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Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting 15. Segment Reporting
Carlyle conducts its operations through three reportable segments:
Global Private Equity – The Global Private Equity segment advises the Company’s buyout, middle market and growth
capital funds, its U.S. and internationally focused real estate funds, and its infrastructure and 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 loans
and structured credit, direct lending, opportunistic credit, distressed credit, aircraft financing and servicing, infrastructure
debt, insurance solutions, asset-backed lending, and global capital markets.
Global Investment Solutions – The Global Investment Solutions segment advises global private equity programs and
related co-investment and secondary activities.
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”) 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 (comprised 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 (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, certain general, administrative and other expenses when the timing of any future payment is uncertain, 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, which is generally 45% of fee
related performance revenues. 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.
Total assets by segment is not disclosed because this information is not used by the CODM to make resource deployment
decisions or evaluate the performance of the Company’s segments.
The following tables present the financial data for the Company’s three reportable segments for the three and nine months
ended September 30, 2024:
Three Months Ended September 30, 2024
Global
Private
Equity
Global
Credit
Global
Investment
Solutions
Total
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$298.6
$142.8
$85.1
$526.5
Portfolio advisory and transaction fees, net and other
5.9
21.4
0.1
27.4
Fee related performance revenues
—
29.0
7.3
36.3
Total fund level fee revenues
304.5
193.2
92.5
590.2
Realized performance revenues
225.2
11.5
39.2
275.9
Realized principal investment income (loss)
10.0
(2.8)
1.9
9.1
Interest income
7.7
9.8
2.3
19.8
Total revenues
547.4
211.7
135.9
895.0
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits
101.1
76.5
30.0
207.6
Realized performance revenues related compensation
141.5
6.9
36.9
185.3
Total compensation and benefits
242.6
83.4
66.9
392.9
General, administrative, and other indirect expenses
48.5
31.2
13.2
92.9
Depreciation and amortization expense
6.7
3.3
1.8
11.8
Interest expense
14.1
13.3
2.9
30.3
Total expenses
311.9
131.2
84.8
527.9
(=) Distributable Earnings
$235.5
$80.5
$51.1
$367.1
(-) Realized Net Performance Revenues
83.7
4.6
2.3
90.6
(-) Realized Principal Investment Income (Loss)
10.0
(2.8)
1.9
9.1
(+) Net Interest
6.4
3.5
0.6
10.5
(=) Fee Related Earnings
$148.2
$82.2
$47.5
$277.9
Nine Months Ended September 30, 2024
Global
Private
Equity
Global
Credit
Global
Investment
Solutions
Total
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$908.4
$420.5
$238.7
$1,567.6
Portfolio advisory and transaction fees, net and other
16.8
66.0
0.2
83.0
Fee related performance revenues
6.9
81.2
10.4
98.5
Total fund level fee revenues
932.1
567.7
249.3
1,749.1
Realized performance revenues
728.7
19.0
82.5
830.2
Realized principal investment income
35.7
30.2
3.5
69.4
Interest income
21.8
30.6
5.8
58.2
Total revenues
1,718.3
647.5
341.1
2,706.9
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits
314.3
227.3
85.6
627.2
Realized performance revenues related compensation
457.2
11.5
73.2
541.9
Total compensation and benefits
771.5
238.8
158.8
1,169.1
General, administrative, and other indirect expenses
137.3
96.1
37.1
270.5
Depreciation and amortization expense
19.6
9.6
5.0
34.2
Interest expense
42.2
40.6
8.7
91.5
Total expenses
970.6
385.1
209.6
1,565.3
(=) Distributable Earnings
$747.7
$262.4
$131.5
$1,141.6
(-) Realized Net Performance Revenues
271.5
7.5
9.3
288.3
(-) Realized Principal Investment Income
35.7
30.2
3.5
69.4
(+) Net Interest
20.4
10.0
2.9
33.3
(=) Fee Related Earnings
$460.9
$234.7
$121.6
$817.2
The following tables present the financial data for the Company’s three reportable segments for the three and nine months
ended September 30, 2023:
Three Months Ended September 30, 2023
Global
Private
Equity
Global
Credit
Global
Investment
Solutions
Total
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$330.1
$128.9
$59.1
$518.1
Portfolio advisory and transaction fees, net and other
4.0
7.2
—
11.2
Fee related performance revenues
0.7
21.1
1.6
23.4
Total fund level fee revenues
334.8
157.2
60.7
552.7
Realized performance revenues
164.6
2.7
13.1
180.4
Realized principal investment income
14.4
8.0
1.0
23.4
Interest income
8.8
9.7
1.6
20.1
Total revenues
522.6
177.6
76.4
776.6
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits
142.3
81.3
32.4
256.0
Realized performance revenues related compensation
18.2
1.4
10.8
30.4
Total compensation and benefits
160.5
82.7
43.2
286.4
General, administrative, and other indirect expenses
46.0
26.2
9.4
81.6
Depreciation and amortization expense
7.1
2.1
1.2
10.4
Interest expense
16.8
11.8
2.2
30.8
Total expenses
230.4
122.8
56.0
409.2
(=) Distributable Earnings
$292.2
$54.8
$20.4
$367.4
(-) Realized Net Performance Revenues
146.4
1.3
2.3
150.0
(-) Realized Principal Investment Income
14.4
8.0
1.0
23.4
(+) Net Interest
8.0
2.1
0.6
10.7
(=) Fee Related Earnings
$139.4
$47.6
$17.7
$204.7
 
Nine Months Ended September 30, 2023
Global
Private
Equity
Global
Credit
Global
Investment
Solutions
Total
 
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$987.2
$378.4
$173.7
$1,539.3
Portfolio advisory and transaction fees, net and other
14.7
31.1
—
45.8
Fee related performance revenues
63.1
59.1
3.2
125.4
Total fund level fee revenues
1,065.0
468.6
176.9
1,710.5
Realized performance revenues
577.3
36.0
67.3
680.6
Realized principal investment income
39.5
25.2
4.6
69.3
Interest income
19.7
24.6
4.0
48.3
Total revenues
1,701.5
554.4
252.8
2,508.7
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits
464.6
246.3
94.4
805.3
Realized performance revenues related compensation
209.1
16.8
60.1
286.0
Total compensation and benefits
673.7
263.1
154.5
1,091.3
General, administrative, and other indirect expenses
162.2
73.5
35.1
270.8
Depreciation and amortization expense
19.7
5.8
3.5
29.0
Interest expense
50.2
32.9
6.7
89.8
Total expenses
905.8
375.3
199.8
1,480.9
(=) Distributable Earnings
$795.7
$179.1
$53.0
$1,027.8
(-) Realized Net Performance Revenues
368.2
19.2
7.2
394.6
(-) Realized Principal Investment Income
39.5
25.2
4.6
69.3
(+) Net Interest
30.5
8.3
2.7
41.5
(=) Fee Related Earnings
$418.5
$143.0
$43.9
$605.4
 
The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes for the
three months ended September 30, 2024 and 2023.
 
Three Months Ended September 30, 2024
 
Total
Reportable
Segments
Consolidated
Funds
Reconciling
Items
Carlyle
Consolidated
 
 
(Dollars in millions)
Revenues
$895.0
$180.1
$1,560.1
(a) 
$2,635.2
Expenses
$527.9
$160.6
$1,160.4
(b) 
$1,848.9
Other income (loss)
$—
$2.5
$—
(c) 
$2.5
Distributable earnings
$367.1
$22.0
$399.7
(d) 
$788.8
 
Three Months Ended September 30, 2023
 
Total
Reportable
Segments
Consolidated
Funds
Reconciling
Items
Carlyle
Consolidated
 
 
(Dollars in millions)
Revenues
$776.6
$152.7
$(212.7)
(a) 
$716.6
Expenses
$409.2
$111.2
$34.7
(b) 
$555.1
Other income (loss)
$—
$(9.3)
$—
(c) 
$(9.3)
Distributable earnings
$367.4
$32.2
$(247.4)
(d) 
$152.2
The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes for the
nine months ended September 30, 2024 and 2023.
 
Nine Months Ended September 30, 2024
 
Total
Reportable
Segments
Consolidated
Funds
Reconciling
Items
Carlyle
Consolidated
 
 
(Dollars in millions)
Revenues
$2,706.9
$510.6
$1,175.8
(a) 
$4,393.3
Expenses
$1,565.3
$464.6
$1,225.5
(b) 
$3,255.4
Other income (loss)
$—
$(9.6)
$—
(c) 
$(9.6)
Distributable earnings
$1,141.6
$36.4
$(49.7)
(d) 
$1,128.3
 
Nine Months Ended September 30, 2023
 
Total
Reportable
Segments
Consolidated
Funds
Reconciling
Items
 
Carlyle
Consolidated
 
 
 
(Dollars in millions)
Revenues
$2,508.7
$411.7
$(882.7)
(a) 
$2,037.7
Expenses
$1,480.9
$324.7
$0.2
(b) 
$1,805.8
Other income (loss)
$—
$9.9
$—
(c) 
$9.9
Distributable earnings
$1,027.8
$96.9
$(882.9)
(d) 
$241.8
(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, adjustments to reflect
the reimbursement of certain costs incurred on behalf of Carlyle funds on a net basis, and the inclusion of tax expenses
associated with certain foreign performance revenues, as detailed below:
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2024
2023
2024
2023
(Dollars in millions)
Unrealized performance and fee related performance revenues
$1,495.1
$(229.2)
$1,020.9
$(850.4)
Unrealized principal investment income (loss)
1.8
17.1
54.3
18.5
Principal investment loss from dilution of indirect investment in Fortitude
—
—
—
(104.0)
Adjustments related to expenses associated with investments in NGP
Management and its affiliates
(3.5)
(3.5)
(10.5)
(11.0)
Non-controlling interests and other adjustments to present certain costs on
a net basis
79.0
23.5
156.7
118.2
Elimination of revenues of Consolidated Funds
(12.3)
(20.6)
(45.6)
(54.0)
$1,560.1
$(212.7)
$1,175.8
$(882.7)
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 and nine months ended September 30, 2024
and 2023.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
(Dollars in millions)
Total Reportable Segments - Fund level fee revenues
$590.2
$552.7
$1,749.1
$1,710.5
Adjustments(1)
(57.5)
(50.1)
(158.4)
(199.3)
Carlyle Consolidated - Fund management fees
$532.7
$502.6
$1,590.7
$1,511.2
(1)Adjustments represent the reclassification of NGP management fees from principal investment income, the
reclassification of  fee related performance revenues from business development companies and other 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.
(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, and 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:
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2024
2023
2024
2023
(Dollars in millions)
Unrealized performance and fee related performance revenue
compensation expense
$930.7
$(90.3)
$634.5
$(378.8)
Equity-based compensation
122.0
67.3
360.4
195.1
Acquisition or disposition-related charges and amortization of intangibles
and impairment
37.4
50.6
103.5
113.0
Tax (expense) benefit associated with certain foreign performance
revenues related compensation
(0.2)
(0.2)
(1.4)
(0.8)
Non-controlling interests and other adjustments to present certain costs on
a net basis
63.8
10.7
108.6
85.9
Other adjustments
5.3
5.4
45.8
11.6
Elimination of expenses of Consolidated Funds
1.4
(8.8)
(25.9)
(25.8)
$1,160.4
$34.7
$1,225.5
$0.2
(c)The Other Income (Loss) adjustment results from the Consolidated Funds that were eliminated in consolidation to
arrive at the Company’s total Other Income (Loss).
(d)The following table is a reconciliation of Income (Loss) Before Provision for Income Taxes to Distributable Earnings
and to Fee Related Earnings:
Three Months Ended
September 30,
Nine Months Ended
September 30,
 
2024
2023
2024
2023
(Dollars in millions)
Income (loss) before provision for income taxes
$788.8
$152.2
$1,128.3
$241.8
Adjustments:
Net unrealized performance and fee related performance revenues
(564.4)
138.9
(386.4)
471.6
Unrealized principal investment (income) loss
(1.8)
(17.1)
(54.3)
(18.5)
Principal investment loss from dilution of indirect investment in Fortitude
—
—
—
104.0
Equity-based compensation(1)
122.0
67.3
360.4
195.1
Acquisition or disposition-related charges, including amortization of intangibles
and impairment
37.4
50.6
103.5
113.0
Tax expense associated with certain foreign performance revenues
(0.2)
(0.2)
(1.4)
(0.8)
Net income attributable to non-controlling interests in consolidated entities
(20.0)
(29.7)
(54.3)
(90.0)
Other adjustments(2)
5.3
5.4
45.8
11.6
Distributable Earnings
$367.1
$367.4
$1,141.6
$1,027.8
Realized performance revenues, net of related compensation(3)
90.6
150.0
288.3
394.6
Realized principal investment income(3)
9.1
23.4
69.4
69.3
Net interest
10.5
10.7
33.3
41.5
Fee Related Earnings
$277.9
$204.7
$817.2
$605.4
(1)Equity-based compensation for the three and nine months ended September 30, 2024 and 2023 includes amounts that are
presented in principal investment income and general, administrative and other expenses in the Company’s 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:
Three Months Ended September 30, 2024
Carlyle
Consolidated
Adjustments (4)
Total
Reportable
Segments
(Dollars in millions)
Performance revenues
$1,785.5
$(1,509.6)
$275.9
Performance revenues related compensation expense
1,151.0
(965.7)
185.3
Net performance revenues
$634.5
$(543.9)
$90.6
Principal investment income (loss)
$46.0
$(36.9)
$9.1
Nine Months Ended September 30, 2024
Carlyle
Consolidated
Adjustments (4)
Total
Reportable
Segments
(Dollars in millions)
Performance revenues
$1,826.7
$(996.5)
$830.2
Performance revenues related compensation expense
1,222.4
(680.5)
541.9
Net performance revenues
$604.3
$(316.0)
$288.3
Principal investment income (loss)
$207.2
$(137.8)
$69.4
Three Months Ended September 30, 2023
Carlyle
Consolidated
Adjustments (4)
Total
Reportable
Segments
(Dollars in millions)
Performance revenues
$(118.3)
$298.7
$180.4
Performance revenues related compensation expense
(53.9)
84.3
30.4
Net performance revenues
$(64.4)
$214.4
$150.0
Principal investment income (loss)
$100.6
$(77.2)
$23.4
Nine Months Ended September 30, 2023
Carlyle
Consolidated
Adjustments (4)
Total
Reportable
Segments
(Dollars in millions)
Performance revenues
$(204.3)
$884.9
$680.6
Performance revenues related compensation expense
(40.4)
326.4
286.0
Net performance revenues
$(163.9)
$558.5
$394.6
Principal investment income (loss)
$105.1
$(35.8)
$69.3
(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 were eliminated in the U.S. GAAP consolidation but were
included in the segment results, (iii) amounts attributable to non-controlling interests in consolidated entities, which were
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 that are excluded from
the segment results and the exclusion of the principal investment loss from dilution of the indirect investment in Fortitude.