Carlyle Group Inc. (CG): Results of Operations and Financial Condition
Carlyle Group Inc. (CG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Page | 1 Exhibit 99.1 Carlyle Reports Second Quarter 2026 Financial Results Washington, D.C. and New York, NY – August 5, 2026 – The Carlyle Group Inc. (NASDAQ: CG) today reported its unau dited results for the second quarter ended June 30, 2026 . The full detailed presentation o
How this was made
The 30-second read
Why it matters
Traders can update models for fee-related earnings, distributable earnings, and investment-income volatility, and price in the declared $0.35 dividend and timing of the Aug 5 call.
Market read
The filing discloses concrete Q2 P&L figures, dividend terms, and specific drivers (fee growth, performance allocations, and unrealized infrastructure losses) that can drive near-term positioning.
What to watch
The filing notes a cumulative unrealized investment loss of about $222M expected to be realized later in 2026, which could pressure future earnings quality if dispositions underperform expectations.
Carlyle Reports Second Quarter 2026 Financial Results
Carlyle reported record Fee Related Earnings of $358 million, Distributable Earnings of $472 million, strong fundraising and realization activity, while total assets under management rose 4% year-over-year to $485 billion. GAAP net income attributable to common stockholders was lower year-over-year, reflecting a sharp decline in investment income including performance allocations and lower net performance revenues.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total RevenuesGAAP | $1,123.5 million | – | – |
| Fund management feesGAAP | $657.0 million | – | – |
| Incentive feesGAAP | $98.9 million | – | – |
| Investment income (loss), including performance allocationsGAAP | $113.9 million | – | – |
| Revenue from Consolidated FundsGAAP | $192.5 million | – | – |
| All other revenuesGAAP | $61.2 million | – | – |
| Total ExpensesGAAP | $875.9 million | – | – |
| Cash-based compensation and benefitsGAAP | $261.9 million | – | – |
| Equity-based compensationGAAP | $116.0 million | – | – |
| Performance allocations and incentive fee related compensationGAAP | $93.6 million | – | – |
| General, administrative and other expensesGAAP | $202.9 million | – | – |
| Expenses from Consolidated FundsGAAP | $163.3 million | – | – |
| Interest and other non-operating expensesGAAP | $38.2 million | – | – |
| Net investment income (loss) of Consolidated FundsGAAP | $26.2 million | – | – |
| Income (loss) before provision (benefit) for income taxesGAAP | $273.8 million | – | – |
| Margin on income (loss) before provision (benefit) for income taxesGAAP | 24.4% | – | – |
| Provision (benefit) for income taxesGAAP | $49.0 million | – | – |
| Effective tax rateGAAP | 17.9% | – | – |
| Net income (loss)GAAP | $224.8 million | – | – |
| Net income (loss) attributable to non-controlling interestsGAAP | $87.7 million | – | – |
| Net income (loss) attributable to The Carlyle Group Inc. Common StockholdersGAAP | $137.1 million | – | – |
| Net income (loss) attributable to The Carlyle Group Inc. per common share, basicGAAP | $0.38 | – | – |
| Net income (loss) attributable to The Carlyle Group Inc. per common share, dilutedGAAP | $0.37 | – | – |
| Net performance revenuesGAAP | $(48.9) million | – | – |
| Distributable Earningsnon-GAAP | $472 million | – | – |
| Distributable Earnings per common sharenon-GAAP | $1.07 per common share | – | – |
| Fee Related Earningsnon-GAAP | $358 million | – | – |
| Realized Net Performance Revenuesnon-GAAP | $115 million | – | – |
| Net Accrued Performance Revenuesnon-GAAP | $2.4 billion | – | – |
| Total Assets Under Managementother | $485 billion | – | up 4% year-over-year |
| Fee-earning Assets Under Managementother | $334 billion | – | up 3% year-over-year |
| Perpetual Capital Fee-earning AUMother | $113 billion | – | – |
| Pending Fee-earning AUMother | $28 billion | – | up 57% year-over-year |
| Available Capital for investmentother | $97 billion | – | up 10% year-over-year |
| Inflowsother | $16.8 billion | – | – |
| Deploymentother | $14.3 billion | – | – |
| Realized Proceeds (carry funds)other | $6.7 billion | – | – |
| Appreciation (carry funds)other | 3% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Total Segment ResultsTotal segment fee revenues were $759.3 million, realized performance revenues were $314.8 million, realized principal investment income was $22.6 million, and interest income was $15.5 million. | $1,112.2 million | – | – |
Capital returns
- Declared a quarterly dividend of $0.35 per common share to holders of record at the close of business on August 17, 2026, payable on August 26, 2026.
- Repurchased or withheld 6.7 million shares of common stock in Q2 2026, including shares withheld in the net share settlement of equity awards, totaling $304 million.
- As of June 30, 2026, $1.6 billion of repurchase capacity remained under the $2.0 billion repurchase authorization.
- Realized Proceeds (carry funds): $6.7 billion in Q2 2026 and $36.8 billion for the LTM.
What drove it
- Fund management fees increased in 2Q'26 compared to 2Q'25, driven by capital markets and transaction fees earned in connection with several large deals in the Global Private Equity segment.
- Investment income, including performance allocations, primarily reflected unrealized performance allocations in Global Credit credit opportunities and aviation strategies, Carlyle AlpInvest secondaries & portfolio finance, and Global Private Equity international energy.
- Inflows were $16.8 billion in Q2 2026, deployment was $14.3 billion, and appreciation in carry funds was 3%.
- Pending Fee-earning AUM was $28 billion, up 57% year-over-year.
Concerns
- Investment income (loss), including performance allocations, was $113.9 million, compared with $694.0 million in 2Q'25.
- Net performance revenues were $(48.9) million, compared with $195.2 million in 2Q'25.
- Net income attributable to The Carlyle Group Inc. Common Stockholders was $137.1 million, compared with $319.7 million in 2Q'25.
- Net investment income of Consolidated Funds included unrealized investment losses of approximately $47 million related to an investment in a consolidated infrastructure fund in Global Private Equity.
- Through June 30, 2026, the cumulative unrealized investment loss recognized with respect to this investment attributable to the Company was approximately $222 million; the Company currently expects disposition later in 2026.
- Equity-based compensation increased in 2Q'26 compared to 2Q'25, primarily driven by stock awards granted in December 2025 and February 2026.
What to watch
- Disposition later in 2026 of the consolidated infrastructure fund investment associated with approximately $222 million of cumulative unrealized investment loss attributable to the Company through June 30, 2026.
- Conversion of $28 billion of pending Fee-earning AUM into fee-earning assets.
- Realization activity and the progression of $2.4 billion of Net Accrued Performance Revenues.
- Fundraising, deployment, and carry-fund appreciation following $16.8 billion of inflows, $14.3 billion of deployment, and 3% appreciation in Q2 2026.
Balance sheet and cash flow
- Total Assets Under Management: $485 billion as of June 30, 2026.
- Fee-earning Assets Under Management: $334 billion as of June 30, 2026.
- Available Capital for investment: $97 billion as of June 30, 2026.
- Net Accrued Performance Revenues of $2.4 billion as of June 30, 2026.
Analysis
Carlyle characterized the second quarter as one of its strongest in recent years, supported by record Fee Related Earnings of $358 million and Distributable Earnings of $472 million, or $1.07 per common share on a post-tax basis. The firm reported $16.8 billion of quarterly inflows, $14.3 billion of deployment, $6.7 billion of realized proceeds from carry funds, and 3% appreciation in carry funds. Total assets under management reached $485 billion, up 4% year-over-year, while fee-earning AUM reached $334 billion, up 3% year-over-year.
The GAAP income statement was materially lower year-over-year. Total Revenues were $1,123.5 million versus $1,572.9 million, and net income attributable to common stockholders was $137.1 million versus $319.7 million. Investment income, including performance allocations, was $113.9 million versus $694.0 million, and net performance revenues were $(48.9) million versus $195.2 million. Income before provision for income taxes was $273.8 million, with a 24.4% margin, compared with $440.6 million and a 28.0% margin in 2Q'25.
Fee income and realized performance activity were constructive. Fund management fees rose to $657.0 million from $620.4 million, driven by capital markets and transaction fees associated with several large Global Private Equity deals. Incentive fees rose to $98.9 million from $40.5 million. Fund management fee growth was partly offset by a $13 million decrease in catch-up fund management fees from $24 million to $11 million, while 2Q'25 included $19 million of catch-up subordinated management fees from aviation funds.
The investment-income comparison reflects a lower unrealized performance-allocation contribution. In 2Q'26, investment income primarily reflected unrealized performance allocations in Global Credit credit opportunities and aviation, Carlyle AlpInvest secondaries & portfolio finance, and Global Private Equity international energy. These were partially offset by reversal of unrealized performance allocations in the seventh U.S. Buyout fund. Separately, consolidated-fund investment income included approximately $47 million of unrealized investment losses tied to a Global Private Equity infrastructure-fund investment.
Capital allocation included $304 million used to repurchase or withhold 6.7 million common shares, alongside a declared $0.35 per-common-share quarterly dividend. Carlyle retained $1.6 billion of capacity under its $2.0 billion repurchase authorization as of June 30, 2026. The filing provides no forward financial guidance. Attention centers on conversion of $28 billion of pending fee-earning AUM, realization activity, and the expected later-2026 disposition of the infrastructure-fund investment that had produced approximately $222 million of cumulative unrealized investment loss attributable to the Company through June 30, 2026.
Management, verbatim
The second quarter was one of Carlyle’s strongest quarters in recent years, underscoring the power of our diversified platform. We delivered record Fee Related Earnings, our highest Distributable Earnings in nearly four years, alongside strong fundraising, and exceptional realization activity. Carlyle continues to distinguish itself as an industry leader and an outlier in returning capital to our clients, distributing nearly $7 billion during the quarter and $37 billion over the past year. This performance reflects the disciplined execution of our strategy and the momentum we continue to build across the firm.
Harvey M. Schwartz, Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance
- Previous-period outlook for comparison
- GAAP operating income
- Gross margin
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Separate revenue results for Global Private Equity, Global Credit, and Carlyle AlpInvest
- Prior-quarter comparisons for reported metrics
- Year-over-year percentage changes for GAAP income-statement metrics
- Fee Related Earnings prior-year comparison
- Distributable Earnings prior-year comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Carlyle’s SEC Form 8-K (Item 2.02) reporting unaudited Q2 2026 financial results and declaring a quarterly dividend, with a scheduled conference call.
Ticker impact
Carlyle filed an 8-K with Q2 2026 results, including $274M income before taxes, $0.35 quarterly dividend, and detailed fee and income drivers.
Moderate positive bias for the next session and dividend-related positioning, but tempered by the reported $47M unrealized infrastructure fund losses and weaker investment income vs prior year quarter.
The filing is a primary earnings-style disclosure with specific P&L line items and a concrete dividend. However, the excerpt lacks consensus comparisons and full segment/forward guidance, limiting conviction on magnitude of repricing.
Market effects
Provides a datapoint on private-capital fee generation and credit/investment-income volatility for alternative asset managers.
Primarily US-listed alternative asset manager sentiment; limited direct regional spillover beyond US markets.
Carlyle’s global segments and AUM base make the results relevant to broader global private equity and credit sentiment, though no specific global macro trigger is disclosed.
Counterpoint
The headline strength in fee-related earnings may mask weaker investment income, including unrealized losses in a consolidated infrastructure fund and a large year-over-year decline in investment income (loss).
Key entities
- companyCarlyle Group Inc.
NASDAQ-listed alternative asset manager reporting Q2 2026 results and declaring a $0.35 quarterly dividend.
- eventCarlyle conference call
Scheduled for 8:30 a.m. EDT on Aug 5, 2026 to discuss Q2 results.
