Investments (Tables)

12 Months Ended

Dec. 31, 2012

Investments

Investments consist of the following:

	As of December 31,
	2012		2011
	(Dollars in millions)
Equity method investments, excluding accrued performance fees	$	855.1	$	419.9
Trading securities and other investments		26.1		35.0
Total investments	$	881.2	$	454.9

Equity Method Investments

The Partnership’s equity method investments include its fund investments in Corporate Private Equity, Global Market Strategies and Real Assets, typically as general partner interests, and its investment in NGP Management (included within Real Assets), which are not consolidated but in which the Partnership exerts significant influence. Investments are related to the following segments:

	As of December 31,
	2012		2011
	(Dollars in millions)
Corporate Private Equity	$	251.6	$	238.5
Global Market Strategies		18.0		11.9
Real Assets		585.5		169.5
Total	$	855.1	$	419.9

Partnership Equity Method Investees, Summarized Statement of Income Information

The summarized financial information of the Partnership’s equity method investees from the date of initial investment is as follows (Dollars in millions):

	Corporate Private Equity							Global Market Strategies						Real Assets							Aggregate Totals
	For the Year Ended December 31,							For the Year Ended December 31,						For the Year Ended December 31,							For the Year Ended December 31,
	2012		2011			2010		2012		2011		2010		2012		2011		2010			2012		2011		2010
Statement of income information
Investment income	$	733.3	$	496.7		$	733.2	$	150.9	$	127.5	$	266.3	$	517.1	$	436.2	$	354.7		$	1,401.3	$	1,060.4	$	1,354.2
Expenses		526.0		497.7			582.8		65.3		37.5		42.3		381.5		402.9		435.2			972.8		938.1		1,060.3
Net investment income (loss)		207.3		(1.0	)		150.4		85.6		90.0		224.0		135.6		33.3		(80.5	)		428.5		122.3		293.9
Net realized and unrealized gain		5,401.9		4,320.7			9,911.3		297.1		79.3		529.1		1,358.0		2,231.7		2,364.2			7,057.0		6,631.7		12,804.6
Net income	$	5,609.2	$	4,319.7		$	10,061.7	$	382.7	$	169.3	$	753.1	$	1,493.6	$	2,265.0	$	2,283.7		$	7,485.5	$	6,754.0	$	13,098.5

Partnership Equity Method Investees, Summarized Balance Sheet Information

	Corporate Private Equity				Global Market  Strategies				Real Assets				Aggregate Totals
	As of December 31,				As of December 31,				As of December 31,				As of December 31,
	2012		2011		2012		2011		2012		2011		2012		2011
Balance sheet information
Investments	$	34,959.5	$	36,517.6	$	1,739.7	$	1,936.2	$	27,915.9	$	20,952.4	$	64,615.1	$	59,406.2
Total assets	$	35,937.1	$	37,729.7	$	2,074.7	$	2,224.3	$	28,709.6	$	21,860.3	$	66,721.4	$	61,814.3
Debt	$	11.8	$	79.9	$	59.4	$	64.0	$	1,438.3	$	1,978.1	$	1,509.5	$	2,122.0
Other liabilities	$	261.9	$	278.7	$	15.8	$	116.0	$	251.2	$	260.9	$	528.9	$	655.6
Total liabilities	$	273.7	$	358.6	$	75.2	$	180.0	$	1,689.5	$	2,239.0	$	2,038.4	$	2,777.6
Partners’ capital	$	35,663.4	$	37,371.1	$	1,999.5	$	2,044.3	$	27,020.1	$	19,621.3	$	64,683.0	$	59,036.7

Components of Investment Income

The components of investment income are as follows:

	Year Ended December 31,
	2012			2011			2010
	(Dollars in millions)
Income from equity investments	$	32.7		$	70.5		$	66.3
Income from trading securities		5.7			8.4			2.6
Other investment income (loss)		(2.0	)		(0.5	)		3.7
Total	$	36.4		$	78.4		$	72.6

Carlyle's Income from Equity-Method Investments

Carlyle’s income from its equity-method investments is included in investment income in the consolidated statements of operations and consists of:

	Year Ended December 31,
	2012			2011		2010
	(Dollars in millions)
Corporate Private Equity	$	35.7		$	57.3	$	49.0
Global Market Strategies		1.2			0.9		9.3
Real Assets		(4.2	)		12.3		8.0
Total	$	32.7		$	70.5	$	66.3

Investments Held by Consolidated Funds

The table below presents investments as a percentage of investments of Consolidated Funds:

	Fair Value				Percentage of Investments of Consolidated Funds
Geographic Region/Instrument Type/ Industry Description or Investment Strategy	December 31,				December 31,
	2012		2011		2012			2011
	(Dollars in millions)
United States
Equity securities:
Accommodation and Food Services	$	20.2	$	106.1		0.08	%		0.54	%
Administrative Support, Waste Management, Remediation Services		255.9		3.7		1.03	%		0.02	%
Aerospace and defense		—		53.2		—			0.27	%
Finance and Insurance		75.9		44.3		0.31	%		0.23	%
Health Care and Social Assistance		42.1		31.8		0.17	%		0.16	%
Information		76.5		48.0		0.31	%		0.25	%
Manufacturing		340.4		412.7		1.37	%		2.12	%
Professional, Scientific, Technical Services		610.9		500.0		2.46	%		2.56	%
Retail Trade		127.7		147.1		0.51	%		0.75	%
Wholesale Trade		116.6		17.9		0.47	%		0.09	%
Other		59.8		117.5		0.24	%		0.60	%
Total equity securities (cost of $1,901.6 and $2,160.6 at December 31, 2012 and 2011, respectively)		1,726.0		1,482.3		6.95	%		7.59	%
Partnership and LLC interests:
Fund investments (cost of $2,572.5 and $2,593.5 at December 31, 2012 and 2011, respectively)		2,925.4		2,701.0		11.79	%		13.85	%
Loans:
Administrative Support, Waste Management, Remediation Services		31.0		60.6		0.12	%		0.31	%
Finance and Insurance		44.2		—		0.18	%		—
Manufacturing		21.2		65.0		0.09	%		0.33	%
Professional, Scientific, Technical Services		107.7		81.1		0.43	%		0.42	%
Wholesale Trade		72.0		48.2		0.29	%		0.25	%
Other		59.3		81.7		0.24	%		0.42	%
Total loans (cost of $390.0 and $361.4 at December 31, 2012 and 2011, respectively)		335.4		336.6		1.35	%		1.73	%
Total investment in Hedge Funds		2,888.7		1,929.1		11.65	%		9.89	%
Assets of the CLOs
Bonds		290.8		247.7		1.17	%		1.27	%
Equity		35.0		25.3		0.14	%		0.13	%
Loans		8,408.7		6,911.6		33.88	%		35.43	%
Other		—		0.1		—			0.00	%
Total assets of the CLOs (cost of $8,720.7 and $7,446.8 at December 31, 2012 and 2011, respectively)		8,734.5		7,184.7		35.19	%		36.83	%
Total United States	$	16,610.0	$	13,633.7		66.93	%		69.89	%

	Fair Value				Percentage of Investments  of Consolidated Funds
Geographic Region/Instrument Type/ Industry Description or Investment Strategy	December 31,				December 31,
	2012		2011		2012			2011
	(Dollars in millions)
Canada
Equity securities:
Manufacturing	$	2.1	$	2.9		0.01	%		0.01	%
Transportation and Warehousing		—		2.9		—			0.02	%
Total equity securities (cost of $6.1 at December 31, 2011)		2.1		5.8		0.01	%		0.03	%
Partnership and LLC interests:
Fund Investments (cost of $103.0 and $112.0 at December 31, 2012 and 2011, respectively)		34.4		45.0		0.14	%		0.23	%
Loans:
Transportation and Warehousing (cost of $0.6 and $9.5 at December 31, 2012 and 2011, respectively)		—		8.0		—			0.04	%
Assets of the CLOs
Bonds		3.5		15.8		0.01	%		0.08	%
Loans		204.9		228.5		0.83	%		1.17	%
Total assets of the CLOs (cost of $206.3 and $247.1 at Decmeber 31, 2012 and 2011, respectively)		208.4		244.3		0.84	%		1.25	%
Total Canada	$	244.9	$	303.1		0.99	%		1.55	%
Europe
Equity securities:
Administrative Support, Waste Management, Remediation Services	$	104.2	$	104.4		0.42	%		0.53	%
Health Care and Social Assistance		85.7		13.2		0.35	%		0.07	%
Information		98.6		88.1		0.40	%		0.45	%
Manufacturing		474.9		389.2		1.91	%		2.00	%
Retail Trade		233.9		95.4		0.94	%		0.49	%
Wholesale Trade		109.3		62.8		0.44	%		0.32	%
Other		305.2		93.7		1.23	%		0.48	%
Total equity securities (cost of $1,617.8 and $1,249.3 at December 31, 2012 and 2011, respectively)		1,411.8		846.8		5.69	%		4.34	%
Partnership and LLC interests:
Fund investments (cost of $952.0 and $1,052.6 at December 31, 2012 and 2011, respectively)		898.2		976.9		3.62	%		5.01	%

	Fair Value				Percentage of Investments  of Consolidated Funds
Geographic Region/Instrument Type/ Industry	December 31,				December 31,
Description or Investment Strategy	2012		2011		2012			2011
	(Dollars in millions)
Europe
Loans:
Manufacturing		1.8		158.2		0.01	%		0.81	%
Other		—		135.1		—			0.69	%
Total loans (cost of $413.3 at December 31, 2011)		1.8		293.3		0.01	%		1.50	%
Assets of the CLOs
Bonds		628.7		288.6		2.53	%		1.48	%
Equity		0.3		12.5		0.00	%		0.06	%
Loans		4,227.5		2,577.2		17.04	%		13.21	%
Other		7.3		20.7		0.03	%		0.11	%
Total assets of the CLOs (cost of $5,397.4 and $3,345.2 at December 31, 2012 and 2011, respectively)		4,863.8		2,899.0		19.60	%		14.86	%
Total Europe	$	7,175.6	$	5,016.0		28.92	%		25.71	%
Australia
Assets of the CLOs
Bonds	$	11.2	$	4.9		0.05	%		0.03	%
Loans		65.1		—		0.26	%		—
Total assets of the CLOs (cost of $75.7 and $5.0 at December 31, 2012 and 2011, respectively)		76.3		4.9		0.31	%		0.03	%
Total Australia	$	76.3	$	4.9		0.31	%		0.03	%
Global
Equity securities:
Manufacturing (cost of $89.0 and $85.3 at December 31, 2012 and 2011, respectively)		204.7		73.9		0.82	%		0.38	%
Assets of the CLOs
Loans (cost of $46.6 at December 31, 2012)		46.7		—		0.19	%		—
Partnership and LLC interests:
Fund investments (cost of $412.8 and $427.2 at December 31, 2012 and 2011, respectively)		457.5		475.7		1.84	%		2.44	%
Total Global	$	708.9	$	549.6		2.85	%		2.82	%
Total investments of Consolidated Funds (cost of $22,486.0 and $19,514.9 at December 31, 2012 and 2011, respectively)	$	24,815.7	$	19,507.3		100.00	%		100.00	%

Interest and Other Income of Consolidated Funds

The components of interest and other income of Consolidated Funds are as follows:

	Year Ended December 31,
	2012		2011		2010
	(Dollars in millions)
Interest income from investments	$	772.8	$	605.7	$	435.5
Other income		130.7		108.3		17.1
Total	$	903.5	$	714.0	$	452.6

Net Investment Gains Losses of Consolidated Funds

The components of net investment gains (losses) of Consolidated Funds are as follows:

	Year Ended December 31,
	2012			2011			2010
	(Dollars in millions)
Gains (losses) from investments of Consolidated Funds	$	2,680.6		$	(260.8	)	$	502.0
Losses from liabilities of CLOs		(927.8	)		(64.2	)		(752.4	)
Gains on other assets of CLOs		5.2			1.7			5.0
Total	$	1,758.0		$	(323.3	)	$	(245.4	)

Realized and Unrealized Gains (Losses) Earned from Investments of Consolidated Funds

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

	Year Ended December 31,
	2012		2011			2010
	(Dollars in millions)
Realized gains	$	829.5	$	658.8		$	74.1
Net change in unrealized gains (losses)		1,851.1		(919.6	)		427.9
Total	$	2,680.6	$	(260.8	)	$	502.0