A global investment firm that manages money for institutions and wealthy clients, buying and growing companies through its private equity, credit, and AlpInvest businesses. Founded in 1987 in Washington, D.C., by five partners including David Rubenstein, it grew from a boutique firm into one of the world's largest asset managers. Its name comes not from any founder but from The Carlyle Hotel in New York, where early meetings were held — a name the hotel itself borrowed from the philosopher Thomas Carlyle.
Carlyle Q2 2026 revenue fell 28.6% to $1.12B as performance allocations declined, but fee-related earnings rose 11% to a record $357.7M.
fell from a year ago, but the fee engine hit a record. declined 28.6% to $1,123.5M and fell 37.9% to $273.8M as performance allocations did not repeat the prior year's gain, while fee-related earnings rose 11% to $357.7M on higher fund management and transaction fees. The business is generating more durable fee revenue even as carry remains volatile.
Key takeaways
Total rose 10% to $472.3M, driven by an 11% increase in to a record $357.7M.
Fund management fees grew 12% to $620.4M, and total fund level fee revenues rose 12%, supported by new fund activations and catch-up fees.
Global Credit rose 31% to $158.0M, fueled by a 126% increase in portfolio advisory and transaction fees, including $49M from a structured investment vehicle.
Section summaries
Management's Discussion and Analysis
Q2 2026 Distributable Earnings rose 10% YoY to $472M driven by record fee revenues and higher Global Credit realizations.
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Total increased to $472.3M, with up 11% to $357.7M, driven by a 12% rise in total fund level fee revenues.
Global Private Equity fell 6% to $218.5M as a 50% drop in realized net performance revenues, due to a less favorable exit mix, offset higher fee revenues.
rose to $334.4B, supported by $8.5B in Q2 inflows and growth in , while total reached $485.5B with $16.8B in quarterly inflows.
The company repurchased $365M of common stock, declared a $0.35 per share quarterly , and held $1.3B in cash with no outstanding borrowings.
What changed
Q2 2026 were a $440.6M gain, holding positive after the Q1 2026 loss, but down from the $1.8B gain in Q2 2025, settling the question of whether the Q1 loss would reverse or deepen.
was -$32.5M in Q2 2026, an improvement from -$1,270.5M in Q1 2026 and -$186.3M in Q2 2025, though the firm has not yet returned to sustained positive annual generation.
rose to $334.4B from $333.4B in Q1 2026, as Carlyle AlpInvest inflows continued to drive growth while Global Private Equity remained flat.
of $472.3M rose from $327M in Q1 2026, as the 91% drop in Global Private Equity realized performance revenues seen in Q1 partially recovered.
What to watch
Q3 2026 to see if the $440.6M Q2 gain holds or reverses, given the Q3 2025 swing to a $606.7M loss.
Q3 2026 after the -$32.5M Q2 print to determine if the firm can sustain near-breakeven or positive quarterly generation.
Next disclosure from the $334.4B Q2 level as Carlyle AlpInvest and inflows proceed.
Q3 2026 Global Private Equity realized net performance revenues to see if the less favorable exit mix noted in Q2 persists.
Global Credit DE surged 31% to $158.0M, fueled by a 126% jump in portfolio advisory and transaction fees, including $49M from a structured investment vehicle.
Global Private Equity DE fell 6% to $218.5M as a 50% drop in realized net performance revenues, due to a less favorable exit mix, offset higher fee revenues.
Carlyle AlpInvest DE grew 23% to $95.8M, with fee revenues up 26% on strong growth in CAPM and CAPS evergreen funds and higher catch-up incentive fees.
Total reached $485.5B with $16.8B in Q2 inflows, while rose to $334.4B, supported by $8.5B in inflows and growth in .
The company repurchased $365M of common stock, declared a $0.35/share quarterly , and held $1.3B in cash with no outstanding borrowings.
Quantitative and Qualitative Disclosures About Market Risk
Our primary exposure to market risk is related to our role as general partner or investment advisor to our investment funds and the sensitivities to movements in the fair value of their investments, including the effect on management fees, incentive fees and investment income, i…
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Our primary exposure to market risk is related to our role as general partner or investment advisor to our investment
funds and the sensitivities to movements in the fair value of their investments, including the effect on management fees,
incentive fees and investment income, including performance allocations. Although our investment funds share many common
themes, each of our asset management asset classes runs its own investment and risk management processes, subject to our
overall risk tolerance and philosophy. The investment process of our investment funds involves a comprehensive due diligence
approach, including review of reputation of shareholders and management, company size and sensitivity of cash flow
generation, business sector and competitive risks, portfolio fit, exit risks and other key factors highlighted by the deal team. Key
investment decisions are generally subject to approval by both the fund-level managing directors, as well as the investment
committee, which generally comprises one or more of the three founding partners as well as senior investment professionals.
Once an investment in a portfolio company has been made, our fund teams closely monitor the performance of the portfolio
company, generally through frequent contact with management and the receipt of financial and management reports.
There was no material change in our market risks during the six months ended June 30, 2026. For additional information,
refer to our Annual Report on Form 10-K for the year ended December 31, 2025.
The information required with respect to this item can be found under “Legal Matters” in Note 7, Commitments and Contingencies, of the notes to the Company’s condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q, and such information is inco…
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The information required with respect to this item can be found under “Legal Matters” in Note 7, Commitments and
Contingencies, of the notes to the Company’s condensed consolidated financial statements contained in this Quarterly Report
on Form 10-Q, and such information is incorporated by reference into this Item 1.
For a discussion of our potential risks and uncertainties, see the information under Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
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For a discussion of our potential risks and uncertainties, see the information under Item 1A. “Risk Factors” in our Annual
Report on Form 10-K for the year ended December 31, 2025.