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Investments | 9 Months Ended
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Sep. 30, 2025
Investments [Abstract] |
Investments | 4. Investments In vestments consist of the following:
| As of
| September 30, 2025 |  | December 31, 2024
| (Dollars in millions)
Accrued performance allocations | $6,956.3 |  | $7,053.5
Principal equity method investments, excluding performance allocations | 2,942.5 |  | 3,292.3
Principal investments in CLOs | 380.7 |  | 378.9
Other investments | 235.9 |  | 212.0
Total | $10,515.4 |  | $10,936.7
Accrued Performance Allocations The components of accrued performance allocations are as follows:
| As of
| September 30, 2025 |  | December 31, 2024
| (Dollars in millions)
Global Private Equity | $4,352.3 |  | $4,910.2
Global Credit | 721.1 |  | 527.1
Carlyle AlpInvest | 1,882.9 |  | 1,616.2
Total | $6,956.3 |  | $7,053.5
Approximately 17% and 20% of accrued performance allocations at September 30, 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
| September 30, 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
| September 30, 2025 |  | December 31, 2024
| (Dollars in millions)
Global Private Equity(1) | $1,431.2 |  | $1,818.0
Global Credit(2) | 1,152.1 |  | 1,157.0
Carlyle AlpInvest | 359.2 |  | 317.3
Total | $2,942.5 |  | $3,292.3
(1)The balance includes $642.2 million and $912.0 million as of September 30, 2025 and December 31, 2024, respectively, related to the Company’s equity method investments in NGP. (2)The balance includes $739.5 million and $723.5 million as of September 30, 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. In September 2025, Fortitude declared and paid a $300.0 million dividend, $31.4 million of which was distributed to the Company from Carlyle FRL and recognized as realized principal investment income on the condensed consolidated statements of operations for the three and nine months ended September 30, 2025. As of September 30, 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 $739.5 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 September 30, 2025, Fortitude, its affiliates and certain Fortitude reinsurance counterparties have committed approximately $23.3 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 September 30, 2025 and December 31, 2024 are as follows:
| As of
| September 30, 2025 |  | December 31, 2024
| (Dollars in millions)
Investment in NGP Management | $256.0 |  | $369.2
Investments in NGP general partners - accrued performance allocations | 341.2 |  | 489.4
Principal investments in NGP funds | 45.0 |  | 53.4
Total investments in NGP | $642.2 |  | $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 first quarter of 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 first quarter of 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 and nine months ended September 30, 2025 and 2024 were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (Dollars in millions)
Management fee related revenues from NGP Management | $15.0 |  | $20.8 |  | $46.5 |  | $57.3
Expenses related to the investment in NGP Management | (3.6) |  | (3.5) |  | (10.8) |  | (10.5)
Amortization of basis differences and impairment of investment in NGP Management | (8.7) |  | — |  | (110.0) |  | —
Net investment income from NGP Management | $2.7 |  | $17.3 |  | $(74.3) |  | $46.8
Management fee related revenues from NGP Management were primarily driven by NGP XI, NGP XII, and NGP XIII during the three and nine months ended September 30, 2025 and 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 of $23.8 million and $14.9 million for the three months ended September 30, 2025 and 2024, respectively, and $22.9 million and $33.2 million for the nine months ended September 30, 2025 and 2024, respectively, in its condensed consolidated statements of operations. The nine months ended September 30, 2025 included the $38.0 million reduction related to the Restructuring. 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 $3.3 million and $2.5 million for the three months ended September 30, 2025 and 2024, respectively, and $8.8 million and $5.2 million for the nine months ended September 30, 2025 and 2024, respectively. Principal Investments in CLOs and Other Investments Principal investments in CLOs as of September 30, 2025 and December 31, 2024 were $380.7 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 September 30, 2025 other investments include the Company’s investment in common shares of CGBD at fair value of $37.6 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 September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (Dollars in millions)
Performance allocations |  |  |  |  |  |  |
Realized | $49.4 |  | $266.4 |  | $499.0 |  | $804.0
Unrealized | (656.1) |  | 1,519.1 |  | (244.0) |  | 1,022.7
| (606.7) |  | 1,785.5 |  | 255.0 |  | 1,826.7
Principal investment income (loss) from equity method investments (excluding performance allocations) |  |  |  |  |  |  |
Realized | 59.6 |  | 38.1 |  | 208.5 |  | 135.5
Unrealized | 8.4 |  | 65.4 |  | (147.8) |  | 71.6
| 68.0 |  | 103.5 |  | 60.7 |  | 207.1
Principal investment income (loss) from investments in CLOs and other investments |  |  |  |  |  |  |
Realized | 1.1 |  | (4.7) |  | 0.7 |  | 4.5
Unrealized(1) | 18.6 |  | (52.8) |  | 18.4 |  | (4.4)
| 19.7 |  | (57.5) |  | 19.1 |  | 0.1
Total | $(519.0) |  | $1,831.5 |  | $334.8 |  | $2,033.9
(1)The three and nine months ended September 30, 2024 each included the reversal of $48.5 million of previously recorded unrealized investment income on the BDC Preferred Shares (see Note 9, Related Party Transactions for more information). The nine months ended September 30, 2024 included investment gain of $5.3 million 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:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (Dollars in millions)
Global Private Equity | $(781.4) |  | $1,625.8 |  | $(219.5) |  | $1,447.3
Global Credit | 93.3 |  | 58.7 |  | 223.1 |  | 170.0
Carlyle AlpInvest | 81.4 |  | 101.0 |  | 251.4 |  | 209.4
Total | $(606.7) |  | $1,785.5 |  | $255.0 |  | $1,826.7
The following tables summarize the funds that are the primary drivers of performance allocations for the three and nine months ended September 30, 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 September 30, 2025 |  | Nine Months Ended September 30, 2025
(Dollars in millions) |  | (Dollars in millions)
Global Private Equity | Carlyle Asia Partners V, L.P. | $(257.2) |  | Global Private Equity | Carlyle Partners VII, L.P. | $(110.2)
Global Private Equity | Carlyle Partners VII, L.P. | (557.9) |  | Global Private Equity | Carlyle Asia Partners V, L.P. | (197.4)
Three Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2024
(Dollars in millions) |  | (Dollars in millions)
Global Private Equity | Carlyle Partners VII, L.P. | $1,228.8 |  | Global Private Equity | Carlyle Partners VII, L.P. | $1,258.9
Carlyle’s income (loss) from its principal equity method investments consists of:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (Dollars in millions)
Global Private Equity | $39.4 |  | $58.0 |  | $(13.0) |  | $124.1
Global Credit | 12.8 |  | 30.5 |  | 31.5 |  | 61.5
Carlyle AlpInvest | 15.8 |  | 15.0 |  | 42.2 |  | 21.5
Total | $68.0 |  | $103.5 |  | $60.7 |  | $207.1
Principal investment income for Global Private Equity for the nine months ended September 30, 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 and nine months ended September 30, 2024 included the Company’s equity income allocation from NGP performance allocations of $14.9 million and $33.2 million, respectively. 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 nine months ended September 30, 2025, the Company became the primary beneficiary of four additional CLOs. Investments in Consolidated Funds as of September 30, 2025 and December 31, 2024 also included $845.3 million and $441.9 million, respectively, 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 September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (Dollars in millions)
Interest income from investments | $146.9 |  | $158.0 |  | $412.4 |  | $449.9
Other income | 16.5 |  | 22.1 |  | 47.4 |  | 60.7
Total | $163.4 |  | $180.1 |  | $459.8 |  | $510.6
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 September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (Dollars in millions)
Gains (losses) from investments of Consolidated Funds | $88.5 |  | $(24.9) |  | $100.1 |  | $58.1
Gains (losses) from liabilities of CLOs | 34.7 |  | 27.4 |  | 76.0 |  | (67.7)
Total | $123.2 |  | $2.5 |  | $176.1 |  | $(9.6)
The following table presents realized and unrealized gains (losses) earned from investments of the Consolidated Funds:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (Dollars in millions)
Realized gains (losses) | $58.5 |  | $(4.5) |  | $33.6 |  | $(49.1)
Net change in unrealized gains (losses) | 30.0 |  | (20.4) |  | 66.5 |  | 107.2
Total | $88.5 |  | $(24.9) |  | $100.1 |  | $58.1

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