CARLYLE GROUP INC. – 10-K – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Unless the context suggests otherwise, references in this report to "Carlyle,"
the "Company," "we," "us" and "our" refer to The Carlyle Group Inc. and its
consolidated subsidiaries. The following discussion should be read in
conjunction with the consolidated financial statements and the related notes
included in this Annual Report on Form 10-K.

Overview

We conduct our operations through three operating segments: Global Private
Equity, Global Credit, and Global Investment Solutions.

•Global Private Equity - Our Global Private Equity segment advises our buyout
and middle market and growth capital funds, our U.S. and internationally focused
real estate funds, our infrastructure and natural resources funds. We also
include the NGP Carry Funds in this segment, which are managed and advised by
NGP. As of December 31, 2022, our Global Private Equity segment had $163.1
billion in AUM and $107.8 billion in Fee-earning AUM.

•Global Credit - Our Global Credit segment advises products that pursue
investment strategies including loans and structured credit, direct lending,
opportunistic credit, aircraft finance, infrastructure debt, insurance solutions
and global capital markets. As of December 31, 2022, our Global Credit segment
had $146.3 billion in AUM and $121.2 billion in Fee-earning AUM.

•Global Investment Solutions - Our Global Investment Solutions segment advises
global private equity programs and related co-investment and secondary
activities. As of December 31, 2022, our Global Investment Solutions segment had
$63.3 billion in AUM and $37.5 billion in Fee-earning AUM.

We earn management fees pursuant to contractual arrangements with the investment
funds that we manage and fees for transaction advisory and oversight services
provided to portfolio companies of these funds. We also typically receive a
performance fee from an investment fund, which may be either an incentive fee or
a special residual allocation of income, which we refer to as a performance
allocation, or carried interest, in the event that specified investment returns
are achieved by the fund. Under U.S. generally accepted accounting principles
("U.S. GAAP"), we are required to consolidate some of the investment funds that
we advise. However, for segment reporting purposes, we present revenues and
expenses on a basis that deconsolidates these investment funds. Accordingly, our
segment revenues primarily consist of fund management fees and related
transaction and portfolio advisory fees and other income, realized performance
revenues (consisting of incentive fees and performance allocations), realized
principal investment income, including realized gains on our investments in our
funds and other trading securities, as well as interest income. Our segment
expenses primarily consist of cash compensation and benefits expenses, including
salaries, bonuses, and realized performance payment arrangements, and general
and administrative expenses. While our segment expenses include depreciation and
interest expense, our segment expenses exclude acquisition and disposition
related charges and amortization of intangibles and impairment. Refer to Note 17
to the consolidated financial statements included in this Annual Report on Form
10-K for more information on the differences between our financial results
reported pursuant to U.S. GAAP and our financial results for segment reporting
purposes.


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Trends Affecting our Business

The year 2022 was characterized by high inflation, significant market
volatility, rapidly tightening financial conditions, a surge in the U.S. dollar
against most currencies, and weakening fundamentals across the globe. By the end
of 2022, U.S. consumption, investment and manufacturing all showed signs of
slowing growth. While fourth quarter 2022 U.S. GDP growth surprised to the
upside at a 2.9% quarter-over-quarter annualized rate, expanding inventories and
declining imports accounted for nearly 70% of the headline growth. Experiences
and services spending stood out as bright spots as the year progressed, with
hotel stays and domestic air travel rising above pre-pandemic averages as
consumers shifted spending habits away from the pandemic-driven durable goods
boom of 2020 and 2021. Residential construction activity and investment declined
rapidly in the latter half of 2022 due to a rapid increase in average mortgage
rates and related collapse in home construction and purchasing activity. After
peaking at 9.1% in June 2022, consumer prices rose 6.5% in December 2022 from a
year earlier; core prices, which exclude food and energy, rose 5.7% in December,
a decline from a September peak of 6.3%. Faster than expected deceleration in
inflation readings has increased market optimism over the past month that the
Federal Reserve will not raise interest rates to as high a level as previously
anticipated. However, the dramatic increase in financing costs over the past
year for many companies could result in reduced spending, hiring, and capital
expenditures over the next several months, introducing risks to the near-term
economic outlook.

Europe's GDP growth in 2022 surprised to the upside, with current estimates
anticipating greater than 3% growth for the year. Price cap schemes, generous
fiscal subsidies, and a mild winter all contributed to a smaller-than-expected
impact of the energy crisis resulting from the Russia-Ukraine conflict. After
surging over the summer to oil price equivalents in excess of $1,000 per barrel,
forward wholesale electricity prices have moderated back towards levels seen at
the end of 2021 in response to policy actions by the European Commission.
Household consumption and consumer confidence have remained resilient as a
result, with our portfolio data indicating steady improvement in spending
patterns throughout the fourth quarter of 2022. Going forward, the industrial
sector remains most vulnerable to the ongoing energy crisis. Industrial
production costs have increased by 40% over the year and more than 200% for
certain gas-intensive industrial processes. Beyond energy, certain economies
with very high household debt levels, such as the United Kingdom and Sweden,
also face rising risks as mortgage rates reset and depress disposable income.

While Europe's energy subsidies have softened the blow of the ongoing energy
crisis to domestic consumers and businesses, the effect is to bid away already
scarce natural gas from other net energy importers, many of which are emerging
market economies that cannot compete on price. The IMF forecasts that there will
be between 20 and 30 sovereign defaults in 2023 and 2024 and that 1.7 billion
people are at risk of food insecurity. The triple threat of expensive and scarce
energy supplies and food shortages pose a significant challenge to many emerging
market economies around the globe, which in turn increases the risk of political
and social unrest.

For much of Asia, 2022 was a year of below-trend growth due to high prices,
particularly for food and fuel, slowing global demand for goods, and spillover
effects from slower growth in China. In Japan, lingering COVID-19 related
restrictions, wages that lagged broader inflation, and volatile industrial
output hindered growth, and overall GDP remains below pre-pandemic peaks in real
terms. In Korea, economic growth slowed throughout the year as export demand
fell and high prices sapped consumer confidence. India was a bright spot in
2022, with robust growth in domestic consumption and fixed investment. China's
economy was flat in the fourth quarter of 2022 compared to the third quarter, a
better-than-expected outcome given disruption experienced as a result of the
rapid rollback in COVID-19 restrictions and subsequent surge in cases. Overall,
China's economy, hampered by rolling COVID-19 related restrictions and broad
lockdowns, grew 3% in 2022, well below its long-term trend. However, the recent
rapid rollback of COVID-19 related restrictions has introduced significant
optimism that growth will rebound strongly in 2023. Preliminary data on foot
traffic in our portfolio retail locations and cargo throughput volumes indicate
an acceleration in activity in January 2023. While China's growth outlook has
improved, the relationship between China and the U.S. remains strained, and
tensions between China and Taiwan continue to mount, raising risks of further
global economic volatility given the connection between the China and U.S.
economies.

Revenues for S&P 500 constituents are estimated to have grown 10.5% in 2022, a
reflection of companies' ability to push through higher prices. This topline
growth momentum did slow throughout the year; however, for Q4 2022, revenues are
estimated to have grown just 4% vs. year-ago levels. Estimates of S&P 500
constituents' earnings growth for 2022 were steadily marked down throughout the
year, and currently stand at 4.4% in 2022. Notably, estimates anticipate that
earnings contracted by 5.0% in Q4 2022 versus the same period a year ago, the
worst decline since Q3 2020 during the midst of the pandemic. Seven of eleven
sectors estimate year-over-year earnings declines in the fourth quarter of 2022,
led by materials, consumer discretionary, and communication services. The
estimated blended net profit margin is 11.4% for Q4 2022, down from 12.4% a year
ago, as earnings growth lagged topline growth in 2022. The productivity gains
that companies enjoyed in 2020 and 2021 on the back of large investments in
digitization and technology faded in 2022; instead, a persistently tight labor
market, faster wage gains, and higher input prices slowed real output growth.

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Equity markets experienced significant volatility throughout 2022 as developed
markets saw the highest rates of inflation in 40+ years, monetary policy shifted
rapidly from accommodative to hawkish, and geopolitical developments introduced
new growth fears. The Federal Reserve raised the federal funds rate by a
cumulative total of 450 bps since March 2022, and has indicated that more hikes
are forthcoming, albeit at a somewhat slower pace. Futures markets have been
volatile in 2023, but currently price in an additional 50 bps in rate increases
by June 2023. The Dow Jones, S&P 500, and Nasdaq 100 fell 8.8%, 19.4 %, and 33%,
respectively, from December 31, 2021 to December 30, 2022. Globally, the MSCI
ACWI, EuroStoxx 600 and Shanghai Composite fell 19.8%, 12.9%, and 15.1%,
respectively, over the same period.

Obtaining financing in both the high yield bond market and the leveraged loan
market is currently challenging. In 2022, global bond funds experienced over
$375 billion in outflows. Financing has become increasingly expensive due to
both the rise in base rates (SOFR rose 425 bps over the course of the year) and
wider spreads (B-rated option-adjusted spreads rose 265 bps from December 2021
to December 2022). Leveraged loans, which are floating rate and thus typically
more appealing to investors when interest rates are rising, have sold off to a
lesser extent, but financing and transaction volumes have been under pressure.
U.S. leveraged loan issuance fell 55% in 2022 versus 2021, while global M&A
volumes totaled $3.8 trillion in 2022, a 36% decline from 2021. IPO proceeds,
which boomed in 2021, fell 69% globally and 93% in the U.S. market in 2022,
where IPOs raised just $24 billion, the lowest amount since 1990. As capital
markets activity slows, we may experience a corresponding reduction in the
capital markets fees we earn in connection with activities related to the
underwriting, issuance and placement of debt and equity securities. Our
announced new investment and realization activity has been slower, and we
therefore expect a slow start to 2023 for both deployments and realizations. As
a result, we expect that transaction fee revenue, realized performance fee
revenue and realized investment income will likely be lower over the next
quarter or two. Our activity could increase as we move throughout the year as
industry levels improve over the coming months.

Our carry fund portfolio continued to reflect the impact of the broader
macroeconomic environment in the fourth quarter. Within our Global Private
Equity segment, our corporate private equity funds appreciated 1% in the fourth
quarter and 6% for the year, and our real estate funds depreciated 1% during the
fourth quarter but appreciated 16% for the year. Our natural resources and
infrastructure funds appreciated by 2% in the fourth quarter and 48% for the
year. In our Global Credit segment, our carry funds (which represent
approximately 11% of the total Global Credit remaining fair value) appreciated
2% in the fourth quarter and 3% for the year. Global Investment Solutions funds
depreciated 3% in the fourth quarter but appreciated 6% for the year; however
excluding the impact of foreign currency translation of the USD-denominated
investments in our EUR-based funds, Global Investment Solutions would have been
flat in the fourth quarter, and experienced 4% appreciation for the year. The
valuations of our primary and secondary funds of funds generally reflect
investment fair values on a one-quarter lag.

Our non-carry fund Global Credit products continue to perform well. Dividend
yields on our business development companies as of December 31, 2022 were
approximately 10%, and approximately 10% for our retail credit product (CTAC).
In our liquid credit strategy, our global CLO portfolio continues to experience
a default rate less than the industry average, and we are actively managing our
credit positions to maintain balanced risk-adjusted credit quality. While
default rates have remained low, we expect to see them increase in 2023 as
inflation, higher financing costs and the threat of global recession continue to
pressure borrower debt-service capacity.

We generated $8.6 billion in realized proceeds from our carry funds in the
fourth quarter and $33.8 billion for the year; however, we expect that as market
conditions remain challenging, the pace of realizations will slow in the near
term. Our net accrued performance revenues on our balance sheet remained high at
$4.0 billion at December 31, 2022, up 2% since December 31, 2021.

During the fourth quarter, our carry funds invested $6.8 billion in new or
follow-on transactions and we invested a record $34.8 billion for the full year
2022. Deal activity in private equity has retreated to pre-pandemic levels from
the record level pace in 2021, and while we continue to see a pipeline of
smaller transactions that require less debt at closing, we believe that larger
deals will be slower to occur. However, as the environment for traditional
credit issuance remains challenging, we expect that demand for private credit
will remain robust, resulting in the potential for strong deployment in our
Global Credit segment.

During 2022, we raised $29.9 billion in new capital, which included $2.0 billion
in additional third-party capital raised for our strategic investment in
Fortitude, fundraising on our CLO platform and in CTAC, and the launch of our
third Credit Opportunities fund within our Global Credit segment, as well as
fundraising for our Global Private Equity and Global Investment Solutions funds.
We anticipate the fundraising landscape to continue to be competitive as limited
partners are closely managing their portfolio allocation targets in light of
market volatility and their liquidity requirements. As a result, fundraising in
certain products - particularly in corporate private equity strategies - may
take longer to complete and fund sizes may not meet levels that they otherwise
would in a more favorable market environment. Slowdowns in fundraising may also

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delay catch-up management fees that would be charged to fund investors in
subsequent closings and smaller fund sizes could result in lower management fees
in the future.

The SEC has put forth several rule proposals in recent months, and we are
continuing to evaluate the potential impacts to our business and operations and
those of our portfolio companies. These proposals include, among others: (i) new
reporting requirements of material cybersecurity incidents and periodic
reporting regarding a company's cybersecurity risk programs, (ii) new rules and
amendments under the Investment Advisers Act of 1940 that expand compliance
obligations and prohibit certain activities for private fund advisors, and (iii)
extensive climate change disclosure regulations. We are also closely evaluating
potential impacts to our business of financial, regulatory and other proposals
put forth by the current Administration and Congress as well as the Inflation
Reduction Act of 2022, which was signed into law in August. The potential for
policy changes may create regulatory uncertainty for our investment strategies
and our portfolio companies and could adversely affect our profitability and the
profitability of our portfolio companies.

Recent Developments and Transactions

CEO Appointment

On February 6, 2023, we announced that our Board of Directors has appointed
Harvey M. Schwartz as our Chief Executive Officer and a member of our Board of
Directors, effective February 15, 2023 (the "Commencement Date"). On the
Commencement Date, Mr. Schwartz will receive inducement equity awards with a
combined grant date value of $180 million, of which $108 million will be granted
in the form of performance-based restricted stock units which will be eligible
to vest in five equal tranches and $72 million will be granted in the form of
time-based restricted stock units which will be eligible to vest ratably in four
equal installments. The number of shares of common stock underlying the
performance-based award will be determined by dividing the $108 million grant
value by the per share accounting fair value on the Commencement Date. As we
anticipate that the accounting fair value on the Commencement Date will be less
than the per share closing stock price on the Commencement Date, we expect that
the total face value of the performance award (i.e., the number of shares
multiplied by the closing price on the Commencement Date) will be greater than
$108 million. The number of shares of common stock underlying the time-based
award will be determined by dividing the $72 million grant value by the per
share closing stock price on the Commencement Date.

Recent Transactions

During the year ended December 31, 2022, the Company completed several
transactions with the objective of driving accretive growth on an inorganic
basis as outlined below.

Acquisition of CLO Management Contracts from CBAM Partners LLC

In March 2022, we acquired the management contracts related to a portfolio of
assets primarily comprised of U.S. and European CLOs as well as other assets
across private credit from CBAM Partners LLC ("CBAM"). The purchase price of
$812.9 million consisted of a combination of $618.4 million in cash,
approximately 4.2 million newly issued, fully vested common shares ($194.5
million based on the value of the shares at closing), and approximately
$3.4 million of acquisition costs incurred by us in connection with the
transaction. The portfolio of $15 billion in assets under management was
integrated into our Global Credit platform. See Note 4 to the consolidated
financial statements for additional information regarding the acquisition.

Fortitude Capital Raise and Strategic Advisory Services Agreement

In March 2022, we raised $2.0 billion in third-party equity capital for
Fortitude, and committed up to $100 million in additional capital to Carlyle FRL
from our balance sheet. In May 2022, Fortitude called $1.1 billion of the
capital raise, with the remaining capital expected to be called in 2023. In
connection with the capital raise and subsequent funding, our indirect ownership
of Fortitude decreased from 19.9% to 13.5%. As a result of this dilution, we
recorded a reduction in the carrying value of our equity method investment and
corresponding loss of $176.9 million in our U.S. GAAP results. At the time the
remaining capital is called by Fortitude, our indirect ownership will further
decrease to 10.5% and we expect to record an additional reduction in the
carrying value of our equity method investment and corresponding loss of
approximately $121 million based on the carrying value of $646.0 million as of
December 31, 2022, subject to change based on the timing of the dilution and
changes in the carrying value of our investment.

On April 1, 2022, we entered into a new strategic advisory services agreement
with certain subsidiaries of Fortitude through a newly-formed investment
advisor, Carlyle Insurance Solutions Management L.L.C. ("CISM"). Under the
agreement,

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CISM provides Fortitude with certain services, including business development
and growth, transaction origination and execution, and capital management
services in exchange for a recurring management fee based on Fortitude's general
account assets, which adjusts within an agreed range based on Fortitude's
overall profitability. Third party investors who participated in the March 2022
capital raise also made a minority investment in CISM, which is reflected as a
non-controlling interest in consolidated entities in the condensed consolidated
financial statements. See Note 6 to the consolidated financial statements for
additional information regarding the strategic investment in Fortitude.

Acquisition of Abingworth

On August 1, 2022, we acquired Abingworth, a life sciences investment firm, to
expand our healthcare investment platform with the addition of nearly $2 billion
in assets under management and a specialized team of over 20 investment
professionals and advisors. Consideration for Abingworth included a base
purchase price of $186.2 million, of which $25.0 million was settled in
newly-issued shares of the Company's common stock, as well as up to a further
$130 million in future incentive payments based on the achievement of certain
performance targets. The acquisition included the rights to 15% of performance
revenues generated by Abingworth's two most recent active investment funds,
Abingworth Bioventures 8 LP and Abingworth Clinical Co-Development Fund 2 LP.
See Note 4 to the consolidated financial statements for additional information
regarding the acquisition.

Dividends

In February 2023, the Board of Directors declared a quarterly dividend of $0.325
per common share to common stockholders of record at the close of business on
February 22, 2023, payable on March 1, 2023.

In February 2023, the Board of Directors approved an increase in the anticipated
common stock dividend to an annual rate of $1.40 per share ($0.35 per common
share on a quarterly basis), anticipated to commence for the first quarter 2023
dividend, which is anticipated to be paid in May 2023.

Key Financial Measures

Our key financial measures are discussed in the following pages. Additional
information regarding these key financial measures and our other significant
accounting policies can be found in Note 3 to the consolidated financial
statements included in this Annual Report on Form 10-K.

Revenues

Revenues primarily consist of fund management fees, incentive fees, investment
income (including performance allocations, realized and unrealized gains of our
investments in our funds and other principal investments), as well as interest
and other income.

Fund Management Fees. Fund management fees include management fees and
transaction and portfolio advisory fees.
We earn management fees for advisory services we provide to funds in which we
hold a general partner interest or with which
we have an investment advisory or investment management agreement. Additionally,
management fees include catch-up
management fees, which are episodic in nature and represent management fees
charged to fund investors in subsequent closings
of a fund which apply to the time period between the fee initiation date and the
subsequent closing date. We also earn management fees on our CLOs and other
structured products. Collectively, our carry funds and our CLOs and certain
other products comprise 78% of our Fee-earning AUM as of December 31, 2022 and
approximately 92% of our fund management fees during the year then ended. The
balance of our Fee-earning AUM and fund management fees are attributable to our
Perpetual Capital products, which have an indefinite term and for which there is
no immediate requirement to return capital to investors as investments are
realized.

Management fees attributable to Carlyle Partners VIII, L.P. ("CP VIII"), our
eighth U.S. buyout fund with $13.1 billion of Fee-earning AUM as of December 31,
2022 was approximately 10% of fund management fees recognized during the year
ended December 31, 2022. Management fees attributable to Carlyle Partners VII,
L.P. ("CP VII"), our seventh U.S. buyout fund with approximately $15.5 billion
of Fee-earning AUM as of December 31, 2022, was 10% of total management fees
recognized during the year ended December 31, 2022, and 15% and 17% during the
years ended December 31, 2021 and 2020, respectively. No other fund generated
over 10% of total management fees in the periods presented.

Fund management fees exclude the reimbursement of any partnership expenses paid
by the Company on behalf of the Carlyle funds pursuant to the limited
partnership agreements, including amounts related to the pursuit of actual,
proposed, or

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unconsummated investments, professional fees, expenses associated with the
acquisition, holding and disposition of investments, and other fund
administrative expenses.

Transaction and Portfolio Advisory Fees. Transaction and portfolio advisory fees
generally include capital markets fees generated by Carlyle Global Capital
Markets ("GCM") in connection with activities related to the underwriting,
issuance and placement of debt and equity securities, and loan syndication for
our portfolio companies and third-party clients, which are generally not subject
to rebate offsets with respect to our most recent vintages (but are subject to
the rebate offsets set forth above for older funds). Underwriting fees include
gains, losses and fees arising from securities offerings in which we participate
in the underwriter syndicate.

Transaction and portfolio advisory fees also include fees we receive for the
transaction and portfolio advisory services we provide to our portfolio
companies. When covered by separate contractual agreements, we recognize
transaction and portfolio advisory fees for these services when the performance
obligation has been satisfied and collection is reasonably assured. We are
required to offset our fund management fees earned by a percentage of these
transaction and advisory fees earned, which we refer to as the "rebate offsets,"
which generally range from 80% to 100%.

The recognition of portfolio advisory fees, transaction fees, and capital
markets fees can be volatile as they are primarily generated by investment
activity within our funds, and therefore are impacted by our investment pace.

Incentive Fees. Incentive fees consist of performance-based incentive
arrangements pursuant to management contracts, primarily from certain of our
Global Credit funds, when the return on assets under management exceeds certain
benchmark returns or other performance targets. In such arrangements, incentive
fees are recognized when the performance benchmark has been achieved.

Investment Income. Investment income consists of our performance allocations as
well as the realized and unrealized gains and losses resulting from our equity
method investments and other principal investments.

Performance allocations consist principally of the performance-based capital
allocation from fund limited partners to us, commonly referred to as carried
interest, from certain of our investment funds, which we refer to as the "carry
funds." Carried interest revenue is recognized by Carlyle upon appreciation of
the valuation of our funds' investments above certain return hurdles as set
forth in each respective partnership agreement and is based on the amount that
would be due to us pursuant to the fund partnership agreement at each period end
as if the funds were liquidated at such date. Accordingly, the amount of carried
interest recognized as performance allocations reflects our share of the fair
value gains and losses of the associated funds' underlying investments measured
at their then-current fair values relative to the fair values as of the end of
the prior period. As a result, the performance allocations earned in an
applicable reporting period are not indicative of any future period, as fair
values are based on conditions prevalent as of the reporting date. Refer to "-
Trends Affecting our Business" for further discussion.

We account for our strategic investments in NGP under the equity method of
accounting. Our investments in NGP include the equity interests in NGP
Management Company, L.L.C. ("NGP Management") and the general partners of
certain carry funds advised by NGP. These interests entitle us to an allocation
of income equal to 55.0% of the management fee-related revenues of NGP
Management, which serves as the investment advisor to certain NGP funds as well
as 47.5% of the performance allocations received by the NGP Carry Funds. We
record investment income (loss) for our equity income allocation from NGP
management fee-related revenues and also record our share of any allocated
expenses from NGP Management, expenses associated with the compensatory elements
of the strategic investment, and the amortization of the basis differences
related to the definite-lived identifiable intangible assets of NGP Management.
We also record our equity income allocation from NGP performance allocations in
principal investment income (loss) from equity method investments rather than
performance allocations in our consolidated statements of operations. We do not
control or manage NGP. Moreover, we do not operate NGP's business, have
representation on NGP's board or serve as an investment advisor to any
investment fund sponsored by NGP, nor do we direct the operations of any of NGP
portfolio companies. While we have consent rights over certain major actions by
NGP outside of the ordinary course of NGP's business (including, for example,
consent rights over items such as amendments to the organizational documents of
the entity in which we are invested, changes to the management fee streams
earned by NGP under its fund agreements, or the incurrence of certain debt by
NGP and other similar items), we have no voting rights or consent rights on any
NGP investment committee that selects investments to be made by NGP funds. For
further information regarding our strategic investments in NGP, refer to Note 6
to the consolidated financial statements in Part II, Item 8 of this Annual
Report on Form 10-K.

In addition to the performance allocations from our Global Private Equity and
Global Credit carry funds, and the NGP Carry Funds, we are also entitled to
receive performance allocations from our Global Investment Solutions and Carlyle

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Aviation funds. We also retained our interest in the net accrued performance
allocations of existing funds at the time of the sale of MRE. The timing of
performance allocations realizations for these funds is typically later than in
our other carry funds based on the terms of such arrangements.

Our performance allocations are generated by a diverse set of funds with
different vintages, geographic concentration, investment strategies and industry
specialties. For an explanation of the fund acronyms used throughout this
Management's Discussion and Analysis of Financial Condition and Results of
Operations section, refer to "Item 1. Business-Our Global Investment Offerings."

Performance allocations, before the impact of performance allocations related
compensation, in excess of 10% of the total for the years ended December 31,
2022, 2021 and 2020 were generated from the following funds:

                                        Year Ended December 31,
                         2022                     2021                    2020
                                         (Dollars in millions)
                  CRP VIII   $ 205.8       CP VI   $ 1,327.5       CP VI   $ 1,124.3
                   CPP II      187.7       CP VII      717.8       CAP IV      331.0
                    CEP V      155.3
                   CETP IV     150.2
                    CP VI     (453.2)


No other fund generated over 10% of performance allocations in the periods
presented above. The reversal of $453.2 million in previously recognized
performance allocations in CP VI during 2022 was primarily driven by
depreciation in the portfolio, notably its publicly traded investments, which
comprise approximately 43% of its remaining fair value as of December 31, 2022.
Performance allocations from CP VI during 2021 were driven by appreciation
across the portfolio, with notable increases in the values of the publicly
traded investments in the portfolio and sale transactions of privately held
investments.

Under our arrangements with the historical owners and management team of
AlpInvest, we generally do not retain any carried interest in respect of the
historical investments and commitments to our fund vehicles that existed as of
July 1, 2011 (including any options to increase any such commitments exercised
after such date). We are entitled to 15% of the carried interest in respect of
commitments from the historical owners of AlpInvest for the period between 2011
and 2020, except in certain instances, and 40% of the carried interest in
respect of all other commitments (including all future commitments from third
parties). In certain instances, carried interest associated with the AlpInvest
fund vehicles is subject to entity level income taxes in the Netherlands.

Realized carried interest may be clawed back or given back to the fund if the
fund's investment values decline below certain return hurdles, which vary from
fund to fund. When the fair value of a fund's investments remains constant or
falls below certain return hurdles, previously recognized performance
allocations are reversed. In all cases, each investment fund is considered
separately in evaluating carried interest and potential giveback obligations.
For any given period, performance allocations revenue on our statement of
operations may include reversals of previously recognized performance
allocations due to a decrease in the value of a particular fund that results in
a decrease of cumulative performance allocations earned to date. Since fund
return hurdles are cumulative, previously recognized performance allocations
also may be reversed in a period of appreciation that is lower than the
particular fund's hurdle rate. Additionally, unrealized performance allocations
reverse when performance allocations are realized, and unrealized performance
allocations can be negative if the amount of realized performance allocations
exceed total performance allocations generated in the period. For the years
ended December 31, 2022, 2021 and 2020, the reversals of performance
allocations, before the impact of reversals of the related compensation, were
$558.7 million, $48.2 million and $401.5 million, respectively.

As of December 31, 2022, accrued performance allocations and accrued giveback
obligations were approximately $7.1 billion and $40.9 million, respectively.
Each balance assumes a hypothetical liquidation of the funds' investments at
December 31, 2022 at their then current fair values. These assets and
liabilities will continue to fluctuate in accordance with the fair values of the
funds' investments until they are realized. As of December 31, 2022, $18.9
million of the accrued giveback obligation is the responsibility of various
current and former senior Carlyle professionals and other limited partners of
the Carlyle Holdings partnerships, and the net accrued giveback obligation
attributable to the Company is $22.0 million. The Company uses "net accrued
performance revenues" to refer to the aggregation of the accrued performance
allocations and incentive fees net of (i) accrued giveback obligations, (ii)
accrued performance allocations and incentive fee-related
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compensation, (iii) performance allocations and incentive fee-related tax
obligations, and (iv) accrued performance allocations and incentive fees
attributable to non-controlling interests and excludes any net accrued
performance allocations and incentive fees that have been realized but will be
collected in subsequent periods, as well as net accrued performance revenues
which are presented as fee related performance revenues when realized in our
non-GAAP financial measures. Net accrued performance revenues as of December 31,
2022 were $4.0 billion.

In addition, realized performance allocations may be reversed in future periods
to the extent that such amounts become subject to a giveback obligation. If at
December 31, 2022, all investments held by our carry funds were deemed
worthless, the amount of realized and previously distributed performance
allocations subject to potential giveback would be approximately $1.5 billion,
on an after-tax basis where applicable, of which approximately $0.7 billion
would be the responsibility of current and former senior Carlyle professionals.
See the related discussion of within "-Liquidity and Capital
Resources-Contingent Obligations (Giveback)."

  The following table summarizes the total amount of aggregate giveback
obligations that we have realized since Carlyle's inception. Given various
current and former senior Carlyle professionals and other limited partners of
the Carlyle Holdings partnerships are responsible for paying the majority of the
realized giveback obligation, the table below also summarizes the amount that
was attributable to the Company:

                                                     Inception through December 31, 2022
                                                                            Giveback Attributable to
                                             Total Giveback                         Carlyle
                                                            (Dollars in millions)
Various Legacy Energy Funds            $                  160.8          $                      57.7
All other Carlyle Funds                                    78.5                                 12.9
Aggregate giveback since inception     $                  239.3          $                      70.6


The funding for employee obligations and givebacks related to carry realized
pre-IPO is primarily through a collection of employee receivables related to
giveback obligations and from non-controlling interests for their portion of the
obligation. The realization of giveback obligations for the Company's portion of
such obligations reduces Distributable Earnings in the period realized and
negatively impacts earnings available for distributions to shareholders in the
period realized. Further, each individual recipient of realized carried interest
typically signs a guarantee agreement or partnership agreement that personally
obligates such person to return his/her pro rata share of any amounts of
realized carried interest previously distributed that are later clawed back.
Accordingly, carried interest as performance allocation compensation is subject
to return to the Company in the event a giveback obligation is funded.
Generally, the actual giveback liability, if any, does not become due until the
end of a fund's life.

Each investment fund is considered separately in evaluating carried interest and
potential giveback obligations. As a result, performance allocations within
funds will continue to fluctuate primarily due to certain investments within
each fund constituting a material portion of the carry in that fund.
Additionally, the fair value of investments in our funds may have substantial
fluctuations from period to period.

In addition, in our discussion of our non-GAAP results, we use the term
"realized net performance revenues" to refer to realized performance allocations
and incentive fees from our funds, net of the portion allocated to our
investment professionals, if any, and certain tax expenses associated with
carried interest attributable to certain partners and employees, which are
reflected as realized performance allocations and incentive fees related
compensation expense. See "-Non-GAAP Financial Measures" for the amount of
realized performance revenues recognized each period. See "-Segment Analysis"
for the realized performance revenues by segment and related discussion for each
period.

Investment income also represents the realized and unrealized gains and losses
on our principal investments, including our investments in Carlyle funds that
are not consolidated, as well as any interest and other income. Principal
investment income also included our proportionate share of U.S. GAAP earnings
from our strategic investment in Fortitude prior to the contribution of our
investment to a Carlyle-affiliated investment fund (see Note 6 to the
consolidated financial statements in Part II, Item 8 of this Annual Report on
Form 10-K). Realized principal investment income (loss) is recorded when we
redeem all or a portion of our investment or when we receive or are due cash
income, such as dividends or distributions. A realized principal investment loss
is also recorded when an investment is deemed to be worthless. Unrealized
principal investment income (loss) results from changes in the fair value of the
underlying investment, as well as the reversal of previously recognized
unrealized gains (losses) at the time an investment is realized.
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Fair Value Measurement. U.S. GAAP establishes a hierarchical disclosure
framework which ranks the observability of market price inputs used in measuring
financial instruments at fair value. The observability of inputs is impacted by
a number of factors, including the type of financial instrument, the
characteristics specific to the financial instrument and the state of the
marketplace, including the existence and transparency of transactions between
market participants. Financial instruments with readily available quoted prices,
or for which fair value can be measured from quoted prices in active markets,
will generally have a higher degree of market price observability and a lesser
degree of judgment applied in determining fair value.

The table below summarizes the valuation of investments and other financial
instruments included within our AUM, by segment and fair value hierarchy levels,
as of December 31, 2022:

                                                 As of December 31, 2022
                                Global
                                Private                                 Global Investment
                                Equity              Global Credit           Solutions             Total
                                                  (Dollars in millions)
  Consolidated Results
  Level I                     $   4,459            $        1,522      $            1,084      $   7,065
  Level II                        2,246                    32,703                     158         35,107
  Level III                     116,968                    99,195                  42,279        258,442
  Fair Value of Investments     123,673                   133,420                  43,521        300,614
  Available Capital              39,425                    12,882                  19,770         72,077
  Total AUM                   $ 163,098            $      146,302      $           63,291      $ 372,691


Interest and Other Income of Consolidated Funds. Interest and other income of
Consolidated Funds primarily represents the interest earned on CLO assets. The
Consolidated Funds are not the same entities in all periods presented. The
Consolidated Funds in future periods may change due to changes in fund terms,
formation of new funds, and terminations of funds.

Net Investment Gains of Consolidated Funds. Net investment gains of Consolidated
Funds measures the change in the difference in fair value between the assets and
the liabilities of the Consolidated Funds. A gain (loss) indicates that the fair
value of the assets of the Consolidated Funds appreciated more (less), or
depreciated less (more), than the fair value of the liabilities of the
Consolidated Funds. A gain or loss is not necessarily indicative of the
investment performance of the Consolidated Funds and does not impact the
management or incentive fees received by Carlyle for its management of the
Consolidated Funds. The portion of the net investment gains (losses) of
Consolidated Funds attributable to the limited partner investors is allocated to
non-controlling interests. Therefore, a gain or loss is not expected to have a
material impact on the revenues or profitability of the Company. Moreover,
although the assets of the Consolidated Funds are consolidated onto our balance
sheet pursuant to U.S. GAAP, ultimately we do not have recourse to such assets
and such liabilities are generally non-recourse to us. Therefore, a gain or loss
from the Consolidated Funds generally does not impact the assets available to
our common stockholders.

Expenses

Compensation and Benefits. Compensation includes salaries, bonuses, equity-based
compensation, and performance payment arrangements. Bonuses are accrued over the
service period to which they relate.

We recognize as compensation expense the portion of performance allocations and
incentive fees that are due to our employees, senior Carlyle professionals,
advisors, and operating executives in a manner consistent with how we recognize
the performance allocations and incentive fee revenue. These amounts are
accounted for as compensation expense in conjunction with the related
performance allocations and incentive fee revenue and, until paid, are
recognized as a component of the accrued compensation and benefits liability.
Compensation in respect of performance allocations and incentive fees is paid
when the related performance allocations and incentive fees are realized, and
not when such performance allocations and incentive fees are accrued. The funds
do not have a uniform allocation of performance allocations and incentive fees
to our employees, senior Carlyle professionals and operating executives.
Therefore, for any given period, the ratio of performance allocations and
incentive fee compensation to performance allocations and incentive fee revenue
may vary based on the funds generating the performance allocations and incentive
fee revenue for that period and their particular allocation percentages.
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In addition, we have implemented various equity-based compensation arrangements,
including those under our Equity Incentive Plan. These equity-based compensation
arrangements require senior Carlyle professionals and other employees to vest
ownership of a portion of their equity interests over a service period of
generally one to four years, which under U.S. GAAP will result in compensation
charges over current and future periods. In 2021, we granted 7.1 million in
long-term strategic restricted stock units to certain senior professionals. The
majority of these restricted stock units are eligible to vest based on the
achievement of annual performance targets over four years, with a larger
proportion of the awards eligible to vest based on the 2024 performance year. On
February 1, 2023, we granted a total of 9.9 million restricted stock units under
the Equity Incentive Plan to our personnel, including certain senior Carlyle
professionals and other key personnel. In addition, on February 15, 2023, we
will grant performance- and time-based inducement equity awards in connection
with the appointment of our new Chief Executive Officer. As a result of these
grants, and combined with a higher share price than in periods prior to 2021,
equity-based compensation expense will be higher in the coming years than it has
been. Compensation charges associated with all equity-based compensation grants
are excluded from Fee Related Earnings and Distributable Earnings. As of
December 31, 2022, the total number of the Company's common shares available for
grant under the Equity Incentive Plan was 12,861,371, which does not reflect the
restricted stock units granted on February 1, 2023. An increase in the number of
shares available for grant under the plan would require shareholder approval.

We may hire additional individuals and overall compensation levels may
correspondingly increase, which could result in an increase in compensation and
benefits expense. As a result of prior acquisitions, we have charges associated
with contingent consideration taking the form of earn-outs and profit
participation, some of which are reflected as compensation expense.

General, Administrative and Other Expenses. General, administrative and other
expenses include occupancy and equipment expenses and other expenses, which
consist principally of professional fees, including those related to our global
regulatory compliance program, external costs of fundraising, travel and related
expenses, communications and information services, depreciation and amortization
(including intangible asset amortization and impairment) and foreign currency
transactions. We expect that general, administrative and other expenses will
vary due to infrequently occurring or unusual items, such as impairment of
intangible assets or lease right-of-use assets and expenses or insurance
recoveries associated with litigation and contingencies. Also, in periods of
significant fundraising, to the extent that we use third parties to assist in
our fundraising efforts, our general, administrative and other expenses may
increase accordingly. Similarly, our general, administrative and other expenses
may increase as a result of professional and other fees incurred as part of due
diligence related to strategic acquisitions and new product development.
Additionally, we anticipate that general, administrative and other expenses will
fluctuate from period to period due to the impact of foreign exchange
transactions.

We also could incur additional expenses in the future related to our
acquisitions including amortization of acquired intangibles and earn-outs to
equity holders. As discussed in Note 7 to the consolidated financial statements,
we evaluate our intangible assets (including goodwill) for impairment and could
record additional impairment losses in future periods.

Interest and Other Expenses of Consolidated Funds. The interest and other
expenses of Consolidated Funds consist primarily of interest expenses related
primarily to our CLO loans, professional fees and other third-party expenses.

Income Taxes. Income taxes are accounted for using the asset and liability
method of accounting. Under this method, deferred tax assets and liabilities are
recognized for the expected future tax consequences of differences between the
carrying amounts of assets and liabilities and their respective tax basis, using
currently enacted tax rates. The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in income in the period in which the
change is enacted. Deferred tax assets are reduced by a valuation allowance when
it is more likely than not that some or all of the deferred tax assets will not
be realized.

In the normal course of business, we are subject to examination by federal and
certain state, local and foreign tax regulators. With a few exceptions, as of
December 31, 2022, our U.S. federal income tax returns for the years 2019
through 2021 are open under the normal three-years statute of limitations and
therefore subject to examination. State and local tax returns are generally
subject to audit from 2017 to 2021. Foreign tax returns are generally subject to
audit from 2011 to 2021. Certain of our affiliates are currently under audit by
federal, state and foreign tax authorities.

Non-controlling Interests in Consolidated Entities. Non-controlling interests in
consolidated entities represent the component of equity in consolidated entities
not held by us. These interests are adjusted for general partner allocations.

Earnings Per Common Share. We compute earnings per common share in accordance
with ASC 260, Earnings Per Share. Basic earnings per common share is calculated
by dividing net income (loss) attributable to the common shares of the Company
by the weighted-average number of common shares outstanding for the period.
Diluted earnings per common share
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reflects the assumed conversion of all dilutive securities. We apply the
treasury stock method to determine the dilutive weighted-average common shares
represented by unvested restricted stock units. For certain equity-based
compensation awards that contain performance or market conditions, the number of
contingently issuable common shares is included in diluted earnings per common
share based on the number of common shares, if any, that would be issuable under
the terms of the awards if the end of the reporting period were the end of the
contingency period, if the result is dilutive.

Non-GAAP Financial Measures

Distributable Earnings. Distributable Earnings, or "DE," is a key performance
benchmark used in our industry and is evaluated regularly by management in
making resource deployment and compensation decisions, and in assessing the
performance of our three segments. We also use DE in our budgeting, forecasting,
and the overall management of our segments. We believe that reporting DE is
helpful to understanding our business and that investors should review the same
supplemental financial measure that management uses to analyze our segment
performance. DE is intended to show the amount of net realized earnings without
the effects of consolidation of the Consolidated Funds. DE is derived from our
segment reported results and is an additional measure to assess performance.

Distributable Earnings differs from income (loss) before provision for income
taxes computed in accordance with U.S. GAAP in that it includes certain tax
expenses associated with performance revenues (comprised of performance
allocations and incentive fees), and does not include unrealized performance
allocations and related compensation expense, unrealized principal investment
income, equity-based compensation expense, net income (loss) attributable to
non-Carlyle interest in consolidated entities, or charges (credits) related to
Carlyle corporate actions and non-recurring items. Charges (credits) related to
Carlyle corporate actions and non-recurring items include: charges associated
with acquisitions, dispositions or strategic investments, changes in the tax
receivable agreement liability, corporate conversion costs, amortization and any
impairment charges associated with acquired intangible assets, transaction costs
associated with acquisitions and dispositions, charges associated with earnouts
and contingent consideration including gains and losses associated with the
estimated fair value of contingent consideration issued in conjunction with
acquisitions or strategic investments, impairment charges associated with lease
right-of-use assets, gains and losses from the retirement of debt, charges
associated with contract terminations and employee severance. We believe the
inclusion or exclusion of these items provides investors with a meaningful
indication of our core operating performance. This measure supplements and
should be considered in addition to and not in lieu of the results of operations
discussed further under "-Consolidated Results of Operations" prepared in
accordance with U.S. GAAP.

Fee Related Earnings. Fee Related Earnings, or "FRE," is a component of DE and
is used to assess the ability of the business to cover direct base compensation
and operating expenses from total fee revenues. FRE differs from income (loss)
before provision for income taxes computed in accordance with U.S. GAAP in that
it adjusts for the items included in the calculation of DE and also adjusts DE
to exclude net realized performance revenues, realized principal investment
income from investments in Carlyle funds, net interest (interest income less
interest expense), and certain general, administrative and other expenses when
the timing of any future payment is uncertain. Fee Related Earnings includes fee
related performance revenues and related compensation expense. Fee related
performance revenues represent the realized portion of performance revenues that
are measured and received on a recurring basis, are not dependent on realization
events, and which have no risk of giveback.

Operating Metrics

We monitor certain operating metrics that are common to the asset management
industry.

  Fee-earning Assets under Management. Fee-earning assets under management or
Fee-earning AUM refers to the assets we manage or advise from which we derive
recurring fund management fees. Our Fee-earning AUM is generally based on one of
the following, once fees have been activated:

(a)the amount of limited partner capital commitments, generally for carry funds
where the original investment period has not expired, for AlpInvest carry funds
during the commitment fee period and for Metropolitan carry funds during the
weighted-average investment period of the underlying funds (see "Fee-earning AUM
based on capital commitments" in the table below for the amount of this
component at each period);

(b)the remaining amount of limited partner invested capital at cost, generally
for carry funds and certain co-investment vehicles where the original investment
period has expired and one of our business development companies (see
"Fee-earning AUM based on invested capital" in the table below for the amount of
this component at each period);
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(c)the amount of aggregate fee-earning collateral balance at par of our CLOs and
other securitization vehicles, as defined in the fund indentures (typically
exclusive of equities and defaulted positions) as of the quarterly cut-off date;

(d)the external investor portion of the net asset value of certain carry funds
(see "Fee-earning AUM based on net asset value" in the table below for the
amount of this component at each period);

(e)the fair value of Fortitude's general account assets invested under the
strategic advisory services agreement (see "Fee-earning AUM based on fair value
and other" in the table below);

(f)the gross assets (including assets acquired with leverage), excluding cash
and cash equivalents, of one of our business development companies and certain
carry funds (included in "Fee-earning AUM based on lower of cost or fair value
and other" in the table below); and

(g)the lower of cost or fair value of invested capital, generally for AlpInvest
carry funds where the commitment fee period has expired and certain carry funds
where the investment period has expired, (included in "Fee-earning AUM based on
lower of cost or fair value and other" in the table below).

The table below details Fee-earning AUM by its respective components at each
period.

                                                                               As of December 31,
                                                                   2022               2021               2020
Consolidated Results                                                         (Dollars in millions)
Components of Fee-earning AUM
Fee-earning AUM based on capital commitments(1)                $  81,057          $  71,829          $  77,729
Fee-earning AUM based on invested capital(2)                      60,459             60,828             38,055
Fee-earning AUM based on collateral balances, at par(3)           46,173             30,779             26,480
Fee-earning AUM based on net asset value(4)                       11,979              9,645              7,966
Fee-earning AUM based on fair value and other(5)                  66,909             20,338             19,872
Balance, End of Period(6)                                      $ 266,577    

$ 193,419 $ 170,102

(1)Reflects limited partner capital commitments where the original investment
period, weighted-average investment period, or commitment fee period has not
expired.
(2)Reflects limited partner invested capital at cost and includes amounts
committed to or reserved for investments for certain Global Private Equity and
Global Investment Solutions funds.
(3)Represents the amount of aggregate Fee-earning collateral balances and
principal balances, at par, for our CLOs/structured products.
(4)Reflects the net asset value of certain other carry funds.
(5)Includes the fair value of Fortitude's general account assets covered by the
strategic advisory services agreement, funds with fees based on the lower of
cost or fair value of invested capital and funds with fees based on gross asset
value.
(6)Ending balance excludes $11.1 billion of pending Fee-earning AUM as of
December 31, 2022 for which fees have not yet been activated.

The table below provides the period to period rollforward of Fee-earning AUM.

                                                Year Ended December 31,
                                          2022           2021           2020
Consolidated Results                             (Dollars in millions)
Fee-earning AUM Rollforward
Balance, Beginning of Period           $ 193,419      $ 170,102      $ 161,057
Inflows(1)                                95,534         46,199         22,481
Outflows (including realizations)(2)     (18,431)       (23,361)       (17,130)
Market Activity & Other(3)                  (505)         3,860           (466)
Foreign Exchange(4)                       (3,440)        (3,381)         4,160
Balance, End of Period                 $ 266,577      $ 193,419      $ 170,102



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(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 our
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. Inflows for the year
ended December 31, 2022 include $2 billion of Fee-earning AUM acquired as part
of the August 2022 Abingworth transaction, Fee-earning AUM of $48 billion
associated with the strategic advisory services agreement with Fortitude which
was effective April 1, 2022, and Fee-earning AUM of $14 billion acquired in the
March 2022 CBAM transaction.
(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 fees, gross redemptions in our open-end funds, and
runoff of CLO collateral balances. Distributions for funds earning management
fees based on commitments during the period do not affect Fee-earning AUM.
Outflows during the year ended December 31, 2021 also reflect the sale of MRE on
April 1, 2021, which had $2 billion of Fee-earning AUM as of March 31, 2021.
(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.

Refer to "-Segment Analysis" for a detailed discussion by segment of the
activity affecting Fee-earning AUM for each of the periods presented by segment.

Assets under Management. Assets under management or "AUM" refers to the assets
we manage or advise. Our AUM equals the sum of the following:

(a) the aggregate fair value of our carry funds and related co-investment
vehicles, and separately managed accounts, plus the capital that Carlyle is
entitled to call from investors in those funds and vehicles (including Carlyle
commitments to those funds and vehicles and those of senior Carlyle
professionals and employees) pursuant to the terms of their capital commitments
to those funds and vehicles;

(b) the amount of aggregate collateral balance and principal cash at par or
aggregate principal amount of the notes of our CLOs and other structured
products (inclusive of all positions);

(c) the net asset value of certain carry funds;

(d) the fair value of Fortitude's general account assets invested under the
strategic advisory services agreement; and

(e)   the gross assets (including assets acquired with leverage) of our business
development companies, plus the capital that Carlyle is entitled to call from
investors in those vehicles pursuant to the terms of their capital commitments
to those vehicles.

We include in our calculation of AUM and Fee-earning AUM the Legacy Energy Funds
that we jointly advise with Riverstone and the NGP Energy Funds that are advised
by NGP. Our calculation of AUM also includes third-party capital raised for the
investment in Fortitude through a Carlyle-affiliated investment fund and from a
strategic investor which directly invests in Fortitude alongside the fund. The
AUM and Fee-earning AUM related to the strategic advisory services agreement
with Fortitude is inclusive of the net asset value of investments in Carlyle
products. These amounts are also reflected in the AUM and Fee-earning AUM of the
strategy in which they are invested.

For most of our carry funds, total AUM includes the fair value of the capital
invested, whereas Fee-earning AUM includes the amount of capital commitments or
the remaining amount of invested capital, depending on whether the original
investment period for the fund has expired. As such, Fee-earning AUM may be
greater than total AUM when the aggregate fair value of the remaining
investments is less than the cost of those investments.

Our calculations of AUM and Fee-earning AUM may differ from the calculations of
other asset managers. As a result, these measures may not be comparable to
similar measures presented by other asset managers. In addition, our calculation
of AUM (but not Fee-earning AUM) includes uncalled commitments to, and the fair
value of invested capital in, our investment funds from Carlyle and our
personnel, regardless of whether such commitments or invested capital are
subject to management
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fees or performance allocations. Our calculations of AUM or Fee-earning AUM are
not based on any definition of AUM or Fee-earning AUM that is set forth in the
agreements governing the investment funds that we manage or advise.

We generally use Fee-earning AUM as a metric to measure changes in the assets
from which we earn recurring management fees. Total AUM tends to be a better
measure of our investment and fundraising performance as it reflects investments
at fair value plus available capital.

Available Capital. "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 a 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. "Expired
Available Capital" occurs when a fund has passed the investment and follow-on
periods and can no longer invest capital into new or existing deals. Any
remaining Available Capital, typically a result of either recycled distributions
or specific reserves established for the follow-on period that are not drawn,
can only be called for fees and expenses and is therefore removed from the Total
AUM calculation.

The table below provides the period to period rollforward of Total AUM.

                                                Year Ended December 31,
                                          2022           2021           2020
                                                 (Dollars in millions)
Consolidated Results
Total AUM Rollforward
Balance, Beginning of Period           $ 300,957      $ 245,769      $ 224,442
Inflows(1)                                94,824         51,261         26,902
Outflows (including realizations)(2)     (35,665)       (47,483)       (21,477)
Market Activity & Other(3)                18,109         57,125         10,380
Foreign Exchange(4)                       (5,534)        (5,715)         5,522
Balance, End of Period                 $ 372,691      $ 300,957      $ 245,769



(1)Inflows 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. Inflows for the year
ended December 31, 2022 include $2 billion of AUM acquired as part of the August
2022 Abingworth transaction, AUM of $48 billion associated with the strategic
advisory services agreement with Fortitude which was effective April 1, 2022,
and AUM of $15 billion acquired in the March 2022 CBAM transaction.
(2)Outflows includes distributions net of recallable or recyclable amounts in
our carry funds, related co-investment vehicles, and separately managed
accounts, gross redemptions in our open-end funds, runoff of CLO collateral
balances and the expiration of available capital. Outflows for the year ended
December 31, 2021 also reflect the sale of Metropolitan on April 1, 2021, which
had $2.4 billion of Total AUM as of March 31, 2021.
(3)Market Activity & Other generally represents realized and unrealized gains
(losses) on portfolio investments in our carry funds and related co-investment
vehicles, 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.

Please refer to "-Segment Analysis" for a detailed discussion by segment of the
activity affecting Total AUM for each of the periods presented.

Perpetual Capital. "Perpetual Capital" refers to the assets we manage or advise
which have an indefinite term and for which there is no immediate requirement to
return capital to investors upon the realization of investments made with such
capital, except as required by applicable law. Perpetual Capital may be
materially reduced or terminated under certain conditions, including reductions
from changes in valuations and payments to investors, including through
elections by investors to redeem their investments, dividend payments, and other
payment obligations, as well as the termination of or failure to renew the
respective investment advisory agreements. Perpetual Capital includes: (a)
assets managed under the strategic advisory services agreement with Fortitude,
(b) our Core Plus real estate fund, (c) our business development companies and
certain other

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direct lending products, and (d) our Interval Fund. As of December 31, 2022, our
Total AUM and Fee-earning AUM included $61.0 billion and $58.2 billion,
respectively, of Perpetual Capital.

Portfolio Appreciation (Depreciation). The overall portfolio appreciation of 11%
in 2022 is comprised of 6% appreciation for carry funds within our Global
Private Equity segment focusing on corporate private equity, 16% for funds
focusing on real estate and 48% for fund focusing on infrastructure and natural
resources, 3% appreciation for carry funds in the Global Credit segment and 6%
appreciation for carry funds in the Global Investment Solutions segment.
Excluding the impact of foreign exchange, carry funds in our Global Investment
Solutions segment appreciated 4% in 2022. Our publicly traded investments, which
comprise 6% of the total fair value in our carry fund portfolio, depreciated
(24)% during the year.

While there is no perfectly comparable market index benchmark for the overall
portfolio or any of its segments or strategies, we would note that S&P 500 and
MSCI ACWI depreciation for the year were (19)% and (20)%, respectively, while
the FTSE NAREIT Composite depreciation was (28)%, the S&P Oil and Gas
Exploration & Production Index appreciation was 50%, and S&P Leveraged Loan
Index depreciation was (5)%.

Consolidation of Certain Carlyle Funds

The Company consolidates all entities that it controls either through a majority
voting interest or as the primary beneficiary of variable interest entities. The
entities we consolidate are referred to collectively as the Consolidated Funds
in our consolidated financial statements. As of December 31, 2022, our
Consolidated Funds represent approximately 2% of our AUM; 1% of our management
fees; and 1% of our investment income or loss for the year ended December 31,
2022.

We are not required under the consolidation guidance to consolidate in our
financial statements most of the investment funds we advise. However, we
consolidate certain CLOs and certain other funds that we advise. As of
December 31, 2022, our consolidated CLOs held approximately $6.2 billion of
total assets and comprised the majority of the assets and loans payable of the
Consolidated Funds. The assets and liabilities of the Consolidated Funds are
generally held within separate legal entities and, as a result, the liabilities
of the Consolidated Funds are non-recourse to us.

Generally, the consolidation of the Consolidated Funds has a gross-up effect on
our assets, liabilities and cash flows but has no net effect on the net income
attributable to the Company and equity. The majority of the net economic
ownership interests of the Consolidated Funds are reflected as non-controlling
interests in consolidated entities in the consolidated financial statements.
Because only a small portion of our funds are consolidated, the performance of
the Consolidated Funds is not necessarily consistent with or representative of
the combined performance trends of all of our funds.

For further information on our consolidation policy and the consolidation of
certain funds, see Note 3 to the consolidated financial statements included in
this Annual Report on Form 10-K.

Consolidated Results of Operations

The following table and discussion sets forth information regarding our
consolidated results of operations for the years ended December 31, 2022, 2021
and 2020. Our consolidated financial statements have been prepared on
substantially the same basis for all historical periods presented; however, the
consolidated funds are not the same entities in all periods shown due to changes
in U.S. GAAP, changes in fund terms and the creation and termination of funds.
As further described above, the consolidation of these funds primarily had the
impact of increasing interest and other income of Consolidated Funds, interest
and other expenses of Consolidated Funds, and net investment gains (losses) of
Consolidated Funds in the year that the fund is initially consolidated. The
consolidation of these funds had no effect on net income attributable to the
Company for the periods presented.
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                                                                                   Year Ended December 31,
                                                                     2022                      2021                   2020
                                                                   (Dollars in millions, except share and per share data)
Revenues
Fund management fees                                         $          2,030.1          $     1,667.5          $     1,486.0
Incentive fees                                                             63.7                   48.8                   37.0
Investment income (loss)
Performance allocations                                                 1,327.5                6,084.6                1,635.9
Principal investment income (loss)                                        570.5                  637.3                 (540.7)
Total investment income                                                 1,898.0                6,721.9                1,095.2
Interest and other income                                                 135.9                   90.7                   89.6
Interest and other income of Consolidated Funds                           311.0                  253.2                  226.8

Total revenues                                                          4,438.7                8,782.1                2,934.6
Expenses
Compensation and benefits
Cash-based compensation                                                 1,052.0                  908.0                  849.6
Equity-based compensation                                                 154.0                  163.1                  105.0
Performance allocations and incentive fee related
compensation                                                              719.9                  2,961                  779.1
Total compensation and benefits                                         1,925.9                4,032.1                1,733.7
General, administrative, and other expenses                               575.8                  431.7                  349.3
Interest                                                                  110.4                  113.3                   94.0
Interest and other expenses of Consolidated Funds                         211.6                  178.5                  163.5

Other non-operating (income) expenses                                       1.0                    1.5                   (7.2)
Total expenses                                                          2,824.7                4,757.1                2,333.3
Other income (loss)
Net investment gains (losses) of Consolidated Funds                       (41.5)                   2.5                  (21.3)
Income before provision for income taxes                                1,572.5                4,027.5                  580.0
Provision for income taxes                                                287.8                  982.3                  197.2
Net income                                                              1,284.7                3,045.2                  382.8

Net income attributable to non-controlling interests in
consolidated entities

                                                      59.7                   70.5                   34.6

Net income attributable to The Carlyle Group Inc. Common
Stockholders

                                                 $          1,225.0          $     2,974.7          $       348.2
Net income attributable to The Carlyle Group Inc. per common
share
Basic                                                        $             3.39          $        8.37          $        0.99
Diluted                                                      $             3.35          $        8.20          $        0.97
Weighted-average common shares
Basic                                                               361,278,064            355,241,653            350,464,315
Diluted                                                             365,707,722            362,574,564            358,393,802


                                      118

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Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 and Year
Ended December 31, 2021 Compared to Year Ended December 31, 2020.

Revenues

Total revenues decreased $4.3 billion, or 49%, for the year ended December 31,
2022 as compared to 2021 and increased $5.8 billion, or 199%, for the year ended
December 31, 2021 as compared to 2020. The following table provides the
components of the changes in total revenues for the years ended December 31,
2022 and 2021:

                                                             Year Ended December 31,
                                                               2022               2021
                                                              (Dollars in millions)
 Total Revenues, prior year                            $     8,782.1           $ 2,934.6
 Increases (Decreases):
 Increase in fund management fees                              362.6        

181.5

 Increase in incentive fees                                     14.9        

11.8

(Decrease) increase in investment income, including

 performance allocations                                    (4,823.9)       

5,626.7

Increase in interest and other income of Consolidated

 Funds                                                          57.8        

26.4

 Increase in interest and other income                          45.2                 1.1
 Total (decrease) increase                                  (4,343.4)            5,847.5
 Total Revenues, current year                          $     4,438.7           $ 8,782.1

Fund Management Fees. Fund management fees increased $362.6 million, or 22%, for
the year ended December 31, 2022 as compared to 2021, and increased $181.5
million, or 12%, for the year ended December 31, 2021 as compared to 2020,
primarily due to the following:

                                                               Year Ended December 31,
                                                                  2022             2021
                                                                (Dollars in millions)

Higher management fees from the commencement of the $ 312.4

      $ 183.0
investment period for certain newly raised funds
Lower management fees resulting from the change in basis           (65.2)   

(28.3)

for earning
management fees from commitments to invested capital for
certain funds
and from net investment activity in funds whose management
fees are based on invested capital
Increase (decrease) in catch-up management fees from                 9.1    

(5.8)

subsequent closes of funds that are in the fundraising
period

Higher transaction and portfolio advisory fees                      15.5    

39.9

Higher management fees due to CBAM and Abingworth                  116.7               -

acquisitions and Fortitude strategic advisory services
agreement
Lower fund management fees due to sale of MRE on April 1,

           (4.7)   

(15.9)

2021

All other changes(1)                                               (21.2)   

8.6

Total increase in fund management fees                      $      362.6    

$ 181.5

(1) The change in the year ended December 31, 2022 includes a $12.7 million loss
related to the purchase of third party investor interests in a Global Investment
Solutions product, which was recorded as a reduction to fund management fees.

Fund management fees include transaction and portfolio advisory fees, net of
rebate offsets, of $106.2 million, $90.7 million, and $50.8 million for the
years ended December 31, 2022, 2021 and 2020, respectively.

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Investment Income. Investment income decreased $4.8 billion for the year ended
December 31, 2022 as compared to 2021, and increased $5.6 billion for the year
ended December 31, 2021 as compared to 2020. The components of investment income
are included in the following table:

                                                                   Year Ended December 31,
                                                        2022                2021                2020
                                                                    (Dollars in millions)
Performance allocations, excluding NGP              $  1,327.5          $  6,084.6          $  1,635.9
Investment income from NGP:
Net investment income from NGP Management                 58.1                59.2                58.6
Performance allocations from investment in the
general partners of the NGP Carry Funds                  560.7                 3.8                   -

Net investment income from principal investments in
NGP Carry Funds

                                           44.5                20.1               (12.0)
Investment income (loss) from our carry funds:
Global Private Equity                                     76.4               258.8                89.6
Global Credit                                            (14.6)               12.3                (1.9)
Global Investment Solutions                                9.5                27.0                 9.8
Investment (loss) income from our CLOs                   (48.6)               22.9                (1.8)
Investment (loss) income from Carlyle FRL               (119.0)              161.0              (691.9)
Investment income from our other Global Credit
products                                                  (0.7)               17.6                 9.1
Investment income (loss) on foreign currency hedges        1.1                (3.9)                2.3
All other investment income (loss) (1)                     3.1                58.5                (2.5)
Total investment income                             $  1,898.0          $  6,721.9          $  1,095.2


(1) All other investment income in 2021includes investment income of $49.8
million associated with the remeasurement of a corporate investment, which was
previously carried at cost, resulting from an observable price change pursuant
to ASC 321, Investments-Equity Securities.

  Investment income during the years ended December 31, 2022, 2021 and 2020
primarily reflects carry fund appreciation of 11%, 41%, and 10%, respectively,
which resulted in significantly higher performance allocations in 2021 relative
to 2022 and 2020, as discussed below. Investment loss from our equity method
investment in Carlyle FRL during the year ended December 31, 2022 includes an
investment loss of $176.9 million which was recorded as a result of the dilution
in our indirect ownership in Fortitude from 19.9% to 13.5% in connection with
the initial drawdown of the Fortitude capital raise. The year ended December 31,
2020 also includes a loss in principal investment income (loss) of $620.7
million related to the contribution of our 19.9% interest in Fortitude to
Carlyle FRL, at which time we began accounting for our investment under the
equity method based on our net asset value in the fund. As of December 31, 2022,
our investment in Carlyle FRL was $646.0 million, relative to our cost of
$389.4 million. See Note 6 to the consolidated financial statements for more
information regarding our equity method investment in Carlyle FRL and the
Control Transaction.

Our investment in NGP entitles us to 55% of the management fee-related revenue
of the NGP entities that serve as advisors to the NGP Energy Funds and is
subject to impairment under the U.S. GAAP accounting for equity method
investments. We evaluate our equity method investment in NGP for impairment
whenever events or changes in circumstances indicate that the carrying amount of
the investment may not be recoverable, but no less than quarterly. For example,
challenges with fundraising or lower future management fees could cause an
impairment of our investment in NGP in the future. As of December 31, 2022, we
continue to believe that our investment in NGP is not impaired.

We recorded a decrease in investment income from CLOs during the year ended
December 31, 2022 relative to the comparable period in 2021. The fair value of
the CLO investments held by the firm (before the effects of consolidation)
decreased 24% in 2022, with our investments in subordinated notes depreciating
37% and our investments in the senior notes depreciating 13% during 2022.

Performance Allocations. Performance allocations decreased $4.8 billion for the
year ended December 31, 2022 compared to 2021 and increased $4.4 billion for the
year ended December 31, 2021 as compared to 2020. Performance allocations by
segment for the years ended December 31, 2022, 2021 and 2020 comprised the
following:
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                                                     Year Ended December 31,
                                               2022           2021           2020
                                                      (Dollars in millions)
           Global Private Equity            $ 1,098.3      $ 5,223.2      $ 1,440.5

           Global Credit                         24.0          156.6           21.5
           Global Investment Solutions(1)       205.2          704.8          173.9
           Total performance allocations    $ 1,327.5      $ 6,084.6      $ 1,635.9
           Total carry fund appreciation        11%            41%            10%


(1) The Company's primary and secondary investments in external funds are
generally valued based on its proportionate share of the net assets provided by
the third party general partners of the underlying fund partnerships based on
the most recent available information which typically has a lag of up to 90
days. As a result, amounts presented may not include the impact of economic
activity in the current quarter.

Refer to "-Key Financial Measures" for a listing of the funds with performance
allocations in excess of 10% of the total for the periods presented.

The year 2022 was characterized by high inflation, significant market
volatility, rapidly tightening financial conditions, a surge in the U.S. dollar
against most currencies, and weakening fundamentals across the globe. Estimates
of S&P 500 constituents' earnings growth for 2022 were steadily marked down
throughout the year, and currently stand at 4.6% in 2022. The Dow Jones, S&P
500, and Nasdaq 100 fell 8.8%, 19.4 %, and 33%, respectively, in 2022. Globally,
the MSCI ACWI, EuroStoxx 600, and Shanghai Composite fell 19.8%, 12.9%, and
15.1%, respectively, over the same period. Our carry fund portfolio continued to
reflect the impact of the broader macroeconomic environment in the fourth
quarter but outperformed the global equity markets for the year. Within our
Global Private Equity segment, our corporate private equity funds appreciated 1%
in the fourth quarter and 6% for the year, and our real estate funds depreciated
1% during the fourth quarter and appreciated 16% for the year. Our
infrastructure and natural resources funds appreciated 2% during the fourth
quarter and appreciated 48% for the year. Global Credit carry funds, which
represent approximately 11% of the total Global Credit remaining fair value,
appreciated 2% in the fourth quarter and 3% for the year. Global Investment
Solutions funds depreciated 3% in the fourth quarter but appreciated 6% for the
year, however excluding the impact of foreign currency translation of the
USD-denominated investments in our EUR-based funds, our Global Investment
Solutions were flat in the fourth quarter, and experienced 4% appreciation for
the year. The valuations of our primary and secondary funds of funds generally
reflect investment fair values on a one-quarter lag.

Interest and Other Income. Interest and other income increased $45.2 million for
the year ended December 31, 2022 as compared to 2021 and increased $1.1 million
for the year ended December 31, 2021 as compared to 2020. The increase for the
year ended December 31, 2022 was primarily due to an increase in the
reimbursement of certain costs incurred on behalf of Carlyle funds, as well as
interest income from investments in CLO senior notes, due in part to the CBAM
acquisition, and interest income on corporate treasury investments. The increase
for the year ended December 31, 2021 was primarily as a result of an increase in
the reimbursement of certain costs incurred on behalf of Carlyle funds.

Interest and Other Income of Consolidated Funds. Our CLOs generate interest
income primarily from investments in bonds and loans inclusive of amortization
of discounts and generate other income from consent and amendment fees.
Substantially all interest and other income of the CLOs and other consolidated
funds together with interest expense of our CLOs and net investment gains
(losses) of Consolidated Funds is attributable to the related funds' limited
partners or CLO investors. Accordingly, such amounts have no material impact on
net income attributable to the Company.

Interest and other income of consolidated funds increased $57.8 million for the
year ended December 31, 2022 as compared to 2021, and increased $26.4 million
for the year ended December 31, 2021 as compared to 2020. Substantially all of
the variance in interest and other income of Consolidated Funds for both periods
relates to interest income from CLOs.

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Expenses

Total expenses decreased $1.9 billion for the year ended December 31, 2022 as
compared to 2021, and increased $2.4 billion for the year ended December 31,
2021 as compared to 2020. The following table provides the components of the
changes in total expenses for the year ended December 31, 2022 and 2021:

                                                              Year Ended December 31,
                                                                2022               2021
                                                               (Dollars in millions)
Total Expenses, prior year                              $     4,757.1           $ 2,333.3
Increases (Decreases):
(Decrease) increase in total compensation and benefits       (2,106.2)      

2,298.4

Increase in general, administrative and other expenses 144.1

82.4

(Decrease) increase in interest                                  (2.9)      

19.3

Increase in interest and other expenses of Consolidated
Funds

                                                            33.1       

15.0

(Decrease) increase in other non-operating expense               (0.5)                8.7

Total (decrease) increase                                    (1,932.4)            2,423.8
Total Expenses, current year                            $     2,824.7           $ 4,757.1



  Total Compensation and Benefits. Total compensation and benefits decreased
$2.1 billion for the year ended December 31, 2022 as compared to 2021, and
increased $2.3 billion for the year ended December 31, 2021 as compared to 2020,
due to the following:

                                                              Year Ended December 31,
                                                                2022               2021
                                                               (Dollars in millions)

Increase in cash-based compensation and benefits $ 144.0

     $    58.4
(Decrease) increase in equity-based compensation                  (9.1)     

58.1

(Decrease) increase in performance allocations and
incentive fee related compensation

                            (2,241.1)     

2,181.9

Total (decrease) increase in total compensation and
benefits

                                                 $    (2,106.2)     

$ 2,298.4

Cash-based compensation and benefits. Cash-based compensation and benefits
increased $144.0 million, or 16%, for the year ended December 31, 2022 as
compared to 2021, and increased $58.4 million, or 7%, for the year ended
December 31, 2021 as compared to 2020, primarily due to the following:

                                                              Year Ended December 31,
                                                                  2022              2021
                                                               (Dollars in millions)

 Increase in headcount and bonuses                        $        73.4     

$ 81.0

(Decrease) increase in compensation expense associated

 with contingent earn-out payments(1)                              70.6     

(22.6)

Total increase in base compensation and benefits $ 144.0

$ 58.4

(1) The Carlyle Aviation Partners acquisition included an earn-out of up to
$150.0 million, under which we have paid $53.6 million through December 31,
2022. The Abingworth acquisition included an earn-out of up to $130.0 million.
For additional information, refer to "-Liquidity and Capital
Resources-Contingent Cash Payments For Business Acquisitions and Strategic
Investments."

Equity-based compensation. Equity-based compensation, net of forfeitures,
decreased $9.1 million, or 6%, for the year ended December 31, 2022 as compared
to 2021. The decrease in equity-based compensation from 2021 to 2022 was
primarily driven by fewer performance-based restricted stock units expected to
vest based on 2022 performance compared to 2021, partially offset by $10 million
of expense related to the modification of certain restricted stock awards in
connection with the departure of our former chief executive officer. On February
1, 2023, we granted a total of 9.9 million restricted stock units to our
personnel, including certain senior Carlyle professionals and other key
personnel. In addition, on February 15, 2023, we
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will grant performance- and time-based inducement equity awards in connection
with the appointment of our new Chief Executive Officer. As a result of these
grants, and combined with a higher share price than in prior periods, we expect
that equity-based compensation expense will be higher in the coming years than
it has been.

The increase in equity-based compensation from 2020 to 2021 was primarily due to
the expanded use of equity-based compensation incentive programs as well as a
forfeiture credit recorded in 2020 related to the retirement of one of our
co-chief executive officers. During the year ended December 31, 2021, we granted
7.1 million long-term strategic restricted stock units to certain senior
professionals, the majority of which are eligible to vest based on the
achievement of annual performance targets over four years, with a larger
proportion of the awards eligible to vest based on the 2024 performance year.

Performance allocations and incentive fee related compensation expense.
Performance allocations and incentive fee related compensation expense decreased
$2.2 billion for the year ended December 31, 2022 as compared to 2021 and
increased $2.2 billion for the year ended December 31, 2021 as compared to 2020.
Performance allocations and incentive fee related compensation as a percentage
of performance allocations and incentive fee was 52%, 48%, and 47% for the years
ended December 31, 2022, 2021 and 2020, respectively. Performance allocations
and incentive fee related compensation as a percentage of performance
allocations and incentive fees fluctuates depending on the mix of funds
contributing to performance allocations and incentive fees in a given period.
For our largest segment, Global Private Equity, our performance allocations and
incentive fee related compensation expense as a percentage of performance
allocations and incentive fees is generally around 45%. Performance allocations
from our Global Investment Solutions segment pay a higher ratio of performance
allocations and incentive fees as compensation, primarily as a result of the
terms of our acquisition of AlpInvest (see "-Key Financial
Measures-Revenues-Investment Income" for more information regarding the terms of
our acquisition).

General, Administrative and Other Expenses. General, administrative and other
expenses increased $144.1 million for the year ended December 31, 2022 as
compared to 2021, and increased $82.4 million for the year ended December 31,
2021 as compared to 2020, primarily due to:

                                                              Year Ended December 31,
                                                                 2022               2021
                                                               (Dollars in millions)

Higher (lower) intangible asset amortization(1) $ 93.7

       $ (4.4)
Higher depreciation and amortization                               1.7      

4.3

Higher (lower) professional fees                                  48.3      

(5.4)

Higher (lower) travel and conference costs                        29.2      

(2.9)

Higher external fundraising costs                                  7.8      

2.0

Higher (lower) IT and other office expenses                       18.8      

(1.1)

Higher rent expense                                                0.7      

7.7

Foreign exchange adjustments(2)                                  (38.7)     

21.9

Right-of-use asset impairment (3)                                (26.8)     

26.8

CCC litigation cost recovery in 2020(4)                              -      

29.9

Other changes(5)                                                   9.4      

3.6

Total increase in general, administrative and other
expenses

                                                 $       144.1      

$ 82.4

(1)  Intangible asset amortization increase for the year ended December 31, 2022
as compared to 2021 was primarily related to the CBAM and Abingworth
acquisitions. See Note 4 to the consolidated financial statements in Item 8 of
this Annual Report on Form 10-K for more information.
(2)  Foreign exchange adjustments are primarily driven by the revaluation on our
European CLO investments. Foreign exchange adjustments for the year ended
December 31, 2021 also include a loss of $14.7 million from the sale of our
local Brazilian management entity related to amounts previously recorded in
accumulated other comprehensive income.
(3)   In connection with the April 1, 2021 sale of MRE, we entered into a
sublease of certain office space in New York which resulted in a $26.8 million
right-of-use asset impairment charge.
(4)  General, administrative and other expenses in 2020 included the positive
impact of a $29.9 million recovery of litigation costs. See Note 8 to the
consolidated financial statements in Part II, Item 8 to the 2021 Annual Report
on Form 10-K.
(5) The year ended December 31, 2022 includes $7.5 million in advances to a
portfolio company which have been fully reserved as an expense until recovered.

Interest. Interest decreased $2.9 million for the year ended December 31, 2022
as compared to 2021 primarily due to lower interest accruals on the 3.875%
Senior Notes, which were redeemed in November 2021, and interest expense of
$10.1 million recorded in 2021 upon their early extinguishment. These impacts
were partially offset by higher interest on CLO
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term loans, mainly related to CBAM, and higher interest accruals on the
Subordinated Notes issued in May 2021. Interest increased $19.3 million for the
year ended December 31, 2021 as compared to 2020 primarily due to interest
accrued on the Subordinated Notes, as well as $10.1 million of interest expense
recorded upon the early extinguishment of the 3.875% Senior Notes in November
2021. These increases were partially offset by lower interest accruals on the
3.875% Senior Notes. See Note 8 to the consolidated financial statements in Item
8 of this Annual Report on Form 10-K for more information.

Interest and Other Expenses of Consolidated Funds. Interest and other expenses
of Consolidated Funds increased $33.1 million for the year ended December 31,
2022 as compared to 2021, and increased $15.0 million for the year ended
December 31, 2021 as compared to 2020, primarily due to higher interest expense
on the consolidated CLOs.

The CLOs incur interest expense on their loans payable and incur other expenses
consisting of trustee fees, rating agency fees and professional fees.
Substantially all interest and other income of our CLOs together with interest
expense of our CLOs and net investment gains of Consolidated Funds is
attributable to the related funds' limited partners or CLO investors.
Accordingly, such amounts have no material impact on net income attributable to
the Company.

Other Non-operating Expenses (Income). For the year ended December 31, 2021,
this caption includes a loss on the sale of our local Brazilian management
entity and related transaction costs of $4.7 million and a $5.0 million gain on
the sale of our interest in MRE. For the year ended December 31, 2020, this
caption includes the impact of the Conversion on our tax receivable agreement
liability, which was reduced by $9.3 million. See Note 11 to the consolidated
financial statements in Part II, Item 8 of the Annual Report on Form 10-K for
the year ended December 31, 2020 for information regarding the impact of the
Conversion.

Net Investment Gains (Losses) of Consolidated Funds

  For the years ended December 31, 2022, 2021 and 2020 net investment (losses)
gains of Consolidated Funds was $(41.5) million, $2.5 million, and $(21.3)
million, respectively, comprised of the activity of the consolidated CLOs and
certain other funds. For the consolidated CLOs, the amount reflects the net gain
or loss on the fair value adjustment of both the assets and liabilities. The
components of net investment gains of consolidated funds for the respective
periods are:

                                                                         Year Ended December 31,
                                                              2022                   2021                2020
                                                                          (Dollars in millions)
Realized (losses) gains                                 $     (29.6)            $       9.6          $    (91.3)
Net change in unrealized (losses) gains                      (378.5)                   67.0                62.2
Total (losses) gains                                         (408.1)                   76.6               (29.1)
Gains (losses) from liabilities of CLOs                       366.6                   (74.1)                7.8

Total net investment (losses) gains of Consolidated
Funds

                                                   $     (41.5)        

$ 2.5 $ (21.3)

Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes was $287.8 million, $982.3 million and
$197.2 million for the years ended December 31, 2022, 2021 and 2020,
respectively, with effective tax rates of 18.3%, 24.4% and 34.0%, respectively.
The effective tax rate for the years ended December 31, 2022, 2021 and 2020 is
primarily comprised of the 21% U.S. federal corporate income tax rate plus U.S.
state and foreign corporate income taxes, partially offset by non-controlling
interests and the impact of a tax benefit resulting from the vesting of
restricted stock units. The effective tax rate for the year ended December 31,
2022 also differs from the statutory rate due to the use of foreign tax credits,
a lower estimated state effective tax rate due to the mix of income during the
year, and a benefit due to a restructuring of ownership in our Global Investment
Solutions business. The effective tax rate for the year ended December 31, 2020
also differs from the statutory rate due to the income tax expense resulting
from the Conversion (see Note 11 to the consolidated financial statements in
Part II, Item 8 of the Annual Report on Form 10-K for the year ended December
31, 2020 for information regarding the impact of the Conversion). Excluding this
impact from Conversion, our effective income tax rate would have been
approximately 19% for the year ended December 31, 2020.

As of December 31, 2022 and 2021, the Company had federal, state, local and
foreign taxes payable of $39.7 million and $93.3 million, respectively, which is
recorded as a component of accounts payable, accrued expenses and other
liabilities on the accompanying consolidated balance sheet.

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Net Income Attributable to Non-controlling Interests in Consolidated Entities

Net income attributable to non-controlling interests in consolidated entities
was $59.7 million, $70.5 million, and $34.6 million for the years ended December
31, 2022, 2021 and 2020, respectively. These amounts are primarily attributable
to the net earnings of the Consolidated Funds for each period, which are
substantially all allocated to the related funds' limited partners or CLO
investors, as well as net earnings from our Insurance Solutions business
allocated to certain third party investors. The net income (loss) of our
Consolidated Funds, after eliminations, was $36.1 million, $2.7 million, and
$8.1 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Net income attributable to non-controlling interests in consolidated entities
also includes net income attributable to non-controlling interests in carried
interest, giveback obligations, and cash held for carried interest
distributions.

Net Income (Loss) Attributable to The Carlyle Group Inc. Common Stockholders

The net income attributable to The Carlyle Group Inc. common stockholders was
$1.2 billion, $3.0 billion, and $348.2 million for the years ended December 31,
2022, 2021 and 2020, respectively.

Non-GAAP Financial Measures

The following tables set forth information in the format used by management when
making resource deployment decisions and in assessing performance of our
segments. These non-GAAP financial measures are presented for the years ended
December 31, 2022, 2021 and 2020. Our Non-GAAP financial measures exclude the
effects of unrealized performance allocations net of related compensation
expense, unrealized principal investment income, consolidated funds,
acquisition-and disposition-related items including amortization and any
impairment charges of lease right-of-use assets or acquired intangible assets
and contingent consideration taking the form of earn-outs, charges associated
with equity-based compensation, changes in the tax receivable agreement
liability, corporate actions and infrequently occurring or unusual events.

The following table shows our total segment Distributable Earnings, or "DE," and
Fee Related Earnings, or "FRE," for the years ended December 31, 2022, 2021 and
2020.

                                                          Year Ended December 31,
                                                    2022           2021           2020
                                                           (Dollars in millions)
      Total Segment Revenues                     $ 4,401.4      $ 4,950.1      $ 2,289.5
      Total Segment Expenses                       2,492.4        2,706.4        1,527.4
      (=) Distributable Earnings                 $ 1,909.0      $ 2,243.7      $   762.1
      (-) Realized Net Performance Revenues          998.5        1,529.6          246.3
      (-) Realized Principal Investment Income       150.6          209.5           73.0
      (+) Net Interest                                74.5           93.5           76.9
      (=) Fee Related Earnings                   $   834.4      $   598.1      $   519.7


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The following table sets forth our total segment revenues for the years ended
December 31, 2022, 2021 and 2020.

                                                                  Year Ended December 31,
                                                       2022                2021                2020
                                                                   (Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees                               $  1,996.9          $  1,654.6          $  1,523.3
Portfolio advisory and transaction fees, net and
other                                                   111.1                97.0                56.9
Fee related performance revenues                        129.3                43.2                35.9
Total fund level fee revenues                         2,237.3             1,794.8             1,616.1
Realized performance revenues                         1,980.7             2,938.6               586.1
Realized principal investment income                    150.6               209.5                73.0
Interest income                                          32.8                 7.2                14.3
Total Segment Revenues                             $  4,401.4          $  4,950.1          $  2,289.5

The following table sets forth our total segment expenses for the years ended
December 31, 2022, 2021 and 2020.

                                                                Year Ended December 31,
                                                          2022           2021           2020
                                                                 (Dollars in millions)
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits                   $   994.2      $   891.5      $   821.5
Realized performance revenues related compensation         982.2        1,409.0          339.8
Total compensation and benefits                          1,976.4        2,300.5        1,161.3
General, administrative, and other indirect expenses       369.8          267.6          241.4
Depreciation and amortization expense                       38.9           37.6           33.5
Interest expense                                           107.3          100.7           91.2
Total Segment Expenses                                 $ 2,492.4      $ 2,706.4      $ 1,527.4



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  Income before provision for income taxes is the U.S. GAAP financial measure
most comparable to Distributable Earnings and Fee Related Earnings. The
following table is a reconciliation of income before provision for income taxes
to Distributable Earnings and to Fee Related Earnings.

                                                                          

Year Ended December 31,

                                                               2022                2021                2020
                                                                           (Dollars in millions)
Income before provision for income taxes                   $  1,572.5          $  4,027.5          $    580.0
Adjustments:
Net unrealized performance revenues                            (183.7)           (1,606.2)             (598.7)
Unrealized principal investment (income) loss(1)                 38.3              (351.8)              556.2

Principal investment loss from dilution of indirect
investment in Fortitude

                                         176.9                   -                   -

Adjusted unrealized principal investment (income) loss
from direct investment in Fortitude(2)

                              -                   -               104.4
Equity-based compensation(3)                                    161.9               172.9               116.6

Acquisition related charges, including amortization of
intangibles and impairment

                                      187.4                37.7                38.1

Tax expense associated with certain foreign performance
revenues

                                                          3.0               (17.1)               (7.9)

Net income attributable to non-controlling interests in
consolidated entities

                                           (59.7)              (70.5)              (34.6)

Right-of-use asset impairment                                       -                26.8                   -
Debt extinguishment costs                                           -                10.2                   -

Other adjustments, including severance and Conversion
costs in 2020

                                                    12.4                14.2                 8.0
Distributable Earnings                                        1,909.0             2,243.7               762.1
Realized net performance revenues, net of related
compensation(4)                                                 998.5             1,529.6               246.3
Realized principal investment income(4)                         150.6               209.5                73.0
Net interest                                                     74.5                93.5                76.9
Fee Related Earnings                                       $    834.4          $    598.1          $    519.7



(1)  Adjustments to unrealized principal investment income (loss) during the
year ended December 31, 2020 are inclusive of $211.8 million of unrealized gains
resulting from changes in the fair value of embedded derivatives related to
certain reinsurance contracts included in Fortitude's U.S. GAAP financial
statements prior to the contribution of our investment in Fortitude to Carlyle
FRL on June 2, 2020. At the time of the contribution of our investment to
Carlyle FRL, we began accounting for our investment under the equity method
based on our net asset value in the fund, which is an investment company that
accounts for its investment in Fortitude at fair value. This resulted in an
unrealized loss in principal investment income (loss) of $620.7 million during
the year ended December 31, 2020.

(2)  Adjusted unrealized principal investment income (loss) from the investment
in Fortitude represents 19.9% of Fortitude's estimated net income (loss),
excluding the unrealized gains (losses) related to embedded derivatives, prior
to the contribution of our investment in Fortitude to Carlyle FRL on June 2,
2020.

(3) Equity-based compensation for the years ended December 31, 2022, 2021 and
2020 includes amounts presented in principal investment income and general,
administrative and other expenses in our U.S. GAAP statement of operations.

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(4)   See reconciliation to most directly comparable U.S. GAAP measure below:

                                                                       Year Ended December 31, 2022
                                                                                                           Total
                                                          Carlyle                                       Reportable
                                                        Consolidated           Adjustments(5)            Segments
                                                                           (Dollars in millions)
Performance revenues                                  $     1,327.5          $         653.2          $    1,980.7
Performance revenues related compensation expense             719.9                    262.3                 982.2
Net performance revenues                              $       607.6          $         390.9          $      998.5
Principal investment income (loss)                    $       570.5          $        (419.9)         $      150.6

                                                                       Year Ended December 31, 2021
                                                                                                           Total
                                                          Carlyle                                       Reportable
                                                        Consolidated           Adjustments(5)            Segments
                                                                           (Dollars in millions)
Performance revenues                                  $     6,084.6          $      (3,146.0)         $    2,938.6
Performance revenues related compensation expense           2,961.0                 (1,552.0)              1,409.0
Net performance revenues                              $     3,123.6          $      (1,594.0)         $    1,529.6
Principal investment income (loss)                    $       637.3         

$ (427.8) $ 209.5

Year Ended December 31, 2020

                                                                                                             Total
                                                            Carlyle                                       Reportable
                                                         Consolidated            Adjustments(5)            Segments
                                                                            (Dollars in millions)
Performance revenues                                   $      1,635.9          $      (1,049.8)         $      586.1
Performance revenues related compensation expense               779.1                   (439.3)                339.8
Net performance revenues                               $        856.8          $        (610.5)         $      246.3
Principal investment income (loss)                     $       (540.7)      

$ 613.7 $ 73.0

(5)  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
Non-GAAP results, (ii) amounts earned from the Consolidated Funds, which are
eliminated in the U.S. GAAP consolidation but are included in the Non-GAAP
results, (iii) amounts attributable to non-controlling interests in consolidated
entities, which are excluded from the Non-GAAP results, (iv) the
reclassification of NGP performance revenues, which are included in principal
investment income in the U.S. GAAP financial statements, (v) the
reclassification of fee related performance revenues, which are included in fund
level fee revenues in the Non-GAAP 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 investment in NGP Management and its affiliates to the appropriate
operating captions for the Non-GAAP results, and the exclusion of charges
associated with the investment in NGP Management and its affiliates that are
excluded from the Non-GAAP results, and the exclusion of the principal
investment loss from the dilution of the indirect investment in Fortitude (see
Note 6 to the consolidated financial statements).

Distributable Earnings for our reportable segments is as follows:

                                      Year Ended December 31,
                                 2022           2021          2020
                                       (Dollars in millions)
Global Private Equity         $ 1,505.6      $ 2,021.9      $ 604.5

Global Credit                     315.5          119.7        116.2
Global Investment Solutions        87.9          102.1         41.4
Total                         $ 1,909.0      $ 2,243.7      $ 762.1



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Segment Analysis

Discussed below is our DE and FRE for our segments for the periods presented.
Our segment information is reflected in the manner used by our senior management
to make operating and compensation decisions, assess performance and allocate
resources.

For segment reporting purposes, revenues and expenses are presented on a basis
that deconsolidates our Consolidated Funds. As a result, segment revenues from
management fees, realized performance revenues and realized principal investment
income (loss) are different than those presented on a consolidated U.S. GAAP
basis because these revenues recognized in certain segments are received from
Consolidated Funds and are eliminated in consolidation when presented on a
consolidated U.S. GAAP basis. Furthermore, segment expenses are different than
related amounts presented on a consolidated U.S. GAAP basis due to the exclusion
of fund expenses that are paid by the Consolidated Funds.




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Global Private Equity

For purposes of presenting our results of operations for this segment, our
earnings from our investments in NGP are presented in the respective operating
captions. The following table presents our results of operations for our Global
Private Equity(1) segment:

                                                                          Year Ended December 31,
                                                               2022                2021                2020
                                                                           (Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees                                       $  1,300.9          $  1,111.8          $  1,042.0
Portfolio advisory and transaction fees, net and other           29.5                34.3                22.8
Fee related performance revenues                                 69.4                   -                   -
Total fund level fee revenues                                 1,399.8             1,146.1             1,064.8
Realized performance revenues                                 1,656.6             2,757.8               404.5
Realized principal investment income                            108.7               167.8                52.0
Interest income                                                  14.9                 1.4                 3.3
Total revenues                                                3,180.0             4,073.1             1,524.6
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits                            598.3               546.2               501.9
Realized performance revenues related compensation              751.5             1,243.6               183.0
Total compensation and benefits                               1,349.8             1,789.8               684.9
General, administrative, and other indirect expenses            235.3               172.5               157.9
Depreciation and amortization expense                            25.6                25.1                22.0
Interest expense                                                 63.7                63.8                55.3
Total expenses                                                1,674.4             2,051.2               920.1
(=) Distributable Earnings                                 $  1,505.6          $  2,021.9          $    604.5
(-) Realized Net Performance Revenues                           905.1             1,514.2               221.5
(-) Realized Principal Investment Income                        108.7               167.8                52.0
(+) Net Interest                                                 48.8                62.4                52.0
(=) Fee Related Earnings                                   $    540.6          $    402.3          $    383.0


(1) On August 31, 2021, we sold 100% of our interest in our local Brazilian
management entity and entered into a sub-advisory agreement with the acquiring
company, which will provide advisory services with respect to Carlyle's
Brazilian portfolio. The loss on the sale and related transaction costs of $4.7
million and foreign currency translation loss of $14.7 million are not included
in DE or FRE. See "Non-GAAP Financial Measures" for the reconciliation of Total
DE and FRE to the U.S. GAAP financial statements.

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Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 and Year
Ended December 31, 2021 Compared to Year Ended December 31, 2020

Distributable Earnings

  Distributable earnings decreased $516.3 million for the year ended
December 31, 2022 as compared to 2021, and increased $1.4 billion for the year
ended December 31, 2021 as compared to 2020. The following table provides the
components of the changes in distributable earnings for the years ended December
31, 2022 and 2021:

                                                              Year Ended December 31,
                                                                2022               2021
                                                               (Dollars in millions)
Distributable earnings, prior year                      $     2,021.9           $   604.5
Increases (decreases):
Increase in fee related earnings                                138.3       

19.3

(Decrease) increase in realized net performance
revenues                                                       (609.1)      

1,292.7

(Decrease) increase in realized principal investment
income

                                                          (59.1)      

115.8

Decrease (increase) in net interest                              13.6       

(10.4)

Total (decrease) increase                                      (516.3)      

1,417.4

Distributable earnings, current year                    $     1,505.6           $ 2,021.9



  Realized Net Performance Revenues. Realized net performance revenues decreased
$609.1 million for the year ended December 31, 2022 as compared to 2021,
primarily driven by lower realization activity in our U.S. buyout and U.S. real
estate funds, partially offset by higher realizations in our Europe buyout.
During the year ended December 31, 2022, we realized performance revenues for
the first time on our fourth Europe buyout and fourth Europe Technology funds.

Realized net performance revenues increased $1.3 billion for the year ended
December 31, 2021 as compared to 2020, primarily driven by realization activity
in our U.S., Europe and Asia buyout funds, as well as our U.S. real estate
funds. During the year ended December 31, 2021 we realized performance revenues
for the first time on our eighth U.S. real estate fund, our fourth Asia buyout
fund, and our third Japan buyout fund.

Realized net performance revenues were primarily generated by the following
funds for the years ended December 31, 2022, 2021 and 2020, respectively:

                                   Year Ended December 31,
                        2022                2021                2020
                        CP V                CP V                CP IV
                       CP VI               CP VI                CP V
                      CEOF II             CEP III               CP VI
                      CGFSP II            CAP III             CETP III
                       CEP IV              CAP IV              CGFSP I
                       CAP IV             CETP III            CGFSP II
                      CJP III              CRP V               CRP III
                      CETP IV             CRP VII              CRP VII
                      CRP VIII            CRP VIII              CERF
                                          CJP III             CEREP III
                                          CGFSP II               CCI



  Realized Principal Investment Income. Realized principal investment income
decreased $59.1 million for the year ended December 31, 2022 as compared to 2021
and increased $115.8 million for the year ended December 31, 2021 as compared to
2020. The decrease in realized principal investment income for the year ended
December 31, 2022 as compared to 2021 was primarily driven by decreases in
realized principal investment income from our U.S. buyout, U.S. real estate and
U.S. growth funds, partially offset by an increase in realized principal
investment income from our NGP Energy funds.
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The increase in realized principal investment income for the year ended
December 31, 2021 as compared to 2020 was primarily driven by increases in
realized principal investment income from our U.S. buyout and U.S. real estate
funds, as well as our Europe buyout and U.S. growth funds.

Fee Related Earnings

  Fee related earnings increased $138.3 million for the year ended December 31,
2022 as compared to 2021, and increased $19.3 million for the year ended
December 31, 2021 as compared to 2020. The following table provides the
components of the change in fee related earnings for the years ended December
31, 2022 and 2021:

                                                              Year Ended December 31,
                                                                 2022              2021
                                                               (Dollars in millions)
 Fee related earnings, prior year                         $      402.3      

$ 383.0

Increases (decreases):

 Increase in fee revenues                                        253.7      

81.3

 Increase in cash-based compensation                             (52.1)     

(44.3)

Increase in general, administrative and other indirect

 expenses                                                        (62.8)            (14.6)
  All other changes                                               (0.5)             (3.1)
 Total increase                                                  138.3              19.3
 Fee related earnings, current year                       $      540.6      

$ 402.3

  Fee Revenues. Total fee revenues increased $253.7 million for the year ended
December 31, 2022 as compared to 2021 and increased $81.3 million for the year
ended December 31, 2021 as compared to 2020, due to the following:

                                                              Year Ended December 31,
                                                                 2022               2021
                                                               (Dollars in millions)
Higher fund management fees                              $       189.1     

$ 69.8
(Lower) higher portfolio advisory and transaction fees,
net and other

                                                     (4.8)     

11.5

Higher fee related performance revenues                           69.4                 -
Total increase in fee revenues                           $       253.7      

$ 81.3

  The increase in fund management fees for the year ended December 31, 2022 as
compared to 2021 was primarily due to the activation of management fees on CETP
V in the current year and CP VIII and CRP IX in the fourth quarter of the prior
year, as well as management fees from Abingworth which was acquired in August
2022 and $9.1 million of catch-up management fees, primarily related to CP VIII.
These increases were partially offset by the basis step-down in CP VII and CRP
VIII and lower management fees on CP VI, on which management fees are based on
invested capital.

  The increase in fund management fees for the year ended December 31, 2021 as
compared to 2020 was primarily due to activation of management fees on CP VIII,
CRP IX, CAP Growth II and CP Growth during the current year, as well as higher
management fees from CJP IV, CPI, and CRSEF, which included $3.2 million in
catch-up management fees. These increases were partially offset by basis
step-downs in CJP III and CEOF II, as well as lower management fees on CP VI and
CEP IV, on which management fees are based on invested capital and which have
had realizations over the last twelve months. CIEP II also had a decrease in
management fees, driven by catch-up management fees of $6.6 million in 2020.

The increase in fee related performance revenues for the year ended December 31,
2022 as compared to 2021 was driven by CPI, which began to realize recurring fee
related performance revenue during the first quarter of 2022.

  The weighted average management fee rate increased to 1.39% at December 31,
2022 from 1.26% at December 31, 2021, reflecting new funds raised with higher
fee rates. Fee-earning AUM increased $3.5 billion to $107.8 billion as of
December 31, 2022 from $104.3 billion as of December 31, 2021.
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  The weighted average management fee rate slightly increased to 1.26% at
December 31, 2021 from 1.25% at December 31, 2020. Fee-earning AUM increased
$12.7 billion to $104.3 billion as of December 31, 2021 from $91.6 billion as of
December 31, 2020.

  Portfolio advisory and transaction fees decreased for the year ended December
31, 2022 as compared to 2021, and increased for the year ended December 31, 2021
as compared to 2020. The recognition of portfolio advisory and transaction fees
can be volatile as they are primarily generated by investment activity within
our funds, and therefore are impacted by our investment pace.

  Cash-based compensation and benefits expense. Cash-based compensation and
benefits expense increased $52.1 million, or 10%, for the year ended
December 31, 2022 as compared to 2021, primarily due to increased headcount, as
well as an increase in compensation associated with fee related performance
revenues (approximately 45% of fee related performance revenues are paid as
cash-based compensation) of $33.1 million for the year ended December 31, 2022.
Cash-based compensation and benefits expense increased $44.3 million for the
year ended December 31, 2021 as compared to 2020, primarily due to higher
year-end bonuses.

General, administrative and other indirect expenses. General, administrative and
other indirect expenses increased $62.8 million for the year ended December 31,
2022 as compared to 2021, primarily due to increased professional fees, travel
and conference expenses, IT expenses and external costs associated with
fundraising activities. General, administrative and other indirect expenses for
the year ended December 31, 2022 also include $7.5 million in advances to a
portfolio company which have been fully reserved as an expense until recovered.

General, administrative and other indirect expenses decreased $5.7 million,
excluding the impact of litigation cost recoveries in 2020, for the year ended
December 31, 2021 as compared to 2020, primarily due to lower professional fees.

Fee-earning AUM as of and for each of the Three Years in the Period Ended
December 31, 2022

Fee-earning AUM is presented below for each period together with the components
of change during each respective period.

The table below breaks out Fee-earning AUM by its respective components at each
period.

                                                                        As of December 31,
                                                           2022                2021                2020
                                                                       (Dollars in millions)
Global Private Equity
Components of Fee-earning AUM(1)
Fee-earning AUM based on capital commitments           $   55,227          $   50,523          $   55,937
Fee-earning AUM based on invested capital                  42,028              46,701              30,129
Fee-earning AUM based on net asset value                    6,188               4,584               3,208

Fee-earning AUM based on lower of cost or fair value
and other

                                                   4,358               2,444               2,297
Total Fee-earning AUM                                  $  107,801          $  104,252          $   91,571
Weighted Average Management Fee Rates(2)
All Funds                                                    1.39  %             1.26  %             1.25  %
Funds in Investment Period                                   1.41  %             1.34  %             1.37  %



(1)For additional information concerning the components of Fee-earning AUM, see
"-Fee-earning Assets under Management."
(2)Represents the aggregate effective management fee rate of each fund in the
segment, weighted by each fund's Fee-earning AUM, as of the end of each period
presented.
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The table below provides the period to period rollforward of Fee-earning AUM.

                                               Year Ended December 31,
                                          2022           2021           2020
                                                (Dollars in millions)
Global Private Equity
Fee-earning AUM Rollforward
Balance, Beginning of Period           $ 104,252      $  91,571      $ 94,811
Inflows(1)                                12,983         24,588         5,400
Outflows (including realizations)(2)      (8,306)       (10,925)       (9,514)
Market Activity & Other(3)                    61            289          (306)
Foreign Exchange(4)                       (1,189)        (1,271)        1,180
Balance, End of Period                 $ 107,801      $ 104,252      $ 91,571



(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, and the fee-earning commitments invested in
vehicles for which management fees are based on invested capital. Inflows for
the year ended December 31, 2022 include $2 billion of Fee-earning AUM
associated with the Abingworth transaction in August 2022. 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 fees, and gross redemptions in open-ended vehicles
with management fees based on net asset value. 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.
(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.

Fee-earning AUM was $107.8 billion at December 31, 2022, an increase of $3.5
billion, or 3%, compared to $104.3 billion at December 31, 2021. This was driven
by inflows of $13.0 billion primarily related to new fee-paying commitments
raised in CETP V and CP VIII, new capital deployment in CPI, and $2 billion
acquired as part of the Abingworth transaction in August 2022. Partially
offsetting the increase were realizations of $8.3 billion in funds that charge
fees based on invested capital and $1.2 billion in negative foreign exchange
activity primarily from the translation of our EUR-denominated funds' AUM to
USD. Investment and distribution activity by funds still in the investment
period does not impact Fee-earning AUM as these funds are based on commitments.

Fee-earning AUM was $104.3 billion at December 31, 2021, an increase of $12.7
billion, or 14%, compared to $91.6 billion at December 31, 2020. This was driven
by inflows of $24.6 billion primarily related to the activation of management
fees in CP VIII, CRP IX, and CP Growth, as well as capital invested in CPI.
Partially offsetting the increase were outflows of $10.9 billion from the
step-down of management fees in CP VII and CRP VIII and distributions in other
funds outside of their investment period. Negative foreign exchange activity of
$1.3 billion resulted from the translation of our Europe buyout, growth, and
real estate AUM from EUR to USD.

Fee-earning AUM was $91.6 billion at December 31, 2020, a decrease of $3.2
billion, or 3%, compared to $94.8 billion at December 31, 2019. This was driven
by outflows of $9.5 billion which were principally a result of dispositions in
our U.S. Buyout, NGP Energy, and Legacy Energy funds, as well as distributions
in other funds outside of their investment period. This was offset by inflows of
$5.4 billion primarily related to the activation of management fees in CJP IV,
subscriptions in CPI, and new fee-paying commitments raised in various other
funds. Also offsetting the decrease was positive foreign exchange activity of
$1.2 billion from the translation of our Europe Buyout, Growth, and Real Estate
AUM from EUR to USD.
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Total AUM as of and for each of the Three Years in the Period Ended December 31,
2022

The table below provides the period to period rollforward of Total AUM.

                                                        Year Ended December 31,
                                                  2022           2021           2020
                                                         (Dollars in millions)

Global Private Equity

Total AUM Rollforward

        Balance, Beginning of Period           $ 162,117      $ 131,780     

$ 129,784

        Inflows(1)                                12,391         27,199     

3,550

Outflows (including realizations)(2) (22,086) (27,819)

(9,589)

        Market Activity & Other(3)                12,554         32,730     

6,412

        Foreign Exchange(4)                       (1,878)        (1,773)    

1,623

        Balance, End of Period                 $ 163,098      $ 162,117     

$ 131,780

(1)Inflows 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. Inflows for the year
ended December 31, 2022 include $2 billion of AUM associated with the August
2022 Abingworth transaction.
(2)Outflows includes distributions net of recallable or recyclable amounts in
our carry funds, related co-investment vehicles, and separately managed
accounts, gross redemptions in our open-end funds, and the expiration of
available capital.
(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.
(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.

Total AUM was $163.1 billion at December 31, 2022, an increase of $1.0 billion,
or 1%, compared to $162.1 billion at December 31, 2021. Driving the increase
were $12.6 billion of portfolio appreciation and $12.4 billion of inflows,
largely attributable to additional capital raised in CETP V and CP VIII, as well
as $2 billion of AUM acquired as part of the Abingworth transaction in August
2022. Overall portfolio appreciation was driven by appreciation of $2.9 billion
in NGP XI, $1.8 billion in NGP XII, and $1.1 billion in CRP VIII, partially
offset by depreciation of $2.4 billion in CP VI. The increase was largely offset
by outflows of $22.1 billion primarily from distributions of investment proceeds
in our U.S. Buyout, NGP Energy, Europe Buyout, Asia Buyout, and U.S. Real Estate
funds, as well as $1.9 billion of negative foreign exchange activity primarily
from the translation of our EUR-denominated funds' AUM to USD.

Total AUM was $162.1 billion at December 31, 2021, an increase of $30.3 billion,
or 23%, compared to $131.8 billion at December 31, 2020. This increase was
driven by $27.2 billion of inflows primarily due to fundraising in CP VIII, CRP
IX, CPI, and CP Growth, as well as portfolio appreciation of $32.7 billion. The
carry funds driving appreciation for the period included $7.3 billion
attributable to CP VI, $3.7 billion attributable to CP VII, $1.9 billion
attributable to CEP IV, and $1.7 billion attributable to CRP VIII. The increase
was partially offset by $27.8 billion of outflows primarily from distributions
and the expiration of dry powder in our U.S. Buyout, U.S. Real Estate, and
Europe Buyout funds, and $(1.8) billion in foreign exchange activity primarily
from the translation of our Europe Buyout, Growth, and Real Estate AUM from EUR
to USD.

Total AUM was $131.8 billion at December 31, 2020, an increase of $2.0 billion,
or 2%, compared to $129.8 billion at December 31, 2019. This increase was driven
by $3.6 billion of inflows primarily due to fundraising in CPI, CIEP II, and CJP
IV. Also contributing to this increase was portfolio appreciation of $6.4
billion. The carry funds driving appreciation for the period included $6.1
billion attributable to CP VI, $1.3 billion attributable to CAP IV, and $0.8
billion attributable to CP VII, offset by $(1.0) billion attributable to NGP XI
and $(0.5) billion attributable to CIEP I. The increase of $1.6 billion in
foreign exchange activity was primarily from the translation of our Europe
Buyout, Growth, and Real Estate AUM from EUR to USD. Partially offsetting the
increase were $9.6 billion of outflows driven primarily by distributions in our
U.S. Buyout, Asia Buyout and U.S. Real Estate funds.

Fund Performance Metrics

Fund performance information for our investment funds that generally have at
least $1.0 billion in capital commitments, cumulative equity invested or total
value as of December 31, 2022, which we refer to as our "significant funds,"
                                      135
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is included throughout this discussion and analysis to facilitate an
understanding of our results of operations for the periods presented. The fund
return information reflected in this discussion and analysis is not indicative
of the performance of The Carlyle Group Inc. and is also not necessarily
indicative of the future performance of any particular fund. An investment in
The Carlyle Group Inc. is not an investment in any of our funds. There can be no
assurance that any of our funds or our other existing and future funds will
achieve similar returns. See Part I. Item 1A. "Risk Factors-Risks Related to Our
Business Operations-Risks Related to the Assets We Manage-The historical returns
attributable to our funds, including those presented in this report, should not
be considered as indicative of the future results of our funds or of our future
results or of any returns expected on an investment in our common stock."

The following tables reflect the performance of our significant funds in our
Global Private Equity business. See Part I. Item 1. "Business-Our Global
Investment Offerings" for a legend of the fund acronyms listed below.

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                                                                                                                                                    TOTAL INVESTMENTS                                                       

REALIZED/PARTIALLY REALIZED INVESTMENTS (5)

                                                                                                                                                 As of December 31, 2022                                                              As of December 31, 2022
                                                                     Cumulative                                                                                                                                                 Total
 Fund (Fee Initiation Date/Stepdown Date)            Committed        Invested                             Realized   Remaining Fair                                                           Net Accrued                       Fair                             Gross
                   (19)                             Capital (20)     Capital (1)     Percent Invested     Value (2)     Value (3)      MOIC (4)     Gross IRR (6)(12)    Net IRR (7)(12)   Carry/(Giveback) (8)               Value (9)           MOIC (4)     IRR (6)(12)
Corporate Private Equity
CP VIII (Oct 2021 / Oct 2027)                     $      14,197    $      6,884             48%          $       1    $     7,256        1.1x               NM                 NM         $                 -                               n/a      n/a           n/a
CP VII (May 2018 / Oct 2021)                      $      18,510    $     17,507             95%          $   1,444    $    21,834        1.3x              14%                 8%         $               381          $               1,563        1.2x           12%
CP VI (May 2013 / May 2018)                       $      13,000    $     13,140            101%          $  23,164    $     7,384        2.3x              20%                 15%        $               498          $              26,926        2.6x           23%
CP V (Jun 2007 / May 2013)                        $      13,720    $     13,238             96%          $  27,893    $     1,027        2.2x              18%                 14%        $                97          $              28,002        2.3x           20%
CEP V (Oct 2018 / Sep 2024)                       €       6,416    €      4,987             78%          €   1,323    €     5,521        1.4x              24%                 13%        $               142                               n/a      n/a           n/a
CEP IV (Sep 2014 / Oct 2018)                      €       3,670    €      3,797            103%          €   5,447    €     1,965        2.0x              18%                 12%        $               178          €               5,680        2.3x           23%
CEP III (Jul 2007 / Dec 2012)                     €       5,295    €      5,177             98%          €  11,715    €        72        2.3x              19%                 14%        $                 8          €              11,647        2.3x           19%
CAP V (Jun 2018 / Jun 2024)                       $       6,554    $      5,654             86%          $   1,423    $     5,991        1.3x              25%                 12%        $               113          $                 904        1.8x           143%
CAP IV (Jul 2013 / Jun 2018)                      $       3,880    $      4,044            104%          $   6,161    $     2,047        2.0x              18%                 13%        $               214          $               6,953        2.7x           26%
CAP III (Jun 2008 / Jul 2013)                     $       2,552    $      2,543            100%          $   5,123    $        16        2.0x              17%                 12%        $                 2          $               5,138        2.0x           17%
CJP IV (Oct 2020 / Oct 2026)                      ¥     258,000    ¥    165,478             64%          ¥       -    ¥   214,638        1.3x              68%                 30%        $                24                               n/a      n/a           n/a
CJP III (Sep 2013 / Aug 2020)                     ¥     119,505    ¥     91,192             76%          ¥ 189,426    ¥    49,548        2.6x              24%                 17%        $                29          ¥             182,269        3.9x           33%
CGFSP III (Dec 2017 / Dec 2023)                   $       1,005    $        926             92%          $     375    $     1,715        2.3x              40%                 30%        $               105          $                 815        6.5x           58%
CGFSP II (Jun 2013 / Dec 2017)                    $       1,000    $        943             94%          $   1,959    $       500        2.6x              27%                 20%        $                41          $               1,956        2.4x           28%
CP Growth (Oct 2021 / Oct 2027)                   $       1,149    $        333             29%          $       -    $       348        1.0x               NM                 NM         $                 -                               n/a      n/a           n/a
CEOF II (Nov 2015 / Mar 2020)                     $       2,400    $      2,361             98%          $   2,271    $     2,284        1.9x              20%                 15%        $               153          $               2,401        3.8x           54%
CEOF I (Sep 2011 / Nov 2015)                      $       1,119    $      1,175            105%          $   1,656    $       187        1.6x              12%                 8%         $                43          $               1,604        1.6x           15%
CETP V (Mar 2022 / Jun 2028)                      €       3,114    €        211             7%           €       -    €       208        1.0x              n/a                 n/a        $                 -                               n/a      n/a           n/a
CETP IV (Jul 2019 / Jun 2022)                     €       1,350    €      1,173             87%          €     788    €     1,804        2.2x              56%                 41%        $                96          €                 788        9.3x           122%
CETP III (Jul 2014 / Jul 2019)                    €         657    €        602             92%          €   1,239    €       586        3.0x              42%                 29%        $                44          €               1,181        4.4x           51%
CGP II (Dec 2020 / Jan 2025)                      $       1,840    $        984             53%          $       5    $     1,046        1.1x               NM                 NM         $                 -                               n/a      n/a           n/a
CGP (Jan 2015 / Mar 2021)                         $       3,588    $      3,050             85%          $   1,383    $     2,951        1.4x        

      7%                 5%         $                66          $               1,675        2.1x           17%
CAGP IV (Aug 2008 / Dec 2014)                     $       1,041    $        954             92%          $   1,123    $        90        1.3x               6%                 1%         $                 -          $               1,122        1.3x            7%
CSABF (Dec 2009 / Dec 2016)                       $         776    $        736             95%          $     490    $       378        1.2x               3%                 Neg        $                 -          $                 650        1.3x            8%
All Other Active Funds & Vehicles (10)                             $     22,593             n/a          $  22,850    $    14,847        1.7x              22%                 15%        $                77          $              23,237        2.2x           33%
Fully Realized Funds & Vehicles (11)                               $     24,210             n/a          $  60,525    $         -        2.5x              28%                 20%        $                 3          $              60,525        2.5x           28%
TOTAL CORPORATE PRIVATE EQUITY (13)                                                         n/a          $ 181,259    $    82,792        1.9x              26%                 18%        $             2,314          $             185,528        2.4x           27%
Real Estate
CRP IX ( Oct 2021 / Oct 2026 )                    $       7,987    $      1,688             21%          $       -    $     1,706        1.0x               NM                 NM         $                 -                               n/a      n/a           n/a
CRP VIII (Aug 2017 / Oct 2021)                    $       5,505    $      4,999             91%          $   3,944    $     4,610        1.7x              48%                 30%        $               182          $               4,032        2.1x           55%
CRP VII (Jun 2014 / Dec 2017)                     $       4,162    $      3,806             91%          $   4,900    $     1,539        1.7x              18%                 12%        $                71          $               4,873        1.8x           22%
CRP VI (Mar 2011 / Jun 2014)                      $       2,340    $      2,160             92%          $   3,785    $       142        1.8x              27%                 18%        $                 5          $               3,708        1.9x           29%
CPI (May 2016 / n/a)                              $       7,991    $      6,748             21%          $   1,981    $     7,334        1.4x              20%                 17%                          n/a*       $               1,186        1.8x            9%
All Other Active Funds & Vehicle (14)                              $      8,717             n/a          $  10,910    $     2,831        1.6x              10%                 7%         $                18          $              10,559        1.6x           11%
Fully Realized Funds & Vehicles (15)                               $      6,886             n/a          $   9,718    $         5        1.4x              11%                 6%         $                 -          $               9,723        1.4x           11%
TOTAL REAL ESTATE (13)                                                                      n/a          $  35,238    $    18,168        1.5x              13%                 9%         $               276          $              34,080        1.7x           13%
Natural Resources
CIEP II (Apr 2019 / Apr 2025)                     $       2,286    $      1,008             44%          $     544    $       997        1.5x              41%                 19%        $                32          $                 596        2.5x            NM
CIEP I (Sep 2013 / Jun 2019)                      $       2,500    $      2,374             95%          $   1,764    $     2,785        1.9x              19%                 11%        $               174          $               2,780        2.7x           26%
CPP II (Sep 2014 / Apr 2021)                      $       1,527    $      1,537            101%          $     809    $     1,942        1.8x              17%                 11%        $               101          $                 365        4.1x           76%
CGIOF (Dec 2018 / Sep 2023)                       $       2,201    $      1,723             78%          $     291    $     1,985        1.3x              24%                 10%        $                36          $                 248        1.4x           15%
NGP XII (Jul 2017 / Jul 2022)                     $       4,304    $      2,775             64%          $   1,365    $     3,952        1.9x              22%                 16%        $               191          $               1,201        3.2x           39%
NGP XI (Oct 2014 / Jul 2017)                      $       5,325    $      4,979             93%          $   4,102    $     5,331        1.9x              15%                 11%        $               340          $               5,923        2.2x           30%
NGP X (Jan 2012 / Dec 2014)                       $       3,586    $      3,351             93%          $   3,298    $       428        1.1x               3%                 Neg        $                 -          $               3,142        1.2x            5%
All Other Active Funds & Vehicles (17)                             $      4,561             n/a          $   2,458    $     4,300        1.5x              15%                 13%        $                26          $               3,057        2.4x           27%
Fully Realized Funds & Vehicles (18)                               $      1,190             n/a          $   1,435    $         1        1.2x               3%                 1%         $                 -          $               1,436        1.2x            3%
TOTAL NATURAL RESOURCES                                                                     n/a          $  16,066    $    21,719        1.6x              13%                 9%         $               899          $              18,747        1.9x           15%

Legacy Energy Funds (16)                                           $     16,741             n/a          $  23,983    $        72        1.4x              12%                 6%         $                 -          $              23,589        1.5x           14%


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*Net accrued fee related performance revenues for CPI of $53 million are
excluded from net accrued performance revenues. These amounts will be reflected
as fee related performance revenues when realized, and included in fund level
fee revenues in our segment results.

  (1) Represents the original cost of investments since inception of the fund.
(2)  Represents all realized proceeds since inception of the fund.
(3)  Represents remaining fair value, before management fees, expenses and
carried interest, and may include remaining escrow values for realized
investments.
(4)  Multiple of invested capital ("MOIC") represents total fair value, before
management fees, expenses and carried interest, divided by cumulative invested
capital.
(5)  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.
(6)  Gross Internal Rate of Return ("Gross IRR") represents an annualized
time-weighted return on Limited Partner invested capital, based on
contributions, distributions and unrealized fair value as of the reporting date,
before the impact of management fees, partnership expenses and carried interest.
For fund vintages 2017 and after, Gross IRR includes the impact of interest
expense related to the funding of investments on fund lines of credit. Gross IRR
is calculated based on the timing of Limited Partner cash flows, which may
differ to varying degrees from the timing of actual investment cash flows for
the fund. Subtotal Gross IRR aggregations for multiple funds are calculated
based on actual cash flow dates for each fund and represent a theoretical
time-weighted return for a Limited Partner who invested sequentially in each
fund.
(7)  Net Internal Rate of Return ("Net IRR") represents an annualized
time-weighted return on Limited Partner invested capital, based on
contributions, distributions and unrealized fair value as of the reporting date,
after the impact of all management fees, partnership expenses and carried
interest, including current accruals. Net IRR is calculated based on the timing
of Limited Partner cash flows, which may differ to varying degrees from the
timing of actual investment cash flows for the fund. 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. Subtotal Net IRR aggregations for multiple funds
are calculated based on actual cash flow dates for each fund and represent a
theoretical time-weighted return for a Limited Partner who invested sequentially
in each fund.
(8)  Represents the net accrued performance fee balance/(giveback obligation) as
of the current quarter end.
(9)  Represents all realized proceeds combined with remaining fair value, before
management fees, expenses and carried interest.
(10)  Aggregate includes the following funds, as well as all active
co-investments, separately managed accounts (SMAs), and stand-alone investments
arranged by us: CVP II, MENA, CCI, CSSAF I, CPF I, CAP Growth I, CAP Growth II,
CBPF II, CEP II, ABV 8 and ACCD 2.
(11)  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,
CJP II, CMG, CVP I, CUSGF III, CGFSP I, CEVP I, CETP I, CETP II, CAVP I, CAVP
II, CAGP III and Mexico.
(12)  For funds marked "NM," IRR may be positive or negative, but is not
considered meaningful because of the limited time since initial investment and
early stage of capital deployment. For funds marked "Neg," IRR is considered
meaningful but is negative as of reporting period end.
(13)  For purposes of aggregation, funds that report in foreign currency have
been converted to U.S. dollars at the reporting period spot rate.
(14)  Aggregate includes the following funds, as well as all active
co-investments, separately managed accounts (SMAs), and stand-alone investments
arranged by us: CCR, CER I, CER II, CEREP III and CRP V.
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(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: CRP I, CRP II, CRP III, CRP IV, CRCP I, CAREP I, CAREP II, CEREP
I, and CEREP II.
(16)  Aggregate includes the following Legacy Energy funds and related
co-investments: Energy I, Energy II, Energy III, Energy IV, Renew I, and Renew
II.
(17)  Aggregate includes the following funds, as well as all active
co-investments, separately managed accounts (SMAs), and stand-alone investments
arranged by us: NGP GAP, NGP RP I, NGP RP II, NGP ETP IV, CPOCP, CRSEF and CRSEF
II.
(18)  Aggregate includes the following funds, as well as related co-investments,
separately managed accounts (SMAs), and certain other stand-alone investments
arranged by us: CIP.
(19)  The fund stepdown date represents the contractual stepdown date under the
respective fund agreements for funds on which the fee basis stepdown has not yet
occurred. Funds without a listed Fee Initiation Date and Stepdown Date have not
yet initiated fees.
(20)  All amounts shown represent total capital commitments as of December 31,
2022. Certain of our recent vintage funds are currently in fundraising and total
capital commitments are subject to change.



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Global Credit

The following table presents our results of operations for our Global Credit
segment:

                                                                Year Ended December 31,
                                                            2022          2021         2020
                                                                 (Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees                                     $   473.1      $ 314.4      $ 288.3
Portfolio advisory and transaction fees, net and other        81.6         62.2         34.0
Fee related performance revenues                              59.9         43.2         35.9
Total fund level fee revenues                                614.6        419.8        358.2
Realized performance revenues                                131.5         (6.0)        26.5
Realized principal investment income                          38.1         31.9         18.7
Interest income                                               15.3          5.6         10.4
Total revenues                                               799.5        451.3        413.8
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits                         284.2        237.1        206.1
Realized performance revenues related compensation            61.3         (2.7)        12.2
Total compensation and benefits                              345.5        234.4        218.3
General, administrative, and other indirect expenses          97.7         63.1         45.7
Depreciation and amortization expense                          8.2          8.0          7.0
Interest expense                                              32.6         26.1         26.6
Total expenses                                               484.0        331.6        297.6
(=) Distributable Earnings                               $   315.5      $ 119.7      $ 116.2
(-) Realized Net Performance Revenues                         70.2         (3.3)        14.3
(-) Realized Principal Investment Income                      38.1         31.9         18.7
(+) Net Interest                                              17.3         20.5         16.2
(=) Fee Related Earnings                                 $   224.5      $ 111.6      $  99.4



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Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 and Year
Ended December 31, 2021 Compared to Year Ended December 31, 2020

Distributable Earnings

Distributable earnings increased $195.8 million for the year ended December 31,
2022 as compared to 2021, and increased $3.5 million for the year ended
December 31, 2021 as compared to 2020. The following table provides the
components of the changes in distributable earnings for the years ended December
31, 2022 and 2021:

                                                              Year Ended December 31,
                                                                 2022              2021
                                                               (Dollars in millions)
Distributable earnings, prior year                       $      119.7            $ 116.2
Increases (decreases):
Increase in fee related earnings                                112.9       

12.2

Increase (decrease) in realized net performance revenues 73.5

(17.6)

Increase in realized principal investment income                  6.2       

13.2

Decrease (increase) in net interest                               3.2       

(4.3)

Total increase                                                  195.8       

3.5

Distributable earnings, current year                     $      315.5       

$ 119.7

Realized Net Performance Revenues. Realized net performance revenues increased
$73.5 million for the year ended December 31, 2022 as compared to 2021,
primarily due to realized net performance revenues generated by CCOF I and our
structured credit fund, partially offset by the realization of a $5.9 million
net giveback obligation for CSP III in 2022.

Realized net performance revenues decreased $17.6 million for the year ended
December 31, 2021 as compared to 2020 primarily due to realization of a $6.5
million net giveback obligation for CSP III in 2021 and realized net performance
revenues generated from Carlyle Aviation Partners for the year ended December
31, 2020.

Realized Principal Investment Income. Realized principal investment income
increased $6.2 million for the year ended December 31, 2022 as compared to 2021
and increased $13.2 million for the year ended December 31, 2021 as compared to
2020. The increase in realized principal investment income for the year ended
December 31, 2022 as compared to 2021 was primarily driven by realized principal
investment income from CCOF I and CCOF II in 2022, as well as the impact of
realized losses on investments in CEMOF in the prior year. These impacts were
partially offset by lower realized principal investment income from our U.S.
CLOs and CSP IV in 2022. The increase in realized principal investment income
for the year ended December 31, 2021 as compared to 2020 was primarily due to
higher realized principal investment income from our U.S. CLOs and distressed
credit carry funds.

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Fee Related Earnings

  Fee related earnings increased $112.9 million for the year ended December 31,
2022 as compared to 2021, and increased $12.2 million for the year ended
December 31, 2021 as compared to 2020. The following table provides the
components of the change in fee related earnings for the years ended December
31, 2022 and 2021:

                                                              Year Ended December 31,
                                                                 2022              2021
                                                               (Dollars in millions)
 Fee related earnings, prior year                         $      111.6      

$ 99.4

Increases (Decreases):

 Increase in fee revenues                                        194.8      

61.6

 Increase in cash-based compensation                             (47.1)     

(31.0)

Increase in general, administrative and other indirect

 expenses                                                        (34.6)            (17.4)
  All other changes                                               (0.2)             (1.0)
 Total increase                                                  112.9              12.2
 Fee related earnings, current year                       $      224.5      

$ 111.6

Fee Revenues. Total fee revenues increased $194.8 million for the year ended
December 31, 2022 as compared to 2021 and increased $61.6 million for the year
ended December 31, 2021 as compared to 2020, due to the following:

                                                              Year Ended December 31,
                                                                 2022               2021
                                                               (Dollars in millions)
Higher fund management fees                              $       158.7     

$ 26.1
Higher portfolio advisory and transaction fees, net and
other

                                                             19.4      

28.2

Higher fee related performance revenues                           16.7      

7.3

Total increase in fee revenues                           $       194.8      

$ 61.6

The increase in fund management fees for the year ended December 31, 2022 as
compared to 2021 was primarily driven by $107.0 million in fees earned under the
Fortitude strategic advisory services agreement and on the CBAM portfolio, as
well as investment activity at CCOF II, which charges fees based on invested
capital, the issuance of U.S. CLOs over the last twelve months, and growth in
our Interval Fund.

The increase in fund management fees for the year ended December 31, 2021 as
compared to 2020 was primarily driven by increased management fees from CCOF I,
which earns fees based on AUM, CCOF II, which activated management fees in
October 2020, record CLO origination activity, and the activation of fees on
newly-raised SMAs. These increases were partially offset by lower management
fees from CSP IV due to the step-down of the fee rate and basis in January 2021.

The increases in fee related performance revenues for the years ended
December 31, 2022 and 2021 relative to the prior periods were driven by higher
fee related performance revenues from our Interval Fund.

The weighted average management fee rate on our carry funds decreased from 1.21%
at December 31, 2021 to 1.05% at December 31, 2022. The rate decrease was
primarily due to investment activity in funds on which management fees are based
on invested capital and have a lower fee rate, including separately managed
accounts. The weighted average management fee rate on our carry funds slightly
decreased from 1.22% at December 31, 2020 to 1.21% at December 31, 2021.

  Portfolio advisory and transaction fees, net, and other fees for the year
ended December 31, 2022 were primarily driven by transaction fees in our
insurance and aviation strategies, as well as underwriting fees related to
Carlyle Global Capital Markets. Portfolio advisory and transaction fees, net,
and other fees for the year ended December 31, 2021 was primarily from increased
underwriting fees related to Carlyle Global Capital Markets. As capital markets
activity slows, we may experience a corresponding reduction in the capital
markets fees we earn in connection with activities related to the underwriting,
issuance and placement of debt and equity securities.

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  Cash-based compensation and benefits expense. Cash-based compensation and
benefits expense increased $47.1 million for the year ended December 31, 2022 as
compared to 2021, primarily due to increased headcount, as well as an increase
in compensation associated with fee related performance revenues (approximately
45% of fee related performance revenues are paid as cash-based compensation) of
$7.5 million for the year ended December 31, 2022.

Cash-based compensation and benefits expense increased $31.0 million for the
years ended December 31, 2021 and 2020, primarily due to increased headcount and
higher cash bonuses.

General, administrative and other indirect expenses. General, administrative and
other indirect expenses increased $34.6 million for the year ended December 31,
2022 as compared to 2021, primarily due to increases in professional fees,
travel and other general expenses.

General, administrative and other indirect expenses increased $11.1 million for
the year ended December 31, 2021 as compared to 2020, excluding the impact of
litigation cost recoveries in 2020, primarily due to increases in professional
fees, rent and other general expenses. General, administrative and other
indirect expenses for the year ended December 31, 2020 also reflects expense
recoveries from Carlyle FRL.

Fee-earning AUM as of and for each of the Three Years in the Period Ended
December 31, 2022

Fee-earning AUM is presented below for each period together with the components
of change during each respective period.

The table below breaks out Fee-earning AUM by its respective components at each
period.

                                                                        As of December 31,
                                                           2022                2021                2020
                                                                       (Dollars in millions)
Global Credit
Components of Fee-earning AUM(1)
Fee-earning AUM based on capital commitments           $    6,240          $    2,758          $    3,921
Fee-earning AUM based on invested capital                  13,446               9,632               5,607

Fee-earning AUM based on collateral balances, at par 46,173

    30,779              26,480
Fee-earning AUM based on net asset value                    2,008               1,409               1,578
Fee-earning AUM based on fair value and other(2)           53,362               7,140               4,547
Total Fee-earning AUM                                  $  121,229          $   51,718          $   42,133
Weighted Average Management Fee Rates(3)
Global Credit Carry Funds                                    1.05  %             1.21  %             1.22  %


(1)For additional information concerning the components of Fee-earning AUM, see
"-Fee-earning Assets under Management."
(2)Includes the fair value of Fortitude's general account assets covered by the
strategic advisory services agreement and funds with fees based on gross asset
value.
(3)Represents the aggregate effective management fee rate for carry funds only,
weighted by each carry fund's Fee-earning AUM, as of the end of each period
presented. As of December 31, 2022, carry funds represented 13% of Global Credit
Fee-earning AUM, respectively.
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The table below provides the period to period rollforward of Fee-earning AUM.

                                               Year Ended Ended December 31,
                                              2022              2021          2020
                                                   (Dollars in millions)
Global Credit
Fee-earning AUM Rollforward
Balance, Beginning of Period           $     51,718          $ 42,133      $ 37,862
Inflows(1)                                   78,057            13,029         6,368
Outflows (including realizations)(2)         (6,845)           (4,314)       (3,906)
Market Activity & Other(3)                   (1,103)            1,501           618
Foreign Exchange(4)                            (598)             (631)        1,191
Balance, End of Period                 $    121,229          $ 51,718      $ 42,133


(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 our
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. Inflows for the year
ended December 31, 2022 include Fee-earning AUM associated with the strategic
advisory services agreement with Fortitude which was effective April 1, 2022, as
well as Fee-earning AUM acquired in the CBAM transaction in March 2022. Inflows
associated with these transactions were $48 billion and $14 billion,
respectively.
(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 fees, gross redemptions in our open-ended funds, and
run-off 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 funds or vehicles based on the lower of cost or fair
value or 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.

Fee-earning AUM was $121.2 billion at December 31, 2022, an increase of $69.5
billion, or 134%, compared to $51.7 billion at December 31, 2021. Driving the
increase were inflows of $78.1 billion primarily from Fee-earning AUM related to
the strategic advisory services agreement signed with Fortitude in April 2022
and Fee-earning AUM acquired in the CBAM transaction in March 2022, as well as
investment activity in CCOF II, the activation of fees and investment activity
in Aviation, and the closing of our six latest vintage U.S. CLOs and three
latest vintage Europe CLOs. This increase was minimally offset by outflows of
$6.8 billion primarily due to reductions for funds that are no longer calling
for management fees, realizations in other funds with fees tied to invested
capital, and run-off of our CLO collateral balances, as well as $1.1 billion of
portfolio depreciation. Distributions from carry funds still in the investment
period do not impact Fee-earning AUM as these funds are based on commitments and
not invested capital.

Fee-earning AUM was $51.7 billion at December 31, 2021, an increase of $9.6
billion, or 23%, compared to $42.1 billion at December 31, 2020. Driving the
increase were inflows of $13.0 billion primarily attributable to new fee-paying
capital raised in our U.S. and Europe CLOs and investment activity in our
opportunistic credit funds, as well as $1.5 billion of market and other
activity. Partially offsetting the increase were $4.3 billion of outflows
primarily related to run-off of our CLO collateral balances and dispositions
from funds which charge fees on invested capital.

Fee-earning AUM was $42.1 billion at December 31, 2020, an increase of $4.2
billion, or 11%, compared to $37.9 billion at December 31, 2019. Driving the
increase were inflows of $6.4 billion primarily attributable to new fee-paying
capital raised in our U.S. and Europe CLOs, fee-paying third-party capital
raised in our insurance business, and investment activity in CCOF I, as well as
$1.2 billion in foreign exchange activity related to the translation of our
EUR-denominated CLOs to USD. Partially offsetting the increase were $3.9 billion
of outflows primarily related to a fee basis step-down in CEMOF II and run-off
of our CLO collateral balances.

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Total AUM as of and for each of the Three Years in the Period Ended December 31,
2022

The table below provides the period to period rollforward of Total AUM.

                                               Year Ended December 31,
                                          2022           2021          2020
                                                (Dollars in millions)
Global Credit
Total AUM Rollforward
Balance, Beginning of Period           $  73,384      $ 55,881      $ 49,412
Inflows(1)                                78,277        16,933         9,497
Outflows (including realizations)(2)      (5,741)       (4,171)       (4,167)
Market Activity & Other(3)                   991         5,403           402
Foreign Exchange(4)                         (609)         (662)          737
Balance, End of Period                 $ 146,302      $ 73,384      $ 55,881



(1)Inflows 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. Inflows for the year
ended December 31, 2022 include AUM associated with the strategic advisory
services agreement with Fortitude which was effective April 1, 2022, as well as
AUM acquired in the CBAM transaction in March 2022. Inflows associated with
these transactions were $48 billion and $15 billion, respectively.
(2)Outflows includes distributions net of recallable or recyclable amounts in
our carry funds, related co-investment vehicles, and separately managed
accounts, gross redemptions in our open-end funds, run-off 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, related co-investment
vehicles, and separately managed accounts, as well as the 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.

Total AUM was $146.3 billion at December 31, 2022, an increase of $72.9 billion,
or 99%, compared to $73.4 billion at December 31, 2021. The increase was driven
by $78.3 billion of inflows primarily from AUM related to the strategic advisory
services agreement signed with Fortitude in April 2022, third party capital
capital raised from a strategic third-party investor which directly invests in
Fortitude, AUM acquired in the CBAM transaction in March 2022, the closing of
our six latest vintage U.S. CLOs and three latest vintage Europe CLOs, and the
first closing in CCOF III. The increase was minimally offset by outflows of $5.7
billion due to run-off of CLO and other collateral balances and distributions in
our carry funds, namely in our Energy Credit and Opportunistic Credit funds.

Total AUM was $73.4 billion at December 31, 2021, an increase of $17.5 billion,
or 31%, compared to $55.9 billion at December 31, 2020. This was driven by $16.9
billion of inflows primarily due to new U.S. and Europe CLO issuances, as well
as fundraising in CCOF II and various platform accounts. Also driving the
increase was $5.4 billion of market and other activity attributable to 22%
appreciation in our carry funds and increases in the gross asset value of our
BDCs and securitization vehicles. Partially offsetting the increase were
outflows of $4.2 billion primarily related to run-off of our CLO collateral
balances and distributions in our Distressed Credit and Energy Credit funds.

Total AUM was $55.9 billion at December 31, 2020, an increase of $6.5 billion,
or 13%, compared to $49.4 billion at December 31, 2019. This was driven by $9.5
billion of inflows primarily due to new U.S. and Europe CLO issuances,
fundraising in CCOF II, and closings in various platform accounts. Also driving
the increase was $0.7 billion in foreign exchange activity related to the
translation of our EUR-denominated CLOs to USD. Partially offsetting the
increase were outflows of $4.2 billion primarily related to distributions in our
Energy Credit and Aviation funds, as well as CLO run-off.
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Fund Performance Metrics

Fund performance information for certain of our Global Credit Funds is included
throughout this discussion and analysis to facilitate an understanding of our
results of operations for the periods presented. The fund return information
reflected in this discussion and analysis is not indicative of the performance
of The Carlyle Group Inc. and is also not necessarily indicative of the future
performance of any particular fund. An investment in The Carlyle Group Inc. is
not an investment in any of our funds. There can be no assurance that any of our
funds or our other existing and future funds will achieve similar returns. See
Part I. Item 1A. "Risk Factors-Risks Related to Our Business Operations-Risks
Related to the Assets We Manage-The historical returns attributable to our
funds, including those presented in this report, should not be considered as
indicative of the future results of our funds or of our future results or of any
returns expected on an investment in our common stock."
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The following table reflects the performance of certain funds in our Global
Credit business. These tables separately present funds that, as of the periods
presented, had at least $1.0 billion in capital commitments, cumulative equity
invested or total equity value. See Part I. Item 1. "Business-Our Global
Investment Offerings" for a legend of the fund acronyms listed below.

                                                                                                                                            TOTAL INVESTMENTS
(Dollars in millions)                                                                                                                    As of December 31, 2022
                                                             Cumulative                                          Remaining
Fund (Fee Initiation Date/Stepdown           Committed    Invested Capital                         Realized     Fair Value                                                             Net Accrued
            Date) (11)                     Capital (12)         (1)         

Percent Invested Value (2) (3) MOIC (4) Gross IRR (5)(8) Net IRR (6)(8) Carry/(Giveback) (7)

CSP IV (Apr 2016 / Dec 2020)              $      2,500    $       2,500            100%          $      843    $    2,351        1.3x             14%                 7%         $                  -
CSP III (Dec 2011 / Aug 2015)             $        703    $         703            100%          $      929    $       57        1.4x             19%                 9%         $                  -
CSP II (Dec 2007 / Jun 2011)              $      1,352    $       1,352            100%          $    2,431    $       66        1.8x             17%                 11%        $                  7
CCOF II (Nov 2020 / Oct 2025)             $      4,425    $       4,408            100%          $      384    $    4,477        1.1x             15%                 10         $                 33
CCOF I (Nov 2017 / Sep 2022)              $      2,373    $       3,452            145%          $    2,427    $    2,120        1.3x             19%                 13%        $                 44
CEMOF II (Dec 2015 / Jun 2019)            $      1,692    $       1,713            101%          $    1,789    $      376        1.3x              8%                 3%         $                  -
SASOF III (Nov 2014 / n/a)                $        833    $         991            119%          $    1,192    $      101        1.3x             19%                 11%        $                 12
All Other Active Funds & Vehicles                         $       7,976             n/a          $    1,536    $    6,101        1.0x              NM                 NM         $                  7

(9)

Fully Realized Funds & Vehicles                           $       5,230             n/a          $    5,642    $        1        1.1x              3%                 Neg        $                  -

(10)

TOTAL GLOBAL CREDIT CARRY FUNDS                           $      28,325             n/a          $   17,172    $   15,649        1.2x             10%                 4%         $                102


(1)  Represents the original cost of investments since the inception of the
fund. For CSP II and CSP III, reflects amounts net of investment level
recallable proceeds which is adjusted to reflect recyclability of invested
capital for the purpose of calculating the fund MOIC.
(2)  Represents all realized proceeds since inception of the fund.
(3)  Represents remaining fair value, before management fees, expenses and
carried interest, and may include remaining escrow values for realized
investments.
(4)  Multiple of invested capital ("MOIC") represents total fair value, before
management fees, expenses and carried interest, divided by cumulative invested
capital.
(5)  Gross Internal Rate of Return ("Gross IRR") represents an annualized
time-weighted return on Limited Partner invested capital, based on
contributions, distributions and unrealized fair value as of the reporting date,
before the impact of management fees, partnership expenses and carried interest.
For fund vintages 2017 and after, Gross IRR includes the impact of interest
expense related to the funding of investments on fund lines of credit. Gross IRR
is calculated based on the timing of Limited Partner cash flows, which may
differ to varying degrees from the timing of actual investment cash flows for
the fund. Subtotal Gross IRR aggregations for multiple funds are calculated
based on actual cash flow dates for each fund and represent a theoretical
time-weighted return for a Limited Partner who invested sequentially in each
fund.
(6)  Net Internal Rate of Return ("Net IRR") represents an annualized
time-weighted return on Limited Partner invested capital, based on
contributions, distributions and unrealized fair value as of the reporting date,
after the impact of all management fees, partnership expenses and carried
interest, including current accruals. Net IRR is calculated based on the timing
of Limited Partner cash flows, which may differ to varying degrees from the
timing of actual investment cash flows for the fund. 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. Subtotal Net IRR aggregations for multiple funds
are calculated based on actual cash flow dates for each fund and represent a
theoretical time-weighted return for a Limited Partner who invested sequentially
in each fund.
(7)  Represents the net accrued performance fee balance/(giveback obligation) as
of the current quarter end.
(8)  For funds marked "NM," IRR may be positive or negative, but is not
considered meaningful because of the limited time since initial investment and
early stage of capital deployment. For funds marked "Neg," IRR is considered
meaningful but is negative as of reporting period end.
(9)  Aggregate includes the following funds, as well as all active
co-investments, separately managed accounts (SMAs), and stand-alone investments
arranged by us: SASOF IV, SASOF V, CALF and CICF.
(10)  Aggregate includes the following funds, as well as related co-investments,
separately managed accounts (SMA's), and certain other stand-alone investments
arranged by us: CSP I, CEMOF I, CSC, CMP I, CMP II, SASOF II, and CASCOF.
(11)  The fund stepdown date represents the contractual stepdown date under the
respective fund agreements for funds on which the fee basis stepdown has not yet
occurred. Funds without a listed Fee Initiation Date and Stepdown Date have not
yet initiated fees.
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(12)  All amounts shown represent total capital commitments as of December 31,
2022. Certain of our recent vintage funds are currently in fundraising and total
capital commitments are subject to change. Committed Capital for CEMOF II
reflects original committed capital of $2.8 billion, less $1.1 billion in
commitments which were extinguished following a Key Person Event.

Global Investment Solutions

The following table presents our results of operations for our Global
Investment Solutions(1) segment:

                                                                Year Ended December 31,
                                                            2022          2021         2020
                                                                 (Dollars in millions)
Segment Revenues
Fund level fee revenues
Fund management fees                                     $   222.9      $ 228.4      $ 193.0
Portfolio advisory and transaction fees, net and other           -          

0.5 0.1

Total fund level fee revenues                                222.9        228.9        193.1
Realized performance revenues                                192.6        186.8        155.1
Realized principal investment income                           3.8          9.8          2.3
Interest income                                                2.6          0.2          0.6
Total revenues                                               421.9        425.7        351.1
Segment Expenses
Compensation and benefits
Cash-based compensation and benefits                         111.7        108.2        113.5
Realized performance revenues related compensation           169.4        168.1        144.6
Total compensation and benefits                              281.1        276.3        258.1
General, administrative, and other indirect expenses          36.8         32.0         37.8
Depreciation and amortization expense                          5.1          4.5          4.5
Interest expense                                              11.0         10.8          9.3
Total expenses                                               334.0        323.6        309.7
(=) Distributable Earnings                               $    87.9      $ 102.1      $  41.4
(-) Realized Net Performance Revenues                         23.2         18.7         10.5
(-) Realized Principal Investment Income                       3.8          9.8          2.3
(+) Net Interest                                               8.4         10.6          8.7
(=) Fee Related Earnings                                 $    69.3      $  84.2      $  37.3


(1) On April 1, 2021, we closed on the sale of our interest in Metropolitan Real
Estate ("MRE"). Distributable Earnings and Fee Related Earnings attributable to
MRE in periods prior to the sale were immaterial to the Global Investment
Solutions segment. The $5.0 million gain on the sale and the $26.8 million
right-of-use asset impairment, as a result of the sublease transaction (see Note
10 to the consolidated financial statements in Item 8 of this Annual Report on
Form 10-K), are not included in DE or FRE. See "Non-GAAP Financial Measures" for
the reconciliation of Total DE and FRE to the U.S. GAAP financial statements.
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Year Ended December 31, 2022 Compared to Year Ended December 31, 2021 and Year
Ended December 31, 2021 Compared to Year Ended December 31, 2020

Distributable Earnings

  Distributable earnings decreased $14.2 million for the year ended December 31,
2022 as compared to 2021, and increased $60.7 million for the year ended
December 31, 2021 as compared to 2020. The following table provides the
components of the change in distributable earnings for the years ended December
31, 2022 and 2021:

                                                              Year Ended December 31,
                                                                 2022              2021
                                                               (Dollars in millions)
Distributable earnings, prior year                       $      102.1            $  41.4
Increases (decreases):
(Decrease) increase in fee related earnings                     (14.9)      

46.9

Increase in realized net performance revenues                     4.5       

8.2

(Decrease) increase in realized principal investment
income

                                                           (6.0)      

7.5

Decrease (increase) in net interest                               2.2       

(1.9)

Total (decrease) increase                                       (14.2)      

60.7

Distributable earnings, current year                     $       87.9       

$ 102.1

  Realized Net Performance Revenues. Global Investment Solutions had realized
performance revenues of $192.6 million, $186.8 million and $155.1 million for
the years ended December 31, 2022, 2021 and 2020, respectively. However, most of
these realizations are from AlpInvest fund vehicles in which we generally do not
retain carried interest. Therefore, our realized net performance revenues were
$23.2 million, $18.7 million and $10.5 million for the years ended December 31,
2022, 2021 and 2020, respectively. As funds that have launched since our
acquisition of AlpInvest in 2011 begin to realize performance revenues, which
will not occur until all capital contributions for investments and expenses and
the preferred return hurdle have been returned, an increasing share of net
realized performance revenues will be for our benefit.

Realized Principal Investment Income. Realized principal investment income
decreased $6.0 million for the year ended December 31, 2022 as compared to 2021
and increased $7.5 million for the year ended December 31, 2021 as compared to
2020, primarily due to investments in our secondary funds.

Fee Related Earnings

  Fee related earnings decreased $14.9 million for the year ended December 31,
2022 as compared to 2021, and increased $46.9 million for the year ended
December 31, 2021 as compared to 2020. The following table provides the
components of the change in fee related earnings for the years ended December
31, 2022 and 2021:

                                                              Year Ended December 31,
                                                                  2022              2021
                                                               (Dollars in millions)
Fee related earnings, prior year                          $       84.2            $ 37.3
Increases (decreases):
(Decrease) increase in fee revenues                               (6.0)     

35.8

(Increase) decrease in cash-based compensation                    (3.5)     

5.3

(Increase) decrease in general, administrative and other
indirect expenses                                                 (4.8)              5.8

Total (decrease) increase                                        (14.9)             46.9
Fee related earnings, current year                        $       69.3            $ 84.2



  Fee Revenues. Total fee revenues decreased $6.0 million for the year ended
December 31, 2022 as compared to 2021, primarily due to the negative impact of
foreign currency translation and the sale of MRE in April 2021, partially offset
by management fees in our latest coinvestment fund, which activated fees in the
second quarter of 2021.
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  Total fee revenues increased $35.8 million for the year ended December 31,
2021 as compared to 2020, primarily due to increased management fees driven by
the activation of management fees on our latest secondaries fund in the second
quarter of 2020 and our latest coinvestment fund in the second quarter of 2021,
as well as $4.4 million in catch-up management fees. These increases were
partially offset by the impact of the sale of MRE on April 1, 2021, which
resulted in a $15.9 million decrease in management fees.

  Cash-based compensation and benefits expense. Cash-based compensation and
benefits expense increased $3.5 million for the year ended December 31, 2022 as
compared to 2021, primarily due to an increase in cash bonuses, partially offset
by a decrease in cash-based compensation and benefits expense as a result of the
MRE sale.

Cash-based compensation and benefits expense decreased $5.3 million for the year
ended December 31, 2021 as compared to 2020, primarily as a result of the MRE
sale on April 1, 2021, partially offset by an increase in cash bonuses.

  General, administrative and other indirect expenses. General, administrative
and other indirect expenses increased $4.8 million for the year ended
December 31, 2022 as compared to 2021, primarily due to higher professional fees
and travel and other general expenses.

General, administrative and other indirect expenses decreased $9.1 million for
the year ended December 31, 2021 as compared to 2020, excluding the impact of
litigation cost recoveries in 2020, primarily due to the sale of MRE.

Fee-earning AUM as of and for each of the Three Years in the Period Ended
December 31, 2022

Fee-earning AUM is presented below for each period together with the components
of change during each respective period.

The table below breaks out Fee-earning AUM by its respective components during
the period.

                                                                        As of December 31,
                                                           2022                2021                2020
                                                                       (Dollars in millions)
Global Investment Solutions
Components of Fee-earning AUM(1)
Fee-earning AUM based on capital commitments           $   19,590          $   18,548          $   17,871
Fee-earning AUM based on invested capital(2)                4,985               4,495               2,319
Fee-earning AUM based on net asset value                    3,783               3,652               3,180

Fee-earning AUM based on lower of cost or fair market
value

                                                       9,189              10,754              13,028
Total Fee-earning AUM                                  $   37,547          

$ 37,449 $ 36,398

(1)For additional information concerning the components of Fee-earning AUM, see
"-Fee-earning Assets under Management."
(2)Includes amounts committed to or reserved for certain funds.

                                               Year Ended Ended December 31,
                                              2022              2021          2020
                                                   (Dollars in millions)
Global Investment Solutions
Fee-earning AUM Rollforward
Balance, Beginning of Period           $    37,449           $ 36,398      $ 28,384
Inflows(1)                                   4,494              8,582       

10,713

Outflows (including realizations)(2)        (3,280)            (8,122)       (3,710)
Market Activity & Other(3)                     537              2,070          (778)
Foreign Exchange(4)                         (1,653)            (1,479)        1,789
Balance, End of Period                 $    37,547           $ 37,449      $ 36,398

(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 and the fee-earning commitments invested in

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vehicles for which management fees are based on invested capital. 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, and reductions for funds
that are no longer calling for fees. Distributions for funds earning management
fees based on commitments during the period do not affect Fee-earning AUM.
Outflows during the year ended December 31, 2021 also reflect the sale of MRE on
April 1, 2021, which had $2.3 billion of Fee-earning AUM as of March 31, 2021.
(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.
(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.

Fee-earning AUM of $37.5 billion at December 31, 2022 was relatively flat
compared to $37.4 billion at December 31, 2021. Inflows of $4.5 billion
primarily attributable to fundraising, capital deployed in our funds which
charge fees based on invested capital, and $0.5 billion of market appreciation
were offset by outflows of $3.3 billion primarily attributable to distributions.
Foreign exchange activity related to the translation of our AlpInvest
Fee-earning AUM from EUR to USD resulted in a decrease in Fee-earning AUM of
$1.7 billion. Distributions from funds still in the commitment or
weighted-average investment period do not impact Fee-earning AUM as these funds
are based on commitments and not invested capital. Increases in fair value may
have an impact on Fee-earning AUM for Global Investment Solutions as the
management fees for many fully committed funds are based on fair value or on the
lower of cost or fair value of the underlying investments.

Fee-earning AUM was $37.4 billion at December 31, 2021, an increase of $1.0
billion, or 3%, compared to $36.4 billion at December 31, 2020. This increase
was driven by inflows of $8.6 billion primarily attributable to fundraising,
capital deployed in our funds which charge fees based on invested capital, and
$2.1 billion of market appreciation. Partially offsetting this increase were
outflows of $8.1 billion primarily attributable to distributions in our
AlpInvest funds, as well as the sale of MRE. Foreign exchange activity related
to the translation of our AlpInvest Fee-earning AUM from EUR to USD resulted in
a decrease in Fee-earning AUM of $1.5 billion.

Fee-earning AUM was $36.4 billion at December 31, 2020, an increase of $8.0
billion, or 28%, compared to $28.4 billion at December 31, 2019. This increase
was driven by inflows of $10.7 billion primarily attributable to fundraising in
our AlpInvest funds as well as capital deployed in our AlpInvest funds which
charge fees based on invested capital. Foreign exchange activity related to the
translation of our AlpInvest Fee-earning AUM from EUR to USD resulted in an
increase in Fee-earning AUM of $1.8 billion. Partially offsetting this increase
were outflows of $3.7 billion primarily attributable to distributions in our
AlpInvest funds.

Total AUM as of and for each of the Three Years in the Period Ended December 31,
2022

The table below provides the period to period rollforward of Total AUM.

                                               Year Ended Ended December 31,
                                              2022              2021          2020
                                                   (Dollars in millions)
Global Investment Solutions
Total AUM Rollforward
Balance, Beginning of Period           $    65,456           $ 58,108      $ 45,246
Inflows(1)                                   4,156              7,129        13,855
Outflows (including realizations)(2)        (7,838)           (15,493)       (7,721)
Market Activity & Other(3)                   4,564             18,992         3,566
Foreign Exchange(4)                         (3,047)            (3,280)        3,162
Balance, End of Period                 $    63,291           $ 65,456      $ 58,108


(1)Inflows 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.
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(2)Outflows includes distributions in our carry funds, related co-investment
vehicles and separately managed accounts, as well as the expiration of available
capital. Outflows during the year ended December 31, 2021 also reflect the sale
of MRE on April 1, 2021, which had $2.4 billion in Total AUM as of March 31,
2021.
(3)Market Activity & Other generally represents realized and unrealized gains
(losses) on portfolio investments in our carry funds, related co-investment
vehicles and separately managed accounts, the net impact of fees, expenses and
non-investment income, as well as other changes in AUM. The fair market values
for our Global Investment Solutions primary and secondary carry funds are based
on the latest available valuations of the underlying limited partnership
interests as provided by their general partners which typically has a lag of up
to 90 days, plus the net cash flows since the latest valuation, up to
December 31, 2022.
(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.

Total AUM was $63.3 billion as of December 31, 2022, a decrease of $2.2 billion,
or 3%, compared to $65.5 billion as of December 31, 2021. Driving the decrease
were $7.8 billion of outflows primarily due to distributions in our AlpInvest
funds and $3.0 billion of negative foreign exchange activity related to the
translation of our AlpInvest AUM from EUR to USD. Offsetting the decrease was
market appreciation of $4.6 billion of market appreciation, reflecting
appreciation of 6% for the year, and $4.2 billion of inflows from fundraising.

Total AUM was $65.5 billion as of December 31, 2021, an increase of $7.4
billion, or 13%, compared to $58.1 billion as of December 31, 2020. Driving this
increase were $7.1 billion of inflows principally from new commitments raised in
our secondaries and coinvestment programs and $19.0 billion of market
appreciation, reflecting appreciation of 48% for the year. Offsetting the
increase were $15.5 billion of outflows primarily due to distributions in our
AlpInvest funds and the sale of MRE, and $3.3 billion of negative foreign
exchange activity related to the translation of our AlpInvest AUM from EUR to
USD.

Total AUM was $58.1 billion as of December 31, 2020, an increase of $12.9
billion, or 29%, compared to $45.2 billion as of December 31, 2019. Driving this
increase were $13.9 billion of inflows principally from new commitments raised
in our AlpInvest secondaries and coinvestment programs, $3.6 billion of market
and other activity, and $3.2 billion of foreign exchange gains related to the
translation of our AlpInvest AUM from EUR to USD. Offsetting the increase were
$7.7 billion of outflows primarily due to distributions in our AlpInvest funds.

Fund Performance Metrics

Fund performance information for our investment funds that have at least $1.0
billion in capital commitments, cumulative equity invested or total value as of
December 31, 2022, which we refer to as our "significant funds," is generally
included throughout this discussion and analysis to facilitate an understanding
of our results of operations for the periods presented. The fund return
information reflected in this discussion and analysis is not indicative of the
performance of The Carlyle Group Inc. and is also not necessarily indicative of
the future performance of any particular fund. An investment in The Carlyle
Group Inc. is not an investment in any of our funds. There can be no assurance
that any of our funds or our other existing and future funds will achieve
similar returns. Primary and secondary investments in external funds are
generally valued based on the proportionate share of the net assets provided by
the third party general partners of the underlying fund partnerships based on
the most recent available information which typically has a lag of up to 90
days. As a result, amounts presented may not include the impact of economic
activity in the current quarter. See Part I. Item 1A. "Risk Factors-Risks
Related to Our Business Operations-Risks Related to the Assets We Manage-The
historical returns attributable to our funds, including those presented in this
report, should not be considered as indicative of the future results of our
funds or of our future results or of any returns expected on an investment in
our common stock."

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The following tables reflect the performance of our significant funds in our
Global Investment Solutions business.

                                                                                                                                                                  TOTAL INVESTMENTS
                                                                                                                                                               As of December 31, 2022
                                                                                                             Cumulative                     Remaining
                                                                                                              Invested        Realized     Fair Value      Total Fair                       Gross           Net             Net

Accrued

Global Investment Solutions (1)(8)(13)                                     Vintage Year      Fund Size     Capital (2)(3)     Value (3)        (3)        Value (3)(4)     MOIC (5)      IRR (6)(10)    IRR (7)(10)    Carry/(Giveback) (12)
                                                                                                                                                     

(Reported in Local Currency, in Millions)

                             Main Fund VII                                     2020         $   8,649    $         4,376    $      906    $    4,806    $       5,712        1.3x            27%            20%       $                 55
                             AlpInvest Secondaries Fund VII                    2020         $   6,769    $         3,230    $      646    $    3,557    $       4,203        1.3x            26%            19%       $                 39
                             Main Fund VI                                      2017         $   6,017    $         5,337    $    3,255    $    4,994    $       8,249        1.5x            17%            14%       $                 81
   Secondary Investments     AlpInvest Secondaries Fund VI                     2017         $   3,333    $         2,996    $    1,780    $    2,833    $       4,613        1.5x            17%            13%       $                 52
                             Main Fund V                                       2011         €   4,273    €         4,495    €    7,303    €    1,051    €       8,354        1.9x            21%            20%       $                 20
                             AlpInvest Secondaries Fund V                      2012         $     756    $           648    $      949    $      217    $       1,165        1.8x            18%            15%       $                  9
                             Main Fund IV                                      2010         €   1,859    €         2,039    €    3,448    €       77    €       3,526        1.7x            19%            18%       $                  -
                             Main Fund VIII                                    2021         $   3,986    $         2,389    $       33    $    2,665    $       2,698        1.1x            14%            10%       $                  8
                             AlpInvest Co-Investment Fund VIII                 2021         $   3,614    $         2,144    $       31    $    2,406    $       2,437        1.1x            15%            10%       $                  7
                             Main Fund VII                                     2017         $   2,842    $         2,649    $    1,039    $    3,681    $       4,719        1.8x            20%            17%       $                 73
       Co-Investments        AlpInvest Co-Investment Fund VII                  2017         $   1,688    $         1,605    $      658    $    2,248    $       2,905        1.8x            20%            17%       $                 47
                             Main Fund VI                                      2014         €   1,115    €           997    €    1,877    €      682    €       2,558        2.6x            26%            24%       $                  6
                             Main Fund V                                       2012         €   1,124    €         1,090    €    2,680    €      487    €       3,168        2.9x            28%            26%       $                  4
                             Main Fund IV                                      2010         €   1,475    €         1,411    €    3,582    €      576    €       4,159        2.9x            24%            22%       $                  -
                             Main Fund VI                                      2015         €   1,106    €         1,119    €    1,191    €    1,172    €       2,364        2.1x            25%            24%       $                  4
                             Main Fund V                                       2012         €   5,080    €         5,939    €    7,697    €    5,106    €      12,802        2.2x            19%            19%       $                 18

    Primary Investments      Main Fund IV                                  

   2009         €   4,877    €         5,790    €    9,679    €    2,711    €      12,389        2.1x            18%            17%       $                  1
                             Main Fund III                                     2005         €  11,500    €        13,696    €   21,898    €    1,722    €      23,620        1.7x            10%            10%       $                  -
                             Main Fund II                                      2003         €   4,545    €         5,075    €    7,988    €      232    €       8,220        1.6x            10%             9%       $                  -

All Other Active Funds & Vehicles (9)                                        Various                     $        12,428    $    7,070    $   10,719    $      17,789        1.4x            12%            11%       $             

101

Fully Realized Funds & Vehicles                                              Various                     €        14,196    €   23,933    €       84    €      24,017        1.7x            14%            13%       $                  -
TOTAL GLOBAL INVESTMENT SOLUTIONS (USD) (11)                                                             $        86,992    $  110,060    $   41,753    $     151,813        1.7x            14%            13%       $                370


(1)  Includes private equity and mezzanine primary fund investments, secondary
fund investments and co-investments originated by the AlpInvest team. Excluded
from the performance information shown are a) investments that were not
originated by AlpInvest, b) Direct Investments, which was spun off from
AlpInvest in 2005, and c) LP co-investment vehicles advised by AlpInvest. As of
December 31, 2022, these excluded investments represent $3.3 billion of AUM at
AlpInvest.

(2) Represents the original cost of investments since inception of the fund.

(3) To exclude the impact of FX, all foreign currency cash flows have been
converted to the currency representing a majority of the capital committed to
the relevant fund at the reporting period spot rate.

(4) Represents all realized proceeds combined with remaining fair value, before
management fees, expenses and carried interest.

(5)  Multiple of invested capital ("MOIC") represents total fair value, before
management fees, expenses and carried interest, divided by cumulative invested
capital.

(6)  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 funds,
before management fees, expenses and carried interest at the AlpInvest level.

(7)  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.

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(8)  As used herein, 'Main Funds' are each comprised of (i) an anchor mandate(s)
(i.e., generally the largest account(s) within a strategy's investment program)
and (ii) AlpInvest's other advisory client mandates with investment periods that
fall within the relevant investment periods under the mandate of the anchor
mandate(s) (but do not overlap with more than one such investment period).
AlpInvest's commingled funds, AlpInvest Secondaries Fund V ("ASF V"), ASF VI,
ASF VII, AlpInvest Co-Investment Fund VII ("ACF VII") and ACF VIII are part of
the Main Funds. Mezzanine Main Funds include mezzanine investments across all
strategies (i.e., Primary Funds, Secondaries, and Co-Investments).

(9)  The performance information of all 'Other Funds' includes Primary
Investments Main Funds VII-XIII, Mezzanine Investments Main Funds III-V, all
'clean technology' private equity investments, all strategic co-investment
mandates that invest in co-investment opportunities arising out of an investor's
own separate private equity relationships and invitations, all strategic
portfolio finance mandates, any state-focused investment mandates, and all other
investors whose investments are not reflected in a Main Fund.

(10)  For funds marked "NM," IRR may be positive or negative, but is not
considered meaningful because of the limited time since initial investment and
early stage of capital deployment. For funds marked "Neg," IRR is considered
meaningful but is negative as of reporting period end.

(11) For purposes of aggregation, funds that report in foreign currency have
been converted to U.S. dollars at the reporting period spot rate.

(12)  Represents the net accrued performance fee balance/(giveback obligation)
as of the current quarter end. Net accrued carry excludes $4 million of net
accrued carry as of December 31, 2022, which was retained as part of the sale of
Metropolitan Real Estate on April 1, 2021.

(13)  "Main Fund" entries represent a combination of a commingled fund and SMA
vehicles which together comprise a "program" vintage. Indented lines shown for
AlpInvest Secondaries Funds VII, VI, V and AlpInvest Co-Investment Funds VII and
VIII reflect a breakout of the commingled fund, which is part of the larger
program vintage.

Liquidity and Capital Resources

Historical Liquidity and Capital Resources

We have historically required limited capital resources to support the working
capital and operating needs of our business. Our management fees have largely
covered our operating costs and all realized performance allocations, after
covering the related compensation, are available for distribution to
equityholders. Approximately 95% - 97% of all capital commitments to our funds
have been provided by our fund investors, with the remaining amount typically
funded by our senior Carlyle professionals, advisors and other professionals.

Our Sources of Liquidity

We have multiple sources of liquidity to meet our capital needs, including cash
on hand, annual cash flows, accumulated earnings and funds from our senior
revolving credit facility, which has $1.0 billion of available capacity as of
December 31, 2022. We believe these sources will be sufficient to fund our
capital needs for at least the next twelve months.We believe we will meet
longer-term expected future cash requirements and obligations through a
combination of existing cash and cash equivalent balances, cash flow from
operations, accumulated earnings and amounts available for borrowing from our
senior revolving credit facility or other financings.

  Cash and cash equivalents. Cash and cash equivalents were approximately $1.4
billion at December 31, 2022. However, a portion of this cash is allocated for
specific business purposes, including, but not limited to, (i) performance
allocations and incentive fee-related cash that has been received but not yet
distributed as performance allocations and incentive fee related compensation
and amounts owed to non-controlling interests; (ii) proceeds received from
realized investments that are allocable to non-controlling interests; and (iii)
regulatory capital.

Corporate Treasury Investments. These investments represent investments in U.S.
Treasury and government agency obligations, commercial paper, certificates of
deposit, other investment grade securities and other investments with original
maturities of greater than three months when purchased. As of December 31, 2022,
we had $20.0 million in corporate treasury investments.

After deducting cash amounts allocated to the specific requirements mentioned
above, the remaining cash, cash equivalents and corporate treasury investments
is approximately $1.3 billion as of December 31, 2022. This remaining amount
will be used towards our primary liquidity needs, as outlined in the next
section. This amount does not take into consideration ordinary course of
business payables and reserves for specific business purposes.
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Senior Revolving Credit Facility. On April 29, 2022, the Company entered into an
amendment and restatement of its senior revolving credit facility. Following the
amendment, the capacity under the revolving credit facility is $1.0 billion and
is scheduled to mature on April 29, 2027. Principal amounts outstanding under
the amended and restated revolving credit facility accrue interest, at the
option of the borrowers, either (a) at an alternate base rate plus an applicable
margin not to exceed 0.50% per annum, or (b) at SOFR plus an applicable margin
not to exceed 1.50% per annum (5.46% at December 31, 2022). As of December 31,
2022, there was no balance outstanding under the senior revolving credit
facility.

  The senior revolving credit facility is unsecured. We are required to maintain
management fee earning assets (as defined in the amended and restated senior
revolving credit facility) of at least $126.6 billion and a total leverage ratio
of less than 4.0 to 1.0, in each case, tested on a quarterly basis.
Non-compliance with any of the financial or non-financial covenants without cure
or waiver would constitute an event of default under the senior revolving credit
facility. An event of default resulting from a breach of certain financial or
non-financial covenants may result, at the option of the lenders, in an
acceleration of the principal and interest outstanding, and a termination of the
senior revolving credit facility. The senior credit facility also contains other
customary events of default, including defaults based on events of bankruptcy
and insolvency, nonpayment of principal, interest or fees when due, breach of
specified covenants, change in control and material inaccuracy of
representations and warranties.

  Global Credit Revolving Credit Facility. In December 2018, certain
subsidiaries of the Company established a revolving line of credit, primarily
intended to support certain lending activities within the Global Credit segment.
The credit facility, which was amended in December 2020 and September 2021, is
scheduled to mature in September 2024, and has a capacity of $250.0 million.
Principal amounts outstanding under the facility accrue interest, at the option
of the borrowers, either (a) at an alternate base rate plus applicable margin
not to exceed 1.00%, or (b) at the Eurocurrency rate plus an applicable margin
not to exceed 2.00%. There was no borrowing outstanding under this facility as
of December 31, 2022.

CLO Borrowings. For certain of our CLOs, the Company finances a portion of its
investment in the CLOs through the proceeds received from term loans and other
financing arrangements with financial institutions or other financing
arrangements. The Company's outstanding CLO borrowings were $421.7 million and
$222.6 million at December 31, 2022 and 2021, respectively, with the increase
year-over-year primarily driven by the CBAM acquisition. The CLO term loans are
secured by the Company's investments in the respective CLO, have a general
unsecured interest in the Carlyle entity that manages the CLO, and generally do
not have recourse to any other Carlyle entity. As of December 31, 2022, $401.0
million of these borrowings are secured by investments attributable to The
Carlyle Group Inc. See Note 8 of our financial statements for more information
on our CLO borrowings.

Senior Notes. Certain indirect finance subsidiaries of the Company have issued
senior notes, on which interest is payable semi-annually, as discussed below.
The senior notes are unsecured and unsubordinated obligations of the respective
subsidiary and are fully and unconditionally guaranteed, jointly and severally,
by the Company and each of the Carlyle Holdings partnerships. The indentures
governing each of the senior notes contain customary covenants that, among other
things, limit the issuers' and the guarantors' ability, subject to certain
exceptions, to incur indebtedness secured by liens on voting stock or profit
participating equity interests of their subsidiaries or merge, consolidate or
sell, transfer or lease assets. The notes also contain customary events of
default. All or a portion of the notes may be redeemed at our option, in whole
or in part, at any time and from time to time, prior to their stated maturity,
at the make-whole redemption price set forth in the notes. If a change of
control repurchase event occurs, the notes are subject to repurchase at the
repurchase price as set forth in the notes.

3.500% Senior Notes. In September 2019, Carlyle Finance Subsidiary L.L.C.
issued $425.0 million of 3.500% senior notes due September 19, 2029 at 99.841%
of par.

5.650% Senior Notes. In September 2018, Carlyle Finance L.L.C. issued $350.0
million of 5.650% senior notes due September 15, 2048 at 99.914% of par.

5.625% Senior Notes. In March 2013, Carlyle Holdings II Finance L.L.C. issued
$400.0 million of 5.625% senior notes due March 30, 2043 at 99.583% of par. In
March 2014, an additional $200.0 million of these notes were issued at 104.315%
of par and are treated as a single class with the already outstanding $400.0
million aggregate principal amount of these notes.

Subordinated Notes. In May 2021, Carlyle Finance L.L.C. issued $435.0 million
aggregate principal amount of 4.625% subordinated notes due May 15, 2061. In
June 2021, an additional $65.0 million aggregate principal amount of these
subordinated notes were issued and are treated as a single series with the
already outstanding $435.0 million aggregate principal
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amount. The subordinated notes are unsecured and subordinated obligations of the
issuer and are fully and unconditionally guaranteed, jointly and severally, on a
subordinated basis, by the Company, each of the Carlyle Holdings partnerships,
and CG Subsidiary Holdings L.L.C., an indirect subsidiary of the Company. The
indentures governing the subordinated notes contain customary covenants that,
among other things, limit the issuers' and the guarantors' ability, subject to
certain exceptions, to incur indebtedness ranking on a parity with the
subordinated notes or indebtedness ranking junior to the subordinated notes
secured by liens on voting stock or profit participating equity interests of
their subsidiaries or merge, consolidate or sell, transfer or lease all or
substantially all of their assets. The subordinated notes also contain customary
events of default. All or a portion of the notes may be redeemed at our option,
in whole or in part, at any time and from time to time on or after June 15,
2026, prior to their stated maturity, at a redemption price equal to their
principal amount plus any accrued and unpaid interest to, but excluding, the
date of redemption. If interest due on the Subordinated Notes is deemed to no
longer be deductible in the U.S., a "Tax Redemption Event," the subordinated
notes may be redeemed, in whole, but not in part, within 120 days of the
occurrence of such event at a redemption price equal to their principal amount
plus accrued and unpaid interest to, but excluding, the date of redemption. In
addition, the subordinated notes may be redeemed, in whole, but not in part, at
any time prior to May 15, 2026, within 90 days of the rating agencies
determining that the Subordinated Notes should no longer receive partial equity
treatment pursuant to the rating agency's criteria, a "rating agency event," at
a redemption price equal to 102% of their principal amount plus any accrued and
unpaid interest to, but excluding, the date of redemption.

Obligations of CLOs. Loans payable of the Consolidated Funds represent amounts
due to holders of debt securities issued by the CLOs. We are not liable for any
loans payable of the CLOs. Loans payable of the CLOs are collateralized by the
assets held by the CLOs and the assets of one CLO may not be used to satisfy the
liabilities of another. This collateral consists of cash and cash equivalents,
corporate loans, corporate bonds and other securities.

Realized Performance Allocation Revenues. Another source of liquidity we may use
to meet our capital needs is the realized performance allocation revenues
generated by our investment funds. Performance allocations are generally
realized when an underlying investment is profitably disposed of and the fund's
cumulative returns are in excess of the preferred return. For certain funds,
performance allocations are realized once all invested capital and expenses have
been returned to the fund's investors and the fund's cumulative returns are in
excess of the preferred return. Incentive fees earned on our CLO vehicles
generally are paid upon the dissolution of such vehicles.

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Our accrued performance allocations by segment as of December 31, 2022, gross
and net of accrued giveback obligations, are set forth below:

                                                     Accrued                 Accrued             Net Accrued
                                                   Performance              Giveback             Performance
Asset Class                                        Allocations             Obligation             Revenues
                                                                    (Dollars in millions)
Global Private Equity                           $       5,577.1          $      (18.4)         $    5,558.7
Global Credit                                             193.9                 (22.5)                171.4
Global Investment Solutions(1)                          1,346.7                     -               1,346.7
Total                                           $       7,117.7          $      (40.9)         $    7,076.8
Plus: Accrued performance allocations from NGP
Carry Funds                                                                                           564.6

Less: Net accrued performance allocations presented as fee related performance revenues

               (53.2)
Less: Accrued performance allocation-related compensation                                          (3,625.3)

Plus: Receivable for giveback obligations from current and former employees

                            10.1

Less: Deferred taxes on certain foreign accrued performance allocations

                           (31.6)

Less/Plus: Net accrued performance allocations/giveback obligations attributable to
non-controlling interests in consolidated entities

                                                      1.1

Plus: Net accrued performance allocations attributable to Consolidated Funds, eliminated
in consolidation

                                                                                        5.4
Net accrued performance revenues before timing differences                                          3,947.9

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

                                                 16.7

Net accrued performance revenues attributable to The Carlyle Group Inc.

                    $    3,964.6


(1) The Company's primary and secondary investments in external funds are
generally valued based on its proportionate share of the net assets provided by
the third party general partners of the underlying fund partnerships based on
the most recent available information which typically has a lag of up to 90
days. As a result, amounts presented may not include the impact of economic
activity in the current quarter.

The net accrued performance revenues attributable to The Carlyle Group Inc.,
excluding realized amounts, related to our carry funds and our other vehicles as
of December 31, 2022, as well as the carry fund appreciation (depreciation), is
set forth below by segment (Dollars in millions):


                                                                                                                                                       Carry Fund Appreciation/(Depreciation)(1)                       Net Accrued
                                                                                                                                             FY 2020                    FY 2021                    FY 2022             Performance
                                                                                                                                                                                                                         Revenues
Overall Carry Fund Appreciation/(Depreciation)                                                                                                 10%                        41%                        11%
Global Private Equity                                                                                                                                                                                                $     3,488.7
 Corporate Private Equity                                                                                                                      19%                        41%                         6%                   2,313.8
Real Estate                                                                                                                                     8%                        39%                        16%                     275.5
Infrastructure & Natural Resources                                                                                                            (16)%                       34%                        48%                     899.4
Global Credit Carry Funds                                                                                                                      (2)%                       22%                         3%                     102.4
Global Investment Solutions Carry Funds(2)                                                                                                     10%                        48%                         6%                     373.5
Net Accrued Performance Revenues                                                                                                                                                                                     $     3,964.6


(1) Appreciation/(Depreciation) represents unrealized gain/(loss) for the period
on a total return basis before fees and expenses. The percentage of return is
calculated as: ending remaining investment fair market value plus net investment
outflow (sales proceeds minus net purchases) minus beginning remaining
investment fair market value divided by beginning remaining investment fair
market value. Amounts are fund only, and do not include coinvestments.

(2) The Company's primary and secondary investments in external funds are
generally valued based on its proportionate share of the net assets provided by
the third party general partners of the underlying fund partnerships based on
the most recent available information which typically has a lag of up to 90
days. As a result, amounts presented may not include the impact of economic
activity in the current quarter. Appreciation in 2022 includes the positive
impact of foreign currency translation of the USD-denominated investments in our
EUR-based funds. Excluding that impact, appreciation was 4% for the year ended
December 31, 2022.

  Realized Principal Investment Income. Another source of liquidity we may use
to meet our capital needs is the realized principal investment income generated
by our equity method investments and other principal investments. Principal
investment income is realized when we redeem all or a portion of our investment
or when we receive or are due cash income, such as dividends or distributions.
Certain of the investments attributable to The Carlyle Group Inc. (excluding
certain general partner interests, strategic investments, and investments in
certain CLOs) may be sold at our discretion as a source of liquidity. During
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the year ended December 31, 2021, we sold approximately $150.4 million of
investments in U.S. CLOs and used the proceeds to repay outstanding CLO
borrowings (see Note 8 to the consolidated financial statements).

Investments as of December 31, 2022 consist of the following:

                                    Investments in Carlyle       Investments in
                                            Funds                    NGP(1)                    Total
                                                   (Dollars in millions)
Investments, excluding performance
allocations                         $            2,710.6      $            934.2            $ 3,644.8
Less: Amounts attributable to
non-controlling interests in
consolidated entities                             (167.8)                      -               (167.8)
Plus: Investments in Consolidated
Funds, eliminated in consolidation                 222.0                       -                222.0
Less: Strategic equity method
investments in NGP Management                          -                  (369.7)              (369.7)
Less: Investment in NGP general
partners - accrued performance
allocations                                            -                  (564.5)              (564.5)

Total investments attributable to
The Carlyle Group Inc.              $            2,764.8      $                -            $ 2,764.8

(1) See Note 6 to the consolidated financial statements.

Our investments as of December 31, 2022 can be further attributed as follows
(Dollars in millions):

Investments in Carlyle Funds, excluding CLOs:
Global Private Equity funds(1)                                            $ 

845.9

Global Credit funds(2)                                                      

1,046.5

Global Investment Solutions funds(3)                                        

199.6

Total investments in Carlyle Funds, excluding CLOs                          2,092.0
Investments in CLOs                                                           531.2
Other investments                                                             141.6
Total investments attributable to The Carlyle Group Inc.                    

2,764.8

CLO loans and other borrowings collateralized by investments attributable
to The Carlyle Group Inc.(4)

(401.0)

Total investments attributable to The Carlyle Group Inc., net of CLO
loans and other borrowings

                                                $ 

2,363.8

(1) Excludes our strategic equity method investment in NGP Management and
investments in NGP general partners - accrued performance allocations.

(2) Includes the Company's investment in Fortitude Re, which was contributed to
Carlyle FRL, a Carlyle-affiliated investment fund, in June 2020 as discussed in
Note 6 to the consolidated financial statements. This investment has a carrying
value of $715.7 million as of December 31, 2022.

(3) The Company's primary and secondary investments in external funds are
generally valued based on its proportionate share of the net assets provided by
the third party general partners of the underlying fund partnerships based on
the most recent available information which typically has a lag of up to 90
days. As a result, amounts presented may not include the impact of economic
activity in the current quarter.

(4) Of the $421.7 million in total CLO borrowings as of December 31, 2022 and as
disclosed in Note 8 to the consolidated financial statements, $401.0 million are
collateralized by investments attributable to The Carlyle Group Inc. The
remaining $20.7 million in total CLO borrowings are collateralized by
investments attributable to non-controlling interests.

Our Liquidity Needs

We generally use our working capital and cash flows to invest in growth
initiatives, service our debt, fund the working capital needs of our business
and investment funds and pay dividends to our common stockholders.

In the future, we expect that our primary liquidity needs will be to:

•provide capital to facilitate the growth of our existing business lines;

•provide capital to facilitate our expansion into new, complementary business
lines, including acquisitions;

•pay operating expenses, including compensation and compliance costs and other
obligations as they arise;

•fund costs of litigation and contingencies, including related legal costs;

•fund the capital investments of Carlyle in our funds;

•fund capital expenditures;

•repay borrowings and related interest costs and expenses;

•pay earnouts and contingent cash consideration associated with our acquisitions
and strategic investments;

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•pay income taxes, including corporate income taxes;

•pay dividends to our common stockholders in accordance with our dividend
policy;

•make installment payments under the deferred obligation to former holders of
Carlyle Holdings partnership units, which were exchanged in the Conversion; and

•repurchase our common stock.

  Common Stockholder Dividends. The declaration and payment of any dividends to
holders of our common stock is subject to the discretion of our Board of
Directors and compliance with applicable law. Under our dividend policy for our
common stock, we have paid dividends to holders of our common stock in an amount
of $0.325 per share of common stock ($1.30 per share annually) during dividend
year 2022. In February 2023, our Board of Directors approved an increase in the
anticipated common stock dividend to an annual rate of $1.40 per share ($0.35
per common share on a quarterly basis), anticipated to commence for the first
quarter 2023 dividend anticipated to be paid in May 2023. For U.S. federal
income tax purposes, any dividends we pay following the Conversion generally
will be treated as qualified dividend income (generally taxable to U.S.
individual stockholders at capital gain rates) paid by a domestic corporation to
the extent paid out of current or accumulated earnings and profits, as
determined for U.S. federal income tax purposes, with any excess dividends
treated as return of capital to the extent of the stockholder's basis. The
declaration and payment of dividends to holders of our common stock will be at
the sole discretion of our Board of Directors, and our dividend policy may be
changed at any time.

With respect to distribution year 2022, the Board of Directors declared
dividends to common stockholders totaling approximately $472.5 million, or $1.30
per common share, consisting of the following:

                                        Common Stock Dividends - Dividend Year 2022
                     Dividend per Common  Dividend to Common
      Quarter               Share            Stockholders               Record Date                    Payment Date
      Q1 2022        $          0.325    $            117.6             May 10, 2022                   May 17, 2022
      Q2 2022                   0.325                 118.3            August 9, 2022                August 16, 2022
      Q3 2022                   0.325                 118.2          November 18, 2022              November 25, 2022
      Q4 2022                   0.325                 118.4          February 22, 2023                March 1, 2023
       Total         $           1.30    $            472.5

With respect to distribution year 2021, the Board of Directors declared
dividends to common stockholders totaling approximately $356.6 million, or $1.00
per common share, to common stockholders, consisting of the following:

                                         Common Stock Dividends - Dividend Year 2021
                     Dividend per Common   Dividend to Common
      Quarter               Share             Stockholders                Record Date                    Payment Date
      Q1 2021        $            0.25    $             88.7             May 11, 2021                    May 19, 2021
      Q2 2021                     0.25                  89.3            August 10, 2021                August 17, 2021
      Q3 2021                     0.25                  89.1           November 9, 2021               November 17, 2021
      Q4 2021                     0.25                  89.5           February 15, 2022              February 23, 2022
       Total         $            1.00    $            356.6


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With respect to distribution year 2020, the Board of Directors declared
dividends to common stockholders totaling approximately $352.6 million, or $1.00
per common share, to common stockholders, consisting of the following:

                                         Common Stock Dividends - Dividend Year 2020
                     Dividend per Common   Dividend to Common
      Quarter               Share             Stockholders               Record Date                    Payment Date
      Q1 2020        $            0.25    $             87.2             May 12, 2020                   May 19, 2020
      Q2 2020                     0.25                  88.3           August 11, 2020                August 18, 2020
      Q3 2020                     0.25                  88.4          November 10, 2020              November 17, 2020
      Q4 2020                     0.25                  88.7          February 16, 2021              February 23, 2021
       Total         $            1.00    $            352.6


Dividends to common stockholders paid during the year ended December 31, 2022
totaled $443.6 million, including the amount paid in February 2022 of $0.25 per
common share in respect of the fourth quarter of 2021. Dividends to common
stockholders paid during the year ended December 31, 2021 totaled $355.8
million, including the amount paid in February 2021 of $0.25 per common share in
respect of the fourth quarter of 2020. Dividends to common stockholders paid
during the year ended December 31, 2020 totaled $351.3 million, including the
amount paid in February 2020 of $0.25 per common share in respect of the fourth
quarter of 2019.

Fund Commitments. Generally, we intend to have Carlyle commit to fund
approximately 0.75% of the capital commitments to our future carry funds,
although we may elect to invest additional amounts in funds focused on new
investment areas. We may, from time to time, exercise our right to purchase
additional interests in our investment funds that become available in the
ordinary course of their operations. We expect our senior Carlyle professionals
and employees to continue to make significant capital contributions to our funds
based on their existing commitments, and to make capital commitments to future
funds consistent with the level of their historical commitments. We also intend
to make investments in our open-end funds and our CLO vehicles. Our investments
in our European CLO vehicles will comply with the risk retention rules as
discussed in "Risk Retention Rules" later in this section.

Since our inception through December 31, 2022, we and our senior Carlyle
professionals, operating executives and other professionals have invested or
committed to invest in or alongside our funds. Approximately 3% to 5% of all
capital commitments to our funds are funded collectively by us and our senior
Carlyle professionals, operating executives and other professionals. The current
unfunded commitment of Carlyle and our senior Carlyle professionals, operating
executives and other professionals to our investment funds as of December 31,
2022, consisted of the following:

                                                        Unfunded
               Asset Class                             Commitment
                                                 (Dollars in millions)
               Global Private Equity            $              3,300.0
               Global Credit                                     389.0
               Global Investment Solutions                       260.9
               Total                            $              3,949.9


A substantial majority of the remaining commitments are expected to be funded by
senior Carlyle professionals, operating executives and other professionals
through our internal co-investment program. Of the $3.9 billion of unfunded
commitments, approximately $3.2 billion is subscribed individually by senior
Carlyle professionals, operating executives and other professionals, with the
balance funded directly by the Company.

Under the Carlyle Global Capital Markets platform, certain of our subsidiaries
may act as an underwriter, syndicator or placement agent for security offerings
and loan originations. We earn fees in connection with these activities and bear
the risk of the sale of such securities and placement of such loans, which may
be longer dated. As of December 31, 2022, we had €20.0 million ($21.4 million)
in commitments related to the origination and syndication of loans and
securities under the Carlyle Global Capital Markets platform, which were
extinguished in January 2023.
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  Repurchase Program. In October 2021, our Board of Directors authorized the
repurchase of up to $400 million of common stock effective January 1, 2022,
which replaced a repurchase authorization provided in February 2021. This
program authorizes the repurchase of shares of common stock from time to time in
open market transactions, in privately negotiated transactions or otherwise. For
the year ended December 31, 2022, we paid an aggregate of $185.7 million to
repurchase and retire approximately 4.9 million shares of common stock with all
of the repurchases done via open market and brokered transactions. As of
December 31, 2022, $214.3 million of repurchase capacity remained under the
program. In February 2023, the Board of Directors replenished the repurchase
program and expanded the limit to $500 million of common stock in aggregate,
effective March 31, 2023.

Cash Flows

The significant captions and amounts from our consolidated statements of cash
flows which include the effects of our Consolidated Funds and CLOs in accordance
with U.S. GAAP are summarized below.

                                                                         

Year Ended December 31,

                                                                2022                2021              2020
                                                                          (Dollars in millions)
Statements of Cash Flows Data
Net cash (used in) provided by operating activities,
including investments in Carlyle funds                      $   (379.3)         $ 1,791.0          $ (169.2)
Net cash used in investing activities                           (828.8)             (32.2)            (61.2)
Net cash provided by (used in) financing activities              114.8             (242.5)            370.3
Effect of foreign exchange rate change                           (20.3)             (30.8)             21.7

Net change in cash, cash equivalents and restricted cash $ (1,113.6)

$ 1,485.5 $ 161.6

Net Cash (Used In) Provided by Operating Activities. Net cash (used in) provided
by operating activities includes the investment activity of our Consolidated
Funds. Excluding this activity, net cash (used in) provided by operating
activities was primarily driven by our earnings in the respective periods after
adjusting for significant non-cash activity, including non-cash performance
allocations and incentive fees, the related non-cash performance allocations and
incentive fee related compensation, non-cash equity-based compensation, and
depreciation, amortization and impairments, all of which are included in
earnings.

Cash flows from operating activities for the years ended December 31, 2022, 2021
and 2020, excluding the activities of our Consolidated Funds, were $860.7
million, $2,143.0 million and $716.8 million, respectively. Operating cash
inflows primarily include the receipt of management fees and realized
performance allocations and incentive fees, while operating cash outflows
primarily include payments for operating expenses, including compensation,
income taxes, interest, and general, administrative and other expenses. During
the years ended December 31, 2022, 2021 and 2020, net cash provided by operating
activities primarily includes the receipt of management fees and realized
performance allocations and incentive fees, totaling approximately $4.1 billion,
$4.7 billion, and $2.1 billion, respectively. These inflows were partially
offset by payments for compensation, income taxes, interest, and general,
administrative and other expenses of approximately $3.1 billion, $3.1 billion,
and $1.4 billion for the years ended December 31, 2022, 2021 and 2020,
respectively.

Cash used to purchase investments as well as the proceeds from the sale of such
investments are also reflected in our operating activities as investments are a
normal part of our operating activities. During the year ended December 31,
2022, investment proceeds were $474.9 million while investment purchases were
$629.9 million, which includes our $200 million strategic investment in iStar
through our real estate credit fund and our $49 million follow-on investment in
Carlyle FRL. During the year ended December 31, 2021, investment proceeds were
$668.4 million while investment purchases were $276.7 million. During the year
ended December 31, 2020, investment proceeds were $307.5 million while
investment purchases were $350.9 million, including $79.6 million related to a
purchase price adjustment on our strategic investment in Fortitude.

The net cash provided by operating activities for the year ended December 31,
2022 also reflects the investment activity of our Consolidated Funds. For the
year ended December 31, 2022, proceeds from the sales and settlements of
investments by the Consolidated Funds were $2.9 billion, while purchases of
investments by the Consolidated Funds were $3.8 billion. For the year ended
December 31, 2021, proceeds from the sales and settlements of investments by the
Consolidated Funds were $4.9 billion, while purchases of investments by the
Consolidated Funds were $5.4 billion. For the year ended December 31, 2020,
proceeds from the sales and settlements of investments by the Consolidated Funds
were $2.0 billion, while purchases of investments by the Consolidated Funds were
$3.1 billion.
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Net Cash Used In Investing Activities. Our investing activities generally
reflect cash used for acquisitions, fixed assets and software for internal use,
corporate treasury investments and cash received from dispositions. For the year
ended December 31, 2022, cash used in investing activities principally reflects
purchases of intangible assets and net CLO investments from the CBAM transaction
of $618.4 million, the purchase of Abingworth of $150.2 million, and net
purchases of corporate treasury investments of $69.6 million, as well as net
purchases of fixed assets of $40.6 million. For the year ended December 31,
2021, net purchases of fixed assets of $41.4 million were partially offset by
proceeds received from the sales of MRE and our Brazil management entity of $5.9
million and $3.3 million, respectively. During the year ended December 31, 2020,
purchases of fixed assets were $61.2 million.

Net Cash Provided by (Used in) Financing Activities. Net cash provided by (used
in) financing activities during the years ended December 31, 2022, 2021 and
2020, excluding the activities of our Consolidated Funds, was $(1.1) billion,
$(602.1) million and $(511.0) million, respectively. Dividends paid to our
common stockholders were $443.6 million, $355.8 million, and $351.3 million for
the years ended December 31, 2022, 2021 and 2020, respectively. In 2022, we also
paid $68.8 million in January 2022 for the third installment of the deferred
consideration payable to former Carlyle Holdings unitholders in connection with
the Conversion, and paid $185.6 million to repurchase and retire 4.9 million
shares of common stock. Net cash used in financing activities for the year ended
December 31, 2022 (prior to the effects of consolidation) also includes $456.2
million primarily related to amounts funded to bridge investment activity in
consolidated funds that are actively fundraising in our Global Private Equity
segment. This investment activity is reflected as purchases of investment in our
consolidated statement of cash flows. In 2021, we received net proceeds of
$484.1 million from the issuance of $500.0 million of 4.625% subordinated notes,
and made $120.8 million of net repayments on borrowings used to finance a
portion of our investments in the CLOs. We borrowed and repaid $70.0 million in
borrowings under the Global Credit revolving credit facility, and paid $259.9
million to redeem the 3.875% Senior Notes. We also paid $68.8 million in January
2021 for the second installment of the deferred consideration payable to former
Carlyle Holdings unitholders in connection with the Conversion, and paid $161.8
million to repurchase and retire 3.2 million shares of common stock. In 2020, we
received net proceeds of $294.1 million from borrowings under the revolving
credit facilities, and repaid $329.9 million, and paid $68.8 million in January
2020 for the first installment of the deferred consideration payable to former
Carlyle Holdings unitholders in connection with the Conversion.

The net borrowings on loans payable by our Consolidated Funds during the years
ended December 31, 2022, 2021 and 2020 were $624.2 million, $182.9 million, and
$704.1 million, respectively. For the years ended December 31, 2022, 2021 and
2020, contributions from non-controlling interest holders were $391.2 million,
$216.2 million, and $210.0 million, respectively, which relate primarily to
contributions from the non-controlling interest holders in Consolidated Funds.
For the years ended December 31, 2022, 2021 and 2020, distributions to
non-controlling interest holders were $216.8 million, $94.6 million, and $77.8
million, respectively, which relate primarily to distributions to the
non-Carlyle interests in majority-owned in majority-owned subsidiaries.

Our Balance Sheet

  Total assets were $21.4 billion at December 31, 2022, an increase of $0.2
billion from December 31, 2021. The increase in total assets was primarily
attributable to an increase in net intangible assets of $0.9 billion driven by
the Abingworth and CBAM transactions, an increase in investments of Consolidated
Funds of $0.2 billion, and an increase in amounts due from affiliates and other
receivables of $0.2 billion. These increases were partially offset by a decrease
in cash and cash equivalents of $1.1 billion driven by the iStar, CBAM and
Abingworth strategic transactions, as well as the payment of the third
installment of deferred consideration to the former Carlyle Holdings
unitholders, and payments for bonuses and payroll, dividends and income taxes.
Cash and cash equivalents were approximately $1.4 billion and $2.5 billion at
December 31, 2022 and December 31, 2021, respectively.

Total liabilities were $14.6 billion at December 31, 2022, a decrease of $1.0
billion from December 31, 2021. The decrease in liabilities was primarily
attributable to a decrease in accrued compensation and benefits of $0.6 billion
due to the corresponding decrease in accrued performance allocations, as well as
a decrease in other liabilities of Consolidated Funds of $0.4 billion. These
decreases were partially offset by an increase in debt obligations of $0.2
billion, driven by an increase in outstanding CLO borrowings, largely in
connection with the CBAM transaction (see Notes 4 and 8 to the consolidated
financial statements).

The assets and liabilities of the Consolidated Funds are generally held within
separate legal entities and, as a result, the assets of the Consolidated Funds
are not available to meet our liquidity requirements and similarly the
liabilities of the Consolidated Funds are non-recourse to us. For example, as
previously discussed, the CLO term loans generally are secured by the Company's
investment in the CLO, have a general unsecured interest in the Carlyle entity
that manages the CLO, and do not have recourse to any other Carlyle entity.
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Our balance sheet without the effect of the Consolidated Funds can be seen in
Note 19 to the consolidated financial statements included in this Annual Report
on Form 10-K. At December 31, 2022, our total assets without the effect of the
Consolidated Funds were $14.8 billion, including cash and cash equivalents
totaling $1.4 billion and net accrued performance revenues of $4.0 billion
(inclusive of net accrued performance allocations from NGP).

Unconsolidated Entities

Certain of our funds have entered into lines of credit secured by their
investors' unpaid capital commitments or by a pledge of the equity of the
underlying investment. These lines of credit are used primarily to reduce the
overall number of capital calls to investors or for working capital needs. In
certain instances, however, they may be used for other investment related
activities, including serving as bridge financing for investments. The degree of
leverage employed varies among our funds.

In March 2022, Carlyle Net Leasing Income, L.P., a Carlyle-affiliated investment
fund, acquired a diversified portfolio of triple net leases from iStar, Inc. for
an enterprise value of $3 billion, which was funded using $2 billion in debt and
$1 billion in equity. The investment fund is not consolidated by us, and the
debt is non-recourse to us. As general partner of the investment fund, we
contributed $200 million as a minority interest balance sheet investment, which
is included in our Global Credit principal equity method investments (see Note 6
to the consolidated financial statements included in this Annual Report on Form
10-K).

Off-balance Sheet Arrangements

In the normal course of business, we enter into various off-balance sheet
arrangements including sponsoring and owning limited or general partner
interests in consolidated and non-consolidated funds, entering into derivative
transactions, and entering into guarantee arrangements. We also have ongoing
capital commitment arrangements with certain of our consolidated and
non-consolidated funds. We do not have any other off-balance sheet arrangements
that would require us to fund losses or guarantee target returns to investors in
any of our other investment funds.

For further information regarding our off-balance sheet arrangements, see Note 3
and Note 10 to the consolidated financial statements included in this Annual
Report on Form 10-K.

Contractual Obligations

The following table sets forth information relating to our contractual
obligations as of December 31, 2022 on a consolidated basis and on a basis
excluding the obligations of the Consolidated Funds:

                                                      2023             2024-2025           2026-2027          Thereafter            Total
                                                                                     (Dollars in millions)
Debt obligations(1)                               $       -          $        -          $     16.3          $  2,280.4          $ 2,296.7
Interest payable(2)                                   183.0               227.5               220.7             1,795.7            2,426.9
Other consideration(3)                                147.8               250.3                36.0                18.0              452.1
Operating lease obligations(4)                         68.1               125.0               117.3               339.2              649.6
Capital commitments to Carlyle funds(5)             3,971.3                   -                   -                   -            3,971.3
Tax receivable agreement payments(6)                   20.4                 6.5                 6.5                66.6              100.0
Loans payable of Consolidated Funds(7)                215.1               430.8               430.2             6,690.0            7,766.1
Unfunded commitments of the CLOs(8)                     6.8                   -                   -                   -                6.8
Consolidated contractual obligations                4,612.5             1,040.1               827.0            11,189.9           17,669.5
Loans payable of Consolidated Funds(7)               (215.1)             (430.8)             (430.2)           (6,690.0)          (7,766.1)
Capital commitments to Carlyle funds(5)            (3,244.2)                  -                   -                   -           (3,244.2)
Unfunded commitments of the CLOs(8)                    (6.8)                  -                   -                   -               (6.8)
Carlyle Operating Entities contractual
obligations                                       $ 1,146.4          $    

609.3 $ 396.8 $ 4,499.9 $ 6,652.4

(1)The table above assumes that no prepayments are made on the senior and
subordinated notes and that the outstanding balances, if any, on the senior
credit facility and Global Credit revolving credit facility are repaid on the
maturity dates of credit facilities, which are April 2027 and September 2024,
respectively. The CLO term loans are included in the table above based on the
earlier of the stated maturity date or the date the CLO is expected to be
dissolved. See Note 8 to the consolidated financial statements for the various
maturity dates of the CLO term loans, senior notes and subordinated notes.

(2)The interest rates on the debt obligations as of December 31, 2022 consist
of: 3.500% on $425.0 million of senior notes, 5.650% on $350.0 million of senior
notes, 5.625% on $600.0 million of senior notes, 4.625% on $500.0 million of
subordinated notes, and a range of approximately 2.40% to
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10.15% for our CLO term loans. Interest payments assume that no prepayments are
made and loans are held until maturity with the exception of the CLO term loans,
which are based on the earlier of the stated maturity date or the date the CLO
is expected to be dissolved.

(3)These obligations represent our estimate of amounts to be paid on the
contingent cash obligations associated with our acquisitions of Carlyle Aviation
Partners and Abingworth, deferred consideration related to our strategic
investment in Fortitude, and other obligations, as well as the deferred payment
obligations described below. In connection with the Conversion, former holders
of Carlyle Holdings partnership units will receive cash payments aggregating to
approximately $344 million, which is equivalent to $1.50 per Carlyle Holdings
partnership unit exchanged in the Conversion, payable in five annual
installments of $0.30, the third of which occurred during the first quarter of
2022. The payment obligations are unsecured obligations of the Company or a
subsidiary thereof, subordinated in right of payment to indebtedness of the
Company and its subsidiaries, and do not bear interest.

(4)We lease office space in various countries around the world, including our
largest offices in Washington, D.C., New York City, London and Hong Kong, which
have non-cancelable lease agreements expiring in various years through 2036. The
amounts in this table represent the minimum lease payments required over the
term of the lease.

(5)These obligations generally represent commitments by us to fund a portion of
the purchase price paid for each investment made by our funds. These amounts are
generally due on demand and are therefore presented in the less than one year
category. A substantial majority of these investments is expected to be funded
by senior Carlyle professionals and other professionals through our internal
co-investment program. Of the $3.9 billion of unfunded commitments to the funds,
approximately $3.2 billion is subscribed individually by senior Carlyle
professionals, advisors and other professionals, with the balance funded
directly by the Company.

(6)In connection with our initial public offering, we entered into a tax
receivable agreement with the limited partners of the Carlyle Holdings
partnerships whereby we agreed to pay such limited partners 85% of the amount of
cash tax savings, if any, in U.S. federal, state and local income tax realized
as a result of increases in tax basis resulting from exchanges of Carlyle
Holdings partnership units for common units of The Carlyle Group L.P. From and
after the consummation of the Conversion, former holders of Carlyle Holdings
partnership units do not have any rights to payments under the tax receivable
agreement except for payment obligations pre-existing at the time of the
Conversion with respect to exchanges that occurred prior to the Conversion.
These obligations are more than offset by the future cash tax savings that we
are expected to realize. A payment under the tax receivable agreement of $20.4
million was made in January 2023.

(7)These obligations represent amounts due to holders of debt securities issued
by the consolidated CLO vehicles. These obligations include interest to be paid
on debt securities issued by the consolidated CLO vehicles. Interest payments
assume that no prepayments are made and loans are held until maturity. For debt
securities with rights only to the residual value of the CLO and no stated
interest, no interest payments were included in this calculation. Interest
payments on variable-rate debt securities are based on interest rates in effect
as of December 31, 2022, at spreads to market rates pursuant to the debt
agreements, and range from 1.15% to 12.84%.

(8)These obligations represent commitments of the CLOs to fund certain
investments. These amounts are generally due on demand and are therefore
presented in the less than one year category.

Excluded from the table above are liabilities for uncertain tax positions of
$39.3 million at December 31, 2022 as we are unable to estimate when such
amounts may be paid.

Contingent Cash Payments For Business Acquisitions and Strategic Investments

We have certain contingent cash obligations associated with our acquisition of
Carlyle Aviation Partners and Abingworth which are accounted for as compensation
expense and are accrued for over the service period. If earned, payments are
made in the year following the performance year to which the payments relate.
For our acquisition of Carlyle Aviation Partners, the contingent cash payments
relate to an earn-out of up to $150.0 million that is payable upon the
achievement of certain revenue and earnings performance targets during 2020
through 2025. To date, we have paid $53.6 million related to the Carlyle
Aviation Partners earn-out. For our acquisition of Abingworth, the contingent
cash obligations relate to future incentive payments of up to $130.0 million
that are payable upon the achievement of certain performance targets during 2023
through 2028.

Based on the terms of the underlying contracts, the maximum amount that could be
paid from contingent cash obligations associated with the acquisitions of
Carlyle Aviation Partners and Abingworth as of December 31, 2022 is $226.4
million versus amounts recognized on the balance sheet of $76.5 million.

Risk Retention Rules

  We will continue to comply with the risk retention rules governing CLOs issued
in Europe for which we are a sponsor, which require a combination of capital
from our balance sheet, commitments from senior Carlyle professionals, and/or
third party financing. For additional information related to the U.S. Risk
Retention Rules, see Part I. Item 1A. "Risk Factors-Risks Related to Regulation
and Litigation-Financial regulations and changes thereto in the United States
could adversely affect our business and the possibility of increased regulatory
focus could result in additional burdens and expenses on our business."

Guarantees

See Note 10 to the consolidated financial statements included in this Annual
Report on Form 10-K for information related to our material guarantees.

Indemnifications

In many of our service contracts, we agree to indemnify the third-party service
provider under certain circumstances. The terms of the indemnities vary from
contract to contract, and the amount of indemnification liability, if any,
cannot be
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determined and has not been included in the table above or recorded in our
consolidated financial statements as of December 31, 2022.

See Note 10 to the consolidated financial statements included in this Annual
Report on Form 10-K for information related to indemnifications.

Contingent Obligations (Giveback)

  Carried interest is ultimately realized when: (1) an underlying investment is
profitably disposed of, (2) certain costs borne by the limited partner investors
have been reimbursed, (3) the fund's cumulative returns are in excess of the
preferred return and (4) we have decided to collect carry rather than return
additional capital to limited partner investors. Realized carried interest may
be required to be returned by us in future periods if the fund's investment
values decline below certain levels. For example, during the year ended December
31, 2022, we realized a giveback obligation of $10.7 million related to carried
interest previously realized in Carlyle Strategic Partners III, of which $5.9
million was attributable to the Company. When the fair value of a fund's
investments remains constant or falls below certain return hurdles, previously
recognized performance allocations are reversed. See Note 10 to the consolidated
financial statements included in this Annual Report on Form 10-K for additional
information related to our contingent obligations (giveback).

Other Contingencies

In the ordinary course of business, we are a party to litigation,
investigations, inquiries, employment-related matters, disputes and other
potential claims. We discuss certain of these matters in Note 10 to the
consolidated financial statements included in this Annual Report on Form 10-K.

Carlyle Common Stock and Carlyle Holdings Partnership Units

Rollforwards of shares of our common stock outstanding for the years ended
December 31, 2022 and 2021 are as follows:

                            Shares as of December 31,            Shares                 Shares                Shares               Shares Repurchased /          Shares as of December 31,
                                      2021                       Issued                Forfeited             Exchanged                   Retired                           2022
The Carlyle Group Inc.
common shares                        355,367,876               11,857,133                    -                     -                      (4,926,359)                     362,298,650



                            Shares as of December 31,            Shares                Shares                Shares               Shares Repurchased /          Shares as of December 31,
                                      2020                       Issued               Forfeited             Exchanged                   Retired                           2021
The Carlyle Group Inc.
common shares                        353,520,576               5,114,394                    -                     -                      (3,267,094)                     355,367,876


The Carlyle Group Inc. common stock issued during the period presented in the
tables above relate to the vesting of the Company's restricted stock units,
shares issued pursuant to a program under which we may distribute realized
performance allocation related compensation in fully vested, newly issued shares
(see Note 15 to the accompanying consolidated financial statements), 4.2 million
and 0.6 million shares issued as part of the purchase price consideration in the
CBAM and Abingworth transactions during the year ended December 31, 2022 (see
Note 4 to the accompanying consolidated financial statements), and shares issued
and delivered in connection with our equity method investment in NGP during the
years ended December 31, 2022 and 2021.

The Carlyle Group Inc. common stock repurchased during the period presented in
the tables above relate to shares repurchased during the years ended December
31, 2022 and 2021 and subsequently retired as part of our stock repurchase
programs.

The total shares as of December 31, 2022 as shown above exclude approximately
1.9 million net shares of common stock in connection with the vesting of
restricted stock units subsequent to December 31, 2022 that will participate in
the common stockholder dividend that will be paid on March 1, 2023.

Critical Accounting Policies and Estimates

The preparation of our consolidated financial statements in conformity with U.S.
GAAP requires our management to make estimates and judgments that affect the
reported amounts of assets and liabilities, revenues and expenses, and related

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disclosures of contingent assets and liabilities. These estimates and judgments
are based on historical information, information currently available to us and
on various other assumptions management believes to be reasonable under the
circumstances. Actual results could vary from those estimates and we may change
our estimates and assumptions in future evaluations. Changes in these estimates
and assumptions may have a material effect on our results of operations and
financial condition. We believe the critical accounting policies discussed below
affect our more significant judgments and estimates used in the preparation of
our consolidated financial statements and should be read in conjunction with our
consolidated financial statements and related notes included in this report.

Basis of Accounting. The Company's financial statements are prepared in
accordance with U.S. GAAP. Management has determined that the Company's Funds
are investment companies under U.S. GAAP for the purposes of financial
reporting. U.S. GAAP for an investment company requires investments to be
recorded at estimated fair value and the unrealized gains and/or losses in an
investment's fair value are recognized on a current basis in the statements of
operations. Additionally, the Funds do not consolidate their majority-owned and
controlled investments (the "Portfolio Companies"). In the preparation of its
consolidated financial statements, the Company has retained the specialized
accounting for the Funds.

Principles of Consolidation. The Company consolidates all entities that it
controls either through a majority voting interest or as the primary beneficiary
of variable interest entities ("VIEs"). The Company describes the policies and
procedures it uses in evaluating whether an entity is consolidated in Note 3 to
the consolidated financial statements included in this Annual Report on Form
10-K. As part of its consolidation procedures, the Company evaluates: (1)
whether it holds a variable interest in an entity, (2) whether the entity is a
VIE, and (3) whether the Company's involvement would make it the primary
beneficiary.

•In evaluating whether the Company holds a variable interest, fees (including
management fees, incentive fees and performance allocations) that are customary
and commensurate with the level of services provided, and where the Company does
not hold other economic interests in the entity that would absorb more than an
insignificant amount of the expected losses or returns of the entity, are not
considered variable interests. The Company considers all economic interests,
including indirect interests, to determine if a fee is considered a variable
interest.

•For those entities where the Company holds a variable interest, the Company
determines whether each of these entities qualifies as a VIE and, if so, whether
or not the Company is the primary beneficiary. The assessment of whether the
entity is a VIE is generally performed qualitatively, which requires judgment.
These judgments include: (a) determining whether the equity investment at risk
is sufficient to permit the entity to finance its activities without additional
subordinated financial support, (b) evaluating whether the equity holders, as a
group, can make decisions that have a significant effect on the economic
performance of the entity, (c) determining whether two or more parties' equity
interests should be aggregated, and (d) determining whether the equity investors
have proportionate voting rights to their obligations to absorb losses or rights
to receive returns from an entity.

•For entities that are determined to be VIEs, the Company consolidates those
entities where it has concluded it is the primary beneficiary. The primary
beneficiary is defined as the variable interest holder with (a) the power to
direct the activities of a VIE that most significantly impact the entity's
economic performance and (b) the obligation to absorb losses of the entity or
the right to receive benefits from the entity that could potentially be
significant to the VIE. In evaluating whether the Company is the primary
beneficiary, the Company evaluates its economic interests in the entity held
either directly or indirectly by the Company.

Changes to these judgments could result in a change in the consolidation
conclusion for a legal entity.

Entities that do not qualify as VIEs are generally assessed for consolidation as
voting interest entities. Under the voting interest entity model, the Company
consolidates those entities it controls through a majority voting interest.

Performance Allocations. As of December 31, 2022, we had performance allocations
of $7.1 billion. Performance allocations consist of the allocation of profits
from certain of the funds to which the Company is entitled (commonly known as
carried interest). The Company is generally entitled to a 20% allocation (which
can vary by fund) of the net realized income or gain as a carried interest after
returning the invested capital, the allocation of preferred returns and return
of certain fund costs (generally subject to catch-up provisions as set forth in
the fund limited partnership agreement). Carried interest is ultimately realized
when: (i) an underlying investment is profitably disposed of, (ii) certain costs
borne by the limited partner investors have been reimbursed, (iii) the fund's
cumulative returns are in excess of the preferred return and (iv) the Company
has decided to collect carry rather than return additional capital to limited
partner investors.
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Carried interest is recognized upon appreciation of the funds' investment values
above certain return hurdles set forth in each respective partnership agreement,
the Company recognizes revenues attributable to performance allocations based
upon the amount that would be due pursuant to the fund partnership agreement at
each period end as if the funds were terminated at that date. Accordingly, the
amount recognized as investment income related to performance allocations
reflects the Company's share of the gains and losses of the associated funds'
underlying investments measured at their then-current fair values relative to
the fair values as of the end of the prior period. Because of the inherent
uncertainty in measuring the fair value of investments in the absence of
observable market prices as discussed below, these estimated values may differ
significantly from the values that would have been used had a ready market for
the investments existed, and it is reasonably possible that the difference could
be material. If, at December 31, 2022, all of the investments held by the
Company's funds were deemed worthless, a possibility that management views as
remote, the amount of realized and distributed carried interest subject to
potential giveback would be $1.5 billion, on an after-tax basis where
applicable, of which approximately $0.7 billion would be the responsibility of
current and former senior Carlyle professionals.

See Note 3 to the consolidated financial statements included in this Annual
Report on Form 10-K for information related to performance allocations for
various fund types, preferred return hurdle rates, the timing of performance
allocation recognition in investment income, and the potential for performance
allocation income reversal.

Performance Allocation Related Compensation. As of December 31, 2022, we had
accrued performance allocations and incentive fee-related compensation of $3.6
billion. A portion of the performance allocations earned is due to employees and
advisers of the Company. These amounts are accounted for as compensation expense
in conjunction with the recognition of the related performance allocation
revenue and, until paid, are recognized as a component of the accrued
compensation and benefits liability. Accordingly, upon a reversal of performance
allocation revenue, the related compensation expense, if any, is also reversed.

Income Taxes. The Carlyle Group Inc.is a corporation for U.S. federal income tax
purposes and thus is subject to U.S. federal (and state and local) corporate
income taxes. Based on applicable federal, foreign, state and local tax laws,
the Company records a provision for income taxes for certain entities. Tax
positions taken by the Company are subject to periodic audit by U.S. federal,
state, local and foreign taxing authorities.

  As of December 31, 2022, we had gross deferred tax assets of $1.4 billion. The
Company accounts for income taxes using the asset and liability method, which
requires the recognition of deferred tax assets and liabilities for the expected
future consequences of events that have been included in the financial
statements or tax returns. A valuation allowance is recorded on the Company's
gross deferred tax assets when it is "more likely than not" that such asset will
not be realized. When evaluating the realizability of the Company's deferred tax
assets, all evidence, both positive and negative, is evaluated. As of
December 31, 2022, we recorded a valuation allowance of $56.7 million on our
gross deferred tax assets. Items considered in this analysis include the ability
to carry back losses, the reversal of temporary differences, tax planning
strategies, and expectations of future earnings. Lastly, the Company accounts
for the tax on global intangible low-taxed income ("GILTI") as incurred and
therefore has not recorded deferred taxes related to GILTI on its foreign
subsidiaries. Changes in judgment as it relates to the realizability of these
assets, as well as potential changes in corporate tax rates would have the
effect of significantly reducing the value of the deferred tax assets.

  Under U.S. GAAP for income taxes, the amount of tax benefit to be recognized
is the amount of benefit that is "more likely than not" to be sustained upon
examination. The Company analyzes its tax filing positions in all of the U.S.
federal, state, local and foreign tax jurisdictions where it is required to file
income tax returns, as well as for all open tax years in these jurisdictions.
If, based on this analysis, the Company determines that uncertainties in tax
positions exist, a liability is established, which is included in accounts
payable, accrued expenses and other liabilities in the consolidated financial
statements. The Company recognizes accrued interest and penalties related to
unrecognized tax positions in the provision for income taxes. If recognized, the
entire amount of unrecognized tax positions would be recorded as a reduction in
the provision for income taxes. As of December 31, 2022, we had unrecognized tax
benefits of $39.3 million, which if recognized would result in a reduction in
the provision for income taxes of $27.1 million.

Fair Value Measurement. In the absence of observable market prices, the Company
values its investments and its funds' investments using valuation methodologies
applied on a consistent basis. For some investments little market activity may
exist. Management's determination of fair value is then based on the best
information available in the circumstances and may incorporate management's own
assumptions and involves a significant degree of judgment, taking into
consideration a combination of internal and external factors, including the
appropriate risk adjustments for non-performance and liquidity risks.
Investments for which market prices are not observable include private
investments in the equity of operating companies and real estate properties, and
certain debt positions. The valuation technique for each of these investments is
described in Note 3 to the consolidated financial statements included in this
Annual Report on Form 10-K.
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Valuations of the funds' investments are used in the calculation of accrued
performance allocations, discussed above. The valuation methodologies can
involve subjective judgments, and the fair value of assets established pursuant
to such methodologies may be incorrect, which could result in the misstatement
of fund performance and accrued performance allocations. Because there is
significant uncertainty in the valuation of, or in the stability of the value
of, illiquid investments, the fair values of such investments as reflected in an
investment fund's net asset value do not necessarily reflect the prices that
would be obtained by us on behalf of the investment fund when such investments
are realized. Realizations at values significantly lower than the values at
which investments have been reflected in prior fund net asset values would
result in reduced earnings or losses for the applicable fund, the loss of
potential performance allocations and incentive fees. Changes in values
attributed to investments from quarter to quarter may result in volatility in
the net asset values and results of operations that we report from period to
period. Also, a situation where asset values turn out to be materially different
than values reflected in prior fund net asset values could cause investors to
lose confidence in us, which could in turn result in difficulty in raising
additional funds. See Part I. Item 1A. "Risk Factors-Risks Related to Our
Business Operations-Risks Related to the Assets We Manage-Valuation
methodologies for certain assets in our funds can involve subjective judgments,
and the fair value of assets established pursuant to such methodologies may be
incorrect, which could result in the misstatement of fund performance and
accrued performance allocations."

Principal Equity-Method Investments. The Company accounts for all investments in
which it has or is otherwise presumed to have significant influence, including
investments in the unconsolidated funds and strategic investments, using the
equity method of accounting. The carrying value of equity-method investments is
determined based on amounts invested by the Company, adjusted for the equity in
earnings or losses of the investee allocated based on the respective partnership
or other agreement, less distributions received. The Company evaluates its
equity-method investments for impairment whenever events or changes in
circumstances indicate that the carrying amounts of such investments may not be
recoverable.

Our equity-method investment in NGP entitles us to 55% of the management
fee-related revenue of the NGP entities that serve as advisors to the NGP Energy
Funds and is subject to impairment under the U.S. GAAP accounting for equity
method investments. We evaluate our equity method investment in NGP for
impairment whenever events or changes in circumstances indicate that the
carrying amount of the investment may not be recoverable, but no less than
quarterly. For example, challenges with fundraising or lower future management
fees could cause an impairment of our investment in NGP in the future. As of
December 31, 2022, we continue to believe that our investment in NGP is not
impaired.

Equity-based Compensation. During the year ended December 31, 2022, we
recognized $154.0 million in equity-based compensation expense. Compensation
expense relating to the issuance of equity-based awards to Carlyle employees is
measured at fair value on the grant date. In determining the aggregate fair
value of any award grants, we make judgments as to the grant-date fair value,
particularly the discount related to awards that do not participate in dividends
during the vesting period. A decrease in the discount would result in an
increase in equity-based compensation expense.

Intangible Assets and Goodwill. The Company's intangible assets consist of
acquired contractual rights to earn future fee income, including management and
advisory fees, customer relationships, and acquired trademarks. We allocate the
fair value of purchase consideration to the tangible assets acquired,
liabilities assumed, and intangible assets acquired based on their estimated
fair values. The excess of the fair value of purchase consideration over the
fair value of these identifiable assets and liabilities is recorded as goodwill.
These valuations require management to make significant judgements, assumptions
and estimates. The allocation of purchase consideration to identifiable assets
and liabilities affects our amortization expense, as acquired finite-lived
intangible assets are amortized over their estimated useful lives, whereas
goodwill is not amortized.

As of December 31, 2022, we had intangible assets, net of accumulated
amortization, of $897.8 million, including $103.9 million of goodwill. Our
finite-lived intangible assets have estimated useful lives which range from four
to eight years, and are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of the asset may not be
recoverable.

Goodwill represents the excess of cost over the identifiable net assets of
businesses acquired and is recorded in the functional currency of the acquired
entity. Goodwill is recognized as an asset and is reviewed for impairment
annually as of October 1 and between annual tests when events and circumstances
indicate that impairment may have occurred.

Impairment testing requires the assessment of both qualitative and quantitative
factors, including, but not limited to whether there has been a significant or
adverse change in the business climate that could affect the value of an asset
and/or significant or adverse changes in cash flow projections or earnings
forecasts. These assessments require management to make judgements, assumptions
and estimates. As of December 31, 2022, we continue to believe our intangible
assets and goodwill are not impaired.

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Recent Accounting Pronouncements

We discuss recent accounting pronouncements in Note 3 to the consolidated
financial statements included in this Annual Report on Form 10-K.