Company: CGABL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001527166-25-000006
Chunk: 16

Company: Carlyle Group Inc.
Filing Date: 2025-02-27
Form: 10-K
Item: Item 1A
Chunk 16
---
 including semiconductors, 

which may impact sectors and industries regardless of their business proximity to the Taiwan Strait.

Over the twelve months ending on December 31, 2024, the S&P 500 rose by 23.0%, while the MSCI All Country 

World Index (MSCI) increased by 15.0%. This robust full-year performance masks interim volatility. Notably, a shift in 

Japanese monetary policy drove a sharp appreciation of the yen. This in turn disrupted long-standing carry trades whose 

funding leg rested on Japan’s low rates. The surge in the currency value triggered a selloff in Japanese equity markets. Liquidity 

pressures further exacerbated the selloff. For example, on August 5, 2024, the Nikkei 225 fell 12.4%, while the TOPIX fell 

12.2%, their largest respective single day declines since 1987. Global equity markets were impacted as well, albeit to a lesser 

extent. These series of events highlighted how seemingly innocuous and not wholly unexpected changes in policies or other 

market conditions may quickly cascade into more significant movements. Factors that impact global markets, including 

inflation, interest rates, trade barriers such as tariffs, regulatory, and political environments, can be unpredictable and investor 

sentiment could change quickly in the future, while market volatility could accelerate in the face of negative macro, monetary, 

or geopolitical developments. If global markets become unstable, it is possible sellers of assets may readjust their valuations 

and attractive investment opportunities may become available. On the other hand, the valuations of certain assets we planned to 

sell in the near future could be negatively impacted, as well as the valuations of our portfolio companies and, as a result, our 

accrued performance revenues.

Market volatility also could adversely affect our fundraising efforts in several ways. Investors often allocate to 

alternative asset classes (including private equity) based on a target percentage of their overall portfolio. If the value of an 

investor’s portfolio decreases as a whole, the amount available to allocate to alternative assets (including private equity) could 

decline. In addition, investors often evaluate the amount of distributions they have received from existing funds when 

considering commitments to new funds. Through the first half of 2024, liquidity shortfalls across all private market asset classes 

produced persistent and meaningful negative cash flows—more capital calls than distributions—for 14 consecutive quarters, a 

phenomenon not seen on such a