Accelerating Growth - The Carlyle Group

1 Accelerating GrowthANNUAL REPORT 2020As a global investment firm, we work across five continents to leverage a diverse, experienced network of professionals to deliver attractive investment performance, as well as our best insights and innovative thinking to drive positive builds better portfolios, stronger businesses and communities for a better growthis about creating long-term value for our investors, companies, people, shareholders and communities. LETTER TO SHAREHOLDERS2020: Looking Back and Moving ForwardINVESTMENT SOLUTIONSR igorous Investment Selection and Portfolio Construction2020: Carlyle BY THE NUMBERSACCELERATING IMPACTB etter Outcomes Lasting ValueACCELERATING PROGRESSD iversity, Equity and InclusionFINANCIALSF inancial Overview and OutlookACCELERATING SUCCESSThe Carlyle AdvantageACCELERATING OUR BUSINESS A Focus on Building Large, Scalable Businesses for the Long TermACCELERATING TALENTOur People and CultureGLOBAL PRIVATE EQUITYA Steady Market Leader with Superior Long-Term ResultsGLOBAL CREDITC reative Solutions for Borrowers, Opportunities for Investors04170618210723102412152 Carlyle 2020 ANNUAL REPORT/ INTRODUCTIONSYDNEYBEIJINGHONG KONG (2)

2 SHANGHAIMUMBAIJAKARTATOKYOSEOULSINGAPORE PARISMUNICHDUBLINMILANLUXEMBOURGAMSTERDA MBARCELONALONDONDUBAIINDIANAPOLISLOS ANGELESMIAMIMENLO PARKNEW YORKSAN FRANCISCO (2)WASHINGTON, DCS O PAULOLIMAGLOBAL REACH LOCAL INSIGHTS29 OFFICES1,800+PROFESSIONALSFiveCONTINENTS 3 Carlyle 2020 ANNUAL REPORT/ INTRODUCTIONAs I write this letter, we have been experiencing the effects of a global pandemic on our business and the world around us for over a year. Changes have accelerated everywhere, and our lives have been transformed as we all work through personal and professional challenges. The impact of the pandemic has been widespread and uneven, generating a large dispersion of outcomes across industries and widening already concerning disparities among regions and within society.

3 There is no playbook for corporate leaders on how to deal with an event of this magnitude. At Carlyle , we put our immediate focus on, and continue to hold as a top priority, the health and safety of our people. In early 2020, we rapidly switched to a remote work environment across our global workforce as the pandemic spread across the world. We recognized early that COVID-19 would have long-lasting implications on how we live and work, so our mentality shifted quickly to adapting and innovating, rather than waiting and seeking a return to normal. Our investment teams functioned at a high level, our operations remained seamless and we relied on the strength of our culture as we adjusted to the new environment.

4 Around the world, we came together with dedication and resolve, staying true to our values and becoming more connected than ever before. As a result, we have been able to evolve and make decisions with speed and confidence. I have never had more pride in our organization and our people than over the past year, and I am thankful that we have emerged stronger from the challenges we faced together in 2020. 2020: Looking Back and Moving ForwardPictured Left: Kewsong Lee, Chief Executive OfficerLETTER TO SHAREHOLDERS4 Carlyle 2020 ANNUAL REPORT/ LETTER TO SHAREHOLDERSOUR PERFORMANCE: BUILDING ON STRENGTHBy all measures, Carlyle generated strong financial results in 2020.

5 We delivered record Fee Related Earnings of $520 million, with margins in excess of 30%. Our portfolio performed very well, which drove a year-end record Net Accrued Carry balance of $ billion. And, we remained active and executed across our platform, raising over $27 billion of new capital, investing $18 billion and realizing $21 billion in proceeds. Despite the difficult environment, the firm delivered Distributable Earnings of $762 million, which is the highest achieved in the past five exceptional results in 2020 are a reflection of the significant work we have done over the last several years to position Carlyle for success, including: Simplifying the structure of our organization into three business segments Global Private Equity, Global Credit and Investment Solutions and streamlining product offerings to better focus our efforts.

6 Implementing a platform-oriented approach, emphasizing broad scale, global reach and deep industry expertise, helping us invest better while also driving operating leverage. And, importantly for our shareholders, transitioning Carlyle to a true C-Corporation, providing simplicity, transparency and complete alignment one share, one vote. Doubling down on our commitment to Impact, we expanded our board diversity goal to 30% of all directors in Corporate Private Equity controlled portfolio companies by 2023. More recently, in February 2021, we announced the largest private equity ESG-linked credit facility in the US of $ billion, creating alignment as we link the cost of financing to our ability to meet these targets.

7 We believe initiatives like these will continue to deliver more sustainable value for all of our stakeholders and we look forward to building on our leadership position. OUR STRATEGY: THINKING BIGGER, PERFORMING BETTER AND MOVING FASTERS everal weeks ago, we hosted a comprehensive investor day and detailed our strategic plan for Accelerating Growth over the next four years. The plan is centered on three key priorities: 1. Accelerating the scope and scale of our biggest and best businesses;2. Expanding in adjacencies to drive additional Growth , particularly in our Capital Markets and Carlyle Insurance Solutions businesses; and3. Continuing to institutionalize the firm by managing ourselves more effectively and efficiently.

8 In short, we are thinking bigger, performing better and moving faster. As we do, our goal is to raise more than $130 billion of new capital and double our Distributable Earnings in the plan s timeframe. We believe our industry also has favorable tailwinds supporting our Growth plans, including: Increasing allocations to the asset class as investors seek higher returns; Desire on the part of fund investors to get more from fewer General Partner relationships; and Growing demand for private capital as opportunities from secular changes and disruption pandemic only accelerated the rate at which the world is changing and its impact on business models, how we live and work, consumer preferences, geopolitical dynamics and the health and fabric of our society.

9 We are in the midst of significant global changes, and at Carlyle , we are continuing to evolve and position ourselves to capture compelling opportunities. We strive to invest wisely and responsibly across cycles for the benefit of our stakeholders over the long-term and we have an unwavering commitment to this pursuit. With our strategic plan in place and our focus on performance, I have great confidence in our ability to deliver outstanding results. OUR VALUES: LEADING WITH TRUST, INTEGRITY AND PARTNERSHIPIn closing, I want to express my gratitude to the entire Carlyle team for their hard work and dedication to the firm. We have endured, adapted and evolved over the years.

10 Throughout our journey, we have always stayed true to our core values of trust, integrity and partnership these same values will continue to guide our efforts in the years ahead. Despite the complex environment, we are optimistic about the future and what s to come, and we thank you for your support and partnership. KEWSONG LEEC hief Executive OfficerMarch 29, 20215 Carlyle 2020 ANNUAL REPORT/ LETTER TO SHAREHOLDERS*All data as of December 31, 20202020: Carlyle by the NumbersDISTRIBUTABLE EARNINGS$762MN FEE RELATED EARNINGS$520MN DISTRIBUTABLE EARNINGS PER COMMON SHARE$ FIRM RESULTSTOTAL FUNDS RAISED$ INVESTORS ACROSS 95 COUNTRIES2,650+OF COMMITMENTS FROM FUND INVESTORS IN 5+ STRATEGIES75%RAISING CAPITAL RECORD LEVEL OF ASSETS UNDER MANAGEMENT (AUM)