Investments

3 Months Ended

Mar. 31, 2025

4. Investments

Investments consist of the following:


	As of
	March 31, 2025	December 31, 2024
	(Dollars in millions)
Accrued performance allocations	$6,985.8	$7,053.5
Principal equity method investments, excluding performance allocations	3,153.2	3,292.3
Principal investments in CLOs	365.5	378.9
Other investments	235.4	212.0
Total	$10,739.9	$10,936.7

Accrued Performance Allocations

The components of accrued performance allocations are as follows:


	As of
	March 31, 2025	December 31, 2024
	(Dollars in millions)
Global Private Equity	$4,723.5	$4,910.2
Global Credit	589.8	527.1
Carlyle AlpInvest	1,672.5	1,616.2
Total	$6,985.8	$7,053.5

Approximately 23% and 20% of accrued performance allocations at March 31, 2025 and December 31, 2024,

respectively, was related to Carlyle Partners VII, L.P., one of the Company’s Global Private Equity funds.

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 condensed consolidated balance sheets. The components of the accrued giveback obligations are as

follows:


	As of
	March 31, 2025	December 31, 2024
	(Dollars in millions)
Global Private Equity	$(19.1)	$(18.5)
Global Credit	(25.5)	(25.5)
Total	$(44.6)	$(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 Carlyle AlpInvest 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
	March 31, 2025	December 31, 2024
	(Dollars in millions)
Global Private Equity(1)	$1,660.0	$1,818.0
Global Credit(2)	1,188.4	1,157.0
Carlyle AlpInvest	304.8	317.3
Total	$3,153.2	$3,292.3

(1)The balance includes $766.3 million and $912.0 million as of March 31, 2025 and December 31, 2024, respectively, related to the

Company’s equity method investments in NGP.

(2)The balance includes $737.4 million and $723.5 million as of March 31, 2025 and December 31, 2024, respectively, related to the

Company’s investment in Fortitude.

Investment in Fortitude

In November 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.

In June 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. Upon Fortitude calling the

remaining commitments from the capital raise in May 2023, the Company’s indirect ownership of Fortitude decreased to

10.5%. 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 March 31,

2025, 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 $737.4 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 March 31, 2025, Fortitude, its

affiliates and certain Fortitude reinsurance counterparties have committed approximately $20.6 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 condensed 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. These investments are

included in the Global Private Equity segment. NGP Management serves as the investment advisor to the NGP Energy Funds.

The Company does not control NGP and accounts for its investments in NGP under the equity method of accounting.

The Company’s investments in NGP as of March 31, 2025 and December 31, 2024 are as follows:


	As of
	March 31, 2025	December 31, 2024
	(Dollars in millions)
Investment in NGP Management	$275.7	$369.2
Investments in NGP general partners - accrued performance allocations	441.4	489.4
Principal investments in NGP funds	49.2	53.4
Total investments in NGP	$766.3	$912.0

NGP Restructuring. On March 31, 2025, the Company restructured the terms of its strategic investment in NGP (the

“Restructuring”) to further align the interests of the Company and NGP. The Restructuring eliminated previous restrictions on

the Company’s ability to pursue domestic energy strategies, established a new capital markets fees arrangement with NGP, and

terminated the Company’s obligation to grant up to $10 million of its common shares to NGP annually following a final grant

made with respect to 2030. Additionally, in order to facilitate the development of future funds while substantially maintaining

the Company’s economics on existing funds, the Restructuring reduced the Company’s allocation of the management fee

related revenues of NGP Management related to future funds, as well as its share of the performance allocations received by

current and future NGP fund general partners, as discussed further below.

Prior to the Restructuring, the Company’s equity interests in NGP Management entitled the Company to an allocation of

income equal to 55.0% of the management fee related revenues earned by NGP Management. Subsequent to the Restructuring,

for all funds that held an initial closing after December 31, 2024, the Company’s allocations of income for the management fee

related revenues will be based on a sliding scale of the total annual management fee related revenues accrued from all such

funds in the aggregate up to 55.0%, including all management fees being retained by NGP for the years 2025 through 2028 on

such future NGP funds. The Company identified the reduction of its allocation of the management fee related revenues of NGP

Management as an indicator of impairment and performed an impairment analysis. As a result of the Restructuring, the

Company concluded that the carrying value of its investment in NGP Management was impaired and recorded an impairment

charge of $92.5 million during the three months ended March 31, 2025, representing the difference in the carrying value of the

investment of $352.5 million and its fair value of $260.0 million at the time of Restructuring. The Company utilized a

discounted cash flow method for determining the fair value of its equity method investment, which is a Level III valuation

within the fair value hierarchy and utilizes significant unobservable assumptions, including discount rates and long-term growth

rates. The allocation of management fee related revenues for existing NGP funds remains unchanged, including the Company’s

interest in management fees from NGP XI, NGP XII, and NGP XIII.

The impairment charge created new basis differences with an estimated fair value of $165 million within the equity

method investment. These basis differences will be amortized over an estimated useful life ranging from five to seven years as a

reduction of principal investment income.

The Company’s investment in the general partners of the NGP Carry Funds entitled it to 47.5% (38.0% to 42.75% in the

case of certain funds) of the performance allocations received by certain current and future NGP fund general partners prior to

the Restructuring. In connection with the Restructuring, the Company’s allocation of the performance allocations from existing

NGP Carry Funds was reduced to a range of 35.1% to 43.8%, which resulted in a $38 million reduction in accrued performance

allocations during the three months ended March 31, 2025. The Company’s interest in the performance allocations from future

NGP Carry Funds will be based on a sliding scale of the fee paying capital raised in each future NGP Carry Fund, up to 47.5%

of the performance allocations received by future NGP Carry Funds.

The impairment charge related to the investment in NGP Management and the reduction in accrued performance

allocations from NGP Carry Funds are recorded in Principal investment income (loss) in the condensed consolidated statements

of operations and excluded from Distributable Earnings, as defined in Note 15, Segment Reporting.

Investment in NGP Management. As referenced above, 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 earned by existing funds, and up to

55.0% of management fees earned on future NGP funds in the aggregate, including all management fees being retained by NGP

for the years 2025 through 2028 on such future NGP funds. 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, as well as expenses associated with the compensatory elements of the investment and any impairment charges.

The net investment income (loss) recognized in the Company’s condensed consolidated statements of operations for the three

months ended March 31, 2025 and 2024 were as follows:


	Three Months Ended March 31,
	2025	2024
(Dollars in millions)
Management fee related revenues from NGP Management	$16.1	$17.3
Expenses related to the investment in NGP Management	(3.6)	(3.2)
Impairment of investment in NGP Management	(92.5)	—
Net investment income from NGP Management	$(80.0)	$14.1

Management fee related revenues from NGP Management were primarily driven by NGP XI, NGP XII, and NGP XIII

during the three months ended March 31, 2025 and NGP XII and NGP XI during the three months ended March 31, 2024.

These funds calculate management fees as 1.5% of the limited partners’ commitments less any return of capital or write-offs

during the investment period. Following the investment period, the basis on which fund management fees are generally

calculated is further reduced by a reserve for future management fees and operating costs.

Investment in the General Partners of NGP Carry Funds. As referenced above, the Company’s investment in the general

partners of the NGP Carry Funds entitle it to up to 47.5% of the performance allocations received by 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 condensed consolidated statements of

operations. The Company recognized net investment earnings (losses) related to these performance allocations (including the

$38.0 million reduction related to the Restructuring) of $(28.5) million and $15.3 million for the three months ended March 31,

2025 and 2024, respectively, in its condensed consolidated statements of operations.

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 condensed

consolidated statements of operations of $1.3 million and $2.0 million for the three months ended March 31, 2025 and 2024,

respectively.

Principal Investments in CLOs and Other Investments

Principal investments in CLOs as of March 31, 2025 and December 31, 2024 were $365.5 million and $378.9 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 March 31, 2025 other investments include

the Company’s investment in common shares of CGBD at fair value of $48.6 million. As of December 31, 2024, other

investments include the Company’s investment in preferred shares of CGBD (the “BDC Preferred Shares”) at fair value of

$53.4 million, which were exchanged for common shares effective March 27, 2025 (see Note 9, Related Party Transactions).

Investment Income (Loss)

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


	Three Months Ended March 31,
	2025	2024
(Dollars in millions)
Performance allocations
Realized	$332.9	$389.7
Unrealized	(110.0)	(546.7)
	222.9	(157.0)
Principal investment income (loss) from equity method investments (excluding performance allocations)
Realized	(29.4)	53.7
Unrealized	(33.3)	(6.6)
	(62.7)	47.1
Principal investment income (loss) from investments in CLOs and other investments
Realized	(2.0)	2.2
Unrealized	1.6	23.8
	(0.4)	26.0
Total	$159.8	$(83.9)

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


	Three Months Ended March 31,
	2025	2024
(Dollars in millions)
Global Private Equity	$85.0	$(363.5)
Global Credit	79.0	65.1
Carlyle AlpInvest	58.9	141.4
Total	$222.9	$(157.0)

The following tables summarize the funds that are the primary drivers of performance allocations for the three months

ended March 31, 2025 and 2024, as well as the total revenue recognized, including performance allocations as well as fund

management fees and principal investment income:


Three Months Ended March 31, 2025
(Dollars in millions)
Global Private Equity	Carlyle Partners VII, L.P.	$234.1
Global Private Equity	Carlyle Asia Partners V, L.P.	(227.8)


Three Months Ended March 31, 2024
(Dollars in millions)
Global Private Equity	Carlyle Europe Partners V, L.P.	$(171.5)
Global Private Equity	Carlyle Partners VI, L.P.	(86.7)
Global Private Equity	Carlyle Partners VII, L.P.	(73.1)

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


	Three Months Ended March 31,
	2025	2024
(Dollars in millions)
Global Private Equity	$(95.6)	$28.8
Global Credit	19.2	11.4
Carlyle AlpInvest	13.7	6.9
Total	$(62.7)	$47.1

Principal investment income for Global Private Equity for the three months ended March 31, 2025 included the

impairment charge related to the investment in NGP Management of $92.5 million and the reduction in accrued performance

allocations from NGP Carry Funds of $38.0 million related to the Restructuring. Principal investment income for Global Private

Equity for the three months ended March 31, 2024 included the Company’s equity income allocation from NGP performance

allocations of $15.3 million.

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 three months ended March 31, 2025, the Company became the primary beneficiary of one additional

CLO. Investments in Consolidated Funds as of March 31, 2025 also included $684.8 million related to investments that have

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

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:


	Three Months Ended March 31,
	2025	2024
(Dollars in millions)
Interest income from investments	$123.0	$142.6
Other income	10.4	22.3
Total	$133.4	$164.9

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:


	Three Months Ended March 31,
	2025	2024
(Dollars in millions)
Gains from investments of Consolidated Funds	$7.0	$82.7
Losses from liabilities of CLOs	(0.9)	(89.7)
Total	$6.1	$(7.0)

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


	Three Months Ended March 31,
	2025	2024
(Dollars in millions)
Realized gains (losses)	$(0.4)	$(21.2)
Net change in unrealized gains	7.4	103.9
Total	$7.0	$82.7