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Fair Value Measurement
9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurement 3. Fair Value Measurement
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the
fair value hierarchy levels as disclosed in Note 2, Summary of Significant Accounting Policies, as of September 30, 2024:
(Dollars in millions)
Level I
Level II
Level III
Total
Assets
Investments of Consolidated Funds(1):
Equity securities(2)
$
$
$486.9
$486.9
Bonds
503.1
503.1
Loans
5,920.5
5,920.5
6,910.5
6,910.5
Investments in CLOs and other:
Investments in CLOs
464.5
464.5
Other investments(3)
41.8
21.5
53.4
116.7
41.8
21.5
517.9
581.2
Foreign currency forward contracts
1.7
1.7
Subtotal
$41.8
$23.2
$7,428.4
$7,493.4
Investments measured at net asset value
527.0
Total
$8,020.4
Liabilities
Loans payable of Consolidated Funds(4)(5)
$
$
$6,345.3
$6,345.3
Total
$
$
$6,345.3
$6,345.3
(1)This balance excludes $517.4 million of Investments of Consolidated Funds that are included in Investments measured at net asset
value, which relate to certain consolidated investment fund of funds in the Company’s Global Investment Solutions segment.
(2)This balance includes $371.9 million related to investments that have been bridged by the Company to investment funds and are
accounted for as consolidated VIEs as of September 30, 2024.
(3)The Level III balance excludes $56.2 million related to three corporate investments in equity securities which the Company has
elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to
ASC 321, Investments–Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is
excluded from the tabular Level III rollforward disclosures.
(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial
assets, less (i) the fair value of any beneficial interest held by the Company and (ii) the carrying value of any beneficial interests that
represent compensation for services.
(5)Loans payable of Consolidated Funds balance excludes a $186.1 million revolving credit balance.
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis by the
above fair value hierarchy levels as of December 31, 2023:
(Dollars in millions)
Level I
Level II
Level III
Total
Assets
Investments of Consolidated Funds(1):
Equity securities(2)
$
$
$377.6
$377.6
Bonds
522.5
522.5
Loans
5,862.1
5,862.1
6,762.2
6,762.2
Investments in CLOs and other:
Investments in CLOs
532.6
532.6
Other investments(3)
38.7
42.8
84.6
166.1
Subtotal
$38.7
$42.8
$7,379.4
$7,460.9
Investments measured at net asset value
502.0
Total
$7,962.9
Liabilities
Loans payable of Consolidated Funds(4)(5)
$
$
$6,298.6
$6,298.6
Total
$
$
$6,298.6
$6,298.6
(1)This balance excludes $490.9 million of Investments of Consolidated Funds that are included in Investments measured at net asset
value, which relate to certain consolidated investment fund of funds in the Company’s Global Investment Solutions segment.
(2)This balance includes $322.0 million related to investments that have been bridged by the Company to investment funds and are
accounted for as consolidated VIEs as of December 31, 2023.
(3)The Level III balance excludes $50.4 million related to two corporate investments in equity securities which the Company has
elected to account for under the measurement alternative for equity securities without readily determinable fair values pursuant to
ASC 321, Investments–Equity Securities. As a non-recurring fair value measurement, the fair value of these equity securities is
excluded from the tabular Level III rollforward disclosures.
(4)Senior and subordinated notes issued by CLO vehicles are valued based on the more observable fair value of the CLO financial
assets, less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that
represent compensation for services.
(5)Loans payable of Consolidated Funds balance excludes a $177.9 million revolving credit balance and $10.0 million of senior notes
and subordinated notes.
 
The changes in financial instruments measured at fair value for which the Company has used Level III inputs to
determine fair value are as follows (Dollars in millions):
Financial Assets
Three Months Ended September 30, 2024
 
Investments of Consolidated Funds
 
 
 
Equity
securities
Bonds
Loans
Investments in
CLOs
Other
investments
Total
Balance, beginning of period
$420.0
$489.5
$7,024.0
$494.6
$108.6
$8,536.7
Deconsolidation of funds(1)
(34.1)
(1,190.3)
2.3
(1,222.1)
Purchases
76.7
147.0
888.5
0.8
1,113.0
Sales and distributions
(1.2)
(123.1)
(310.9)
(51.1)
(8.2)
(494.5)
Settlements
(570.2)
(570.2)
Realized and unrealized gains (losses), net
Included in earnings
(8.6)
7.4
(33.4)
(2.7)
(47.0)
(84.3)
Included in other comprehensive income
16.4
112.8
20.6
149.8
Balance, end of period
$486.9
$503.1
$5,920.5
$464.5
$53.4
$7,428.4
Changes in unrealized gains (losses) included in earnings
related to financial assets still held at the reporting date
$(9.4)
$5.6
$(28.0)
$(3.6)
$(48.1)
$(83.5)
Changes in unrealized gains (losses) included in other
comprehensive income related to financial assets still held at
the reporting date
$
$13.2
$96.7
$19.8
$
$129.7
Financial Assets
Nine Months Ended September 30, 2024
 
Investments of Consolidated Funds
 
 
 
Equity
securities
Bonds
Loans
Investments in
CLOs
Other
investments
Total
Balance, beginning of period
$377.6
$522.5
$5,862.1
$532.6
$84.6
$7,379.4
Deconsolidation of funds(1)
(34.1)
(1,190.3)
2.3
(1,222.1)
Purchases
139.7
265.1
4,565.6
1.8
7.2
4,979.4
Sales and distributions
(11.3)
(265.9)
(1,841.6)
(111.6)
(9.1)
(2,239.5)
Settlements
(1,555.6)
(1,555.6)
Realized and unrealized gains (losses), net
Included in earnings
(19.1)
13.3
60.1
23.2
(29.3)
48.2
Included in other comprehensive income
2.2
20.2
16.2
38.6
Balance, end of period
$486.9
$503.1
$5,920.5
$464.5
$53.4
$7,428.4
Changes in unrealized gains (losses) included in earnings
related to financial assets still held at the reporting date
$(22.2)
$9.8
$9.1
$22.3
$(31.3)
$(12.3)
Changes in unrealized gains (losses) included in other
comprehensive income related to financial assets still held at
the reporting date
$
$2.5
$19.6
$15.4
$
$37.5
Financial Assets
Three Months Ended September 30, 2023
Investments of Consolidated Funds
Equity
securities
Bonds
Loans
Investments in
CLOs
Other
investments
Total
Balance, beginning of period
$487.6
$548.4
$5,858.4
$538.1
$81.5
$7,514.0
Deconsolidation of funds(1)
(18.4)
(18.4)
Purchases
6.3
56.4
465.7
1.0
529.4
Sales and distributions
(109.0)
(116.2)
(422.7)
(16.7)
(0.9)
(665.5)
Settlements
(172.3)
(172.3)
Realized and unrealized gains (losses), net
Included in earnings
3.2
5.2
113.0
17.2
1.2
139.8
Included in other comprehensive income
(15.1)
(95.3)
(14.9)
(125.3)
Balance, end of period
$369.7
$478.7
$5,746.8
$524.7
$81.8
$7,201.7
Changes in unrealized gains (losses) included in earnings
related to financial assets still held at the reporting date
$(1.5)
$4.4
$117.0
$17.2
$0.3
$137.4
Changes in unrealized gains (losses) included in other
comprehensive income related to financial assets still held at
the reporting date
$
$(12.7)
$(90.9)
$(14.9)
$
$(118.5)
Financial Assets
Nine Months Ended September 30, 2023
 
Investments of Consolidated Funds
 
 
 
Equity
securities
Bonds
Loans
Investments in
CLOs
Other
investments
Total
Balance, beginning of period
$430.6
$594.9
$5,352.9
$526.1
$79.4
$6,983.9
Deconsolidation of funds(1)
(18.8)
(372.2)
(391.0)
Purchases
64.8
128.0
1,903.9
1.0
2,097.7
Sales and distributions
(109.0)
(244.5)
(857.7)
(37.4)
(2.6)
(1,251.2)
Settlements
(8.2)
(451.2)
(459.4)
Realized and unrealized gains (losses), net
Included in earnings
2.1
13.3
206.3
33.1
5.0
259.8
Included in other comprehensive income
(4.8)
(35.2)
1.9
(38.1)
Balance, end of period
$369.7
$478.7
$5,746.8
$524.7
$81.8
$7,201.7
Changes in unrealized gains (losses) included in earnings
related to financial assets still held at the reporting date
$(2.8)
$7.1
$184.6
$33.1
$2.4
$224.4
Changes in unrealized gains (losses) included in other
comprehensive income related to financial assets still held at
the reporting date
$
$(5.1)
$(40.5)
$1.9
$
$(43.7)
(1) As a result of the deconsolidation of three funds during each of the three and nine months ended September 30, 2024 and one fund during each
of the three and nine months ended September 30, 2023.
 
Financial Liabilities
Loans Payable of Consolidated Funds
Three Months Ended September 30,
 
2024
2023
Balance, beginning of period
$7,623.4
$6,383.9
Deconsolidation of funds(1)
(1,269.3)
Borrowings
591.6
5.4
Paydowns
(707.9)
(2.0)
Sales
(156.2)
Realized and unrealized (gains) losses, net
Included in earnings
(27.5)
131.0
Included in other comprehensive income
135.0
(112.4)
Balance, end of period
$6,345.3
$6,249.7
Changes in unrealized (gains) losses included in earnings related to
financial liabilities still held at the reporting date
$(19.1)
$132.9
Changes in unrealized (gains) losses included in other comprehensive
income related to financial liabilities still held at the reporting date
$135.2
$(112.1)
Financial Liabilities
Loans Payable of Consolidated Funds
 
Nine Months Ended September 30,
 
2024
2023
Balance, beginning of period
$6,298.6
$5,491.6
Deconsolidation of funds(1)
(1,269.3)
Borrowings
4,138.5
875.2
Paydowns
(1,174.3)
(51.0)
Sales
(1,741.9)
(276.8)
Realized and unrealized (gains) losses, net
Included in earnings
67.7
252.7
Included in other comprehensive income
26.0
(42.0)
Balance, end of period
$6,345.3
$6,249.7
Changes in unrealized (gains) losses included in earnings related to
financial liabilities still held at the reporting date
$71.1
$225.5
Changes in unrealized (gains) losses included in other comprehensive
income related to financial liabilities still held at the reporting date
$30.2
$(36.1)
(1) As a result of the deconsolidation of three funds during each of the three and nine months ended September 30, 2024.
Realized and unrealized gains and losses included in earnings for Level III investments for investments in CLOs and
other investments are included in investment income (loss), and such gains and losses for investments of Consolidated Funds
and loans payable of the Consolidated Funds are included in net investment gains (losses) of Consolidated Funds in the
condensed consolidated statements of operations.
Gains and losses included in other comprehensive income for all Level III financial asset and liabilities are included in
accumulated other comprehensive loss and non-controlling interests in consolidated entities.
The following table summarizes quantitative information about the Company’s Level III inputs as of September 30, 2024:
Fair Value at
Valuation Technique(s)
Unobservable Input(s)
Range
(Weighted Average)
(Dollars in millions)
September 30, 2024
Assets
Investments of Consolidated Funds:
Equity securities
$4.1
Consensus Pricing
Indicative Quotes ($ per share)
0.00 - 130.17 (0.00)
416.3
Discounted Cash Flow
Discount Rates
10% - 12% (11%)
Terminal Growth Rate
0% - 7% (5%)
Comparable Multiple
EBITDA Multiple
7.5x - 23.9x (12.6x)
TCF Multiple
26.5x - 26.5x (26.5x)
10.2
Discounted Cash Flow
Discount Rates
17% - 17% (17%)
Constant Prepayment Rate
6% - 6% (6%)
Constant Default Rate
1% - 2% (1%)
Severity
60% - 60% (60%)
Recovery Rate
40% - 40% (40%)
56.3
Other(1)
N/A
N/A
Bonds
503.1
Consensus Pricing
Indicative Quotes (% of Par)
29 - 103 (92)
Loans
5,843.5
Consensus Pricing
Indicative Quotes (% of Par)
0 - 103 (97)
63.7
Discounted Cash Flow
Discount Rates
7% - 19% (13%)
7.0
Discounted Cash Flow
Discount Rates
16% - 16% (16%)
Constant Prepayment Rate
8% - 14% (11%)
Constant Default Rate
1% - 1% (1%)
Recovery Rate
0% - 0% (0%)
6.3
Other(1)
N/A
N/A
6,910.5
Investments in CLOs:
Senior secured notes
407.6
Consensus Pricing with
Discounted Cash Flow
Indicative Quotes (% of Par)
79 - 102 (99)
Discount Margins (Basis
Points)
108 - 1,500 (234)
Default Rates
2% - 2% (2%)
Recovery Rates
60% - 60% (60%)
Subordinated notes and preferred
shares
56.9
Consensus Pricing with
Discounted Cash Flow
Indicative Quotes (% of Par)
1 - 107 (37)
Discount Rates
9% - 35% (18%)
Default Rates
1% - 2% (2%)
Recovery Rates
60% - 60% (60%)
Other investments:
BDC preferred shares
50.3
Other(2)
Net Asset Value per Share
16.85 - 16.85 (16.85)
Aviation subordinated notes
3.1
Discounted Cash Flow
Discount Rates
21% - 21% (21%)
Total
$7,428.4
Liabilities
Loans payable of Consolidated Funds:
Senior secured notes
$6,171.6
Other(3)
N/A
N/A
Subordinated notes and preferred
shares
163.5
Consensus Pricing with
Discounted Cash Flow
Indicative Quotes (% of Par)
11 - 89 (54)
Discount Rates
5% - 35% (14%)
Default Rates
1% - 2% (2%)
Recovery Rates
60% - 60% (60%)
10.2
Other(1)
N/A
N/A
Total
$6,345.3
(1)Fair value approximates transaction price that was in close proximity to the reporting date.
(2)The valuation technique for the investment in BDC preferred shares changed at September 30, 2024 due to a proposed merger between
CSL and another Carlyle-advised BDC (see Note 9, Related Party Transactions, for more information).
(3)Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,
less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent
compensation for services.
The following table summarizes quantitative information about the Company’s Level III inputs as of December 31, 2023:
Fair Value at
Valuation Technique(s)
Unobservable Input(s)
Range
(Weighted Average)
(Dollars in millions)
December 31, 2023
Assets
Investments of Consolidated Funds:
Equity securities
$3.3
Consensus Pricing
Indicative Quotes ($ per share)
0.00 - 208.38 (0.11)
366.5
Discounted Cash Flow
Discount Rates
10% - 11% (10%)
Terminal Growth Rate
0% - 7% (5%)
Comparable Multiple
EBITDA Multiple
12.7x - 12.7x (12.7x)
TCF Multiple
24.3x - 24.3x (24.3x)
7.8
Other(1)
N/A
N/A
Bonds
522.5
Consensus Pricing
Indicative Quotes (% of Par)
30 - 105 (90)
Loans
5,829.3
Consensus Pricing
Indicative Quotes (% of Par)
0 - 102 (95)
11.0
Discounted Cash Flow
Discount Rates
7% - 16% (15%)
9.4
Discounted Cash Flow
Discount Rates
17% - 17% (17%)
Constant Prepayment Rate
8% - 8% (8%)
Constant Default Rate
1% - 1% (1%)
Recovery Rate
0% - 0% (0%)
Other
12.4
Other(1)
N/A
N/A
6,762.2
Investments in CLOs
Senior secured notes
472.2
Discounted Cash Flow with
Consensus Pricing
Indicative Quotes (% of Par)
72 - 101 (96)
Discount Margins (Basis
Points)
139 - 1,600 (319)
Default Rates
2% - 2% (2%)
Recovery Rates
60% - 60% (60%)
Subordinated notes and preferred
shares
59.4
Discounted Cash Flow with
Consensus Pricing
Indicative Quotes (% of Par)
6 - 90 (40)
Discount Rate
11% - 40% (21%)
Default Rates
1% - 2% (2%)
Recovery Rates
60% - 60% (60%)
1.0
Other(1)
N/A
N/A
Other investments:
BDC preferred shares
81.7
Market Yield Analysis
Market Yields
11% - 11% (11%)
Aviation subordinated notes
2.9
Discounted Cash Flow
Discount Rates
21% - 21% (21%)
Total
$7,379.4
Liabilities
Loans payable of Consolidated Funds:
Senior secured notes
$6,090.1
Other(2)
N/A
N/A
Subordinated notes and preferred
shares
190.0
Discounted Cash Flow with
Consensus Pricing
Indicative Quotes (% of Par)
16 - 103 (41)
Discount Rates
14% - 30% (21%)
Default Rates
2% - 2% (2%)
Recovery Rates
60% - 60% (60%)
18.5
Other(1)
N/A
N/A
Total
$6,298.6
(1)Fair value approximates transaction price that was in close proximity to the reporting date.
(2)Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of the CLO financial assets,
less (i) the fair value of any beneficial interests held by the Company and (ii) the carrying value of any beneficial interests that represent
compensation for services.
The significant unobservable inputs used in the fair value measurement of investments of the Company’s consolidated
funds are indicative quotes. Significant decreases in indicative quotes in isolation would result in a significantly lower fair value
measurement.
The significant unobservable inputs used in the fair value measurement of the Company’s investments in CLOs and other
investments include indicative quotes, discount margins, discount rates, default rates, and recovery rates. Significant decreases
in indicative quotes or recovery rates in isolation would result in a significantly lower fair value measurement. Significant
increases in discount margins, discount rates or default rates in isolation would result in a significantly lower fair value
measurement.
The significant unobservable inputs used in the fair value measurement of the Company’s loans payable of Consolidated
Funds are discount rates, default rates, recovery rates and indicative quotes. Significant increases in discount rates or default
rates in isolation would result in a significantly lower fair value measurement. Significant decreases in recovery rates or
indicative quotes in isolation would result in a significantly lower fair value measurement.