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Segment Reporting
 12 Months Ended
Dec. 31, 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
insurance solutions, liquid credit, opportunistic credit, direct lending, asset-backed finance, aviation finance,
infrastructure credit, cross-platform credit products, 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”), 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 (comprised 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, 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.
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 following tables present the financial data for the Company’s three reportable segments for the year ended
December 31, 2024:
 
Year Ended December 31, 2024
 
Global
Private
Equity
Global
Credit
Global
Investment
Solutions
Total
 
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$1,212.0
$558.3
$337.2
$2,107.5
Portfolio advisory and transaction fees, net and other
24.6
138.8
0.2
163.6
Fee related performance revenues
6.9
109.1
16.7
132.7
Total fund level fee revenues
1,243.5
806.2
354.1
2,403.8
Realized performance revenues
927.2
32.0
116.7
1,075.9
Realized principal investment income
49.7
46.2
5.1
101.0
Interest income
28.1
39.0
7.6
74.7
Total revenues
2,248.5
923.4
483.5
3,655.4
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits
422.8
320.1
118.8
861.7
Realized performance revenues related compensation
590.1
19.4
100.3
709.8
Total compensation and benefits
1,012.9
339.5
219.1
1,571.5
General, administrative, and other indirect expenses(1)
195.2
140.4
55.1
390.7
Depreciation and amortization expense
26.8
13.2
6.8
46.8
Interest expense
56.3
53.0
11.6
120.9
Total expenses
1,291.2
546.1
292.6
2,129.9
(=) Distributable Earnings
$957.3
$377.3
$190.9
$1,525.5
(-) Realized Net Performance Revenues
337.1
12.6
16.4
366.1
(-) Realized Principal Investment Income
49.7
46.2
5.1
101.0
(+) Net Interest
28.2
14.0
4.0
46.2
(=) Fee Related Earnings
$598.7
$332.5
$173.4
$1,104.6
(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 following tables present the financial data for the Company’s three reportable segments for the year ended
December 31, 2023:
 
Year Ended December 31, 2023
 
Global
Private
Equity
Global
Credit
Global
Investment
Solutions
Total
 
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$1,309.8
$512.2
$242.4
$2,064.4
Portfolio advisory and transaction fees, net and other
18.4
62.0
—
80.4
Fee related performance revenues
68.3
89.1
3.6
161.0
Total fund level fee revenues
1,396.5
663.3
246.0
2,305.8
Realized performance revenues
805.1
43.5
89.7
938.3
Realized principal investment income
45.3
37.1
6.4
88.8
Interest income
31.6
34.7
5.9
72.2
Total revenues
2,278.5
778.6
348.0
3,405.1
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits
583.8
324.5
123.6
1,031.9
Realized performance revenues related compensation
308.1
20.3
78.9
407.3
Total compensation and benefits
891.9
344.8
202.5
1,439.2
General, administrative, and other indirect expenses(1)
221.9
106.8
47.8
376.5
Depreciation and amortization expense
26.0
7.6
4.4
38.0
Interest expense
66.9
45.0
9.0
120.9
Total expenses
1,206.7
504.2
263.7
1,974.6
(=) Distributable Earnings
$1,071.8
$274.4
$84.3
$1,430.5
(-) Realized Net Performance Revenues
497.0
23.2
10.8
531.0
(-) Realized Principal Investment Income
45.3
37.1
6.4
88.8
(+) Net Interest
35.3
10.3
3.1
48.7
(=) Fee Related Earnings
$564.8
$224.4
$70.2
$859.4
(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 following tables present the financial data for the Company’s three reportable segments for the year ended
December 31, 2022:
 
Year Ended December 31, 2022
 
Global
Private
Equity
Global
Credit
Global
Investment
Solutions
Total
 
(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees
$1,300.9
$473.1
$222.9
$1,996.9
Portfolio advisory and transaction fees, net and other
29.5
81.6
—
111.1
Fee related performance revenues
69.4
59.9
—
129.3
Total fund level fee revenues
1,399.8
614.6
222.9
2,237.3
Realized performance revenues
1,656.6
131.5
192.6
1,980.7
Realized principal investment income
108.7
38.1
3.8
150.6
Interest income
14.9
15.3
2.6
32.8
Total revenues
3,180.0
799.5
421.9
4,401.4
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits
598.3
284.2
111.7
994.2
Realized performance revenues related compensation
751.5
61.3
169.4
982.2
Total compensation and benefits
1,349.8
345.5
281.1
1,976.4
General, administrative, and other indirect expenses(1)
235.3
97.7
36.8
369.8
Depreciation and amortization expense
25.6
8.2
5.1
38.9
Interest expense
63.7
32.6
11.0
107.3
Total expenses
1,674.4
484.0
334.0
2,492.4
(=) Distributable Earnings
$1,505.6
$315.5
$87.9
$1,909.0
(-) Realized Net Performance Revenues
905.1
70.2
23.2
998.5
(-) Realized Principal Investment Income
108.7
38.1
3.8
150.6
(+) Net Interest
48.8
17.3
8.4
74.5
(=) Fee Related Earnings
$540.6
$224.5
$69.3
$834.4
(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 following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes for the
years ended December 31, 2024, 2023 and 2022:
 
Year Ended December 31, 2024
 
Total Reportable
Segments
Consolidated
Funds
Reconciling
Items
 
Carlyle
Consolidated
 
(Dollars in millions)
Revenues
$3,655.4
$631.6
$1,138.8
(a)
 
$5,425.8
Expenses
$2,129.9
$610.3
$1,315.9
(b)
 
$4,056.1
Other income (loss)
$—
$24.0
$—
(c)
 
$24.0
Distributable earnings
$1,525.5
$45.3
$(177.1)
(d)
 
$1,393.7
 
 
Year Ended December 31, 2023
 
Total Reportable
Segments
Consolidated
Funds
Reconciling
Items
 
Carlyle
Consolidated
 
(Dollars in millions)
Revenues
$3,405.1
$570.1
$(1,011.3)
(a)
 
$2,963.9
Expenses
$1,974.6
$460.3
$1,136.8
(b)
 
$3,571.7
Other income (loss)
$—
$6.9
$—
(c)
 
$6.9
Distributable earnings
$1,430.5
$116.7
$(2,148.1)
(d)
 
$(600.9)
 
Year Ended December 31, 2022
 
Total Reportable
Segments
Consolidated
Funds
Reconciling
Items
 
Carlyle
Consolidated
 
(Dollars in millions)
Revenues
$4,401.4
$311.0
$(273.7)
(a)
 
$4,438.7
Expenses
$2,492.4
$255.3
$77.0
(b)
 
$2,824.7
Other income (loss)
$—
$(41.5)
$—
(c)
 
$(41.5)
Distributable earnings
$1,909.0
$14.2
$(350.7)
(d)
 
$1,572.5
(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:
Year Ended December 31,
2024
2023
2022
(Dollars in millions)
Unrealized performance and fee related performance revenues
$1,031.9
$(1,046.6)
$(142.5)
Unrealized principal investment income (loss)
34.1
36.1
(38.3)
Principal investment loss from dilution of indirect investment in Fortitude
—
(104.0)
(176.9)
Adjustments related to expenses associated with investments in NGP
Management and its affiliates
(13.1)
(13.8)
(12.9)
Tax expense associated with certain foreign performance revenues
—
—
0.1
Non-controlling interests and other adjustments to present certain costs on a net
basis
167.9
191.6
119.0
Elimination of revenues of Consolidated Funds
(82.0)
(74.6)
(22.2)
$1,138.8
$(1,011.3)
$(273.7)
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 years ended December 31, 2024, 2023 and 2022:
Year Ended December 31,
2024
2023
2022
(Dollars in millions)
Total Reportable Segments - Fund level fee revenues
$2,403.8
$2,305.8
$2,237.3
Adjustments(1)
(215.7)
(262.6)
(207.2)
Carlyle Consolidated - Fund management fees
$2,188.1
$2,043.2
$2,030.1
(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:
 
Year Ended December 31,
 
2024
2023
2022
(Dollars in millions)
Unrealized performance and fee related performance revenue compensation expense
$635.2
$612.6
$(326.2)
Equity-based compensation
476.5
260.1
161.9
Acquisition or disposition-related charges and amortization of intangibles and
impairment
136.6
145.3
187.4
Tax (expense) benefit associated with certain foreign performance revenues related
compensation
(1.0)
(1.0)
2.9
Non-controlling interests and other adjustments to present certain costs on a net basis
92.8
148.7
82.7
Other adjustments
21.2
11.6
12.4
Elimination of expenses of Consolidated Funds
(45.4)
(40.5)
(44.1)
$1,315.9
$1,136.8
$77.0
 
(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:
 
Year Ended December 31,
 
2024
2023
2022
(Dollars in millions)
Income (loss) before provision for income taxes
$1,393.7
$(600.9)
$1,572.5
Adjustments:
Net unrealized performance and fee related performance revenues
(396.7)
1,659.2
(183.7)
Unrealized principal investment (income) loss
(34.1)
(36.1)
38.3
Principal investment loss from dilution of indirect investment in Fortitude
—
104.0
176.9
Equity-based compensation(1)
476.5
260.1
161.9
Acquisition or disposition-related charges, including amortization of intangibles
and impairment
136.6
145.3
187.4
Net income attributable to non-controlling interests in consolidated entities
(70.7)
(111.7)
(59.7)
Tax (expense) benefit associated with certain foreign performance revenues
(1.0)
(1.0)
3.0
Other adjustments(2)
21.2
11.6
12.4
Distributable Earnings
$1,525.5
$1,430.5
$1,909.0
Realized performance revenues, net of related compensation(3)
366.1
531.0
998.5
Realized principal investment income(3)
101.0
88.8
150.6
Net interest
46.2
48.7
74.5
Fee Related Earnings
$1,104.6
$859.4
$834.4
(1)Equity-based compensation for the years ended December 31, 2024, 2023 and 2022 includes amounts that are presented in
principal investment income and general, administrative and other expenses in the Company’s U.S. GAAP 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:
 
Year Ended December 31, 2024
 
Carlyle
Consolidated
Adjustments(4)
Total
Reportable
Segments
 
(Dollars in millions)
Performance revenues
$2,015.7
$(939.8)
$1,075.9
Performance revenues related compensation expense
1,361.5
(651.7)
709.8
Net performance revenues
$654.2
$(288.1)
$366.1
Principal investment income (loss)
$238.7
$(137.7)
$101.0
 
Year Ended December 31, 2023
 
Carlyle
Consolidated
Adjustments(4)
Total
Reportable
Segments
 
(Dollars in millions)
Performance revenues
$(88.6)
$1,026.9
$938.3
Performance revenues related compensation expense
1,103.7
(696.4)
407.3
Net performance revenues
$(1,192.3)
$1,723.3
$531.0
Principal investment income (loss)
$133.4
$(44.6)
$88.8
 
Year Ended December 31, 2022
 
Carlyle
Consolidated
Adjustments(4)
Total
Reportable
Segments
 
(Dollars in millions)
Performance revenues
$1,327.5
$653.2
$1,980.7
Performance revenues related compensation expense
719.9
262.3
982.2
Net performance revenues
$607.6
$390.9
$998.5
Principal investment income (loss)
$570.5
$(419.9)
$150.6
 
(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.
Information by Geographic Location
Carlyle primarily transacts business in the United States and a significant amount of its revenues are generated
domestically. The Company has established investment vehicles whose primary focus is making investments in specified
geographical locations. The tables below present consolidated revenues and assets based on the geographical focus of the
associated investment vehicle.
 
 
Total Revenues
Total Assets
 
Share
%
Share
%
 
(Dollars in millions)
Year Ended December 31, 2024
Americas(1)
$4,096.4
76%
$14,351.8
62%
EMEA(2)
1,047.6
19%
7,820.7
34%
Asia-Pacific(3)
281.8
5%
931.0
4%
Total
$5,425.8
100%
$23,103.5
100%
 
 
Total Revenues
Total Assets
 
Share
%
Share
%
 
(Dollars in millions)
Year Ended December 31, 2023
Americas(1)
$1,289.0
44%
$11,129.2
52%
EMEA(2)
1,318.9
44%
8,797.2
42%
Asia-Pacific(3)
356.0
12%
1,249.6
6%
Total
$2,963.9
100%
$21,176.0
100%
 
 
Total Revenues
Total Assets
 
Share
%
Share
%
 
(Dollars in millions)
Year Ended December 31, 2022
Americas(1)
$2,560.0
58%
$11,662.8
55%
EMEA(2)
1,603.8
36%
8,632.9
40%
Asia-Pacific(3)
274.9
6%
1,107.3
5%
Total
$4,438.7
100%
$21,403.0
100%
 
(1)Relates to investment vehicles whose primary focus is the United States or South America.
(2)Relates to investment vehicles whose primary focus is Europe, the Middle East, and Africa.
(3)Relates to investment vehicles whose primary focus is Asia, including China, Japan, India, South Korea, and Australia.