The spike in **Cash and cash equivalents held at Consolidated Funds** in Q2 2024 was primarily due to **changes in the cash flows related to the Consolidated Funds**. Specifically, the funds increased from **$426.0 million** as of March 31, 2024, to **$1,047.5 million** as of June 30, 2024, with a net inflow of **$(701.7) million** during that period, indicating a significant cash inflow into the Consolidated Funds during Q2 2024.  **[0001527166-24-000067_cg-20240630.htm:6]** **[0001527166-24-000067_cg-20240630.htm:9]** 

Why did Cash and cash equivalents held at Consolidated Funds spike in Q2 2024?

The jump in Total assets in Q3 2024 was driven primarily by a **significant increase in investments**—including accrued performance allocations—as well as noticeable rises in other asset categories. Specifically, investments grew substantially from **$9,955.3 million to $11,095.0 million**. There were also improvements in items such as **due from affiliates and other receivables**, which increased from **$691.6 million to $757.2 million**, **lease right-of-use assets** rising from **$332.2 million to $353.6 million**, and **deferred tax assets** increasing from **$16.5 million to $22.5 million**. Additionally, the slight decrease in traditional cash and cash equivalents was somewhat offset by an increase in cash held at consolidated funds—from **$346.0 million to $488.5 million**, collectively contributing to the overall asset growth in Q3 2024.  **[0001527166-24-000079_cg-20240930.htm:7]** 

What drove the jump in Total assets in Q3 2024?

In Q3 2024, the decline in Debt obligations was primarily driven by a **reduction in CLO Borrowings** (from **$431.7 million** at the end of 2023 to **$358.7 million**), alongside only **minor adjustments in other debt instruments**—such as a slight increase in the carrying value of the **3.500% Senior Notes due 2029** and the **4.625% Subordinated Notes due 2061**—and the fact that the company made **no borrowings under its Senior Credit Facility or Global Credit Revolving Credit Facility** during this period.  **[0001527166-24-000079_cg-20240930.htm:51]** 

What factors contributed to the decline in Debt obligations in Q3 2024?

The sharp increase in Q3 2024 was primarily driven by a **27% rise** in accrued performance allocations—from **$6,169.9 million** at the end of 2023 to **$7,210.8 million**—which largely reflected portfolio appreciation, particularly in the **Global Private Equity** segment and related fund activities. In addition, heightened investment activity (with purchases reaching **$5.0 billion** over nine months compared to **$2.3 billion** in the prior period) and strategic actions combined with strong market momentum over the past 18 months further propelled this significant growth.  **[0001527166-24-000079_cg-20240930.htm:45]** **[0001527166-24-000079_cg-20240930.htm:7]** **[0001527166-24-000079_cg-20240930.htm:138]** **[0001527166-24-000079_cg-20240930.htm:143]** **[0001527166-24-000076_cg202409308-kexx991.htm:0]** 

Why did Investments increase sharply in Q3 2024?

The drop in **retained earnings** in Q4 2023 was primarily driven by a **net loss of $(608) million**—which was largely attributed to a **one-time $1.1 billion charge** for an employee compensation program realignment—and was further compounded by **dividend payments** of **$1.40 per share** that reduced the retained earnings even more.  **[0001527166-24-000019_cg-20231231.htm:274]** **[0001527166-24-000011_cg202312318-kexx992edgar.htm:3]** **[0001527166-24-000011_cg202312318-kexx991.htm:0]** 

What led to the drop in Retained earnings in Q4 2023?

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The spike in **Total Revenues** for Q3 2024 was primarily driven by a dramatic turnaround in **performance allocations**, which jumped from a negative **$118.3 million** in Q3 2023 to **$1,785.5 million** in Q3 2024. Additionally, moderate improvements in **fund management fees**, **incentive fees**, and a slight increase in **interest and other income** contributed to the overall surge, while a minor decrease in **principal investment income** had less of an impact on the total. This combination of factors, particularly the turnaround in performance allocations, was the key reason behind the dramatic revenue increase.  **[0001527166-24-000079_cg-20240930.htm:78]** **[0001527166-24-000079_cg-20240930.htm:104]** **[0001527166-24-000079_cg-20240930.htm:130]** 

Why did Total Revenues spike in Q3 2024?

The **significantly low Net Income** in Q4 2023 was primarily due to a large, **one-time compensation realignment charge of $1.1 billion** that had an immediate and substantial negative effect on profitability. Additionally, the quarter experienced a **decline in performance revenues** and a **77% drop in principal investment income** (from **$570.5 million in FY 2022 to $133.4 million in FY 2023**), while **compensation and benefits expenses increased by 23%**. These factors together resulted in a marked negative adjustment in net income for Q4 2023.  **[0001527166-24-000011_cg202312318-kexx992edgar.htm:3]** **[0001527166-24-000011_cg202312318-kexx991.htm:0]** **[0001527166-24-000011_cg202312318-kexx992edgar.htm:9]** **[0001527166-24-000019_cg-20231231.htm:353]** **[0001527166-24-000019_cg-20231231.htm:207]** 

Why was Net Income so low in Q4 2023?

The surge in **Performance Allocations** in Q3 2024 was primarily driven by several factors. **Appreciation in the carry fund portfolio**, particularly within the U.S. buyout funds, played a key role. Additionally, within the **Global Private Equity segment**, there was significant contribution from the appreciation in funds such as the **CP VII**, with further contributions from the **CP VIII** and **CAP V** funds, although partially offset by reversals in the CEP V and CP VI funds. The **Global Credit** segment also contributed through appreciation in credit opportunities funds, while the **Global Investment Solutions** segment saw gains from secondaries & portfolio finance and co-investment strategies.  **[0001527166-24-000076_cg202409308-kexx992edgar.htm:4]** **[0001527166-24-000079_cg-20240930.htm:106]** 

What drove the surge in Performance Allocations in Q3 2024?

The significant jump in **Compensation and Benefits** in Q4 2023 was primarily driven by a **one-time $1.1 billion charge** related to the realignment of the company's employee compensation program, which increased the proportion of performance allocation revenue used for employee compensation, shifting the model toward a success-based approach. Additionally, the increase in **equity-based compensation** by **$95.1 million** and higher **performance allocations and incentive fee-related compensation** of **$383.8 million** further contributed to the overall rise in costs.  **[0001527166-24-000019_cg-20231231.htm:211]** **[0001527166-24-000011_cg202312318-kexx992edgar.htm:3]** **[0001527166-24-000019_cg-20231231.htm:324]** **[0001527166-24-000019_cg-20231231.htm:207]** **[0001527166-24-000019_cg-20231231.htm:211]** 

Why did Compensation and Benefits jump in Q4 2023?

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The sharp increase in Q3 2024 operating cash flow was mainly driven by a **significant rise in net income**—from **$173.6 million in Q3 2023** to **$863.8 million in Q3 2024**—which contributed heavily to higher operating inflows. Additionally, **non-cash adjustments** (including elevated equity-based compensation and shifts in performance allocations), together with notable changes in **consolidated funds activity**, reductions in **deferred revenue**, and adjustments in **working capital components** (such as accounts payable and accrued expenses), also played a key role in this improvement.  **[0001527166-24-000079_cg-20240930.htm:12]** 

What drove the sharp increase in Operating Cash Flow in Q3 2024?

The large jump in **non-cash performance allocations and incentive fees** in Q4 2023 was primarily driven by a **one-time charge of $1.1 billion**. This charge resulted from the **realignment of the employee compensation program**, which increased the use of accrued performance allocations for compensation and became effective on **December 31, 2023**.  **[0001527166-24-000011_cg202312318-kexx992edgar.htm:24]** **[0001527166-24-000011_cg202312318-kexx992edgar.htm:2]** 

What caused the large jump in non-cash performance allocations in Q4 2023?

The sharp decline in Q4 2023 net income was driven primarily by a **one-time $1.1 billion non-cash GAAP charge** related to a realignment of the company's employee compensation program, which significantly impacted reported earnings, resulting in a net loss attributable to common shareholders of **$(692) million** for the quarter. Additionally, the negative effect was compounded by a **substantial decline in performance revenues**—falling from **$1,327.5 million in 2022** to **$(88.6) million in 2023**—further contributing to the negative net income.  **[0001527166-24-000011_cg202312318-kexx992edgar.htm:3]** **[0001527166-24-000011_cg202312318-kexx992edgar.htm:8]** **[CG_3372196_3]** **[0001527166-24-000019_cg-20231231.htm:353]** **[0001527166-24-000019_cg-20231231.htm:207]** 

Why did Net Income turn so negative in Q4 2023?

The steep decline in deferred taxes in Q4 2023 was primarily driven by updates to the current and deferred tax balances related to the filing of the company’s 2022 tax returns. These revisions led to significant adjustments in the valuation allowance and other tax-related items, with a gross impact of **1.36%** and **(0.86%)** on the effective tax rate, respectively.  **[0001527166-24-000019_cg-20231231.htm:337]** 

What led to the steep decline in deferred taxes in Q4 2023?

The surge in net borrowings in Q2 2024 was primarily driven by a significant increase in borrowings by the Consolidated Funds. In the six months ended June 30, 2024, borrowings totaled **$3,546.9 million**, compared to **$869.8 million** in the same period in 2023. This increase in borrowings was only partially offset by paydowns and sales of loans, resulting in net borrowings of **$1,328.5 million** compared to **$876.1 million** in the previous year.  **[0001527166-24-000067_cg-20240630.htm:38]** **[0001527166-24-000067_cg-20240630.htm:9]** **[0001527166-24-000067_cg-20240630.htm:140]** 

What explains the surge in net borrowings in Q2 2024?

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74063fcf7ce68000cb03b0d4314c4529f9e7e5fe6a79ccf142a1d6af24b64ac5

ea6cc2c445410942fb102d63b4f891d5916d9259c5aa0b856cd8b1d737b6adb9

Total Revenues (USD, millions)

Fund Management Fees (USD, millions)

Incentive Fees (USD, millions)

Performance Allocations (USD, millions)

Principal Investment Income (USD, millions)

Total Investment Income (Loss) (USD, millions)

Interest and Other Income (USD, millions)

Interest and Other Income of Consolidated Funds (USD, millions)

Total Expenses (USD, millions)

Compensation and Benefits (USD, millions)

Cash-Based Compensation and Benefits (USD, millions)

Equity-Based Compensation (USD, millions)

Performance Allocations and Incentive Fee Related Compensation (USD, millions)

General, Administrative and Other Expenses (USD, millions)

Interest Expense (USD, millions)

Interest and Other Expenses of Consolidated Funds (USD, millions)

Other Non-Operating (Income) Expenses (USD, millions)

Other Income (Loss) (USD, millions)

Net Investment Income (Loss) of Consolidated Funds (USD, millions)

Income (Loss) Before Provision for Income Taxes (USD, millions)

Provision (Benefit) for Income Taxes (USD, millions)

Net Income (Loss) (USD, millions)

Net Income Attributable to Non-Controlling Interests in Consolidated Entities (USD, millions)

Net Income (Loss) Attributable to The Carlyle Group Inc. (USD, millions)

6fcd64f23b1af144c7d2a9449e6b180dc044ebd25308913e7b39e9113bff84ec

402bfc069a00422bbc3a18c7b6c734636de4454f1735593eec3254f7c01c2606

85419da5059e0d5ae71bdc5f21623dc52bf3f5c243649341d46fcff8449a1b51

c6f864cc95ae0c6125ea5a876a74c121a8e8950327294c97ebe8514799da6ba0

cdfdcfb616cfccaedebeb4759cf48fbfd58036ce00f2a8a7e09e2b59a407a2cf

Americas

EMEA

Asia-Pacific

Total Revenue

9aa0e072afa8a1aac7a50c4ad484021ce12b3e1249b2438d2546a462c20cfc03

Carlyle Group (CG)

Financials