#1JUNE 2020 MORGAN STANLEY FINANCIAL SERVICES CONFERENCE GLENN YOUNGKIN CO-CHIEF EXECUTIVE OFFICER THE CARLYLE GROUP#2Important Information This presentation has been prepared by The Carlyle Group Inc. (together with its affiliates, "Carlyle") and may only be used for informational purposes only. This presentation may not be referenced, quoted or linked by website, in whole or in part except as agreed to in writing by Carlyle. On January 1, 2020, we completed our conversion from a Delaware limited partnership named The Carlyle Group L.P. into a Delaware corporation named The Carlyle Group Inc. Unless the context suggests otherwise, references in this report to "Carlyle", the "Company", "we", "us", and "our" refer (i) prior to the consummation of the conversion, to The Carlyle Group L.P. and its consolidated subsidiaries and (ii) from and after the consummation of the conversion, to The Carlyle Group Inc. and its consolidated subsidiaries. References to our common stock in periods prior to the conversion refer to the common units of The Carlyle Group L.P. References to our dividends in periods prior to the conversion refer to the distributions of The Carlyle Group L.P. This presentation provides an overview of Carlyle and is not intended to be taken by, and should not be taken by, any individual recipient as investment advice, a recommendation to buy, hold or sell any security, or an offer to sell or a solicitation of offers to purchase any security. An offer or solicitation for an investment in any investment fund managed or sponsored by Carlyle or its affiliates ("Fund") will occur only through an offering memorandum and related purchase documentation, and subject to the terms and conditions contained in such documents and in such Fund's operative agreements. The offering memorandum relating to any Fund contains additional information about the investment objective, terms and conditions of such Fund, tax information and risk disclosure that should be reviewed prior to making an investment decision regarding a Fund. This presentation is qualified in its entirety by such offering memorandum, which should be read completely before making any investment. An investment in a Fund would be speculative and would involve significant risks. Nothing in this presentation is intended to be taken by, and should not be taken by, any individual recipient as investment advice, a recommendation to buy, hold or sell any security, or an offer to sell or a solicitation of offers to purchase any security. Although the information presented in this presentation has been obtained from sources that Carlyle believes to be reliable, Carlyle makes no representations as to its accuracy, validity, timeliness or completeness for any purpose. The information set forth herein does not purport to be complete and Carlyle is not responsible for errors and/or omissions with respect to the information contained herein. Unless otherwise expressly stated herein any analysis or outlook relating to the matters discussed herein express Carlyle's views only as of June 5, 2020.. Statements contained in this presentation that are not historical facts are based on current expectations, estimates, projections, opinions and/or beliefs of Carlyle. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Certain information contained in this presentation constitutes "forward-looking statements," which can be identified by the use of forward-looking terminology such as "may," "will," "should," "seek," "expect," "anticipate," "forecast," "project," "estimate," "intend," "continue," "target," or "believe" or the negatives thereof or other variations thereon or comparable terminology. These statements are subject to risks, uncertainties and assumptions, including those described under the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended 12/31/2019 filed with the SEC on February 12, 2020, 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. The fund return information reflected in this presentation is not indicative of the performance of The Carlyle Group Inc. and is also not necessarily indicative of the future performance of any particular fund. There can be no assurance that any of Carlyle's funds or its other existing and future funds will achieve similar returns. See "Risk Factors Risks Related to Our Business Operations - The historical returns attributable to our funds, including those presented in this report, should not be considered as indicative of the future results of our funds or of our future results or of any returns expected on an investment in our common units" in the Annual Report. As used throughout this document, and unless otherwise indicated, "Gross IRR" represents the annualized internal rate of return for the period indicated on limited partner invested capital based on contributions, distributions and unrealized value before management fees, expenses and carried interest, which will reduce returns and, in the aggregate are substantial. "Net IRR" represents the annualized internal rate of return for the period indicated on limited partner invested capital based on contributions, distributions and unrealized value after management fees, expenses and carried interest (but not taxes borne by investors). "Gross MOIC" represents total fair value, before management fees, expenses and carried interest, divided by cumulative invested capital. An investment is considered realized when the investment fund has completely exited, and ceases to own an interest in, the investment. An investment is considered partially realized when the total proceeds received in respect of such investment, including dividends, interest or other distributions and/or return of capital represents at least 85% of invested capital and such investment is not yet fully realized. In considering investment performance information contained in this presentation, prospective investors should bear in mind that past performance is not necessarily indicative of future results and there can be no assurance that Carlyle or any Fund will achieve comparable results. Actual realized value of currently unrealized investments will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions and circumstances on which the current unrealized valuations are based. Accordingly, the actual realized values of unrealized investments may differ materially from the values indicated herein. Unless otherwise specified, LTM, or last twelve months refers to the period of Q2 2019 through Q1 2020, and the prior rolling 12-month period refers to the period Q2 2018 to Q1 2019. This presentation includes comparisons of certain private equity indices to various indexes including certain MSCI indexes (MSCI) and the S&P 500 and other indexes. The private equity indices do not represent the performance of any Fund or family of Funds. Recipients should not infer that any Fund is top quartile. There are significant differences between the types of securities and assets typically acquired by U.S. and global buyout funds, the investments covered by the MSCI, S&P 500 and other indexes. Specifically, U,S. and global buyout funds typically make investments in securities and other assets that have a greater degree of risk and volatility, and less liquidity, than those securities included in these indexes and companies included in the indexes are not subject to certain of the management fees, carried interest or expenses to which investors in U.S. and global buyout funds are typically subject. Comparisons between private equity funds, Carlyle sponsored funds, the MSCI, S&P 500 and other indexes are included for informational purposes only. The private equity returns do not represent the performance of any Fund or family of Funds. Recipients should not infer that any Fund is top quartile. Detailed information about Carlyle's management fees and performance revenues is available in Carlyle's public filings. Please note that certain metrics and projections contained in this Presentation include the Legacy Energy Funds and funds advised by NGP Energy Capital Management. Please note that the Legacy Energy Funds (as defined in Carlyle's public filings), are managed with Riverstone Holdings LLC and its affiliates. Affiliates of both Carlyle and Riverstone act as investment advisers to each of the Legacy Energy Funds. Currently, Carlyle is only entitled to carried interest and management fees in certain funds advised by NGP Energy Capital Management. The NGP Energy Capital Management funds which solely earn management fees are referred to herein as "NGP predecessor funds." For purposes of the non-financial operating and statistical data included in this presentation, including the aggregation of our non-U.S. dollar denominated investment funds, foreign currencies have been converted to U.S. dollars at the spot rate as of the last trading day of the reporting period when presenting period end balances, and the average rate for the period has been utilized when presenting activity during such period. With respect to capital commitments raised in foreign currencies, the conversion to U.S. dollars is based on the exchange rate as of the date of closing of such capital commitment. This presentation includes certain Non-GAAP financial measures, Distributable Earnings ("DE") and Distributable EBITDA. These Non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please refer to the Appendix of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measured prepared in accordance with GAAP. Please see Carlyle's public filings for the definition of "carry funds," "Fee-earning assets under management" or "Fee-earning AUM," (FEAUM), and "Assets under management" or "AUM." 2#3Carlyle Investor Overview Carlyle is a leading global investment manager with $217 billion in AUM Entered 2020 with good momentum and in a position of strength across our business - Significant fundraising over the past few years has provided us with $74 billion in available capital Our globally diversified series of funds continue to offer attractive investment opportunities to our fund investors ● ● ● Amidst the pandemic, Carlyle's intense focus on our people and our portfolio has served us well, while there remains much work to do - Working closely with all of our portfolio companies amid the COVID pandemic - Tracking selective investment and deployment opportunities across all segments We continue to execute on our business priorities by expanding key businesses lines and growing earnings - Improving the breadth and composition of our Fee Related Earnings remains a key focus area Recently closed Fortitude Re transaction creates new growth opportunities and income streams to Carlyle Our Global Credit platform, with $49 billion in Assets Under Management, is well positioned for the current environment Carlyle continues to offer attractive shareholder value and investment proposition Attractive mix of earnings growth, earnings mix and valuation Our one share/one vote construct positions us for the widest amount of index inclusion 3#4We Are Focused On Both Internal and External Opportunities Managing The COVID Impact Focusing on Investment Performance and Execution Navigating Through Uncertain Markets Note: For illustrative purposes only. ● ● ● ● ● ● ● ● Ensuring the safety and security of our people remains our top priority, and supporting our portfolio in every way possible ("OneCarlyle") Moved 100% of workforce to work remotely by March Beginning to carefully reopen offices in Asia Evaluating global deployment opportunities, notably in Credit and Asia Opportunistically exiting certain assets amid strengthening global markets Continuing to closely monitor and stress test investment portfolio Delivering investment management services to Fortitude and other insurers The global economy has taken initial steps forward, beginning in Asia Heavily disrupted Europe market unthawing as economies reopen Significant risks remain as industrial orders remain depressed with tepid hiring expectations 4#5Carlyle Entered 2020 With Good Momentum And in a Position of Strength Focused on Growing Fee Related Earnings Fee-earning AUM Sticky & Long Term Substantial Dry Powder To Address Opportunity Well Positioned For Future Performance Revenue Global Credit Business Well Positioned Note: Data as of March 31, 2020.. $453 million in 2019, more than double 2017 (margin up to 28% from 17% in 2017) 98% of FEAUM in long term, locked up fee structures $74 billion of available capital $1.2 billion in net accrued carry as of Q1 2020 $49 billion of Global Credit AUM (+18% CAGR over past 3 years) 5#6Focus on Fee Related Earnings Growth Building Upon Recent Momentum Fee Related Earnings growth accelerated over the last few years We are confident in our ability to grow Fee Related Earnings over the long term through: • Scaling of existing businesses ● • Pursuing opportunistic growth Carefully managing expenses ● We expect to generate FRE in a range of $400-450 million for 2020 FRE & MARGIN TRENDS¹1 Fee Related Earnings ($mm) $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 $192 $124 2017 $350 $318 2018 $453 2019 Insurance recoveries IFRE (ex recoveries) •FRE Margin $400-450 2020 Target Note: Data as of March 31, 2020. Reflects management's views as of June 5, 2020. Please see "Important Information" slides for information about the use of and reliance on projections. 1) 2017 Fee Related Earnings were $192 million, and $124 million net of $68 million in net insurance recoveries. 2018 Fee Related Earnings were $350 million, and $318 million net of $32 million in insurance recoveries. FRE Margins are based on Fee Related Earnings excluding the impact of insurance recoveries. 35% 30% 25% 20% 15% 10% 5% 0% FRE Margin (%) 6#7Substantial Dry Powder To Address Investment Opportunities Amassed $74 billion of Available Capital via a highly successful multi- year fundraising campaign We have scaled our capacity to invest capital over the last few years with larger fund sizes and platform expansion Market volatility may slow near term deployment, but new opportunities already emerging in Credit, Asia, and certain global growth sectors We are still finding attractive investments $14 IS, $17 GC, $8 DEPT RA, $16 $18 2012-2015 2016 (Avg) Available Capital: $74 bn INVESTED CAPITAL ($BN, CARRY FUNDS) $22 2017 $22 2018 CPE, $33 MAK-SYSTEM $21 2019 Sequent Proven Ability In Life Science $21 LTM A ADAMS OUTDOOR Note: Data as of March 31, 2020. Reflects management's views as of June 5, 2020. References to portfolio companies are presented for illustrative purposes only and are not intended as, and should not be construed as, a recommendation for any particular company or security. There is no guarantee these trends will continue. References to portfolio companies are presented ADVERTISING 7#8We Are Confident Our Portfolio Is Well Positioned Amidst A Challenging Market Environment Focused on supporting our portfolio companies and investments comprising our $143 billion of fair value "in the ground" Large buyout funds have a strong track record through prior periods of volatility Carlyle does its best work investing and managing portfolios through volatile markets FAIR VALUE OF INVESTMENTS ($BN) Credit Non-Carry Fund Inv Solutions Carry Funds $36 $31 Other $1 $143bn $76 Traditional Carry Funds 1 STRONG FUND PERFORMANCE OVER MARKET CYCLES Fund Carlyle Partners IV Carlyle Partners V Carlyle Europe Partners II Carlyle Europe Partners III Carlyle Asia Partners II Carlyle Asia Partners III Note: Data as of March 31, 2020. Past performance is not a guarantee of future performance and there is no guarantee these trends will continue. 1) Includes Corporate Private Equity, Real Assets and Global Credit carry funds Investing Period 2004-2007 2007-2012 2003-2007 2007-2013 2006-2008 2008-2013 Total MOIC 2.4X 2.1X 2.0X 2.2X 1.9X 1.8X 8#9Significant Opportunity in Global Credit Growing our Global Credit platform remains a key strategic focus for the firm Total AUM has grown at an 18% CAGR over the past 3 years Global Credit Fee Related Earnings have expanded to nearly $50 million in 2019 Launched or acquired new strategies which are performing well: Opportunistic Credit Carlyle Aviation Partners Current environment presents tactical deployment and fundraising opportunity GLOBAL CREDIT TOTAL AUM ($BN) +18% CAGR $29 3 Years Ago $14 2017 GLOBAL CREDIT FEE RELATED EARNINGS¹ ($MM) $40 2018 $49 Note: Data as of March 31, 2020. There is no guarantee these trends will continue. 1) 2017 and 2018 Fee Related Earnings for Global Credit exclude the positive impact of $68 million and $32 million of non-recurring insurance recoveries in the respective period. Q1 2020 $48 2019 9#10Fortitude Platform Enables Strategic Growth Opportunities Fortitude is a leading Bermuda-based run- off reinsurer with more than $43 billion in total assets Carlyle, Carlyle investors, and T&D Holdings now own approximately 97% of Fortitude Our investment in Fortitude helps us extend our investment capabilities into the insurance sector Fortitude is a source of long-term capital for Carlyle products Fortitude is well-positioned to grow through the acquisition of additional run-off blocks of insurance Note: We closed our transaction of Fortitude Re from AIG on June 2nd For illustrative purposes only. Broad Income Generation Capacity Fee Revenue Investment Income Performance Revenue Earn recurring management fees on equity raised for Fortitude and assets rotated to Carlyle from Fortitude, as well transaction and capital markets fees Earn investment income over time from dividends from Fortitude, realized when distributed to investors Earn performance fees on assets invested into vehicles which have the capacity for performance fee generation 10#11Expected Near Term Index Inclusion Could Drive Material CG Share Purchases CG Has Been Added To Various Indexes Significant Passive Investment Buying Expected Added to the MSCI USA index series as part of their Global Standard Indexes, enacted on May 29th Passive ownership as a % of total shares outstanding (as of 3/31/2020) ● • Several additional index additions have been announced, some with substantial active management benchmarks ● - Will be added to both the Russell 1000/Russell 3000 indexes upon their reconstitution on June 26th - Expect CRSP index inclusion, with transitional reconstitution date between June 17 and June 23 Expect to be added to the S&P and DJI Total Market indexes S&P flagship index opportunity remains outstanding - Believe we are eligible for S&P 500 inclusion, though there is no expected timing 14% Peer 1 Source: Factset, Nasdaq. Note: There can be no assurance that any such trends or ownership will occur for The Carlyle Group Inc. 11% Peer 2 11% Peer 3 11% Peer 4 0% CG 11#12Carlyle Presents An Attractive Investment Opportunity Platform Growth & Diversification FEE RELATED EARNINGS |($MM) $192 $350 29% $453 2017 2018 2019 LTM $478 % OF DISTRIBUTABLE EARNINGS FROM FRE 52% 70% 66% 2017 2018 2019 LTM PRICE TO 2021E 23.8x 20.2x 20.1x S&P Peer 1 Peer 500 2 Dividend Yield (NTM) Fixed Dividend 4.4%. Value¹ 3.4% 1.9% CG Peer 3 Peer 4 18.2x 16.0x 15.2x 11 Peer 3 4 Peer CG Variable Dividend 3.7%3.3% Peer 2 Peer 1 2.0% S&P 500 + ● ● ● Technical Improvement Carlyle converted to a Full C-Corp effective January 1, 2020 CG inclusion into indices and benchmarks could drive significant active and passive buying demand throughout 2020 CG trading liquidity up more than 300% YTD 2020 vs 2019 driving more efficient ownership (YTD trading volume/day of 2.6 mm shares/day, or $68 mm/day) Note: Valuation and trading data as of June 5, 2020. Source: Factset. Presented for illustrative purposes only. Please see "Important Information" slides for information about the use of and reliance on projections. 1) Peers include Apollo, ARES, Blackstone, KKR.. 12#13We Are A Well Positioned Global Investment Management Firm ● ● ● ● ● Carlyle is a global leader in the growing private capital industry We are committed to delivering strong results for all of our stakeholders (including fund investors, shareholders, employees and our communities) Well positioned to manage through the impact of COVID-19 on our portfolio and we are positioned to invest in new opportunities as they emerge Fee Related Earnings have strengthened over the past few years and provides significant support to Distributable Earnings Currently have $1.2 billion of accrued performance revenues underpinning significant future net realized performance revenue growth Significant index inclusion expected over the near to mid term Note: Reflects management views as of May 25, 2020. Information provided as of March 31, 2020. 13#14SEGMENT SUMMARIES#15Corporate Private Equity: Scaled Market Leader With Superior Long Term Performance TOTAL AUM ($BN) $73 US Growth. $3.1 $51 1 2016 2017 2018 2019 Q1 2020 Financial Services $2.2 Global Partners $5.9 $86 $81 Japan Buyout $3.9 Asia Buyout $12.0, Other CPE¹ $5.8 $80b Europe Buyout $11.6 $80 Fee Related Earnings Net Realized Performance Revenues Distributable Earnings US Buyout $35.9 459 FEE-EARNING AUM ($BN) 488 $36 $36 2016 2017 Financial Services $1.6 Global Partners $2.7 Financial Metrics ($mm) 2017 2018 2019 $26 $124 $261 US Growth $2.6 221 350 67 $62 297 2018 2019 Q1 2020 Asia Buyout $9.9 $62 $61 Japan Buyout < $1.0 Other CPE1 $4.8 $61b Europe Buyout $10.3 US Buyout $28.1 LTM Q1 2020 $280 83 342 Key Points Superior, diversified track record ● 2.3x MOIC on realized and partially realized investments Recent successor funds significantly scaled CPE platform ● Experience across multiple deployment and exit cycles · Positioned to deliver future performance fees US/Asia/Europe buyout fundraising scaled latest funds by more than 50% $33 bn of Available Capital Deployment of $7.8 bn LTM $48 bn Remaining Fair Value $0.8 bn of Net Accrued Performance Revenue Note: Data as of March 31, 2020. See The Carlyle Group Inc.'s filings with the U.S. Securities and Exchange Commission for more information on fund performance. 1) Comprised of South America Buyout, Europe Growth, Asia Growth, Sub-Saharan Africa Buyout, CPE Platform Accounts, Peru Buyout, Ireland Buyout and MENA Buyout. 15#16Real Assets: High Performing Real Estate Platform & Global Scale in Natural Resources and Infrastructure TOTAL AUM ($BN) $34 2016 $43 $46 $43 $40 2017 2018 2019 Q1 2020 Legacy Energy $1.8 Infrastructure $4.2 US Real Estate NGP Energy $40b $16.0 $9.4 Int'l Energy $6.2 Int'l Real Estate $2.3 Fee Related Earnings Net Realized Performance Revenues Distributable Earnings FEE-EARNING AUM ($BN) 25 $28 2016 Infrastructure $3.9 $32 $33 $33 $31 1 2018 2019 Q1 2020 207 2017 Legacy Energy $1.5 Financial Metrics ($mm) 2017 2018 2019 $52 $121 $127 50 84 NGP Energy $9.7 90 283 $31b US Real Estate $9.6 Int'l Energy $4.4 Int'l Real Estate $1.8 LTM Q1 2020 $125 103 292 Note: Data as of March 31, 2020. 1) There is no guarantee the infrastructure fund will consummate any transaction in its pipeline on the anticipated terms or at all. Key Points US Real Estate business delivering strong performance ● Infrastructure platform opportunity More than $4 bn of AUM across 6 focus areas ● Strong performance and substantial scaling in opportunistic funds Core Plus market an attractive opportunity to leverage USRE expertise ● New global infrastructure fund has closed three investments with a strong pipeline¹ Launched Renewable Energy strategy with team already in place Natural Resources carefully deploying capital in challenging environment Invested Capital of $2.7 bn LTM 16#17Global Credit: Well Positioned To Take Advantage of Market Dislocations Across Our Diversified Global Credit Platform TOTAL AUM ($BN) $44 $29 $33 2016 2017 2018 2019 Q1 2020 Direct Lending $5.1 Aviation $7.1 $49 $49 Carry Funds $10.0 $49b CLOS $26.6 FEE-EARNING AUM ($BN) Fee Related Earnings¹ Net Realized Performance Revenues Distributable Earnings¹ $24 2016 5 $27 78 Financial Metrics ($mm) 2017 2018 2019 $72 $82 $48 40 127 2017 2018 $35 Aviation $3.4 $4.3 1 Direct Lending 48 $38b CLOS $23.6 $38 $38 2019 Q1 2020 Carry Funds $6.7 LTM Q1 2020 $55 13 66 Key Points Focused on enhancing and scaling Global Credit platform ● ● ● Private credit accelerating as an asset class New credit teams capable of managing higher AUM with limited new investment Growth via organic/inorganic means to address significant white space Solid core platform Leading US/Europe CLO business $10 bn carry fund platform across Aviation, Opportunistic Credit, Distressed, Structured Credit and Energy Mezzanine Growing Direct Lending platform with $5.1 bn of AUM Well positioned to invest into dislocated investment opportunities across broad based platform inclusive of large SMA capabilities Note: Data as of March 31, 2020. 1) 2016, 2017 and 2018 include net (charges)/recoveries of $(175) million, $68 million and $32 million, respectively, associated with our commodities business. 17#18Investment Solutions: Consistently Strong Investment Performance TOTAL AUM ($BN) FEE-EARNING AUM ($BN) $46 $43 2016 $46 $45 $48 2017 2018 2019 Q1 2020 Metropolitan $2.4 Alpinvest Co-Inv $9.2 $48b Alpinvest - Secondary $13.6 AlpInvest Primary & Other¹ $22.7 $27 Fee Related Earnings Net Realized Performance Revenues Distributable Earnings 2016 $30 2017 2018 2019 Q1 2020 Metropolitan $2.1 AlpInvest - Co-Inv $5.6 $29 $28 $28 Financial Metrics ($mm) 2017 2018 2019 $32 $34 $17 3 10 30 AlpInvest Secondary $8.0 6 $28b AlpInvest Primary & Other¹ $12.5 LTM Q1 2020 $19 6 Key Points AlpInvest has great investment performance with performance fee upside 12% net IRR since inception & 1.6x MOIC with LTM appreciation of 13%² 21 ● ● Performance revenues well positioned to improve as post-acquisition European waterfall funds mature Effective management fee rate should rise over time ● New commitments from third party investors have higher fee yield than prior AUM Expect older/low fee commitments to drive FEAUM runoff over next few years 39 19 Note: Data as of March 31, 2020. See The Carlyle Group Inc.'s filings with the U.S. Securities and Exchange Commission for more information on fund performance. 1) Includes Mezzanine funds. 2) Includes impact from foreign exchange gain/loss in underlying fund investments. 18#19RECONCILIATION & DISCLOSURES#20Reconciliation for Distributable Earnings Per Share (Unaudited) (Dollars in millions, except per share data and where noted) FEE RELATED EARNINGS DISTRIBUTABLE EARNINGS DISTRIBUTABLE EARNINGS, NET attributable to common stockholders DISTRIBUTABLE EARNINGS, NET per common share outstanding Dividend per common share* TOTAL OUTSTANDING SHARES (in millions) Shares eligible for dividend (in millions)** $ DISTRIBUTABLE EARNINGS, TAX AND PER SHARE INFORMATION 1 Distributable Earnings $ 100.8 Less: Estimated current corporate, foreign, state and local taxes 2 Less: Preferred share distributions $ ** $ $ 1Q'19 $ 103.3 100.8 8.3 5.9 86.6 0.25 0.19 340.9 110.5 $ 132.7 $ 213.4 2Q'19 $ 213.4 $ $ $ 8.8 5.9 198.7 0.57 0.43 341.2 116.1 $ 108.8 3Q'19 $ 160.7 $ 160.7 $ $ 8.5 $ 144.9 7.3 0.41 4Q'19 346.7 117.8 $ 108.0 $ 171.7 $ 171.7 $ 175.0 5.2 166.5 1Q'20 $ 128.8 347.2 0.31 $ 0.25 $ 349.4 $ 175.0 $ 0.47 $ 0.48 7.7 $ 167.3 0.25 348.4 348.7 $ 478.3 $ $ $ $ LTM 1Q'20 $ 720.8 720.8 30.2 13.2 677.4 1.93 1.24 348.4 348.7 QoQ 19% 2% YOY 25% 74% LTM 12% 13% Our dividend policy as a Corporation is to pay dividends in an initial amount of $0.25 per share of common stock ($1.00 annually), beginning with the 4Q'19 dividend paid to shareholders in February 2020. See Notes at the end of the document for our Dividend Policy. Shares eligible for dividend include 0.3 million common shares that will be issued in May 2020 in connection with the vesting of restricted stock units. For purposes of this calculation, these common shares have been added to the common shares outstanding as of March 31, 2020 because they will participate in the dividend paid on common shares in May 2020. Totals may not sum due to rounding. Information reported for periods prior to the Conversion on January 1, 2020 reflect the results of the Partnership. See Notes at end of document. 20#21Reconciliation of GAAP to Total Segment Information (Dollars in millions) INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES Adjustments: Net unrealized performance revenues Unrealized principal investment (income) loss¹ Adjusted unrealized principal investment (income) loss from Fortitude Re Equity-based compensation² Acquisition related charges, including amortization of intangibles and impairment Other non-operating expense (income) Tax (expense) benefit associated with certain foreign performance revenues Net (income) loss attributable to non-controlling interests in consolidated entities Lease assignment and termination costs Debt extinguisment costs Corporate conversion costs, severance and other adjustments DISTRIBUTABLE EARNINGS Realized net performance revenues Realized principal investment income Net interest FEE RELATED EARNINGS 1Q'19 $470.3 (155.8) (238.6) (27.0) 39.4 12.0 0.3 (6.1) 4.5 0.1 1.7 $100.8 7.0 4.1 13.6 $ 103.3 2Q'19 $ 542.0 (82.4) (234.9) (40.1) 38.3 15.4 0.4 3.6 (39.8) 10.9 $213.4 20.8 73.9 14.0 $ 132.7 3Q'19 $ 261.4 126.2 (198.7) (68.1) 38.9 11.2 0.3 (10.8) (10.5) 10.8 $ 4Q'19 (40.3) 69.7 81.3 (5.7) 34.9 13.4 0.3 (1.0) 9.2 9.9 $ 160.7 $ 171.7 57.7 78.6 7.3 1.7 13.1 16.6 $ 108.8 $ 108.0 1Q'20 $ (789.0) $ 528.9 264.7 22.8 31.7 3.0 0.2 11.2 97.0 4.5 $ 175.0 48.2 15.9 17.9 128.8 LTM 1Q'19 LTM 1Q'20 $ 705.0 (48.7) (276.5) (38.7) 203.8 29.7 1.1 (5.5) (18.4) 66.9 7.9 9.2 $ 635.8 223.6 33.5 46.8 $425.5 $ (25.9) 642.4 (87.6) (91.1) 143.8 43.0 1.2 3.0 55.9 36.1 $ 720.8 205.3 98.8 61.6 $ 478.3 FY'18 $360.2 50.2 (48.8) (11.7) 252.2 22.3 1.1 (1.5) (33.9) 66.9 7.8 9.1 $ 673.9 319.7 48.1 44.3 $ 350.4 (1) The three month periods ended March 31, 2019, June 30, 2019, September 30, 2019, December 31, 2019 and March 31, 2020 include $229 million, $231 million, $214 million, $(92) million, and $(89) million, respectively, in gains (losses) from changes in the fair value of embedded derivatives at Fortitude Re as a result of accounting principles related to derivatives and hedging. (2) Equity-based compensation includes amounts reflected in principal investment income and general, administrative and other expense in our U.S. GAAP statement of operations, as well as amounts related to shares issued in conjunction with a previous acquisition and amounts related. LTM 1Q'19 and FY'18 include amounts related to the IPO. Information reported for periods prior to January 1, 2020 reflect the results of the Partnership. FY'19 $1,233.4 (42.3) (590.9) (140.9) 151.5 52.0 1.3 (14.3) (36.6) 0.1 33.3 $646.6 164.1 87.0 57.3 $452.8 21#22Reconciliation of GAAP to Total Segment Information, continued Total Reportable Consolidated Reconciling Segments Total Reportable Consolidated Reconciling Segments Funds Items Three Months Ended March 31, 2019 Funds Items Twelve Months Ended March 31, 2019 $ 583.7 208.7 $ $ $ $ $ (895.8) $ (247.8) $ $ $ $ $ $ 219.6 $ 491.6 $ $ 212.7 $ 417.6 $ $ $ $ (11.7) $ (4.8) $ 74.0 $ Twelve Months Ended March 31, 2020 199.8 $ 175.7 $ (122.8) $ (98.7) $ (648.0) Year Ended December 31, 2018 214.5 $ 213.3 $ 4.5 $ 5.7 $ (319.4) $ Year Ended December 31, 2019 199.2 $ 1,067.7 165.6 $ 490.6 (23.9) $ 26.8 346.2 $ $ $ $ $ $ $ $ $ $ $ 9.7 $ (Dollars in millions) Revenues Expenses Other income (loss) Distributable Earnings Revenues Expenses Other income (loss) Distributable Earnings Revenues Expenses Other income (loss) Distributable Earnings Revenues Expenses Other income (loss) Distributable Earnings $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Revenues $ Expenses $ Other income (loss) $ Distributable Earnings $ 450.9 350.1 100.8 550.7 $ 337.3 $ $ 213.4 $ 160.7 580.7 409.0 171.7 581.1 406.1 $ $ 52.4 43.7 $ (14.2) (5.5) $ 375.0 Three Months Ended June 30, 2019 464.6 154.2 45.8 $ 36.8 $ 9.2 $ 18.2 $ 527.8 $ 367.1 $ $ $ Three Months Ended December 31, 2019 $ $ $ (170.1) 33.6 $ $ $ $ $ $ $ $ 175.0 $ Three Months Ended September 30, 2019 $ 189.5 94.1 $ $ 95.4 $ 51.3 44.1 (1.9) 5.3 - $ $ $ $ 49.7 $ 41.0 $ (17.0) $ (8.3) $ $ $ $ $ $ $ $ 310.4 $ 53.0 $ 53.8 $ (113.1) $ (113.9) $ (203.7) Three Months Ended March 31, 2020 (1,379.8) $ (529.7) $ $ (850.1) $ Carlyle Consolidated ¹ 1,087.0 602.5 (14.2) 470.3 1,061.1 528.3 9.2 542.0 768.6 505.3 (1.9) 261.4 460.3 483.6 (17.0) (40.3) (745.7) (69.8) (113.1) (789.0) 2 2 3 4 2 2 3 4 2 2 3 4 2 2 3 4 2 2 3 4 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2,100.2 1,464.4 - 635.8 2,240.3 1,519.5 - 720.8 2,185.9 1,512.0 673.9 2,110.1 1,463.5 646.6 $ $ (3) The Other Income (Loss) adjustment results from the Consolidated Funds which were eliminated in consolidation to arrive at Carlyle's total Other Income (Loss). (4) See the reconciliation for Distributable Earnings and Fee Related Earnings on page 31. 577.1 $ Carlyle Consolidated ¹ (1) The Distributable Earnings in the Carlyle Consolidated column is income before provision for income taxes, which is the GAAP measure that is most directly comparable to Distributable Earnings. (2) See detailed breakdown of revenue and expense adjustments on page 33. 2,811.4 2,094.7 (11.7) 705.0 1,544.3 1,447.4 (122.8) (25.9) 2,427.2 2,071.5 4.5 360.2 3,377.0 2,119.7 (23.9) 1,233.4 2 3 4 2 2 3 4 2 2 3 4 2 2 3 4 22#23Reconciliation of GAAP to Total Segment Information, continued (Dollars in millions) REVENUE RECONCILING ITEMS Unrealized performance revenues Unrealized principal investment income (loss) Adjusted unrealized principal invesment income (loss) from Fortitude Re Adjustments related to expenses associated with NGP Management and its affiliates Tax expense (benefit) associated with certain foreign performance revenues Non-Carlyle economic interests in acquired businesses and other adjustments to present certain costs on a net basis Elimination of revenues of Consolidated Funds Total Revenue Reconciling Items EXPENSE RECONCILING ITEMS Unrealized performance revenues related compensation Equity-based compensation Acquisition-related charges, including amortization of intangibles and impairment Other non-operating expense (income) Tax (expense) benefit associated with certain foreign performance revenues related compensation Non-Carlyle economic interests in acquired businesses and other adjustments to present certain costs on a net basis Lease assignment and termination costs Debt extinguisment costs Corporate conversions costs, severance and other adjustments Elimination of expenses of Consolidated Funds Total Expense Reconciling Items 1Q'19 $ 301.8 238.6 27.0 (4.0) 20.4 (0.1) $ 583.7 $ 146.0 39.4 12.0 0.3 (6.1) 20.9 0.1 1.7 (5.6) $ 208.7 2Q'19 $167.3 234.9 40.1 (4.1) 42.7 (16.3) $ 464.6 $ 84.9 38.3 15.4 0.4 3.6 10.0 10.9 3Q'19 $ $ (87.4) $ (113.9) $ (1,109.0) (81.3) (264.7) (22.8) (9.3) $ 154.2 $ 198.7 68.1 (4.1) 0.2 29.3 $ 189.5 (15.3) 38.8 38.9 11.2 0.3 (10.8) 14.9 10.8 4Q'19 (10.0) 94.1 5.7 (4.0) 0.1 25.1 (1.8) $ (170.1) $ (44.2) 34.9 13.4 0.3 (1.0) 29.2 9.9 (8.9) 1Q'20 $ 33.6 (3.9) (77.7) 98.3 $ (1,379.8) $ (580.1) 31.7 3.0 0.2 11.2 8.0 4.5 (8.2) $ (529.7) LTM 1Q'19 $ 152.6 276.5 38.7 (18.2) (5.2) 92.6 (45.4) $ 491.6 $ 103.9 203.8 29.7 1.1 (10.7) 51.7 66.9 7.9 9.2 (45.9) $ 417.6 LTM 1Q'20 $ (1,143.0) 87.6 91.1 (16.1) 0.3 19.4 64.9 $ (895.8) $ (500.6) 143.8 43.0 1.2 3.0 62.1 36.1 (36.4) $ (247.8) FY'18 $ (42.7) $ 48.8 11.7 (18.9) (4.9) 92.5 (59.7) 26.8 $ 7.4 252.2 22.3 1.1 (6.2) 34.3 66.9 7.8 9.1 (48.7) $ 346.2 $ FY¹19 267.8 $ 590.9 140.9 (16.2) 0.3 117.5 (33.5) $1,067.7 $ 225.5 151.5 52.0 1.3 (14.3) 75.0 0.1 33.3 (33.8) 490.6 23#24Reconciliation for Total Segment Information, continued RECONCILIATION OF TOTAL INVESTMENTS ATTRIBUTABLE TO THE CARLYLE GROUP INC. (Dollars in millions) INVESTMENTS, EXCLUDING PERFORMANCE ALLOCATIONS Less: Amounts attributable to non-controlling interests in Consolidated Funds Plus: Investments in Consolidated Funds, eliminated in consolidation. Less: Strategic equity method investments in NGP Management¹ Less: Investment in NGP general partners accrued performance allocations 1 Less: Mark-to-Market gains associated with strategic equity menthod investments in Fortitude Re² TOTAL INVESTMENTS ATTRIBUTABLE TO THE CARLYLE GROUP INC. Less: CLO loans and other borrowings attributable to The Carlyle Group Inc. 3 TOTAL INVESTMENTS ATTRIBUTABLE TO THE CARLYLE GROUP INC., NET OF CLO LOANS AND OTHER BORROWINGS 03/31/20 $ 2,639.0 (191.8) 63.1 (379.3) (539.1) 1,591.9 (305.2) $ 1,286.7 RECONCILIATION OF ACCRUED PERFORMANCE ALLOCATIONS (Dollars in millions) ACCRUED PERFORMANCE ALLOCATIONS, NET OF ACCRUED GIVEBACK OBLIGATIONS Plus: Accrued performance allocations from NGP Carry Funds4 Less: Accrued performance allocation-related expense Plus: Receivable for giveback obligation from current and former employees Less: Deferred taxes on accrued performance allocations Less: Net accrued performance allocations attributable to non-controlling interests in consolidated entities NET ACCRUED PERFORMANCE REVENUES BEFORE TIMING DIFFERENCES Plus: Timing differences between the period when accrued performance allocations are realized and the period they are collected/distributed NET ACCRUED PERFORMANCE REVENUES ATTRIBUTABLE TO THE CARLYLE GROUP INC. (3) Of the $322.8 million in CLO loans and other borrowings as of March 31, 2020, $305.2 million are collateralized by investments attributable to The Carlyle Group Inc. (4) Accrued performance allocations are presented as an investment in the U.S. GAAP balance sheet. 03/31/20 $ 2,729.7 (1) The Company has equity interests in NGP Management Company, L.L.C. ("NGP Management"), the general partners of certain carry funds advised by NGP, and principal investments in certain NGP funds. These equity interests are accounted for as investments under the equity method of accounting. Total investments attributable to The Carlyle Group Inc. excludes the strategic equity method investment in NGP Management and investments in the general partners of certain NGP carry funds. (2) The adjusted strategic equity method investment in Fortitude Re of $538.8 million includes $129.8 million of adjusted net income for the period from closing through March 31, 2020, and excludes $539.1 million of unrealized mark-to-market gains associated with our pro rata share of the changes in fair value of embedded derivatives related to certain reinsurance contracts included in Fortitude Re's U.S. GAAP financial statements. (1,502.3) 1.4 (40.4) (1.7) 1,186.7 14.1 $ 1,200.8 24#25GAAP Statement of Operations (Unaudited) (Dollars in millions, except per share amounts) REVENUES Fund management fees Incentive fees Investment income (loss) Performance allocations. Principal investment income (loss) Total investment income (loss) Interest and other income Interest and other income of Consolidated Funds Total Revenues EXPENSES Compensation and benefits Cash-based compensation and benefits Equity-based compensation Performance allocations and incentive fee related compensation Total compensation and benefits General, administrative and other expenses Interest Interest and other expenses of Consolidated Funds Other non-operating expenses (income) Total Expenses Net investment gains (losses) of consolidated funds Income (loss) before provision for income taxes Provision (benefit) for income taxes Net income (loss) Net income (loss) attributable to non-controlling interests in consolidated entities Net income (loss) attributable to Carlyle Holdings Net income (loss) attributable to non-controlling interests in Carlyle Holdings Net income (loss) attributable to The Carlyle Group Inc. Net income attributable to Series A Preferred Unitholders Series A Preferred Unit redemption premium Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders Net income (loss) attributable to The Carlyle Group Inc. per common share Basic Diluted 1Q'19 $ 353.4 8.1 349.1 301.8 650.9 22.2 52.4 1,087.0 GA GA 210.5 36.0 185.4 431.9 112.5 19.7 38.1 0.3 602.5 (14.2) 470.3 24.0 446.3 (4.5) 450.8 307.9 142.9 5.9 $ 137.0 $ 1.25 $ 1.18 1Q'20 $ 355.9 8.9 (937.6) (253.3) (1,190.9) 27.4 53.0 (745.7) 204.3 29.1 (442.5) (209.1) 69.6 23.9 45.6 0.2 (69.8) (113.1) (789.0) (80.0) (709.0) (97.0) (612.0) (612.0) $ (612.0) $ (1.76) $ (1.76) LTM 1Q'19 LTM 1Q'20 $1,360.9 32.0 663.9 434.0 1,097.9 101.0 219.6 2,811.4 769.9 191.0 403.7 1,364.6 478.2 84.0 166.8 1.1 2,094.7 (11.7) 705.0 $1,478.7 36.7 (487.6) 214.2 (273.4) 102.5 199.8 1,544.3 827.2 133.1 (191.2) 769.1 451.5 86.3 139.3 1.2 1,447.4 (122.8) (25.9) On January 1, 2020, The Carlyle Group L.P. (the "Partnership") completed its conversion from a Delaware limited partnership to a Delaware corporation, The Carlyle Group Inc. Information reported for periods prior to the Conversion on January 1, 2020 reflect the results of the Partnership. For periods subsequent to Conversion, Net income (loss) attributable to Carlyle Holdings refers to the Net income (loss) of The Carlyle Group Inc. and its consolidated subsidiaries, net of non-controlling interests in consolidated entities. LTM results for the provision (benefit) for income taxes and net income (loss) attributable to Carlyle Holdings are not meaningful due to the change in our structure in connection with the Conversion. See Notes at end of document. 25#26GAAP Balance Sheet (Unaudited) (Dollars in millions) ASSETS Cash and cash equivalents Cash and cash equivalents of Consolidated Funds Restricted cash Investments, including performance allocations of $2,752.1 million Investments of Consolidated Funds Due from affiliates and other receivables, net Due from affiliates and other receivables of Consolidated Funds, net Fixed assets, net Lease right-of-use assets, net Deposits and other Intangible assets, net Deferred tax assets. Total assets LIABILITIES & EQUITY Debt obligations Loans payable of Consolidated Funds Accounts payable, accrued expenses and other liabilities Accrued compensation and benefits Due to affiliates Deferred revenue Deferred tax liabilities Other liabilities of Consolidated Funds Lease liabilities Accrued giveback obligations Total liabilities Total equity Total liabilities and equity Consolidated Operating Entities $ $ $ $ 1,007.9 - 0.6 5,454.2 232.8 120.6 194.2 53.9 58.3 304.5 7,427.0 301.6 1,773.3 456.1 296.3 36.4 2,188.3 $ - 273.8 22.4 $ 5,348.2 2,078.8 7,427.0 $ $ As of March 31, 2020 Consolidated Funds 170.9 4,465.3 88.8 0.5 4,725.5 $ 4,196.3 ||||| 9 471.0 $ 4,667.3 58.2 4,725.5 $ Eliminations (63.1) (4.8) | | | | | (67.9) (67.9) (67.9) $ $ $ $ Consolidated 1,007.9 170.9 0.6 5,391.1 4,465.3 228.0 88.8 120.6 194.2 54.4 58.3 304.5 12,084.6 2,188.3 4,196.3 301.6 1,773.3 456.1 296.3 36.4 471.0 273.8 22.4 10,015.5 2,069.1 12,084.6 26