Carlyle : Reports Fourth Quarter and Full Year 2021 Financial Results

Carlyle Reports

Fourth Quarter and

Full Year 2021

Financial Results

FEBRUARY 3, 2022

Carlyle Reports

Fourth Quarter and

Full Year 2021

Financial Results

WASHINGTON, DC AND NEW YORK, NY - FEBRUARY 3, 2022 - Global investment firm The Carlyle Group Inc. (NASDAQ: CG) today reported its unaudited results for the fourth quarter and full year ended December 31, 2021.

Dividend

The Board of Directors has declared a quarterly dividend of $0.25 per common share to holders of record at the close of business on February 15, 2022, payable on February 23, 2022.

Conference Call

Carlyle will host a conference call at 8:30 a.m. EST on Thursday, February 3, 2022, to discuss its fourth quarter and full year 2021 financial results. The call will be available via public webcast from the Shareholders section of Carlyle's website at www.carlyle.com and a replay will be available on the website soon after the call's completion.

About Carlyle

Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that

deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $301 billion of assets under management as of December 31, 2021, Carlyle's purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs nearly 1,850 people in 26 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.

"Our fourth quarter performance caps a record year for Carlyle and we enter 2022 a stronger firm.

This momentum and our continued progress has resulted in a new level of earnings power that illustrates the long term growth trajectory of our expanding and diversifying global platform.

I am proud of our team and the exceptional results across all three of our businesses. We are delivering on our strategic plan and are positioned to deliver FRE growth and strong performance."

KEWSONG LEE

CHIEF EXECUTIVE OFFICER

Forward Looking Statement

THIS PRESS RELEASE MAY CONTAIN FORWARD-LOOKINGstatements 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 expectations regarding the impact of COVID-19,our dividend policy, our expected future dividend policy, the anticipated benefits from converting to a corporation and other non-historicalstatements. You can identify these forward-lookingstatements 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-lookingstatements 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, 2020 filed with the SEC on February 11, 2021, 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

INVESTOR RELATIONS	MEDIA
Daniel Harris	Leigh Farris	Brittany Berliner
Phone: [phone]	Phone: [phone]	Phone: [phone]
[e-mail]	[e-mail]	[e-mail]

Fourth Quarter and

Full Year 2021 Financial Results

Carlyle Fourth Quarter & Full Year 2021 U.S. GAAP Results

Net income attributable to The Carlyle Group Inc. common stockholders in Q4 2021 was $648 million, and a record $3.0 billion for FY2021, or $1.77 and $8.20 per share on a diluted basis, respectively, both substantially higher compared to 2020 results

(Dollars in millions, except per share amounts)		4Q'20		4Q'21			FY'19		FY'20		FY'21
REVENUES
Fund management fees		$	394.5	$	484.6		$	1,476.2	$	1,486.0	$	1,667.5
Incentive fees			10.0		15.8			35.9		37.0		48.8
Investment income (loss), including performance allocations			1,022.8		1,403.4			1,568.4		1,095.2		6,721.9
Revenue from consolidated entities			62.3		67.9			199.2		226.8		253.2
All other revenues		25.1		27.4			97.3		89.6		90.7
Total Revenues			1,514.7		1,999.1			3,377.0		2,934.6		8,782.1
EXPENSES
Cash-based compensation and benefits			210.6		222.8			833.4		849.6		908.0
Equity-based compensation			26.7		41.1			140.0		105.0		163.1
Performance allocations and incentive fee related compensation			435.4		605.2			436.7		779.1		2,961.0
General, administrative and other expenses			108.4		131.3			494.4		349.3		431.7
Expenses from consolidated entities			41.4		45.0			131.8		163.5		178.5
Interest and other non-operating expenses (income)		12.7		37.4			83.4		86.8		114.8
Total Expenses			835.2		1,082.8			2,119.7		2,333.3		4,757.1
Net investment gains (losses) of consolidated funds		17.6		(7.1)			(23.9)		(21.3)		2.5
Income (loss) before provision for income taxes 1			697.1		909.2			1,233.4		580.0		4,027.5
Provision (benefit) for income taxes			142.5		248.8			49.0		197.2		982.3
Net income (loss)			554.6		660.4			1,184.4		382.8		3,045.2
Net income (loss) attributable to non-controlling interests 4			35.8		12.8			803.5		34.6		70.5
Net income (loss) attributable to The Carlyle Group Inc.			518.8		647.6			380.9		348.2		2,974.7
Net income attributable to Series A Preferred Shareholders			-		-			19.1		-		-
Series A Preferred Shares redemption premium		-		-			16.5		-		-
Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders		$	518.8	$	647.6		$	345.3	$	348.2	$	2,974.7
Net income (loss) attributable to The Carlyle Group Inc. per common share:
Basic	$	1.47	$	1.82	$	3.05	$	0.99	$	8.37
Diluted		$	1.44	$	1.77		$	2.82	$	0.97	$	8.20
Supplemental information:
Income (loss) before provision for taxes margin 2			46.0 %		45.5 %			36.5 %		19.8 %		45.9 %
Effective tax rate		20.4 %		27.4 %			4.0 %		34.0 %		24.4 %
Net performance revenues 3		$	468.9	$	638.1		$	362.4	$	856.8	$	3,123.6

• Investment income (loss), including performance allocations, for FY 2021 reflects 41% appreciation in our carry portfolio. FY 2020 includes a loss in principal investment income (loss) of $(621) million driven by the contribution of our existing 19.9% investment in Fortitude into the fund, and the subsequent accounting for our investment which is based on the net asset value of our limited partnership interest in the fund rather than a direct interest in Fortitude.
• General, administrative and other expenses ("G&A") in FY 2021 include $15 million in currency translation loss previously recorded in accumulated other comprehensive income and related to the sale of our local Brazilian management entity, as well as $27 million in right-of-use asset impairment related to the sublease of a portion of our office space in New York. These amounts are excluded from our segment results. FY 2020 G&A includes the positive impact of a $30 million recovery of litigation costs (a contra expense). Excluding this, G&A would have been $379 million in FY 2020.
• Provision (benefit) for income taxes for FY 2020 includes $86 million in expense as a result of a reduction in our net deferred tax asset related to our conversion from a partnership to a corporation on January 1, 2020 (the "Conversion"). Excluding this impact from the Conversion, our effective income tax rate for the FY 2020 would have been approximately 19%. The Provision (benefit) for income taxes in 4Q'21 and FY 2021 reflect higher pre-tax income relative to 2020.

See notes at end of document.

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