Supplemental Financial Information

The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the Partnership’s financial position as of March 31, 2017 and December 31, 2016 and results of operations for the three months ended March 31, 2017 and 2016. The supplemental statement of cash flows is presented without effects of the Consolidated Funds.



	As of March 31, 2017
	Consolidated Operating Entities			Consolidated Funds			Eliminations			Consolidated
	(Dollars in millions)
Assets
Cash and cash equivalents	$	799.2		$	—		$	—		$	799.2
Cash and cash equivalents held at Consolidated Funds	—			386.5			—			386.5
Restricted cash	75.4			—			—			75.4
Corporate treasury investments	148.9			—			—			148.9
Accrued performance fees	3,016.7			—			—			3,016.7
Investments	1,348.8			—			(179.8		)	1,169.0
Investments of Consolidated Funds	—			3,903.1			—			3,903.1
Due from affiliates and other receivables, net	203.2			—			(3.3		)	199.9
Due from affiliates and other receivables of Consolidated Funds, net	—			53.4			—			53.4
Receivables and inventory of a consolidated real estate VIE	173.8			—			—			173.8
Fixed assets, net	92.6			—			—			92.6
Deposits and other	46.5			—			—			46.5
Other assets of a consolidated real estate VIE	32.7			—			—			32.7
Intangible assets, net	40.1			—			—			40.1
Deferred tax assets	237.4			—			—			237.4
Total assets	$	6,215.3		$	4,343.0		$	(183.1	)	$	10,375.2
Liabilities and partners’ capital
Debt obligations	$	1,331.7		$	—		$	—		$	1,331.7
Loans payable of Consolidated Funds	—			3,587.5			—			3,587.5
Loans payable of a consolidated real estate VIE at fair value (principal amount of $141.5 million)	77.8			—			—			77.8
Accounts payable, accrued expenses and other liabilities	372.6			—			—			372.6
Accrued compensation and benefits	1,726.8			—			—			1,726.8
Due to affiliates	283.7			0.2			—			283.9
Deferred revenue	242.1			—			—			242.1
Deferred tax liabilities	76.1			—			—			76.1
Other liabilities of Consolidated Funds	—			592.1			(32.1		)	560.0
Other liabilities of a consolidated real estate VIE	177.5			—			—			177.5
Accrued giveback obligations	161.2			—			—			161.2
Total liabilities	4,449.5			4,179.8			(32.1		)	8,597.2
Partners’ capital	498.5			40.3			(40.3		)	498.5
Accumulated other comprehensive loss	(95.7		)	(1.1		)	0.7			(96.1		)
Non-controlling interests in consolidated entities	233.1			13.6			—			246.7
Non-controlling interests in Carlyle Holdings	1,129.9			110.4			(111.4		)	1,128.9
Total partners’ capital	1,765.8			163.2			(151.0		)	1,778.0
Total liabilities and partners’ capital	$	6,215.3		$	4,343.0		$	(183.1	)	$	10,375.2



	As of December 31, 2016
	Consolidated Operating Entities			Consolidated Funds			Eliminations			Consolidated
	(Dollars in millions)
Assets
Cash and cash equivalents	$	670.9		$	—		$	—		$	670.9
Cash and cash equivalents held at Consolidated Funds	—			761.5			—			761.5
Restricted cash	13.1			—			—			13.1
Corporate treasury investments	190.2			—			—			190.2
Accrued performance fees	2,481.1			—			—			2,481.1
Investments	1,272.2			—			(165.2		)	1,107.0
Investments of Consolidated Funds	—			3,893.7			—			3,893.7
Due from affiliates and other receivables, net	231.0			—			(3.8		)	227.2
Due from affiliates and other receivables of Consolidated Funds, net	—			29.5			—			29.5
Receivables and inventory of a consolidated real estate VIE	145.4			—			—			145.4
Fixed assets, net	106.1			—			—			106.1
Deposits and other	39.4			—			—			39.4
Other assets of a consolidated real estate VIE	31.5			—			—			31.5
Intangible assets, net	42.0			—			—			42.0
Deferred tax assets	234.4			—			—			234.4
Total assets	$	5,457.3		$	4,684.7		$	(169.0	)	$	9,973.0
Liabilities and partners’ capital
Debt obligations	$	1,265.2		$	—		$	—		$	1,265.2
Loans payable of Consolidated Funds	—			3,866.3			—			3,866.3
Loans payable of a consolidated real estate VIE at fair value (principal amount of $144.4 million)	79.4			—			—			79.4
Accounts payable, accrued expenses and other liabilities	369.8			—			—			369.8
Accrued compensation and benefits	1,661.8			—			—			1,661.8
Due to affiliates	223.4			0.2			—			223.6
Deferred revenue	54.0			—			—			54.0
Deferred tax liabilities	76.6			—			—			76.6
Other liabilities of Consolidated Funds	—			669.0			(32.0		)	637.0
Other liabilities of a consolidated real estate VIE	124.5			—			—			124.5
Accrued giveback obligations	160.8			—			—			160.8
Total liabilities	4,015.5			4,535.5			(32.0		)	8,519.0
Partners’ capital	403.1			36.7			(36.7		)	403.1
Accumulated other comprehensive income (loss)	(94.9		)	(1.5		)	1.2			(95.2		)
Non-controlling interests in consolidated entities	264.3			13.5			—			277.8
Non-controlling interests in Carlyle Holdings	869.3			100.5			(101.5		)	868.3
Total partners’ capital	1,441.8			149.2			(137.0		)	1,454.0
Total liabilities and partners’ capital	$	5,457.3		$	4,684.7		$	(169.0	)	$	9,973.0



	Three Months Ended March 31, 2017
	Consolidated Operating Entities			Consolidated Funds		Eliminations			Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$	250.3		$	—	$	(4.0	)	$	246.3
Performance fees
Realized	83.2			—		—			83.2
Unrealized	598.4			—		—			598.4
Total performance fees	681.6			—		—			681.6
Investment income (loss)
Realized	(0.1		)	—		(0.1		)	(0.2		)
Unrealized	51.8			—		(5.3		)	46.5
Investment income (loss)	51.7			—		(5.4		)	46.3
Interest and other income	15.9			—		(5.5		)	10.4
Interest and other income of Consolidated Funds	—			42.9		—			42.9
Revenue of a consolidated real estate VIE	92.6			—		—			92.6
Total revenues	1,092.1			42.9		(14.9		)	1,120.1
Expenses
Compensation and benefits
Base compensation	146.0			—		—			146.0
Equity-based compensation	72.8			—		—			72.8
Performance fee related
Realized	45.8			—		—			45.8
Unrealized	271.3			—		—			271.3
Total compensation and benefits	535.9			—		—			535.9
General, administrative and other expenses	93.8			—		—			93.8
Interest	15.0			—		—			15.0
Interest and other expenses of Consolidated Funds	—			53.0		(7.8		)	45.2
Interest and other expenses of a consolidated real estate VIE	119.6			—		—			119.6
Total expenses	764.3			53.0		(7.8		)	809.5
Other income
Net investment gains of Consolidated Funds	—			17.1		—			17.1
Income before provision for income taxes	327.8			7.0		(7.1		)	327.7
Provision for income taxes	5.8			—		—			5.8
Net income	322.0			7.0		(7.1		)	321.9
Net income attributable to non-controlling interests in consolidated entities	3.4			—		(0.1		)	3.3
Net income attributable to Carlyle Holdings	318.6			7.0		(7.0		)	318.6
Net income attributable to non-controlling interests in Carlyle Holdings	235.6			—		—			235.6
Net income attributable to The Carlyle Group L.P.	$	83.0		$	7.0	$	(7.0	)	$	83.0



	Three Months Ended March 31, 2016
	Consolidated Operating Entities			Consolidated Funds			Eliminations			Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$	292.4		$	—		$	(2.9	)	$	289.5
Performance fees
Realized	131.9			—			(0.1		)	131.8
Unrealized	13.4			—			—			13.4
Total performance fees	145.3			—			(0.1		)	145.2
Investment income (loss)
Realized	13.3			—			(0.7		)	12.6
Unrealized	(30.9		)	—			8.7			(22.2		)
Total investment income (loss)	(17.6		)	—			8.0			(9.6		)
Interest and other income	5.7			—			(1.0		)	4.7
Interest and other income of Consolidated Funds	—			28.9			—			28.9
Revenue of a consolidated real estate VIE	24.4			—			—			24.4
Total revenues	450.2			28.9			4.0			483.1
Expenses
Compensation and benefits
Base compensation	166.3			—			—			166.3
Equity-based compensation	75.4			—			—			75.4
Performance fee related
Realized	61.6			—			—			61.6
Unrealized	7.9			—			—			7.9
Total compensation and benefits	311.2			—			—			311.2
General, administrative and other expenses	82.3			—			—			82.3
Interest	15.3			—			—			15.3
Interest and other expenses of Consolidated Funds	—			29.7			(6.3		)	23.4
Interest and other expenses of a consolidated real estate VIE	23.4			—			—			23.4
Other non-operating expenses	3.8			—			—			3.8
Total expenses	436.0			29.7			(6.3		)	459.4
Other income (loss)
Net investment losses of Consolidated Funds	—			(8.4		)	—			(8.4		)
Income (loss) before provision for income taxes	14.2			(9.2		)	10.3			15.3
Provision for income taxes	7.4			—			—			7.4
Net income (loss)	6.8			(9.2		)	10.3			7.9
Net income (loss) attributable to non-controlling interests in consolidated entities	(3.4		)	—			1.1			(2.3		)
Net income (loss) attributable to Carlyle Holdings	10.2			(9.2		)	9.2			10.2
Net income attributable to non-controlling interests in Carlyle Holdings	1.8			—			—			1.8
Net income (loss) attributable to The Carlyle Group L.P.	$	8.4		$	(9.2	)	$	9.2		$	8.4



	Three Months Ended March 31,
	2017			2016
	(Dollars in millions)
Cash flows from operating activities
Net income	$	322.0		$	6.8
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	10.0			17.8
Equity-based compensation	72.8			75.4
Excess tax benefits related to equity-based compensation	—			0.7
Non-cash performance fees	(348.9		)	(7.4		)
Other non-cash amounts	0.2			(2.3		)
Investment (income) loss	(48.1		)	18.3
Purchases of investments	(66.1		)	(23.8		)
Proceeds from the sale of investments	168.8			67.2
Payments of contingent consideration	(22.5		)	(75.6		)
Deconsolidation of Claren Road (see Note 10)	(23.3		)	—
Change in deferred taxes, net	(3.1		)	(5.3		)
Change in due from affiliates and other receivables	(2.5		)	1.0
Change in receivables and inventory of a consolidated real estate VIE	(27.9		)	(21.9		)
Change in deposits and other	(6.7		)	(0.3		)
Change in other assets of a consolidated real estate VIE	(1.7		)	8.6
Change in accounts payable, accrued expenses and other liabilities	12.6			(24.5		)
Change in accrued compensation and benefits	(159.8		)	(143.6		)
Change in due to affiliates	67.1			(22.8		)
Change in other liabilities of a consolidated real estate VIE	56.6			6.2
Change in deferred revenue	188.0			175.2
Net cash provided by operating activities	187.5			49.7
Cash flows from investing activities
Change in restricted cash	(62.1		)	5.7
Purchases of fixed assets, net	(3.7		)	(4.2		)
Net cash (used in) provided by investing activities	(65.8		)	1.5
Cash flows from financing activities
Proceeds from debt obligations	66.1			—
Net payments on loans payable of a consolidated real estate VIE	(7.4		)	(9.4		)
Payments of contingent consideration	—			(0.3		)
Excess tax benefits related to equity-based compensation	—			(0.7		)
Distributions to common unitholders	(13.7		)	(23.6		)
Distributions to non-controlling interest holders in Carlyle Holdings	(38.9		)	(85.1		)
Contributions from non-controlling interest holders	—			4.3
Distributions to non-controlling interest holders	(38.0		)	(22.1		)
Units repurchased	(0.2		)	(6.1		)
Change in due to/from affiliates financing activities	31.1			2.0
Net cash used in financing activities	(1.0		)	(141.0		)
Effect of foreign exchange rate changes	7.6			9.5
Increase (decrease) in cash and cash equivalents	128.3			(80.3		)
Cash and cash equivalents, beginning of period	670.9			991.5
Cash and cash equivalents, end of period	$	799.2		$	911.2