management as of March 31, 2026, a nearly 80% increase

from one year ago.

Our carry fund portfolio appreciated 1% in the first quarter. Within our Global Private Equity segment in the first quarter,

our corporate private equity funds depreciated (2)% as market price decreases in certain publicly traded positions offset

appreciation elsewhere, our infrastructure & natural resources funds appreciated 9% driven by our international energy funds

and appreciation in the NGP Carry funds, 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 March 31, 2026, appreciated 4% in the first

quarter. Carry funds in our Carlyle AlpInvest segment were flat in the first quarter.

Notable Developments

Dividends

In April 2026, our Board of Directors declared a quarterly dividend of $0.35 per share to common stockholders of record

at the close of business on May 18, 2026, payable on May 28, 2026.

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. 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

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

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 7,

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

$264.6 million, $181.8 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 $88.5 million of the $264.6 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.

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 in March 2025 (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. Our CLOs generate interest income primarily from investments in bonds

and loans, inclusive of amortization of discounts, and generate other income from consent and amendment fees.

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 beyond the Company’s capital invested in the Consolidated

Funds. 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 does not generally have a material impact on 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.

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

or market conditions (see Note 13, 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 and other consolidated funds, 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 11, 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

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 and evergreen products (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).

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.

(1) Ending balances as of March 31, 2026 and 2025 exclude $21.2 billion and $25.6 billion, respectively, of Pending Fee-earning AUM for

which fees have not yet been activated.

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

(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, reinsurance and other 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 evergreen 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 and evergreen products;

(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.

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.

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

(1) Inflows generally reflects the impact of gross fundraising, reinsurance and other 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 evergreen products, 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”) funds and Carlyle AlpInvest Private Markets Secondaries (“CAPS”) funds, and (f) certain other

structured credit and asset-backed finance products. As of March 31, 2026, our total AUM and Fee-earning AUM included

$115.8 billion and $111.5 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 $36.7 billion and $32.3 billion,

respectively, as of March 31, 2026.

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

treated as fee related performance revenues are excluded from these metrics. As of March 31, 2026, our total AUM included

$230.7 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 March 31, 2026, our Consolidated Funds

represent approximately 4% of our AUM; 2% of our management fees for the three months ended March 31, 2026; and 11% of

our total investment income or loss on an unconsolidated basis for the three months ended March 31, 2026.

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 March 31, 2026, the

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

$12.0 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 condensed 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 and may impact net income

attributable to the common stockholders.

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.

Consolidated Results of Operations

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

the three months ended March 31, 2026 and 2025. Our 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.

NM - Not meaningful

Revenues

Fund management fees. Fund management fees decreased $2.1 million for the three months ended March 31, 2026, as

compared to the three months ended March 31, 2025, primarily due to the following:

(1) Total decrease 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. Fee-earning AUM as of

March 31, 2026 increased in Carlyle AlpInvest and Global Credit, and remained flat in Global Private Equity as compared to

March 31, 2025, resulting in greater diversification in our fund management fee base across our three business segments.

Fund management fees included transaction and portfolio advisory fees, net of rebate offsets, of $49.3 million and

$76.7 million for the three months ended March 31, 2026 and 2025, respectively. These fees primarily comprise capital markets

fees generated by Carlyle Global Capital Markets. 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) was $(616.7) million and $159.8 million for the three months ended

March 31, 2026 and 2025, respectively. The components of Investment income (loss) are included in the following table:

Performance allocations. Performance allocations by segment for the three months ended March 31, 2026 and 2025

comprised the following:

Performance allocations for the three months ended March 31, 2026 included the following:

• In the Global Private Equity segment, for the three months ended March 31, 2026, reversals of Performance

allocations were primarily attributable to depreciation in CP VII, driven primarily by a decrease in the market prices

of certain public investments and the impact of preferred return, partially offset by accruals of Performance

allocations resulting from appreciation in our international energy funds and CJP IV.

• In the Global Credit segment, for the three months ended March 31, 2026, Performance allocation accruals were

primarily driven by appreciation in CCOF III and SASOF V.

• In the Carlyle AlpInvest segment, for the three months ended March 31, 2026, Performance allocation reversals

were primarily driven by depreciation in our co-investment funds, partially offset by appreciation in our secondaries

& portfolio finance funds.

Performance allocations for the three months ended March 31, 2025 included the following:

• In the Global Private Equity segment, for the three months ended March 31, 2025, performance allocation accruals

were primarily driven by appreciation in CP VII, CP VI, and our infrastructure & natural resources strategy, partially

offset by the reversal of Performance allocations in CAP V reflecting portfolio depreciation largely driven by

publicly traded portfolio companies and the impact of preferred returns.

• In the Global Credit segment, for the three months ended March 31, 2025, Performance allocation accruals were

primarily driven by appreciation in SASOF V and CCOF II.

• In the Carlyle AlpInvest segment, for the three months ended March 31, 2025, performance allocation accruals were

primarily driven by appreciation in our co-investment funds.

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

landscape, and our investment activity.

Principal investment income (loss). Principal investment income for the three months ended March 31, 2026 was

primarily attributable to performance allocations on funds managed by NGP. Principal investment loss for the three months

ended March 31, 2025 was primarily attributable to an impairment charge of $92.5 million and a $38.0 million reduction in

NGP accrued carry, both of which negatively impacted the three months ended March 31, 2025 as a result of the restructuring

of the terms of our strategic investment in NGP (see Note 4, Investments, for more information).

Interest and other income of Consolidated Funds. Interest and other income of Consolidated Funds increased $46.3

million for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, primarily driven

by an increase in interest income from our consolidated CLOs.

Expenses

Compensation and benefits. Total compensation and benefits decreased $514.3 million for the three months ended March

31, 2026, as compared to the three months ended March 31, 2025. The decrease for the three months ended March 31, 2026

relative to the comparable prior year period is primarily attributable to a decrease in Performance allocations and incentive fee

related compensation of $539.3 million, which was primarily driven by a decrease in Performance allocations, on which

Performance allocations and incentive fee related compensation is based. This was partially offset by an increase in Equity-

based compensation of $16.3 million, primarily driven by stock awards granted in December 2025 and February 2026 to further

align leadership with company performance.

Interest and other expenses of Consolidated Funds. Interest and other expenses of Consolidated Funds increased $52.9

million for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, primarily

attributable to higher interest expense related to the consolidated CLOs and higher interest expense related to a collateralized

fund obligation in the Carlyle AlpInvest segment that was consolidated in the third quarter of 2025.

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:

Net investment income (loss) of Consolidated Funds for the three months ended March 31, 2026 included losses of

$34.9 million from our consolidated CLOs, with the remaining activity primarily attributable to unrealized losses on an

investment in a consolidated infrastructure fund in Global Private Equity. Through March 31, 2026, the cumulative unrealized

investment loss recognized with respect to this investment attributable to the Company was approximately $175 million, which

will be realized upon the disposition of the fund’s investment, which we currently expect will occur in 2026.

Substantially all net investment income (loss) of Consolidated Funds, together with interest and other income of

Consolidated Funds and interest and other expenses of Consolidated Funds, is attributable to the related funds’ limited partners

or CLO investors. Accordingly, such amounts have no material impact on net income attributable to the Company beyond the

Company’s capital invested in the Consolidated Funds.

Provision (benefit) for income taxes. Our provision (benefit) for income taxes was $(37.1) million and $12.4 million for

the three months ended March 31, 2026 and 2025, respectively. Our effective tax rate was approximately 21% and 7% for the

three months ended March 31, 2026 and 2025, respectively. The effective tax rate for the three months ended March 31, 2026

and 2025 primarily comprised the 21% U.S. federal corporate income tax rate and the tax effects of equity-based compensation

deductions, disallowed executive compensation, and non-controlling interest. For the three months ended March 31, 2026, the

effective tax rate included the impact of a one-time tax expense related to a change in the tax classification of a consolidated

subsidiary.

As of March 31, 2026 and December 31, 2025, the Company had federal, state, local, and foreign taxes payable of

$134.9 million and $141.4 million, respectively, which is recorded as a component of accounts payable, accrued expenses and

other liabilities in the accompanying condensed consolidated balance sheets.

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

controlling interests in consolidated entities was $(9.7) million for the three months ended March 31, 2026, as compared to

$28.6 million for the three months ended March 31, 2025. These amounts are primarily related to the net earnings of the

Consolidated Funds attributable to the related fund’s limited partners or CLO investors for each period, 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 and giveback obligations. The net

income (loss) of our Consolidated Funds, after eliminations, attributable to non-controlling interests was $(2.5) million and $8.0

million for the three months ended March 31, 2026 and 2025, 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

months ended March 31, 2026 and 2025. 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, infrequently occurring or unusual events, and non-recurring items that affect period-to-period comparability and are not

reflective of the Company’s operating performance.

The following table shows our total segment DE and FRE for the three months ended March 31, 2026 and 2025.

The following table sets forth our total segment revenues for the three months ended March 31, 2026 and 2025.

The following table sets forth our total segment expenses for the three months ended March 31, 2026 and 2025.

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.

(1) Equity-based compensation for the three months ended March 31, 2026 and 2025 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.

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

(4) Adjustments to performance revenues and principal investment income (loss) relate to (i) unrealized performance allocations net of

related compensation expense and unrealized principal investment income, which are excluded from 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.

Distributable Earnings for our reportable segments are as follows:

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.

Global Private Equity

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

(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.

Distributable Earnings

Distributable Earnings decreased $115.7 million for the three months ended March 31, 2026, as compared to the three

months ended March 31, 2025. The following table provides the components of the changes in Distributable Earnings for the

three months ended March 31, 2026:

Realized net performance revenues. Realized net performance revenues decreased $106.8 million for the three months

ended March 31, 2026, as compared to the three months ended March 31, 2025. Realized net performance revenues for the

three months ended March 31, 2026 were primarily attributable to realizations in CRP VIII and CIEP I. Realized net

performance revenues for the three months ended March 31, 2025 were primarily attributable to realizations in CPP II, CIEP I,

and CETP IV. While overall exit activity increased for the three months ended March 31, 2026, as compared to the three

months ended March 31, 2025, the mix of exits was more concentrated in funds not yet realizing performance revenues.

Fee Related Earnings

Fee Related Earnings decreased $1.6 million for the three months ended March 31, 2026, as compared to the three

months ended March 31, 2025. The following table provides the components of the changes in Fee Related Earnings for the

three months ended March 31, 2026:

Fee Revenues. Total fee revenues decreased $4.3 million for the three months ended March 31, 2026, as compared to the

three months ended March 31, 2025, due to the following:

Fund management fees increased slightly for the three months ended March 31, 2026 as compared to the three months

ended March 31, 2025, as the activation of fees in CRP X in the second quarter of 2025 was offset by exit activity in funds on

which management fees are based on invested capital and step-downs in CIEP II and CP VII.

The decrease in Portfolio advisory and transaction fees, net and other for the three months ended March 31, 2026 as

compared to the three months ended March 31, 2025 was primarily due to a decrease in transaction fees. For the three months

ended March 31, 2025, transaction fees were positively impacted by the acquisition of a healthcare investment across our U.S.,

Europe, and Asia buyout funds. 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.

Cash-based compensation and benefits expense. Cash-based compensation and benefits expense decreased $9.4

million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to a

decrease in cash bonus accruals, partially offset by the impact of increased headcount.

General, administrative and other indirect expenses. General, administrative and other indirect expenses increased $5.2

million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to

unfavorable foreign currency remeasurement of $3.1 million due to the U.S. dollar strengthening in the quarter.

Fee-earning AUM

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

period.

(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.

The table below provides the period to period rollforward of Fee-earning AUM in our Global Private Equity segment.

(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 was $99.1 billion at March 31, 2026, a decrease of 2% from $101.4 billion at December 31, 2025. The

net decrease was due to:

• Outflows of $3.3 billion, which were driven by realizations in funds that charge fees on invested capital, notably in

CP VII and CRP IX.

Offsetting this decrease were:

• Inflows of $1.1 billion, primarily driven by investments in our evergreen funds which charge fees on net asset value,

as well as investment activity in our U.S. real estate funds which charge fees on invested capital.

Fee-earning AUM was $99.1 billion at March 31, 2026, a slight increase from $98.7 billion at March 31, 2025. The net

increase was due to:

• Inflows of $12.3 billion, primarily driven by our U.S. real estate funds, including the activation of management fees

in CRP X, as well as investments in CPI, which charges fees on net asset value; and

• Positive foreign exchange activity of $0.6 billion, primarily from the translation of our EUR-denominated funds to

USD.

Offsetting these increases were:

• Outflows of $12.5 billion driven by realizations in funds that charge fees on invested capital, notably in CP VII, CEP

V, CRP IX, and the NGP energy funds, the expiration of fees in CP VI during the period, and a fee basis step-down

in CIEP II.

Total AUM

The table below provides the period to period rollforward of Total AUM in our Global Private Equity segment.

(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 evergreen 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, 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 $159.0 billion at March 31, 2026, which comprised $119.1 billion of investments at fair value and $40.0

billion of available capital. Approximately 11% of the fair value as of March 31, 2026 was publicly traded, and approximately

68% was aged four or more years. Total AUM decreased 3% from $163.5 billion at December 31, 2025. The net decrease was

due to:

• Outflows of $6.6 billion, primarily driven by realizations in our U.S. buyout funds.

Offsetting this decrease were:

• Inflows of $2.2 billion, driven by new capital raised in U.S. buyout coinvestments and U.S. real estate products; and
• Market activity of $0.2 billion, driven by appreciation of $0.9 billion from our international energy funds, $0.7

billion from the NGP energy funds, and $0.5 billion from our Japan buyout funds, offset by depreciation of $0.8

billion from our Asia buyout funds, $0.6 billion from our Europe buyout funds, and $0.5 billion from our U.S.

buyout funds.

Fund Performance Metrics

Fund performance information for our significant investment funds, which we generally define as those with at least $1.0

billion in capital commitments, 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.

*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 March 31, 2026.

**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 March 31, 2026. 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 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 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, ACCD 3, 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,

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, NGP SRA II, 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, CPP II, and CPOCP.

Global Credit

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

Distributable Earnings

Distributable Earnings decreased $12.3 million for the three months ended March 31, 2026, as compared to the three

months ended March 31, 2025. The following table provides the components of the changes in Distributable Earnings for the

three months ended March 31, 2026:

Fee Related Earnings

Fee Related Earnings decreased $11.0 million for the three months ended March 31, 2026, as compared to the three

months ended March 31, 2025. The following table provides the components of the changes in Fee Related Earnings for the

three months ended March 31, 2026:

Fee Revenues. Fee revenues decreased $5.2 million for the three months ended March 31, 2026, as compared to the three

months ended March 31, 2025, due to the following:

The increase in Fund management fees for the three months ended March 31, 2026 as compared to the three months

ended March 31, 2025 was primarily attributable to an increase in management fee base in our direct lending business and

CTAC.

The decrease in Portfolio advisory and transaction fees, net and other fees for the three months ended March 31, 2026 as

compared to the three months ended March 31, 2025 was primarily driven by a decrease 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 $4.3 million

for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, primarily attributable to an

increase in headcount in support of the growth of the business, partially offset by a decrease in cash bonus accruals.

Fee-earning AUM

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

period.

(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.

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

(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, reinsurance and other 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 evergreen products, 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 $166.4 billion at March 31, 2026, a decrease of 2% from $169.5 billion at December 31, 2025.

The net decrease was due to:

• Outflows of $4.5 billion, which were driven by outflows from our liquid credit products and realizations in our

opportunistic credit funds; and

• Negative market activity of $1.6 billion, which primarily reflected a decrease in the fair value of assets covered by

the Fortitude strategic advisory services agreement.

Offsetting these decreases were:

• Inflows of $3.3 billion, which were driven by deployment across the platform, flow reinsurance from our insurance

strategy, and the closing of our latest European CLO.

Fee-earning AUM was $166.4 billion at March 31, 2026, an increase of 4% from $160.7 billion at March 31, 2025. The

net increase was due to:

• Inflows of $22.3 billion, which reflected capital deployment across the platform, notably in our liquid credit

products, including the closing of seven U.S. CLOs and three European CLOs, and asset-backed finance, direct

lending, and opportunistic credit funds, as well as more than $5 billion of closed block reinsurance transactions and

flow reinsurance from our insurance strategy.

Offsetting this increase were:

• Outflows of $15.3 billion, which included outflows from our liquid credit products and realizations across the

platform; and

• Negative market activity of $1.9 billion, which was primarily driven by the impact of rising interest rates on 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 in our Global Credit segment.

(1) Inflows generally reflects the impact of gross fundraising, as well as reinsurance and other 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 evergreen products, 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 $209.5 billion at March 31, 2026, a decrease of 1% compared to $211.3 billion at December 31, 2025.

The net decrease was due to:

• Outflows of $4.7 billion, which were primarily in our liquid credit products, with additional activity reflecting

realizations across the platform, notably in our aviation and asset-backed finance products; and

• Negative market activity of $0.8 billion, which was primarily driven by the impact of rising interest rates on the fair

value of assets covered by the Fortitude strategic advisory services agreement, partially offset by increases in the fair

value of our aviation and opportunistic credit products.

Offsetting these decreases were:

• Inflows of $3.9 billion, which were driven by the first closing in our asset-backed income fund (“CABI”), flow

reinsurance from our insurance strategy, and the closing of our latest European CLO.

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.

(1) Represents the original cost of investments since the inception of the fund. For CSP III and 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 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.

(6) Net Internal Rate of Return (“Net IRR”) represents an annualized 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 March 31, 2026. 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.

Carlyle AlpInvest

The following table presents our results of operations for our Carlyle AlpInvest segment:

Distributable Earnings

Distributable Earnings decreased $0.4 million for the three months ended March 31, 2026, as compared to the three

months ended March 31, 2025. The following table provides the components of the changes in Distributable Earnings for the

three months ended March 31, 2026:

Fee Related Earnings

Fee Related Earnings increased $2.0 million for the three months ended March 31, 2026, as compared to the three months

ended March 31, 2025. The following table provides the components of the changes in Fee Related Earnings for the three

months ended March 31, 2026:

Fee Revenues. Fee revenues increased $10.6 million for the three months ended March 31, 2026, as compared to the three

months ended March 31, 2025, primarily driven by an increase in Fund management fees of $10.0 million. The increase in

Fund management fees was primarily driven by the impact of fundraising in our most recent vintage of secondaries & portfolio

finance funds, and growth in our CAPM and CAPS funds. Fund management fees for the three months ended March 31, 2026

included catch-up management fees of $1.3 million, a decrease from $14.7 million for the three months ended March 31, 2025,

as fundraising for our most recent vintage of secondaries & portfolio finance funds concluded in the third quarter of 2025.

General, administrative and other indirect expenses. General, administrative and other indirect expenses increased $8.3

million for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily due to an

increase in professional fees, an increase in fundraising costs, and unfavorable foreign currency remeasurement due to the U.S.

dollar strengthening in the quarter.

Fee-earning AUM

Fee-earning AUM is presented below for each period together with the components of change during each respective

period.

(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 in our Carlyle AlpInvest segment.

(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, fee-earning commitments invested in vehicles for which management fees are based

on invested capital, and gross subscriptions in our 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, 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.

(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 $67.9 billion at March 31, 2026, an increase of 3% from $66.0 billion at December 31, 2025. The

net increase was due to:

• Inflows of $3.2 billion, which were driven by investment activity in our AlpInvest wealth products and secondaries

& portfolio finance strategy, as well as fee-paying capital raised in our primary and secondaries & portfolio finance

strategies.

Offsetting this increase were:

• Outflows of $1.0 billion, which were driven by step-downs in fee bases and realizations across all strategies in

products that charge fees on invested capital.

Fee-earning AUM was $67.9 billion at March 31, 2026, an increase of 25% compared to $54.4 billion at March 31, 2025.

The net increase was due to:

• Inflows of $16.7 billion, which were driven by fee-paying capital raised and investment activity across all strategies,

notably in our secondaries & portfolio finance and AlpInvest wealth products;

• Positive foreign exchange activity of $1.1 billion, primarily from the translation of our EUR-denominated funds to

USD; and

• Market appreciation of $0.9 billion, which was driven by CAPM and ASPF II, in which fees are based on fair value.

Offsetting these increases were:

• Outflows of $5.3 billion, which reflected realizations across all strategies and step-downs in fee bases in our primary

funds.

Total AUM

The table below provides the period to period rollforward of Total AUM in our Carlyle AlpInvest segment.

(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 $106.9 billion at March 31, 2026, an increase of 5% compared to $102.0 billion at December 31, 2025.

The net increase was due to:

• Inflows of $6.8 billion, which reflected fundraising across the platform, notably in cross-strategy SMAs and in our

AlpInvest wealth products; and

• Market appreciation of $0.7 billion, which was driven by our secondaries & portfolio finance strategy and AlpInvest

wealth products.

Offsetting these increases were:

• Outflows of $2.2 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

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.

(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 March 31, 2026,

these excluded portfolios amounted to approximately $18.6 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.

(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, “ASPF” stands for

AlpInvest Strategic Portfolio Finance 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, 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 March 31, 2026.

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 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 new investment

areas through increased investment in our funds, which we may subsequently transfer 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 March 31, 2026. Although we may consider other financings to invest in growing our business, such

as the $800.0 million senior note offering in 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 $1.7 billion at March 31, 2026. 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.

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 $1.0 billion as of March 31, 2026. 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 (4.76% at March 31, 2026). As of March 31, 2026, 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 was amended in August 2025 to

extend the maturity date to August 19, 2026.

The Company’s borrowing capacity is subject to the ability of the financial institutions in the banking syndicate to fulfill

their respective obligations under the Global Credit Revolving Credit Facility. Principal amounts outstanding accrue interest at

applicable SOFR or Eurocurrency rates plus an applicable margin of 2.00% or an alternate base rate plus an applicable margin

of 1.00%. As of March 31, 2026, 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 outstanding were $353.5 million at March 31, 2026. 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 March 31, 2026, $335.2 million of these borrowings are

secured by investments attributable to The Carlyle Group Inc. See Note 5, 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.

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.

Our accrued performance allocations by segment as of March 31, 2026, gross and net of accrued giveback obligations,

are set forth below:

(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 March 31, 2026, 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.

Investments as of March 31, 2026 consist of the following:

(1) Represents our total investment in NGP. See Note 4, Investments, to our condensed consolidated financial statements.

Our investments as of March 31, 2026 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.This balance also includes amounts bridged by us on behalf of investment funds for which we have entered

into warehouse agreements. Under such warehouse agreements, we may elect to transfer investments for a price that differs from

fair value.

(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 $729.2 million as

of March 31, 2026.

(3) Of the $353.5 million in total CLO borrowings as of March 31, 2026 and as disclosed in Note 5, Borrowings, to the condensed

consolidated financial statements, $335.2 million are collateralized by investments attributable to The Carlyle Group Inc. The

remaining $18.3 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;
• 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 2026, the Board of Directors has declared a dividend to common stockholders totaling

$126.0 million, or $0.35 per share, consisting of the following:

With respect to dividend year 2025, the Board of Directors declared cumulative dividends to common stockholders

totaling $505.1 million, or $1.40 per share, consisting of the following:

Fund Commitments. Generally, up to 3% 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 evergreen funds and our

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 $3.9 billion of

unfunded commitments as of March 31, 2026, approximately $3.1 billion is subscribed individually by senior Carlyle

professionals, operating executives, and other professionals, with the balance funded directly by the Company. Approximately

72% of the $3.9 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 March 31, 2026, 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 three months ended March 31, 2026, we paid an aggregate of $65.0 million to

repurchase and retire approximately 1.3 million shares of common stock. In addition, during the three months ended March 31,

2026, we paid an aggregate of $139.8 million and retired 2.5 million shares of common stock to settle tax withholding

obligations in connection with net share settlements of equity-based awards, for a total of $204.8 million for approximately 3.8

million shares repurchased or withheld this year. Our Board of Directors reset the total repurchase authorization to $2.0 billion

in shares of our common stock, effective as of February 26, 2026. As of March 31, 2026, $1.9 billion of repurchase capacity

remained under the share repurchase program, which reflects the cost of common shares repurchased. For further information

on our repurchase program, see Note 12, Equity, to the condensed consolidated financial statements included in this Quarterly

Report on Form 10-Q.

Cash Flows

The following tables summarize our condensed consolidated statements of cash flows by activities attributable to the

Company and the Consolidated Funds.

The condensed consolidated statements of cash flows include the cash flows of our Consolidated Funds, which include

certain consolidated investment funds and the CLOs. Generally, the consolidation of the Consolidated Funds has a gross-up

effect on our assets, liabilities and cash flows activities. The primary cash flow activities of the Consolidated Funds generally

include (i) purchases of investments, (ii) proceeds from sales of investments, and (iii) net borrowings of the Consolidated

Funds. Contributions from and distributions to the non-controlling interest holders on the condensed consolidated statements of

cash flows primarily relate to non-controlling interest holders in the Consolidated Funds. The impact that the Consolidated

Funds had on cash flows attributable to the Company for the periods presented were limited to our interest in these funds, which

is included in the discussion below. Thus we excluded the Consolidated Funds from the discussion below.

Net cash used in operating activities. Net cash used in operating activities primarily consists of: (i) net cash generated

from operating activities, which include the receipt of management fees, realized performance allocations and incentive fees

after payments for compensation and general, administrative and other expenses, and (ii) our net investment activity, which

include purchases of and proceeds from our investment activities.

For the three months ended March 31, 2026 and 2025, we received management fees and realized performance

allocations, principal investment income, and incentive fees of $1.0 billion and $1.2 billion, respectively, partially offset by

payments for compensation, interest, and general, administrative and other expenses of $0.9 billion and $1.0 billion,

respectively, which included payment of 2025 and 2024 year-end bonuses paid in January 2026 and 2025, respectively.

For the three months ended March 31, 2026 and 2025, net cash provided by (used in) our investment activities were $30.1

million and $(135.8) million, respectively, which primarily represented proceeds related to distributions of our investments

offset by cash used to fund commitments and investments in our portfolio. As of March 31, 2026 and March 31, 2025, our

investments in our funds totaled $3.2 billion and $3.0 billion, respectively. We expect our commitments to and investments in

our funds will continue to increase with the growth of our assets under management and our investments in new products.

Net cash used in investing activities. For the three months ended March 31, 2026 and 2025, cash used in investing

activities primarily reflected capital expenditures related to information technology, leasehold improvements, and other fixed

assets of $28.1 million and $16.7 million, respectively.

Net cash provided by financing activities. For the three months ended March 31, 2026 and 2025, we paid dividends to our

common stockholders of $126.4 million and $126.4 million, respectively. For the three months ended March 31, 2026 and

2025, we paid $204.8 million and $176.5 million, respectively, to repurchase and retire 3.8 million and 3.3 million shares,

respectively, which included shares retired in connection with the net share settlement of equity-based awards.

Our Balance Sheet

Total assets were $29.8 billion at March 31, 2026, an increase of $0.7 billion compared to December 31, 2025. The

increase in total assets was primarily attributable to an increase in Investments in Consolidated Funds of $1.8 billion, partially

offset by a decrease in Investments, including Performance allocations of $0.7 billion, a decrease in Cash and cash equivalents

of $0.3 billion, and a decrease in Cash and cash equivalents held at Consolidated Funds of $0.2 billion. The decrease in

Investments, including Performance allocations was primarily driven by reversals in Performance allocations in CP VII

attributable to declines in market prices of certain public investments and the impact of preferred return, partially offset by

appreciation in our international energy funds and CJP IV. Refer to “—Cash Flows” in Part I, Item 2 of this Quarterly Report

on Form 10-Q for details on the decrease in Cash and cash equivalents.

Total liabilities were $22.5 billion at March 31, 2026, an increase of $0.4 billion from December 31, 2025. The increase

in liabilities was primarily attributable to an increase in Loans payable of Consolidated Funds of $0.7 billion, an increase in

Other liabilities of Consolidated Funds of $0.5 billion, and an increase in Deferred revenue of $0.2 billion, partially offset by a

decrease in Accrued compensation and benefits of $0.9 billion. The increase in Loans payable of Consolidated Funds was

driven by the consolidation of new CLOs in 2026. 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, as well as the payment of previously realized performance allocations and incentive fee related compensation and 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

Consolidated Funds are non-recourse to us. 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 our investment 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 16, Supplemental Financial

Information, to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. At March 31,

2026, our total assets without the effect of the Consolidated Funds were $15.4 billion, including cash and cash equivalents of

$1.7 billion and Investments, including accrued performance allocations, of $11.4 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.

For further information regarding our off-balance sheet arrangements, see Note 2, Summary of Significant Accounting

Policies, and Note 7, Commitments and Contingencies, to the condensed consolidated financial statements included in this

Quarterly Report on Form 10-Q. Other than what we have disclosed in this Quarterly Report on Form 10-Q, 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.

Contractual Obligations

The following table sets forth information relating to our contractual obligations as of March 31, 2026 on a consolidated

basis and on a basis excluding the obligations of the Consolidated Funds:

(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 5, 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 March 31, 2026 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 for our CLO term loans, the weighted average interest rate was 4.57%. 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 2037. 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 $3.9 billion of

unfunded commitments to the funds, approximately $3.1 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 March 31, 2026, at spreads to market rates

pursuant to the debt agreements, and range from 1.65% to 10.91%.

(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.

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 March 31, 2026. Through March 31, 2026, we paid $4.3 million related to these

contingent obligations.

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 7, 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

March 31, 2026. See Note 7, 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 7, 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 7, Commitments and Contingencies, to the

condensed consolidated financial statements included in this Quarterly Report on Form 10-Q.

Carlyle Common Stock

A rollforward of our common stock outstanding is as follows:

Shares of The Carlyle Group Inc. common stock issued during the three months ended March 31, 2026 relate to the

vesting of the Company’s restricted stock units. Shares of The Carlyle Group Inc. common stock repurchased during the three

months ended March 31, 2026 relate to shares repurchased and subsequently retired as part of our share repurchase program.

Shares of The Carlyle Group Inc. common stock issued and repurchased/retired during the three months ended March 31, 2026

exclude shares retired as part of the net share settlement of equity-based awards.

The total shares as of March 31, 2026 as shown above exclude approximately 0.2 million net common shares,

representing the vesting of restricted stock units subsequent to March 31, 2026 that will participate in the common shareholder

dividend that will be paid on May 28, 2026.

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.

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, 2025.