XML 29 R10.htm IDEA: XBRL DOCUMENT v3.25.1
Fair Value Measurement
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurement 3. Fair Value Measurement
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the
fair value hierarchy levels as disclosed in Note 2, Summary of Significant Accounting Policies, as of March 31, 2025:
(Dollars in millions)
Level I
Level II
Level III
Total
Assets
Investments of Consolidated Funds(1):
Equity securities(2)
$—
$—
$821.7
$821.7
Bonds
—
—
495.8
495.8
Loans
—
—
7,632.6
7,632.6
—
—
8,950.1
8,950.1
Investments in CLOs and other:
Investments in CLOs
—
—
365.5
365.5
Other investments(3)
83.2
21.2
63.7
168.1
83.2
21.2
429.2
533.6
Foreign currency forward contracts
—
2.5
—
2.5
Subtotal
$83.2
$23.7
$9,379.3
$9,486.2
Investments measured at net asset value
387.0
Total
$9,873.2
Liabilities
Loans payable of Consolidated Funds(4)(5)
$—
$—
$7,680.3
$7,680.3
Foreign currency forward contracts
—
3.0
—
3.0
Total
$—
$3.0
$7,680.3
$7,683.3
(1)This balance excludes $379.2 million of Investments of Consolidated Funds that are included in Investments measured at net asset
value, which relate to certain consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.
(2)This balance includes $684.8 million related to investments that have been bridged by the Company to investment funds and are
accounted for as consolidated VIEs as of March 31, 2025.
(3)The Level III balance excludes $55.6 million related to three corporate investments in equity securities which the Company has
elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to
ASC 321, Investments–Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is
excluded from the tabular Level III rollforward disclosures.
(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial
assets, less (i) the fair value of any beneficial interest held by the Company and (ii) the carrying value of any beneficial interests that
represent compensation for services.
(5)Loans payable of Consolidated Funds balance excludes a $121.4 million revolving credit balance.
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the
above fair value hierarchy levels as of December 31, 2024:
(Dollars in millions)
Level I
Level II
Level III
Total
Assets
Investments of Consolidated Funds(1):
Equity securities(2)
$—
$—
$572.0
$572.0
Bonds
—
—
465.1
465.1
Loans
—
—
6,431.4
6,431.4
Other
—
1.3
—
1.3
—
1.3
7,468.5
7,469.8
Investments in CLOs and other:
Investments in CLOs
—
—
378.9
378.9
Other investments(3)
40.4
21.5
85.1
147.0
40.4
21.5
464.0
525.9
Subtotal
$40.4
$22.8
$7,932.5
$7,995.7
Investments measured at net asset value
320.7
Total
$8,316.4
Liabilities
Loans payable of Consolidated Funds(4)(5)
$—
$—
$6,809.1
$6,809.1
Foreign currency forward contracts
—
0.6
—
0.6
Total
$—
$0.6
$6,809.1
$6,809.7
(1)This balance excludes $312.6 million of Investments of Consolidated Funds that are included in Investments measured at net asset
value, which relate to certain consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.
(2)This balance includes $441.9 million related to investments that have been bridged by the Company to investment funds and are
accounted for as consolidated VIEs as of December 31, 2024.
(3)The Level III balance excludes $55.4 million related to three corporate investments in equity securities which the Company has
elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to
ASC 321, Investments–Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is
excluded from the tabular Level III rollforward disclosures.
(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial
assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that
represent compensation for services.
(5)Loans payable of Consolidated Funds balance excludes a $55.1 million revolving credit balance.
 
The changes in financial instruments measured at fair value for which the Company has used Level III inputs to
determine fair value are as follows (Dollars in millions):
Financial Assets
Three Months Ended March 31, 2025
 
Investments of Consolidated Funds
 
 
 
Equity
securities
Bonds
Loans
Investments in
CLOs
Other
investments
Total
Balance, beginning of period
$572.0
$465.1
$6,431.4
$378.9
$85.1
$7,932.5
Initial consolidation of funds(1)
—
24.0
167.9
1.0
—
192.9
Transfer out related to the Exchange(2)
—
—
—
—
(50.4)
(50.4)
Purchases
253.2
56.4
2,225.3
1.1
37.8
2,573.8
Sales and distributions
(9.0)
(72.6)
(943.9)
(36.2)
(11.2)
(1,072.9)
Settlements
—
—
(358.9)
—
—
(358.9)
Realized and unrealized gains (losses), net
Included in earnings
5.5
4.5
(10.9)
12.0
2.4
13.5
Included in other comprehensive income
—
18.4
121.7
8.7
—
148.8
Balance, end of period
$821.7
$495.8
$7,632.6
$365.5
$63.7
$9,379.3
Changes in unrealized gains (losses) included in earnings
related to financial assets still held at the reporting date
$4.8
$4.2
$0.6
$10.2
$5.1
$24.9
Changes in unrealized gains (losses) included in other
comprehensive income related to financial assets still held at
the reporting date
$—
$15.5
$109.4
$9.7
$—
$134.6
Financial Assets
Three Months Ended March 31, 2024
 
Investments of Consolidated Funds
 
 
 
Equity
securities
Bonds
Loans
Investments in
CLOs
Other
investments
Total
Balance, beginning of period
$377.6
$522.5
$5,862.1
$532.6
$84.6
$7,379.4
Purchases
24.8
46.4
1,397.4
1.0
—
1,469.6
Sales and distributions
(6.1)
(72.8)
(729.5)
(24.0)
(0.9)
(833.3)
Settlements
—
—
(464.7)
—
—
(464.7)
Realized and unrealized gains (losses), net
Included in earnings
(9.0)
15.6
72.8
15.2
9.5
104.1
Included in other comprehensive income
—
(11.3)
(73.2)
(4.0)
—
(88.5)
Balance, end of period
$387.3
$500.4
$6,064.9
$520.8
$93.2
$7,566.6
Changes in unrealized gains (losses) included in earnings
related to financial assets still held at the reporting date
$(9.0)
$16.4
$60.8
$15.2
$8.6
$92.0
Changes in unrealized gains (losses) included in other
comprehensive income related to financial assets still held at
the reporting date
$—
$(10.2)
$(68.9)
$(4.0)
$—
$(83.1)
(1)As a result of the initial consolidation of one fund during the three months ended March 31, 2025.
(2)Represents the exchange of the BDC Preferred Shares, which were valued using Level III inputs, for common shares of CGBD, which
are valued using Level I inputs. See Note 9, Related Party Transactions, for more information.
 
Financial Liabilities
Loans Payable of Consolidated Funds
 
Three Months Ended March 31,
 
2025
2024
Balance, beginning of period
$6,809.1
$6,298.6
Initial consolidation of funds(1)
193.8
—
Borrowings
782.1
546.7
Paydowns
(242.1)
(207.7)
Sales
(6.5)
(288.7)
Realized and unrealized (gains) losses, net
Included in earnings
1.2
89.4
Included in other comprehensive income
142.7
(86.0)
Balance, end of period
$7,680.3
$6,352.3
Changes in unrealized (gains) losses included in earnings related to
financial liabilities still held at the reporting date
$10.0
$91.1
Changes in unrealized (gains) losses included in other comprehensive
income related to financial liabilities still held at the reporting date
$133.5
$(87.9)
(1) As a result of the initial consolidation of one fund during the three months ended March 31, 2025.
Realized and unrealized gains and losses included in earnings for Level III investments for investments in CLOs and
other investments are included in investment income (loss), and such gains and losses for investments of Consolidated Funds
and loans payable of the Consolidated Funds are included in net investment gains (losses) of Consolidated Funds in the
condensed consolidated statements of operations.
Gains and losses included in other comprehensive income for all Level III financial asset and liabilities are included in
accumulated other comprehensive loss and non-controlling interests in consolidated entities.
The following table summarizes quantitative information about the Company’s Level III inputs as of March 31, 2025:
Fair Value at
Valuation Technique(s)
Unobservable Input(s)
Range
(Weighted Average)
Impact to
Valuation
from Increase
in Input
(Dollars in millions)
March 31, 2025
Assets
Investments of Consolidated
Funds:
Equity securities
$4.6
Consensus Pricing
Indicative Quotes ($ per share)
0.00 - 79.83 (0.27)
Higher
642.4
Discounted Cash Flow
Discount Rates
9% - 17% (11%)
Lower
Terminal Growth Rate
0% - 7% (4%)
Higher
Comparable Multiple
EBITDA Multiple
6.8x - 21.8x (12.3x)
Higher
TCF Multiple
28.9x - 28.9x (28.9x)
Higher
71.7
Discounted Cash Flow
Discount Rates
7% - 34% (21%)
Lower
Constant Prepayment Rate
6% - 18% (9%)
Lower
Constant Default Rate
0% - 6% (2%)
Lower
Recovery Rate
0% - 40% (24%)
Higher
103.0
Other(1)
N/A
N/A
N/A
Bonds
495.8
Consensus Pricing
Indicative Quotes (% of Par)
31 - 107 (95)
Higher
Loans
7,527.4
Consensus Pricing
Indicative Quotes (% of Par)
0 - 103 (98)
Higher
97.4
Discounted Cash Flow
Discount Rates
7% - 17% (10%)
Lower
6.5
Discounted Cash Flow
Discount Rates
15% - 15% (15%)
Lower
Constant Prepayment Rate
8% - 14% (11%)
Lower
Constant Default Rate
1% - 1% (1%)
Lower
Recovery Rate
0% - 0% (0%)
Higher
1.3
Other(1)
N/A
N/A
N/A
8,950.1
Investments in CLOs:
Senior secured notes
305.7
Consensus Pricing with
Discounted Cash Flow
Indicative Quotes (% of Par)
87 - 101 (100)
Higher
Discount Margins (Basis
Points)
86 - 1,355 (193)
Lower
Default Rates
2% - 2% (2%)
Lower
Recovery Rates
60% - 60% (60%)
Higher
Subordinated notes and
preferred shares
59.8
Consensus Pricing with
Discounted Cash Flow
Indicative Quotes (% of Par)
1 - 100 (42)
Higher
Discount Rates
5% - 36% (15%)
Lower
Default Rates
2% - 2% (2%)
Lower
Recovery Rates
60% - 60% (60%)
Higher
Other investments:
Aviation subordinated
notes
8.5
Discounted Cash Flow
Discount Rates
21% - 21% (21%)
Lower
Loans
55.2
Consensus Pricing with
Discounted Cash Flow
Indicative Quotes (% of Par)
97 - 99 (98)
Higher
Discount Rates
9% - 16% (11%)
Lower
Comparable Multiple
EBITDA Multiple
6.0x - 6.0x (6.0x)
Higher
Total
$9,379.3
Liabilities
Loans payable of Consolidated
 Funds:
Senior secured notes
$7,434.2
Other(2)
N/A
N/A
N/A
Subordinated notes and
preferred shares
246.1
Consensus Pricing with
Discounted Cash Flow
Indicative Quotes (% of Par)
15 - 89 (53)
Higher
Discount Rates
(3)% - 35% (13%)
Lower
Default Rates
1% - 2% (2%)
Lower
Recovery Rates
60% - 60% (60%)
Higher
Total
$7,680.3
(1)Fair value approximates transaction price that was in close proximity to the reporting date.
(2)Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,
less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent
compensation for services.
The following table summarizes quantitative information about the Company’s Level III inputs as of December 31, 2024:
Fair Value at
Valuation Technique(s)
Unobservable Input(s)
Range
(Weighted Average)
Impact to
Valuation
from
Increase in
Input
(Dollars in millions)
December 31, 2024
Assets
Investments of Consolidated
Funds:
Equity securities
$3.9
Consensus Pricing
Indicative Quotes ($ per share)
0.00 - 112.17 (0.01)
Higher
485.0
Discounted Cash Flow
Discount Rates
10% - 13% (11%)
Lower
Terminal Growth Rate
3% - 7% (6%)
Higher
Comparable Multiple
EBITDA Multiple
7.7x - 23.2x (12.8x)
Higher
TCF Multiple
26.0x - 26.0x (26.0x)
Higher
38.2
Discounted Cash Flow
Discount Rates
14% - 34% (18%)
Lower
Constant Prepayment Rate
6% - 16% (11%)
Lower
Constant Default Rate
1% - 4% (2%)
Lower
Recovery Rate
0% - 40% (17%)
Higher
44.9
Other(1)
N/A
N/A
N/A
Bonds
465.1
Consensus Pricing
Indicative Quotes (% of Par)
30 - 103 (93)
Higher
Loans
6,408.2
Consensus Pricing
Indicative Quotes (% of Par)
0 - 105 (97)
Higher
10.2
Discounted Cash Flow
Discount Rates
9% - 19% (18%)
Lower
6.4
Discounted Cash Flow
Discount Rates
16% - 16% (16%)
Lower
Constant Prepayment Rate
8% - 14% (11%)
Lower
Constant Default Rate
1% - 1% (1%)
Lower
Recovery Rate
0% - 0% (0%)
Higher
Other
6.6
Other(1)
N/A
N/A
N/A
7,468.5
Investments in CLOs
Senior secured notes
321.8
Discounted Cash Flow
with Consensus Pricing
Indicative Quotes (% of Par)
80 - 101 (99)
Higher
Discount Margins (Basis
Points)
113 - 1,535 (214)
Lower
Default Rates
2% - 2% (2%)
Lower
Recovery Rates
60% - 60% (60%)
Higher
Subordinated notes and
preferred shares
57.1
Discounted Cash Flow
with Consensus Pricing
Indicative Quotes (% of Par)
1 - 103 (38)
Higher
Discount Rate
4% - 35% (16%)
Lower
Default Rates
1% - 2% (2%)
Lower
Recovery Rates
60% - 60% (60%)
Higher
Other investments:
BDC preferred shares
53.4
Other(2)
Net Asset Value per Share
16.80 - 16.80 (16.80)
Lower
Aviation subordinated
notes
2.9
Discounted Cash Flow
Discount Rates
21% - 21% (21%)
Lower
Loans
28.8
Consensus Pricing
Indicative Quotes (% of Par)
99 - 99 (99)
Higher
Total
$7,932.5
Liabilities
Loans payable of Consolidated
Funds:
Senior secured notes
$6,598.8
Other(3)
N/A
N/A
N/A
Subordinated notes and
preferred shares
210.3
Discounted Cash Flow
with Consensus Pricing
Indicative Quotes (% of Par)
11 - 87 (34)
Higher
Discount Rates
2% - 35% (15%)
Lower
Default Rates
1% - 2% (2%)
Lower
Recovery Rates
60% - 60% (60%)
Higher
Total
$6,809.1
(1)Fair value approximates transaction price that was in close proximity to the reporting date.
(2)See Note 9, Related Party Transactions, for more information.
(3)Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,
less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent
compensation for services.