Segment Reporting

Carlyle conducts its operations through four reportable segments:

Corporate Private Equity – The Corporate Private Equity segment is comprised of the Partnership’s operations that advise a diverse group of funds that invest in buyout and growth capital transactions that focus on either a particular geography or a particular industry.

Global Market Strategies – The Global Market Strategies segment advises a group of funds that pursue investment opportunities across various types of credit, equities and alternative instruments, and (as regards certain macroeconomic strategies) currencies, commodities, sovereign debt, and interest rate products and their derivatives.

Real Assets – The Real Assets segment is comprised of the Partnership’s operations that advise U.S. and international funds focused on real estate, infrastructure, energy and renewable energy transactions.

Investment Solutions – The Investment Solutions segment advises a global private equity fund of funds program and related co-investment and secondary activities through AlpInvest. This segment also includes Metropolitan, a global manager of real estate fund of funds, and DGAM, the Partnership’s fund of hedge funds and liquid alternatives platform.

The Partnership’s reportable business segments are differentiated by their various investment focuses and strategies. Overhead costs are allocated based on direct base compensation expense for each segment. The Partnership includes adjustments to reflect the Partnership’s economic interests in Claren Road, ESG and Carlyle Commodity Management. Effective July 1, 2015, the Partnership's economic interest in Carlyle Commodity Management increased from 55% to approximately 83% as a result of the June 2015 restructuring of the original acquisition agreement. The Partnership’s earnings from its investment in NGP Management are presented in the respective operating captions within the Real Assets segment. The net income or loss from the consolidation of Urbplan allocable to the Partnership (after consideration of amounts allocable to non-controlling interests) is presented within investment income in the Real Assets segment.

Economic Net Income (“ENI”) and its components are key performance measures used by management to make operating decisions and assess the performance of the Partnership’s reportable segments. ENI 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 performance fee compensation, and does not include net income (loss) attributable to non-Carlyle interests in Consolidated Funds 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 associated with equity-based compensation that was issued in the initial public offering in May 2012 or is issued in acquisitions or strategic investments, amortization and any impairment charges associated with acquired intangible assets, transaction costs associated with acquisitions, charges associated with earnouts and contingent consideration including gains and losses associated with the mark to market on contingent consideration issued in conjunction with acquisitions or strategic investments, gains and losses from the retirement of debt, charges associated with lease terminations and employee severance and settlements of legal claims.

Distributable earnings (“DE”) is a component of ENI and is used to assess performance and amounts potentially available for distribution. Distributable earnings differs from income (loss) before provision for income taxes computed in accordance with U.S. GAAP in that it adjusts for the items included in the calculation of ENI and also adjusts ENI for unrealized performance fees, unrealized investment income, the corresponding unrealized performance fee compensation expense and equity-based compensation.

Fee-related earnings (“FRE”) is a component of DE and is used to assess the ability of the business to cover direct base compensation and operating expenses from total fee revenues. FRE differs from income (loss) before provision for income taxes computed in accordance with U.S. GAAP in that it adjusts for the items included in the calculation of DE and also adjusts DE to exclude realized performance fees, realized investment income from investments in Carlyle funds, and realized performance fee related compensation.

ENI and its components are used by management primarily in making resource deployment and compensation decisions across the Partnership’s four reportable segments. Management makes operating decisions and assesses the performance of each of the Partnership’s business segments based on financial and operating metrics and data that is presented without the consolidation of any of the Consolidated Funds. Consequently, ENI and all segment data exclude the assets, liabilities and operating results related to the Consolidated Funds.

The following table presents the financial data for the Partnership’s four reportable segments for the three months ended September 30, 2015 and as of and for the nine months ended September 30, 2015:



	Three Months Ended September 30, 2015
	Corporate Private Equity			Global Market Strategies			Real Assets			Investment Solutions		Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$	152.5		$	52.3		$	69.3		$	37.8	$	311.9
Portfolio advisory fees, net	2.8			0.1			0.1			—		3.0
Transaction fees, net	0.9			—			0.1			—		1.0
Total fund level fee revenues	156.2			52.4			69.5			37.8		315.9
Performance fees
Realized	258.6			11.8			57.7			5.0		333.1
Unrealized	(513.9		)	(62.4		)	(9.3		)	31.4		(554.2		)
Total performance fees	(255.3		)	(50.6		)	48.4			36.4		(221.1		)
Investment income (loss)
Realized	11.0			3.1			(4.9		)	—		9.2
Unrealized	(12.7		)	(5.0		)	2.1			0.1		(15.5		)
Total investment income (loss)	(1.7		)	(1.9		)	(2.8		)	0.1		(6.3		)
Interest and other income	3.1			0.7			0.9			0.3		5.0
Total revenues	(97.7		)	0.6			116.0			74.6		93.5
Segment Expenses
Compensation and benefits
Direct base compensation	59.1			22.4			20.4			19.8		121.7
Indirect base compensation	23.3			6.9			9.7			2.9		42.8
Equity-based compensation	17.0			5.0			6.2			2.6		30.8
Performance fee related
Realized	120.6			5.4			25.5			4.4		155.9
Unrealized	(235.0		)	(28.6		)	7.2			28.0		(228.4		)
Total compensation and benefits	(15.0		)	11.1			69.0			57.7		122.8
General, administrative, and other indirect expenses	36.4			14.0			17.0			10.7		78.1
Depreciation and amortization expense	3.3			1.3			1.2			0.8		6.6
Interest expense	7.8			2.6			2.6			1.4		14.4
Total expenses	32.5			29.0			89.8			70.6		221.9
Economic Net Income (Loss)	$	(130.2	)	$	(28.4	)	$	26.2		$	4.0	$	(128.4	)
(-) Net Performance Fees	(140.9		)	(27.4		)	15.7			4.0		(148.6		)
(-) Investment Income (Loss)	(1.7		)	(1.9		)	(2.8		)	0.1		(6.3		)
(+) Equity-based Compensation	17.0			5.0			6.2			2.6		30.8
(=) Fee Related Earnings	$	29.4		$	5.9		$	19.5		$	2.5	$	57.3
(+) Realized Net Performance Fees	138.0			6.4			32.2			0.6		177.2
(+) Realized Investment Income (Loss)	11.0			3.1			(4.9		)	—		9.2
(=) Distributable Earnings	$	178.4		$	15.4		$	46.8		$	3.1	$	243.7



	September 30, 2015 and the Nine Months Then Ended
	Corporate Private Equity			Global Market Strategies			Real Assets			Investment Solutions		Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$	443.5		$	162.6		$	197.1		$	116.1	$	919.3
Portfolio advisory fees, net	11.3			0.6			0.4			—		12.3
Transaction fees, net	3.7			—			0.4			—		4.1
Total fund level fee revenues	458.5			163.2			197.9			116.1		935.7
Performance fees
Realized	1,101.1			25.0			112.5			13.2		1,251.8
Unrealized	(583.0		)	(40.1		)	(38.3		)	122.1		(539.3		)
Total performance fees	518.1			(15.1		)	74.2			135.3		712.5
Investment income (loss)
Realized	22.0			5.9			(94.7		)	0.1		(66.7		)
Unrealized	(4.6		)	(10.7		)	58.4			0.3		43.4
Total investment income (loss)	17.4			(4.8		)	(36.3		)	0.4		(23.3		)
Interest and other income	9.0			3.9			2.6			1.1		16.6
Total revenues	1,003.0			147.2			238.4			252.9		1,641.5
Segment Expenses
Compensation and benefits
Direct base compensation	169.3			75.3			56.4			60.6		361.6
Indirect base compensation	71.1			22.1			30.8			9.8		133.8
Equity-based compensation	49.6			14.5			19.6			7.3		91.0
Performance fee related
Realized	494.8			11.8			46.0			10.9		563.5
Unrealized	(256.8		)	(18.6		)	28.4			113.6		(133.4		)
Total compensation and benefits	528.0			105.1			181.2			202.2		1,016.5
General, administrative, and other indirect expenses	105.9			49.1			52.4			31.4		238.8
Depreciation and amortization expense	9.0			3.7			3.1			3.0		18.8
Interest expense	23.1			8.1			7.9			4.4		43.5
Total expenses	666.0			166.0			244.6			241.0		1,317.6
Economic Net Income (Loss)	$	337.0		$	(18.8	)	$	(6.2	)	$	11.9	$	323.9
(-) Net Performance Fees	280.1			(8.3		)	(0.2		)	10.8		282.4
(-) Investment Income (Loss)	17.4			(4.8		)	(36.3		)	0.4		(23.3		)
(+) Equity-based Compensation	49.6			14.5			19.6			7.3		91.0
(=) Fee Related Earnings	$	89.1		$	8.8		$	49.9		$	8.0	$	155.8
(+) Realized Net Performance Fees	606.3			13.2			66.5			2.3		688.3
(+) Realized Investment Income (Loss)	22.0			5.9			(94.7		)	0.1		(66.7		)
(=) Distributable Earnings	$	717.4		$	27.9		$	21.7		$	10.4	$	777.4
Segment assets as of September 30, 2015	$	3,425.3		$	714.3		$	1,698.4		$	888.8	$	6,726.8

The following table presents the financial data for the Partnership’s four reportable segments for the three and nine months ended September 30, 2014:



	Three Months Ended September 30, 2014
	Corporate Private Equity		Global Market Strategies			Real Assets			Investment Solutions			Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$	151.5	$	65.6		$	55.7		$	46.0		$	318.8
Portfolio advisory fees, net	3.8		0.2			0.1			—			4.1
Transaction fees, net	17.0		0.2			0.6			—			17.8
Total fund level fee revenues	172.3		66.0			56.4			46.0			340.7
Performance fees
Realized	125.0		11.3			28.4			10.6			175.3
Unrealized	100.8		(10.8		)	9.5			(50.9		)	48.6
Total performance fees	225.8		0.5			37.9			(40.3		)	223.9
Investment income (loss)
Realized	6.4		4.1			(13.2		)	—			(2.7		)
Unrealized	3.8		(4.3		)	6.7			—			6.2
Total investment income (loss)	10.2		(0.2		)	(6.5		)	—			3.5
Interest and other income	4.7		1.9			1.4			0.5			8.5
Total revenues	413.0		68.2			89.2			6.2			576.6
Segment Expenses
Compensation and benefits
Direct base compensation	67.0		29.9			20.7			20.7			138.3
Indirect base compensation	25.9		6.9			9.9			4.3			47.0
Equity-based compensation	12.9		4.0			5.4			1.5			23.8
Performance fee related
Realized	52.7		6.1			9.9			8.8			77.5
Unrealized	49.4		2.6			8.0			(52.8		)	7.2
Total compensation and benefits	207.9		49.5			53.9			(17.5		)	293.8
General, administrative, and other indirect expenses	35.5		14.0			21.1			11.5			82.1
Depreciation and amortization expense	2.7		1.0			0.8			0.9			5.4
Interest expense	7.9		2.5			2.6			1.5			14.5
Total expenses	254.0		67.0			78.4			(3.6		)	395.8
Economic Net Income	$	159.0	$	1.2		$	10.8		$	9.8		$	180.8
(-) Net Performance Fees	123.7		(8.2		)	20.0			3.7			139.2
(-) Investment Income (Loss)	10.2		(0.2		)	(6.5		)	—			3.5
(+) Equity-based Compensation	12.9		4.0			5.4			1.5			23.8
(=) Fee Related Earnings	$	38.0	$	13.6		$	2.7		$	7.6		$	61.9
(+) Realized Net Performance Fees	72.3		5.2			18.5			1.8			97.8
(+) Realized Investment Income (Loss)	6.4		4.1			(13.2		)	—			(2.7		)
(=) Distributable Earnings	$	116.7	$	22.9		$	8.0		$	9.4		$	157.0



	Nine Months Ended September 30, 2014
	Corporate Private Equity		Global Market Strategies			Real Assets			Investment Solutions		Total
	(Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees	$	428.5	$	192.9		$	165.6		$	137.4	$	924.4
Portfolio advisory fees, net	10.6		0.4			0.6			—		11.6
Transaction fees, net	49.6		0.2			0.7			—		50.5
Total fund level fee revenues	488.7		193.5			166.9			137.4		986.5
Performance fees
Realized	747.4		26.3			38.3			23.5		835.5
Unrealized	237.5		84.3			69.9			150.9		542.6
Total performance fees	984.9		110.6			108.2			174.4		1,378.1
Investment income (loss)
Realized	10.3		6.8			(3.0		)	—		14.1
Unrealized	13.2		(1.2		)	(35.5		)	0.3		(23.2		)
Total investment income (loss)	23.5		5.6			(38.5		)	0.3		(9.1		)
Interest and other income	8.7		4.7			3.3			1.0		17.7
Total revenues	1,505.8		314.4			239.9			313.1		2,373.2
Segment Expenses
Compensation and benefits
Direct base compensation	189.4		83.7			60.7			62.4		396.2
Indirect base compensation	73.4		18.9			35.9			12.1		140.3
Equity-based compensation	30.1		9.9			14.0			3.3		57.3
Performance fee related
Realized	326.4		12.4			10.6			16.9		366.3
Unrealized	122.1		39.0			39.2			142.5		342.8
Total compensation and benefits	741.4		163.9			160.4			237.2		1,302.9
General, administrative, and other indirect expenses	108.6		38.6			52.3			31.3		230.8
Depreciation and amortization expense	8.1		2.9			2.6			2.8		16.4
Interest expense	22.6		7.2			7.3			4.1		41.2
Total expenses	880.7		212.6			222.6			275.4		1,591.3
Economic Net Income	$	625.1	$	101.8		$	17.3		$	37.7	$	781.9
(-) Net Performance Fees	536.4		59.2			58.4			15.0		669.0
(-) Investment Income (Loss)	23.5		5.6			(38.5		)	0.3		(9.1		)
(+) Equity-based Compensation	30.1		9.9			14.0			3.3		57.3
(=) Fee Related Earnings	$	95.3	$	46.9		$	11.4		$	25.7	$	179.3
(+) Realized Net Performance Fees	421.0		13.9			27.7			6.6		469.2
(+) Realized Investment Income (Loss)	10.3		6.8			(3.0		)	—		14.1
(=) Distributable Earnings	$	526.6	$	67.6		$	36.1		$	32.3	$	662.6

The following table reconciles the Total Segments to the Partnership’s Income Before Provision for Taxes for the three months ended September 30, 2015 and 2014:



	Three Months Ended September 30, 2015
	Total Reportable Segments			Consolidated Funds			Reconciling Items				Carlyle Consolidated
	(Dollars in millions)
Revenues	$	93.5		$	259.4		$	(55.4	)	(a)	$	297.5
Expenses	$	221.9		$	355.5		$	217.9		(b)	$	795.3
Other income (loss)	$	—		$	(20.6	)	$	(10.7	)	(c)	$	(31.3	)
Economic net income (loss)	$	(128.4	)	$	(116.7	)	$	(284.0	)	(d)	$	(529.1	)



	Three Months Ended September 30, 2014
	Total Reportable Segments		Consolidated Funds		Reconciling Items				Carlyle Consolidated
	(Dollars in millions)
Revenues	$	576.6	$	234.1	$	(55.7	)	(a)	$	755.0
Expenses	$	395.8	$	283.9	$	25.4		(b)	$	705.1
Other income	$	—	$	127.4	$	(1.9	)	(c)	$	125.5
Economic net income	$	180.8	$	77.6	$	(83.0	)	(d)	$	175.4

The following table reconciles the Total Segments to the Partnership’s Income Before Provision for Taxes for the nine months ended September 30, 2015 and 2014, and Total Assets as of September 30, 2015:



	September 30, 2015 and the Nine Months Then Ended
	Total Reportable Segments		Consolidated Funds		Reconciling Items				Carlyle Consolidated
	Total Reportable Segments		Consolidated Funds		Reconciling Items				Carlyle Consolidated
	(Dollars in millions)
Revenues	$	1,641.5	$	742.7	$	(93.8	)	(a)	$	2,290.4
Expenses	$	1,317.6	$	959.5	$	388.8		(b)	$	2,665.9
Other income	$	—	$	950.3	$	(14.5	)	(c)	$	935.8
Economic net income	$	323.9	$	733.5	$	(497.1	)	(d)	$	560.3
Total assets	$	6,726.8	$	26,304.5	$	(234.6	)	(e)	$	32,796.7



	Nine Months Ended September 30, 2014
	Total Reportable Segments		Consolidated Funds		Reconciling Items				Carlyle Consolidated
	Total Reportable Segments		Consolidated Funds		Reconciling Items				Carlyle Consolidated
	(Dollars in millions)
Revenues	$	2,373.2	$	728.5	$	(60.5	)	(a)	$	3,041.2
Expenses	$	1,591.3	$	940.0	$	315.4		(b)	$	2,846.7
Other income	$	—	$	996.9	$	(2.4	)	(c)	$	994.5
Economic net income	$	781.9	$	785.4	$	(378.3	)	(d)	$	1,189.0

(a)

The Revenues adjustment principally represents fund management and performance fees earned from the Consolidated Funds which were eliminated in consolidation to arrive at the Partnership’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 Partnership’s share of Urbplan’s net losses as a component of investment income, and adjustments to reflect the Partnership’s ownership interests in Claren Road, ESG and Carlyle Commodity Management that were included in Revenues in the Partnership’s segment reporting.

(b)

The Expenses adjustment represents the elimination of intercompany expenses of the Consolidated Funds payable to the Partnership, the inclusion of certain tax expenses associated with performance fee compensation, adjustments related to expenses associated with the investment in NGP Management that are included in operating captions, adjustments to reflect the Partnership’s share of Urbplan’s net losses as a component of investment income, charges and credits associated with Carlyle corporate actions and non-recurring items and adjustments to reflect the Partnership’s economic interests in Claren Road, ESG and Carlyle Commodity Management, as detailed below (Dollars in millions):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Equity-based compensation issued in conjunction with the initial public offering, acquisitions and strategic investments	$	54.5		$	56.3		$	202.1		$	209.7
Acquisition related charges, including amortization of intangibles and impairment	209.6			24.5			247.9			166.6
Other non-operating (income) expense	(9.9		)	(39.6		)	(11.7		)	(14.0		)
Tax benefit (expense) associated with performance fee compensation	(5.1		)	15.0			(19.4		)	(23.5		)
Non-Carlyle economic interests in acquired business	26.2			11.9			134.6			156.5
Other adjustments	0.1			1.6			3.1			2.5
Elimination of expenses of Consolidated Funds	(57.5		)	(44.3		)	(167.8		)	(182.4		)
	$	217.9		$	25.4		$	388.8		$	315.4


(c)	The Other Income (Loss) adjustment results from the Consolidated Funds which were eliminated in consolidation to arrive at the Partnership’s total Other Income (Loss).


(d)	The following table is a reconciliation of Income Before Provision for Income Taxes to Economic Net Income, to Fee Related Earnings, and to Distributable Earnings (Dollars in millions):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Income (loss) before provision for income taxes	$	(529.1	)	$	175.4		$	560.3		$	1,189.0
Adjustments:
Equity-based compensation issued in conjunction with the initial public offering, acquisitions and strategic investments	54.5			56.3			202.1			209.7
Acquisition related charges, including amortization of intangibles and impairment	209.6			24.5			247.9			166.6
Other non-operating (income) expense	(9.9		)	(39.6		)	(11.7		)	(14.0		)
Tax benefit (expense) associated with performance fee compensation	(5.1		)	15.0			(19.4		)	(23.5		)
Net (income) loss attributable to non-controlling interests in consolidated entities	152.4			(53.2		)	(657.5		)	(747.4		)
Other adjustments	(0.8		)	2.4			2.2			1.5
Economic Net Income (Loss)	$	(128.4	)	$	180.8		$	323.9		$	781.9
Net performance fees⁽¹⁾	(148.6		)	139.2			282.4			669.0
Investment income (loss)⁽¹⁾	(6.3		)	3.5			(23.3		)	(9.1		)
Equity-based compensation	30.8			23.8			91.0			57.3
Fee Related Earnings	$	57.3		$	61.9		$	155.8		$	179.3
Realized performance fees, net of related compensation	177.2			97.8			688.3			469.2
Realized investment income (loss)⁽¹⁾	9.2			(2.7		)	(66.7		)	14.1
Distributable Earnings	$	243.7		$	157.0		$	777.4		$	662.6


(1)	See reconciliation to most directly comparable U.S. GAAP measure below:



	Three Months Ended September 30, 2015
	Carlyle Consolidated			Adjustments ⁽²⁾			Total Reportable Segments
	(Dollars in millions)
Performance fees
Realized	$	329.2		$	3.9		$	333.1
Unrealized	(575.8		)	21.6			(554.2		)
Total performance fees	(246.6		)	25.5			(221.1		)
Performance fee related compensation expense
Realized	155.2			0.7			155.9
Unrealized	(228.1		)	(0.3		)	(228.4		)
Total performance fee related compensation expense	(72.9		)	0.4			(72.5		)
Net performance fees
Realized	174.0			3.2			177.2
Unrealized	(347.7		)	21.9			(325.8		)
Total net performance fees	$	(173.7	)	$	25.1		$	(148.6	)
Investment income (loss)
Realized	$	12.5		$	(3.3	)	$	9.2
Unrealized	(22.0		)	6.5			(15.5		)
Investment income (loss)	$	(9.5	)	$	3.2		$	(6.3	)



	Three Months Ended September 30, 2014
	Carlyle Consolidated			Adjustments ⁽²⁾			Total Reportable Segments
	(Dollars in millions)
Performance fees
Realized	$	176.9		$	(1.6	)	$	175.3
Unrealized	10.5			38.1			48.6
Total performance fees	187.4			36.5			223.9
Performance fee related compensation expense
Realized	78.4			(0.9		)	77.5
Unrealized	(14.3		)	21.5			7.2
Total performance fee related compensation expense	64.1			20.6			84.7
Net performance fees
Realized	98.5			(0.7		)	97.8
Unrealized	24.8			16.6			41.4
Total net performance fees	$	123.3		$	15.9		$	139.2
Investment income (loss)
Realized	$	(0.5	)	$	(2.2	)	$	(2.7	)
Unrealized	4.3			1.9			6.2
Total investment income (loss)	$	3.8		$	(0.3	)	$	3.5



	Nine Months Ended September 30, 2015
	Carlyle Consolidated			Adjustments ⁽²⁾			Total Reportable Segments
	(Dollars in millions)
Performance fees
Realized	$	1,251.0		$	0.8		$	1,251.8
Unrealized	(629.7		)	90.4			(539.3		)
Total performance fees	621.3			91.2			712.5
Performance fee related compensation expense
Realized	561.7			1.8			563.5
Unrealized	(146.2		)	12.8			(133.4		)
Total performance fee related compensation expense	415.5			14.6			430.1
Net performance fees
Realized	689.3			(1.0		)	688.3
Unrealized	(483.5		)	77.6			(405.9		)
Total net performance fees	$	205.8		$	76.6		$	282.4
Investment income (loss)
Realized	$	24.2		$	(90.9	)	$	(66.7	)
Unrealized	(17.7		)	61.1			43.4
Investment income (loss)	$	6.5		$	(29.8	)	$	(23.3	)



	Nine Months Ended September 30, 2014
	Carlyle Consolidated		Adjustments ⁽²⁾			Total Reportable Segments
	(Dollars in millions)
Performance fees
Realized	$	843.9	$	(8.4	)	$	835.5
Unrealized	506.4		36.2			542.6
Total performance fees	1,350.3		27.8			1,378.1
Performance fee related compensation expense
Realized	368.3		(2.0		)	366.3
Unrealized	316.3		26.5			342.8
Total performance fee related compensation expense	684.6		24.5			709.1
Net performance fees
Realized	475.6		(6.4		)	469.2
Unrealized	190.1		9.7			199.8
Total net performance fees	$	665.7	$	3.3		$	669.0
Investment income (loss)
Realized	$	29.4	$	(15.3	)	$	14.1
Unrealized	4.2		(27.4		)	(23.2		)
Total investment income (loss)	$	33.6	$	(42.7	)	$	(9.1	)

(2)

Adjustments to performance fees and investment income (loss) relate to (i) amounts earned from the Consolidated Funds, which were eliminated in the U.S. GAAP consolidation but were included in the segment results, (ii) amounts attributable to non-controlling interests in consolidated entities, which were excluded from the segment results and (iii) the reclassification of NGP X performance fees, which are included in investment income in U.S. GAAP financial statements. Adjustments to 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 adjustments to reflect the Partnership’s share of Urbplan’s net losses as investment losses for the segment results. Adjustments to performance fee related compensation expense relate to certain tax expenses associated with performance fee compensation. Adjustments are also included in these financial statement captions to reflect the Partnership’s 55% economic interest in each of Claren Road, ESG, and, for periods prior to July 1, 2015, Carlyle Commodity Management. Effective for periods beginning on and after July 1, 2015, adjustments are included to reflect the Partnership's approximate 83% economic interest in Carlyle Commodity Management.

(e) The Total assets adjustment represents the addition of the assets of the Consolidated Funds that were eliminated in consolidation to arrive at the Partnership’s total assets.