Document


 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
 
 
 
 
FORM 8-K
 
 
 
 
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 1, 2018
 
 
 
 
 
The Carlyle Group L.P.
(Exact name of registrant as specified in its charter)
 
 
 
 
 

 
 
 
 
 
Delaware
 
001-35538
 
45-2832612
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
 
1001 Pennsylvania Avenue, NW
Washington, D.C.
 
20004-2505
(Address of Principal Executive Offices)
 
(Zip Code)
(202) 729-5626
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 
 
 
 
 






Item 2.02
Results of Operations and Financial Condition.
On May 1, 2018, The Carlyle Group L.P. issued a summary press release and a detailed earnings presentation announcing financial results for its first quarter ended March 31, 2018. The summary press release and the earnings presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Report.
As provided in General Instruction B.2 of Form 8-K, the information in this Item 2.02 and Exhibits 99.1 and 99.2 incorporated in this Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall such information or Exhibits 99.1 and 99.2 be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01
Financial Statements and Exhibits.
(d)
Exhibits.
 
 
 
Exhibit No.
  
Description
 
 
99.1
  
 
 
99.2
  
 
 
 







SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
THE CARLYLE GROUP L.P.
 
 
 
 
 
 
 
 
By:
 
Carlyle Group Management L.L.C.,
 
 
 
 
 
 
its general partner
 
 
 
 
Date: May 1, 2018
 
 
 
By:
 
/s/ Curtis L. Buser
 
 
 
 
Name:
 
Curtis L. Buser
 
 
 
 
Title:
 
Chief Financial Officer





Exhibit


Exhibit 99.1
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=5 

The Carlyle Group Announces First Quarter 2018 Financial Results
Washington, DC, May 1, 2018 – Global alternative asset manager The Carlyle Group L.P. (NASDAQ: CG) today reported its unaudited results for the first quarter ended March 31, 2018.

Carlyle Co-CEOs Kewsong Lee and Glenn Youngkin said, “Carlyle is off to a strong start in 2018. We are benefiting from robust fundraising activity that is driving increased scale in our fund platforms and we remain on track to generate significantly higher Fee Related Earnings by the fourth quarter of 2018. Fund performance remains solid with first quarter carry fund appreciation of 3% substantially exceeding volatile public markets.”
 
U.S. GAAP results for Q1 2018 included income before provision for income taxes of $126 million, and net income attributable to The Carlyle Group L.P. common unitholders of $34 million, or net income per common unit of $0.30, on a diluted basis. U.S. GAAP results for the twelve months ended March 31, 2018 included income before provision for income taxes of $930 million and net income attributable to The Carlyle Group L.P. common unitholders of $189 million. Total balance sheet assets were $13 billion as of March 31, 2018.

In addition to this release, Carlyle issued a full detailed presentation of its first quarter 2018 results, which can be viewed on the investor relations section of our website at ir.carlyle.com.
Distributions
The Board of Directors has declared a quarterly distribution of $0.27 per common unit to holders of record at the close of business on May 11, 2018, payable on May 17, 2018.

The Board of Directors has declared a quarterly distribution of $0.367188 per preferred unit to preferred unitholders of record at the close of business on June 1, 2018, payable on June 15, 2018.
Conference Call
Carlyle will host a conference call at 8:30 a.m. EDT on Tuesday, May 1, 2018, to announce its first quarter 2018 financial results. The call may be accessed by dialing +1 (800) 850-2903 (U.S.) or +1 (253) 237-1169 (international) and referencing “The Carlyle Group Financial Results Call.” The conference call will be webcast simultaneously via a link on Carlyle’s investor relations website at ir.carlyle.com and an archived replay of the webcast also will be available on the website soon after the live call.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $201 billion of assets under management across 324 investment vehicles as of March 31, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,575 people in 31 offices across six continents.

Page | 1



Forward Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, contingencies, our distribution policy, and other non-historical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements including, but not limited to, those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 15, 2018, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.
This release does not constitute an offer for any Carlyle fund.
Contacts:
Public Market Investor Relations
  
Media
Daniel Harris
  
Elizabeth Gill
Phone: +1 (212) 813-4527
  
Phone: +1 (202) 729-5385
daniel.harris@carlyle.com
  
elizabeth.gill@carlyle.com
 
 
Web: www.carlyle.com
  
 
Videos: www.youtube.com/onecarlyle
  
 
Tweets: www.twitter.com/onecarlyle
  
 
Podcasts: www.carlyle.com/about-carlyle/market-commentary

Page | 2
Exhibit


Exhibit 99.2

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=4

For Immediate Release
May 1, 2018

The Carlyle Group Announces First Quarter 2018 Financial Results

U.S. GAAP results included net income attributable to The Carlyle Group L.P. common unitholders of $34 million, or $0.30 per common unit on a diluted basis, for Q1 2018

Economic Income of $169 million on a pre-tax basis and Economic Net Income of $0.47 per Adjusted Unit on a post-tax basis in Q1 2018, driven by 3% carry fund portfolio appreciation

Distributable Earnings of $139 million on a pre-tax basis for Q1 2018 and $0.36 per common unit on a post-tax basis in Q1 2018

Declared a quarterly distribution of $0.27 per common unit for Q1 2018

Net accrued performance revenues of $1.8 billion as of Q1 2018, up 4% from year end 2017

$5.6 billion in realized proceeds in Q1 2018 and $28.0 billion realized over the last twelve months
$4.0 billion of invested capital in Q1 2018 and $21.6 billion invested over the last twelve months
$7.7 billion in capital raised in Q1 2018 and $48.0 billion raised over the last twelve months
Washington, DC – Global alternative asset manager The Carlyle Group L.P. (NASDAQ: CG) today reported its unaudited results for the first quarter ended March 31, 2018.

Carlyle Co-CEOs Kewsong Lee and Glenn Youngkin said, “Carlyle is off to a strong start in 2018. We are benefiting from robust fundraising activity that is driving increased scale in our fund platforms and we remain on track to generate significantly higher Fee Related Earnings by the fourth quarter of 2018. Fund performance remains solid with first quarter carry fund appreciation of 3% substantially exceeding volatile public markets.”
 
U.S. GAAP results for Q1 2018 included income before provision for income taxes of $126 million, and net income attributable to The Carlyle Group L.P. common unitholders of $34 million, or net income per common unit of $0.30, on a diluted basis. U.S. GAAP results for the twelve months ended March 31, 2018 included income before provision for income taxes of $930 million and net income attributable to The Carlyle Group L.P. common unitholders of $189 million. Total balance sheet assets were $13 billion as of March 31, 2018.







Page | 1




New U.S. GAAP Guidance for Revenue Recognition
Effective January 1, 2018, Carlyle adopted new U.S. GAAP revenue recognition guidance and implemented a change in accounting principle related to performance allocations (commonly known as “performance fees” or “carried interest”). This resulted in no material change to Carlyle’s GAAP or non-GAAP earnings. In connection with the adoption and change in accounting principle, Carlyle now accounts for performance allocations under the GAAP guidance for equity method investments, presents performance allocations as a component of investment income, and presents certain incentive fee arrangements separately in our results. All prior periods have been conformed for these changes.

Distributions
The Board of Directors has declared a quarterly distribution of $0.27 per common unit to holders of record at the close of business on May 11, 2018, payable on May 17, 2018.

The Board of Directors has declared a quarterly distribution of $0.367188 per preferred unit to preferred unitholders of record at the close of business on June 1, 2018, payable on June 15, 2018.
Distribution Policy
It is Carlyle’s intention to cause Carlyle Holdings to make quarterly distributions to its partners, including The Carlyle Group L.P.’s wholly owned subsidiaries, that will enable The Carlyle Group L.P. to pay a quarterly distribution of approximately 75% of Distributable Earnings Attributable to Common Unitholders for the quarter. Carlyle’s general partner may adjust the distribution for amounts determined to be necessary or appropriate to provide for the conduct of its business, to make appropriate investments in its business and its funds or to comply with applicable law or any of its financing agreements, or to provide for future cash requirements such as tax-related payments, clawback obligations and distributions to unitholders for any ensuing quarter. The amount to be distributed could also be adjusted upward in any one quarter. The declaration and payment of any distributions is at the sole discretion of Carlyle’s general partner, which may change or eliminate the distribution policy at any time.

Page | 2




Carlyle Consolidated GAAP Results
 
The Carlyle Group L.P.
Summary U.S. GAAP Condensed Consolidated Statements of Operations (Unaudited)
 
 
Three Months Ended           
 
LTM
 
 
Mar 31, 2017 *
Jun 30, 2017 *
Sep 30, 2017 *
Dec 31, 2017 *
Mar 31,
2018
 
Mar 31,
2018
 
 
(Dollars in millions, except per unit data)
 
 
 
Revenues
 
 
 
 
 
 
 
 
Fund management fees
 
$
246.3

$
238.8

$
262.5

$
279.3

$
264.5

 
$
1,045.1

Incentive fees
 
5.6

11.1

10.4

8.2

6.3

 
36.0

Investment income, including performance allocations
 
722.3

591.5

312.4

664.4

362.2

 
1,930.5

Revenue from consolidated entities
 
135.5

5.6

44.7

45.1

47.3

 
142.7

All other revenues
 
10.4

61.4

9.9

10.8

22.5

 
104.6

Total revenues
 
1,120.1

908.4

639.9

1,007.8

702.8

 
3,258.9

 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
Base compensation
 
146.0

151.0

174.1

181.6

187.3

 
694.0

Equity-based compensation
 
72.8

88.0

81.0

78.5

84.9

 
332.4

Performance allocations and incentive fee related compensation
 
317.1

257.1

137.6

276.5

158.0

 
829.2

General, administrative and other expenses
 
93.8

95.8

(18.7
)
105.9

95.0

 
278.0

Expenses from consolidated entities and loss on deconsolidation of Urbplan
 
164.8

96.9

101.7

36.7

35.9

 
271.2

Interest and other non-operating expenses (income)
 
15.0

16.6

16.9

(54.4
)
18.2

 
(2.7
)
Total expenses
 
809.5

705.4

492.6

624.8

579.3

 
2,402.1

 
 
 
 
 
 
 
 
 
Net investment gains of consolidated funds
 
17.1

40.7

18.6

12.0

2.0

 
73.3

Income before provision for income taxes
 
327.7

243.7

165.9

395.0

125.5

 
930.1

Provision (benefit) for income taxes
 
5.8

13.2

(1.3
)
107.2

7.8

 
126.9

Net income
 
321.9

230.5

167.2

287.8

117.7

 
803.2

Net income attributable to non-controlling interests in consolidated entities
 
3.3

16.5

27.6

25.1

11.0

 
80.2

Net income attributable to Carlyle Holdings
 
318.6

214.0

139.6

262.7

106.7

 
723.0

Net income attributable to non-controlling interests in Carlyle Holdings
 
235.6

156.4

95.0

203.8

67.0

 
522.2

Net income attributable to The Carlyle Group L.P.
 
83.0

57.6

44.6

58.9

39.7

 
200.8

Net income attributable to Series A Preferred Unitholders
 



6.0

5.9

 
11.9

Net income attributable to The Carlyle Group L.P. Common Unitholders
 
$
83.0

$
57.6

$
44.6

$
52.9

33.8

 
$
188.9

 
 
 
 
 
 
 
 
 
Net income attributable to The Carlyle Group L.P. per common unit
 
 
 
 
 
 
 
 
   Basic
 
$
0.97

$
0.65

$
0.47

$
0.53

$
0.34

 
$
1.97

   Diluted
 
$
0.90

$
0.59

$
0.43

$
0.49

$
0.30

 
$
1.80

 
 
 
 
 
 
 
 
 
* Amounts included in "Incentive fees" and "Investment income, including performance allocations" have been reclassified in accordance with our adoption of ASU 2014-9, Revenue from Contracts with Customers (Topic 606), and our change in accounting principle related to performance allocations (commonly known as "performance fees" or "carried interest") implemented on January 1, 2018.

Income before provision for income taxes(1) was $126 million for Q1 2018, compared to $328 million for Q1 2017. The decrease in income before provision for income taxes in Q1 2018 compared to Q1 2017 was primarily due to a $201 million decrease in investment income, including performance allocations, net of performance allocations and incentive fee related compensation.

Net income attributable to The Carlyle Group L.P. Common Unitholders was $34 million, or $0.30 per common unit on a diluted basis for Q1 2018, compared to $83 million, or $0.90 per common unit on a diluted basis for Q1 2017.

(1) Income before provision for income taxes is the GAAP measure that is most directly comparable to both Economic Income (EI) and Distributable Earnings, both of which management uses to measure the performance of the business.  In most periods, income before provision for income taxes will be lower than EI principally due to excluding from EI equity compensation from awards issued in conjunction with the initial public offering, acquisitions and strategic investments, as well as other acquisition-related charges, including amortization of intangibles and impairment, corporate actions, and infrequently occurring or unusual events.  In periods of positive earnings, net income attributable to The Carlyle Group L.P. Common Unitholders typically will be lower than EI as net income attributable to The Carlyle Group L.P. Common Unitholders only includes the portion of earnings (approximately 30% before taxes as of March 31, 2018) that is attributable to the public unitholders whereas the calculation of EI reflects the adjusted earnings attributable to all unitholders.  A full reconciliation is included on page 34. See "Non-GAAP Financial Information and Other Key Terms" for additional information.



Page | 3




Non-GAAP Operating Results

Carlyle Group Summary ($ in millions, except unit and per unit amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LTM
 
% Change    
$ in millions, except per unit data and where noted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2017
 
Q2 2017
 
Q3 2017
 
Q4 2017
 
Q1 2018
 
Q2 17 - Q1 18
 
QoQ  
 
YoY
 
LTM
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Economic Income
 
$
400.1

 
$
300.1

 
$
202.7

 
$
366.4

 
$
169.0

 
$1,038.2
 
(54)%
 
(58)%
 
68%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fee-Related Earnings
 
37.1

 
20.2

 
108.0

 
26.7

 
28.2

 
183.1
 
6%
 
(24)%
 
665%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Performance Revenues
 
394.1

 
299.4

 
147.0

 
337.3

 
160.0

 
943.7
 
(53)%
 
(59)%
 
32%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Net Performance Revenues
 
35.3

 
182.1

 
216.9

 
118.3

 
103.1

 
620.4
 
(13)%
 
192%
 
5%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributable Earnings
 
55.4

 
198.9

 
259.9

 
155.8

 
138.9

 
753.5
 
(11)%
 
151%
 
30%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Economic Income, Tax and Per Unit Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Economic Income
 
$
400.1

 
$
300.1

 
$
202.7

 
$
366.4

 
$
169.0

 
$
1,038.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less (Add): Provision (Benefit) for income taxes (1)
 
35.5

 
25.3

 
10.4

 
13.2

 
2.1

 
51.0

 
 
 
 
 
 
Less: Preferred unit distributions
 

 

 

 
6.0

 
5.9

 
11.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Economic Net Income (after taxes)
 
$
364.6

 
$
274.8

 
$
192.3

 
$
347.2

 
$
161.0

 
$
975.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Adjusted Units (in millions)
 
333.7

 
337.5

 
342.8

 
343.5

 
345.9

(2)
342.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Economic Net Income (after taxes and preferred
   unit distributions) per Adjusted Unit
 
$
1.09

 
$
0.81

 
$
0.56

 
$
1.01

 
$
0.47

 
$
2.85

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributable Earnings, Tax and Per Unit Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributable Earnings
 
$
55.4

 
$
198.9

 
$
259.9

 
$
155.8

 
$
138.9

 
$
753.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: Estimated foreign, state, and local taxes (3)
 
6.8

 
5.6

 
5.4

 
5.0

 
7.7

 
23.7

 
 
 
 
 
 
Less: Preferred unit distributions
 

 

 

 
6.0

 
5.9

 
11.9

 
 
 
 
 
 
 
 


 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
Distributable Earnings (after taxes and preferred unit
   distributions)
 
$
48.6

 
$
193.3

 
$
254.5

 
$
144.8

 
$
125.3

 
$
717.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocating Distributable Earnings for only public unitholders of The Carlyle Group L.P.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributable Earnings to The Carlyle Group L.P.
 
$
13.0

 
$
55.6

 
$
74.7

 
$
43.3

 
$
38.5

 
$
212.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: Estimated current corporate income taxes (4)
 
1.5

 
1.8

 
1.4

 
(0.5
)
 
1.1

 
3.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributable Earnings Attributable to Common
   Unitholders
 
$
11.5

 
$
53.8

 
$
73.3

 
$
43.8

 
$
37.4

 
$
208.3

 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Units in public float (in millions)
 
88.1

 
96.2

 
98.3

 
100.5

 
103.7

(5)
98.7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distributable Earnings, net, per The Carlyle Group L.P. common unit outstanding
 
$
0.13

 
$
0.56

 
$
0.75

 
$
0.44

 
$
0.36

 
$
2.11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution per common unit
 
$
0.10

 
$
0.42

 
$
0.56

 
$
0.33

 
$
0.27

 
$
1.58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: Totals may not sum due to rounding. 

(1) Represents the implied provision for income taxes that was calculated using a similar methodology as that used in calculating the provision for income taxes for The Carlyle Group L.P., without any reduction for non-controlling interests and without the impact of the Tax Cuts and Jobs Act of 2017.
(2) For information regarding our calculation of Adjusted Units as of March 31, 2018, please see page 35.
(3) Represents the implied provision for current income taxes that was calculated using a similar methodology as that used in calculating the provision for current income taxes for The Carlyle Group L.P., without any reduction for non-controlling interests.
(4) Represents current corporate income taxes payable on Distributable Earnings allocated to Carlyle Holdings I GP Inc. and estimated current Tax Receivable Agreement payments owed.
(5) Includes 2,346,751 common units that will be issued in May 2018 in connection with the vesting of deferred restricted common units. For purposes of this calculation, these common units have been added to the common units outstanding as of March 31, 2018 because they will participate in the unitholder distribution that will be paid on the common units in May 2018.



Page | 4



Carry Fund Appreciation and Net Accrued Performance Revenues
Carlyle's carry fund portfolio appreciated 3% during Q1 2018 and 17% over the past twelve months. Carlyle's private carry fund portfolio appreciated 4% and the public carry fund portfolio remained flat during Q1 2018, in both cases excluding Investment Solutions. As of March 31, public positions accounted for 14% of remaining fair value in our Corporate Private Equity, Real Assets and Global Credit carry funds. Carry fund valuations for Q1 2018 were positively impacted by strength in our Europe Buyout (CEP III and IV), U.S. Buyout (CP V and VI), Europe Technology (CETP III), and in U.S. Real Estate (CRP VII) and in the NGP Energy (NGP XI) funds, among others. Funds with high concentrations of public positions negatively impacted overall portfolio performance. The Net Accrued Performance Revenues balance increased 4% during the quarter to $1.8 billion, and increased 25% over the LTM.
 
 
 
 
LTM
 
Net Accrued
Performance Revenues
Fund Valuations ($ in millions)
 
Q1 2017
 
Q2 2017
 
Q3 2017
 
Q4 2017
 
Q1 2018
 
Q2 2017 - Q1 2018
 
Q1 2018
Overall Carry Fund Appreciation/(Depreciation) (1)
 
6%
 
5%
 
3%
 
5%
 
3%
 
17%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Private Equity (2)
 
9%
 
8%
 
4%
 
8%
 
4%
 
25%
 
$1,189
Buyout
 
9%
 
9%
 
3%
 
8%
 
4%
 
26%
 
$1,143
Growth Capital
 
7%
 
4%
 
6%
 
6%
 
2%
 
18%
 
$47
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Assets (2)
 
5%
 
6%
 
2%
 
4%
 
2%
 
14%
 
$485
Real Estate
 
5%
 
6%
 
3%
 
3%
 
1%
 
12%
 
$303
Natural Resources (3)
 
7%
 
6%
 
5%
 
8%
 
2%
 
23%
 
$198
Legacy Energy
 
3%
 
4%
 
(3)%
 
2%
 
2%
 
5%
 
$(16)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Global Credit Carry Funds (2)
 
7%
 
0%
 
0%
 
1%
 
2%
 
5%
 
$29
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Solutions Carry Funds (2)
 
3%
 
1%
 
3%
 
3%
 
4%
 
10%
 
$87
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Accrued Performance Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
$1,790
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=12

Note: The sum of quarters may not equal LTM.
(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. Fund only, does not include co-investment.
(2) We generally earn performance revenues from our carry funds representing a 20% allocation of profits generated on third-party capital, and on which the general partner receives a special residual allocation of income from limited partners, which we refer to as performance allocations, or carried interest, in the event that specified investment returns are achieved by the fund. Disclosures referring to carry funds also include the impact of certain commitments that do not earn carried interest, but are either part of, or associated with our carry funds. The rate of carried interest, as well as the share of carried interest allocated to Carlyle, may vary across the carry fund platform. See "Non-GAAP Financial Information and Other Key Terms" for more information.
(3) Natural Resources is comprised of NGP, infrastructure, power and international energy funds.
(4) Other primarily reflects the impact of foreign exchange translation.


Page | 5



Carlyle All Segment Results

Economic Income was $169 million in Q1 2018, driven by 3% carry fund appreciation in the quarter. Economic Income for the LTM of $1.0 billion increased 68% compared to the prior LTM, supported by 17% appreciation in our carry funds.
Distributable Earnings of $139 million in Q1 2018 were more than double Q1 2017, and included $28 million in Fee Related Earnings and $103 million in realized net performance revenues. We expect full year 2018 realized net performance revenues to be lower than full year 2017. DE per common unit was $0.36 for Q1 2018.
Fee Related Earnings were $28 million in Q1 2018. Q1 2018 management fees of $288 million increased 12% versus Q1 2017 as Fee Earning Assets Under Management increased. Q1 2018 fundraising expenses were $19 million compared to $7 million in Q1 2017, and are included in indirect compensation expense for our internal costs and in general and administrative expenses for our external costs.
Total Assets Under Management (AUM) of $201.5 billion increased 24% compared to Q1 2017 through a combination of $48.0 billion in fundraising and $15.4 billion in market appreciation, partially offset by $28.0 billion in realized proceeds to fund investors.
Fee-Earning AUM of $125.8 billion increased 9% from Q1 2017. As of Q1 2018, there was $27.1 billion in pending Fee-Earning AUM that will turn on fees either through the activation of the underlying fund or additional capital deployment.
Business Drivers
 
 
 
 
 
 
 
 
 
 
$ in billions, unless noted
 
Q1 2017
 
Q1 2018
 
Prior LTM
 
LTM
 
 
 
 
 
 
 
 
 
 
Fundraising
 
$3.0
 
$7.7
 
$11.1
 
$48.0
 
 
 
 
 
 
 
 
 
 
Invested Capital1
 
4.4
 
4.0
 
17.1
 
21.6
 
 
 
 
 
 
 
 
 
 
Realized Proceeds1
 
3.6
 
5.6
 
28.5
 
28.0
 
 
 
 
 
 
 
 
 
 
Carry Fund Appreciation1
 
6%
 
3%
 
18%
 
17%
 
 
 
 
 
 
 
 
 
 
Financial Metrics
 
 
 
 
 
 
 
 
 
 
$ in millions
 
Q1 2017
 
Q1 2018
 
Prior LTM
 
LTM
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings (FRE)
 
$37
 
$28
 
$7
 
$183
 
 
 
 
 
 
 
 
 
 
+
Realized Net Performance Revenues
 
35
 
103
 
591
 
620
 
 
 
 
 
 
 
 
 
 
+
Realized Principal Investment Income/(Loss)
 
(5)
 
19
 
32
 
(2)
 
 
 
 
 
 
 
 
 
 
+
Net Interest
 
(12)
 
(11)
 
(51)
 
(48)
 
 
 
 
 
 
 
 
 
 
=
Distributable Earnings (DE)
 
$55
 
$139
 
$579
 
$754
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings (FRE)
 
$37
 
$28
 
$7
 
$183
 
 
 
 
 
 
 
 
 
 
+
Net Performance Revenues
 
394
 
160
 
713
 
944
 
 
 
 
 
 
 
 
 
 
+
Principal Investment Income/(Loss)
 
11
 
30
 
67
 
66
 
 
 
 
 
 
 
 
 
 
Equity-based Compensation
 
30
 
38
 
118
 
132
 
 
 
 
 
 
 
 
 
 
Net Interest
 
12
 
11
 
51
 
48
 
 
 
 
 
 
 
 
 
 
Other2
 
 
 
 
(25)
 
 
 
 
 
 
 
 
 
 
=
Economic Income
 
$400
 
$169
 
$618
 
$1,038
 
 
 
 
 
 
 
 
 
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=8
Note: LTM, or last twelve months, refers to the period Q2 2017 through Q1 2018. Prior LTM, or the prior rolling 12-month period, refers to the period Q2 2016 through Q1 2017.
(1) For carry funds only.
(2) Includes a $(25) million reduction to the reserve for ongoing litigation and contingencies taken in Q3 2017, which was allocated to the segments in the following manner: Corporate Private Equity ($(13) million), Real Assets ($(6) million), Global Credit ($(4) million) and Investment Solutions ($(2) million).

Page | 6



Corporate Private Equity (CPE)

Corporate Private Equity carry funds appreciated 4% in the quarter, driving Net Performance Revenues of $136 million.
Economic Income was $114 million in Q1 2018 and $696 million for the LTM, an increase of 37% over the prior LTM.
Fee Related Earnings were $(13) million in Q1 2018, with the loss primarily attributable to an increase in compensation costs in advance of the activation of management fees on $22 billion in pending Fee Earning Assets Under Management. We expect to activate fees on our latest vintage U.S. Buyout fund (CP VII) later in Q2 2018, and fees on our latest vintage Asia Buyout fund (CAP V) in the second half of 2018. In addition, there were $9 million of fundraising expenses in Q1 2018 that impacted results, compared to $1 million in Q1 2017.
Distributable Earnings of $87 million in Q1 2018 reflected $97 million in Realized Net Performance Revenues, $8 million in Realized Principal Investment Income and the $(13) million loss in Fee Related Earnings. Realizations of $2.7 billion in Q1 2018 were more than double the level in Q1 2017. Realized Net Performance Revenues of $97 million increased versus Q1 2017 on a higher level of realizations.
Invested $0.7 billion in Q1 2018 into 15 new and follow-on investments. As of the end of Q1 2018, CPE had announced $4.6 billion of new investments that are expected to close over the next few quarters. During the first quarter, notable new completed transactions in CPE included DiscoverOrg (CP VI) and CFGI (FIG III).
Assets Under Management reached a record $75.0 billion and increased 42% compared to Q1 2017, positively impacted by $24.3 billion in fundraising, $8.5 billion in market appreciation, and partially offset by $12.7 billion in realized proceeds.

Business Drivers
 
 
 
 
 
 
 
 
 
$ in billions, unless noted
 
Q1 2017
 
Q1 2018
 
Prior LTM
 
LTM
 
 
 
 
 
 
 
 
 
Fundraising
 
$0.2
 
$3.9
 
$0.8
 
$24.3
 
 
 
 
 
 
 
 
 
Invested Capital1
 
2.5
 
0.7
 
7.1
 
9.3
 
 
 
 
 
 
 
 
 
Realized Proceeds1
 
1.1
 
2.7
 
13.5
 
12.7
 
 
 
 
 
 
 
 
 
Carry Fund Appreciation1
 
9%
 
4%
 
18%
 
25%
 
 
 
 
 
 
 
 
 
Financial Metrics
 
 
 
 
 
 
 
 
 
$ in millions
 
Q1 2017
 
Q1 2018
 
Prior LTM
 
LTM
 
 
 
 
 
 
 
 
 
Fund Management Fees
 
$116
 
$114
 
$487
 
$469
 
 
 
 
 
 
 
 
 
Realized Net Performance Revenues
 
25
 
97
 
546
 
531
Net Performance Revenues
 
313
 
136
 
447
 
701
 
 
 
 
 
 
 
 
 
Realized Principal Investment Income
 
 
8
 
56
 
33
Principal Investment Income
 
6
 
15
 
57
 
72
 
 
 
 
 
 
 
 
 
Fee Related Earnings (FRE)
 
$16
 
$(13)
 
$93
 
$(3)
 
 
 
 
 
 
 
 
 
Distributable Earnings (DE)
 
$35
 
$87
 
$670
 
$539
 
 
 
 
 
 
 
 
 
Economic Income
 
$313
 
$114
 
$505
 
$696
 
 
 
 
 
 
 
 
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=6

(1) For carry funds only.
Note: Totals may not sum due to rounding.


Page | 7



Real Assets

Real Assets carry funds appreciated 2% in the quarter, driving Net Performance Revenues of $11 million.
Economic Income was $31 million in Q1 2018 and $187 million for the LTM, driven by strong appreciation as well as growth in Fee Related Earnings. During the quarter, recent vintage U.S. Real Estate funds posted solid performance, while older vintage funds with exposure to public markets depreciated. Our latest vintage International Energy and the NGP energy carry funds both posted strong appreciation in Q1 2018.
Fee Related Earnings were $24 million in Q1 2018, nearly triple the $9 million in Q1 2017 as Fund Management Fees increased 33% due to new capital raised, primarily in the latest vintage U.S. Real Estate and NGP carry funds.
Distributable Earnings were $33 million in Q1 2018 and $54 million in the LTM. Realized Net Performance Revenues were $4 million in Q1 2018. While realized proceeds of $1.1 billion in Q1 2018 were higher than $0.6 billion in the prior year, we did not realize carry on exits in several newer vintage carry funds.
Invested $1.9 billion in the quarter, more than double the amount of Q1 2017. During Q1 2018, Natural Resources invested a record $1.4 billion while Real Estate invested $0.5 billion.
Assets Under Management of $44.0 billion increased 24% compared to Q1 2017, largely driven by $10.5 billion in fundraising and $2.9 billion in market appreciation, partially offset by $5.0 billion in realized proceeds. Fundraising of $1.3 billion in Q1 2018 included closes in the latest vintage NGP carry fund and co-investment vehicle, U.S. Real Estate carry funds and the new European Real Estate carry fund.

Business Drivers
 
 
 
 
 
 
 
 
 
$ in billions, unless noted
 
Q1 2017
 
Q1 2018
 
Prior LTM
 
LTM
 
 
 
 
 
 
 
 
 
Fundraising
 
$1.0
 
$1.3
 
$2.0
 
$10.5
 
 
 
 
 
 
 
 
 
Invested Capital1
 
0.7
 
1.9
 
5.2
 
5.6
 
 
 
 
 
 
 
 
 
Realized Proceeds1
 
0.6
 
1.1
 
5.4
 
5.0
 
 
 
 
 
 
 
 
 
Carry Fund Appreciation1
 
5%
 
2%
 
23%
 
14%
 
 
 
 
 
 
 
 
 
Financial Metrics
 
 
 
 
 
 
 
 
 
$ in millions
 
Q1 2017
 
Q1 2018
 
Prior LTM
 
LTM
 
 
 
 
 
 
 
 
 
Fund Management Fees
 
$56
 
$74
 
$242
 
$282
 
 
 
 
 
 
 
 
 
Realized Net Performance Revenues
 
7
 
4
 
21
 
48
Net Performance Revenues
 
66
 
11
 
220
 
188
 
 
 
 
 
 
 
 
 
Realized Principal Investment Income/(Loss)
 
(8)
 
8
 
(31)
 
(47)
Principal Investment Income/(Loss)
 
(3)
 
9
 
(20)
 
(25)
 
 
 
 
 
 
 
 
 
Fee Related Earnings (FRE)
 
$9
 
$24
 
$57
 
$67
 
 
 
 
 
 
 
 
 
Distributable Earnings (DE)
 
$4
 
$33
 
$33
 
$54
 
 
 
 
 
 
 
 
 
Economic Income
 
$59
 
$31
 
$214
 
$187
 
 
 
 
 
 
 
 
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=13

(1) For carry funds only.
Note: Totals may not sum due to rounding.


Page | 8



Global Credit

Economic Income was $8 million in Q1 2018 and $99 million for the LTM. Global Credit carry funds appreciated 2% in the quarter and 5% for LTM 2018.
Fee Related Earnings were $9 million in Q1 2018 and $88 million for the LTM. Q1 2018 Fund Management Fees of $59 million increased 22% year over year on higher Fee-Earning AUM.
Distributable Earnings of $10 million in Q1 2018 included Fee Related Earnings and $1 million of Realized Net Performance Revenue from our carry funds.
Invested $0.4 billion in Global Credit carry funds in the quarter and $2.2 billion for the LTM. Direct lending originated gross new loans of approximately $350 million in the quarter and approximately $2.0 billion for the LTM. Our structured credit team raised CLO par value of $0.7 billion in the quarter and $4.9 billion for the LTM.
Assets Under Management of $33.8 billion increased 15% compared to Q1 2017, largely driven by $7.1 billion of fundraising and $0.9 billion from the positive impact of foreign exchange translation, and was partially offset by $0.7 billion in realized proceeds. Q1 2018 fundraising of $0.8 billion included one new CLO and several CLO resets, as well as additional capital raised for our Direct Lending business. Fee-Earning AUM of $27.8 billion increased 14% compared to Q1 2017.

Business Drivers
 
 
 
 
 
 
 
 
 
$ in billions, unless noted
 
Q1 2017
 
Q1 2018
 
Prior LTM
 
LTM
 
 
 
 
 
 
 
 
 
Fundraising
 
$0.4
 
$0.8
 
$4.4
 
$7.1
 
 
 
 
 
 
 
 
 
Invested Capital1
 
0.3
 
0.4
 
0.9
 
2.2
 
 
 
 
 
 
 
 
 
Realized Proceeds1
 
0.1
 
0.2
 
0.5
 
0.7
 
 
 
 
 
 
 
 
 
Carry Fund Appreciation1
 
7%
 
2%
 
8%
 
5%
 
 
 
 
 
 
 
 
 
Financial Metrics
 
 
 
 
 
 
 
 
 
$ in millions
 
Q1 2017
 
Q1 2018
 
Prior LTM
 
LTM
 
 
 
 
 
 
 
 
 
Fund Management Fees
 
$48
 
$59
 
$193
 
$202
 
 
 
 
 
 
 
 
 
Realized Net Performance Revenues
 
3
 
1
 
21
 
38
Net Performance Revenues
 
11
 
2
 
28
 
23
 
 
 
 
 
 
 
 
 
Realized Principal Investment Income
 
2
 
3
 
7
 
12
Principal Investment Income
 
7
 
5
 
28
 
15
 
 
 
 
 
 
 
 
 
Fee Related Earnings (FRE)
 
$4
 
$9
 
$(172)
 
$88
 
 
 
 
 
 
 
 
 
Distributable Earnings (DE)
 
$8
 
$10
 
$(150)
 
$129
 
 
 
 
 
 
 
 
 
Economic Income
 
$15
 
$8
 
$(138)
 
$99
 
 
 
 
 
 
 
 
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=10


(1) For carry funds only.
Note: Totals may not sum due to rounding.

Page | 9



Investment Solutions

Investment Solutions carry funds appreciated 4% in the quarter. Excluding the impact of foreign exchange translation, Investment Solutions carry funds appreciated 5% in Q1 2018 and 20% over the LTM.
Economic Income was $16 million in Q1 2018 and $56 million for the LTM. Fund appreciation drove record quarterly Net Performance Revenues of $11 million in Q1 2018. Net accrued performance revenue of $87 million increased 85% compared to Q1 2017 due to strong underlying fund performance as well as an increasing share of AlpInvest performance revenues that are now accruing to Carlyle's benefit as funds launched since our acquisition of AlpInvest in 2011 are increasingly moving into accrued carry.
Fee Related Earnings were $8 million in Q1 2018 and were $31 million over the LTM. Fund Management Fees in Q1 2018 increased 13% as Fee-Earning AUM increased 16% compared to Q1 2017.
Distributable Earnings were $9 million in Q1 2018 and $31 million for the LTM, with LTM Distributable Earnings up 21% compared to the prior LTM.
Invested $1.0 billion in Investment Solutions carry funds during Q1 2018, slightly higher than Q1 2017.
Assets Under Management of $48.7 billion increased 11% compared to Q1 2017, largely attributable to $6.1 billion in fundraising, $3.9 billion in market appreciation and $4.8 billion from the positive impact of foreign exchange, and partially offset by $9.5 billion in realized proceeds. First quarter fundraising of $1.7 billion included closings in AlpInvest's primary and secondary funds and vehicles, and new commitments to Metropolitan Real Estate's primary and secondary funds vehicles. Fee-Earning AUM of $30.5 billion was up 16% compared to Q1 2017.
Business Drivers
 
 
 
 
 
 
 
 
 
$ in billions, unless noted
 
Q1 2017
 
Q1 2018
 
Prior LTM
 
LTM
 
 
 
 
 
 
 
 
 
Fundraising1
 
$1.4
 
$1.7
 
$3.9
 
$6.1
 
 
 
 
 
 
 
 
 
Invested Capital2
 
0.9
 
1.0
 
3.8
 
4.5
 
 
 
 
 
 
 
 
 
Realized Proceeds2
 
1.9
 
1.7
 
9.1
 
9.5
 
 
 
 
 
 
 
 
 
Carry Fund Appreciation2
 
3%
 
4%
 
15%
 
10%
 
 
 
 
 
 
 
 
 
Financial Metrics
 
 
 
 
 
 
 
 
 
$ in millions
 
Q1 2017
 
Q1 2018
 
Prior LTM
 
LTM
 
 
 
 
 
 
 
 
 
Fund Management Fees
 
$36
 
$40
 
$140
 
$159
 
 
 
 
 
 
 
 
 
Realized Net Performance Revenues
 
1
 
2
 
2
 
4
Net Performance Revenues
 
5
 
11
 
17
 
32
 
 
 
 
 
 
 
 
 
Realized Principal Investment Income/(Loss)
 
 
 
 
Principal Investment Income
 
1
 
1
 
2
 
4
 
 
 
 
 
 
 
 
 
Fee Related Earnings (FRE)
 
$9
 
$8
 
$28
 
$31
 
 
 
 
 
 
 
 
 
Distributable Earnings (DE)
 
$9
 
$9
 
$25
 
$31
 
 
 
 
 
 
 
 
 
Economic Income
 
$12
 
$16
 
$36
 
$56
 
 
 
 
 
 
 
 
 
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=15

(1) Fundraising excludes acquisitions.
(2) For carry funds only.
(3) Includes Mezzanine funds.

Note: Totals may not sum due to rounding.

Page | 10



Fund Activity Metrics ($ billions)
By Quarter
 
By Sub-segment
Fundraising
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=9
Invested Capital 1
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=11
Realized Proceeds 1
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=14

Note: Totals may not sum due to rounding.
(1) Invested Capital and Realized Proceeds reflect carry funds only.

Page | 11



Total Assets Under Management

Assets Under Management of $201 billion increased 24% compared to $162 billion in Q1 2017. The remaining fair value of $73 billion in our Corporate Private Equity, Real Assets and Global Credit carry funds was up 20% compared to Q1 2017.
 
 
 
vs. Last Quarter
 
vs. One Year Ago
$ in billions, unless noted
Q1 2018
 
Q4 2017
 
%
 
Q1 2017
 
%
 
 
 
 
 
 
 
 
 
 
Corporate Private Equity
75.0
 
72.6
 
3%
 
53.0
 
41%
Real Assets
44.0
 
42.9
 
3%
 
35.6
 
24%
Global Credit
33.8
 
33.3
 
1%
 
29.4
 
15%
Investment Solutions
48.7
 
46.3
 
5%
 
44.0
 
11%
Total
201.5
 
195.1
 
3%
 
161.9
 
24%
 
 
 
 
 
 
 
 
 
 

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=17

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=16

Note: Data as of March 31, 2018. Totals may not sum due to rounding. For definitions of AUM roll forward components, see footnotes on page 22.
(1) Primarily comprised of expiring dry powder, the impact of capital calls for fees and expenses and changes in gross asset value for our business development companies.
(2) Available capital refers to the amount of capital commitments available to be called for investments, which may be reduced for equity invested that is funded via fund credit facility and expected to be called from investors at a later date, plus any additional assets/liabilities at the fund level other than active investments. Amounts previously called may be added back to available capital following certain distributions.
(3) Remaining Fair Value reflects the unrealized carrying value of investments for all carry funds, related co-investment vehicles and separately managed accounts, the aggregate collateral balance of our CLOs and the gross asset value of our business development companies.
(4) The In-Carry Ratio represents percentage of Remaining Fair Value in an accrued carry position.
(5) Reflects the percentage of Remaining Fair Value attributable to investments originated in Q1 2014 or prior. Investments that include follow-on tranches are fully recognized based on the date of the initial investment activity.

Page | 12




Fee Earning Assets Under Management

Fee Earning Assets Under Management of $126 billion increased 9% from Q1 2017. This amount excludes the positive impact of pending Fee Earning Assets Under Management, which was $27 billion as of Q1 2018, up from $22 billion as of Q4 2017. A majority of current pending Fee-Earning AUM is expected to move into Fee-Earning AUM over the next several quarters.
 
 
 
vs. Last Quarter
 
vs. One Year Ago
$ in billions, unless noted
Q1 2018
 
Q4 2017
 
%
 
Q1 2017
 
%
 
 
 
 
 
 
 
 
 
 
Corporate Private Equity
35.3
 
35.6
 
(1)%
 
36.9
 
(4)%
Real Assets
32.1
 
31.6
 
2%
 
27.2
 
18%
Global Credit
27.8
 
27.3
 
2%
 
24.4
 
14%
Investment Solutions
30.5
 
30.2
 
1%
 
26.4
 
16%
Total
125.8
 
124.6
 
1%
 
114.9
 
9%
 
 
 
 
 
 
 
 
 
 

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12218653&doc=7

Note: As of March 31, 2018.

Balance Sheet Highlights
The amounts presented below exclude the effect of U.S. GAAP consolidation eliminations on investments and accrued performance revenues, as well as cash and debt associated with Carlyle’s consolidated funds. All data is as of March 31, 2018.
 
Cash and Cash Equivalents and Corporate Treasury Investments(1) of $1.4 billion.
On-balance sheet investments attributable to unitholders of $995 million(2), excluding the equity investment by Carlyle in NGP Energy Capital Management.
Net accrued performance revenues attributable to unitholders of $1.8 billion. These performance revenues are comprised of $3.7 billion of gross accrued performance revenues, less $0.1 billion in accrued giveback obligation and $1.8 billion in accrued performance allocations and incentive fee compensation and non-controlling interest.
Debt obligations, consisting of loans, senior notes, and promissory notes totaling $1.3 billion, exclusive of $0.3 billion of loans used to finance our investments in CLOs.
5.875% Series A Preferred Units totaling $387.5 million.


(1) Corporate Treasury 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.
(2) Included in our on-balance sheet investments is approximately $312 million of loans attributable to Carlyle Holdings used to finance our investments in CLOs.

Page | 13



Conference Call
Carlyle will host a conference call at 8:30 a.m. EDT on Tuesday, May 1, 2018, to announce its first quarter 2018 financial results. The call may be accessed by dialing +1 (800) 850-2903 (U.S.) or +1 (253) 237-1169 (international) and referencing “The Carlyle Group Financial Results Call.” The conference call will be webcast simultaneously via a link on Carlyle’s investor relations website a