Carlyle Group Inc. (CG) Business

ITEM 1.BUSINESS

Overview

Carlyle is one of the world’s largest global investment firms that deploys private capital across three business

segments: Global Private Equity, Global Credit, and Carlyle AlpInvest (formerly, Global Investment Solutions). Our teams

invest across a range of strategies that leverage our deep industry expertise, local insights, and global resources to deliver

attractive returns throughout an investment cycle. Since our firm was founded in Washington, D.C. in 1987, we have grown to

manage $477 billion in AUM as of December 31, 2025. Our experienced and diverse team of more than 2,500 employees

includes 770 investment professionals in 27 offices across four continents, and we serve more than 3,200 active carry fund

investors from 87 countries.

We seek to invest with a clarity of purpose, adaptability, and alignment between our interests and the interests of our

fund investors, shareholders, and other stakeholders.

Operational and strategic highlights for our firm and our three global business segments for 2025 include:

•Assets under management grew 8% to $477 billion as of December 31, 2025 from $441 billion as of

December 31, 2024. The increase was driven by inflows of $53.7 billion during 2025, a 32% increase from

2024. We deployed $54.5 billion across our platform during 2025 and realized proceeds of $34.1 billion for

our carry fund investors.

•We returned approximately $0.9 billion in capital to our shareholders. During 2025, we paid dividends to our

common shareholders of $505 million, and used $400 million to repurchase 7.5 million shares of our common

stock.

•In our Global Private Equity (“GPE”) segment, we realized proceeds of $18.2 billion for our carry fund

investors in 2025 and deployed $10.4 billion across the segment, both representing increases from prior year

levels. Inflows of $7.5 billion during the year reflected final closes in our tenth and largest U.S. real estate

fund (“CRP X”) and our sixth Asia buyout fund (“CAP VI”), fundraising in our life sciences platform, and

subscriptions in our evergreen real estate offering (“CPI”). We had continued success in initial public

offerings in 2025, listing Orion Breweries in Japan, Hexaware in India, and Medline in the United States,

reflecting breadth and diversity across geographies and sectors.

•Our Global Credit (“GC”) AUM increased 10% year-over-year to $211 billion, driven by inflows of $28.3

billion across a diverse set of strategies. Deployment of $29.9 billion in 2025 more than doubled compared to

2023 levels, driven by strong direct lending originations and sustained activity in our structured credit

products. We priced 39 CLOs in 2025, including the closing of nine new CLO issuances. Our Global Capital

Markets strategy also had a record year, and was the primary driver of $206.0 million of portfolio advisory

and transaction fees for the year ended December 31, 2025.

•In our Carlyle AlpInvest segment, total AUM increased 20% year-over-year to $102 billion, driven by $17.9

billion of inflows primarily from fundraising in our secondaries & portfolio finance, CAPM, and our newly

launched CAPS funds. We deployed $14.2 billion in investments across our Carlyle AlpInvest platform, and

we realized proceeds of $10.3 billion for our Carlyle AlpInvest investors.

Business Segments

We operate our business across three segments: Global Private Equity, Global Credit, and Carlyle AlpInvest.

Information about our segments should be read together with Part II, Item 7 “Management’s Discussion and Analysis of

Financial Condition and Results of Operations.”

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Global Private Equity

Our GPE segment advises our buyout, growth, real estate, infrastructure, and natural resources funds. Across our GPE

funds, as of December 31, 2025, we had investments in more than 275 active portfolio companies that employ over 700,000

people around the world. Our GPE teams have the following areas of focus:

Corporate Private Equity. Our corporate private equity teams advise a diverse group of funds that invest in

transactions that focus either on a particular geography or strategy. Our buyout funds focus on corporate buyouts and strategic

minority investments. The investment mandate for our growth capital funds is to seek out companies with the potential for

disruptive growth. Our core strategy seeks longer duration private equity opportunities, targeting stable businesses with

sustainable market leadership, which have opportunities for operational improvement. Our corporate private equity funds are

advised by teams of local professionals who live and work in the markets where they invest. In 2025, we invested $5.9 billion

in new and follow-on investments through our corporate private equity funds and realized $11.3 billion of proceeds. As of

December 31, 2025, our corporate private equity funds had, in the aggregate, $104.3 billion in AUM.

Real Estate. Our real estate team advises real estate funds that invest in the U.S. and Europe, with a focus on a broad

range of opportunities including residential properties, senior living facilities, industrial properties, and self-storage properties,

but have limited our exposure to office buildings, hotels, and retail properties. Our real estate funds generally focus on

acquiring single-property assets rather than large-cap companies with real estate portfolios and made more than 1,700

investments across the world from inception through December 31, 2025. In 2025, we invested $2.2 billion in new and follow-

on investments through our real estate funds and realized $1.6 billion of proceeds. As of December 31, 2025, our real estate

funds managed, in the aggregate, $36.0 billion in AUM.

Infrastructure & Natural Resources. Our active infrastructure and natural resources funds focus on infrastructure and

energy investing. Our infrastructure business comprises teams that invest in six primary sectors: renewables, energy

infrastructure, water and waste, transportation, digital infrastructure, and power generation. Our energy activities focus on

buyouts, growth capital investments and strategic joint ventures in the midstream, upstream, downstream, energy and oilfield

services sectors around the world. Our international energy investment team primarily focuses on investments across the energy

value chain outside of North America. We generally conduct our North American energy investing through our strategic

investment in NGP, a Texas-based energy investor. In 2025, we invested $2.3 billion in new and follow-on investments through

our infrastructure and natural resources funds and realized $5.2 billion of proceeds. As of December 31, 2025, we managed

$23.3 billion in AUM through our infrastructure and natural resources funds.

The following table presents certain data about our Global Private Equity segment as of December 31, 2025 (dollar

amounts in billions).

(1)Total AUM includes NGP, which advises ten funds with $10.8 billion in AUM as of December 31, 2025. See Note 4, Investments, to the

consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for more information regarding our strategic

investments in NGP. We do not control NGP, and we do not serve as an investment adviser to the NGP funds.

(2)Total GPE investment professionals excludes NGP employees.

Global Credit

Our Global Credit segment, which had $211.3 billion in assets under management as of December 31, 2025, advises

products that pursue investment strategies across the credit spectrum, including liquid credit, opportunistic credit, direct

lending, asset-backed finance, aviation finance, infrastructure credit, and cross-platform credit products. Global Credit, which

also includes our insurance solutions and global capital markets businesses, has been Carlyle’s fastest-growing segment in the

past five years, with total AUM nearly quadrupling in that period. Since the establishment of Global Credit in 1999, these

various capital sources have provided the opportunity for Carlyle to offer highly customizable and creative financing solutions

to borrowers to meet their specific capital needs. Carlyle draws on the expertise and underwriting capabilities of our more than

205 investment professionals and leverages the resources and industry expertise of Carlyle’s global network to provide creative

solutions for borrowers.

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Primary areas of focus for our Global Credit platform include:

Insurance Solutions

•Carlyle Insurance Solutions. Carlyle Insurance Solutions (“CIS”) combines our deep insurance expertise with

portfolio construction capabilities, capital sourcing and asset origination strengths to provide comprehensive

liability funding and reinsurance, asset management and advisory solutions for reinsurance companies and fund

investors. The CIS team oversees the investment in Fortitude, as well as the strategic advisory services agreements

with certain subsidiaries and affiliates of Fortitude and FCA Re. As of December 31, 2025, AUM related to

capital raised for equity investments in reinsurance companies, including from third-party investors to acquire a

controlling interest in Fortitude, was $6.5 billion. As of December 31, 2025, total AUM related to these strategic

advisory services agreements was $80.4 billion, which has increased over 50% since signing the Fortitude

agreement in April 2022. This balance includes the net asset value of investments in Carlyle products, which is

also reflected in the AUM and Fee-earning AUM of the strategy in which they are invested. Fortitude and certain

Fortitude reinsurance counterparties have committed approximately $24.6 billion of capital to-date to various

Carlyle strategies.

Liquid Credit

•Our liquid credit products invest primarily in performing senior secured bank loans through CLOs and other

investment vehicles. In 2025, we closed nine new CLOs with an aggregate size of $4.8 billion. As of

December 31, 2025, our liquid credit team advised funds with AUM totaling $50.1 billion.

Private Credit

•Opportunistic Credit. Our opportunistic credit team invests primarily in highly-structured and privately-negotiated

capital solutions supporting corporate borrowers through secured loans, senior subordinated debt, mezzanine debt,

convertible notes, and other debt-like instruments, as well as preferred and common equity. The team will also

look to invest in special situations (i.e., event-driven opportunities that exhibit hybrid credit and equity features) as

well as market dislocations (i.e., primary and secondary market investments in liquid debt instruments that arise as

a result of temporary market volatility). In certain investments, our funds may seek to restructure pre-

reorganization debt claims into controlling positions in the equity of the reorganized companies. As of

December 31, 2025, our opportunistic credit team advised products totaling $20.3 billion in AUM.

•Direct Lending. Our direct lending business includes our business development companies (“BDCs”) that invest

primarily in middle market first-lien loans (which include unitranche, “first out” and “last out” loans) and second-

lien loans of middle-market companies, typically defined as companies with annual EBITDA ranging from $25

million to $100 million, that lack access to the broadly syndicated loan and bond markets. As of December 31,

2025, our direct lending investment team advised investment vehicles with AUM totaling $13.6 billion.

•Asset-Backed Finance. Asset-backed finance (“ABF”) is an asset-backed, private fixed income investment

strategy within Global Credit that seeks to generate a premium return profile compared to traditional fixed income

and credit investments by acquiring and lending against diversified pools of assets with contractual cash flows.

ABF combines Carlyle’s long-standing history in liquid credit, private asset underwriting expertise, and capital

markets capabilities, to deliver tailored asset-focused financing solutions across the entire debt and equity capital

structure. As of December 31, 2025, ABF represented $10.2 billion in AUM.

•Aviation Finance. Carlyle Aviation Partners is our multi-strategy investment platform that is engaged in

commercial aviation aircraft financing and investment throughout the commercial aviation industry. As of

December 31, 2025, Carlyle Aviation Partners had approximately $12.8 billion in AUM across carry funds,

securitization vehicles, liquid strategies, and other vehicles.

•Infrastructure Credit. Our infrastructure credit team invests primarily in directly originated and privately

negotiated debt instruments related to global infrastructure projects, primarily in the power, energy, transportation,

water/waste, telecommunications and social infrastructure sectors. The team focuses primarily on senior,

subordinated, and mezzanine debt and seeks to invest primarily in developed markets within the Organization for

Economic Cooperation and Development (“OECD”). As of December 31, 2025, our Infrastructure credit team

managed $6.9 billion in AUM.

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•Cross-Platform Credit Products. Our platform initiatives include CTAC, our U.S. closed-end interval fund, and

ETAC, our semi-liquid European fund, that invest across Carlyle’s entire credit platform, as well as cross-platform

separately managed accounts that are tailored to invest across Carlyle’s credit platform based on the specific

investment needs of individual investors. As of December 31, 2025, the Global Credit platform initiatives

represented $10.0 billion in AUM.

Global Capital Markets

•Carlyle Global Capital Markets. Carlyle Global Capital Markets (“GCM”) is a loan syndication and capital

markets business that arranges, places, underwrites, originates and syndicates loans and underwrites and places

securities of third parties and Carlyle portfolio companies through TCG Capital Markets and TCG Senior

Funding. TCG Capital Markets is a FINRA registered broker dealer. GCM may also act as the initial purchaser of

such loans and securities. GCM receives fees, including underwriting, placement, structuring, transaction and

syndication fees, commissions, underwriting and original issue discounts, interest payments and other

compensation, which may be payable in cash or securities or loans, in respect of the activities described above and

may elect to waive such fees.

The following table presents certain data about our Global Credit segment as of December 31, 2025 (dollar amounts in

billions).

Carlyle AlpInvest

Our Carlyle AlpInvest (formerly, Global Investment Solutions) segment, established in 2011, provides comprehensive

investment opportunities and resources for our investors and clients to build private equity portfolios through fund of funds,

secondary purchases or financings of existing portfolios and managed co-investment programs. Investors can also invest across

our platform through our closed-end tender offer CAPM and CAPS funds, which have $7.2 billion in AUM as of December 31,

2025. Carlyle AlpInvest executes these activities through AlpInvest, one of the world’s largest investors in private equity.

The primary areas of focus for our Carlyle AlpInvest teams include:

•Private Equity Secondary & Portfolio Finance Investments. Funds managed by AlpInvest build an investment

portfolio of private equity owned assets through the acquisition of limited partnership interests of private funds in

the secondary market and other types of transactions such as fund recapitalizations, portfolio restructurings and

spin-outs, and portfolio financings. Such funds will also invest in various debt (including both investment grade

and non-investment grade debt), preferred equity and structured equity securities issued by private funds or other

vehicles that own or have similar interests in private equity owned assets. Private equity investors who desire to

sell or restructure their pre-existing investment commitments to a fund may negotiate to sell the fund interests to

AlpInvest. In this manner, AlpInvest’s secondary & portfolio finance investments team provides the full range of

liquidity and restructuring solutions from debt to equity for third-party private equity investors. As of

December 31, 2025, our secondary & portfolio finance investments program totaled $45.7 billion in AUM.

•Private Equity Co-investments. AlpInvest invests alongside other private equity and mezzanine funds in which it

or certain AlpInvest limited partners typically has a primary fund investment throughout Europe, North America

and Asia. These investments are generally made when an investment opportunity is too large for a particular fund

and the sponsor of the fund therefore seeks to raise additional “co-investment” capital from sources such as

AlpInvest. As of December 31, 2025, our co-investment programs totaled $24.1 billion in AUM.

•Private Equity Fund Investments. Our fund of funds vehicles advised by AlpInvest make investment commitments

directly to buyout, growth capital, venture and other alternative asset funds advised by other general partners. As

of December 31, 2025, AlpInvest advised $25.0 billion in AUM in private equity fund investments.

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The following table presents certain data about our Carlyle AlpInvest segment as of December 31, 2025 (dollar

amounts in billions).

Investment Approach

Global Private Equity

The investment approach of our GPE teams is generally characterized as follows:

•Consistent and Disciplined Investment Process. We believe our successful investment track record is the result, in

part, of a consistent and disciplined application of our investment process. Investment opportunities for our GPE

funds are initially sourced and evaluated by one or more of our deal teams. Deal teams consistently strive to be

creative and look for deals in which we can leverage Carlyle’s competitive advantages, sector experience, and

global platform. The due diligence and transaction review process places a special emphasis on, as appropriate and

among other considerations, the reputation of a target company’s shareholders and management, the company’s or

asset’s size and sensitivity of cash flow generation, the business sector and competitive risks, the portfolio fit, exit

risks, and other key factors specific to a particular investment. In evaluating each deal, we consider what expertise

or experience we can bring to the transaction to enhance value for our investors. Each investment opportunity

must secure approval from the investment committee of the applicable investment fund to move forward. To help

ensure consistency, we utilize a standard investment committee process across our GPE funds, although NGP

follows its own policies and procedures with respect to its advised funds. The investment committee approval

process involves a detailed review of the transaction and investment thesis, business, risk factors and diligence

issues, as well as financial models.

•Distinctive Portfolio Construction Principles. We seek to proactively manage the construction of our portfolios

through deliberate and thoughtful diversification across industries, geographies and cycles, and to avoid certain

assets facing economic or industry headwinds. For example, our real estate portfolios have relatively little current

exposure to commercial office properties, business hotels, and retail properties.

•Geographic- and Industry-Focused. We have developed a global network of local investment teams and have

adopted an industry-focused approach to investing. Our extensive network of global investment professionals has

the knowledge, experience and relationships on a local level that allows them to identify and take advantage of

opportunities that may be unavailable to firms that do not have our global reach and resources. We believe that our

global platform helps enhance all stages of the investment process, including by facilitating faster and more

effective diligence, a deeper understanding of global industry trends and priority access to the capital markets. We

have particular industry expertise in aerospace and government services, consumer, media and retail, financial

services, healthcare, industrials, technology, real estate, natural resources, and infrastructure. As a result, we

believe that our in-depth knowledge of specific industries improves our ability to source and create transactions,

conduct effective and more informed due diligence, develop strong relationships with management teams and use

contacts and relationships within these industries to drive value creation.

•Variable Deal Sizes and Creative Structures. We believe that having the resources to complete investments of

varying sizes provides us with the ability to enhance investment returns while providing for prudent industry,

geographic and size diversification. Our teams are staffed not only to effectively pursue large transactions, but

also other transactions of varying sizes. We often invest in smaller companies or single real estate transactions and

this has allowed us to obtain greater diversity across our entire portfolio. Additionally, we may undertake large,

strategic minority investments with certain control elements or private investment in public equity (PIPE)

transactions in large companies with a clear exit strategy. In certain jurisdictions around the world, we may make

investments with little or no debt financing and seek alternative structures to opportunistically pursue transactions.

We generally seek to obtain board representation and typically appoint our investment professionals and advisors

to represent us on the boards of the companies in which we invest. Where our funds, either alone or as part of a

consortium, are not the controlling investor, we typically, subject to applicable regulatory requirements, acquire

significant voting and other control rights with a view to securing influence over the conduct of the business.

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•Driving Value Creation. Our GPE teams seek to make investments in portfolio companies and assets in which our

particular strengths and resources may be employed to their best advantage. Typically, as part of a GPE

investment, our investment teams will prepare and execute a systematic value creation plan that is developed

during a thorough due diligence effort and draws on the deep resources available across our global platform,

specifically relying on:

◦Reach. Our global team and global presence enables us to support international expansion of our operating

companies’ efforts and global supply chain initiatives.

◦Expertise. Our deep bench of investment professionals and industry specialists provide extensive sector-

specific knowledge and local market expertise. Our investment teams benefit from best-in-class support

services and infrastructure provided through the global Carlyle organization. Carlyle’s overall infrastructure

and support services cover the full range of administrative functions, including fund management, accounting,

legal and compliance, human resources, information technology, tax, and external affairs. Additionally, where

appropriate we may seek to partner with third parties whose sector or market expertise may enhance our value

creation in an investment. For example, in our U.S. real estate funds we may partner with joint venture

partners or managers with significant operational expertise and/or deal sourcing capabilities.

◦Insights. To supplement our investment expertise, we retain a group of approximately 45 operating executives

and advisors as independent consultants to work with our investment teams, provide board-level governance

and support and advise our portfolio companies. These operating executives and advisors are typically former

CEOs and other high-level executives of some of the world’s most successful corporations and currently sit

on the boards of directors of a diverse mix of companies. Operating executives and advisors are independent

consultants and are not Carlyle employees. Operating executives and advisors are often engaged by Carlyle

primarily to assist with deal sourcing, due diligence and market intelligence. Operating executives and

advisors may also be engaged and compensated by our portfolio companies as directors or to otherwise advise

portfolio company management.

◦Data. The goal of our research function is to extract as much information as possible from our portfolio about

the current state of the economy and its likely evolution over the near-to-medium term. Our corporate private

equity investment portfolio includes 190 active corporate investments as of December 31, 2025, across a

diverse range of industries and geographies that each generate multiple data points (e.g., orders, shipments,

production volumes, occupancy rates, bookings). By evaluating this data on a systematic basis, we work to

identify the data with the highest correlation with macroeconomic data and map observed movements in the

portfolio to anticipated variation in the economy, including changes in growth rates across industries and

geographies. We incorporate this proprietary data into our investment portfolio management strategy and exit

decisions on an ongoing basis. We believe this robust data gives us an advantage over our peers who do not

have as large of a global reach. Additionally, we are leveraging technological innovations and artificial

intelligence tools which offer operational efficiency potential across the deal life cycle from sourcing and

diligence, all the way through to exits. These tools allow our deal teams to operate more efficiently by

democratizing access to data analysis and automating more routine tasks allowing teams more time to focus

on the key issues and drive greater investment insights.

◦Talent and Organization Performance. Our investment professionals work to enhance leadership and

organizational effectiveness through proprietary and third-party data-driven assessments, best-practice

playbooks, and knowledge-sharing forums.

◦Pursuing Best Exit Alternatives. In determining when to exit an investment, our investment teams consider

whether a portfolio company or asset has achieved its objectives, the financial returns (including gross and net

MOIC and IRR) and the appropriate timing in industry cycles and company or asset development to strive for

the optimal value. Each fund’s investment committee approves all exit decisions.

◦Value Creation. Our Global Portfolio Solutions team helps to translate our collaborative culture into services

and operational capabilities supporting our investment process and portfolio companies and assets. Our

approach ensures that Carlyle’s global network, deep industry knowledge, and operational expertise are used

to support and enhance our investments.

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▪Information Technology Resources. We have established an information technology capability that

contributes to due diligence, portfolio company strategy and portfolio company operations. The

capability includes dedicated information technology and business process resources, including

assistance with portfolio company risk assessments and enhanced deal analytics.

▪Digital. Given the increasing importance of digital tools and resources across the global economy,

we have established a dedicated group focused exclusively on identifying, developing and

implementing digital transformation strategies to help drive growth, unlock value, and drive

efficiencies across our portfolio companies.

▪Procurement. We have developed a leveraged purchasing effort to provide portfolio companies with

effective sourcing programs with better pricing and service levels to help create operating value.

This program seeks to drive down costs and provide better service on common indirect spend

categories and disseminate best practices on managing functional spend in the areas of human capital

management, employee benefits, corporate real estate, information technology and treasury and risk.

As of December 31, 2025, 75 portfolio companies are actively participating in the optional program,

benefiting from more than 100 category arrangements and preferred vendor arrangements.

▪Sustainability. As a responsible global organization dedicated to driving value, Carlyle has invested

in a framework and the necessary resources for understanding, monitoring, and managing material

environmental, social, and governance (“ESG”) risks and opportunities across our portfolio. We

believe ESG integration provides an additional lens to help us assess and mitigate risks and identify

and capitalize on potential opportunities.

Global Credit

The investment approach of our Global Credit platform is generally characterized as follows:

•Source Investment Opportunities. Our Global Credit team sources investment opportunities from both the primary

and secondary markets through our global network and strong relationships with the financial community. We

typically target portfolio companies that have a demonstrated track record of profitability, market leadership in

their respective niche, predictable cash flow, a definable competitive advantage and products or services that are

value-added to their customer base.

•Conduct Fundamental Due Diligence and Perform Capital Structure Analyses. After an opportunity is identified,

our Global Credit investment professionals conduct fundamental due diligence to determine the relative value of

the potential investment and capital structure analyses to determine credit worthiness. Our due diligence approach

typically incorporates meetings with management, company facility visits, discussions with industry analysts and

consultants and an in-depth examination of financial results and projections. In conducting due diligence, our

Global Credit team employs an integrated, cross-platform approach with industry-dedicated credit research

analysts and non-investment grade expertise across the capital structure. Our Global Credit team also seeks to

leverage resources from across the firm, utilizing information obtained from our more than 275 active portfolio

companies and lending relationships, credit industry research team, in-house government affairs and economic

research, and ESG teams.

•Evaluation of Macroeconomic Factors. Our Global Credit team evaluates technical factors such as supply and

demand, the market’s expectations surrounding a company and the existence of short- and long-term value

creation or destruction catalysts. Inherent in all stages of credit evaluation is a determination of the likelihood of

potential catalysts emerging, such as corporate reorganizations, recapitalizations, asset sales, changes in a

company’s liquidity and mergers and acquisitions.

•Risk Minimization. Our Global Credit team seeks to make investments in companies that are well-positioned to

weather downturns and/or below-plan performance. The team works to structure investments with strong financial

covenants, frequent reporting requirements and board representation, if possible. Through board representation or

observation rights, our Global Credit team works to provide a consultative, interactive approach to equity sponsors

and management partners as part of the overall portfolio management process. In our CLO business, our liquid

credit team uses an in-house risk and analytics platform to monitor and analyze our portfolio, and repositions the

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portfolio as appropriate. The analytics platform is also used to generate sensitivity analysis for critical risk factors

such as default rates, prepayment rates and liquidation prices.

Carlyle AlpInvest

Our Carlyle AlpInvest team aims to apply a wide array of capabilities to help clients meet their investment objectives.

The investment approach of our Carlyle AlpInvest platform is generally characterized as follows:

•Well-Informed, Disciplined Investment Process. We follow a disciplined, highly-selective investment process and

seek to achieve diversification by deploying capital across economic cycles, segments and investment styles. Our

integrated and collaborative culture across our strategies, reinforced by investment in information technology

solutions, provides deep insight into fund manager portfolios and operations to support our rigorous selection

process.

•Proactive Sourcing. AlpInvest’s extensive network of private equity managers across the globe positions us to

identify investment opportunities that may be unavailable to other investors. Our investment strategy is defined by

a strong belief that the most attractive opportunities are found in areas that are subject to fewer competitive

pressures. As a result, our teams actively seek out proprietary investments that would otherwise be difficult for our

investors to access alone.

•Global Scale and Presence. Our scale and on-the-ground presence across three continents—Asia, Europe and

North America—give us a distinct and comprehensive perspective on the private equity markets. Our stable,

dedicated, and experienced teams have deep knowledge of their respective markets across the globe. We believe

this enhances our visibility across the global investment market and provides detailed local information that

enhances our investment evaluation process.

Our Global Investment Offerings

The following table provides a breakout of the product offerings and related acronyms included in our total assets

under management of $477 billion as of December 31, 2025 for each of our three global business segments (in billions):

Note: All amounts shown represent total assets under management as of December 31, 2025, and totals may not sum due to rounding. In

addition, certain carry funds included herein may not be included in fund performance if they have not made an initial capital call or

commenced investment activity.

(1)Includes our Financial Services (CGFSP), Sub-Saharan Africa Buyout (CSSAF), South America Buyout (CSABF), Peru Buyout (CPF),

MENA Buyout and Ireland Buyout (CCIF) funds, as well as platform accounts which invest across Corporate Private Equity strategies.

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(2)NGP Energy funds are advised by NGP Energy Capital Management, LLC, a separately registered investment adviser. We do not serve as

an investment adviser to those funds.

(3)Includes our Infrastructure (CGIOF), Renewable Energy (CRSEF) and Power funds (CPP / CPOCP).

(4)Includes Carlyle FRL, capital raised from strategic third-party investors which directly invest in Fortitude alongside Carlyle FRL, as well

as the fair value of the general account assets covered by the strategic advisory services agreement with Fortitude.

(5)Includes our business development companies (CGBD / CARS) and our evergreen fund (CDLF).

(6)Includes our Energy Credit (CEMOF) and Real Estate Credit (CNLI) funds.

(7)Includes Carlyle AlpInvest Private Markets (CAPM) and Carlyle AlpInvest Private Markets Secondaries (CAPS) funds.

Organizational Structure

On January 1, 2020, we completed our conversion from a Delaware limited partnership named The Carlyle Group L.P.

into a Delaware corporation named The Carlyle Group Inc. Our common stockholders are entitled to one vote per share and to

vote on all matters on which stockholders of a corporation are generally entitled to vote on under Delaware General Corporation

Law (“DGCL”), including the election of our Board of Directors.

Investor Relations

Our diverse and sophisticated investor base includes more than 3,200 active carry fund investors located in 87

countries. Included among our many longstanding fund investors are pension funds, sovereign wealth funds, insurance

companies, and high net worth individuals in the United States, Asia, Europe, the Middle East, and South America.

We have a dedicated investor relations team that strives to cultivate long-term, strategic partnerships with our limited

partners. Our team combines strong strategy and coordination abilities to bring the best of Carlyle to our limited partners. In

addition, our team consists of a combination of geographically focused professionals and dedicated product specialists who

collaborate to deliver on investor needs. The investor relations team is also supported by a central strategy and operations team

responsible for data analytics and additional fulfillment responsibilities. Our Global Wealth team is dedicated to fundraising in

the private wealth channel globally and, in the United States, is organized regionally within each of its three constituent

segments: Registered Investment Advisors, Wirehouses, and Independent Broker Dealers. Global Wealth also includes

dedicated strategic partnerships, marketing, product development, and support professionals who help drive fundraising efforts.

The firm manages $18 billion in assets under management and serves over 45,000 investors across Global Wealth products as

of December 31, 2025.

Our investor relations professionals are in regular dialogue with our fund investors, enabling us to monitor investor

preferences and tailor future solutions to meet investor demand. We seek to secure a first-mover advantage with key investors

by providing a broad and diverse range of investment opportunities. In addition, we endeavor to expand our partnerships by

sharing our insights and perspectives on the market and investment environment, as well as discussing how we can help

investors achieve their objectives. We also continue to use technology to augment our fund transparency and communication

around market insights, as well as facilitate consistent dialogue through both virtual and in-person meetings and events. This

partnership approach to fundraising has been critical in generating inflows of $158 billion over the past three years, including

nearly $54 billion in 2025.

As of December 31, 2025, approximately 93% of commitments (by dollar amount) were from investors who are

committed to more than one product and approximately 76% of commitments (by dollar amount) were from investors who are

committed to more than five products. We believe the loyalty of our carry fund investor base, as evidenced by our substantial

number of multi-fund relationships, enhances our ability to raise new funds and successor funds in existing strategies.

Investor Services

We have a team of more than 1,000 investor services professionals worldwide. The investor services group performs a

range of functions to support our investment teams, investor relations group, and the corporate infrastructure of Carlyle. Our

investor services professionals provide an important control function, ensuring that transactions are structured pursuant to

partnership agreements, assisting in global regulatory compliance requirements, and investor reporting to enable investors to

easily monitor the performance of their investments. We have devoted substantial resources to creating comprehensive and

timely investor reports, which are increasingly important to our investor base. The investor services group also works closely

with the investment teams throughout each fund’s lifecycle, from fund formation and investments to portfolio monitoring and

fund liquidation.

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Structure and Operation of Our Investment Funds

We conduct the sponsorship and management of our carry funds and other investment vehicles primarily through

limited partnerships, which are organized by us, to accept commitments and/or funds for investment from institutional investors

and high net worth individuals. In general, each investment fund that is a limited partnership, or “partnership” fund, has a

general partner that is responsible for the management and operation of the fund’s affairs and makes all policy and investment

decisions relating to the conduct of the investment fund’s business. Generally, the limited partners of such funds take no part in

the conduct or control of the business of such funds, have no right or authority to act for or bind such funds, and have no

influence over the voting or disposition of the securities or other assets held by such funds, although such limited partners may

vote on certain partnership matters, including the removal of the general partner or early liquidation of the partnership by

majority vote, as discussed below. Most of our commingled funds also have an investor advisory committee, comprising

representatives of certain limited partners, which may consider and/or waive conflicts of interest or otherwise consult with the

general partner on certain partnership matters. In the case of certain separately managed accounts advised by us, the investor,

rather than us, may control the asset or the investment decisions related thereto or certain investment vehicles or entities that

hold or have custody of such assets.

Each investment fund domiciled outside the European Economic Area (the “EEA”) engages an investment adviser that

is registered under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). Our EEA-domiciled investment

funds engage a Carlyle entity that is domiciled in the EEA as an external alternative investment fund manager (an “AIFM”),

and the AIFM generally delegates portfolio management responsibilities for the fund to a Carlyle entity that is registered under

the Advisers Act. Our investment advisers and AIFMs generally are entitled to a management fee from each investment fund or

account they are engaged by. For a discussion of the management fees to which our investment advisers and AIFMs are entitled

across our various types of investment funds, see “Incentive Arrangements / Fee Structure” below.

Private investment funds themselves typically do not register as investment companies under the Investment Company

Act of 1940, as amended (the “1940 Act” or the “Investment Company Act”), in reliance on Section 3(c) or Section 7(d)

thereof. Section 3(c)(7) of the 1940 Act exempts from the 1940 Act’s registration requirements investment funds whose

securities, at the time of acquisition of such securities, are owned by “qualified purchasers” as defined under the 1940 Act who

purchase their interests in a private placement. Section 3(c)(1) of the 1940 Act exempts from the 1940 Act’s registration

requirements privately placed investment funds whose securities are beneficially owned by not more than 100 persons and who

purchase their interests in a private placement. In addition, under certain current interpretations of the U.S. Securities and

Exchange Commission (the “SEC”), Section 7(d) of the 1940 Act exempts from registration any non-U.S. investment fund all

of whose outstanding securities are beneficially owned either by non-U.S. residents or by U.S. residents that are qualified

purchasers and purchase their interests in a private placement. Certain of our investment funds, however, rely on other

exemptions from the 1940 Act or register as investment companies under the 1940 Act or elect to be regulated as BDCs under

the 1940 Act.

The governing agreements of the vast majority of our investment funds, other than our Carlyle AlpInvest funds as

discussed further below, provide that, subject to certain conditions, a majority in interest (based on capital commitments) of

third-party investors in those funds have the right to remove the general partner of the fund for cause and/or to accelerate the

liquidation date of the investment fund without cause. In addition, the governing agreements of many of our investment funds

generally require investors in those funds to affirmatively vote to continue the investment period in the event that certain “key

persons” in our investment funds do not provide the specified time commitment to the fund or our firm ceases to control the

general partner (or similar managing entity) or the investment adviser or ceases to hold a specified percentage of the economic

interests in the general partner (any such events, a “Key Person Event”).

With limited exceptions, our carry funds, BDCs, NGP predecessor funds, and certain other investment vehicles, are

closed-end funds. In a closed-end fund structure, once an investor makes an investment, the investor generally is not able to

withdraw or redeem its interest, except in very limited circumstances. Moreover, the governing agreement of each investment

vehicle contains restrictions on an investor’s ability to transfer its interest in the fund. In the funds we advise that offer

redemption rights, investors’ interests are usually locked up for a period of time after which investors may generally redeem

their interests on a quarterly basis, to the extent that sufficient cash is available.

With respect to our closed-end carry funds, investors generally agree to fund their commitment over a period of time.

For such carry funds, the investment period generally runs until the earliest of (i) the expiration of a defined period of time;

(ii) the date the general partner cancels the investors’ obligation to fund capital contributions; (iii) the date a supermajority in

interest (based on capital commitments) of investors vote to terminate the investment period; or (iv) the occurrence of a Key

Person Event, unless upon any of these events the investors vote to continue the investment period. Following the termination

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of the investment period, an investor generally will be released from any further obligation with respect to its undrawn capital

commitment except to the extent necessary to pay partnership expenses and management fees, fund outstanding borrowings and

guarantees, complete investments with respect to transactions committed to prior to the end of the investment period, and make

follow-on investments in existing investments. Generally, an investor’s obligation to fund follow-on investments continues

following the end of the investment period, although certain funds have a limit on when and how much the fund is permitted to

fund for such follow-on investments.

Each closed-end carry fund generally has a 10-year term from its initial or final closing date, although some funds

have shorter (such as certain Carlyle Aviation Partners funds and Global Credit funds) or longer terms. A fund’s governing

agreement generally provides that the fund’s term may be extended by the general partner, in certain cases with consent of the

limited partners or the investor advisory committee.

Incentive Arrangements / Fee Structure

Fund Management Fees. We provide management services to funds that engage our investment advisers or AIFMs.

For closed-end carry funds, management fees are based on limited partners’ capital commitments, invested capital, or invested

and committed capital during the fund’s investment period. Following the expiration or termination of the investment period,

the management fee rate may be reduced and the basis for management fees may change to be net invested capital, the lower of

cost or net asset value of invested capital, or the net asset value of unrealized investments. The investment adviser or AIFM will

receive management fees during the term of the fund. The terms of the investment advisory agreement and related agreements

specify the frequency of when management fees are called (e.g., quarterly or semi-annually) and whether they are called in

advance or in arrears.

Management fees for our open-end funds and BDCs and other 1940 Act regulated vehicles are generally based on the

fund’s net asset value or gross assets, payable on a monthly or quarterly basis in arrears over the life of the fund. Investor

redemptions from an open-end fund or a decline in a fund’s net asset value will reduce the management fees payable by the

fund. For our CLOs and other structured products, management fees are based on the total par amount of assets or the aggregate

principal amount of notes in the CLO and are due quarterly. Management fees for the CLOs and other structured products are

governed by indentures and collateral management agreements. The investment advisers will receive management fees for the

CLOs until redemption of the securities issued by the CLOs.

The general partners or investment advisers of certain of our Global Private Equity carry funds from time to time

receive customary transaction fees upon consummation of many of the fund’s acquisition transactions, receive monitoring fees

from many of the fund’s portfolio companies following acquisition, and may receive other fees in connection with the fund’s

activities. The management fees charged to investors in our carry funds generally are offset by 100% of such funds’ allocable

portions of such transaction fees, monitoring fees, and certain other fees that are received by the general partners and their

affiliates. Management fees generally are not offset by fees received by GCM in connection with capital markets activities.

In addition, Carlyle Aviation Partners may receive servicing fees in connection with asset-backed financing

transactions for certain Carlyle Aviation Partners funds. To the extent the financing instruments are held by the funds, these

fees are generally offset against management fees of the funds.

We also receive management fees in certain situations where we do not act as the investment adviser to a fund. Under

the strategic advisory services agreements with Fortitude and Fortitude Carlyle Asia Re, Ltd. (“FCA Re”), the Company earns a

recurring management fee due quarterly in arrears based on the client’s general account assets, which, with respect to Fortitude,

adjusts within an agreed range based on Fortitude’s overall profitability. Our equity interest in NGP entitles us to an allocation

of management fee related revenues of the NGP entities that serve as advisors to the NGP Energy Funds. See Note 4,

Investments, to the consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for more

information regarding our strategic investments in NGP.

Performance Allocations. The general partner of each of our carry funds also receives carried interest from the carry

funds. Carried interest entitles the general partner to a special residual allocation of profit on third-party capital. In the case of

our closed-end carry funds, carried interest is generally calculated on a “realized gain” basis, and each general partner is

generally entitled to a carried interest generated by third-party capital invested in such fund. Net realized profit or loss is not

netted between or among funds. Our senior Carlyle professionals and other personnel who work in these operations also own

interests in the general partners of our carry funds in order to better align their interests with our own and with those of the

investors in the funds, and such certain other personnel participate in a commingled carried interest pool program. We also

allocate a portion of carried interest to our annual discretionary bonus pool for our employees. In total, we currently allocate a

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range of approximately 60% to 70% of any carried interest that we earn to those individuals and our carried interest pool

program.

For most carry funds, the carried interest is subject to an annual preferred return of 7% to 9% and return of certain fund

costs (generally subject to catch-up provisions as set forth in the fund limited partnership agreement). These terms may vary on

longer-dated funds, certain Global Credit funds, and our external co-investment vehicles. If, as a result of diminished

performance of investments later in the life of a closed-end fund, the fund does not achieve investment returns that (in most

cases) exceed the preferred return threshold or (in almost all cases) the general partner receives in excess of the allocated

carried interest, we will be obligated to repay the amount by which the carried interest that previously was distributed to us

exceeds amounts to which we are ultimately entitled. This obligation, which is known as a “giveback” obligation, operates with

respect to a given carry fund’s own net investment performance only and typically is capped at the after-tax amount of carried

interest received by the general partner. Each recipient of carried interest distributions is individually responsible for his or her

proportionate share of any “giveback” obligation, and we have historically withheld a portion of the cash from carried interest

distributions to individuals as security for potential “giveback” obligations. However, we may guarantee the full amount of such

“giveback” obligation in respect of amounts received by Carlyle and certain other amounts. With respect to the portion of any

carried interest allocated to the firm, we expect to fund any “giveback” obligation from available cash. Our ability to generate

carried interest is an important element of our business and carried interest has historically accounted for a significant portion of

our income.

The receipt of carried interest in respect of investments of our carry funds is dictated by the terms of the partnership

agreements that govern such funds, which generally allow for carried interest distributions in respect of an investment upon a

realization event after satisfaction of obligations relating to the return of capital from all realized investments, any realized

losses, allocable fees and expenses, and the applicable annual preferred return. Carried interest ultimately is realized and

distributed when: (i) an underlying investment is profitably disposed of, (ii) certain costs borne by the investors have been

reimbursed, (iii) the investment fund’s cumulative realized returns are in excess of the preferred return, and (iv) we have

decided to collect carry rather than return additional capital to investors. Distributions to eligible senior Carlyle professionals in

respect of such carried interest generally are made shortly thereafter. Our decision to collect carry considers such factors as the

level of embedded valuation gains, the portion of the fund invested, the portion of the fund returned to investors, and the length

of time the fund has been in carry, as well as other qualitative measures. In substantially all cases, our Carlyle AlpInvest funds

are not eligible for carried interest distributions until all capital contributions for investments and expenses and the preferred

return hurdle have been returned. Although Carlyle has seldom been obligated to pay a giveback obligation, such obligation, if

any, in respect of previously realized carried interest, is determined and due upon the winding up or liquidation of a carry fund

pursuant to the terms of the fund’s partnership agreement and in many cases the giveback also is calculated at prior intervals.

With respect to our separately managed accounts, BDCs, Carlyle Credit Income Fund (“CCIF”), CAPM, CAPS,

Carlyle Private Equity Partners Fund (“CPEP”), and CTAC, carried interest generally is referred to as an “Incentive Fee.”

Incentive Fees consist of performance-based incentive arrangements pursuant to management contracts when the return on

AUM exceeds certain benchmark returns or other performance targets, and in certain cases are subject to any recovered losses.

Incentive Fees are recognized when the performance benchmark has been achieved.

Capital Invested in and Alongside Our Investment Funds

To further align our interests with those of investors in our investment funds, generally up to 3% of all capital

commitments to our funds are made by Carlyle, our senior Carlyle professionals, advisors, and other professionals. Carlyle will

generally commit up to 1% of capital commitments to our Global Private Equity and Global Credit carry funds, although we

may elect to invest additional amounts in funds focused on new investment areas. We also intend to make investments in our

Carlyle AlpInvest carry funds, our open-end funds, our BDCs and other 1940 Act regulated vehicles, and our CLO vehicles. In

addition, certain qualified Carlyle professionals and other qualified individuals (including certain individuals who may not be

employees of the firm but who have pre-existing business relationships with Carlyle or industry expertise in the sector in which

a particular investment fund may be investing) are permitted, subject to certain restrictions, to invest alongside the investment

funds we sponsor and advise. Fees assessed or profit allocations on such investments by such persons may be eliminated or

substantially reduced.

Minimum general partner capital commitments to our investment funds are determined separately with respect to each

investment fund. We may, from time to time, exercise our right to purchase additional interests in our investment funds that

become available in the ordinary course of their operations. See Part II, Item 7 “Management’s Discussion and Analysis of

Financial Condition and Results of Operations—Liquidity and Capital Resources” for more information regarding our

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minimum general partner capital commitments to our funds. Our general partner capital commitments are funded with cash and

not with carried interest or through a management fee waiver program.

Employees

We believe that one of the strengths and principal reasons for our success is the quality and dedication of our people.

As of December 31, 2025, we employed more than 2,500 individuals, including 770 investment professionals, located in 27

offices across four continents.

Our Culture

Our employees around the globe are united by our culture, which is driven by our mission to invest wisely and create

value. We seek to achieve our mission and deliver value to our shareholders and other stakeholders by challenging the status

quo and leveraging diverse perspectives. In addition, we encourage our employees to leave their comfort zone and seek out a

leading edge while working with passion, creativity, and a relentless determination to deliver for our shareholders and other

stakeholders. We also seek to foster lateral working relationships across and beyond Carlyle while working as one team to drive

long-term value creation.

Our People

At Carlyle, our success hinges on leveraging opportunities to stay competitive in a complex, global investment

landscape and to be responsive to the needs of our clients. We are committed to growing and cultivating our top talent and

creating an environment that fosters and values the varied perspectives, backgrounds, experiences, and geographies of all our

employees and other stakeholders.

Inclusive Leadership. We seek to foster a culture where all of our employees feel that they belong and everyone can

excel. Inclusive leadership is one of our core leadership competencies, and all employees nominated for promotion to Managing

Director and Partner in 2025 were evaluated on their inclusive leadership and management skills. We also facilitate a global

mentorship program designed to foster professional growth by pairing less experienced employees with seasoned mentors.

Leadership Programs. Our tailored leadership development programs focus on strengthening the communication,

decision-making, and strategic thinking skills of our leaders to drive positive change and grow our competitive advantage.

Employee Resource Groups. Our employee resource groups are open to employees globally and are an integral part of

our culture, providing members with opportunities to expand their awareness, share ideas, build connections, and participate in

professional development.

Community and Industry Engagement. We seek to drive positive change in the communities in which we operate and

invest, including by supporting several organizations around the world that expand opportunity and access to our industry.

Compensation and Benefits

We believe that competitive compensation and incentive programs are critical to hiring and retaining highly qualified

people. We seek to provide a pay and benefits package that is competitive within the local marketplace for our industry to

reward and retain our employees and attract and retain talent. Compensation comprises a base salary for salaried employees and

compensation per hour for hourly employees in connection with satisfying the daily expectations of their roles. Our annual,

discretionary performance-based bonus program is a significant component of our compensation program and rewards

employees based on firm, segment, investment fund, department, and individual performance to directly align our employees

with our financial performance and strategic goals. To further align the interests of our employees with our shareholders and to

cultivate a strong sense of ownership and commitment to our firm, certain employees also are eligible to receive awards of

restricted stock units and/or participate in our other long-term incentive programs. In order to further drive the alignment of the

interests of our personnel with our shareholders and to improve retention of our personnel, pursuant to our bonus deferral

program, a portion of the performance-based bonuses for 2025 was paid to Carlyle professionals receiving bonuses over a

certain threshold in the form of a grant of restricted stock units that vests in installments over a period of three years. In

addition, during 2025, we awarded restricted stock units with performance-based vesting conditions to a select number of senior

Carlyle professionals that have the accountability to help us achieve our growth objectives. These units are highly aligned with

our shareholders as they only vest with share price appreciation.

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The success of our business is fundamentally connected to the well-being of our people. We are committed to our

employees’ health, safety, and wellness and seek to provide benefits that are locally relevant to our employees. For example,

our U.S. benefits programs include health and welfare benefits (including healthcare, dental benefits, and vision benefits,

among others), retirement offerings (including employer matching contributions, subject to eligibility requirements), an

Employee Assistance Program, family and caregiver-oriented benefits, and commuting benefits, among others. In addition, we

have various time-off policies for eligible employees for sick leave, vacation leave, personal days, paid holidays, and paid

parental leave. We also seek to provide strong benefits programs globally in line with local market practices.

Consistent with our guiding principle that building better businesses means investing responsibly and engaging in the

communities where we work and invest, we encourage our employees to get involved where they live, work, and invest through

our volunteer and wealth sharing programs. In 2025, more than 280 Carlyle employees gave over 500 philanthropic gifts, which

we matched. These gifts supported over 250 nonprofit organizations globally. Carlyle employees also put their time and

expertise to work through volunteer activities across our offices.

Sustainability

As a global organization dedicated to driving value, Carlyle has invested in a framework and the necessary resources

for understanding, monitoring, and managing material environmental, social, and governance (“ESG”) risks and opportunities

across our portfolio. We believe ESG integration provides an additional lens to help us assess and mitigate risks and identify

and capitalize on potential opportunities. Our ESG Policy outlines our approach to ESG integration and our resourcing, scope,

and investment application.

We prioritize governance, reporting, and transparency on material sustainability and ESG-related matters. We publish

an annual sustainability report, Task Force on Climate-related Financial Disclosures (TCFD) report, and corporate sustainability

disclosures, which utilize Global Reporting Initiative (GRI) Standards and provide an internationally recognized framework to

communicate sustainability and ESG matters to our various stakeholders.

With respect to our investments, we may track certain ESG key performance indicators (KPIs) that we consider

potentially relevant as drivers of risk mitigation and/or value creation across diverse geographies and assets for our corporate

private equity investments, including climate-related metrics.

Carlyle has an internal, dedicated Sustainability team with a breadth of experience to help identify critical ESG matters

in our investment processes, as well as a network of outside experts to support our investment teams to selectively go deeper on

important sustainability and ESG factors and identify potential growth opportunities for a given investment over our projected

investment periods. We believe our approach to sustainability may strengthen corporate strategy, bring new ideas for

operational efficiency, and help unlock financial value for certain portfolio companies.

Our Board of Directors has ultimate oversight of our firm’s approach to sustainability. The Board receives periodic

updates on our sustainability strategy and certain investment implications, and receives information on thematic topics, such as

our approach to climate risk and opportunity. The Nominating and Corporate Governance Committee of the Board, which takes

a leadership role in shaping our corporate governance, including our sustainability strategy, has appointed a member of the

Board to serve as the Sustainability Lead, responsible for oversight of the firm’s work in this area. In addition, Carlyle’s Co-

Heads of Sustainability are directly responsible for our climate strategy, with ultimate oversight from the firm’s Chief

Operating Officer.

Global Technology & Solutions

Global Technology & Solutions (“GTS”) is essential for Carlyle to conduct investment activities, manage internal

administration activities, and connect our global enterprise. As part of our GTS strategy and governance processes, we develop

and routinely refine our technology architecture and solutions to deliver value to our investors. Our systems, data, network, and

infrastructure are monitored and administered by formal controls and risk management processes that help protect the data and

privacy of our employees, investors, and other stakeholders. In addition, our business continuity plans are designed to allow

critical business functions to continue in an orderly manner in the event of a system outage. Our GTS team works closely with

our business segment teams to maintain operational resilience through business continuity planning and annual IT disaster

recovery and incident response plan testing, which collectively support the goal of mitigating risk were an emergency to occur.

Our Board of Directors oversees our enterprise risk management strategy, including our strategy on cybersecurity

risks, directly and through its committees. In this respect, the Audit Committee of the Board of Directors oversees our risk

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management program, which focuses on the most significant risks we face in the short-, intermediate-, and long-term

timeframe. Our Information Security Committee (“ISC”), which is chaired by our Chief Information Security Officer and

composed of senior representatives from our business, compliance, and risk management departments, monitors threats and

prioritizes the initiatives of our information security program. In addition, we seek to educate our employees on how to

safeguard Carlyle’s information assets through security awareness training focused on cyber risks, as well as simulated phishing

exercises that provide insight into the effectiveness of our security training. Employees serve an integral role in protecting

Carlyle’s data and attest to complying with various requirements both during onboarding and on an annual basis. See Item 1C

“Cybersecurity.”

Competition

As a global investment firm, we compete with a broad array of regional and global investment firms, as well as global

banking institutions and other types of financial institutions and markets, for employees, investors, and investment

opportunities. Generally, our competition varies across business lines, geographies, distribution channels, and financial markets.

We believe that our competition for investors is based primarily on investment performance, business relationships, the quality

of services provided to investors, reputation and brand recognition, pricing, market sentiment, and the relative attractiveness of

the particular opportunity in which a particular fund intends to invest. To stay competitive, we believe it also is important to be

able to offer fund investors a customized suite of investment products that enable them to tailor their investments across the

product offerings in our three global business segments. As we continue to target high net worth investors, we also face

competition for these investors from mutual funds and investment firms that have competing private wealth products. We

believe that competition for investment opportunities varies across business lines, but is generally based on industry expertise

and potential for value-add, pricing, terms, and the structure of a proposed investment and certainty of execution.

We generally compete with sponsors of public and private investment funds across all of our segments. In addition to

these traditional competitors, we increasingly have faced competition from local and regional firms, insurance and reinsurance

companies, sovereign wealth funds, family offices, and agencies and instrumentalities of governments in the various countries

in which we invest. This trend has been especially apparent in emerging markets, where local firms tend to have more

established relationships with the companies in which we are attempting to invest. Large institutional investors and sovereign

wealth funds increasingly have begun to develop their own in-house investment capabilities and may compete against us for

investment opportunities and greater reliance on advisory firms or in-house investment management may reduce fund of funds’

appeal to large institutional investors.

Within our GPE segment, our main competitors for investment opportunities are generally other private equity

sponsors, sovereign wealth funds, and operating companies acting as strategic acquirers, as well as real estate development

companies and other infrastructure investment business. In our Global Credit segment, our main competitors are private credit

strategies, business development companies, distressed debt funds, mezzanine funds, lessors of commercial aircraft,

infrastructure lenders, other CLO issuers, and asset-backed lenders. In our Carlyle AlpInvest segment, our main competitors are

other fund of funds managers and/or with advisers that are turning their business models towards discretionary investment

advisory services. As larger sovereign wealth funds and pension funds pursue direct commitments and secondary transactions,

our Carlyle AlpInvest funds may face increased competition for investments and co-investment opportunities.

Some of the entities that we compete with are substantially larger and have greater financial, technical, marketing, and

other resources and more personnel than we do. Many of our competitors also have recently raised, or are expected to raise,

significant amounts of capital and many of them have investment objectives similar to ours, which may create additional

competition for investment opportunities and investor capital. Some of these competitors also may have a lower cost of capital

and access to funding sources that are not available to us, which may create competitive disadvantages for us when sourcing

investment opportunities. In addition, some of our competitors may have higher risk tolerances, different risk assessments, or

lower return thresholds, which could allow them to consider a wider range of investments and to bid more aggressively than us

for investments. Strategic buyers also may be able to achieve synergistic cost savings or revenue enhancements with respect to

a targeted portfolio company, which we may not be able to achieve through our own portfolio, and this may provide them with

a competitive advantage in bidding for such investments.

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Regulatory and Compliance Matters

United States

Our businesses, as well as the financial services industry generally, are subject to extensive regulation in the United

States and elsewhere. In general, the SEC, Commodity Futures Trading Commission (the “CFTC”), and other regulators around

the globe have in recent years significantly increased their regulatory activities with respect to global investment firms.

Certain of our subsidiaries are registered as investment advisers with the SEC. Registered investment advisers are

subject to the requirements and regulations of the Advisers Act. Such requirements relate to, among other things, fiduciary

duties to advisory clients, maintaining an effective compliance program, solicitation agreements, conflicts of interest,

recordkeeping and reporting requirements, disclosure requirements, limitations on agency cross and principal transactions

between an adviser and advisory clients, and general anti-fraud prohibitions. In addition, our registered investment advisers are

subject to routine periodic and other examinations by the SEC staff. In accordance with our efforts to enhance our compliance

program and in response to recommendations received from the SEC in the course of such examinations, certain additional

policies and procedures have been put into place, but no material changes to our registered investment advisers’ operations have

been made as a result of such examinations. Certain of our investment advisers also are subject to limited SEC disclosure

requirements as “exempt reporting advisers.”

TCG Capital Markets L.L.C. (“TCG Capital Markets”) is Carlyle’s affiliated U.S. broker-dealer entity. TCG Capital

Markets is registered as a broker-dealer with the SEC and in 50 states, the District of Columbia, the Commonwealth of Puerto

Rico, and the Virgin Islands, and is a member of the Financial Industry Regulatory Authority (“FINRA”). In addition, TCG

Capital Markets operates under an international dealer exemption in the Canadian provinces of Alberta, British Columbia,

Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Quebec, and Saskatchewan. TCG Capital

Markets may act as an underwriter, syndicator, or placement agent in securities offerings and TCG Senior Funding L.L.C. may

act as an underwriter, originator, syndicator, or placement agent for loan originations. TCG Capital Markets also conducts U.S.-

based marketing and fundraising activities for our Global Private Equity, Global Credit, and Carlyle AlpInvest business lines,

and houses our anti-money laundering compliance function.

Registered broker-dealers are subject to routine periodic and other examinations by the staff of FINRA and the SEC.

No material changes to our broker-dealer operations have been made as a result of such examinations.

Broker-dealers are subject to rules relating to transactions on a particular exchange and/or market, and rules relating to

the internal operations of the firms and their dealings with customers including, but not limited to, the form or organization of

the firm, qualifications of associated persons, officers and directors, net capital and customer protection rules, books and

records, and financial statements and reporting. In particular, as a result of its registered status, TCG Capital Markets is subject

to the SEC’s uniform net capital rule, Rule 15c3-1 under the Securities Exchange Act of 1934, as amended (the “Exchange

Act”), which specifies both the minimum level of net capital a broker-dealer must maintain relative to the scope of its business

activities and net capital liquidity parameters. The SEC and FINRA require compliance with key financial responsibility rules,

including maintenance of adequate funds to meet expenses and contractual obligations, as well as early warning rules that

compel notice to the regulators via accelerated financial reporting anytime a firm’s capital falls below the minimum required

level. The uniform net capital rule limits the amount of qualifying subordinated debt that is treated as equity to a specific

percentage under the debt-to-equity ratio test, and further limits the withdrawal of equity capital, which is subject to specific

notice provisions. Moreover, compliance with net capital rules may limit a firm’s ability to expand its operations, particularly to

those activities that require the use of capital. Violation of the net capital rule may result in censures, fines, the issuance of

cease-and-desist orders, revocation of licenses or registrations, the suspension or expulsion from the securities industry of the

broker-dealer or its officers or employees, or other similar consequences by regulatory bodies. To date, TCG Capital Markets

has not had any capital adequacy issues and is currently capitalized in excess of the minimum maintenance amount required by

regulators.

Carlyle Global Credit Investment Management L.L.C. (“CGCIM”), a subsidiary of Carlyle, serves as the investment

adviser to certain closed-end investment companies that have elected to be regulated as BDCs under the Investment Company

Act (as well as to certain private funds and other clients). Accordingly, these BDCs are subject to all relevant provisions under

the Investment Company Act as registered investment companies. In addition, CGCIM serves as the investment adviser to

CTAC and CCIF, each of which is regulated as a registered investment company under the Investment Company Act.

Moreover, AlpInvest Private Equity Investment Management, LLC, a subsidiary of Carlyle, serves as the investment adviser to

CAPM and CAPS, each of which is regulated as a registered investment company under the Investment Company Act. CGCIM

also serves as a sub-adviser to CAPM and CAPS.

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United Kingdom and the European Union

Similar to the United States, jurisdictions outside the United States in which we operate, in particular Europe, have

become subject to an expanding body of regulation, some of which is complex and prescriptive. Governmental regulators and

other authorities in Europe have proposed or implemented a number of initiatives and additional rules and regulations that could

adversely affect our business. These include rules and regulations in the United Kingdom (“UK”) that are applicable to our

subsidiaries established in the UK, as well as, or in addition to, rules and regulations implemented under European Union

(“EU”) directives or regulations, which generally have application throughout the European Economic Area (“EEA”) but may

also have substantive differences among EU countries as they are implemented pursuant to each member state’s legislative

process.

In the UK, the principal legislation regulating financial services is the Financial Services and Markets Act 2000 (the

“FSMA”) and the principal European pieces of legislation affecting the conduct of our business in the EU is implemented under

the Markets in Financial Instruments Directive (“MiFID”) and the Alternative Investment Fund Managers Directive

(“AIFMD”), although there are also a number of other pieces of legislation both in the UK and the EU that affect our business,

such as the General Data Protection Regulation (and its UK equivalent). The FSMA rules and EU laws that have either been

assimilated into UK law in connection with the UK’s withdrawal from the EU (e.g., the Markets in Financial Instruments

Regulation) or already implemented in the UK through domestic legislation or regulatory rules prior to such withdrawal (e.g.,

MiFID and AIFMD), comprehensively regulate the provision of most aspects of our asset management and advisory business in

the UK, including sales, research and trading practices, provision of investment advice, corporate finance, dealing, use and

safekeeping of client funds and securities, record keeping, margin practices and procedures, anti-money laundering, periodic

reporting, settlement procedures, securitization, derivative trading, prudential capital requirements, data protection, and interest

rate benchmarks. Legislation not yet in effect and future legislative initiatives will impact our business. See Item 1A “Risk

Factors—Risks Related to Regulation and Litigation—Regulatory initiatives in jurisdictions outside the United States could

adversely affect our business.”

CECP Advisors LLP (“CECP”), one of our subsidiaries in the UK, is authorized under the FSMA and regulated by the

Financial Conduct Authority (the “FCA”). CECP has permission to undertake certain investment advisory and related activities

in the UK—broadly these are advising on, and arranging deals in relation to, certain types of investments. CECP is only

permitted to carry out these activities in relation to eligible counterparties and professional clients.

CELF Advisors LLP (“CELF”), another one of our subsidiaries in the UK, also is authorized and regulated by the

FCA, but has permission to undertake a broader range of regulated activities than CECP, namely, arranging deals in

investments, advising on investments, managing investments, dealing in investments as agent, and arranging for the

safeguarding and administration of assets. CELF is only permitted to carry out these activities in relation to eligible

counterparties and professional clients.

In April 2024, the AlpInvest Partners LLP (“AlpInvest UK”) application for authorization was approved by the FCA.

AlpInvest UK now is authorized and regulated by the FCA with permission to carry on investment advisory and related

activities, including advising on and arranging deals in relation to certain types of investments in relation to eligible

counterparties and professional clients.

In 2022, we acquired Abingworth LLP (“Abingworth”), which is authorized and regulated by the FCA, with

permissions for establishing, operating, or winding up a collective investment scheme, and managing an unauthorized AIF.

Also in 2022, CECP appointed CIC Advisors LLP (“CIC”) as an appointed representative. Under the arrangement,

CECP, as the principal of CIC, has accepted regulatory responsibility for CIC of carrying out the activities of advising on

investments and arranging deals in investments. Under the appointed representative arrangement, CIC is only permitted to carry

out these activities in relation to eligible counterparties and professional clients.

Certain of our European subsidiaries are subject to compliance requirements in connection with AIFMD, which

regulates alternative investment fund managers (“AIFMs”) established in the EEA that manage alternative investment funds

(“AIFs”). In the UK, an assimilated version of the AIFMD exists. The AIFMD also regulates and imposes regulatory

obligations in respect of the marketing in the EEA by AIFMs (whether established in the EEA or elsewhere) of AIFs (whether

established in the EEA or elsewhere). Currently, Carlyle has three authorized AIFMs in the EEA: AlpInvest Partners B.V.

(“AlpInvest BV”), CIM Europe S.a.r.l. (“CIM Europe”), and Carlyle Real Estate SGR S.p.A. In the UK, Abingworth is

authorized under the UK’s assimilated version of AIFMD.

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The AIFMD imposes significant regulatory requirements on AIFMs. The AIFMD regulates fund managers by, among

other things, prescribing authorization conditions for an AIFM, restricting the activities that can be undertaken by an AIFM,

prescribing the organizational requirements, operating conditions, and regulatory standards relating to such things as initial

capital, remuneration, conflicts, risk management, leverage, liquidity management, delegation of duties, transparency, and

reporting requirements. The AIFMD has the potential to restrict Carlyle’s fund marketing strategy and places additional

compliance obligations on its authorized AIFMs in the form of, among other things, remuneration policies, capital

requirements, reporting requirements, leverage oversight, and liquidity management.

Authorized AIFMs are entitled to market their AIFs throughout the EEA under a marketing passport. Under the

AIFMD, an AIFM may, in addition to its fund management activity, be authorized to provide certain investment services that

would otherwise require authorization under MiFID. Authorization under the AIFMD is currently available only to EEA fund

managers. AlpInvest BV obtained authorization as an AIFM from the Authority for Financial Markets in the Netherlands (the

“AFM”) in 2015. AlpInvest BV also is licensed by the AFM to provide some of the additional investment services that are

otherwise generally reserved to MiFID firms. CIM Europe obtained authorization as an AIFM in Luxembourg from the

Commission de Surveillance du Secteur Financier (“CSSF”) in early 2018. CIM Europe also was licensed by the CSSF in

October 2024 to provide additional MiFID investment services under its license. Carlyle Real Estate SGR S.p.A. registered at

the Bank of Italy’s AIFM register under no.127 in 2014.

The AIFMD allows member states to permit marketing within their member state by non-EEA fund managers (under

what are known as national private placement regimes), provided the local law imposes certain minimum requirements.

Member states may impose more stringent requirements. At present, some EEA states have chosen not to operate a national

private placement regime at all, some EEA states apply the minimum requirements, others require the minimum plus a few

additional requirements (e.g., the appointment of a depository), and some require compliance with substantially all of the

AIFMD. The UK also operates a national private placement regime under AIFMD, as assimilated into UK law post-Brexit.

Certain of Carlyle’s funds currently are offered in selected member states of the EEA and UK in accordance with the national

private placement regimes of the relevant jurisdiction.

On March 26, 2024, a directive amending the AIFMD, commonly referred to as “AIFMD II,” was published in the

Official Journal. Most of the changes will come into effect from April 16, 2026, subject to some grandfathering periods for

certain requirements. AIFMD II imposes a number of amendments to the AIFMD, including more onerous delegation

transparency requirements, enhanced substance requirements, additional liquidity management provisions for AIFMs to the

extent that they manage open-end AIFs, and revised regulatory reporting and investor disclosures requirements. It also imposes

significant new requirements relating to the activities of funds that originate loans (which may affect a number of our funds),

including new restrictions on the structure that such funds may take and leverage limits for funds with material loan origination

activities.

In addition, AIFMD II introduces new conditions for non-EEA AIFMs, such as certain of our U.S. affiliates, to be able

to make use of the national private placement regimes of EEA states, including a condition that the jurisdiction(s) of the AIFM

and any relevant AIF(s) have not been identified as non-cooperative third countries for tax purposes nor deemed by the EU not

to comply fully with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and

thereby to ensure an effective exchange of information in tax matters. This gives rise to a risk that certain of our AIFs may not

be able to take advantage of such regimes to raise capital from EEA investors, potentially with little notice. Given the

significance of AIFMD II as well as its potential impact on the European fund industry framework, we continue to consider its

potential impact on our business. Compliance with AIFMD II may, among other things, increase the cost and complexity of

raising capital, may slow the pace of fundraising, limit operations, increase operational costs, and disadvantage our investment

funds as bidders for and potential owners of private companies located in the EEA when compared to non-AIF/AIFM

competitors. Although the changes in AIFMD II will not be directly replicated in UK legislation, the FCA and HM Treasury are

progressing with their own reforms to the UK’s domestic version of AIFMD in 2026, the full impacts of which to Carlyle’s

business are not yet known.

In August 2021, Directive (EU) 2019/1160 and Regulation (EU) 2019/1156 (the “Cross-Border Marketing Rules”)

came into force in the European Union. The Cross-Border Marketing Rules were introduced to streamline certain aspects of

marketing investment funds by harmonizing the ability for EU AIFMs to distribute AIFs across the EU, including by

introducing a new regime for “pre-marketing.” These regulations also imposed restrictions and obligations on fund managers

that are pre-marketing their funds in the European Union. Moreover, some EU member states (but not all) also apply certain of

the Cross-Border Marketing Rules to non-EU fund managers (including UK and U.S. fund managers) in relation to the process

of marketing and /or pre-marketing funds. Accordingly, our ability to distribute our funds in the European Union will vary from

country to country notwithstanding this pan-EU regulation.

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AIFMD and the Cross-Border Marketing Rules are subject to further potential change, following a broad package of

draft proposals, published by the European Commission on December 4, 2025, known collectively as the “Market Integration

Package” (the “MIP”). The MIP proposals are aimed at harmonizing key obligations that affect market participants operating in

the EU, including marketing and pre-marketing, cross border management of AIFs, delegation and operating requirements, and

investor disclosures and reporting. These proposals are expected to come into effect, at the earliest, in the second half of 2027

and could impact the operating requirements of EU AIFMs, including CIM Europe and AlpInvest BV, with respect to potential

rules of conduct and prudential rules.

As outlined above, certain of our European subsidiaries, notably CECP, CELF, CIC, and AlpInvest UK, must comply

with the regulatory framework established by MiFID (as assimilated into UK law), which regulates the provision and conduct

of investment services and activities throughout the EEA. Certain aspects of MiFID also apply to AlpInvest BV and CIM

Europe by virtue of their MiFID “top-up” permissions as part of their AIFMD authorizations and to CIM Advisors France SAS

by virtue of being a “tied agent” of CIM Europe. MiFID prescribes detailed requirements governing the organization and

business conduct of investment firms, regulated markets, and certain other entities such as credit institutions to the extent they

perform investment services or activities.

The latest iteration of MiFID, Directive 2014/65/EU (“MiFID II”), together with the accompanying Regulation (EU)

No 600/2014 (the “Markets in Financial Instruments Regulation” or “MiFIR”), extended the MiFID requirements in a number

of areas and requires investment firms to comply with more prescriptive and onerous obligations in relation to such things as:

costs and charges disclosure, product design and governance, the receipt and payment of inducements, the receipt of and

payment for investment research, suitability and appropriateness assessments, conflicts of interest, record-keeping, best

execution, transaction and trade reporting, remuneration, training and competence, and corporate governance. Failure to comply

with MiFID II and its associated legislative acts could result in sanctions from national regulators, the loss of market access,

and a number of other adverse consequences, which would have a detrimental impact on our business. Although the UK

withdrew from the EU, its rules implementing MiFID continue to have effect and MiFIR has been assimilated into UK law

(subject to certain amendments to ensure it operates properly in a UK-specific context) in connection with this withdrawal. The

EU has continued to introduce amendments to MiFID II. For example, in August 2022, EU MiFID firms providing financial

advice and portfolio management had to carry out a mandatory assessment of the sustainability preferences of their clients.

Broadly, sustainability preferences address taxonomy alignment, Sustainable Finance Disclosure Regulation (“SFDR”)

sustainable investment alignment, and consideration of principal adverse impacts. EU MiFID firms must take these into account

in the selection process of financial products. Further changes are expected to MiFID II and SFDR.

The UK introduced a prudential regulatory framework for UK investment firms (the “Investment Firm Prudential

Regime” or the “IFPR”), which is closely based on an equivalent regulatory framework introduced at the EU-level through the

EU Investment Firm Regulation and Investment Firm Directive (together, “IFR/IFD”). The IFPR took effect from January 1,

2022, and applies to our subsidiaries that are UK investment firms under MiFID II, namely CECP, CELF, and AlpInvest UK.

Under the IFPR, among other requirements, CECP, CELF, and AlpInvest UK are required to maintain a more onerous policy

on remuneration, set an appropriate ratio between the variable and fixed components of total remuneration, and meet

requirements on the structure of variable remuneration. These requirements may make it more difficult for us to attract and

retain staff in certain circumstances. Importantly, the broad discretion for UK firms that used to be available to disapply certain

remuneration rules on the basis of “proportionality” does not apply in relation to IFPR. Under IFPR, CECP, CELF, and

AlpInvest UK are each required to also make public disclosures on their websites in relation to their (i) own funds, own funds

requirements, and governance structures, (ii) risk management, and (iii) remuneration, including quantitative information on

remuneration paid to staff. IFPR has resulted in increased regulatory capital and liquidity adequacy requirements for CECP, in

particular, and may continue to increase the costs of doing business and may impede intra-group capital and cash flows. The

FCA is reviewing further changes to prudential requirements and remuneration, which are likely to be relevant to UK

investment firms under MiFID II, including CECP, CELF, and AlpInvest UK.

In the EU, IFR/IFD took effect from June 26, 2021, and represented a complete overhaul of “prudential” regulation in

the EU and substantially increased regulatory capital requirements for certain investment firms and imposed more onerous

remuneration rules, and revised and extended internal governance, disclosure, reporting, liquidity, and group “prudential”

consolidation requirements, among other things. IFR/IFD affects AlpInvest BV, one of our subsidiaries, because it is an AIFM

in the Netherlands with top-up permissions to provide investment services. In particular, as AlpInvest BV’s AUM attributable

to separate accounts regulated by MiFID II increases so will AlpInvest BV’s regulatory capital and liquidity adequacy

requirements, which may increase the costs of doing business and may impede intra-group capital and cash flows. It is possible

that in the future, CIM Europe also may have to comply with IFR/IFD in relation to its MiFID top-up permissions; however,

Luxembourg does not currently apply the regime to AIFMs with MiFID top-ups.

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The UK introduced an important and substantial regime, the “Consumer Duty,” designed to improve outcomes for

individual investors, which fully began to apply in July 2024 for both funds that were still open to investment and those that had

already held their final close. Although Carlyle entities do not generally deal with consumers in the ordinary sense, the regime

may apply to certain of our funds unless Carlyle can rely on an important exemption from the regime for products with certain

minimum denomination. This exemption has been called into question by the FCA previously but continues to be available to

asset managers of investment funds. If removed, this could make the impact of the Consumer Duty more significant and

widespread and have important implications for Carlyle entities if they are unable to rely on another exemption. We intend to

continue to work closely with external counsel and advisors to monitor any developments.

Other Jurisdictions

Certain of our subsidiaries are subject to registration and compliance with laws and regulations of non-U.S.

governments, their respective agencies, and/or various self-regulatory organizations or exchanges relating to, among other

things, investment advisory services and the marketing of investment products, and any failure to comply with these regulations

could expose us to liability and/or damage our reputation. Certain of our private funds also are required to comply with the

trading and disclosure rules and regulations of non-U.S. securities regulators.

The Organization for Economic Cooperation and Development (the “OECD”) has developed Common Reporting

Standard (“CRS”) rules for the automatic exchange of FATCA-like financial account information amongst OECD

member states. Like FATCA, CRS imposes certain due diligence, documentation, and reporting requirements on various

Carlyle entities. While CRS does not contain a potential withholding requirement, noncompliance could subject Carlyle to

certain reputational harm and potential financial penalties.

Carlyle Hong Kong Equity Management Limited is licensed by the Hong Kong Securities and Futures Commission to

carry on Type 1 (dealing in securities) regulated activity in respect of professional investors.

Carlyle Asia Limited is licensed by the Hong Kong Securities and Futures Commission to carry on Type 1 (dealing in

securities) and Type 4 (advising on securities) regulated activities in respect of professional investors.

AlpInvest Partners Limited is licensed by the Hong Kong Securities and Futures Commission to carry on Type 4

(advising on securities) regulated activity in respect of professional investors.

Carlyle Mauritius Investment Advisor Limited and Carlyle Mauritius CIS Investment Management Limited are

licensed providers of investment management services in the Republic of Mauritius and are subject to applicable Mauritian

securities laws and the oversight of the Financial Services Commission. Carlyle Mauritius Investment Advisor Limited holds a

“Foreign Institutional Investor” license from the Securities and Exchange Board of India, which entitles this entity to engage in

limited activities in India. Carlyle Mauritius CIS Investment Management Limited holds a “Qualified Foreign Institutional

Investor” license from the China Securities Regulatory Commission, which entitles this entity to invest in certain permitted

financial instruments (including equity) and derivatives traded or listed on exchanges in the People’s Republic of China.

Carlyle Australia Equity Management Pty Limited is licensed by the Australian Securities and Investments

Commission as an Australian financial services licensee and is authorized to carry on a financial services business to provide

advice on and deal in financial products (managed investment schemes and securities) for wholesale clients.

Carlyle Japan Equity Management LLC (“CJEM”) is registered with the Financial Services Agency of Japan to carry

out Type II Financial Instruments Business as a Financial Instruments Business Operator and it is also a member of the Type II

Financial Instruments Firms Association, a self-regulatory organization in Japan. Pursuant to this registration, CJEM is

permitted to perform marketing activities to, and private placements for, specified investors with respect to interests in a limited

partnership.

Carlyle Japan, LLC (“CJLLC”) is registered with the Financial Services Agency of Japan to carry out Investment

Advisory and Agency Business as a Financial Instruments Business Operator and it is also a member of Japan Investment

Advisers Association, a self-regulatory organization in Japan. Pursuant to this registration, CJLLC is permitted to carry out

investment advisory and agency business as defined by the Financial Instruments and Exchange Act of Japan.

Carlyle MENA Investment Advisors Limited, a company limited by shares in the Dubai Financial Centre, holds a

Category 3C license issued by the Dubai Financial Services Authority and is authorized to arrange credit or deal in investments,

advise on financial products or credit, and manage collective investment funds.

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Carlyle MENA Advisors Limited, a company limited by shares in the Abu Dhabi Global Market, is authorized by the

Abu Dhabi Financial Services Regulatory Authority and is authorized to arrange deals in investments, advise on investments or

credit, and manage collective investment funds.

Carlyle Singapore Investment Advisors Pte Limited holds a capital markets license and an exempt financial adviser

status with the Monetary Authority of Singapore to carry on fund management and dealing in regulated capital market products

activities in respect of institutional and accredited investors.

AlpInvest Partners Pte Limited holds a capital markets license with the Monetary Authority of Singapore to carry on

fund management activities in respect of institutional and accredited investors.

Carlyle Real Estate SGR S.p.A. holds an authorization from the Bank of Italy to carry on AIFMD-compliant fund

management and real estate activities. It is registered at the Bank of Italy’s AIFM register under no.127.

Carlyle Investments (Canada) Corporation, formerly Diversified Global Asset Management Corporation, holds an

exempt market dealer license with Ontario Securities Commission to facilitate certain Carlyle fund marketing activities in

Canada.

AlpInvest is registered as a cross-border discretionary investment management company with the Financial

Supervisory Service of South Korea.

Carlyle CLO Management LLC is registered as a cross-border discretionary investment management company with

the Financial Supervisory Service of South Korea.

An investment fund advised by us holds an indirect controlling interest in Fortitude Re and Fortitude International

Reinsurance Ltd. (“Fortitude International Re”), Bermuda companies registered as a Class 4 and Class E insurers. Fortitude Re

and Fortitude International Re are subject to regulation and supervision by the Bermuda Monetary Authority (the “BMA”) and

compliance with all applicable Bermuda law and Bermuda insurance statutes and regulations, including but not limited to the

Insurance Act of 1978 (Bermuda) and the rules and regulations promulgated thereunder (the “Bermuda Insurance Act”). In

addition, as a result of ownership of Fortitude by our investment fund, certain Carlyle affiliates that serve as general partner and

investment advisor to the fund are subject to certain insurance laws and regulations in Bermuda as a “controller” of Fortitude

Re and Fortitude International Re under the Bermuda Insurance Act. These laws and regulations include certain notice

requirements for any person that has become, or as a result of a disposition ceased to be, a shareholder controller of a registered

insurer, and failure to comply with such requirements is an offense punishable by law.

In addition, we and/or our affiliates and subsidiaries may become subject to additional regulatory demands in the

future to the extent we expand our investment advisory business in existing and new jurisdictions. There are also a number of

pending or recently enacted legislative and regulatory initiatives in the United States and around the world that could

significantly impact our business. See Item 1A “Risk Factors—Risks Related to Regulation and Litigation—Extensive

regulation of our business affects our activities and creates the potential for significant liabilities and penalties, and could result

in additional burdens on our business,” “Financial regulations and changes thereto in the United States could adversely affect

our business and the possibility of increased regulatory focus could result in additional burdens and expenses on our business,”

and “Regulatory initiatives in jurisdictions outside the United States could adversely affect our business.”

Our businesses have operated for many years within a framework that requires our being able to monitor and comply

with a broad range of legal and regulatory developments that affect our activities, and we take our obligation to comply with all

such laws, regulations, and internal policies seriously. Our reputation depends on the integrity and business judgment of our

employees, and we strive to maintain a culture of compliance throughout the firm. We have developed, and adhere to,

compliance policies and procedures such as codes of conduct, compliance systems, education, and communication of

compliance matters. These policies focus on matters such as insider trading, anti-corruption, document retention, conflicts of

interest, anti-money laundering, and other matters. Our legal and compliance team monitors our compliance with all of the legal

and regulatory requirements to which we are subject and manages our compliance policies and procedures. Our legal and

compliance team also monitors the information barriers that we maintain to restrict the flow of confidential information,

including material non-public information, across our business. Our enterprise risk management function analyzes our

operations and investment strategies to identify key risks facing the firm and works closely with the legal and compliance team

to address them. The firm also has an independent and objective Internal Audit department that employs a risk-based audit

approach that focuses on Sarbanes-Oxley compliance, enterprise risk management functions, and other areas of perceived risk

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and aims to give management and our Board of Directors reasonable assurance that our risks are well-managed, and controls

are appropriate and effective.

Website, Social Media Disclosure, and Availability of SEC Filings

Our website address is www.carlyle.com. We make available free of charge on our website or provide a link on our

website to our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and any

amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably

practicable after those reports are electronically filed with, or furnished to, the SEC. To access these filings, go to the “SEC

Documents” portion of our “Shareholders” page on our website. You also may access the reports and other documents we file

with the SEC at a website maintained by the SEC at www.sec.gov.

We use our website (www.carlyle.com), our corporate Facebook page (www.facebook.com/onecarlyle), our corporate

X account (@OneCarlyle or www.x.com/onecarlyle), our corporate Instagram account (@onecarlyle or www.instagram.com/

onecarlyle), our corporate LinkedIn account (www.linkedin.com/company/the-carlyle-group), our corporate YouTube channel

(www.youtube.com/user/onecarlyle), and our corporate WeChat account (ID: gh_3e34f090ec20) as channels of distribution of

material company information. For example, financial and other material information regarding our company is routinely

posted on and accessible at www.carlyle.com. Accordingly, investors should monitor these channels, in addition to following

our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive email

alerts and other information about Carlyle when you enroll your email address by visiting the “Email Alerts” section at http://

ir.carlyle.com/email-alerts. The contents of our website and social media channels are not, however, a part of this Annual

Report on Form 10-K and are not incorporated by reference herein.