Investments

12 Months Ended

Dec. 31, 2024

4. Investments

Investments consist of the following:


	As of December 31,
	2024	2023
	(Dollars in millions)
Accrued performance allocations	$7,053.5	$6,169.9
Principal equity method investments, excluding performance allocations	3,292.3	3,024.1
Principal investments in CLOs	378.9	532.6
Other investments	212.0	228.7
Total	$10,936.7	$9,955.3

Accrued Performance Allocations

The components of accrued performance allocations are as follows:


	As of December 31,
	2024	2023
	(Dollars in millions)
Global Private Equity	$4,910.2	$4,310.7
Global Credit	527.1	323.4
Global Investment Solutions	1,616.2	1,535.8
Total	$7,053.5	$6,169.9

Approximately 20% of accrued performance allocations at December 31, 2024 was related to Carlyle Partners VII,

L.P., one of the Company’s Global Private Equity funds.

None of the Company’s accrued performance allocations from an individual fund exceeded 10% of total accrued

performance allocations at December 31, 2023.

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

related compensation (see Note 7, Accrued Compensation and Benefits), and accrued giveback obligations, which are

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


	As of December 31,
	2024	2023
	(Dollars in millions)
Global Private Equity	$(18.5)	$(18.4)
Global Credit	(25.5)	(25.6)
Total	$(44.0)	$(44.0)

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 Global Investment Solutions 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:


	As of December 31,
	2024	2023
	(Dollars in millions)
Global Private Equity(1)	$1,818.0	$1,798.3
Global Credit(2)	1,157.0	987.4
Global Investment Solutions	317.3	238.4
Total	$3,292.3	$3,024.1

(1) The balance includes $912.0 million and $916.2 million as of December 31, 2024 and 2023, respectively, related to the Company’s equity method

investments in NGP.

(2) The balance includes $723.5 million and $595.4 million as of December 31, 2024 and 2023, respectively, related to the Company’s investment in Fortitude.

The summarized financial information of the Company’s equity method investees from the date of initial investment is

as follows (Dollars in millions):


	Global Private Equity			Global Credit			Global Investment Solutions			Aggregate Totals
	For the Year Ended December 31,			For the Year Ended December 31,			For the Year Ended December 31,			For the Year Ended December 31,
	2024	2023	2022	2024	2023	2022	2024	2023	2022	2024	2023	2022
Statement of operations information
Investment income	$1,986.9	$2,652.7	$3,129.1	$3,639.1	$3,497.5	$1,803.9	$275.3	$74.8	$115.2	$5,901.3	$6,225.0	$5,048.2
Expenses	2,644.6	2,320.4	2,151.6	1,111.8	1,019.5	591.8	2,123.9	1,238.5	1,139.2	5,880.3	4,578.4	3,882.6
Net investment income (loss)	(657.7)	332.3	977.5	2,527.3	2,478.0	1,212.1	(1,848.6)	(1,163.7)	(1,024.0)	21.0	1,646.6	1,165.6
Net realized and unrealized gain (loss)	7,911.2	2,980.0	10,643.7	575.8	224.7	(1.9)	4,891.9	4,159.4	2,876.1	13,378.9	7,364.1	13,517.9
Net income (loss)	$7,253.4	$3,312.3	$11,621.2	$3,103.1	$2,702.7	$1,210.2	$3,043.3	$2,995.7	$1,852.1	$13,399.9	$9,010.7	$14,683.5


	Global Private Equity		Global Credit		Global Investment Solutions		Aggregate Totals
	As of December 31,		As of December 31,		As of December 31,		As of December 31,
	2024	2023	2024	2023	2024	2023	2024	2023
Balance sheet information
Investments	$123,663.3	$102,536.5	$32,367.7	$26,814.0	$62,935.0	$40,170.7	$218,966.0	$169,521.2
Total assets	$127,257.1	$106,116.6	$33,970.1	$32,803.3	$63,678.5	$40,156.2	$224,905.7	$179,076.1
Debt	$11,560.9	$8,355.4	$6,625.5	$6,601.0	$2,929.2	$2,305.2	$21,115.6	$17,261.6
Other liabilities	$1,399.3	$1,329.3	$682.0	$777.7	$4,048.8	$2,149.7	$6,130.1	$4,256.7
Total liabilities	$12,960.2	$9,684.7	$7,307.5	$7,378.7	$6,978.1	$4,454.9	$27,245.8	$21,518.3
Partners’ capital	$114,296.9	$96,431.9	$26,662.6	$25,424.6	$56,700.4	$35,701.3	$197,659.9	$157,557.8

Investment in Fortitude

On November 13, 2018, the Company acquired a 19.9% interest in Fortitude Group Holdings, LLC (“Fortitude

Holdings”), a wholly owned subsidiary of American International Group, Inc. (“AIG”). Fortitude Holdings owns 100% of the

outstanding common shares of Fortitude Reinsurance Company Ltd., a Bermuda domiciled reinsurer (“Fortitude Re”). The

Company paid $381 million in cash at closing and paid $95 million in additional deferred consideration in 2024. In May 2020,

the initial purchase price was adjusted upward by $99.5 million in accordance with the purchase agreement as Fortitude

Holdings chose not to distribute a planned non-pro rata dividend to AIG, of which the Company paid $79.6 million in May

2020. The remaining $19.9 million was paid in 2024.

On June 2, 2020, Carlyle FRL, L.P. (“Carlyle FRL”), a Carlyle-affiliated investment fund, and T&D United Capital

Co., Ltd. (“T&D”), a strategic third-party investor, acquired a 51.6% ownership interest and 25.0% ownership interest,

respectively, in Fortitude Holdings from AIG. At closing, the Company contributed its existing 19.9% interest in Fortitude

Holdings to Carlyle FRL, such that Carlyle FRL held a 71.5% interest in Fortitude Holdings. Taken together, Carlyle FRL and

T&D had 96.5% ownership of Fortitude Holdings. In October 2021, Carlyle FRL, T&D and an affiliate of AIG contributed the

entirety of their interest in Fortitude Holdings to FGH Parent, L.P. (“FGH Parent”), a newly-formed entity interposed as the

direct parent of Fortitude Holdings, in exchange for an equivalent ownership interest in FGH Parent. References to “Fortitude”

prior to this restructuring refer to Fortitude Holdings and refer to FGH Parent for subsequent periods.

In March 2022, the Company raised $2.0 billion in third-party equity capital from certain investors in Carlyle FRL and

T&D, and committed $100 million from the Company for additional equity capital in Fortitude. In May 2022, Fortitude called

$1.1 billion of the capital raise, reducing the Company’s indirect ownership of Fortitude from 19.9% to 13.5%. As a result of

the dilution, the Company recorded a reduction in the carrying value of its equity method investment and corresponding loss of

$176.9 million. In May 2023, Fortitude called the remaining $1 billion of the capital commitments and the Company’s indirect

ownership of Fortitude further decreased from 13.5% to 10.5%, resulting in an additional reduction in the carrying value and a

corresponding loss of $104.0 million. Effective October 2023, a third-party investor in Carlyle FRL received a distribution in

kind of its interest in FGH Parent held indirectly through the fund, reducing Carlyle FRL’s ownership in FGH Parent to 38.5%.

Following the additional capital contributions in 2022 and 2023, Carlyle FRL and its strategic third-party investors collectively

hold a 97.5% interest in FGH Parent.

In November 2024, Fortitude declared and paid a $200.0 million dividend, of which Carlyle FRL’s share was

$76.9 million. The Company received a distribution from Carlyle FRL of $21.0 million related to this dividend, of which

$7.9 million was recognized as realized principal investment income, and the balance as return of capital. As of December 31,

2024, 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 $723.5 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 December 31, 2024, Fortitude, its

affiliates and certain Fortitude reinsurance counterparties have committed approximately $19.4 billion of capital to-date to

various Carlyle strategies. On April 1, 2022, the Company entered into a strategic advisory services agreement 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. Third-party investors who

participated in the March 2022 capital raise also made a minority investment in CISM, which is reflected as non-controlling

interest in consolidated entities in the consolidated financial statements.

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. The Company does

not control NGP and accounts for its investments in NGP under the equity method of accounting, and includes these

investments in the Global Private Equity segment. The Company’s investments in NGP as of December 31, 2024 and 2023 are

as follows:


	As of December 31,
	2024	2023
	(Dollars in millions)
Investment in NGP Management	$369.2	$370.5
Investments in NGP general partners - accrued performance allocations	489.4	484.4
Principal investments in NGP funds	53.4	61.3
Total investments in NGP	$912.0	$916.2

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 of NGP Management, which serves as the

investment advisor to the NGP Energy Funds. Management fees are generally calculated as 1.0% to 2.0% of the limited

partners’ commitments during the fund’s investment period, and 0.5% to 2.0% based on the lower of cost or fair market value

of invested capital following the expiration or termination of the investment period. Management fee related revenues from

NGP Management are primarily driven by NGP XI, NGP XII, and NGP XIII during the years ended December 31, 2024, 2023

and 2022.

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, expenses associated with the

compensatory elements of the investment, and the amortization of the basis differences related to the definite-lived identifiable

intangible assets of NGP Management. The net investment income (loss) recognized in the Company’s consolidated statements

of operations for the years ended December 31, 2024, 2023 and 2022 were as follows:


	Year Ended December 31,
	2024	2023	2022
	(Dollars in millions)
Management fee related revenues from NGP Management	$76.2	$78.6	$71.0
Expenses related to the investment in NGP Management	(13.1)	(13.8)	(11.5)
Amortization of basis differences from the investment in NGP Management	—	—	(1.4)
Net investment income from NGP Management	$63.1	$64.8	$58.1

The difference between the Company’s remaining carrying value of its investment and its share of the underlying net

assets of the investee was amortized over a period of 10 years from the initial investment date and was fully amortized as of

December 31, 2022. The Company assesses the remaining carrying value of its equity method investment for impairment

whenever events or circumstances indicate that the carrying value may not be recoverable, and considers factors including, but

not limited to, expected cash flows from its interest in future management fees, changes to the Company’s economic

arrangement with NGP, and NGP’s ability to raise new funds.

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 47.5% (40.0% or 42.75% in the case of certain funds) of the performance allocations received by

certain current and future 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 consolidated statements of operations. The Company recognized net investment earnings (losses) related to

these performance allocations in its consolidated statements of operations of $35.5 million, $65.5 million and $560.7 million for

years ended December 31, 2024, 2023 and 2022, respectively.

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 consolidated

statements of operations of $5.0 million, $8.0 million and $44.5 million for the years ended December 31, 2024, 2023 and

2022, respectively.

Principal Investments in CLOs and Other Investments

Principal investments in CLOs as of December 31, 2024 and 2023 were $378.9 million and $532.6 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 6, Borrowings). As of December 31, 2024 and December 31,

2023, other investments include the Company’s investment in the BDC Preferred Shares at fair value of $53.4 million and

$81.7 million, respectively (see Note 9, Related Party Transactions).

Investment Income (Loss)

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


	Year Ended December 31,
	2024	2023	2022
	(Dollars in millions)
Performance allocations
Realized	$1,047.5	$867.0	$2,048.8
Unrealized	968.2	(955.6)	(721.3)
	2,015.7	(88.6)	1,327.5
Principal investment income (loss) from equity method investments (excluding performance allocations)
Realized	184.5	231.7	73.1
Unrealized	52.0	(115.1)	546.4
	236.5	116.6	619.5
Principal investment income (loss) from investments in CLOs and other investments
Realized	3.8	(1.1)	5.0
Unrealized(1)	(1.6)	17.9	(54.0)
	2.2	16.8	(49.0)
Total	$2,254.4	$44.8	$1,898.0

(1) The year ended December 31, 2024 includes the reversal of $45.5 million of previously recorded unrealized investment income on the BDC Preferred

Shares (see Note 9, Related Party Transactions for more information). The years ended December 31, 2024 and December 31, 2023 include

investment gain (loss) of $5.3 million and $(13.3) million, respectively, associated with the remeasurement of corporate investments, resulting from

observable price changes pursuant to ASC 321, Investments–Equity Securities.

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


	Year Ended December 31,
	2024	2023	2022
	(Dollars in millions)
Global Private Equity	$1,559.9	$(551.5)	$1,098.3
Global Credit	227.7	163.7	24.0
Global Investment Solutions	228.1	299.2	205.2
Total	$2,015.7	$(88.6)	$1,327.5

The following tables summarize the funds that are the primary drivers of performance allocations for the years ended

December 31, 2024, 2023, and 2022, as well as the total revenue recognized, including performance allocations as well as fund

management fees and principal investment income:


Year Ended December 31, 2024
(Dollars in millions)
Global Private Equity	CP VII	$1,483.3


Year Ended December 31, 2023
(Dollars in millions)
Global Private Equity	CP VI	$(238.0)
Global Private Equity	CP VII	(391.8)


Year Ended December 31, 2022
(Dollars in millions)
Global Private Equity	CP VI	$(436.9)

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


	Year Ended December 31,
	2024	2023	2022
	(Dollars in millions)
Global Private Equity	$140.8	$157.6	$744.8
Global Credit	71.2	(60.0)	(134.8)
Global Investment Solutions	24.5	19.0	9.5
Total	$236.5	$116.6	$619.5

Principal investment income for Global Private Equity includes the Company’s equity income allocation from NGP

performance allocations of $35.5 million, $65.5 million and $560.7 million for years ended December 31, 2024, 2023 and 2022,

respectively. Principal investment loss for Global Credit for the year ended December 31, 2023 includes an investment loss of

$104.0 million on the Company’s equity method investment in Carlyle FRL related to the dilution of the Company’s indirect

ownership in Fortitude from 13.5% to 10.5%. Principal investment loss for Global Credit for the year ended December 31, 2022

includes an investment loss of $176.9 million on the Company’s equity method investment in Carlyle FRL related to the

dilution of the Company’s indirect ownership in Fortitude from 19.9% to 13.5%.

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 year ended December 31, 2024, the Company formed seven new CLOs for which the Company is the

primary beneficiary. Investments in Consolidated Funds as of December 31, 2024 also include $441.9 million related to

investments that have been bridged by the Company to investment funds and are accounted for as consolidated VIEs.

The following table presents a summary of the investments held by the Consolidated Funds. Investments held by the

Consolidated Funds do not represent the investments of all Carlyle sponsored funds.


	Fair Value		Percentage of Investments of Consolidated Funds
	Fair Value		Percentage of Investments of Consolidated Funds
Geographic Region/Instrument Type/ Industry	December 31,		December 31,
Description or Investment Strategy	2024	2023	2024	2023
	(Dollars in millions)
United States
Equity securities:
Business Services	$30.0	$—	0.39%	—%
Infrastructure	361.3	366.5	4.64%	5.05%
Technology	17.3	—	0.22%	—%
Transportation	29.1	—	0.37%	—%
Other	83.2	7.8	1.07%	0.11%
Total equity securities (cost of $543.7 and $397.3 at December 31, 2024 and 2023, respectively)	520.9	374.3	6.69%	5.16%
Partnership and LLC interests:
Fund Investments	$312.7	$490.9	4.02%	6.77%
Total Partnership and LLC interests (cost of $194.8 and $389.2 at December 31, 2024 and 2023, respectively)	312.7	490.9	4.02%	6.77%
Loans:
Aerospace & Defense	$9.3	$10.1	0.12%	0.14%
Collateralized Debt Obligation	7.2	13.0	0.09%	0.18%
Environmental Industries	0.9	0.9	0.01%	0.01%
Education	11.6	14.7	0.15%	0.20%
Total loans (cost of $24.0 and $36.3 at December 31, 2024 and 2023, respectively)	29.0	38.7	0.37%	0.53%
Assets of the CLOs:
Bonds	$90.1	$80.5	1.16%	1.11%
Equity	3.8	2.0	0.05%	0.03%
Loans	3,844.6	3,100.0	49.40%	42.74%
Total assets of the CLOs (cost of $3,943.3 and $3,256.0 at December 31, 2024 and 2023, respectively)	3,938.5	3,182.5	50.61%	43.88%
Total United States	$4,801.1	$4,086.4	61.69%	56.34%


Europe
Equity securities:
Software	$10.6	$—	0.14%	—%
Total equity securities (cost of $10.7 and $— at December 31, 2024 and 2023, respectively)	10.6	—	0.14%	—%
Assets of the CLOs:
Bonds	$373.1	$437.9	4.79%	6.04%
Equity	0.1	1.3	0.01%	0.02%
Loans	2,479.9	2,652.6	31.87%	36.57%
Total assets of the CLOs (cost of $2,889.4 and $3,231.8 at December 31, 2024 and 2023, respectively)	2,853.1	3,091.8	36.67%	42.63%
Total Europe	$2,863.7	$3,091.8	36.81%	42.63%
Global
Equity securities:
Consumer	$28.3	$—	0.36%	—%
Hardware	9.6	—	0.12%	—%
Total equity securities (cost of $39.9 and $— at December 31, 2024 and 2023, respectively)	37.9	—	0.48%	—%
Assets of the CLOs:
Bonds	$1.9	$4.1	0.02%	0.06%
Loans	77.8	70.8	1.00%	0.97%
Total assets of the CLOs (cost of $80.7 and $77.3 at December 31, 2024 and 2023, respectively)	79.7	74.9	1.02%	1.03%
Total Global	$117.6	$74.9	1.50%	1.03%
Total investments of Consolidated Funds (cost of $7,726.5 and $7,387.9 at December 31, 2024 and 2023, respectively)	$7,782.4	$7,253.1	100.00%	100.00%

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:


	Year Ended December 31,
	2024	2023	2022
	(Dollars in millions)
Interest income from investments	$577.6	$512.4	$282.3
Other income	54.0	57.7	28.7
Total	$631.6	$570.1	$311.0

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:


	Year Ended December 31,
	2024	2023	2022
	(Dollars in millions)
Gains (losses) from investments of Consolidated Funds	$96.4	$246.9	$(408.1)
Gains (losses) from liabilities of CLOs	(72.4)	(240.0)	366.6
Total	$24.0	$6.9	$(41.5)

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

Funds:


	Year Ended December 31,
	2024	2023	2022
	(Dollars in millions)
Realized gains (losses)	$(60.7)	$(80.8)	$(29.6)
Net change in unrealized gains (losses)	157.1	327.7	(378.5)
Total	$96.4	$246.9	$(408.1)