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SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Basis of Presentation Basis of Presentation
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in
the United States (“U.S. GAAP”) and the instructions to Form 10-K. The Fund is an investment company for the purposes of
accounting and financial reporting in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards
Codification (“ASC”) Topic 946, Financial Services – Investment Companies (“ASC 946”).
Basis of Consolidation Basis of Consolidation
In accordance with ASC 946, the Fund generally does not consolidate entities unless the Fund has a controlling financial
interest in an investment company or operating company whose business consists of providing services to the Fund. The Fund
determines whether it has a controlling financial interest in an investment company or operating company at such company’s
inception or time of acquisition and continuously reconsiders this conclusion. Accordingly, the Fund consolidates in its
consolidated financial statements the accounts of certain wholly owned subsidiaries, including entities formed to hold or
aggregate investments, that meet the criteria described above. All significant intercompany balances and transactions have been
eliminated in consolidation.
Use of Estimates Use of Estimates
The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make
assumptions and estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the consolidated financial statements. Management’s estimates are based on historical experiences and
other factors, including expectations of future events that management believes to be reasonable under the circumstances. It also
requires management to exercise judgment in the process of applying the Fund’s accounting policies. Actual results could differ
from these estimates and such differences could be material.
Cash and Cash Equivalents Cash and Cash Equivalents
Cash and cash equivalents consist principally of cash and/or short term investments, including overnight bank deposits,
which are readily convertible into cash and have original maturities of three months or less. The Fund is subject to credit risk
should a financial institution be unable to fulfil its obligations and if balances held at a financial institution exceed insured
limits.
Foreign Currency Foreign Currency
The Fund’s investments may be denominated in foreign currencies and, thus, are subject to foreign currency exchange rate
fluctuations. Assets and liabilities denominated in foreign currencies are remeasured into U.S. dollars at the prevailing exchange
rate at the reporting date. Transactions denominated in foreign currencies, including purchases and sales of investments, and
income and expenses, are remeasured into U.S. dollars at the prevailing exchange rates at the respective transaction dates. The
effects of changes in foreign currency exchange rates are included in the consolidated statement of operations as part of realized
and unrealized gains and losses, as applicable.
Investment Valuation Investment Valuation
The Fund carries its investments at fair value in accordance with ASC Topic 820, Fair Value Measurement (“ASC 820”).
ASC 820 establishes a hierarchical disclosure framework which ranks the observability of market inputs used in measuring
investments at fair value. The observability of inputs is impacted by a number of factors, including the type of investment, the
characteristics specific to the investment and the state of the marketplace, including the existence and transparency of
transactions between market participants.
The Fund’s portfolio investments measured and reported at fair value are classified and disclosed based on the
observability of inputs used in the determination of fair value, as follows:
Level I — Inputs are quoted prices in active markets for identical investments as of the reporting date. The Fund does
not adjust the quoted price for such investments.
Level II — Inputs are other than quoted prices in active markets and are either directly or indirectly observable as of
the reporting date. These inputs may include quoted prices for similar investments in active markets, quoted prices for
identical or similar investments in markets that are not active, or other observable inputs.
Level III — Inputs are unobservable and significant to the overall fair value measurement. The determination of fair
value for investments classified within Level III requires significant judgment or estimation by the General Partner.
The Fund recognizes transfers between levels of the fair value hierarchy at the end of the reporting period in which the
transfer occurs.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such
cases, the classification within the hierarchy is determined based on the lowest level input that is significant to the fair value
measurement in its entirety.
In the absence of observable market prices, the Fund values its investments using valuation methodologies applied on a
consistent basis in accordance with the Fund’s valuation policies and procedures approved by the General Partner. Such
methodologies may include the market approach, which considers comparable company or transaction multiples, and the
income approach, which incorporates discounted cash flow analyses and other valuation techniques. These methods involve a
significant degree of judgment.
For investments in private equity funds, secondary funds and other external investment vehicles, the Fund generally
determines fair value based on its proportionate share of the most recent NAV reported by the respective underlying fund
manager, provided that such NAV is calculated in a manner consistent with ASC 820. The reported NAV is adjusted, as
necessary, for subsequent capital contributions, distributions and other known events occurring through the reporting date. To
the extent the underlying fund holds publicly traded securities, the Fund considers changes in the quoted market prices of such
securities from the date of the most recent NAV. In addition, where appropriate, the Fund may adjust the reported NAV to
reflect estimated changes in the fair value of the underlying fund’s non-public investments from the date of the most recent
NAV through the reporting date.
Investments measured using NAV as a practical expedient are not classified within the fair value hierarchy but are
disclosed separately in Note 3, Fair Value Measurements.
Income Taxes Income Taxes
As Carlyle Private Equity Partners Fund, L.P. is a partnership for U.S. federal and state income tax purposes, income and
losses are allocated to the individual shareholders who are responsible for reporting such and paying any taxes thereon. The
Fund anticipates filing its initial tax return in 2026. The Fund intends to operate, in part, through subsidiaries that may be
treated as corporations for U.S. and non-U.S. tax purposes. The Fund may therefore be subject to current and deferred U.S.,
state, and/or local income taxes at these subsidiaries.
The Fund accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax
assets and liabilities for the expected future consequences of events that have been included in the financial statements or tax
returns. A valuation allowance is recorded on the Fund’s gross deferred tax assets when it is “more likely than not” that such
asset will not be realized. When evaluating the realizability of the Fund’s deferred tax assets, all evidence, both positive and
negative, is evaluated.
Under U.S. GAAP for income taxes, the amount of tax benefit to be recognized is the amount of benefit “more likely than
not” to be sustained upon examination. If uncertainties in tax positions exist, a liability is established. The Fund recognizes
accrued interest and penalties, if any, as a component of the provision for income taxes.
Calculation of Net Asset Value Calculation of Net Asset Value
The Fund calculates NAV under U.S. GAAP as of the end of each month by deducting all accrued fees, expenses and other
liabilities from the fair value of investments and other assets. Expenses directly related to the Fund or its classes are charged to
the Fund or the applicable class. Expenses directly related to the Fund and other shared expenses prorated to the Fund are
allocated to each class based on its relative net assets or other appropriate methods. Other operating expenses shared by several
funds, including other funds managed by the Investment Advisor, are prorated among those funds on the basis of relative net
assets or other appropriate methods. Net asset value per Unit for each class is calculated by dividing the net asset value for that
class by the total number of outstanding Units of that class on the reporting date.
For purposes of establishing the price at which transactions in the Fund’s Units occur, the Fund also calculates a monthly
“Transactional NAV”, which differs from the Fund’s NAV determined in accordance with U.S. GAAP, primarily due to
differences in the recognition and timing of certain fees and expenses.
Net Realized Gains or Losses and Net Change in Unrealized Gain (Loss) on Investments
Realized gains or losses on investments are recognized upon the sale, repayment, or other disposition of an investment and
are measured as the difference between the net proceeds received and the investment’s cost basis, adjusted for any previously
recognized unrealized appreciation or depreciation, with cost determined using the specific identification method.
Net change in unrealized appreciation (depreciation) on investments reflects the change in fair value of investments during
the reporting period, including the reversal of previously recorded unrealized amounts upon realization. Unrealized gains and
losses are included in the consolidated statement of operations in the period in which the change in fair value occurs.
Realized and unrealized gains and losses on derivative contracts, if any, are recognized in accordance with the Fund’s
derivative accounting policy and are presented separately in the consolidated statement of operations, as discussed below.
Derivative Instruments Derivative Instruments
CPEP enters into foreign currency forward contracts to economically hedge against foreign currency exchange rate risk on
its non-U.S. dollar denominated securities or to facilitate settlement of foreign currency denominated transactions. A foreign
currency forward contract is an agreement between two parties to buy and sell a currency at a set price with delivery and
settlement at a future date. Foreign currency forward contracts are carried at fair value and are marked-to-market at each
reporting date. The change in fair value is recognized as a component of net change in unrealized appreciation on derivative
contracts in the consolidated statement of operations.
Upon settlement or termination of a contract, realized gains or losses are recognized in net realized gain (loss) on
investments and derivative contracts and represent the difference between the proceeds received or paid and the contract’s
carrying value at the time of settlement. Foreign currency forward contracts involve elements of market risk in excess of the
amounts reflected in the consolidated statement of assets and liabilities. The primary risk associated with these instruments is
the risk of an unfavorable change in the underlying foreign currency exchange rates.
The Fund enters into foreign currency forward contracts under ISDA master agreements with its counterparty. These
agreements provide for the netting of amounts payable and receivable with the same counterparty and permit, for foreign
currency transactions, settlement on a net basis for amounts due on the same date and in the same currency. The Fund does not
offset derivative assets and liabilities in its consolidated statement of assets and liabilities, as the conditions required for
offsetting are not met.
The Fund recognizes derivative instruments as assets or liabilities at fair value in its consolidated statement of assets and
liabilities as derivative assets at fair value and derivative liabilities at fair value, respectively.
Additional information regarding derivative instruments is included in Note 4, Derivative Instruments.
Organizational and Offering Costs Organizational and Offering Costs
Organizational costs are expensed as incurred. Offering costs attributable to the sale of Units are capitalized as deferred
offering costs and included in other assets on the consolidated statement of assets and liabilities. Costs associated with the
offering of each of the Fund’s classes of units as described in Note 5, Net Assets, are capitalized as a deferred expense and
included as an asset on the consolidated statement of assets and liabilities. These deferred offering costs are amortized over a
twelve-month period beginning on the date incurred. Organizational and offering costs were not borne by the Fund until the
Initial Closing on October 1, 2025.
Servicing Fees Servicing Fees
The Fund pays a servicing fee (the “Servicing Fee”) to TCG Capital Markets L.L.C. (the “Dealer Manager”) based on the
applicable annual rate of the Transactional NAV of certain Unit classes. No servicing fee is payable with respect to Class I
Units, Class A-I Units, Class E-I Units, Class C Units and Class CG Units. Additional information regarding the Servicing Fee
arrangement is included in Note 6, Related Party Transactions.
In accordance with U.S. GAAP, the Fund accrues the estimated cost of the Servicing Fee at the time Units bearing such
fees are issued and records the obligation as an offering cost.
Other Expenses Other Expenses
Other expenses consist primarily of fund operating costs, including administration, accounting, legal, audit, tax, servicing
and other professional fees incurred in connection with the Fund’s operations.
Segment Reporting Segment Reporting
CPEP operates through a single reporting segment with the objective of generating investment returns by providing its
investors access to Carlyle’s platform, with an emphasis on its U.S., European, and Asian corporate buyout strategies. The chief
operating decision maker of the Fund is the Fund’s Chief Executive Officer, who primarily utilizes net increase in net assets
from operations to implement investment policy decisions, manage the portfolio and assess the performance of the Fund. As the
Fund’s operations comprise a single reporting segment, there is no difference between segment assets and total consolidated
assets as presented on the accompanying consolidated statement of assets and liabilities and the significant segment expense are
the same as those listed on the accompanying consolidated statement of operations.