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Segment Reporting
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting
17. Segment Reporting
Carlyle conducts its operations through three reportable segments:
Global Private Equity – The Global Private Equity segment is comprised of the Company’s operations that advise a diverse group of funds that invest in buyout, middle market and growth capital, real estate, infrastructure and natural resources transactions.
Global Credit – The Global Credit segment advises products that pursue investment opportunities across various types of credit, including loans and structured credit, direct lending, opportunistic credit, aircraft finance, infrastructure debt, insurance solutions and global capital markets solutions.
Global Investment Solutions – The Global Investment Solutions segment advises global private equity fund of funds programs and related co-investment, secondary and portfolio finance investments activities through AlpInvest. This segment also included Metropolitan Real Estate (“MRE”), a global manager of real estate fund of funds and related co-investment and secondary activities, prior to its sale on April 1, 2021.

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 and is used to assess performance.
     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 earnouts 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. 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 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 net realized performance revenues, realized principal investment income, net interest (interest income less interest expense), and certain general, administrative and other expenses when the timing of any future payment is uncertain. In 2022, the Company began to disclose fee related performance revenues as a separate line item in its segment results. Fee related performance revenues are the realized portion of performance revenues that are measured and received on a recurring basis, are not dependent on the disposition of investments, and which are not at risk of giveback. Previously, these amounts were included as a component of fund management fees. Beginning in 2022, the Company’s Core plus real estate fund, CPI, began to realize recurring performance revenues. Realized net performance revenues for CPI were immaterial in prior periods.
The following tables present the financial data for the Company’s three reportable segments as of and for the year ended December 31, 2022:
 December 31, 2022 and the Year Then Ended
 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 other29.5 81.6 — 111.1 
Fee related performance revenues69.4 59.9 — 129.3 
Total fund level fee revenues1,399.8 614.6 222.9 2,237.3 
Realized performance revenues1,656.6 131.5 192.6 1,980.7 
Realized principal investment income108.7 38.1 3.8 150.6 
Interest income14.9 15.3 2.6 32.8 
Total revenues3,180.0 799.5 421.9 4,401.4 
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits598.3 284.2 111.7 994.2 
Realized performance revenues related compensation751.5 61.3 169.4 982.2 
Total compensation and benefits1,349.8 345.5 281.1 1,976.4 
General, administrative, and other indirect expenses235.3 97.7 36.8 369.8 
Depreciation and amortization expense25.6 8.2 5.1 38.9 
Interest expense63.7 32.6 11.0 107.3 
Total expenses1,674.4 484.0 334.0 2,492.4 
Distributable Earnings$1,505.6 $315.5 $87.9 $1,909.0 
(-) Realized net performance revenues905.1 70.2 23.2 998.5 
(-) Realized principal investment income108.7 38.1 3.8 150.6 
(+) Net interest48.8 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 as of and for the year ended December 31, 2021:
 
 December 31, 2021 and the Year Then Ended
 
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 other34.3 62.2 0.5 97.0 
Fee related performance revenues— 43.2 — 43.2 
Total fund level fee revenues1,146.1 419.8 228.9 1,794.8 
Realized performance revenues2,757.8 (6.0)186.8 2,938.6 
Realized principal investment income167.8 31.9 9.8 209.5 
Interest income1.4 5.6 0.2 7.2 
Total revenues4,073.1 451.3 425.7 4,950.1 
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits546.2 237.1 108.2 891.5 
Realized performance revenues related compensation1,243.6 (2.7)168.1 1,409.0 
Total compensation and benefits1,789.8 234.4 276.3 2,300.5 
General, administrative, and other indirect expenses172.5 63.1 32.0 267.6 
Depreciation and amortization expense25.1 8.0 4.5 37.6 
Interest expense63.8 26.1 10.8 100.7 
Total expenses2,051.2 331.6 323.6 2,706.4 
Distributable Earnings$2,021.9 $119.7 $102.1 $2,243.7 
(-) Realized net performance revenues1,514.2 (3.3)18.7 1,529.6 
(-) Realized principal investment income167.8 31.9 9.8 209.5 
(+) Net interest62.4 20.5 10.6 93.5 
(=) Fee Related Earnings$402.3 $111.6 $84.2 $598.1 
Segment assets as of December 31, 2021$10,282.4 $2,206.6 $2,009.2 $14,498.2 
(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 present the financial data for the Company’s three reportable segments for the year ended December 31, 2020:

 Year Ended December 31, 2020
 Global
Private
Equity		Global
Credit		Global
Investment
Solutions		Total
 (Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees$1,042.0 $288.3 $193.0 $1,523.3 
Portfolio advisory and transaction fees, net and other22.8 34.0 0.1 56.9 
Fee related performance revenues— 35.9 — 35.9 
Total fund level fee revenues1,064.8 358.2 193.1 1,616.1 
Realized performance revenues404.5 26.5 155.1 586.1 
Realized principal investment income52.0 18.7 2.3 73.0 
Interest income3.3 10.4 0.6 14.3 
Total revenues1,524.6 413.8 351.1 2,289.5 
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits501.9 206.1 113.5 821.5 
Realized performance revenues related compensation183.0 12.2 144.6 339.8 
Total compensation and benefits684.9 218.3 258.1 1,161.3 
General, administrative, and other indirect expenses157.9 45.7 37.8 241.4 
Depreciation and amortization expense22.0 7.0 4.5 33.5 
Interest expense55.3 26.6 9.3 91.2 
Total expenses920.1 297.6 309.7 1,527.4 
Distributable Earnings$604.5 $116.2 $41.4 $762.1 
(-) Realized net performance revenues221.5 14.3 10.5 246.3 
(-) Realized principal investment income52.0 18.7 2.3 73.0 
(+) Net interest52.0 16.2 8.7 76.9 
(=) Fee Related Earnings$383.0 $99.4 $37.3 $519.7 
 
The following tables reconcile the Total Segments to the Company’s Total Assets and Income (Loss) Before Provision for Income Taxes as of and for the years ended December 31, 2022 and 2021:
 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 
 
 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 
The following table reconciles the Total Segments to the Company’s Income Before Provision for Income Taxes for the year ended December 31, 2020:
 Year Ended December 31, 2020
 Total Reportable
Segments		Consolidated
Funds		Reconciling
Items		 Carlyle
Consolidated
 (Dollars in millions)
Revenues$2,289.5 $226.8 $418.3 (a) $2,934.6 
Expenses$1,527.4 $206.2 $599.7 (b) $2,333.3 
Other loss$— $(21.3)$— (c) $(21.3)
Distributable earnings$762.1 $(0.7)$(181.4)(d) $580.0 
 
(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,
202220212020
(Dollars in millions)
Unrealized performance revenues$(142.5)$3,155.6 $1,031.0 
Unrealized principal investment income(38.3)351.8 (556.2)
Principal investment loss from dilution of indirect investment in Fortitude(176.9)— — 
Adjusted unrealized principal investment income from direct investment in Fortitude— — (104.4)
Adjustments related to expenses associated with investments in NGP Management and its affiliates(12.9)(13.7)(15.3)
Tax expense associated with certain foreign performance revenues0.1 0.2 0.5 
Non-controlling interests and other adjustments to present certain costs on a net basis119.0 159.6 96.6 
Elimination of revenues of Consolidated Funds(22.2)(74.7)(33.9)
$(273.7)$3,578.8 $418.3 

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, 2022, 2021 and 2020:
Year Ended December 31,
202220212020
(Dollars in millions)
Total Reportable Segments - Fund level fee revenues$2,237.3 $1,794.8 $1,616.1 
Adjustments(1)
(207.2)(127.3)(130.1)
Carlyle Consolidated - Fund management fees$2,030.1 $1,667.5 $1,486.0 

    (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 CLOs which were eliminated in consolidation to arrive at the Company’s fund management fees, the reclassification of a $12.7 million loss related to the purchase of investor interests in a Global Investment Solutions product from fund management fees to principal investment income (loss), 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,
 202220212020
(Dollars in millions)
Unrealized performance and fee related performance revenue related compensation expense$(326.2)$1,549.4 $432.3 
Equity-based compensation161.9 172.9 116.6 
Acquisition or disposition-related charges and amortization of intangibles and impairment187.4 37.7 38.1 
Tax expense associated with certain foreign performance revenues related compensation2.9 (17.3)(8.4)
Non-controlling interests and other adjustments to present certain costs on a net basis82.7 78.5 55.8 
Debt extinguishment costs— 10.2 — 
Right-of-use asset impairment— 26.8 — 
Other adjustments, including severance and C-Corp. conversion costs in 202012.4 14.2 8.0 
Elimination of expenses of Consolidated Funds(44.1)(39.5)(42.7)
$77.0 $1,832.9 $599.7 
 
(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,
 202220212020
(Dollars in millions)
Income before provision for income taxes$1,572.5 $4,027.5 $580.0 
Adjustments:
Net unrealized performance and fee related performance revenues(183.7)(1,606.2)(598.7)
Unrealized principal investment (income) loss(1)
38.3 (351.8)556.2 
Principal investment loss from dilution of indirect investment in Fortitude176.9 — — 
Adjusted unrealized principal investment (income) loss from direct investment in Fortitude(2)
— — 104.4 
Equity-based compensation(3)
161.9 172.9 116.6 
Acquisition or disposition-related charges, including amortization of intangibles and impairment187.4 37.7 38.1 
Net income attributable to non-controlling interests in consolidated entities(59.7)(70.5)(34.6)
Tax expense associated with certain foreign performance revenues3.0 (17.1)(7.9)
Debt extinguishment costs— 10.2 — 
Right-of-use impairment— 26.8 — 
Other adjustments including severance and C-Corp. conversion costs in 202012.4 14.2 8.0 
Distributable Earnings$1,909.0 $2,243.7 $762.1 
Realized performance revenues, net of related compensation(4)
998.5 1,529.6 246.3 
Realized principal investment income(4)
150.6 209.5 73.0 
Net interest74.5 93.5 76.9 
Fee Related Earnings$834.4 $598.1 $519.7 
 
(1) Adjustments to unrealized principal investment income (loss) during the year ended December 31, 2020 are inclusive of $211.8 million of unrealized gains, resulting from changes in the fair value of embedded derivatives related to certain reinsurance contracts included in Fortitude’s U.S. GAAP financial statements prior to the contribution of the Company’s investment in Fortitude to Carlyle FRL on June 2, 2020. At the time of the contribution of the Company’s investment to Carlyle FRL, the Company began accounting for its investment under the equity method based on its net asset value in the fund, which is an investment company that accounts for its investment in Fortitude at fair value.
(2) Adjusted unrealized principal investment income (loss) from the direct investment in Fortitude represents 19.9% of Fortitude’s estimated net income (loss), excluding the unrealized gains (losses) related to embedded derivatives, prior to the contribution of the Company’s investment in Fortitude to Carlyle FRL on June 2, 2020.
(3) Equity-based compensation for the years ended December 31, 2022, 2021 and 2020 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.
    (4)    See reconciliation to most directly comparable U.S. GAAP measure below:
 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 expense719.9 262.3 982.2 
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 expense2,961.0 (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 
 
 Year Ended December 31, 2020
 Carlyle
Consolidated
Adjustments(3)
Total
Reportable
Segments
 (Dollars in millions)
Performance revenues$1,635.9 $(1,049.8)$586.1 
Performance revenues related compensation expense779.1 (439.3)339.8 
Net performance revenues$856.8 $(610.5)$246.3 
Principal investment income (loss)$(540.7)$613.7 $73.0 
 
(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, and 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 RevenuesTotal 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 RevenuesTotal 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 %
 
 Total RevenuesTotal Assets
 Share%Share%
 (Dollars in millions)
Year Ended December 31, 2020
Americas(1)
$1,787.7 61 %$7,758.8 50 %
EMEA(2)
622.3 21 %6,807.0 43 %
Asia-Pacific(3)
524.6 18 %1,079.0 7 %
Total$2,934.6 100 %$15,644.8 100 %
 
(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.