Carlyle Group Inc. (CG) Business Profile

What it does

Carlyle is a global investment firm that raises and invests private capital on behalf of fund investors. Founded in 1987 and headquartered in Washington, D.C., it is led by Chief Executive Officer Harvey Schwartz. At December 31, 2025, Carlyle managed $477 billion in assets.

The firm operates through three businesses. Global Private Equity advises funds that buy companies or invest in growth businesses, real estate, infrastructure and natural resources. Global Credit manages investments ranging from loans to companies to aircraft finance and asset-backed lending. Carlyle AlpInvest helps clients build private equity portfolios by investing in funds, buying existing fund interests and investing alongside other managers.

Investors commit money to Carlyle’s funds and investment vehicles. Carlyle’s teams select and manage investments, while its investor-services staff handle functions such as reporting and fund administration. Depending on the product, investors may gain exposure to companies, loans, property or portfolios managed by other investment firms.

Carlyle also provides investment and advisory services to reinsurance companies through its insurance solutions business. Its capital markets operation arranges and places loans and securities for third parties and Carlyle portfolio companies. The firm had 770 investment professionals in 27 offices across four continents as of December 31, 2025.

How it makes money

Carlyle earns management fees under contracts with the funds it manages. It also earns transaction advisory and oversight fees from portfolio companies. Funds typically pay a performance fee, also called carried interest or a performance allocation, when they achieve specified investment returns. Performance allocations are generally realized when an investment is sold profitably and the fund’s cumulative returns exceed its preferred return; some funds must first return invested capital and expenses to investors.

The three segments generate fees from different products. Global Private Equity advises buyout, growth, real estate and other funds. Global Credit advises credit vehicles and provides insurance and capital markets services. Carlyle AlpInvest manages fund investments, secondary purchases and co-investments. In capital markets, Carlyle can earn underwriting, placement, structuring and syndication fees, as well as other compensation.

Fee-earning assets are not the same as total assets under management. At December 31, 2025, fee-earning assets were $101.4 billion in Global Private Equity, $169.5 billion in Global Credit and $66.0 billion in Carlyle AlpInvest. Management fees have largely covered Carlyle’s operating costs. Performance-related income depends on investment results and the timing of realizations.

Capital inflows were $53.7 billion in 2025 and $13 billion in the first quarter of 2026. Fund management fees were $545 million in the first quarter of 2026. Carlyle generated $12 billion of realized proceeds in that quarter, but most exits were in funds not yet realizing carried interest, notably CP VII and CP VIII. Carlyle expects to continue returning capital from CP VII for at least the next several quarters before it starts realizing carry from that fund.

Customers and how it sells

Carlyle serves fund investors seeking exposure to private equity, credit, real estate and other private assets. Its clients include institutional investors and individuals investing through wealth products. Carlyle also offers separately managed credit accounts tailored to individual investors’ needs, as well as investment and advisory services to reinsurance companies.

At December 31, 2025, Carlyle served more than 3,200 active carry fund investors from 87 countries. Its investment professionals worked in 27 offices across four continents. Private equity teams invest in local markets, while AlpInvest makes co-investments across Europe, North America and Asia. Carlyle’s real estate funds invest in the U.S. and Europe.

CP VII accounted for 24.0% of revenue in FY2025. In the first quarter of 2026, CP VII returned nearly $5 billion of proceeds to its investors. Carlyle also uses wealth vehicles, including CAPM and CAPS, to reach investors. Its CTAC interval fund and ETAC semi-liquid European fund invest across its credit platform.

The firm’s investor-services group supports investors through reporting and works with investment teams from fund formation through liquidation. Carlyle’s ability to distribute funds in the European Union varies by country.

Suppliers and costs

Carlyle’s business is investment management rather than manufacturing. Its operating needs include compensation, compliance, technology and other corporate services. Investment teams draw on fund management, accounting, legal, human resources, tax and external affairs support across the firm. Carlyle also uses independent operating executives and advisers for activities such as deal sourcing, due diligence and portfolio-company advice.

Management fees have largely covered operating costs. Realized performance allocations are available for distribution to stockholders after related compensation is covered. Carlyle also uses cash to fund investments in its funds, service debt, pay taxes, support growth and return capital to shareholders.

Approximately 97% of capital commitments to Carlyle’s funds are provided by fund investors. Carlyle, its senior professionals, advisers and other professionals typically fund the remainder. Carlyle may invest additional amounts in funds focused on new investment areas.

Competitive position

Carlyle competes for investors, investment opportunities and employees with regional and global investment firms, banks and other financial institutions. It does not identify individual competitors by name. Competition for investors depends on factors including investment performance, relationships, service, reputation, pricing and the appeal of each opportunity.

In private equity, Carlyle competes with other sponsors, sovereign wealth funds and strategic buyers. In credit, competitors include private credit strategies, business development companies, other collateralized loan obligation issuers, infrastructure lenders and aircraft lessors. AlpInvest competes with other fund-of-funds managers and investment advisers, as well as institutions making direct and secondary investments themselves.

Carlyle uses local investment teams, industry specialists and relationships to source and evaluate opportunities. Its private equity teams also draw on operating advisers and data from portfolio companies. AlpInvest’s network of private equity managers helps it identify opportunities and assess fund portfolios. The firm offers products across its three segments, including customized investment accounts.

Our reading: Carlyle’s global network and industry resources provide a meaningful sourcing advantage, but local firms can have more established relationships in their own markets. Our reading: Its range of products and investor relationships supports distribution, though competition on performance, pricing and service limits how much those relationships alone can protect the business.

Growth opportunities

Carlyle’s growth plans span fundraising, credit, private wealth and AlpInvest. In 2025, assets under management grew 8% to $477 billion, supported by $53.7 billion of inflows. Global Credit assets rose 10% year-over-year to $211 billion, while AlpInvest assets rose 20% year-over-year to $102 billion. The firm deployed $54.5 billion across its platform during 2025.

Carlyle raised over $7 billion in its evergreen wealth products during 2025. In the first quarter of 2026, AlpInvest attracted nearly $7 billion, while Global Credit raised $4 billion. Carlyle held a first close on a new closed-end asset-backed finance strategy; the strategy then topped $12 billion.

Carlyle also secured a $5 billion commitment for its next U.S. buyout fund through a solution combining buyout access with portfolio-finance and secondary capabilities. The firm had not yet launched fundraising for that fund. Carlyle announced an $8 billion carve-out of BASF’s coatings business and a $3 billion acquisition of MAI Capital Management; it expected both transactions to close in the coming months.

Carlyle expects to reach or exceed its goals of $200 billion of inflows, $1.9 billion in fee-related earnings and $6 or more per share in distributable earnings by the end of 2028.

Structural risks

• Markets and fundraising: Adverse economic or market conditions can reduce the value or performance of fund investments and impair fundraising, reducing revenue, earnings and cash flow. Lower investor portfolio values or distributions can leave less capital available for new fund commitments.
• Realizations and performance fees: Market volatility can reduce the value of assets Carlyle plans to sell and its accrued performance revenues. The timing of carry is difficult to predict for AlpInvest, and some funds must return capital and expenses before performance allocations are realized.
• Competition: Some competitors have more resources, a lower cost of capital or access to funding sources unavailable to Carlyle. Others may accept lower returns or bid more aggressively for investments. Institutions developing their own investment capabilities may also reduce demand for fund-of-funds products.
• Regulation: European and UK rules govern fund marketing, investment services, capital, liquidity and remuneration. Failure to comply can result in sanctions or loss of market access; capital and liquidity requirements can increase costs or impede cash flows within the group.
• Redemptions: Carlyle expects the period of redemptions from its CTAC credit fund may persist for a while.

Bottom line

Our reading

Carlyle is a private-capital manager whose recurring fund fees are supplemented by transaction fees and performance income when investments meet return thresholds (item7). Its breadth across private equity, credit and AlpInvest provides several fundraising channels, but realizations and market conditions affect performance income and investors’ capacity to commit new money (item1, item1a). CP VII’s revenue contribution also makes one fund important to the current revenue base (customer.cp_vii.share.fy2025).