Supplemental Financial Information

The following supplemental financial information illustrates the consolidating effects of the Consolidated Funds on the Partnership’s financial position as of September 30, 2017 and December 31, 2016 and results of operations for the three and nine months ended September 30, 2017 and 2016. The supplemental statement of cash flows is presented without effects of the Consolidated Funds.



	As of September 30, 2017
	Consolidated Operating Entities			Consolidated Funds		Eliminations			Consolidated
	(Dollars in millions)
Assets
Cash and cash equivalents	$	1,355.7		$	—	$	—		$	1,355.7
Cash and cash equivalents held at Consolidated Funds	—			195.4		—			195.4
Restricted cash	9.6			—		—			9.6
Corporate treasury investments	117.4			—		—			117.4
Accrued performance fees	3,498.6			—		—			3,498.6
Investments	1,679.9			—		(199.0		)	1,480.9
Investments of Consolidated Funds	—			4,235.8		—			4,235.8
Due from affiliates and other receivables, net	273.3			—		(4.5		)	268.8
Due from affiliates and other receivables of Consolidated Funds, net	—			64.3		—			64.3
Fixed assets, net	100.1			—		—			100.1
Deposits and other	58.5			—		—			58.5
Intangible assets, net	38.0			—		—			38.0
Deferred tax assets	263.5			—		—			263.5
Total assets	$	7,394.6		$	4,495.5	$	(203.5	)	$	11,686.6
Liabilities and partners’ capital
Debt obligations	$	1,515.6		$	—	$	—		$	1,515.6
Loans payable of Consolidated Funds	—			3,794.8		—			3,794.8
Accounts payable, accrued expenses and other liabilities	308.9			—		—			308.9
Accrued compensation and benefits	2,175.1			—		—			2,175.1
Due to affiliates	264.1			0.2		—			264.3
Deferred revenue	236.0			—		—			236.0
Deferred tax liabilities	77.1			—		—			77.1
Other liabilities of Consolidated Funds	—			507.4		(32.0		)	475.4
Accrued giveback obligations	67.6			—		—			67.6
Total liabilities	4,644.4			4,302.4		(32.0		)	8,914.8
Series A preferred units	387.6			—		—			387.6
Partners’ capital	660.4			46.6		(46.6		)	660.4
Accumulated other comprehensive loss	(68.9		)	3.0		(3.5		)	(69.4		)
Non-controlling interests in consolidated entities	351.2			23.5		—			374.7
Non-controlling interests in Carlyle Holdings	1,419.9			120.0		(121.4		)	1,418.5
Total partners’ capital	2,750.2			193.1		(171.5		)	2,771.8
Total liabilities and partners’ capital	$	7,394.6		$	4,495.5	$	(203.5	)	$	11,686.6



	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 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 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
Loans payable	$	1,265.2		$	—		$	—		$	1,265.2
Loans payable of Consolidated Funds	—			3,866.3			—			3,866.3
Loans payable of a 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 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 September 30, 2017
	Consolidated Operating Entities			Consolidated Funds		Eliminations			Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$	267.5		$	—	$	(5.0	)	$	262.5
Performance fees
Realized	412.3			—		(0.5		)	411.8
Unrealized	(126.2		)	—		—			(126.2		)
Total performance fees	286.1			—		(0.5		)	285.6
Investment income
Realized	15.4			—		0.1			15.5
Unrealized	26.1			—		(4.4		)	21.7
Investment income	41.5			—		(4.3		)	37.2
Interest and other income	18.0			—		(8.1		)	9.9
Interest and other income of Consolidated Funds	—			44.7		—			44.7
Total revenues	613.1			44.7		(17.9		)	639.9
Expenses
Compensation and benefits
Base compensation	174.1			—		—			174.1
Equity-based compensation	81.0			—		—			81.0
Performance fee related
Realized	189.4			—		—			189.4
Unrealized	(51.8		)	—		—			(51.8		)
Total compensation and benefits	392.7			—		—			392.7
General, administrative and other expenses	(18.7		)	—		—			(18.7		)
Interest	16.9			—		—			16.9
Interest and other expenses of Consolidated Funds	—			52.3		(15.1		)	37.2
Interest and other expenses of a real estate VIE and loss on deconsolidation	64.5			—		—			64.5
Total expenses	455.4			52.3		(15.1		)	492.6
Other income
Net investment gains of Consolidated Funds	—			18.6		—			18.6
Income before provision for income taxes	157.7			11.0		(2.8		)	165.9
Benefit for income taxes	(1.3		)	—		—			(1.3		)
Net income	159.0			11.0		(2.8		)	167.2
Net income attributable to non-controlling interests in consolidated entities	19.4			—		8.2			27.6
Net income attributable to Carlyle Holdings	139.6			11.0		(11.0		)	139.6
Net income attributable to non-controlling interests in Carlyle Holdings	95.0			—		—			95.0
Net income attributable to The Carlyle Group L.P.	$	44.6		$	11.0	$	(11.0	)	$	44.6



	Nine Months Ended September 30, 2017
	Consolidated Operating Entities		Consolidated Funds		Eliminations			Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$	761.2	$	—	$	(13.6	)	$	747.6
Performance fees
Realized	855.2		—		(2.5		)	852.7
Unrealized	658.1		—		—			658.1
Total performance fees	1,513.3		—		(2.5		)	1,510.8
Investment income
Realized	42.6		—		(0.6		)	42.0
Unrealized	105.5		—		(5.0		)	100.5
Investment income	148.1		—		(5.6		)	142.5
Interest and other income	44.2		—		(18.3		)	25.9
Interest and other income of Consolidated Funds	—		132.6		—			132.6
Revenue of a real estate VIE	109.0		—		—			109.0
Total revenues	2,575.8		132.6		(40.0		)	2,668.4
Expenses
Compensation and benefits
Base compensation	471.1		—		—			471.1
Equity-based compensation	241.8		—		—			241.8
Performance fee related
Realized	401.9		—		—			401.9
Unrealized	309.9		—		—			309.9
Total compensation and benefits	1,424.7		—		—			1,424.7
General, administrative and other expenses	170.9		—		—			170.9
Interest	48.4		—		—			48.4
Interest and other expenses of Consolidated Funds	—		197.2		(36.3		)	160.9
Interest and other expenses of a real estate VIE and loss on deconsolidation	202.5		—		—			202.5
Other non-operating expenses	0.1		—		—			0.1
Total expenses	1,846.6		197.2		(36.3		)	2,007.5
Other income
Net investment gains of Consolidated Funds	—		76.4		—			76.4
Income before provision for income taxes	729.2		11.8		(3.7		)	737.3
Provision for income taxes	17.7		—		—			17.7
Net income	711.5		11.8		(3.7		)	719.6
Net income attributable to non-controlling interests in consolidated entities	39.3		—		8.1			47.4
Net income attributable to Carlyle Holdings	672.2		11.8		(11.8		)	672.2
Net income attributable to non-controlling interests in Carlyle Holdings	487.0		—		—			487.0
Net income attributable to The Carlyle Group L.P.	$	185.2	$	11.8	$	(11.8	)	$	185.2



	Three Months Ended September 30, 2016
	Consolidated Operating Entities			Consolidated Funds		Eliminations			Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$	259.1		$	—	$	(4.0	)	$	255.1
Performance fees
Realized	383.4			—		—			383.4
Unrealized	(168.7		)	—		—			(168.7		)
Total performance fees	214.7			—		—			214.7
Investment income
Realized	40.3			—		0.4			40.7
Unrealized	43.0			—		(13.2		)	29.8
Total investment income	83.3			—		(12.8		)	70.5
Interest and other income	5.4			—		(0.1		)	5.3
Interest and other income of Consolidated Funds	—			43.0		—			43.0
Revenue of a real estate VIE	18.7			—		—			18.7
Total revenues	581.2			43.0		(16.9		)	607.3
Expenses
Compensation and benefits
Base compensation	154.3			—		—			154.3
Equity-based compensation	81.4			—		—			81.4
Performance fee related
Realized	189.0			—		—			189.0
Unrealized	(78.1		)	—		—			(78.1		)
Total compensation and benefits	346.6			—		—			346.6
General, administrative and other expenses	188.9			—		—			188.9
Interest	15.6			—		—			15.6
Interest and other expenses of Consolidated Funds	—			41.2		(8.9		)	32.3
Interest and other expenses of a real estate VIE	82.1			—		—			82.1
Other non-operating income	(3.7		)	—		—			(3.7		)
Total expenses	629.5			41.2		(8.9		)	661.8
Other income
Net investment gains of Consolidated Funds	—			4.8		—			4.8
Income (loss) before provision for income taxes	(48.3		)	6.6		(8.0		)	(49.7		)
Provision for income taxes	1.0			—		—			1.0
Net income (loss)	(49.3		)	6.6		(8.0		)	(50.7		)
Net loss attributable to non-controlling interests in consolidated entities	(27.7		)	—		(1.4		)	(29.1		)
Net income (loss) attributable to Carlyle Holdings	(21.6		)	6.6		(6.6		)	(21.6		)
Net loss attributable to non-controlling interests in Carlyle Holdings	(22.4		)	—		—			(22.4		)
Net income attributable to The Carlyle Group L.P.	$	0.8		$	6.6	$	(6.6	)	$	0.8



	Nine Months Ended September 30, 2016
	Consolidated Operating Entities			Consolidated Funds		Eliminations			Consolidated
	(Dollars in millions)
Revenues
Fund management fees	$	827.5		$	—	$	(10.4	)	$	817.1
Performance fees
Realized	905.3			—		(0.2		)	905.1
Unrealized	(334.3		)	—		—			(334.3		)
Total performance fees	571.0			—		(0.2		)	570.8
Investment income
Realized	92.7			—		(0.5		)	92.2
Unrealized	45.1			—		(11.1		)	34.0
Total investment income	137.8			—		(11.6		)	126.2
Interest and other income	16.3			—		(1.3		)	15.0
Interest and other income of Consolidated Funds	—			107.8		—			107.8
Revenue of a real estate VIE	61.5			—		—			61.5
Total revenues	1,614.1			107.8		(23.5		)	1,698.4
Expenses
Compensation and benefits
Base compensation	470.5			—		—			470.5
Equity-based compensation	265.8			—		—			265.8
Performance fee related
Realized	423.0			—		—			423.0
Unrealized	(146.1		)	—		—			(146.1		)
Total compensation and benefits	1,013.2			—		—			1,013.2
General, administrative and other expenses	362.6			—		—			362.6
Interest	46.3			—		—			46.3
Interest and other expenses of Consolidated Funds	—			105.9		(18.6		)	87.3
Interest and other expenses of a real estate VIE	157.9			—		—			157.9
Other non-operating expenses	0.8			—		—			0.8
Total expenses	1,580.8			105.9		(18.6		)	1,668.1
Other income
Net investment gains of Consolidated Funds	—			3.1		—			3.1
Income before provision for income taxes	33.3			5.0		(4.9		)	33.4
Provision for income taxes	32.7			—		—			32.7
Net income	0.6			5.0		(4.9		)	0.7
Net loss attributable to non-controlling interests in consolidated entities	(29.9		)	—		0.1			(29.8		)
Net income attributable to Carlyle Holdings	30.5			5.0		(5.0		)	30.5
Net income attributable to non-controlling interests in Carlyle Holdings	15.2			—		—			15.2
Net income attributable to The Carlyle Group L.P.	$	15.3		$	5.0	$	(5.0	)	$	15.3



	Nine Months Ended September 30,
	2017			2016
	(Dollars in millions)
Cash flows from operating activities
Net income	$	711.5		$	0.6
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	30.9			52.6
Equity-based compensation	241.8			265.8
Non-cash performance fees	(561.5		)	108.0
Other non-cash amounts	(8.2		)	(19.2		)
Investment income	(129.5		)	(135.8		)
Purchases of investments	(445.0		)	(262.7		)
Proceeds from the sale of investments	302.7			236.7
Payments of contingent consideration	(22.5		)	(82.6		)
Deconsolidation of Claren Road (see Note 9)	(23.3		)	—
Deconsolidation of Urbplan (see Note 15)	14.0			—
Change in deferred taxes, net	(8.7		)	3.7
Change in due from affiliates and other receivables	(78.8		)	0.7
Change in receivables and inventory of a real estate VIE	(14.5		)	45.1
Change in deposits and other	(7.1		)	6.0
Change in other assets of a real estate VIE	1.6			33.1
Change in accounts payable, accrued expenses and other liabilities	1.9			71.8
Change in accrued compensation and benefits	42.2			32.4
Change in due to affiliates	15.0			(22.4		)
Change in other liabilities of a real estate VIE	47.9			(1.2		)
Change in deferred revenue	178.6			154.9
Net cash provided by operating activities	289.0			487.5
Cash flows from investing activities
Change in restricted cash	3.6			1.8
Purchases of fixed assets, net	(26.0		)	(13.3		)
Net cash used in investing activities	(22.4		)	(11.5		)
Cash flows from financing activities
Proceeds from issuance of preferred units	387.6			—
Borrowings under credit facility	250.0			—
Repayments under credit facility	(250.0		)	—
Payments on debt obligations	(15.0		)	—
Proceeds from debt obligations	202.6			20.6
Net payments on loans payable of a real estate VIE	(14.3		)	(27.3		)
Payments of contingent consideration	(0.4		)	(3.3		)
Distributions to common unitholders	(63.0		)	(98.5		)
Distributions to non-controlling interest holders in Carlyle Holdings	(163.1		)	(300.9		)
Contributions from non-controlling interest holders	87.7			75.3
Distributions to non-controlling interest holders	(74.0		)	(85.5		)
Common units repurchased	(0.2		)	(53.6		)
Change in due to/from affiliates financing activities	38.5			49.5
Net cash provided by (used in) financing activities	386.4			(423.7		)
Effect of foreign exchange rate changes	31.8			(0.5		)
Increase in cash and cash equivalents	684.8			51.8
Cash and cash equivalents, beginning of period	670.9			991.5
Cash and cash equivalents, end of period	$	1,355.7		$	1,043.3