Company: CGABL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001527166-25-000006
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Company: Carlyle Group Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7A
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ITEM 7A.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, performance allocations and principal investment income.

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 the 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 subject to approval by both the fund-

level managing directors, as well as the investment committee, which is generally composed of one or more of the three 

founding partners, one “sector” head, one or more advisors and senior investment professionals associated with that particular 

fund. 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.

Effect on Fund Management Fees

Management fees will only be directly affected by short-term changes in market conditions to the extent they are based 

on NAV or represent permanent impairments of value. These management fees will be increased (or reduced) in direct 

proportion to the effect of changes in the market value of our investments in the related funds. In addition, the terms of the 

governing agreements with respect to certain of our carry funds provide that the management fee base will be reduced when the