Carlyle Group Inc.CG
Carlyle Group Inc. Fair Value Disclosure
3. Fair Value Measurement
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the
fair value hierarchy levels as disclosed in Note 2, Summary of Significant Accounting Policies, as of December 31, 2025:
(Dollars in millions) | Level I | Level II | Level III | Total | |||
Assets | |||||||
Investments of Consolidated Funds(1): | |||||||
Equity securities(2) | $132.0 | $18.2 | $1,094.8 | $1,245.0 | |||
Bonds | — | — | 691.2 | 691.2 | |||
Loans | — | — | 9,249.8 | 9,249.8 | |||
132.0 | 18.2 | 11,035.8 | 11,186.0 | ||||
Investments in CLOs and other: | |||||||
Investments in CLOs | — | — | 349.0 | 349.0 | |||
Other investments(3) | 112.0 | 20.9 | 94.6 | 227.5 | |||
112.0 | 20.9 | 443.6 | 576.5 | ||||
Foreign currency forward contracts | — | 4.8 | — | 4.8 | |||
Subtotal | $244.0 | $43.9 | $11,479.4 | $11,767.3 | |||
Investments measured at net asset value | 1,340.6 | ||||||
Total | $13,107.9 | ||||||
Liabilities | |||||||
Loans payable of Consolidated Funds(4)(5) | $— | $— | $9,423.1 | $9,423.1 | |||
Foreign currency forward contracts | — | 4.4 | — | 4.4 | |||
Total | $— | $4.4 | $9,423.1 | $9,427.5 | |||
(1)This balance excludes $1.3 billion of Investments of Consolidated Funds that are included in Investments measured at net asset
value, which relate to certain consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.
(2)This balance includes $989.4 million related to investments that have been bridged by the Company to investment funds and are
accounted for as consolidated VIEs as of December 31, 2025. The Company’s subsidiary, which is accounted for as a consolidated
VIE, has entered into warehouse agreements with certain funds to transfer certain of these investments at a price agreed upon by the
parties, which may differ from fair value.
(3)The Level III balance excludes $63.0 million related to three corporate investments in equity securities which the Company has
elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to
ASC 321, Investments–Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is
excluded from the tabular Level III rollforward disclosures.
(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial
assets, less (i) the fair value of any beneficial interest held by the Company and (ii) the carrying value of any beneficial interests that
represent compensation for services.
(5)Loans payable of Consolidated Funds balance excludes $939.9 million of senior notes measured at amortized cost and a
$63.0 million revolving credit balance, which relate to certain consolidated investment fund of funds in the Company’s Carlyle
AlpInvest segment.
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the
above fair value hierarchy levels as of December 31, 2024:
(Dollars in millions) | Level I | Level II | Level III | Total | |||
Assets | (Dollars in millions) | ||||||
Investments of Consolidated Funds(1): | |||||||
Equity securities(2) | $— | $— | $572.0 | $572.0 | |||
Bonds | — | — | 465.1 | 465.1 | |||
Loans | — | — | 6,431.4 | 6,431.4 | |||
Other | — | 1.3 | — | 1.3 | |||
— | 1.3 | 7,468.5 | 7,469.8 | ||||
Investments in CLOs and other: | |||||||
Investments in CLOs | — | — | 378.9 | 378.9 | |||
Other investments(3) | 40.4 | 21.5 | 85.1 | 147.0 | |||
40.4 | 21.5 | 464.0 | 525.9 | ||||
Subtotal | $40.4 | $22.8 | $7,932.5 | $7,995.7 | |||
Investments measured at net asset value | 320.7 | ||||||
Total | $8,316.4 | ||||||
Liabilities | |||||||
Loans payable of Consolidated Funds(4)(5) | $— | $— | $6,809.1 | $6,809.1 | |||
Foreign currency forward contracts | — | 0.6 | — | 0.6 | |||
Total | $— | $0.6 | $6,809.1 | $6,809.7 | |||
(1)This balance excludes $312.6 million of Investments of Consolidated Funds that are included in Investments measured at net asset
value, which relate to certain consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.
(2)This balance includes $441.9 million related to investments that have been bridged by the Company to investment funds and are
accounted for as consolidated VIEs as of December 31, 2024.
(3)The Level III balance excludes $55.4 million related to three corporate investments in equity securities which the Company has
elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to
ASC 321, Investments–Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is
excluded from the tabular Level III rollforward disclosures.
(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial
assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests
that represent compensation for services.
(5)Loans payable of Consolidated Funds balance excludes a $55.1 million revolving credit balance, which related to certain
consolidated investment fund of funds in the Company’s Carlyle AlpInvest segment.
The changes in financial instruments measured at fair value for which the Company has used Level III inputs to
determine fair value are as follows (Dollars in millions):
Financial Assets Year Ended December 31, 2025 | |||||||||||
Investments of Consolidated Funds | Investments in CLOs | Total | |||||||||
Equity securities | Bonds | Loans | Other investments | ||||||||
Balance, beginning of period | $572.0 | $465.1 | $6,431.4 | $378.9 | $85.1 | $7,932.5 | |||||
Initial consolidation/deconsolidation of funds(1) | — | (140.3) | (1,176.7) | 23.5 | — | (1,293.5) | |||||
Transfer out related to the Exchange(2) | — | — | — | — | (50.4) | (50.4) | |||||
Purchases | 672.8 | 664.2 | 9,434.7 | 32.4 | 147.1 | 10,951.2 | |||||
Sales and distributions | (88.7) | (356.1) | (4,145.0) | (131.8) | (89.4) | (4,811.0) | |||||
Settlements | — | (1.0) | (1,557.2) | — | — | (1,558.2) | |||||
Realized and unrealized gains (losses), net | |||||||||||
(61.3) | 5.2 | (102.8) | 22.4 | 2.2 | (134.3) | ||||||
— | 54.1 | 365.4 | 23.6 | — | 443.1 | ||||||
Balance, end of period | $1,094.8 | $691.2 | $9,249.8 | $349.0 | $94.6 | $11,479.4 | |||||
$(67.8) | $0.1 | $(83.7) | $22.3 | $1.6 | $(127.5) | ||||||
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date | $— | $21.2 | $184.0 | $24.2 | $— | $229.4 | |||||
Financial Assets Year Ended December 31, 2024 | |||||||||||
Investments of Consolidated Funds | Investments in CLOs | Total | |||||||||
Equity securities | Bonds | Loans | Other investments | ||||||||
Balance, beginning of period | $377.6 | $522.5 | $5,862.1 | $532.6 | $84.6 | $7,379.4 | |||||
Deconsolidation of funds(3) | — | (34.1) | (1,219.5) | 2.3 | — | (1,251.3) | |||||
Purchases | 199.5 | 335.3 | 6,867.6 | 4.0 | 36.5 | 7,442.9 | |||||
Sales and distributions | (11.7) | (343.4) | (3,090.3) | (184.4) | (10.0) | (3,639.8) | |||||
Settlements | — | (1.6) | (1,882.8) | — | — | (1,884.4) | |||||
Realized and unrealized gains (losses), net | |||||||||||
6.6 | 15.1 | 78.2 | 29.9 | (26.0) | 103.8 | ||||||
— | (28.7) | (183.9) | (5.5) | — | (218.1) | ||||||
Balance, end of period | $572.0 | $465.1 | $6,431.4 | $378.9 | $85.1 | $7,932.5 | |||||
$3.5 | $7.9 | $33.4 | $29.0 | $(29.0) | $44.8 | ||||||
Changes in unrealized gains (losses) included in other comprehensive income related to financial assets still held at the reporting date | $— | $(15.8) | $(115.7) | $(6.2) | $— | $(137.7) | |||||
(1)As a result of the initial consolidation of four funds and deconsolidation of two funds during the year ended December 31, 2025.
(2)Represents the exchange of the BDC Preferred Shares, which were valued using Level III inputs, for common shares of CGBD, which are valued using
Level I inputs. See Note 9, Related Party Transactions, for more information.
(3)As a result of the deconsolidation of four funds during the year ended December 31, 2024.
Financial Liabilities | |||
Loans Payable of Consolidated Funds | |||
Year Ended December 31, | |||
2025 | 2024 | ||
Balance, beginning of period | $6,809.1 | $6,298.6 | |
Initial consolidation/deconsolidation of funds(1) | (801.4) | (1,269.3) | |
Borrowings | 8,737.5 | 7,006.0 | |
Paydowns | (2,764.4) | (2,101.8) | |
Sales | (2,868.0) | (2,986.7) | |
Realized and unrealized (gains) losses, net | |||
Included in earnings | (99.2) | 72.0 | |
Included in other comprehensive income | 409.5 | (209.7) | |
Balance, end of period | $9,423.1 | $6,809.1 | |
$(91.8) | $86.4 | ||
Changes in unrealized (gains) losses included in other comprehensive income related to financial liabilities still held at the reporting date | $460.7 | $(254.2) | |
(1)As a result of the initial consolidation of four funds and deconsolidation of two funds during the year ended December 31, 2025 and the
deconsolidation of four funds during the year ended December 31, 2024, respectively.
Realized and unrealized gains and losses included in earnings for Level III investments for investments in CLOs and
other investments are included in investment income (loss), and such gains and losses for investments of Consolidated Funds
and loans payable of the Consolidated Funds are included in Net investment income of Consolidated Funds in the consolidated
statements of operations.
Gains and losses included in other comprehensive income for all Level III financial asset and liabilities are included in
accumulated other comprehensive loss and non-controlling interests in consolidated entities.
The following table summarizes quantitative information about the Company’s Level III inputs as of December 31,
2025:
Fair Value at | Range (Weighted Average) | Impact to Valuation from Increase in Input | |||||||
(Dollars in millions) | December 31, 2025 | Valuation Technique(s) | Unobservable Input(s) | ||||||
Assets | |||||||||
Investments of Consolidated Funds: | |||||||||
Equity securities | $1.4 | Consensus Pricing | Indicative Quotes ($ per share) | 0.00 - 20.38 (0.19) | Higher | ||||
789.2 | Discounted Cash Flow | Discount Rates | 7% - 19% (11%) | Lower | |||||
Terminal Growth Rate | 1% - 11% (4%) | Higher | |||||||
Comparable Multiple | EBITDA Multiple | 1.5x - 23.8x (12.0x) | Higher | ||||||
Revenue Multiple | 2.8x - 2.8x (2.8x) | Higher | |||||||
TCF Multiple | 22.3x - 22.3x (22.3x) | Higher | |||||||
112.3 | Discounted Cash Flow | Discount Rates | 7% - 20% (12%) | Lower | |||||
Constant Prepayment Rate | 6% - 16% (9%) | Lower | |||||||
Constant Default Rate | 0% - 6% (1%) | Lower | |||||||
Recovery Rate | 0% - 40% (21%) | Higher | |||||||
191.9 | Other(1) | N/A | N/A | N/A | |||||
Bonds | 691.2 | Consensus Pricing | Indicative Quotes (% of Par) | 12 - 106 (96) | Higher | ||||
Loans | 9,028.5 | Consensus Pricing | Indicative Quotes (% of Par) | 0 - 101 (98) | Higher | ||||
216.0 | Discounted Cash Flow | Discount Rates | 6% - 16% (9%) | Lower | |||||
3.5 | Discounted Cash Flow | Discount Rates | 14% - 14% (14%) | Lower | |||||
Constant Prepayment Rate | 8% - 14% (11%) | Lower | |||||||
Constant Default Rate | 2% - 2% (2%) | Lower | |||||||
1.8 | Other(1) | N/A | N/A | N/A | |||||
11,035.8 | |||||||||
Investments in CLOs | |||||||||
Senior secured notes | 303.3 | Consensus Pricing with Discounted Cash Flow | Indicative Quotes (% of Par) | 92 - 101 (100) | Higher | ||||
Discount Margins (Basis Points) | 80 - 1,060 (204) | Lower | |||||||
Default Rates | 2% - 2% (2%) | Lower | |||||||
Recovery Rates | 60% - 60% (60%) | Higher | |||||||
Subordinated notes and preferred shares | 45.7 | Consensus Pricing with Discounted Cash Flow | Indicative Quotes (% of Par) | 0 - 87 (38) | Higher | ||||
Discount Rates | 0% - 31% (10%) | Lower | |||||||
Default Rates | 1% - 2% (2%) | Lower | |||||||
Recovery Rates | 60% - 60% (60%) | Higher | |||||||
Other investments: | |||||||||
Aviation subordinated notes | 7.5 | Discounted Cash Flow | Discount Rates | 21% - 21% (21%) | Lower | ||||
Loans | 37.6 | Discounted Cash Flow | Discount Rates | 6% - 10% (9%) | Lower | ||||
Consensus Pricing | Indicative Quotes (% of Par) | 100 - 100 (100) | Higher | ||||||
49.5 | Other(1) | N/A | N/A | N/A | |||||
Total | $11,479.4 | ||||||||
Liabilities | |||||||||
Loans payable of Consolidated Funds: | |||||||||
Senior secured notes | $9,032.2 | Other(2) | N/A | N/A | N/A | ||||
Subordinated notes and preferred shares | 390.9 | Consensus Pricing with Discounted Cash Flow | Indicative Quotes (% of Par) | 10 - 84 (51) | Higher | ||||
Discount Rates | 5% - 24% (9%) | Lower | |||||||
Default Rates | 1% - 2% (2%) | Lower | |||||||
Recovery Rates | 60% - 60% (60%) | Higher | |||||||
Total | $9,423.1 |
(1)Fair value approximates transaction price that was in close proximity to the reporting date.
(2)Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,
less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent
compensation for services.
The following table summarizes quantitative information about the Company’s Level III inputs as of December 31,
2024:
Fair Value at | Range (Weighted Average) | Impact to Valuation from Increase in Input | |||||||
(Dollars in millions) | December 31, 2024 | Valuation Technique(s) | Unobservable Input(s) | ||||||
Assets | |||||||||
Investments of Consolidated Funds: | |||||||||
Equity securities | $3.9 | Consensus Pricing | Indicative Quotes ($ per share) | 0.00 - 112.17 (0.01) | Higher | ||||
485.0 | Discounted Cash Flow | Discount Rates | 10% - 13% (11%) | Lower | |||||
Terminal Growth Rate | 3% - 7% (6%) | Higher | |||||||
Comparable Multiple | EBITDA Multiple | 7.7x - 23.2x (12.8x) | Higher | ||||||
TCF Multiple | 26.0x - 26.0x (26.0x) | Higher | |||||||
38.2 | Discounted Cash Flow | Discount Rates | 14% - 34% (18%) | Lower | |||||
Constant Prepayment Rate | 6% - 16% (11%) | Lower | |||||||
Constant Default Rate | 1% - 4% (2%) | Lower | |||||||
Recovery Rate | 0% - 40% (17%) | Higher | |||||||
44.9 | Other(1) | N/A | N/A | N/A | |||||
Bonds | 465.1 | Consensus Pricing | Indicative Quotes (% of Par) | 30 - 103 (93) | Higher | ||||
Loans | 6,408.2 | Consensus Pricing | Indicative Quotes (% of Par) | 0 - 105 (97) | Higher | ||||
10.2 | Discounted Cash Flow | Discount Rates | 9% - 19% (18%) | Lower | |||||
6.4 | Discounted Cash Flow | Discount Rates | 16% - 16% (16%) | Lower | |||||
Constant Prepayment Rate | 8% - 14% (11%) | Lower | |||||||
Constant Default Rate | 1% - 1% (1%) | Lower | |||||||
Recovery Rate | 0% - 0% (0%) | Higher | |||||||
Other | 6.6 | Other(1) | N/A | N/A | N/A | ||||
7,468.5 | |||||||||
Investments in CLOs | |||||||||
Senior secured notes | 321.8 | Discounted Cash Flow with Consensus Pricing | Indicative Quotes (% of Par) | 80 - 101 (99) | Higher | ||||
Discount Margins (Basis Points) | 113 - 1,535 (214) | Lower | |||||||
Default Rates | 2% - 2% (2%) | Lower | |||||||
Recovery Rates | 60% - 60% (60%) | Higher | |||||||
Subordinated notes and preferred shares | 57.1 | Discounted Cash Flow with Consensus Pricing | Indicative Quotes (% of Par) | 1 - 103 (38) | Higher | ||||
Discount Rate | 4% - 35% (16%) | Lower | |||||||
Default Rates | 1% - 2% (2%) | Lower | |||||||
Recovery Rates | 60% - 60% (60%) | Higher | |||||||
Other investments: | |||||||||
BDC preferred shares | 53.4 | Other(2) | Net Asset Value per Share | 16.80 - 16.80 (16.80) | Lower | ||||
Aviation subordinated notes | 2.9 | Discounted Cash Flow | Discount Rates | 21% - 21% (21%) | Lower | ||||
Loans | 28.8 | Consensus Pricing | Indicative Quotes (% of Par) | 99 - 99 (99) | Higher | ||||
Total | $7,932.5 | ||||||||
Liabilities | |||||||||
Loans payable of Consolidated Funds: | |||||||||
Senior secured notes | $6,598.8 | Other(3) | N/A | N/A | N/A | ||||
Subordinated notes and preferred shares | 210.3 | Discounted Cash Flow with Consensus Pricing | Indicative Quotes (% of Par) | 11 - 87 (34) | Higher | ||||
Discount Rates | 2% - 35% (15%) | Lower | |||||||
Default Rates | 1% - 2% (2%) | Lower | |||||||
Recovery Rates | 60% - 60% (60%) | Higher | |||||||
Total | $6,809.1 |
(1)Fair value approximates transaction price that was in close proximity to the reporting date.
(2)See Note 9, Related Party Transactions, for more information.
(3)Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,
less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent
compensation for services.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 10, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 12, 2020 | |
| 2018 | Feb 13, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 24, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.