Carlyle LP : The Carlyle Group Reports Second Quarter 2020 Financial Results

THE CARLYLE GROUP REPORTS SECOND QUARTER 2020 FINANCIAL RESULTS

JULY 30, 2020

The Carlyle Group Reports Second Quarter 2020 Financial Results

WASHINGTON, DC - JULY 30, 2020 - Global investment firm The Carlyle Group Inc. (NASDAQ: CG) today reported its unaudited results for the second quarter ended June 30, 2020.

Dividend

The Board of Directors has declared a quarterly dividend of $0.25 per common share to holders of record at the close of business on August 11, 2020, payable on August 18, 2020.

Conference Call

Carlyle will host a conference call at 8:30 a.m. EDT on Thursday, July 30, 2020,

to discuss its second quarter 2020 financial results. The call will be webcast live on Carlyle's investor relations website at www.carlyle.com and a replay will be available on our website shortly after the call.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry

expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $221 billion of assets under management as of June 30, 2020, 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. The Carlyle Group employs more than 1,800 people in 31 offices across six continents. Further information is available at www.carlyle.com. Follow The Carlyle Group on Twitter @OneCarlyle.

"Carlyle delivered strong second quarter financial results for our stakeholders, driven by significant fund appreciation and solid Distributable Earnings. Our outlook remains appropriately prudent given an uncertain economic backdrop, though we continue to be active and well positioned to find attractive investment opportunities around the world."

- Carlyle Co-CEO Kewsong Lee

2

The Carlyle Group Reports SecondFourth QuarterQuarterand

2020FullFinancialYe r 2019ResultsFinancial Results

Impact of Fortitude Transaction on U.S. GAAP Results

On June 2, 2020, a Carlyle-affiliated investment fund purchased additional interests in Fortitude Group Holdings LLC ("Fortitude") from AIG. At closing, Carlyle contributed its existing 19.9% investment in Fortitude into the fund. We now account for our investment based on the net asset value of our limited partnership interest in the fund rather than as a direct interest in Fortitude. Our investment at net asset value is carried at 10% above our cost as of June 30, 2020, whereas previously our investment reflected our proportionate share of Fortitude's U.S. GAAP results, inclusive of unrealized gains (losses) resulting from changes in the fair value of embedded derivatives related to certain reinsurance contracts. This resulted in a significant reduction to the U.S. GAAP carrying value relative to the carrying value as of March 31, 2020 and accordingly, our U.S. GAAP results for Q2 2020 include a loss in principal investment income (loss) of $(621) million. This loss is the reversal of amounts previously only recognized for U.S. GAAP and therefore had no impact on Fee Related Earnings or Distributable Earnings.

Forward Looking Statements

This press release may contain forward-looking statements 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 expectations regarding the impact of COVID-19, and other non- historical statements. You can identify these forward-looking statements 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-looking statements 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, 2019 filed with the SEC on February 12, 2020 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 filed with the SEC on April 30, 2020, 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	OR	Brittany Berliner
Phone: [phone]	Phone: [phone]		Phone: [phone]
[e-mail]	[e-mail]		[e-mail]

3

Second Quarter 2020 Earnings

4

Carlyle Second Quarter 2020 U.S. GAAP Results

• Net income (loss) attributable to The Carlyle Group Inc. common stockholders in Q2 2020 was $145.9 million

(Dollars in millions, except per share amounts)		2Q'19		2Q'20			YTD 2Q'19		YTD 2Q'20
REVENUES
Fund management fees		$	390.9	$	371.8		$	744.3	$	727.7
Incentive fees			8.8		9.0			16.9		17.9
Investment income (loss), including performance allocations			589.6		679.2			1,240.5		(511.7)
Revenue from consolidated entities			45.8		55.2			98.2		108.2
All other revenues		26.0		15.8			48.2		43.2
Total Revenues		1,061.1		1,131.0			2,148.1		385.3
EXPENSES
Cash-based compensation and benefits			221.4		212.5			431.9		416.8
Equity-based compensation			35.2		30.5			71.2		59.6
Performance allocations and incentive fee related compensation			113.6		535.6			299.0		93.1
General, administrative and other expenses			110.7		80.2			223.2		149.8
Expenses from consolidated entities			27.5		39.3			65.6		84.9
Interest and other non-operating expenses (income)		19.9		26.4			39.9		50.5
Total Expenses		528.3		924.5			1,130.8		854.7
Net investment gains (losses) of consolidated funds		9.2		50.3			(5.0)		(62.8)
Income (loss) before provision for income taxes 1			542.0		256.8			1,012.3		(532.2)
Provision (benefit) for income taxes			15.5		52.3			39.5		(27.7)
Net income (loss)			526.5		204.5			972.8		(504.5)
Net income (loss) attributable to non-controlling interests in consolidated entities			39.8		58.6			35.3		(38.4)
Net income (loss) attributable to Carlyle Holdings			486.7		145.9			937.5		(466.1)
Net income (loss) attributable to non-controlling interests in Carlyle Holdings			332.6		-			640.5		-
Net income (loss) attributable to The Carlyle Group Inc.			154.1		145.9			297.0		(466.1)
Net income attributable to Series A Preferred Unitholders			5.9		-			11.8		-
Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders		$	148.2	$	145.9		$	285.2	$	(466.1)
Net income (loss) attributable to The Carlyle Group Inc. per common share
Basic	$	1.34	$	0.42	$	2.60	$	(1.34)
Diluted	$	1.23	$	0.41	$	2.41	$	(1.34)
Income (loss) before provision for taxes margin 2			51.1 %		22.7 %			47.1 %		(138.1)%

• Our U.S. GAAP results for Q2 2020 include a loss in principal investment income (loss) of $(621) million related to the closing of the transaction in which a Carlyle-affiliated investment fund purchased additional interests in Fortitude from AIG. The loss is driven by the contribution of our existing 19.9% investment in Fortitude into the fund, and the subsequent accounting for our investment based on the net asset value of our limited partnership interest in the fund rather than a direct interest in Fortitude. This loss is more than offset by additional accrued performance allocations of$1,192 million recognized as a result of the appreciation in our funds during the quarter.

On January 1, 2020, The Carlyle Group L.P. (the "Partnership") completed its conversion from a Delaware limited partnership to a Delaware corporation, The Carlyle Group Inc. Information reported for periods prior to the Conversion on January 1, 2020 reflect the results of the Partnership. References to The Carlyle Group Inc., our common stock and our dividends in periods prior to the Conversion refer to The Carlyle Group L.P., its common units and distributions. For periods subsequent to Conversion, Net income (loss) attributable to Carlyle Holdings refers to the Net income (loss) of The Carlyle Group Inc. and its consolidated subsidiaries, net of non-controlling interests in consolidated entities. LTM results for the provision (benefit) for income taxes and net income (loss) attributable to Carlyle Holdings are not meaningful due to the change in our 5

structure in connection with the Conversion. See Notes at end of document.

Carlyle Second Quarter 2020 Highlights

Financial

Measures &

Dividend

Assets Under Management

Key Metrics

Fortitude

• Distributable Earnings ("DE") of $198 million for Q2 2020 on a pre-tax basis, or $0.53 per common share on a post-tax basis. DE of $373 million, or $1.01 per common share for the YTD
• Fee Related Earnings ("FRE") of $127 million for Q2 2020 and $256 million for the YTD
• Realized Net Performance Revenues of $71 million for Q2 2020 and $119 million for the YTD
• Net Accrued Performance Revenues of $1.8 billion, up 4% YTD
• Declared a quarterly dividend of $0.25 per common share, payable to stockholders of record as of August 11, 2020
• Total Assets Under Management: $221 billion, down (1)% YTD
• Fee-earningAssets Under Management: $162 billion, up 1% YTD
• Available Capital for investment: $73 billion
• Fundraising: $4.8 billion in Q2 2020 and $12.4 billion YTD
• Invested Capital (carry funds): $2.9 billion in Q2 2020 and $5.9 billion YTD
• Realized Proceeds (carry funds): $5.7 billion in Q2 2020 and $10.2 billion YTD
• Carry Fund Appreciation/(Depreciation): 5% in Q2 2020 and (3)% YTD
• On June 2, 2020, Carlyle and our partners completed the acquisition of an incremental 77% of Fortitude Group Holdings, bringing our combined ownership to 97%. Carlyle's balance sheet interest remains at 19.9%.

6

Carlyle Second Quarter 2020 Total Segment Operating Results

(Dollars in millions, except per share amounts)		2Q'19		2Q'20			YTD 2Q'19		YTD 2Q'20
SEGMENT REVENUES
Fund management fees		$	414.5	$	386.4		$	796.1	$	767.9
Transaction and portfolio advisory fees, net and other			14.9		18.3			24.9		25.1
Total segment fee revenues			429.4		404.7			821.0		793.0
Realized performance revenues		41.9		152.2			91.1		323.8
Realized principal investment income3			73.9		22.1			78.0		38.0
Interest income		5.5		3.2			11.5		8.5
Total Segment Revenues	$	550.7	$	582.2	$	1,001.6	$	1,163.3
SEGMENT EXPENSES
Compensation and benefits
Cash-based compensation and benefits		$	207.1	$	210.1		$	409.4	$	413.9
Realized performance revenues related compensation		21.1		81.3			63.3		204.7
Total compensation and benefits4			228.2		291.4			472.7		618.6
General, administrative and other expenses			80.0		58.1			155.7		106.4
Depreciation and amortization expense			9.6		9.2			19.9		16.6
Interest expense		19.5		25.1			39.1		48.3
Total Segment Expenses	$	337.3	$	383.8		$	687.4	$	789.9
Total Segment Revenues		$	550.7	$	582.2		$	1,001.6	$	1,163.3
Total Segment Expenses		337.3		383.8			687.4		789.9
(=) Distributable Earnings	$	213.4	$	198.4	$	314.2	$	373.4
(-) Realized Net Performance Revenues			20.8		70.9			27.8		119.1
(-) Realized Principal Investment Income			73.9		22.1			78.0		38.0
(+) Net Interest		14.0		21.9			27.6		39.8
(=) Fee Related Earnings	$	132.7	$	127.3		$	236.0	$	256.1
After-tax Distributable Earnings, per common share1		$	0.57	$	0.53		$	0.82	$	1.01
Dividend per common share2		$	0.43	$	0.25		$	0.62	$	0.50

1. A reconciliation of Distributable Earnings to After-tax Distributable Earnings per common share is provided on page 29.
2. Our dividend policy as a Corporation is to pay dividends in an initial amount of $0.25 per share of common stock ($1.00 annually), beginning with the 4Q'19 dividend paid to stockholders in February 2020. See Notes at the end of the document for our Dividend Policy.
3. Realized principal investment income in 2Q'19 and YTD 2Q'19 includes $72 million of gain upon the final resolution of French tax litigation concerning a European Real Estate fund, reversing in part a loss that was recognized in 2015.
4. Total Segment compensation and benefits exclude equity-based compensation, detailed below and as shown on page 30. These amounts include equity-based compensation reflected in (i) principal investment income and (ii) general, administration and other expense in our U.S. GAAP statement of operations, and excludes amounts related to shares issued in conjunction with a previous acquisition.

Equity-based compensation

$

38.3

$

34.6

$

77.7

$

66.3

7

Distributable Earnings

• Distributable Earnings were $198 million in Q2 2020 and $373 million YTD
• • Fee Related Earnings accounted for 64% of Distributable Earnings in the quarter and 69% for the YTD period
• Realized Net Performance Revenues were $71 million in Q2 2020 and $119 million YTD
• • Corporate Private Equity and Real Assets contributed 43% and 40% of Realized Net Performance Revenue, respectively for the YTD period
• Realized Principal Investment Income was $22 million in Q2 2020 and $38 million YTD

Fee Related Earnings

• Fee Related Earnings were $127 million in Q2 2020, down from $133 million in Q2 2019, with the decrease driven by lower catch-up management fees, and partially offset by higher transaction fees and lower general & administrative expenses. YTD Fee Related Earnings of $256 million were 9% higher compared to $236 million in the prior YTD period
• Management Fees were $386 million in Q2 2020, down 7% from $415 million in Q2 2019, and included catch-up management fees of $2 million in Q2 2020 compared to $28 million in Q2 2019. This quarter's management fees were negatively affected by the net deferral of $4 million of subordinated fees in our structured credit business. YTD management fees of $768 million were down from $796 million in the prior YTD period. Transaction fees of $14 million in Q2 2020 were driven by the closing of our recent Fortitude transaction and increased from $10 million in Q2 2019
• Cash-basedcompensation & benefits were $210 million in Q2 2020, a 1% increase from $207 million in Q2 2019. YTD cash-based compensation & benefits of $414 million were also 1% higher compared to the prior YTD period
• General & administrative expenses were $58 million in Q2 2020, a decline of 27% from Q2 2019 reflecting lower travel and other general & administrative expenditures, as well as $8 million in expense recoveries related to the Fortitude transaction
• FRE margin was 31% in Q2 2020 and 32% YTD

	FRE	31%		27%	26%	33%	31%					25%	28%	32%
	Margin1
	See Notes at end of document.																	9

Performance Revenues

• Net Accrued Performance Revenues1 were $1.8 billion as of Q2 2020, up 49% from $1.2 billion last quarter due largely to strong appreciation in our sixth U.S. Buyout fund, and up 4% YTD
• Realized Net Performance Revenues were $71 million in Q2 2020 and $119 million YTD
• • Q2 2020 Realized Net Performance Revenues were primarily driven by exit activity in our U.S. Real Estate and European Technology funds

$1,720

$1,783

Real		Corporate
	Private
Assets
$119mm	Equity

	Investment
2	Solutions	Global
	Credit

See Notes at end of document.

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Total Assets Under Management

• Total Assets Under Management1 of $221 billion at June 30, 2020 increased 2% from the prior quarter and decreased (1)% YTD
• Available Capital2 of $73 billion at June 30, 2020 decreased from $74 billion in the prior quarter

	YTD	3
	Change
	(1)%
			Credit & Other
	4%	(Non-Carry Fund)
	1%
	(7)%	$221bn
	Investment
			Solutions
			Carry
			Funds
	(2)%	Traditional
			Carry Funds

$47	$221
$50
$40
$84

n Fair Value n Available Capital

See Notes at end of document.

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Fair Value of Investments

• Fair Value of Investments4 of $148 billion at June 30, 2020 increased 3% from $143 billion in the prior quarter, and is down (5)%
  YTD
• Fair value in traditional carry funds of $81 billion increased 6% from 1Q 2020 and is down (7)% YTD. The in-carry ratio of 40% increased from 36% in Q1 2020, largely due to our Credit Opportunities fund moving back into a carry position
• Fair value of our public portfolio increased to 14% of the traditional carry fund value from 8% in Q1 2020 due to an IPO in our U.S. Buyout funds and appreciation in the value our previous public portfolio

3

Corporate

Private

Equity

Traditional Carry Funds

Natural

Resources

$81bn

Real

Estate

Legacy

Global Energy

Credit

In-Carry Ratio5

40%

Publicly Traded

14%

Aged 4+ Years6

28%

See Notes at end of document. Totals may not sum due to rounding.

12

Fee-earning Assets Under Management

• Fee-earningAssets Under Management7 of $162 billion increased 3% from the prior quarter and 1% YTD, with growth in Global Credit (10% YTD) and Investment Solutions (12% YTD) partially offset by runoff in Corporate Private Equity and Real Assets
• Pending Fee-earning AUM8 was $8.5 billion as of June 30, 2020, down from $12.5 billion in the prior quarter as our latest Secondaries (Investment Solutions) and Aviation (Global Credit) funds activated fees during Q2 2020

YTD

Change

1%

12%

10%

(5)%

(7)%

3

Credit (Non-Carry Fund)

Investment

Solutions$162bn

Carry Funds

Traditional

Carry Funds

See Notes at end of document. Totals may not sum due to rounding.	13

Key Metrics Activity

• Fundraising was $4.8 billion in Q2 2020 driven by activity in Investment Solutions and Global Credit, and $12.4 billion
  YTD
• Invested Capital in carry funds was $2.9 billion in Q2 2020 and $5.9 billion YTD, with a higher relative level of activity in Investment Solutions and Real Assets on a YTD basis
• Realized Proceeds in carry funds was $5.7 billion in Q2 2020 driven by exit activity in Corporate Private Equity, and $10.2 billion YTD

		Fundraising				Invested Capital		Realized Proceeds
						Carry Funds				Carry Funds
($bn)	2Q'20	YTD	LTM		2Q'20	YTD	LTM		2Q'20	YTD	LTM
2Q'20	2Q'20		2Q'20	2Q'20		2Q'20	2Q'20
Total	$4.8	$12.4		$21.3		$2.9		$5.9	$16.4		$5.7	$10.2	$21.0
Corporate Private Equity	$-	$0.5		$3.8		$0.5		$1.3	$4.2		$2.6	$4.7	$7.1
Real Assets1	$0.5	$1.7		$2.7		$0.8		$1.6	$5.1		$1.1	$1.7	$5.3
Real Estate	$0.2	$0.7		$1.1		$0.5		$0.7	$1.9		$0.8	$1.3	$3.4
Natural Resources	$0.3	$0.9		$1.6		$0.3		$0.8	$3.1		$0.1	$0.1	$1.2
Global Credit	$2.9	$4.5		$7.7		$0.5		$1.3	$2.7		$0.4	$0.7	$2.0
Investment Solutions	$1.4	$5.8		$7.1		$1.0		$1.7	$4.5		$1.5	$3.0	$6.6

See Notes at end of document. Totals may not sum due to rounding.

14

Segment Highlights

15

Corporate Private Equity

• Fee Related Earnings of $69 million in Q2 2020 were up from $62 million in Q2 2019, primarily driven by lower G&A expenses in the current quarter. Fee Related Earnings of $146 million YTD increased 21% compared to $121 million in the prior YTD period
• Total AUM of $84.3 billion is down (2)% since the beginning of the year, as realizations exceeded new fundraising and fund appreciation YTD
• Invested Capital of $0.5 billion in Q2 2020 and $1.3 billion YTD. Notable Q2 2020 investments included Unison (CP VII), and we have announced or signed an additional $1.3 billion of new transactions expected to close in the coming quarters
• Realized Proceeds of $2.6 billion in Q2 2020 and $4.7 billion YTD. Realized Net Performance Revenues of $22 million in Q2 2020 were driven by exit activity in our third European Technology fund (CETP III)
• Carry Funds appreciated 13% in Q2 2020 and 3% YTD

Other

BuyoutUS

Buyout

$84bn

Total

AUM

Europe

Buyout

Asia

Buyout

(Dollars in millions)		2Q'19		2Q'20			YTD 2Q'19		YTD 2Q'20
Fund management fees
$	190.3	$	187.7		$	380.3	$	376.2
Transaction and portfolio advisory fees, net and other			11.0		2.8			14.8		6.7
Fee Revenues		$	201.3	$	190.5		$	395.1	$	382.9
Cash-based compensation and benefits			101.1		94.8			197.8		189.0
General, administration and other indirect expenses			33.3		22.7			67.4		40.2
Depreciation and amortization expense		4.5		4.4			9.4		7.8
Operating Expenses		$	138.9	$	121.9		$	274.6	$	237.0
(=) Fee Related Earnings		$	62.4	$	68.6		$	120.5	$	145.9
(+) Realized Performance Revenues			11.2		40.5			34.6		94.1
(-) Realized Performance Revenues Related Compensation			5.4		18.2			15.8		42.5
Realized Net Performance Revenues			5.8		22.3			18.8		51.6
(+) Realized Principal Investment Income (Loss)			1.0		14.8			(1.3)		24.4
(-) Net Interest			6.7		9.9			13.4		18.7
(=) Distributable Earnings		$	62.5	$	95.8		$	124.6	$	203.2

16

Real Assets

• Fee Related Earnings of $23 million in Q2 2020 were down from $54 million in Q2 2019 primarily driven by negligible catch-up management fees in Q2 2020 compared to $26 million in Q2 2019. Fee Related Earnings of $47 million YTD compared to $80 million in the prior YTD period
• Total AUM of $40.2 billion declined (7)% YTD, driven by a decrease in fair value across the energy portfolio and $1.7 billion of realized proceeds, partially offset by $1.7 billion of fundraising
• Fundraising of $0.5 billion in Q2 2020 included closings for our Core Plus real estate fund (CPI) and our Renewable Energy fund (CRSEF)
• Invested Capital of $0.8 billion in Q2 2020 and $1.6 billion YTD. Q2 2020 investment activity was comprised largely of follow-on investment activity across the real estate and natural resources platforms
• Realized Proceeds of $1.1 billion in Q2 2020 and $1.7 billion YTD. Realized Net Performance Revenues of $42 million in Q2 2020 were largely driven by exit activity in our U.S. Real Estate funds
• Carry Funds appreciated 3% in Q2 2020 and depreciated (10)% YTD. Our Real Estate funds appreciated 2% in Q2 2020 and 1% YTD, while our Natural Resources funds appreciated 3% in Q2 2020 but depreciated (19)% YTD

Real

Estate

$40bn

Total

AUM

Natural

Resources Legacy

Energy

(Dollars in millions)			2Q'19		2Q'20			YTD 2Q'19		YTD 2Q'20
Fund management fees	$	105.8			$	183.2
$	74.8	$	155.0
Transaction and portfolio advisory fees, net and other			0.5		0.3			3.8		0.6
Fee Revenues	$	106.3	$	75.1	$	187.0	$	155.6
Cash-based compensation and benefits			34.0		35.8			69.8		71.3
General, administration and other indirect expenses			17.0		14.9			33.8		34.6
Depreciation and amortization expense			1.8		1.7			3.7		3.1
Operating Expenses		$	52.8	$	52.4		$	107.3	$	109.0
(=) Fee Related Earnings	$	53.5	$	22.7	$	79.7	$	46.6
(+) Realized Performance Revenues			24.6		75.5			29.5		87.1
(-) Realized Performance Revenues Related Compensation			11.2		33.6			23.2		39.0
Realized Net Performance Revenues			13.4		41.9			6.3		48.1
(+) Realized Principal Investment Income (Loss)			70.1		1.5			71.7		2.1
(-) Net Interest			2.4		5.4			5.0		8.7
(=) Distributable Earnings		$	134.6	$	60.7		$	152.7	$	88.1

17

Global Credit

• Fee Related Earnings of $24 million in Q2 2020 increased from $11 million in Q2 2019, primarily driven by higher transaction fees and lower general & administrative expenses (expense recovery), both related to the closing of our recent Fortitude transaction. Management fees of $78 million in Q2 2020 declined (1)% compared to Q2 2019, and were negatively impacted by the net deferral of $4 million in subordinated management fees in certain CLO vehicles ($8 million cumulative deferral). Fee Related Earnings of $43 million YTD were 88% higher compared to $23 million in the prior YTD period
• Total AUM of $50.0 billion increased 1% YTD, driven by net growth in Structured Credit and inflows related to our recent Fortitude transaction
• Fundraising of $2.9 billion in Q2 2020 included capital raised for our recent Fortitude transaction as well as the issuance of one new European CLO. In addition, we launched a new U.S. CLO early in Q3 2020.
• Invested Capital from traditional carry funds was $0.5 billion in Q2 2020 and $1.3 billion YTD. In addition, we have issued $1.0 billion of new CLOs in our Structured Credit funds and originated $1.1 billion in our Direct Lending business, on a YTD basis
• Carry funds appreciated 8% in the quarter and depreciated (13)% YTD, with Q2 2020 performance driven by strong appreciation in our credit opportunities and structured credit carry funds.

Other Direct

AviationLending

$50bn Credit

Total Carry

AUM Funds

CLOs

(Dollars in millions)		2Q'19		2Q'20			YTD 2Q'19		YTD 2Q'20
Fund management fees
$	79.2	$	78.3		$	154.0	$	151.3
Transaction and portfolio advisory fees, net and other			3.4		15.2			6.3		17.8
Fee Revenues		$	82.6	$	93.5		$	160.3	$	169.1
Cash-based compensation and benefits			49.5		54.5			96.1		103.6
General, administration and other indirect expenses			20.5		13.1			37.0		18.7
Depreciation and amortization expense		2.0		1.8			4.1		3.4
Operating Expenses		$	72.0	$	69.4		$	137.2	$	125.7
(=) Fee Related Earnings		$	10.6	$	24.1		$	23.1	$	43.4
(+) Realized Performance Revenues			0.1		5.5			0.1		26.5
(-) Realized Performance Revenues Related Compensation			-		2.5			-		12.2
Realized Net Performance Revenues			0.1		3.0			0.1		14.3
(+) Realized Principal Investment Income (Loss)			1.4		5.3			6.0		10.4
(-) Net Interest			3.3		4.3			6.2		8.2
(=) Distributable Earnings		$	8.8	$	28.1		$	23.0	$	59.9

18

Investment Solutions

• Fee Related Earnings of $12 million in Q2 2020 were up from $6 million in Q2 2019 primarily driven by activating management fees on AlpInvest's latest secondaries program. Fee Related Earnings of $20 million YTD were 59% higher compared to $13 million in the prior YTD period
• Total AUM of $46.9 billion increased 4% YTD with fundraising of $5.8 billion partially offset by $3.0 billion of realized proceeds
• Fundraising of $1.4 billion in Q2 2020 was driven by closings for AlpInvest's latest vintage secondaries program
• Invested Capital of $1.0 billion in Q2 2020 and $1.7 billion YTD
• Realized Proceeds of $1.5 billion in Q2 2020 and $3.0 billion YTD. Realized Net Performance Revenues of $4 million in Q2 2020 were higher than recent quarters, but remain muted as funds in which Carlyle has significant performance revenue ownership continue to mature
• Net Accrued Performance Revenues totaled $84 million as of Q2 2020, compared to $101 million at the beginning of the year. Investment Solutions carry funds depreciated (6)% for the quarter and (4)% YTD. The depreciation in Q2 2020 is largely due to the standard one quarter lag in portfolio valuation for primary and secondary programs in this segment.

AlpInvest -	AlpInvest -
Secondary
Primary
& Other1

$47bn

Total

AUM

MRE

AlpInvest -

Co-Investments

(Dollars in millions)		2Q'19		2Q'20			YTD 2Q'19		YTD 2Q'20
Fund management fees
$	39.2	$	45.6		$	78.6	$	85.4
Fee Revenues		$	39.2	$	45.6		$	78.6	$	85.4
Cash-based compensation and benefits			22.5		25.0			45.7		50.0
General, administration and other indirect expenses			9.2		7.4			17.5		12.9
Depreciation and amortization expense		1.3		1.3			2.7		2.3
Operating Expenses		$	33.0	$	33.7		$	65.9	$	65.2
(=) Fee Related Earnings		$	6.2	$	11.9		$	12.7	$	20.2
(+) Realized Performance Revenues			6.0		30.7			26.9		116.1
(-) Realized Performance Revenues Related Compensation			4.5		27.0			24.3		111.0
Realized Net Performance Revenues			1.5		3.7			2.6		5.1
(+) Realized Principal Investment Income (Loss)			1.4		0.5			1.6		1.1
(-) Net Interest			1.6		2.3			3.0		4.2
(=) Distributable Earnings		$	7.5	$	13.8		$	13.9	$	22.2

See Notes at end of document.

19

Supplemental Details

20

Carlyle Second Quarter 2020 Total Segment Results

(Dollars in millions, except per share amounts)		2Q'19		3Q'19		4Q'19		1Q'20		2Q'20		YTD 2Q'19	YTD 2Q'20
SEGMENT REVENUES
Fund management fees		$	414.5	$	384.6	$	390.2	$	381.5	$	386.4		$	796.1	$	767.9
Transaction and portfolio advisory fees, net and other			14.9		11.1		17.5		6.8		18.3			24.9		25.1
Total segment fee revenues			429.4		395.7		407.7		388.3		404.7			821.0		793.0
Realized performance revenues			41.9		118.3		164.9		171.6		152.2			91.1		323.8
Realized principal investment income			73.9		7.3		1.7		15.9		22.1			78.0		38.0
Interest income		5.5		6.5		6.4		5.3		3.2			11.5		8.5
Total Segment Revenues	$	550.7	$	527.8	$	580.7	$	581.1	$	582.2	$	1,001.6	$	1,163.3
SEGMENT EXPENSES
Compensation and benefits
Cash-based compensation and benefits		$	207.1	$	194.1	$	188.6	$	203.8	$	210.1		$	409.4	$	413.9
Realized performance revenues related compensation		21.1		60.6		86.3		123.4		81.3			63.3		204.7
Total compensation and benefits1			228.2		254.7		274.9		327.2		291.4			472.7		618.6
General, administrative and other expenses			80.0		81.0		94.6		48.3		58.1			155.7		106.4
Depreciation and amortization expense			9.6		11.8		16.5		7.4		9.2			19.9		16.6
Interest expense		19.5		19.6		23.0		23.2		25.1			39.1		48.3
Total Segment Expenses	$	337.3	$	367.1	$	409.0	$	406.1	$	383.8	$	687.4	$	789.9
Total Segment Revenues			550.7		527.8		580.7		581.1		582.2			1,001.6		1,163.3
Total Segment Expenses		337.3		367.1		409.0		406.1		383.8			687.4		789.9
(=) Distributable Earnings	$	213.4	$	160.7	$	171.7	$	175.0	$	198.4	$	314.2	$	373.4
(-) Realized Net Performance Revenues			20.8		57.7		78.6		48.2		70.9			27.8		119.1
(-) Realized Principal Investment Income			73.9		7.3		1.7		15.9		22.1			78.0		38.0
(+) Net Interest		14.0		13.1		16.6		17.9		21.9			27.6		39.8
(=) Fee Related Earnings	$	132.7	$	108.8	$	108.0	$	128.8	$	127.3		$	236.0	$	256.1
After-tax Distributable Earnings, per common share		$	0.57	$	0.41	$	0.47	$	0.48	$	0.53		$	0.82	$	1.01
Dividend per common share2		$	0.43	$	0.31	$	0.25	$	0.25	$	0.25		$	0.62	$	0.50

Note: Historical quarterly results by segment available in Q2 2020 financial supplement on Carlyle's investor relations website

1. Total Segment compensation and benefits exclude equity-based compensation, detailed below and as shown on page 30. These amounts include equity-based compensation reflected in (i) principal investment income and (ii) general, administrative and other expense in our U.S. GAAP statement of operations, and exclude amounts related to shares issued in conjunction with a previous acquisition.

Equity-based compensation$ 38.3 $ 38.9 $ 34.9 $ 31.7 $ 34.6 $ 77.7 $ 66.3

(2) Our dividend policy as a Corporation is to pay dividends in an initial amount of $0.25 per share of common stock ($1.00 annually), beginning with the 4Q'19 dividend paid to shareholders in	21
	February 2020. See Notes at the end of the document for our Dividend Policy.

Total Segment Balance Sheet Highlights

• Balance sheet assets attributable to Carlyle stockholders (including net cash and equivalents, net accrued performance revenue and investments) totaled $2.1 billion at June 30, 2020
• Balance sheet cash totaled $0.6 billion as of June 30, 2020, with no balance drawn on our $775 million revolving credit line

Key Balance Sheet Items1($mn)	6/30/2020
Cash and Cash Equivalents	$554.5
Net accrued performance revenues2
(net of related accrued compensation	$1,783.3
and accrued giveback)
Investments attributable to Carlyle	$1,423.1
stockholders3
Debt obligations4	$1,616.9
Drawn revolving credit line	$0.0
($775 million remaining capacity)

1. Balance sheet amounts presented exclude the effect of U.S. GAAP consolidation eliminations on investments and accrued performance revenue, as well as cash and debt associated with Carlyle's consolidated funds.
2. See page 33 for a reconciliation of net accrued performance revenues as of June 30, 2020 to U.S. GAAP.
3. Investments exclude the equity investments by Carlyle in NGP Energy Capital Management and the portion of CLO and CCS investments attributable to Carlyle stockholders that were financed with debt. Refer to page 33 for a reconciliation to U.S. GAAP.
4. Excludes approximately $327 million of loans used to finance CLO and CCS investments and $267 million of lease liabilities.

KEY BALANCE SHEET ITEMS ($BN)

$3.5

$3.0

$2.5

	1.7	1.8	Net
$2.0	1.7		Accrued
			Performance

Revenues2

$1.5
$1.0
$0.5	1.2	1.5	1.4	Investments3
$0.0
($0.5)	(0.6)	(0.9)	(1.1)	Cash/Equivalents
	less Debt4
($1.0)	2018	2019	2Q'20
				22

AUM and Fee-earning AUM Roll Forward

Total AUM Roll Forward (Unaudited)

($mm)				Three Months Ended June 30, 2020							Six Months Ended June 30, 2020
	Corporate											Corporate
		Private		Real		Global	Investment					Private		Real		Global	Investment
		Equity		Assets		Credit		Solutions5		Total			Equity		Assets		Credit		Solutions5		Total
Balance, Beginning of Period	$	80,383	$	39,794	$	48,802	$	47,954	$	216,933	$	86,429	$	43,355	$	49,412	$	45,246	$	224,442
Inflows1		-		536		2,615		1,445		4,596			492		1,650		3,873		5,714		11,729
Outflows (including realizations)2		(2,177)		(780)		(2,019)		(1,659)		(6,635)			(3,555)		(1,257)		(2,533)		(3,214)		(10,559)
Market Activity & Other3		5,727		501		395		(1,694)		4,929			999		(3,552)		(777)		(881)		(4,211)
Foreign Exchange4		357		125		199		828		1,509			(75)		(20)		17		9		(69)
Balance, End of Period	$	84,290	$	40,176	$	49,992	$	46,874	$	221,332	$	84,290	$	40,176	$	49,992	$	46,874	$	221,332

Fee-earning AUM Roll Forward (Unaudited)

($mm)				Three Months Ended June 30, 2020							Six Months Ended June 30, 2020
	Corporate											Corporate
		Private		Real		Global	Investment					Private		Real		Global	Investment
		Equity	Assets10		Credit		Solutions		Total			Equity	Assets10		Credit		Solutions		Total
Balance, Beginning of Period	$	61,088	$	30,891	$	38,065	$	28,202	$	158,246	$	61,660	$	33,151	$	37,862	$	28,384	$	161,057
Inflows6		45		759		3,457		5,410		9,671			88		1,516		4,517		6,447		12,568
Outflows (including realizations)7		(3,845)		(66)		(412)		(1,542)		(5,865)			(4,102)		(2,861)		(1,310)		(2,248)		(10,521)
Market Activity & Other8		(346)		(88)		61		(824)		(1,197)			(346)		(224)		270		(868)		(1,168)
Foreign Exchange9		281		73		659		521		1,534			(77)		(13)		491		52		453
Balance, End of Period	$	57,223	$	31,569	$	41,830	$	31,767	$	162,389	$	57,223	$	31,569	$	41,830	$	31,767	$	162,389

Totals may not sum due to rounding. See Notes at end of document.

23

Corporate Private Equity Fund Performance

(Reported in Local Currency, mm)											TOTAL INVESTMENTS				REALIZED/PARTIALLY REALIZED INVESTMENTS(7)
										As of June 30, 2020						As of June 30, 2020
		Investment
		Period End/			Cumulative			Remaining		Gross	Net IRR	In Accrued	LTM		Cumulative				Gross
	Fund	Fee	Committed		Invested		Realized		Fair	MOIC	IRR	(10)	Carry/	Realized		Invested		Total Fair	MOIC	IRR
Vintage(1)	Stepdown(2)		Capital		Capital(3)		Value(4)		Value(5)	(6)	(9)(17)	(17)	(Clawback)(11)	Carry(12)		Capital(3)		Value(13)	(6)	(9)(17)
CORPORATE PRIVATE EQUITY
Fully Invested/Committed Funds(8)
CP V	2007		$	13,719.7	$	13,190.9	$	26,089.2	$	1,599.3	2.1x	18%	14%	X	X	$	10,777.9	$	26,593.7	2.5x	24%
CP VI	2014		$	13,000.0	$	12,895.7	$	6,476.6	$	15,879.1	1.7x	18%	13%	X		$	3,948.3	$	6,072.8	1.5x	16%
CEP II	2003		€	1,805.4	€	2,048.4	€	4,113.3	€	23.8	2.0x	36%	20%	X	X	€	1,888.9	€	4,121.1	2.2x	43%
CEP III	2007		€	5,294.9	€	5,155.5	€	10,982.2	€	389.8	2.2x	19%	14%	X		€	4,667.5	€	11,232.4	2.4x	20%
CEP IV	2014		€	3,669.5	€	3,745.5	€	1,909.5	€	2,702.2	1.2x	8%	4%			€	888.8	€	1,596.1	1.8x	23%
CAP III	2008		$	2,551.6	$	2,543.2	$	4,416.5	$	210.4	1.8x	16%	11%	X	X	$	2,149.0	$	4,416.7	2.1x	19%
CAP IV	2014		$	3,880.4	$	4,044.5	$	2,975.5	$	3,197.6	1.5x	14%	9%	X		$	1,415.1	$	3,850.6	2.7x	33%
CJP II	2006		¥	165,600.0	¥	141,866.7	¥	205,301.1	¥	1,080.0	1.5x	7%	3%			¥	134,666.7	¥	203,831.2	1.5x	7%
CGFSP II	2013		$	1,000.0	$	942.7	$	942.5	$	776.4	1.8x	22%	15%	X	X	$	446.1	$	889.1	2.0x	28%
CEOF I	2011		$	1,119.1	$	1,173.1	$	1,407.2	$	328.2	1.5x	12%	8%	X		$	766.2	$	1,321.7	1.7x	23%
CETP III	2014		€	656.6	€	580.1	€	1,062.6	€	340.8	2.4x	42%	28%	X	X	€	236.6	€	1,063.7	4.5x	53%
CAGP IV	2008		$	1,041.4	$	954.1	$	1,076.5	$	152.0	1.3x	7%	2%			$	589.8	$	1,010.4	1.7x	13%
All Other Active Funds,	Various				$	10,350.0	$	10,199.9	$	4,883.7	1.5x	11%	9%			$	5,527.0	$	10,337.2	1.9x	16%
Coinvestments and SMAs(14)
Fully Realized Funds, Coinvestments	Various				$	24,978.2	$	63,557.5	$	11.0	2.5x	33%	28%			$	24,978.2	$	63,568.6	2.5x	33%
and SMA's(15)
Total Fully Invested/Committed Funds				$	85,351.4	$	139,359.9	$	30,934.1	2.0x	26%	18%			$	60,483.8	$	140,204.6	2.3x	27%
Funds in the Investment Period(8)
CP VII	2018	May-24	$	18,510.0	$	8,281.3	$	262.7	$	8,317.1	1.0x	NM	NM
CEP V	2018	Oct-24	€	6,416.4	€	1,683.3	€	8.0	€	1,584.1	0.9x	NM	NM
CAP V	2018	Jun-24	$	6,554.2	$	1,186.0	$	280.2	$	1,175.1	1.2x	NM	NM
CGP	2015	Mar-21	$	3,588.0	$	2,806.5	$	194.6	$	2,713.7	1.0x	1%	0%
CJP III	2013	Aug-20	¥	119,505.1	¥	91,191.7	¥	73,829.1	¥	92,565.9	1.8x	20%	12%	X
CGFSP III	2018	Dec-23	$	1,004.6	$	441.4	$	2.7	$	518.0	1.2x	NM	NM
CEOF II	2015	Aug-20	$	2,400.0	$	2,055.9	$	163.8	$	1,949.9	1.0x	1%	Neg
CETP IV	2019	Jul-25	€	1,350.0	€	254.4	€	-	€	226.3	0.9x	NM	NM
All Other Funds, Coinvestments and	Various				$	3,673.7	$	693.8	$	3,482.8	1.1x	NM	NM
SMAs(16)
Total Funds in the Investment Period					$	21,469.3	$	2,291.5	$	21,050.7	1.1x	5%	Neg			$	572.4	$	1,558.3	2.7x	37%
TOTAL CORPORATE PRIVATE EQUITY(18)					$	106,820.6	$	141,651.4	$	51,984.8	1.8x	25%	17%			$	61,056.2	$	141,762.8	2.3x	27%

See Notes at end of document.

24

Real Assets Fund Performance

(Reported in Local Currency, mm)											TOTAL INVESTMENTS				REALIZED/PARTIALLY REALIZED INVESTMENTS(7)
										As of June 30, 2020						As of June 30, 2020
		Investment												In Accrued	LTM
		Period End/			Cumulative			Remaining		Gross	Net IRR	Carry/	Realized		Cumulative				Gross
	Fund	Fee	Committed		Invested		Realized		Fair	MOIC	IRR	(10)	(Clawback)	Carry/		Invested		Total Fair	MOIC	IRR
	Vintage(1)	Stepdown(2)		Capital	Capital(3)		Value(4)		Value(5)	(6)	(9)(17)	(17)	(11)	(Clawback)(12)		Capital(3)		Value(13)	(6)	(9)(17)
REAL ASSETS
Fully Invested/Committed Funds(8)
CRP III	2000		$	564.1	$	522.5	$	1,880.0	$	14.5	3.6x	44%	30%	X	X	$	522.5	$	1,894.5	3.6x	44%
CRP IV	2004		$	950.0	$	1,264.2	$	1,984.7	$	26.5	1.6x	7%	4%			$	1,206.2	$	1,997.2	1.7x	8%
CRP V	2006		$	3,000.0	$	3,349.2	$	5,081.9	$	812.7	1.8x	12%	9%	X	X	$	3,227.1	$	5,800.7	1.8x	13%
CRP VI	2010		$	2,340.0	$	2,160.5	$	3,600.0	$	316.5	1.8x	27%	18%	X	X	$	1,705.9	$	3,450.6	2.0x	32%
CRP VII	2014		$	4,161.6	$	3,707.3	$	3,625.0	$	2,177.4	1.6x	19%	12%	X	X	$	1,938.1	$	3,511.7	1.8x	26%
CEREP III	2007		€	2,229.5	€	2,052.7	€	2,381.2	€	100.0	1.2x	4%	1%			€	1,911.6	€	2,394.0	1.3x	5%
CIEP I	2013		$	2,500.0	$	2,278.5	$	860.6	$	2,093.8	1.3x	14%	6%			$	665.4	$	1,337.2	2.0x	23%
NGP X	2012		$	3,586.0	$	3,343.9	$	2,967.4	$	575.2	1.1x	2%	Neg			$	2,231.6	$	2,899.2	1.3x	10%
NGP XI	2014		$	5,325.0	$	4,925.7	$	1,645.7	$	3,483.0	1.0x	1%	Neg			$	1,428.4	$	1,586.7	1.1x	24%
Energy III	2005		$	3,800.0	$	3,569.7	$	5,248.6	$	152.3	1.5x	9%	5%			$	3,152.1	$	5,044.9	1.6x	11%
Energy IV	2007		$	5,979.1	$	6,372.8	$	6,950.8	$	443.1	1.2x	5%	1%		(X)	$	5,990.5	$	7,233.7	1.2x	6%
Renew II	2008		$	3,417.5	$	2,833.5	$	3,008.4	$	911.5	1.4x	6%	3%	(X)		$	2,376.5	$	2,948.8	1.2x	5%
All Other Active Funds,	Various				$	5,369.3	$	6,628.8	$	2,215.1	1.6x	8%	7%			$	3,567.0	$	6,632.1	1.9x	11%
Coinvestments and SMAs(19)
Fully Realized Funds, Coinvestments	Various				$	8,060.5	$	10,650.1	$	8.7	1.3x	18%	9%			$	8,060.5	$	10,658.8	1.3x	18%
and SMA's(20)
Total Fully Invested/Committed Funds				$	50,065.5	$	56,809.5	$	13,342.6	1.4x	11%	6%			$	38,221.1	$	57,687.9	1.5x	13%
Funds in the Investment Period(8)
CRP VIII	2017	May-22	$	5,505.1	$	2,350.3	$	251.3	$	2,496.9	1.2x	NM	NM
NGP XII	2017	Jul-22	$	4,277.6	$	2,035.7	$	0.1	$	1,844.4	0.9x	NM	NM
CIEP II	2019	Apr-25	$	2,256.9	$	363.6	$	-	$	342.3	0.9x	NM	NM
CPP II	2014	Apr-21	$	1,526.7	$	1,244.0	$	298.4	$	1,193.4	1.2x	9%	3%
CPI	2016	n/a	$	3,266.6	$	2,714.8	$	511.2	$	2,678.5	1.2x	12%	11%	X	X
CGIOF	2018	Sep-23	$	2,201.4	$	301.1	$	28.8	$	252.4	0.9x	NM	NM
All Other Funds, Coinvestments and	Various				$	1,881.1	$	245.5	$	1,705.2	1.0x	NM	NM
SMAs(21)
Total Funds in the Investment Period				$	10,890.7	$	1,335.3	$	10,513.0	1.1x	7%	0%			$	353.3	$	646.5	1.8x	NM
TOTAL REAL ASSETS(18)					$	60,956.1	$	58,144.7	$	23,855.6	1.3x	11%	6%			$	38,574.3	$	58,334.4	1.5x	13%

See Notes at end of document.	25

Global Credit Fund Performance (Carry Funds Only)

($mm)

GLOBAL CREDIT (CARRY FUNDS ONLY)

Active Fully Invested/Committed Funds(8)

CSP II

CSP III

CEMOF I

CEMOF II

All Other Active Funds, Coinvestments and

SMAs(22)

Fully Realized Funds, Coinvestments and

SMAs(23)

Total Fully Invested/Committed Funds

Funds in the Investment Period(8)

CSP IV

CCOF CSC

All Other Funds, Coinvestments and SMAs(24) Total Funds in the Investment Period

TOTAL GLOBAL CREDIT

										TOTAL INVESTMENTS
										As of June 30, 2020
	Investment
	Period End/				Cumulative									LTM Realized
Fund	Fee	Committed		Invested		Realized		Remaining	MOIC	Gross IRR	Net IRR	In Accrued Carry/	Carry/
Vintage(1)	Stepdown(2)		Capital		Capital(25)		Value(4)		Fair Value(5)	(6)	(9)(17)	(10)(17)	(Clawback)(11)	(Clawback)(12)
2007		$	1,352.3	$	1,352.3	$	2,430.8	$	66.2	1.8x	17%	11%	X
2011		$	702.8	$	702.8	$	846.0	$	199.6	1.5x	22%	12%	X
2011		$	1,382.5	$	1,603.4	$	864.2	$	137.8	0.6x	Neg	Neg
2015		$	2,819.2	$	1,682.0	$	655.2	$	918.3	0.9x	Neg	Neg
Various				$	2,472.3	$	2,465.5	$	362.8	1.1x	7%	2%
Various				$	1,446.5	$	1,988.4	$	-	1.4x	12%	7%
				$	9,259.2	$	9,250.2	$	1,684.8	1.2x	8%	2%
2016	Dec-20	$	2,500.0	$	1,491.5	$	592.9	$	981.8	1.1x	NM	NM
2017	Jun-22	$	2,373.4	$	1,988.2	$	448.7	$	1,730.0	1.1x	16%	10%	X
2017	Aug-20	$	838.2	$	1,107.4	$	469.0	$	614.2	1.0x	Neg	Neg
Various				$	871.5	$	284.4	$	615.8	1.0x	NM	NM
				$	5,458.7	$	1,795.0	$	3,941.8	1.1x	NM	NM
				$	14,717.9	$	11,045.2	$	5,626.6	1.1x	8%	1%

See Notes at end of document.

26

Investment Solutions Fund Performance

(Reported in Local Currency, mm)									TOTAL INVESTMENTS
								As of June 30, 2020
INVESTMENT SOLUTIONS(27)					Cumulative Invested		Realized	Remaining Fair		Total Fair
Fund Vintage		Fund Size		Capital(3)(28)		Value(28)		Value		Value(29)	MOIC(6)	Gross IRR(17)(30)	Net IRR(10)(17)
AlpInvest
Fully Committed Funds(26)
Main Fund I - Fund Investments	2000	€	5,174.6	€	4,344.8	€	7,080.7	€	77.9	€	7,158.6	1.6x	12%	11%
Main Fund II - Fund Investments	2003	€	4,545.0	€	4,917.6	€	7,571.4	€	285.8	€	7,857.2	1.6x	10%	9%
Main Fund III - Fund Investments	2005	€	11,500.0	€	13,201.7	€	19,350.0	€	2,245.0	€	21,595.0	1.6x	10%	9%
Main Fund IV - Fund Investments	2009	€	4,877.3	€	5,502.9	€	6,806.9	€	2,939.0	€	9,745.9	1.8x	16%	15%
Main Fund V - Fund Investments	2012	€	5,080.0	€	5,344.0	€	3,300.4	€	4,813.0	€	8,113.5	1.5x	14%	14%
Main Fund VI - Fund Investments	2015	€	1,106.4	€	907.2	€	309.0	€	903.0	€	1,212.0	1.3x	15%	14%
Main Fund II - Secondary Investments	2003	€	998.4	€	1,028.3	€	1,863.2	€	16.3	€	1,879.5	1.8x	27%	26%
Main Fund III - Secondary Investments	2006	€	2,250.0	€	2,399.0	€	3,611.2	€	57.2	€	3,668.4	1.5x	11%	10%
Main Fund IV - Secondary Investments	2010	€	1,859.1	€	1,979.6	€	3,189.6	€	157.1	€	3,346.7	1.7x	19%	18%
Main Fund V - Secondary Investments	2011	€	4,272.8	€	4,208.3	€	5,191.7	€	1,667.3	€	6,859.0	1.6x	19%	18%
Main Fund III - Co-Investments	2006	€	2,760.0	€	2,838.5	€	3,611.1	€	448.8	€	4,059.8	1.4x	6%	5%
Main Fund IV - Co-Investments	2010	€	1,475.0	€	1,374.3	€	3,262.4	€	327.5	€	3,589.9	2.6x	23%	21%
Main Fund V - Co-Investments	2012	€	1,124.2	€	1,059.4	€	1,871.6	€	909.8	€	2,781.4	2.6x	29%	27%
Main Fund VI - Co-Investments	2014	€	1,114.6	€	950.7	€	1,262.3	€	896.3	€	2,158.6	2.3x	27%	25%
Main Fund II - Mezzanine Investments	2004	€	700.0	€	767.7	€	1,051.0	€	8.7	€	1,059.6	1.4x	7%	7%
Main Fund III - Mezzanine Investments	2006	€	2,000.0	€	2,018.3	€	2,562.6	€	153.2	€	2,715.9	1.3x	10%	9%
All Other Active Funds(31)	Various			€	2,754.3	€	1,709.5	€	1,499.8	€	3,209.3	1.2x	5%	3%
Fully Realized Funds	Various			€	2,140.0	€	4,845.4	€	1.5	€	4,846.9	2.3x	35%	32%
Total Fully Committed Funds				€	57,736.6	€	78,450.0	€	17,407.3	€	95,857.3	1.7x	13%	12%
Funds in the Commitment Period(26)
Main Fund VI - Secondary Investments	2017	€	5,180.6	€	3,837.2	€	585.0	€	3,736.8	€	4,321.8	1.1x	9%	6%
Main Fund VII - Secondary Investments	2020	€	4,333.4	€	96.2	€	0.1	€	96.0	€	96.1	1.0x	NM	NM
Main Fund VII - Co-Investments	2017	€	2,491.3	€	1,649.1	€	52.9	€	1,715.7	€	1,768.6	1.1x	5%	2%
All Other Funds(31)	Various			€	1,652.1	€	29.7	€	1,773.8	€	1,803.5	1.1x	8%	6%
Total Funds in the Committment Period				€	7,234.5	€	667.8	€	7,322.2	€	7,990.0	1.1x	8%	5%
TOTAL ALPINVEST				€	64,971.1	€	79,117.8	€	24,729.5	€	103,847.3	1.6x	13%	12%
TOTAL ALPINVEST (USD)(32)				$	73,050.5	$	88,956.3	$	27,804.7	$	116,761.1	1.6x
Metropolitan Real Estate
Active Fully Committed Funds	Various	$	2,746.9	$	1,008.0	$	860.4	$	442.1	$	1,302.6	1.3x	7%	4%
Fully Realized Funds	Various	$	611.2	$	2,128.2	$	2,590.4	$	136.6	$	2,727.0	1.3x	4%	2%
Total Fully Committed Funds(26)				$	3,136.2	$	3,450.9	$	578.7	$	4,029.6	1.3x	6%	4%
MRE Secondaries Fund II	2017	$	1,198.2	$	304.6	$	70.7	$	261.5	$	332.1	1.1x	7%	Neg
All Other Funds in the Commitment Period	Various	$	555.1	$	126.1	$	8.9	$	117.8	$	126.7	1.0x	NM	NM
Total Funds in the Commitment Period(26)				$	430.7	$	79.5	$	379.3	$	458.8	1.1x	6%	Neg
TOTAL METROPOLITAN REAL ESTATE				$	3,566.9	$	3,530.4	$	958.0	$	4,488.4	1.3x	6%	3%

See Notes at end of document.

27

Reconciliation & Disclosures

28

Reconciliation for Distributable Earnings Per Share (Unaudited)

(Dollars in millions,			2Q'19		3Q'19		4Q'19		1Q'20		2Q'20			YTD 2Q'20			LTM 2Q'20		QoQ	YoY	LTM
except per share data and where noted)
FEE RELATED EARNINGS	$	132.7	$	108.8	$	108.0	$	128.8	$	127.3		$	256.1		$	472.9	(1)%	(4)%	(5)%
DISTRIBUTABLE EARNINGS	$	213.4	$	160.7	$	171.7	$	175.0	$	198.4		$	373.4		$	705.8	13%	(7)%	(4)%
DISTRIBUTABLE EARNINGS, TAX AND PER SHARE INFORMATION 1
Distributable Earnings	$	213.4	$	160.7	$	171.7	$	175.0	$	198.4		$	373.4		$	705.8
Less: Estimated current corporate, foreign, state			8.8		8.5		5.2		7.7		10.7			18.4			32.1
and local taxes 2
Less: Preferred share distributions			5.9		7.3		-		-		-			-			7.3
DISTRIBUTABLE EARNINGS, NET	$	198.7	$	144.9	$	166.5	$	167.3	$	187.7		$	355.0		$	666.4
attributable to common stockholders
DISTRIBUTABLE EARNINGS, NET		$	0.57	$	0.41	$	0.47	$	0.48	$	0.53		$	1.01		$	1.89
per common share outstanding
Dividend per common share*	$	0.43	$	0.31	$	0.25	$	0.25	$	0.25		$	0.50		$	1.06
TOTAL OUTSTANDING SHARES (in millions)			341.2		346.7		347.2		348.4		348.7			348.7			348.7
Shares eligible for dividend (in millions)**			116.1		117.8		349.4		348.7		353.3			353.3			353.3

• Our dividend policy as a Corporation is to pay dividends in an initial amount of $0.25 per share of common stock ($1.00 annually), beginning with the 4Q'19 dividend paid to shareholders in February 2020. See Notes at the end of the document for our Dividend Policy.

• Shares eligible for dividend include 4.6 million common shares that will be issued in May 2020 in connection with the vesting of restricted stock units. For purposes of this calculation, these common shares have been added to the common shares outstanding as of March 31, 2020 because they will participate in the dividend paid on common shares in May 2020.

Totals may not sum due to rounding. Information reported for periods prior to the Conversion on January 1, 2020 reflect the results of the Partnership. See Notes at end of document.

29

Reconciliation of GAAP to Total Segment Information

(Dollars in millions)

INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES

Adjustments:

Net unrealized performance revenues

Unrealized principal investment (income) loss1

Adjusted unrealized principal investment (income) loss from Fortitude Re

Equity-based compensation2

Acquisition related charges, including amortization of intangibles and impairment

Other non-operating expense (income)

Tax (expense) benefit associated with certain foreign performance revenues

Net (income) loss attributable to non- controlling interests in consolidated entities

Lease assignment and termination costs

Debt extinguisment costs

Corporate conversion costs, severance and other adjustments

DISTRIBUTABLE EARNINGS

Realized net performance revenues 3

Realized principal investment income 3

Net interest

FEE RELATED EARNINGS

	2Q'19		3Q'19		4Q'19		1Q'20		2Q'20		YTD 2Q'19	YTD 2Q'20			FY'18		FY'19	LTM 2Q'20
$	542.0	$	261.4	$	(40.3)	$	(789.0)	$	256.8	$	1,012.3	$	(532.2)	$	360.2	$	1,233.4	$	(311.1)
	(82.4)		126.2		69.7		528.9		(587.4)			(238.2)		(58.5)			50.2		(42.3)		137.4
	(234.9)		(198.7)		81.3		264.7		459.5			(473.5)		724.2			(48.8)		(590.9)		606.8
	(40.1)		(68.1)		(5.7)		22.8		81.6			(67.1)		104.4			(11.7)		(140.9)		30.6
	38.3		38.9		34.9		31.7		34.6			77.7		66.3			252.2		151.5		140.1
	15.4		11.2		13.4		3.0		7.1			27.4		10.1			22.3		52.0		34.7
	0.4		0.3		0.3		0.2		0.5			0.7		0.7			1.1		1.3		1.3
	3.6		(10.8)		(1.0)		11.2		0.7			(2.5)		11.9			(1.5)		(14.3)		0.1
	(39.8)		(10.5)		9.2		97.0		(58.6)			(35.3)		38.4			(33.9)		(36.6)		37.1
	-		-		-		-		-			-		-			66.9		-		-
	-		-		-		-		-			0.1		-			7.8		0.1		-
	10.9		10.8		9.9		4.5		3.6			12.6		8.1			9.1		33.3		28.8
$	213.4	$	160.7	$	171.7	$	175.0	$	198.4	$	314.2	$	373.4	$	673.9	$	646.6	$	705.8
	20.8		57.7		78.6		48.2		70.9			27.8		119.1			319.7		164.1		255.4
	73.9		7.3		1.7		15.9		22.1			78.0		38.0			48.1		87.0		47.0
	14.0		13.1		16.6		17.9		21.9			27.6		39.8			44.3		57.3		69.5
$	132.7	$	108.8	$	108.0	$	128.8	$	127.3		$	236.0	$	256.1		$	350.4	$	452.8	$	472.9

1. The U.S. GAAP results for 2Q'20 include a loss in principal investment income (loss) of $(621) million related to the closing of the transaction in which a Carlyle-affiliated investment fund purchased additional interests in Fortitude from AIG. The loss is driven by the contribution of our existing 19.9% investment in Fortitude into the fund, and the subsequent accounting for our investment based on the net asset value of our limited partnership interest in the fund rather than a direct investment in Fortitude.
2. Equity-basedcompensation includes amounts reflected in principal investment income and general, administrative and other expense in our U.S. GAAP statement of operations, as well as amounts related to shares issued in conjunction with a previous acquisition. 2018 includes amounts related to the IPO.
3. The most directly comparable U.S. GAAP measures are net performance revenues (performance revenues less performance revenues related compensation expense) and principal investment

income (loss). See Notes at end of document for a description of adjustments to these measures to arrive at realized net performance revenues and realized principal investment income.	30
Information reported for periods prior to January 1, 2020 reflect the results of the Partnership.

Reconciliation of GAAP to Total Segment Information, continued

	Total Reportable		Consolidated		Reconciling		Carlyle	Total Reportable		Consolidated		Reconciling		Carlyle
(Dollars in millions)		Segments		Funds		Items		Consolidated1		Segments		Funds		Items		Consolidated1
			Three Months Ended June 30, 2019						Year to Date June 30, 2019
Revenues	$	550.7	$	45.8	$	464.6	$	1,061.1 2	$	1,001.6	$	98.2	$	1,048.3	$	2,148.1 2

Expenses	$	337.3	$	36.8	$	154.2	$	528.3
Other income (loss)	$	-	$	9.2	$	-	$	9.2
Distributable Earnings	$	213.4	$	18.2	$	310.4	$	542.0
		Three Months Ended September 30, 2019
Revenues	$	527.8	$	51.3	$	189.5	$	768.6

2	$	687.4	$	80.5	$	362.9	$	1,130.8	2
3	$	-	$	(5.0)	$	-	$	(5.0) 3
4	$	314.2	$	12.7	$	685.4	$	1,012.3	4
				Year to Date June 30, 2020
2	$	1,163.3	$	108.2	$	(886.2)	$	385.3	2

Expenses	$	367.1	$	44.1	$	94.1	$	505.3
Other income (loss)	$	-	$	(1.9)	$	-	$	(1.9)
Distributable Earnings	$	160.7	$	5.3	$	95.4	$	261.4
		Three Months Ended December 31, 2019
Revenues	$	580.7	$	49.7	$	(170.1)	$	460.3

2	$	789.9	$	100.9	$	(36.1)	$	854.7	2
3	$	-	$	(62.8)	$	-	$	(62.8)	3
4	$	373.4	$	(55.5)	$	(850.1)	$	(532.2)	4
			Year Ended December 31, 2018
2	$	2,185.9	$	214.5	$	26.8	$	2,427.2	2

Expenses	$	409.0	$	41.0	$	33.6	$	483.6	2	$	1,512.0	$	213.3	$	346.2	$	2,071.5	2
Other income (loss)	$	-	$	(17.0)	$	-	$	(17.0)	3	$	-	$	4.5	$	-	$	4.5	3
Distributable Earnings	$	171.7	$	(8.3)	$	(203.7)	$	(40.3)	4	$	673.9	$	5.7	$	(319.4)	$	360.2	4
		Three Months Ended March 31, 2020						Year Ended December 31, 2019
Revenues	$	581.1	$	53.0	$	(1,379.8)	$	(745.7)	2	$	2,110.1	$	199.2	$	1,067.7	$	3,377.0	2

Expenses	$	406.1	$	53.8	$	(529.7)	$	(69.8)
Other income (loss)	$	-	$	(113.1)	$	-	$	(113.1)
Distributable Earnings	$	175.0	$	(113.9)	$	(850.1)	$	(789.0)
			Three Months Ended June 30, 2020
Revenues	$	582.2	$	55.2	$	493.6	$	1,131.0

2	$	1,463.5	$	165.6	$	490.6	$	2,119.7	2
3	$	-	$	(23.9)	$	-	$	(23.9) 3
4	$	646.6	$	9.7	$	577.1	$	1,233.4	4
			Twelve Months Ended June 30, 2020
2	$	2,271.8	$	209.2	$	(866.8)	$	1,614.2	2

Expenses	$	383.8	$	47.1	$	493.6	$	924.5
Other income (loss)	$	-	$	50.3	$	-	$	50.3
Distributable Earnings	$	198.4	$	58.4	$	-	$	256.8

2	$	1,566.0	$	186.0	$	91.6	$	1,843.6	2
3									3
$	-	$	(81.7)	$	-	$	(81.7)
4									4
$	705.8	$	(58.5)	$	(958.4)	$	(311.1)

(1)	The Distributable Earnings in the Carlyle Consolidated column is income before provision for income taxes, which is the GAAP measure that is most directly comparable to Distributable Earnings.
(2)	See detailed breakdown of revenue and expense adjustments on page 32.
(3)	The Other Income (Loss) adjustment results from the Consolidated Funds which were eliminated in consolidation to arrive at Carlyle's total Other Income (Loss).	31
(4)	See the reconciliation for Distributable Earnings and Fee Related Earnings on page 30.

Reconciliation of GAAP to Total Segment Information, continued

(Dollars in millions)

REVENUE RECONCILING ITEMS

Unrealized performance revenues

Unrealized principal investment income (loss)

Adjusted unrealized principal invesment income (loss) from Fortitude Re

Adjustments related to expenses associated with NGP Management and its affiliates

Tax expense (benefit) associated with certain performance revenues

Non-Carlyle economic interests in acquired businesses and other adjustments to present certain costs on a net basis

Elimination of revenues of Consolidated Funds

Total Revenue Reconciling Items

EXPENSE RECONCILING ITEMS

Unrealized performance revenues related compensation

Equity-based compensation

Acquisition-related charges, including amortization of intangibles and impairment

Other non-operating expense (income)

Tax (expense) benefit associated with certain foreign performance revenues related compensation

Non-Carlyle economic interests in acquired businesses and other adjustments to present certain costs on a net basis

Lease assignment and termination costs

Debt extinguisment costs

Corporate conversions costs, severance and other adjustments

Elimination of expenses of Consolidated Funds

Total Expense Reconciling Items

	2Q'19		3Q'19		4Q'19		1Q'20		2Q'20
$	167.3	$	(87.4)	$	(113.9)	$	(1,109.0)	$	1,037.1
	234.9		198.7		(81.3)		(264.7)		(459.5)
	40.1		68.1		5.7		(22.8)		(81.6)
	(4.1)		(4.1)		(4.0)		(3.9)		(3.9)
	-		0.2		0.1		-		0.1
	42.7		29.3		25.1		(77.7)		56.8
	(16.3)		(15.3)		(1.8)		98.3		(55.4)
$	464.6	$	189.5	$	(170.1)	$	(1,379.8)	$	493.6
$	84.9	$	38.8	$	(44.2)	$	(580.1)	$	449.7
	38.3		38.9		34.9		31.7		34.6
	15.4		11.2		13.4		3.0		7.1
	0.4		0.3		0.3		0.2		0.5
	3.6		(10.8)		(1.0)		11.2		0.7
	10.0		14.9		29.2		8.0		5.2
	-		-		-		-		-
	-		-		-		-		-
	10.9		10.8		9.9		4.5		3.6
	(9.3)		(10.0)		(8.9)		(8.2)		(7.8)
$	154.2	$	94.1	$	33.6	$	(529.7)	$	493.6

YTD 2Q'19 YTD 2Q'20

$	469.1	$	(71.9)
	473.5		(724.2)
	67.1		(104.4)
	(8.1)		(7.8)
	-		0.1
	63.1		(20.9)
	(16.4)		42.9
$	1,048.3	$	(886.2)
$	230.9	$	(130.4)
	77.7		66.3
	27.4		10.1
	0.7		0.7
	(2.5)		11.9
	30.9		13.2

- -

0.1 -

12.6 8.1

	(14.9)		(16.0)
$	362.9	$	(36.1)

	FY'18		FY'19	LTM 2Q'20
$	(42.7)	$	267.8	$ (273.2)
	48.8		590.9	(606.8)
	11.7		140.9	(30.6)
	(18.9)		(16.2)	(15.9)
	(4.9)		0.3	0.4
	92.5		117.5	33.5
	(59.7)		(33.5)	25.8

• 26.8 $ 1,067.7 $ (866.8)

$	7.4	$	225.5	$	(135.8)
	252.2		151.5		140.1
	22.3		52.0		34.7
	1.1		1.3		1.3
	(6.2)		(14.3)		0.1
	34.3		75.0		57.3
	66.9		-		-
	7.8		0.1		-
	9.1		33.3		28.8
	(48.7)		(33.8)		(34.9)
$	346.2	$	490.6	$	91.6

32

Reconciliation for Total Segment Information, continued

RECONCILIATION OF TOTAL INVESTMENTS

ATTRIBUTABLE TO THE CARLYLE GROUP INC.

(Dollars in millions)	06/30/20
INVESTMENTS, EXCLUDING PERFORMANCE ALLOCATIONS	$	2,183.8
Less: Amounts attributable to non-controlling interests in			(165.2)
Consolidated Funds
Plus: Investments in Consolidated Funds, eliminated in			93.1
consolidation
Less: Strategic equity method investments in NGP			(378.2)
Management1
TOTAL INVESTMENTS ATTRIBUTABLE TO			1,733.5
THE CARLYLE GROUP INC.
Less: CLO loans and other borrowings attributable to The			(310.4)
Carlyle Group Inc.2
TOTAL INVESTMENTS ATTRIBUTABLE TO THE CARLYLE GROUP	$	1,423.1
INC., NET OF CLO LOANS AND OTHER BORROWINGS

RECONCILIATION OF

ACCRUED PERFORMANCE ALLOCATIONS

(Dollars in millions)

ACCRUED PERFORMANCE ALLOCATIONS, NET OF ACCRUED GIVEBACK OBLIGATIONS

Plus: Accrued performance allocations from NGP Carry Funds3

Less: Accrued performance allocation-related expense

Plus: Receivable for giveback obligation from current and former employees

Less: Deferred taxes on accrued performance allocations

Less: Net accrued performance allocations attributable to non-controlling interests in consolidated entities

NET ACCRUED PERFORMANCE REVENUES BEFORE TIMING DIFFERENCES

Plus: Timing differences between the period when accrued performance allocations are realized and the period they are collected/distributed

NET ACCRUED PERFORMANCE REVENUES ATTRIBUTABLE TO THE CARLYLE GROUP INC.

06/30/20

• 3,769.2
  -

(1,946.2)

1.4

(41.6)

0.6

1,783.4

(0.1)

• 1,783.3

1. The Company has equity interests in NGP Management Company, L.L.C. ("NGP Management"), the general partners of certain carry funds advised by NGP, and principal investments in certain NGP funds. These equity interests are accounted for as investments under the equity method of accounting. Total investments attributable to The Carlyle Group Inc. excludes the strategic equity method investment in NGP Management and investments in the general partners of certain NGP carry funds.
2. Of the $328.4 million in CLO loans and other borrowings as of June 30, 2020, $310.4 million are collateralized by investments attributable to The Carlyle Group Inc.

(3) Accrued performance allocations are presented as an investment in the U.S. GAAP balance sheet.

33

GAAP Statement of Operations (Unaudited)

(Dollars in millions, except per share amounts)		2Q'19		2Q'20
REVENUES
Fund management fees		$	390.9	$	371.8
Incentive fees			8.8		9.0
Investment income (loss)
Performance allocations			247.6		1,191.8
Principal investment income (loss)			342.0		(512.6)
Total investment income (loss)			589.6		679.2
Interest and other income			26.0		15.8
Interest and other income of Consolidated Funds		45.8		55.2
Total Revenues		1,061.1		1,131.0
EXPENSES
Compensation and benefits
Cash-based compensation and benefits			221.4		212.5
Equity-based compensation			35.2		30.5
Performance allocations and incentive fee related compensation			113.6		535.6
Total compensation and benefits			370.2		778.6
General, administrative and other expenses			110.7		80.2
Interest			19.5		25.9
Interest and other expenses of Consolidated Funds			27.5		39.3
Other non-operating expenses		0.4		0.5
Total Expenses		528.3		924.5
Net investment gains (losses) of consolidated funds			9.2		50.3
Income (loss) before provision for income taxes			542.0		256.8
Provision (benefit) for income taxes			15.5		52.3
Net income (loss)			526.5		204.5
Net income (loss) attributable to non-controlling interests in consolidated entities			39.8		58.6
Net income (loss) attributable to Carlyle Holdings			486.7		145.9
Net income attributable to non-controlling interests in Carlyle Holdings			332.6		-
Net income (loss) attributable to The Carlyle Group Inc.			154.1		145.9
Net income attributable to Series A Preferred Unitholders			5.9		-
Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders		$	148.2	$	145.9
Net income (loss) attributable to The Carlyle Group Inc. per common share
Basic	$	1.34	$	0.42
Diluted		$	1.23	$	0.41

YTD 2Q'19 YTD 2Q'20

$ 744.3 $ 727.7

16.9 17.9

596.7 254.2

643.8 (765.9)

1,240.5 (511.7)

48.2 43.2

98.2 108.2

2,148.1

385.3

431.9 416.8

71.2 59.6

299.0 93.1

802.1 569.5

223.2 149.8

39.2 49.8

65.6 84.9

0.7 0.7

1,130.8

854.7

(5.0) (62.8)

1,012.3 (532.2)

39.5 (27.7)

972.8 (504.5)

35.3 (38.4)

937.5 (466.1)

640.5 -

297.0 (466.1)

11.8 -

$	285.2	$	(466.1)
$	2.60	$	(1.34)
$	2.41	$	(1.34)

On January 1, 2020, The Carlyle Group L.P. (the "Partnership") completed its conversion from a Delaware limited partnership to a Delaware corporation, The Carlyle Group Inc. Information reported for
periods prior to the Conversion on January 1, 2020 reflect the results of the Partnership. For periods subsequent to Conversion, Net income (loss) attributable to Carlyle Holdings refers to the Net
income (loss) of The Carlyle Group Inc. and its consolidated subsidiaries, net of non-controlling interests in consolidated entities. LTM results for the provision (benefit) for income taxes and net income
(loss) attributable to Carlyle Holdings are not meaningful due to the change in our structure in connection with the Conversion. See Notes at end of document.	34

GAAP Balance Sheet (Unaudited)

				As of June 30, 2020
		Consolidated		Consolidated
(Dollars in millions)	Operating Entities		Funds		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	$	554.5	$	-	$	-	$	554.5
Cash and cash equivalents of Consolidated Funds		-		98.0		-		98.0
Restricted cash		4.5		-		-		4.5
Investments, including performance allocations of $3,792.2 million		6,069.1		-		(93.1)		5,976.0
Investments of Consolidated Funds		-		4,581.2		-		4,581.2
Due from affiliates and other receivables, net		281.5		-		(5.7)		275.8
Due from affiliates and other receivables of Consolidated Funds, net		-		142.5		-		142.5
Fixed assets, net		122.3		-		-		122.3
Lease right-of-use assets, net		189.6		-		-		189.6
Deposits and other		56.4		0.3		-		56.7
Intangible assets, net		55.1		-		-		55.1
Deferred tax assets		266.5		-		-		266.5
Total assets	$	7,599.5	$	4,822.0	$	(98.8)	$	12,322.7
LIABILITIES & EQUITY
Debt obligations	$	1,943.7	$	-	$	-	$	1,943.7
Loans payable of Consolidated Funds		-		4,517.5		-		4,517.5
Accounts payable, accrued expenses and other liabilities		316.6		-		-		316.6
Accrued compensation and benefits		2,359.5		-		-		2,359.5
Due to affiliates		458.8		-		-		458.8
Deferred revenue		51.6		-		-		51.6
Deferred tax liabilities		36.9		-		-		36.9
Other liabilities of Consolidated Funds		-		205.5		-		205.5
Lease liabilities		266.9		-		-		266.9
Accrued giveback obligations		23.0		-		-		23.0
Total liabilities		5,457.0		4,723.0		-		10,180.0
Total equity		2,142.5		99.0		(98.8)		2,142.7
Total liabilities and equity	$	7,599.5	$	4,822.0	$	(98.8)	$	12,322.7

35

Notes

Dividend Policy

Under our dividend policy for our common stock that we adopted in connection with the Conversion, we expect to pay our common stockholders an annualized dividend of $1.00 per share of common stock, equal to a quarterly dividend of $0.25 per share of common stock. The declaration and payment of any dividends to holders of our common stock are subject to the discretion of our Board of Directors, which may change our dividend policy at any time or from time to time, and the terms of our certificate of incorporation. There can be no assurance that dividends will be made as intended or at all or that any particular dividend policy will be maintained.

Non-GAAP Financial Measures

This press release contains financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America. These non-GAAP financial measures should be considered in addition to and not as a substitute for, or superior to, financial measures presented in accordance with U.S. GAAP. The reasons management believes that these non-GAAP financial measures provide useful information are set forth in our most recent Annual Report on Form 10-K filed with the SEC.

Notes on Carlyle Consolidated GAAP Results (Page 5)

1. Income (loss) before provision for income taxes is the GAAP measure that is most directly comparable to Distributable Earnings, which management uses to measure the performance of the business. A full reconciliation is included starting on page 29.
2. Income (loss) before provision for taxes margin is equal to Income (loss) before provision for taxes, divided by Total revenues.

Note on Fee Related Earnings (Page 9)

(1) FRE Margin is calculated as Fee Related Earnings, divided by Total Segment Fee Revenues.

Notes on Performance Revenues (Page 10)

1. We generally earn performance revenues (or carried interest) from our carry funds representing a 20% allocation of profits generated on third-party capital, and on which the general partner receives a special residual allocation of income from limited partners, which we refer to as carried interest, in the event that specified investment returns are achieved by the fund. Disclosures referring to carry funds also include the impact of certain commitments that do not earn carried interest, but are either part of, or associated with our carry funds. The rate of carried interest, as well as the share of carried interest allocated to Carlyle, may vary across the carry fund platform. See "Non-GAAP Financial Information and Other Key Terms" for more information.
2. Includes the change in performance revenue accrual driven by positive or negative movements in portfolio valuation, incremental preferred return and fees, foreign exchange fluctuations and acquisition/divestiture activity.

Notes on Assets Under Management (Pages 11-13)

1. Total Assets Under Management refers to the assets we manage or advise, and reflects the sum of the unrealized Fair Value of Investments and Available Capital.
2. Available Capital refers to the amount of capital commitments available to be called for investments, which may be reduced for equity invested that is funded via fund credit facility and expected to be called from investors at a later date, plus any additional assets/liabilities at the fund level other than active investments. Amounts previously called may be added back to available capital following certain distributions.
3. Credit & Other (Non-Carry Funds) includes our CLOs, business development companies and related managed accounts, the Carlyle Tactical Private Credit Fund, securitization vehicles and various managed accounts in our Carlyle Aviation business, AUM related to capital raised from third-party investors to acquire a 76.6% interest in Fortitude Holdings, the NGP Predecessor funds and certain other managed account vehicles. Carry funds in the Global Credit segment are included in "Traditional Carry Funds"
4. Fair Value of Investments generally reflects the unrealized carrying value of investments for all carry funds, related co-investment vehicles and separately managed accounts, the aggregate collateral balance of our CLOs and other securitization vehicles, and the gross asset value of our business development companies.
5. The In-Carry Ratio represents the percentage of Fair Value in our Traditional Carry Funds (Corporate Private Equity, Real Assets and Global Credit), which is accruing performance revenue as of the quarter-end reporting date. This metric does not address the realization of performance revenue.
6. Reflects the percentage of Fair Value in our traditional carry funds attributable to investments originated in Q4 2015 or prior. Investments that include follow-on tranches are fully recognized based on the date of the initial investment activity.

36

Notes, continued

Notes on Assets Under Management (Pages 11-13) (continued)

1. Fee-earningAssets Under Management refers to the assets we manage or advise from which we derive recurring fund management fees, and is calculated as the basis on which management fees would be called, if called on the effective reporting date.
2. Pending Fee-earning Assets Under Management refers to commitments that have been raised, and will become Fee-earning Assets Under Management upon the activation of recurring fund management fees on the commitments, or as the capital is invested, depending on the fee structure of the fund or vehicle.

Note on Q2 2020 Key Metric Activity (Page 14)

(1) Total for Real Assets includes Legacy Energy funds. The impact of these funds is no longer significant to our results of operations.

Note on Investment Solutions (Page 19)

(1) Includes Mezzanine funds.

Notes on Total AUM Roll Forward (Page 23)

1. Inflows generally reflects the impact of gross fundraising during the period. For funds or vehicles denominated in foreign currencies, this reflects translation at the average quarterly rate, while the separately reported Fundraising metric is translated at the spot rate for each individual closing. New CLO warehouse assets are recognized as an inflow to AUM, while corresponding fundraising will not be recognized until CLO issuance.
2. Outflows includes distributions net of recallable or recylable amounts in our carry funds, related co-investment vehicles, separately managed accounts and the NGP Predecessor Funds, gross redemptions in our open-ended funds, runoff of CLO collateral balances and the expiration of available capital.
3. Market Activity & Other generally represents realized and unrealized gains (losses) on portfolio investments in our carry funds and related co-investment vehicles, the NGP Predecessor Funds and separately managed accounts, as well as the net impact of fees, expenses and non-investment income, change in gross asset value for our business development companies and other changes in AUM.
4. Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.
5. The fair market values for our Investment Solutions carry funds are based on the latest available valuations of the underlying limited partnership interests (in most cases as of March 31, 2020) as provided by their general partners, plus the net cash flows since the latest valuation, up to June 30, 2020.

Notes on Fee-earning AUM Roll Forward (Page 23)

1. Inflows represents limited partner capital raised by our carry funds or separately managed accounts for which management fees based on commitments were activated during the period, the fee-earning commitments invested in vehicles for which management fees are based on invested capital, the fee-earning collateral balance of new CLO issuances, as well as gross subscriptions in vehicles for which management fees are based on net asset value. Inflows exclude fundraising amounts during the period for which fees have not yet been activated, which are referenced as Pending Fee-earning AUM.
2. Outflows represents the impact of realizations from vehicles with management fees based on remaining invested capital at cost or fair value, changes in basis for funds where the investment period, weighted-average investment period or commitment fee period has expired during the period, reductions for funds that are no longer calling for management fees, gross redemptions in open-ended funds, and runoff of CLO collateral balances. Realizations for funds earning management fees based on commitments during the period do not affect Fee-earning AUM.
3. Market Activity & Other represents realized and unrealized gains (losses) on portfolio investments in our carry funds based on the lower of cost or fair value and net asset value, as well as activity of funds with fees based on gross asset value.
4. Foreign Exchange represents the impact of foreign exchange rate fluctuations on the translation of our non-U.S. dollar denominated funds. Activity during the period is translated at the average rate for the period. Ending balances are translated at the spot rate as of the period end.
5. Energy III, Energy IV, and Renew II (collectively, the "Legacy Energy Funds"), are managed with Riverstone Holdings LLC and its affiliates. Affiliates of both Carlyle and Riverstone act as investment advisers to each of the Legacy Energy Funds. Carlyle has a minority representation on the management committees of Energy IV and Renew II. Carlyle and Riverstone each hold half of the seats on the management committee of Energy III, but the investment period for this fund has expired and the remaining investments in such fund are being disposed of in the ordinary course of business.

37

Notes, continued

Notes on Fund Performance Tables (Pages 24-27)

1. The data presented herein that provides "inception to date" performance results of our segments relates to the period following the formation of the first fund within each segment. For our Corporate Private Equity segment our first fund was formed in 1990. For our Real Assets segment our first fund was formed in 1997. For our Global Credit segment our first carry fund was formed in 2004.
2. Represents the fund's investment period end date or, if different, the date at which the management fee calculation basis is scheduled to step down from commitments to remaining invested capital at cost (where applicable). This measure is only relevant and reported for funds currently in the investment period.
3. Represents the original cost of investments since inception of the fund.
4. Represents all realized proceeds since inception of the fund.
5. Represents remaining fair value, before management fees, expenses and carried interest, and may include remaining escrow values for realized investments.
6. Multiple of invested capital ("MOIC") represents total fair value, before management fees, expenses and carried interest, divided by cumulative invested capital.
7. An investment is considered realized when the investment fund has completely exited, and ceases to own an interest in, the investment. An investment is considered partially realized when the total amount of proceeds received in respect of such investment, including dividends, interest or other distributions and/or return of capital, represents at least 85% of invested capital and such investment is not yet fully realized. Because part of our value creation strategy involves pursuing best exit alternatives, we believe information regarding Realized/Partially Realized MOIC and Gross IRR, when considered together with the other investment performance metrics presented, provides investors with meaningful information regarding our investment performance by removing the impact of investments where significant realization activity has not yet occurred. Realized/Partially Realized MOIC and Gross IRR have limitations as measures of investment performance, and should not be considered in isolation. Such limitations include the fact that these measures do not include the performance of earlier stage and other investments that do not satisfy the criteria provided above. The exclusion of such investments will have a positive impact on Realized/Partially Realized MOIC and Gross IRR in instances when the MOIC and Gross IRR in respect of such investments are less than the aggregate MOIC and Gross IRR. Our measurements of Realized/Partially Realized MOIC and Gross IRR may not be comparable to those of other companies that use similarly titled measures. We do not present Realized/ Partially Realized performance information separately for funds that are still in the investment period because of the relatively insignificant level of realizations for funds of this type. However, to the extent such funds have had realizations, they are included in the Realized/Partially Realized performance information presented for Total Corporate Private Equity and Total Real Assets.
8. Fully Invested funds are past the expiration date of the investment period as defined in the respective limited partnership agreement. In instances where a successor fund has had its first capital call, the predecessor fund is categorized as fully invested.
9. Gross Internal Rate of Return ("Gross IRR") represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and unrealized value before management fees, expenses and carried interest.
10. Net Internal Rate of Return ("Net IRR") represents the annualized IRR for the period indicated on Limited Partner invested capital based on contributions, distributions and
    unrealized value after management fees, expenses and carried interest. Fund level IRRs are based on aggregate Limited Partner cash flows, and this blended return may differ from that of individual Limited Partners. As a result, certain funds may generate accrued performance revenues with a blended Net IRR that is below the preferred return hurdle for that fund.
11. Fund has a net accrued performance fee balance/(giveback obligation) as of the current quarter end, driven by a significant portion of the fund's asset base.
12. Fund has generated realized net performance fees/(realized giveback) in the last twelve months.
13. Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried interest.
14. Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us: CVP II, MENA, CCI, CSSAF I, CSABF, and CPF.
15. Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us: CP I, CP II, CP III, CP IV, CEP I, CAP I, CAP II, CBPF I, CJP I, CMG, CVP I, CUSGF III, CGFSP I, CEVP I, CETP I, CETP II, CAVP I, CAVP II, CAGP III and Mexico.
16. Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us: CAGP V and CBPF II.
17. For funds marked "NM," IRR may be positive or negative, but is considered not meaningful because of the limited time since initial investment and early stage of capital deployment. For funds marked "Neg," IRR is negative as of reporting period end.
18. For purposes of aggregation, funds that report in foreign currency have been converted to U.S. dollars at the reporting period spot rate.
19. Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us: NGP GAP and CPOCP.
20. Aggregate includes the following funds: CRP I, CRP II, CRCP I, CAREP I, CAREP II, CEREP I, CEREP II, Energy I, Energy II, Renew I, and CIP.
21. Aggregate includes CCR, CRSEF, and CER. Return is not considered meaningful, as the investment period commenced in October 2016 for CCR, December 2019 for CRSEF, and

December 2017 for CER.

38

Notes, continued

Notes on Fund Performance Tables (Pages 24-27), continued

1. Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us: SASOF II and SASOF III.
2. Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us: CSP I, CMP I, CMP II, and CASCOF.
3. Aggregate includes the following funds, as well as related co-investments, separately managed accounts (SMAs), and certain other stand-alone investments arranged by us:
   SASOF IV.
4. Represents the original cost of investments net of investment level recallable proceeds which is adjusted to reflect recyclability of invested capital for the purpose of calculating the fund MOIC.
5. Fully Committed funds are past the expiration date of the commitment period as defined in the respective limited partnership agreement.
6. Includes private equity and mezzanine primary fund investments, secondary fund investments and co-investments originated by the AlpInvest team, as well as real estate primary fund investments, secondary fund investments and co-investments originated by the Metropolitan Real Estate team. Excluded from the performance information shown are a) investments that were not originated by AlpInvest, and b) Direct Investments, which was spun off from AlpInvest in 2005, and c) LP co-investment vehicles advised by AlpInvest. As of June 30, 2020, these excluded investments represent $0.4 billion of AUM at AlpInvest.
7. To exclude the impact of FX, all AlpInvest foreign currency cash flows have been converted to Euro at the reporting period spot rate.
8. Represents all realized proceeds combined with remaining fair value, before management fees, expenses and carried interest. To exclude the impact of FX, all AlpInvest foreign currency cash flows have been converted to Euro at the reporting period spot rate.
9. Gross Internal Rate of Return ("Gross IRR") represents the annualized IRR for the period indicated on Limited Partner invested capital based on investment contributions, distributions and unrealized value of the underlying investments, before management fees, expenses and carried interest at the AlpInvest/Metropolitan Real Estate level.
10. Aggregate includes Main Fund VII - Fund Investments, Main Fund VIII - Fund Investments, Main Fund IX - Fund Investments, Main Fund X - Fund Investments, Main Fund XI - Fund Investments, Main Fund IV - Mezzanine Investments, Main Fund V - Mezzanine Investments, AlpInvest CleanTech Funds and funds which are not included as part of a main fund.
11. Represents the U.S. dollar equivalent balance translated at the spot rate as of period end.

Notes on Reconciliation for Distributable Earnings per Share (Page 29)

1. For periods prior to the Conversion on January 1, 2020, the current corporate income taxes payable on Distributable Earnings allocated to Carlyle Holdings I GP Inc. and estimated current Tax Receivable Agreement payments owed have been added to the estimated current corporate, foreign, state, and local taxes and total Distributable Earnings, net attributable to common stockholders has been recast accordingly.
2. Represents the implied provision for estimated corporate income taxes payable on Distributable Earnings.

Notes on Reconciliation of GAAP to Total Segment Information (Page 30)

Adjustments to performance revenues and principal investment income (loss) relate to (i) unrealized performance allocations net of related compensation expense and unrealized principal investment income, which are excluded from the segment results, (ii) amounts earned from the Consolidated Funds, which were eliminated in the U.S. GAAP consolidation but were included in the segment results, (iii) amounts attributable to non-controlling interests in consolidated entities, which were excluded from the segment results, (iv) the reclassification of NGP performance revenues, which are included in principal investment income in U.S. GAAP financial statements, (v) the reclassification of certain incentive fees from business development companies, which are included in fund management fees in the segment results, and (vi) the reclassification of tax expenses associated with certain foreign performance revenues. Adjustments to principal investment income (loss) also include the reclassification of earnings for the investments in NGP Management and its affiliates to the appropriate operating captions for the segment results, and the exclusion of charges associated with the investment in NGP Management and its affiliates that are excluded from the segment results.

39