Segment Reporting

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

16. 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

loans and structured credit, direct lending, opportunistic credit, distressed credit, aircraft financing and servicing,

infrastructure debt, insurance solutions, asset-backed lending, 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 management in making resource deployment and compensation decisions and in

assessing performance of the Company’s three reportable segments. Management also uses DE in budgeting, forecasting, and

the overall management of the Company’s segments. Management believes that reporting DE is helpful to understanding the

Company’s business and that investors should review the same supplemental financial measure that management 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.

 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 of 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. Charges

(credits) related to Carlyle corporate actions and non-recurring items include: 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, and certain general, administrative and other expenses when the timing of any future payment is uncertain.

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

approximately 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.

The following tables present the financial data for the Company’s three reportable segments as of and 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	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
Segment assets as of December 31, 2023	$8,442.5	$3,282.8	$2,172.8	$13,898.1

The following tables present the financial data for the Company’s three reportable segments as of and 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	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
Segment assets as of December 31, 2022	$9,790.8	$3,141.6	$1,860.4	$14,792.8

The following tables present the financial data for the Company’s three reportable segments for the year ended

December 31, 2021:

	Year Ended December 31, 2021
	Global Private Equity(1)	Global Credit	Global Investment Solutions(2)	Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$1,111.8	$314.4	$228.4	$1,654.6
Portfolio advisory and transaction fees, net and other	34.3	62.2	0.5	97.0
Fee related performance revenues	—	43.2	—	43.2
Total fund level fee revenues	1,146.1	419.8	228.9	1,794.8
Realized performance revenues	2,757.8	(6.0)	186.8	2,938.6
Realized principal investment income	167.8	31.9	9.8	209.5
Interest income	1.4	5.6	0.2	7.2
Total revenues	4,073.1	451.3	425.7	4,950.1
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits	546.2	237.1	108.2	891.5
Realized performance revenues related compensation	1,243.6	(2.7)	168.1	1,409.0
Total compensation and benefits	1,789.8	234.4	276.3	2,300.5
General, administrative, and other indirect expenses	172.5	63.1	32.0	267.6
Depreciation and amortization expense	25.1	8.0	4.5	37.6
Interest expense	63.8	26.1	10.8	100.7
Total expenses	2,051.2	331.6	323.6	2,706.4
Distributable Earnings	$2,021.9	$119.7	$102.1	$2,243.7
(-) Realized net performance revenues	1,514.2	(3.3)	18.7	1,529.6
(-) Realized principal investment income	167.8	31.9	9.8	209.5
(+) Net interest	62.4	20.5	10.6	93.5
(=) Fee Related Earnings	$402.3	$111.6	$84.2	$598.1

(1)  On August 31, 2021, the Company sold 100% of its interest in its local Brazilian management entity and entered into a sub-advisory agreement with the

acquiring company, which will provide advisory services with respect to Carlyle’s Brazilian portfolio. The Company recorded a loss on the sale and related

transaction costs of $4.7 million, which is included in other non-operating expenses (income) on the consolidated statements of operations, as well as a

foreign currency translation loss of $14.7 million related to amounts previously recorded in accumulated other comprehensive income, which is primarily

included in general, administrative and other expenses on the consolidated statements of operations. These amounts are excluded from the Company’s

segment reporting.

(2)  On April 1, 2021, the Company sold 100% of its interest in Metropolitan Real Estate (“MRE”) and recorded a $5 million gain on the sale, which is

included in other non-operating expenses (income) on the consolidated statements of operations. This amount is excluded from the Company’s segment

reporting. The Company retained its existing investments in and commitments to the MRE funds, as well as its interest in the net accrued performance

allocations in existing funds.

The following tables reconcile the Total Segments to the Company’s Income (Loss) Before Provision for Taxes as of

and for the years ended December 31, 2023 and 2022:

	December 31, 2023 and the Year then Ended
	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	$—	$6.9	$—	(c)	$6.9
Distributable earnings	$1,430.5	$116.7	$(2,148.1)	(d)	$(600.9)
Total assets	$13,898.1	$7,805.5	$(527.6)	(e)	$21,176.0

	December 31, 2022 and the Year then Ended
	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 loss	$—	$(41.5)	$—	(c)	$(41.5)
Distributable earnings	$1,909.0	$14.2	$(350.7)	(d)	$1,572.5
Total assets	$14,792.8	$7,213.3	$(603.1)	(e)	$21,403.0

The following table reconciles the Total Segments to the Company’s Income Before Provision for Taxes for the year

ended December 31, 2021:

	December 31, 2021 and the Year then Ended
	Total Reportable Segments	Consolidated Funds	Reconciling Items		Carlyle Consolidated
	(Dollars in millions)
Revenues	$4,950.1	$253.2	$3,578.8	(a)	$8,782.1
Expenses	$2,706.4	$217.8	$1,832.9	(b)	$4,757.1
Other income	$—	$2.5	$—	(c)	$2.5
Distributable earnings	$2,243.7	$37.9	$1,745.9	(d)	$4,027.5
Total assets	$14,498.2	$6,948.0	$(195.8)	(e)	$21,250.4

(a)The Revenues adjustment principally represents unrealized performance revenues, unrealized principal investment

income (loss) (including Fortitude), the principal investment loss from dilution of the indirect investment in 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,
	2023	2022	2021
	(Dollars in millions)
Unrealized performance and fee related performance revenues	$(1,046.6)	$(142.5)	$3,155.6
Unrealized principal investment income	36.1	(38.3)	351.8
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	(13.8)	(12.9)	(13.7)
Tax expense associated with certain foreign performance revenues	—	0.1	0.2
Non-controlling interests and other adjustments to present certain costs on a net basis	191.6	119.0	159.6
Elimination of revenues of Consolidated Funds	(74.6)	(22.2)	(74.7)
	$(1,011.3)	$(273.7)	$3,578.8

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, 2023, 2022 and 2021:

	Year Ended December 31,
	2023	2022	2021
	(Dollars in millions)
Total Reportable Segments - Fund level fee revenues	$2,305.8	$2,237.3	$1,794.8
Adjustments(1)	(262.6)	(207.2)	(127.3)
Carlyle Consolidated - Fund management fees	$2,043.2	$2,030.1	$1,667.5

(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,
	2023	2022	2021
	(Dollars in millions)
Unrealized performance and fee related performance revenue compensation expense	$612.6	$(326.2)	$1,549.4
Equity-based compensation	260.1	161.9	172.9
Acquisition or disposition-related charges and amortization of intangibles and impairment	145.3	187.4	37.7
Tax (expense) benefit associated with certain foreign performance revenues related compensation	(1.0)	2.9	(17.3)
Non-controlling interests and other adjustments to present certain costs on a net basis	148.7	82.7	78.5
Debt extinguishment costs	—	—	10.2
Right-of-use asset impairment	—	—	26.8
Other adjustments	11.6	12.4	14.2
Elimination of expenses of Consolidated Funds	(40.5)	(44.1)	(39.5)
	$1,136.8	$77.0	$1,832.9

(c)The Other Income (Loss) adjustment results from the Consolidated Funds which 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,
	2023	2022	2021
	(Dollars in millions)
Income before provision for income taxes	$(600.9)	$1,572.5	$4,027.5
Adjustments:
Net unrealized performance and fee related performance revenues	1,659.2	(183.7)	(1,606.2)
Unrealized principal investment (income) loss	(36.1)	38.3	(351.8)
Principal investment loss from dilution of indirect investment in Fortitude	104.0	176.9	—
Equity-based compensation(1)	260.1	161.9	172.9
Acquisition or disposition-related charges, including amortization of intangibles and impairment	145.3	187.4	37.7
Net income attributable to non-controlling interests in consolidated entities	(111.7)	(59.7)	(70.5)
Tax (expense) benefit associated with certain foreign performance revenues	(1.0)	3.0	(17.1)
Debt extinguishment costs	—	—	10.2
Right-of-use impairment	—	—	26.8
Other adjustments	11.6	12.4	14.2
Distributable Earnings	$1,430.5	$1,909.0	$2,243.7
Realized performance revenues, net of related compensation(2)	531.0	998.5	1,529.6
Realized principal investment income(2)	88.8	150.6	209.5
Net interest	48.7	74.5	93.5
Fee Related Earnings	$859.4	$834.4	$598.1

(1)  Equity-based compensation for the years ended December 31, 2023, 2022 and 2021 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)See reconciliation to most directly comparable U.S. GAAP measure below:

	Year Ended December 31, 2023
	Carlyle Consolidated	Adjustments(3)	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(3)	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

	Year Ended December 31, 2021
	Carlyle Consolidated	Adjustments(3)	Total Reportable Segments
	(Dollars in millions)
Performance revenues	$6,084.6	$(3,146.0)	$2,938.6
Performance revenues related compensation expense	2,961.0	(1,552.0)	1,409.0
Net performance revenues	$3,123.6	$(1,594.0)	$1,529.6
Principal investment income (loss)	$637.3	$(427.8)	$209.5

(3)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.

(e)The Total Assets adjustment represents the addition of the assets of the Consolidated Funds that were eliminated in

consolidation to arrive at the Company’s total assets.

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, 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%

	Total Revenues		Total Assets
	Share	%	Share	%
	(Dollars in millions)
Year Ended December 31, 2021
Americas(1)	$5,434.6	62%	$10,874.2	51%
EMEA(2)	2,629.3	30%	8,920.4	42%
Asia-Pacific(3)	718.2	8%	1,455.8	7%
Total	$8,782.1	100%	$21,250.4	100%

(1)Relates to investment vehicles whose primary focus is the United States, Mexico 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 and Australia.