Carlyle : 2.4 MB

Carlyle Reports

Second Quarter 2022

Financial Results

July 28, 2022

Carlyle Reports

Second Quarter 2022

Financial Results

NEW YORK AND WASHINGTON - July 28, 2022 - Global investment firm The Carlyle Group Inc. (NASDAQ: CG) today reported its unaudited results for the second quarter ended June 30, 2022.

Dividend

The Board of Directors has declared a quarterly dividend of $0.325 per common share to holders of record at the close of business on August 9, 2022, payable on August 16, 2022.

Conference Call

Carlyle will host a conference call at 8:30 a.m. EDT on Thursday, July 28, 2022, to discuss its second quarter financial results. The call will be available via public webcast from the Shareholders section of Carlyle's website at www.carlyle.com and a replay will be available on our website soon after the call's completion.

About Carlyle

Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that

deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $376 billion of assets under management as of June 30, 2022, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,900 people in 26 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.

"Carlyle delivered strong results for the second quarter as we continued to drive growth and diversify the earnings power of our business. We have deliberately built Carlyle into a more resilient firm that is set up to adapt and manage through all types of market conditions. Carlyle is a different firm today and we are better positioned than ever before as we drive forward from a position of strength."

KEWSONG LEE

Chief Executive Officer

Forward Looking Statement

THIS PRESS RELEASE MAY CONTAIN FORWARD-LOOKINGstatements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, contingencies, our dividend policy, our expected future dividend policy, the anticipated benefits from converting to a corporation and other non-historicalstatements. You can identify these forward-lookingstatements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-lookingstatements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could

cause actual outcomes or results to differ materially from those indicated in these statements including, but not limited to, those described under the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 10, 2022, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

This release does not constitute an offer for any Carlyle fund.

Contacts

INVESTOR RELATIONS	MEDIA
Daniel Harris	Leigh Farris	Kristen Greco
Phone: [phone]	Phone: [phone]	Phone: [phone]
[e-mail]	[e-mail]	[e-mail]

Second Quarter 2022 Financial

Results

Carlyle Second Quarter 2022 U.S. GAAP Results

Net income attributable to The Carlyle Group Inc. common stockholders was $245 million for Q2 2022, or $0.67 per share on a diluted basis

(Dollars in millions, except per share amounts)		2Q'21		2Q'22			YTD 2Q'21		YTD 2Q'22
REVENUES
Fund management fees		$	394.4	$	546.5		$	775.4	$	997.0
Incentive fees			10.4		13.5			19.9		27.5
Investment income (loss), including performance allocations4			2,218.4		394.6			4,183.6		1,424.4
Revenue from consolidated entities			62.1		63.2			123.2		124.9
All other revenues		21.0		31.2			41.4		57.0
Total Revenues			2,706.3		1,049.0			5,143.5		2,630.8
EXPENSES
Cash-based compensation and benefits			231.8		274.0			460.3		528.3
Equity-based compensation			47.2		45.4			79.6		85.1
Performance allocations and incentive fee related compensation			994.0		207.0			1,860.6		577.7
General, administrative and other expenses			109.1		131.7			200.8		238.0
Expenses from consolidated entities			46.5		40.6			88.9		83.4
Interest and other non-operating expenses (income)		22.4		27.1			46.0		55.2
Total Expenses			1,451.0		725.8			2,736.2		1,567.7
Net investment gains (losses) of consolidated funds		(2.6)		(23.5)			9.7		(20.7)
Income (loss) before provision for income taxes 1			1,252.7		299.7			2,417.0		1,042.4
Provision (benefit) for income taxes		306.2		50.8			579.6		198.7
Net income (loss)			946.5		248.9			1,837.4		843.7
Net income (loss) attributable to non-controlling interests in consolidated entities		21.5		3.5			43.1		26.7
Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders		$	925.0	$	245.4		$	1,794.3	$	817.0
Net income (loss) attributable to The Carlyle Group Inc. per common share:
Basic	$	2.61	$	0.68	$	5.06	$	2.27
Diluted		$	2.55	$	0.67		$	4.97	$	2.24
Supplemental information:
Income (loss) before provision for taxes margin 2		46.3 %		28.6 %			47.0 %		39.6 %
Effective tax rate			24.4 %		17.0 %			24.0 %		19.1 %
Net performance revenues 3		$	1,086.7	$	130.9		$	2,006.2	$	470.4

• Fund management fees increased 39% and 29% in 2Q'22 and YTD 2Q'22, respectively, from the comparable periods in 2021, reflecting the activation of fees on our latest vintage U.S. Buyout, U.S. real estate and Europe Technology carry funds, the impact of investment activity in funds on which management fees are based on invested capital, as well as management fees from the CBAM acquisition in 1Q'22 and the Fortitude strategic advisory services agreement which was effective April 1, 2022. These increases were partially offset by the impacts of realizations in funds on which management fees are based on invested capital and basis stepdowns from commitments to invested capital on prior vintage funds..
• Investment income (loss), including performance allocations, YTD 2Q'22 reflects 9% appreciation in our carry portfolio, compared to 25% in YTD 2Q'21. Investment income in 2Q'22 and YTD 2Q'22 also include an investment loss of $177 million related to the dilution of our ownership in Fortitude in connection with its recent capital raise and initial drawdown (see note 4 at the end of the document for additional information).
• Provision for income taxes was lower in YTD 2Q'22 compared to YTD 2Q'21 due to lower income before provision for taxes and the greater impact of larger tax deductions resulting from the vesting of restricted stock units in 1Q'22.

See notes at end of document.

5