XML 35 R16.htm IDEA: XBRL DOCUMENT v3.25.1
Related Party Transactions
 3 Months Ended
Mar. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions 9. Related Party Transactions
Due from Affiliates and Other Receivables, Net
The Company had the following due from affiliates and other receivables at March 31, 2025 and December 31, 2024: 
 
As of
 
March 31,
2025
December 31,
2024
 
(Dollars in millions)
Accrued incentive fees
$38.7
$33.7
Unbilled receivable for giveback obligations from current and former employees
11.5
11.5
Notes receivable and accrued interest from affiliates
56.5
46.2
Management fee receivable, net
268.9
296.4
Reimbursable expenses and other receivables from unconsolidated funds and affiliates, net
414.6
417.8
Total
$790.2
$805.6
Reimbursable expenses and other receivables from certain of the unconsolidated funds and portfolio companies relate to
advisory fees receivable and expenses paid on behalf of these entities. These costs generally represent costs related to the
pursuit of actual or proposed investments, professional fees and expenses associated with the acquisition, holding and
disposition of the investments. The affiliates are obligated at the discretion of the Company to reimburse the expenses. Based
on management’s determination, the Company accrues and charges interest on amounts due from affiliate accounts at interest
rates ranging up to 7.02% as of March 31, 2025. The accrued and charged interest to the affiliates was not significant for any
period presented.
Notes receivable includes loans that the Company has provided to certain unconsolidated funds to meet short-term
obligations to purchase investments. Notes receivable as of March 31, 2025 and December 31, 2024 also include interest-
bearing loans of $21.7 million and $22.8 million, respectively, to certain eligible Carlyle employees, which excludes Section 16
officers and other members of senior management, to finance their investments in certain Carlyle sponsored funds. These
advances accrue interest at the WSJ Prime Rate minus 1.00% floating with a floor rate of 3.50% (6.50% as of March 31, 2025)
and are collateralized by each borrower’s interest in the Carlyle sponsored funds.
These receivables are assessed regularly for collectability. Management fee receivable amounts determined to be
uncollectible are recorded as a reduction in revenue in the condensed consolidated statements of operations. For all other
receivables, amounts determined to be uncollectible are charged directly to general, administrative and other expenses in the
condensed consolidated statements of operations. A corresponding allowance for doubtful accounts is recorded and such
amounts were not significant for any period presented.
Due to Affiliates
The Company had the following due to affiliates balances at March 31, 2025 and December 31, 2024: 
 
As of
 
March 31,
2025
December 31,
2024
 
(Dollars in millions)
Due to affiliates of Consolidated Funds
$55.5
$5.3
Due to non-consolidated affiliates
138.1
134.1
Amounts owed under the tax receivable agreement
71.6
77.2
Other
27.6
25.3
Total
$292.8
$241.9
The Company has recorded obligations for amounts due to certain of its affiliates. The Company periodically offsets
expenses it has paid on behalf of its affiliates against these obligations.
In connection with the Company’s initial public offering, the Company entered into a tax receivable agreement with the
limited partners of the Carlyle Holdings partnerships whereby certain subsidiaries of the Partnership agreed to pay to the limited
partners of the Carlyle Holdings partnerships involved in any exchange transaction 85% of the amount of cash tax savings, if
any, in U.S. federal, state and local income tax realized as a result of increases in tax basis resulting from exchanges of Carlyle
Holdings Partnership units for common units of The Carlyle Group L.P.
Other Related Party Transactions
Aircraft Transactions
Entities controlled by our co-founders own aircraft that may be used for the Company’s business in the ordinary course of
its operations. The hourly rates that the Company pays for the use of these aircraft are based on current market rates for
chartering private aircraft of the same type. The Company incurred $0.4 million for the use of these aircraft for the three months
ended March 31, 2025, all of which was paid directly to the manager of the aircraft and a significant portion of which ultimately
was paid to or for the benefit of certain co-founders.
BDC Preferred Shares
On May 5, 2020, the Company purchased 2,000,000 of the BDC Preferred Shares from CGBD in a private placement at a
price of $25 per share. Prior to the Exchange, as discussed below, dividends were payable on a quarterly basis in an initial
amount equal to 7.0% per annum payable in cash, or, at CGBD’s option, 9.0% per annum payable in additional BDC Preferred
Shares. The BDC Preferred Shares were convertible at the Company’s option, in whole or in part, into the number of shares of
common stock equal to $25 per share plus any accumulated but unpaid dividends divided by an initial conversion price of $9.50
per share, subject to certain adjustments.
In August 2024, to facilitate a merger between CGBD and another Carlyle-advised BDC (the “Merger”), the Company
agreed to exchange its 2,000,000 preferred shares into newly issued common shares of CGBD at a price equal to the net asset
value per common share on the date of completion of the Merger (the “Exchange”). The Merger and the Exchange were
completed on March 27, 2025, and the Company exchanged its preferred shares for 3,004,808 newly issued common shares of
CGBD based on the net asset value of $16.64 per common share of CGBD on that date. The preferred shares were cancelled
following the completion of the Exchange. The newly issued common shares of CGBD are subject to a tiered lock-up
agreement with a restriction period that expires in three equal tranches of the common shares over a period of two years.
For the three months ended March 31, 2025 and 2024, the Company recorded dividend income from the BDC Preferred
Shares of $0.8 million and $0.9 million, respectively, which was included in Interest and other income in the condensed
consolidated statements of operations. The Company’s investment in the common shares of CGBD, which was recorded at fair
value using Level I inputs based on the CGBD common share price, was $48.6 million as of March 31, 2025, and was included
in Investments, including accrued performance allocations, in the condensed consolidated balance sheets. The Company’s
investment in the BDC Preferred Shares, which was recorded at fair value using Level III inputs based on the estimated
conversion value, was $53.4 million as of December 31, 2024, and was included in Investments, including accrued performance
allocations, in the condensed consolidated balance sheets.
Other Transactions
Senior Carlyle professionals and employees are permitted to participate in co-investment entities that invest in Carlyle
funds or alongside Carlyle funds. In many cases, participation is limited by law to individuals who qualify under applicable
legal requirements. These co-investment entities generally do not require senior Carlyle professionals and employees to pay
management or performance allocations, however, Carlyle professionals and employees are required to pay their portion of
partnership expenses.
Carried interest income from certain funds can be distributed to senior Carlyle professionals and employees on a current
basis, but is subject to repayment by the subsidiary of the Company that acts as general partner of the fund in the event that
certain specified return thresholds are not ultimately achieved. The senior Carlyle professionals and certain other investment
professionals have personally guaranteed, subject to certain limitations, the obligation of these subsidiaries in respect of this
general partner obligation. Such guarantees are several and not joint and are limited to a particular individual’s distributions
received.
The Company does business with some of its portfolio companies; all such arrangements are on a negotiated basis.
Substantially all revenue is earned from affiliates of Carlyle.