CHARTS & OBJECTS Text #1 Header Color #1 R: 153 Col 8 Row 5 G: 255 The Column / R – 255 B: 51 Row values can G – 255 B - 255 be found in the Text # 2 “area” color Color #2 Body-white Col 5 Row 2 R: 255 choice section R – 0 for choosing G: 255 G – 128 B: 255 pie & column B - 128 chart colors Color #3 Col 2 Row 4 The RGB R – 255 Text #3 values can be G – 204 B - 0 Emphasis found at R: 102 Fill Effects > Color #4 G: 255 Col 2, Row 1 B: 255 More Fill R - 153 Colors > G - 51 Custom B - 0 Black for good Color #5 contrast with Col 6 Row 3 bright R – 51 background G – 102 Investor Day elements B - 255 Text #4 Color #6 (Black) Col 3 Row 3 R: 0 R – 153 November 11, 2013 G: 0 G – 255 B: 0 B - 51
Color #7 Col 8 Row 4 R – 192 G – 192 B - 192 R-0 R-43 1 G-101 G-131 9 B-179 B-35
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B-0 Investor Day Overview B-127 R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 Daniel Harris White 6 G-92 R-255 B-150 G-255
Managing Director & Head of Public Market Investor Relations B-255 Text Colors
R-0 November 11, 2013 Dark Blue G-161 R-0 7 B-224 G-74
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R-145 This presentation may contain forward‐looking statements within the meaning of Section 27A R-156 2 G-213 G-226 10 B-242 of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These B-146 statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources and other R-61 R-163 3 G-175 non‐historical statements. You can identify these forward‐looking statements by the use of G-143 11 B-46 words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” B-187 “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative R-145 version of these words or other comparable words. These statements are subject to risks, R-127 4 G-229 G-127 12 B-0 uncertainties and assumptions, including those described under the section entitled “Risk Factors” in our Annual Report on Form 10‐K for the year ended December 31, 2012 filed with B-127 the SEC on March 14, 2013, as such factors may be updated from time to time in our periodic R-85 R-219 G-67 filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors 13 5 G-217 B-113 should not be construed as exhaustive and should be read in conjunction with the other B-217 cautionary statements that are included in this release and in our filings with the SEC. We R-118 undertake no obligation to publicly update or review any forward‐looking statements, whether White 6 G-92 as a result of new information, future developments or otherwise, except as required by R-255 B-150 G-255
applicable law. B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 This release does not constitute an offer for any Carlyle fund. G-74
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R-145 Informational Purposes Only. This presentation has been prepared by The Carlyle Group L.P. (together with its affiliates, “Carlyle”) and may only be used for informational purposes only. This presentation sets forth management’s views as of November 11, 2013, unless otherwise indicated. Carlyle undertakes no obligation to R-156 2 G-213 update the information contained herein. Neither Carlyle nor any investment fund managed or sponsored by Carlyle or its affiliates or NGP Energy Capital Management G-226 10 (any such entity, a “Fund”) makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein. Unless B-242 otherwise specified, the source for all graphs, charts and other information contained herein is Carlyle. In addition, certain information contained herein has been B-146 obtained from published and non-published sources prepared by other parties, which in certain cases have not been updated through the date hereof. While such information is believed to be reliable for the purpose used in this presentation, Carlyle does not assume any responsibility for the accuracy or completeness of such information and such information has not been independently verified by Carlyle. Nothing in this presentation constitutes the provision of any tax, accounting, financial, R-61 investment, regulatory, legal or other advice by Carlyle or its advisors. This presentation may not be referenced, quoted or linked by website, in whole or in part, except as agreed to in writing by Carlyle. R-163 3 G-175 Not an Offer. 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 G-143 11 B-46 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 B-187 in any 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 R-145 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 R-127
4 G-229 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. G-127 12
B-0 Performance Data. Past performance is not indicative of future results and there can be no assurance that any Carlyle fund or strategy will achieve comparable results, B-127 or that any investments made by Carlyle in the future will be profitable. The fund return information reflected in this presentation is not indicative of the performance of The Carlyle Group L.P. 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. As used throughout this document, and unless otherwise indicated, Gross Internal Rate of Return (“Gross R-85 IRR”) represents the annualized IRR 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 expected to be substantial. Net Internal Rate of Return (“Net IRR”) R-219 G-67 represents the annualized IRR for the period indicated on limited partner invested capital based on contributions, distributions and unrealized value after management 13 5 fees, expenses and carried interest. Gross multiple of invested capital (“Gross MOIC”) represents total fair value, before management fees, expenses and carried interest, G-217 B-113 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 B-217 distributions and/or return of capital represents at least 85% of invested capital and such investment is not yet fully realized. This definition is used to calculate the Realized/Partially Realized Gross IRR and Gross MOIC. Unless otherwise specified, LTM, or last twelve months, refers to the period Q4 2012 through Q3 2013. R-118 Throughout this presentation, fundraising data excludes acquisitions, but includes fundraising activity post-acquisition. White G-92 AlpInvest Performance Data. AlpInvest Realized Gross IRR for primary funds assumes every distribution received from a primary fund investment to be part of the R-255 6 realized track record. For each primary fund investment, the determination of the cost basis percentage corresponding to related distributions, as provided by such B-150 underlying fund’s general partner, is calculated as follows: (i) the sum of (A) the total amount of distributions received from such underlying fund that represent a return G-255 of invested capital in underlying portfolio investments (“ROIC”), plus (B) the greater of (x) the total amount of invested capital in underlying portfolio investments (“IC”) B-255 minus ROIC minus the FMV of the underlying fund and (y) zero, divided by (ii) IC. Any underlying fund expenses related to a primary fund investment are allocated to Text Colors the realized track record pro-based on the relevant cost basis percentage. In the realized gross IRR calculation the timing of the investment cash flows for the primary R-0 fund investments is based on a first out principle at a primary fund investment level (independent of the underlying portfolio companies generating the proceeds). For Dark Blue example if 60% of a primary fund investment’s cost basis is realized, the first 60% of cash outflows at the primary fund investment level, i.e. paid capital calls, are G-161 considered to be the realized cash outflows in the realized track record IRR calculation. For this purpose 60% of the first investment related capital calls and 60% of the R-0 7 B-224 fund expenses related capital calls are taken into account as cash outflows for this primary fund investment. Actual realized returns on unrealized investments may differ G-74 materially from historical realized returns as calculated on the methodology described above. The FMV of the primary investments portfolio is not included as a terminal B-136 value in performance calculations for realized primary fund investments. Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 4 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Important Information B-35
R-145 Case Studies. This presentation contains selected case studies, Carlyle believes these selected case studies should be considered as a reflection of R-156 Carlyle’s investment process, and references to these particular portfolio companies should not be considered a recommendation of any particular 2 G-213 security, investment, or portfolio company. The information provided about these portfolio companies is intended to be illustrative, and is not intended G-226 10 B-242 to be used as an indication of the current or future performance of Carlyle’s portfolio companies. The investments described in the selected case studies B-146 were not made by any single fund or other product and do not represent all of the investments purchased or sold by any fund or other product.. Projections. Target, hypothetical or estimated fund performance returns (and other comparable phrases), management fee revenue and performance fee generation are hypothetical in nature and are shown for illustrative, informational purposes only. The target, hypothetical or estimated returns, R-61 revenue sand fees, are based upon Carlyle’s view of the potential returns for funds and investments and are subject to numerous factors and R-163 3 G-175 assumptions. No representation or warranty is made as to the reasonableness of the assumptions made or that all assumptions used in achieving the G-143 11 returns have been stated or fully considered. Changes in the assumptions may have a material impact on the projected returns presented. Actual results B-46 may vary significantly from the hypothetical illustrations shown. B-187 Energy Funds and Hedge Funds. Detailed information about Carlyle’s management fees and performance fees is available in Carlyle’s public filings. Please note that certain metrics and projections contained in this Presentation include the Legacy Energy Funds and Carlyle’s hedge funds. R-145 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 R-127 G-229 both Carlyle and Riverstone act as investment advisers to each of the Legacy Energy Funds. Currently, Carlyle is only entitled to a revenue interest in 4 NGP Energy Capital Management. The NGP Energy Capital Management funds are referred to herein as “NGP management fee funds.” With respect to G-127 12 B-0 Carlyle’s hedge funds (Claren Road Asset Management, Emerging Sovereign Group and Vermillion Asset Management), Carlyle has a specified percentage of the earnings of the businesses based on Carlyle’s 55% ownership in the management companies. B-127 Financial Information. In addition, for purposes of the non-financial operating and statistical data included in this presentation, including the R-85 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 R-219 G-67 13 5 activity during such period. With respect to capital commitments raised in foreign currencies, the conversion to U.S. dollars is based on the exchange G-217 B-113 rate as of the date of closing of such capital commitment. This presentation includes certain Non-GAAP financial measures, including Distributable Earnings (“DE”) and EBITDA. These Non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial B-217 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 R-118 for the definition of “carry funds,” “Fee-earning assets under management” or “Fee-earning AUM,” and “Assets under management” or “AUM”. White Comparison to Indexes and Peers. This presentation includes comparisons of the performance of certain Carlyle funds to public indices, including 6 G-92 R-255 the S&P 500, the MSCI All Country World Index (ACWI), the HFRI Hedge Fund Index (HFRI) and the LSTA All Loans Index (LSTA). There are significant G-255 B-150 differences between the types of securities and assets typically acquired by U.S. and global buyout funds and the investments covered by the S&P 500, HFRI, LSTA, ACWI and other indices. Specifically, U,S. and global buyout funds typically make investments in securities and other assets that have a B-255 greater degree of risk and volatility, and less liquidity, than those securities included in the S&P 500, HFRI, LSTA, ACWI and other indices. Moreover, Text Colors certain public indices may or may not reflect the reinvestment of dividends, interest or capital gains, and investors in the underlying securities are not R-0 subject to certain of the management fees, carried interest or expenses to which investors in U.S. and global buyout funds are typically subject. Dark Blue G-161 References to Carlyle’s “publicly traded peers” means The Carlyle Group, Blackstone, Oaktree, KKR, and Apollo Group. Comparisons between Carlyle R-0 7 fund performance and public indices and Carlyle’s public peers are provided for informational purposes only. B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 5 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle Group 2013 Investor Day B-35
R-145 R-156 2 G-213 Welcome to the • Provide deep business insight G-226 10 B-242 B-146 First Carlyle Group R-61 • Discuss strategic direction R-163 3 G-175 Investor Day G-143 11 B-46 B-187 What is our goal • Highlight investing opportunity R-145 R-127 4 G-229 G-127 12 today? • Showcase deep bench B-0 B-127
R-85 • Frame financial opportunity R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255 B-255 Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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R-145 R-156 2 G-213 Tab Time Topic Presenter G-226 10 B-242 B-146 Daniel Harris, Managing Director & Head of Public Market 1 8:00 AM – 8:10 AM Investor Day Overview Investor Relations R-61 Daniel A. D’Aniello, Co-Founder & Chairman R-163 3 G-175 G-143 11 2 8:10 AM – 8:35 AM Welcome Remarks David M. Rubenstein, Co-Founder & Co-Chief Executive Officer B-46 B-187
3 8:35 AM – 9:00 AM Investment Excellence William E. Conway, Jr., Co-Founder & Co-Chief Executive Officer R-145 R-127 4 G-229 G-127 12 B-0 Corporate Private William E. Conway, Jr., Co-Founder & Co-Chief Executive Officer 4 9:00 AM – 9:30 AM B-127 Equity Peter J. Clare, Managing Director & Co-Head of U.S. Buyout Daniel A. D’Aniello, Co-Founder & Chairman R-85 Robert G. Stuckey, Managing Director & Head of U.S. R-219 G-67 13 5 5 9:30 AM – 10:10 AM Real Assets Real Estate G-217 B-113 Kenneth A. Hersh, Chief Executive Officer of NGP Energy Capital B-217 Management R-118 White 10:10 AM – 10:20 AM Break 6 G-92 R-255 B-150 G-255 B-255
Global Market Michael “Mitch” J. Petrick, Managing Director & Head of Global Text Colors 6 10:20 AM – 10:50 AM Strategies Market Strategies R-0 Dark Blue G-161 R-0 7 7 10:50 AM – 11:10 AM Solutions Jacques P. Chappuis, Managing Director & Head of Solutions B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 11:10 AM – 11:30 AM Q&A R-0 G-230 8 7 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Agenda - II B-35
R-145 R-156 2 G-213 Tab Time Topic Presenter G-226 10 B-242 B-146 David M. Rubenstein, Co-Founder & Co-Chief Executive Officer 8 11:30 AM – 12:00 PM Fundraising Michael W. Arpey, Managing Director & Head of Investor R-61 Relations R-163 3 G-175 G-143 11 12:00 PM – 12:30 PM Lunch B-46 B-187 Daniel A. D’Aniello, Co-Founder & Chairman R-145 Kenneth A. Hersh, Chief Executive Officer of Natural Gas Partners Panel Discussion & R-127 Energy Capital Management 4 G-229 G-127 12
12:30 PM – 1:10 PM Q&A: B-0 Marcel van Poecke, Managing Director & Head of International Global Energy B-127 Energy Robert Mancini, Managing Director & Head of Global Power R-85 R-219 G-67 13 5 1:10 PM – 1:20 PM Break (Reset) G-217 B-113 B-217 External Affairs: David M. Marchick, Managing Director & Head of External 9 1:20 PM – 1:40 PM R-118 Creating Value Affairs White 6 G-92 R-255 B-150 Financial Results, Future G-255 10 1:40 PM – 2:10 PM Drivers, & New Adena T. Friedman, Managing Director & Chief Financial Officer B-255 Disclosures Text Colors R-0 Dark Blue G-161 11 2:10 PM – 2:30 PM Wrapping Things Up Glenn A. Youngkin, Managing Director & Chief Operating Officer R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use 2:30 PM – 3:00 PM Q&A & Conclusion Blue R-189 R-0 G-230 8 8 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Who is Presenting Today? B-35
R-145 Name Focus Tenure R-156
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B-242 William E. Conway, Jr. Co-Founder 26 B-146
Daniel A. D’Aniello Co-Founder 26 R-61 R-163 Founders Co-Founder 3 G-175 David M . Rubenstein 26 G-143 11 B-46 Michael W. Arpey Fundraising 3 B-187
Jacques P. Chappuis Solutions <1 R-145 R-127 4 G-229 Chief Financial Officer G-127 12
Adena T. Friedman 3 B-0 B-127 David M. Marchick External Affairs 6
R-85 Executives Michael “Mitch” J. Petrick Global Market Solutions 4 R-219 G-67 13 5 Management Committee G-217 B-113 Glenn A. Youngkin Chief Operating Officer 18 B-217 Peter J. Clare U.S. Buyout 21 R-118 White Kenneth A. Hersh U.S. Energy <1 6 G-92 R-255 B-150 G-255
Robert G. Mancini Global Power 1 B-255 Text Colors
Robert Stuckey U.S. Real Estate 15 Dark Blue
R-0 Heads Fund G-161 R-0 7 Marcel Van Poecke International Energy <1 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use 130 Carlyle Partners 700+ Investment Professionals 1450+ Employees Blue R-189 R-0 G-230 8 As of September 30, 2013. 9 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
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B-0 Welcome Remarks B-127 R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 David M. Rubenstein White 6 G-92 R-255 B-150 G-255
Co-Founder & Co-Chief Executive Officer B-255 Text Colors
R-0 November 11, 2013 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 B-224 R-0 R-43 1 G-101 Alternatives Have Grown More Than Twice as Fast as the Overall Asset G-131 9 B-179 Management Industry Since 2003 B-35
R-145 R-156 2 G-213 Asset Management AUM Alternatives AUM G-226 10 B-242 ($ trillions) ($ trillions) B-146
R-61 $70 R-163 3 G-175 6% CAGR 14% CAGR G-143 11 $62 $6 B-46 $6 B-187 $60
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$50 B-0 $4 B-127 $4 $40 $38 R-85 R-219 G-67 13 5 G-217 B-113 $30 B-217 $2 R-118 $20 $2 White 6 G-92 R-255 B-150 G-255 B-255 $10 Text Colors R-0 Dark Blue G-161 R-0 7 $- $- B-224 G-74 B-136
2003 2008 2012 2003 2008 2012 Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 Note: There is no guarantee these trends will continue. 8 Source: BCG Global Asset Management 2013 Report: Capitalizing On The Recovery. 11 G-161 B-247 B-224 R-0 R-43 1 G-101 Alternatives Have Grown Faster Primarily Because of Stronger G-131 9 B-179 Performance Relative to Public Equities B-35
R-145 R-156 2 G-213 Buyout & Hedge Fund Returns vs. Public Equity Returns G-226 10 B-242 (5-,10-, & 20-year net returns) B-146 30% 29% 27% R-61 R-163 G-175 3 25% G-143 11 B-46 B-187
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Use colors in preferred order for best results best for order preferred in colors Use All Buyout Funds Top Quartile Buyout Funds Blue R-189 R-0 G-230 Source: Cambridge Associates, Thomson One Financial, & Bloomberg as of 3/31/13. There is no guarantee these trends will 8 continue. 12 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Investors Increasing Commitments to Global Alternative Asset Managers B-35
R-145 R-156 2 G-213 3-year rolling volume of fundraising by G-226 10 B-242 publicly traded global alternative asset Driving Factors B-146 managers as a % of total industry 1 R-61 fundraising volume • Stability R-163 3 G-175 8.3% G-143 11 B-46 • Consistency of returns B-187
R-145 R-127 4 G-229 • Brand G-127 12 5.9% B-0 B-127
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2006 2012 • Public Visibility B-136
Use colors in preferred order for best results best for order preferred in colors Use Source: Preqin. Blue R-189 1. Private equity & real estate global fundraising only. Represents the rolling 3-year average market share of The Carlyle R-0 G-230 Group & US publicly traded peers relative to overall industry wide fundraising. There is no guarantee these trends will 8 continue. 13 G-161 B-247 B-224
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R-145 R-156 2 G-213 G-226 10 B-242 Carlyle is a B-146
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 14 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle Snapshot B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 Large Capital Base Global Scale Strong Track Record G-143 11 B-46 B-187
• $185 billion AUM • 34 offices in 21 countries • $92 billion invested1 R-145 R-127 4 G-229 G-127 12 • 1,450+ employees • $98 billion distributed1 B-0 • $138 billion Fee-Earning AUM B-127 • 700+ investment • 460+ CPE transactions R-85 professionals R-219 G-67 • $51 billion Dry Powder 2 13 5 ‒ 30% gross R/PR IRR G-217 B-113 • 200+ current portfolio B-217 • 122 Active funds • 640+ RA transactions companies R-118 ‒ 26% gross R/PR IRR 2 White 6 G-92 • 81 Fund of funds vehicles • 300+ active real estate R-255 B-150 G-255 investments • Three largest hedge funds B-255 have returned 9%, 14%, & Text Colors Dark Blue R-0 6% respectively 3 G-161 R-0 7 B-224 Note: As of 9/30/13 G-74 B-136 1 Carry funds only.
Use colors in preferred order for best results best for order preferred in colors Use 2 Inception to date aggregate Realized & Partially Realized gross IRR. Gross IRRs do not include management & advisory fees, carried interest, taxes, transaction costs & other expenses borne by fund investors which will reduce returns & may be Blue R-189 substantial. See “Important Information” at the beginning of this presentation. R-0 G-230 3 Inception to date net annualized return on the Claren Road Master Fund and Opportunities Fund, and ESG Cross Border 8 Equity Master Fund, respectively, our three largest hedge funds as of 9/30/13. 15 G-161 B-247 B-224
Slide animation – no print issues R-0 R-43 1 G-101 G-131 9 B-179 Carlyle Key Distinguishing Factors B-35
R-145 Characteristic Metric R-156 2 G-213 G-226 10 B-242 CPE – 2.5x R/PR MOIC 1 B-146 RA – 1.9x R/PR MOIC 1 R-61 Track Record Largest Hedge Fund– 9% net return 2 R-163 3 G-175 G-143 11 B-46 Solutions – 1.4x MOIC 3 B-187
R-145 Product diversity 122 active funds, 81 FoF vehicles R-127 4 G-229 G-127 12 B-0 Geographic diversity 34 offices, 21 countries, 6 continents B-127
R-85 R-219 G-67 Raised nearly $150 billion cumulatively 13 5 Fundraising capabilities G-217 B-113 since inception B-217 Partners have an average tenure of 10 R-118 Management consistency White years at Carlyle 6 G-92 R-255 B-150 G-255 B-255 Culture One Carlyle culture Text Colors R-0 Dark Blue G-161 R-0 7 One of the most well regarded global B-224 Public reputation G-74 B-136
alternative asset firms in the world Use colors in preferred order for best results best for order preferred in colors Use Note: As of 9/30/13. Blue R-189 1 Inception to date aggregate Realized & Partially Realized MOIC. See “Important Information” at the beginning of this presentation. R-0 G-230 2 Inception to date net annualized return on the Claren Road Master Fund, our largest hedge fund. 8 3 Inception to date aggregate gross MOIC. 16 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Over the Past Decade We’ve Grown & Diversified Our Platform B-35
R-145 Pre- Post- R-156 2 G-213 G-226 10 B-242 9/30/03 3/31/12 IPO 9/30/13 IPO B-146 CAGR CAGR R-61 R-163 3 G-175 AUM $18 bn $159 bn 29% $185 bn 11% G-143 11 B-46 B-187
R-145 Dry Powder $5 bn $40 bn 28% $51 bn 18% R-127
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B-0 B-127 Offices 20 32 6% 34 4% R-85 R-219 G-67 13 5 G-217 B-113 Employees 500+ 1,300+ 12% 1,450+ 8% B-217
R-118 White 6 G-92 Investment R-255 B-150 275+ 600+ 10% 700+ 11% G-255
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R-0 Dark Blue G-161 Active Funds 23 94 18% 122 19% R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use FoF Vehicles 0 63 N/A 81 18% Blue R-189 R-0 G-230 8 Note: There is no guarantee these trends will continue. Past performance is not indicative of future results. 17 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Today We Have Four Operating Segments B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 Corporate Global B-187 Real Private Market Solutions Assets R-145 Equity Strategies R-127
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R-118 $62 billion $35 billion $39 billion $48 billion White 6 G-92 R-255 B-150 G-255
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R-0 Dark Blue G-161 R-0 7 $185 billion total AUM B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 Note: As of 9/30/13. For illustrative purposes only. Sum of individual segment AUMs does not equal total AUM due to 8 rounding. 18 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 The Steps We’ve Taken to Build Our Platform Since the IPO B-35
R-145 R-156 2 G-213 • Planted the seeds for our HNW / Retail strategy G-226 10 B-242 B-146
R-61 • Moved into phase two of our Solutions strategy R-163 3 G-175 G-143 11 B-46 B-187 • Expanded our GMS platform with new products R-145 R-127 4 G-229 G-127 12 B-0 • Enhanced our best-in-class fundraising platform B-127
R-85 R-219 G-67 13 5 G-217 B-113 • Built new natural resources platform B-217
R-118 White 6 G-92 • Continued to add new funds across our platform R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 19 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Opportunity: Retail / HNW Market is Large & Growing B-35
R-145 Defined Benefit & Defined Contribution Fixed Income Yields Have Declined & R-156 2 G-213 G-226 10 B-242 Plan Assets Are Sizable & Growing Global Equity Markets Are Volatile B-146 $25 Total Value of US 5% 10-Year US Treasury Yield 2 1 R-61 Retirement Plans ($ trillions) 4% R-163 $20 3 G-175 $20 3% G-143 11 B-46 B-187 2%
$15 $9 1% R-145 R-127 4 G-229 0% G-127 12 $11 B-0
$10 B-127
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Jan-10 Jan-11 Jan-12 Jan-13
Oct-09 Oct-10 Oct-11 Oct-12
Apr-10 Apr-11 Apr-12 Apr-13 $6 $5 R-85 60 R-219 G-67 $5 CBOE Volatility S&P 500 Index (VIX) 3 13 5 G-217 B-113 $3 50 $5 B-217 $3 40 $- 30 R-118 White 2002 2012 20 6 G-92 R-255 B-150 Other (Incl. Defined Benefit Plans) 10 G-255 B-255 Defined Contribution Plans 0 Text Colors
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Use colors in preferred order for best results best for order preferred in colors Use Investors are more knowledgeable about alternatives than in the past & want our product set Blue R-189 1. Investment Company Institute Fact Book 2013. There is no guarantee these trends will continue. R-0 G-230 2. Federal Reserve. 8 20 G-161 B-247 3. Capital IQ. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Response: We Are Expanding Our Platform to Access HNW & Retail B-35
R-145 R-156 2 G-213 Client Segmentation G-226 10 B-242 B-146 Specialists R-61 R-163 3 G-175 8 professionals Build G-143 11 B-46 Distribution Develop ‘40 B-187 focusing on HNW & Marketing Act Products Team R-145 R-127 4 G-229 distribution, G-127 12 B-0 expected to grow HNW & B-127 R-85 Retail R-219 G-67 13 5 to 13 professionals G-217 B-113 Strategy by 2015 B-217 R-118 White Create Turn- Expand 6 G-92 R-255 B-150 Key Feeder Feeder Fund G-255 B-255 Solutions Relationships Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Note: As of 9/30/13. Presented for illustrative purposes only. 21 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Opportunity: Investors Face More Complex Investment Decisions Today B-35
R-145 R-156 2 G-213 Portfolio …but it has become G-226 10 B-242 B-146 Construction Was significantly more complex R-61 R-163 3 G-175 Once Simple G-143 11 B-46 US B-187 Cash Developed market Relative Value Emerging market Frontier R-145 • Cash Equity Cap weighted R-127 4 G-229 Commodities Sector weighted G-127 12 B-0 Active Passive B-127 Cash • Stocks Synthetic R-85 High Yield R-219 G-67 13 5 G-217 B-113 • Bonds Frontier Equity B-217 Venture Capital Fixed Income R-118 White Event Driven 6 G-92 R-255 Macro B-150 Real Estate G-255 B-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Note: For illustrative purposes only. 22 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Response: We’ve Continued to Build Out Our Solutions Business B-35
R-145 R-156 2 G-213 G-226 10 B-242 We’ve assembled a $48 billion1 B-146 AUM Solutions platform in less R-61 than three years Acquired Metropolitan R-163 3 G-175 G-143 11 B-46 Real Estate B-187
R-145 Acquired Remaining • November 2013 R-127
4 G-229 G-127 12
B-0 40% of AlpInvest B-127
R-85 Jacques Chappuis R-219 G-67 • August 2013 13 5 Hired As Head of G-217 B-113 Solutions B-217
R-118 Initial Investment • February 2013 White 6 G-92 R-255 B-150 in AlpInvest G-255
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Dark Blue R-0 • July 2011 G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 Note: Presented for illustrative purposes only. 8 1 As of 9/30/13. Does not include Metropolitan Real Estate which was acquired on 11/1/13. 23 G-161 B-247 B-224 R-0 R-43 1 G-101 Opportunity: Generationally Low Interest Rates Are Driving Investor G-131 9 B-179 Demand for Alternative Credit Products with Higher Yield Potential B-35
R-145 R-156 2 G-213 US Leveraged Loan CLO Volume ($ billions) 1 G-226 10 B-242 B-146 Retail Fund Flows ($ billions) 1 $70 R-61 $60 R-163 YTD: 6x 2012 Volume YTD: 5x 2011 Volume 3 G-175 $52 $61 G-143 11 B-46 $60 B-187 $50 $54 R-145 $50 R-127 4 G-229 G-127 12 $40 B-0 B-127 $40 R-85 $30 R-219 G-67 13 5 $30 G-217 B-113 B-217 $20 $20 R-118 White $12 6 G-92 $8 R-255 B-150 $10 $10 G-255 B-255
$4 Text Colors $1 R-0 $- $- Dark Blue G-161 R-0 7 B-224 2012 YTD 2013 2009 2010 2011 2012 YTD G-74 B-136
2013 Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 Source: EPFR & Morgan Stanley Global Leveraged and Acquisition Finance Market Update. 8 1. YTD through 10/30/13. 24 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Response: We’ve Expanded Our GMS Product Offerings B-35
R-145 Structured Credit Hedge Funds Carry Funds & BDC R-156 2 G-213 ($17 billion) ($14 billion) ($4 billion) G-226 10 B-242 B-146 • The second largest global • Claren Road Asset • Carlyle GMS Finance CLO manager, with a 14 Management R-61 R-163 year track record 1 • Energy Mezzanine 3 G-175 • Emerging Sovereign (CEMOF) G-143 11 B-46 • YTD we have closed a Group B-187 total of $2.7 billion across • Distressed & Corporate • Vermillion Asset Opportunities (CSP III) R-145 three US & two European R-127 4 G-229 Management G-127 12 new issue CLOs • Corporate Mezzanine B-0 B-127
$40 R-85 GMS AUM ($ billions) $35 $33 R-219 G-67 13 5 G-217 B-113 $30 $25 B-217 $21 R-118 $20 White 6 G-92 $13 R-255 B-150 G-255 B-255
$10 Text Colors R-0 Dark Blue G-161 R-0 7 $- B-224 G-74 B-136
2009 2010 2011 2012 9/30/13 Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 Note: As of 9/30/13. For illustrative purposes only. 25 1 Creditflux, July 2013. B-224 R-0 R-43 1 G-101 Opportunity: Allocations to Private Equity Are Increasing But Fundraising G-131 9 B-179 Takes Longer & is Higher-Touch B-35
R-145 R-156 G-213 30% Private Equity Allocation as a Percent of Total Assets 2 25% G-226 10 B-242 25% B-146 20% 18% R-61 15% 13% 12% R-163 3 G-175 8% 9% G-143 11 B-46 10% 6% 5% 4% 6% B-187 5% 3% 3%
R-145 0% R-127 4 G-229 Family Offices Endowments Foundations Public Pension Private Sector Insurance G-127 12 B-0 Funds Pension Funds Companies B-127
R-85 2009 2013 R-219 G-67 13 5 G-217 B-113 Average Time to Reach a Final Close Number of Funds in the Market B-217 (months) R-118 18.4 White 1,990 6 G-92 14.5 R-255 B-150 G-255
1,304 B-255 Text Colors
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Use colors in preferred order for best results best for order preferred in colors Use 2008 YTD Q3 2013 Jan 2008 Oct 2013 Blue R-189 R-0 G-230 Source: 2013 Preqin Investor Network Global Alternatives Report & Preqin Q3 2013 Private Equity Fundraising Report. There 8 is no guarantee these trends will continue. 26 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Response: We’ve Enhanced Our Best-In-Class Fundraising Platform B-35
R-145 R-156 2 G-213 • One of the first in the industry to institutionalize fundraising G-226 10 B-242 B-146 • 36 professionals in March 2011 vs. ~80 today R-61 – 2 Management R-163 3 G-175 G-143 11 B-46 B-187 – 23 Geographically Focused
R-145 R-127
4 G-229 – 14 Product Specialists G-127 12
B-0 B-127 – 8 HNW Specialists R-85 R-219 G-67 13 5 – 30 Project Management, Fulfillment & Support G-217 B-113 B-217
R-118 • We’ve raised nearly $150 billion since inception White 6 G-92 R-255 B-150 G-255
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R-0 Dark Blue G-161 R-0 7 We believe we have the premier global fundraising B-224 G-74 B-136
platform in the business Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Note: As of 9/30/13. For illustrative purposes only. 27 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Opportunity: Energy Supply Investment Needs Are Growing Globally B-35
R-145 R-156 2 G-213 $37 trillion G-226 10 B-242 B-146 in cumulative R-61 Oil & gas requires $19 R-163 3 G-175 investment in the G-143 11 B-46 world’s energy trillion of investment B-187 R-145 R-127 4 G-229 supply system G-127 12 B-0 needed by 2035 B-127 R-85 R-219 G-67 13 5 G-217 B-113 Power requires $17 B-217 R-118 trillion of investment White 6 G-92 R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Source: International Energy Agency World Energy Outlook 2012. 28 G-161 B-247 B-224 R-0 R-43 1 G-101 Response: We’re Building a New Natural Resources Platform that Will G-131 9 B-179 Allow Us to Access the Most Attractive Opportunities Around the World B-35
R-145 Carlyle’s New Natural Resources Platform R-156 2 G-213 G-226 10 B-242 B-146 North America Energy International Energy R-61 R-163 • 25 year track record with 230+ transactions1 3 G-175 • Led by Marcel van Poecke G-143 11 B-46 • Led by Ken Hersh • Raising $1.5 billion target fund B-187 • $11.8 billion current AUM R-145 R-127
4 G-229 G-127 12
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R-85 Vermillion Asset Management Energy Mezzanine Fund North America Power R-219 G-67 13 5 G-217 B-113 • Debt investments in • Underpinned by Cogentrix power • Commodities hedge funds B-217 energy & power projects asset management business globally • Led by Chris Nygaard & Drew R-118 • Led by Bob Mancini & Matt Gilbert White G-92 • Led by David Albert & O’Connor R-255 6 Rahul Culas • $1.3 billion AUM B-150 • Plan to raise a $1.5 billion target G-255 B-255 • $1.4 billion AUM fund Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Note: As of 9/30/13. For illustrative purposes only. R-0 G-230 1 Carlyle owns a revenue interest in NGP. Performance was achieved prior to Carlyle’s investment. Past performance is not 8 necessarily indicative of future results. 29 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Opportunity: Limited Partners Are Narrowing Their General Partner Set B-35
R-145 % of Preqin-Surveyed Investors Who R-156 2 G-213 G-226 10 B-242 Plan To Decrease The Number of Their GP Benefits the B-146 Relationships Over The Next Two Years multi-fund platform R-61 25% R-163 3 G-175 G-143 11 B-46 21% B-187 20% Allows adjacent R-145 R-127 4 G-229 G-127 12 businesses to attract B-0 B-127 15% assets from current R-85 R-219 G-67 LP investors in other 13 5 G-217 B-113 11% areas B-217 10% R-118 White 6 G-92 R-255 B-150 G-255 Since 2010 we’ve B-255
5% Text Colors increased our R-0 Dark Blue G-161 R-0 7 investor base ~20% B-224 G-74
0% B-136
Use colors in preferred order for best results best for order preferred in colors Use to 1,600+ investors December 2010 December 2012 Blue R-189 R-0 G-230 Note: As of 9/30/13. For illustrative purposes only. 8 Source: Preqin 1H 2011 & 1H 2013 Investor Outlook Reports. 30 G-161 B-247 B-224 R-0 R-43 1 G-101 Response: We’ve Continued to Add New Funds Across Our Platform to G-131 9 B-179 Meet Growing Investor Demand B-35
R-145 R-156 2 G-213 # Of Carlyle Funds G-226 10 B-242 B-146
R-61 81 R-163 3 G-175 G-143 11 B-46 67 B-187
R-145 52 R-127 4 G-229 13 G-127 12 12 B-0 B-127 8 40 R-85 2 39 R-219 G-67 13 5 G-217 B-113 32 32 19 20 B-217 15 R-118 12 White 10 67 R-255 6 G-92 61 B-150 47 47 50 49 G-255 34 40 B-255 28 Text Colors R-0 Dark Blue G-161 R-0 7 2005 2006 2007 2008 2009 2010 2011 2012 9/30 B-224 G-74 B-136 1
Use colors in preferred order for best results best for order preferred in colors Use Carry Funds Structured Credit Hedge Funds Fund of Funds Blue R-189 R-0 G-230 Note: For illustrative purposes only. There is no guarantee these trends will continue. 8 1 Includes 8 NGP management fee funds. 31 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 In Summary B-35
R-145 R-156 2 G-213 G-226 10 B-242 • $185 billion AUM B-146
R-61 R-163 3 G-175 • 122 active funds G-143 11 B-46 B-187 • 81 fund of funds vehicles R-145 R-127
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B-0 • 34 offices in 21 countries B-127
R-85 R-219 G-67 • 1,450+ employees 13 5 G-217 B-113 B-217 • 700+ investment professionals R-118 White 6 G-92 R-255 B-150 • 200+ current portfolio companies G-255
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R-0 Dark Blue G-161 • 300+ active real estate investments R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Note: As of 9/30/13. 32 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 The Result: B-187 R-145 R-127
4 G-229 G-127 12
B-0 $26 billion in B-127
R-85 R-219 G-67 13 5 Realized Proceeds G-217 B-113 B-217
R-118 since our IPO White 6 G-92 R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Note: 4/1/12 – 9/30/13. For illustrative purposes only. 33 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
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B-0 So what is not perfect B-127
R-85 R-219 G-67 13 5 about all of this? G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 34 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 Despite a growing platform, B-146
R-61 R-163 3 G-175 growing AUM, a high level of G-143 11 B-46 B-187 investor distributions, & a R-145 R-127
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B-0 vibrant global brand, our 2013 B-127 R-85 R-219 G-67 13 5 G-217 B-113 earnings have been flat B-217
R-118 White 6 G-92 R-255 B-150 G-255
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R-0 Dark Blue G-161 Will this change? Why? R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 35 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Near Term Earnings Driver: Record Accrued Carry Balance B-35
R-145 R-156 2 G-213 G-226 10 B-242 Accrued carry is B-146
R-61 $1.6 billion R-163 3 G-175 G-143 11 B-46 (highest level ever) B-187
R-145 R-127 4 G-229 “Big 11” funds with potential to realize G-127 12 B-0 significant carry in the next three years B-127 R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 Potential for $2+ billion of net realized R-255 B-150 G-255 B-255
performance fees through 2016 Text Colors
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 Note: As of 9/30/13. For illustrative purposes only. Represents Management’s longer-term ambitions based on current 36 knowledge, but cannot be guaranteed. See “Important Information” at the beginning of this presentation. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Near Term Earnings Driver: Record Fee-Earning AUM B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 Fee-Earning AUM is $138 billion B-187 (highest level ever) R-145 R-127
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R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 Potential for 30% cumulative R-255 B-150 G-255 B-255
management fee growth Text Colors R-0 through 2016 vs. the last three years Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 Note: As of 9/30/13. For illustrative purposes only. Represents Management’s longer-term ambitions based on current 37 knowledge, but cannot be guaranteed. See “Important Information” at the beginning of this presentation. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Long Term Earnings Driver: Expanded Platform B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146 Strong 2013 fundraising R-61 nd R-163 3 G-175 (2 highest level ever) G-143 11 B-46 B-187
R-145 $51 billion in R-127
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B-0 dry powder to invest B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 The team putting that capital to work White 6 G-92 1 R-255 B-150 has a tremendous track record : G-255 B-255 Text Colors R-0 Dark Blue
G-161 R-0 7 $92 bn Invested $66 bn Realized & Unrealized Gains $98 bn Distributions B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 Note: As of 9/30/13. For illustrative purposes only. 8 1 Since inception & carry funds only. Distributions to fund investors may include return of capital and/or profit and do not 38 G-161 B-247 reflect potential distributions to Carlyle’s unitholders. B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
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B-0 Investment Excellence B-127 R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 William E. Conway, Jr. White 6 G-92 R-255 B-150 G-255
Co-Founder & Co-Chief Executive Officer B-255 Text Colors
R-0 November 11, 2013 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 The Carlyle Investment Engine B-35
R-145 Corporate Private Equity Global Market Strategies Real Assets Solutions R-156 2 G-213 Strategy: Maintain & expand Strategy: Build a top performing Strategy: Build best-in-class Strategy: Build capability to G-226 10 B-242 position as one of the largest, global, markets-focused global natural resources & real assist investors in allocating & B-146 most diverse & consistent investment platform estate platform accessing full spectrum of performing global private equity alternatives R-61 R-163 platforms 3 G-175 G-143 11
B-46 B-187 Operating Statistics: Operating Statistics: Operating Statistics: Operating Statistics: • 14 fund families • 7 strategies; 61 individual • Power, Int’l Energy, 3 Real • AlpInvest & Metropolitan1 R-145 • 262 investment funds Estate strategies, • 74 investment professionals • 212 investment Infrastructure professionals R-127 4 G-229 G-127 12 • LTM DE: $325 million professionals • 139 investment • LTM DE: $33 million B-0 B-127 • LTM DE: $198 million professionals • LTM DE: $71 million R-85 Assets Under Management Assets Under Management Assets Under Management Assets Under Management R-219 G-67 13 5 G-217 B-113 Japan Buyout B-217 3% Growth Co- Other Other 7% Invest R-118 Buyout 17% White 7% 17% 6 G-92 R-255 B-150 Credit G-255 Europe $62 Hedge $35 $39 $48 US Real Second- US Funds 45% B-255 Buyout Estate Text Colors billion Buyout billion billion ary 17% billion 16% 40% 18% 55% Energy Primary Dark Blue R-0 65% Asia 66% R-0 G-161 Buyout Carry 7 G-74 B-224 11% Funds B-136
15% Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 As of 9/30/13. Real Assets professionals do not include Riverstone Holdings or NGP Energy Capital Management professionals. R-0 G-230 1. Metropolitan was acquired on November 1, 2013 and is not included in metrics. Sum of individual segment AUMs does not 8 equal total AUM due to rounding. 40 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Investment & Distribution Pace Since 2006… B-35
R-145 Investment & Distribution History Average Annual Equity Invested R-156 2 G-213 G-226 10 (2006 – 2012 $bn) (2006 – 2012 $bn) B-242 B-146
$20 $10 $3.7 $9.8 R-61 $18.7 R-163 3 G-175 $17.6 $18 G-143 11 B-46 B-187 $16 $8 $14.5 R-145 $14 R-127 4 G-229 G-127 12 $0.6 B-0 $11.3 B-127 $12 $10.6 $6 $5.6
R-85 $10 R-219 G-67 13 5 G-217 B-113 $8 $4 B-217 $7.9 $6 R-118 White $4 $2 R-255 6 G-92 $5.0 B-150 G-255
$2 B-255 Text Colors
R-0 $0 $0 Dark Blue G-161 R-0 7 2006 2007 2008 2009 2010 2011 2012 CPE GMS RA Carlyle B-224 G-74
Equity Invested Realized Proceeds 1 B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Represents Carry Funds Only. Distributions to fund investors from certain transactions may not generate profit or distributable R-0 G-230 cash carry to CG Unitholders. There is no guarantee these trends will continue. 8 1. Years before 2011 are presented using Distributions to fund Investors, 2011 to present are Realized Proceeds. 41 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Our Teams Performed in Corporate Private Equity B-35
R-145 R-156 2 G-213 US Buyout V MOIC Europe Buyout III MOIC Asia Buyout II MOIC G-226 10 B-242 B-146
1.8x 1.8x 1.8x 1.7x R-61 R-163 3 G-175 G-143 11 1.6x B-46 B-187 1.6x 1.6x 1.6x
R-145 R-127
4 G-229 1.4x 1.4x 1.3x 1.4x G-127 12
B-0 B-127
1.2x 1.2x 1.2x R-85 R-219 G-67 13 5 G-217 B-113 1.0x 1.0x 1.0x B-217
R-118 White 0.8x R-255 6 G-92 0.8x 0.8x B-150 G-255
B-255 Text Colors 0.6x 0.6x 0.6x R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use As of 9/30/13. Gross MOIC does not include management fees, expenses or carried interest, which will reduce returns and in Blue R-189 the aggregate are expected to be substantial. Funds selected do not represent the entire CPE portfolio. Results from these R-0 G-230 funds may not be typical across Carlyle’s portfolio. There is no guarantee these trends will continue. For information about 8 the performance of all of Carlyle’s significant funds, please see Carlyle’s filings with the US Securities & Exchange Commission 42 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Our Teams Performed in Real Assets B-35
R-145 R-156 2 G-213 US Realty V MOIC NGP IX MOIC G-226 10 B-242 B-146
1.8x 1.8x R-61 R-163 3 G-175 G-143 11 B-46 1.6x B-187 1.6x 1.6x
R-145 1.4x R-127
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B-0 B-127
1.2x 1.2x R-85 R-219 G-67 13 5 G-217 B-113 1.0x 1.0x B-217
R-118 White 6 G-92 0.8x 0.8x R-255 B-150 G-255
B-255 Text Colors 0.6x 0.6x R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use As of 9/30/13. Gross MOIC does not include management fees, expenses or carried interest, which will reduce returns and in Blue R-189 the aggregate are expected to be substantial. Funds selected do not represent the entire CPE portfolio. Results from these R-0 G-230 funds may not be typical across Carlyle’s portfolio. There is no guarantee these trends will continue. For information about 8 the performance of all of Carlyle’s significant funds, please see Carlyle’s filings with the US Securities & Exchange Commission 43 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Our Teams Performed in Global Market Strategies B-35
R-145 R-156 2 G-213 Credit (Structured Credit) Hedge Funds G-226 10 B-242 B-146 • Carlyle is the second largest global CLO Manager • Claren Road AuM: $7.8 billion across 2 funds with $17 billion under management • ESG AuM: $5.0 billion across 7 funds R-61 • Since 1999, Carlyle’s cumulative loan default at 1/3 • Vermillion AuM: $1.3 billion across 4 funds R-163 3 G-175 the industry average G-143 11 B-46 B-187 Limited Defaults Claren Road and ESG Performance R-145 R-127 4 G-229 G-127 12 B-0 Net annualized IRR 12% Since Inception B-127
10% Claren Road Master R-85 9% Fund R-219 G-67 13 5 8% G-217 B-113 Claren Road B-217 6% 14% Opportunities Fund R-118 White
Loss Rate Loss 4% G-92 Barclays Aggregate R-255 6 5% B-150 2% Bond Index G-255
B-255 Text Colors 0% ESG Cross Border Equity R-0 6% Dark Blue Master Fund
G-161 R-0
2002 2004 2000 2001 2003 2005 2006 2007 2008 2009 2010 2011 2012 2013 7 1999 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use LSTA Defaults Carlyle US Loan Defaults MSCI EM index 4% Blue R-189 Carlyle US Loss Rate R-0 G-230 8 As of 9/30/13. Industry average loan default based LSTA All Loans Index. 44 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 The Ultimate Result – $66 Billion in Gains Over 26 Years B-35
R-145 R-156 2 G-213 Carlyle Performance G-226 10 B-242 (Carry Funds Only) B-146 As of 9/30/13 R-61 R-163 3 G-175 ($ bn) G-143 11 B-46 Cumulative Invested Capital 1 Total Fair Value 2 B-187
Corporate Private Equity R-145 $56.9 $107.0 R-127 4 G-229 G-127 12 B-0 Global Market Strategies $3.5 $5.3 B-127
R-85 R-219 G-67 Real Assets $31.2 $45.4 13 5 G-217 B-113 B-217 Total $91.5 $157.6 R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use 1. Represents the original cost of all capital called for investments since inception, in billions. For purposes of aggregation, funds that report in foreign currency have been converted to US dollars at the reporting period spot rate. Blue R-189 2. Represents all realized proceeds combined with remaining fair value, before management fees, expenses & carried interest. R-0 G-230 Note: Gains represent realized and unrealized gains. Includes carry funds & co-investments. See “Important Information” slide at 8 the beginning of this presentation. 45 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 B-0 We’re reloading our capital. B-127 R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 46 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 $51 Billion of Dry Powder ($31 billion in Carry Funds) B-35
R-145 $60 R-156 2 G-213 G-226 10 B-242 B-146 $51 $50 R-61 R-163 3 G-175 $44 G-143 11 B-46
B-187 ) $40 bn $37 $38 R-145 R-127 $35 $34 Below
4 G-229 2008 G-127 12
B-0 Peak B-127 $30 $24 R-85 R-219 G-67 13 5 G-217 B-113 $20 $18 B-217
Available Capital ($ ($ Capital Available $17
R-118 $10 White G-92 R-255 6 $10 B-150 G-255
$6 B-255 Text Colors
R-0 Dark Blue G-161 $0 R-0 7 B-224 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 G-74
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Use colors in preferred order for best results best for order preferred in colors Use CPE RA GMS Solutions Blue R-189 R-0 G-230 8 As of 9/30/13. There is no guarantee these trends will continue. 47 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 With $51 Billion of Dry Powder Today, Can Carlyle…. B-35
R-145 R-156 2 G-213 1. Invest the Capital? G-226 10 B-242 B-146
R-61 R-163 3 G-175 2. Continue to Generate 20-30% Gross Returns for Our Fund Investors? G-143 11 B-46 B-187
R-145 3. Grow Distributable Earnings for Our Unitholders? R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 48 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127 4 G-229 We’re ready to put the money to work. G-127 12 B-0 B-127 R-85 R-219 G-67 13 5 G-217 B-113 Here’s what we are doing… B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 49 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 CPE: Investing in the United States B-35
R-145 US Investment Themes… …Drove Specific Investments R-156 2 G-213 G-226 10 B-242 Recent Investment Theme Company B-146 Pros R-61 Energy Boom: R-163 • 3 G-175 • Low Growth Environment Economic Growth G-143 11 • B-46 Process Industries B-187 • Resurgence in US • Robust Debt-financing Markets manufacturing R-145 • Energy Revolution R-127 4 G-229 G-127 12 Strength of US Consumer: B-0 B-127 • Healthy US Consumer • Affordable Luxury
R-85 • Housing & Auto Recovery R-219 G-67 13 5 Aging Population: Healthcare G-217 B-113 Cons B-217
R-118 • Price Appreciation Despite Modest Wireless, Wireless, Wireless White • Increasing demand for 6 G-92 Growth R-255 B-150 bandwidth G-255 • Processing transactions B-255 • More Active Strategic Buyers Text Colors R-0 Dark Blue G-161 • Political Uncertainty R-0 7 Corporate Orphans B-224 G-74 B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 As of 9/30/13. Presented for illustrative purposes only. References to particular portfolio companies should not be considered R-0 G-230 a recommendation of any particular security or portfolio company. See “Important Information” at the beginning of this 8 presentation. 50 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 CPE: Investing in Europe B-35
R-145 Valuation Discount vs Risk… …Drove Specific Investments R-156 2 G-213 G-226 10 B-242 14x EBITDA Multiples on Major Indices B-146 12.6x (as of 10/22/13) Investment Date Closed Entry Multiple R-61 12x R-163 3 G-175 Sagemcom Aug 11 4.5x G-143 11 B-46 9.9x 9.9x B-187 10x 9.1x 9.0x Telecable Dec 11 7.3x 8.8x 8.6x R-145 8.3x 8.0x R-127 G-229 7.8x
4 8x AMEOS Mar 12 7.6x G-127 12
B-0 B-127 6.2x 6x Twin Set Jul 12 7.5x R-85 R-219 G-67 13 5 G-217 B-113 Axalta Feb 13 7.4x 4x B-217
Addison Lee Apr 13 5.6x R-118 White 2x 6 G-92 R-255 B-150 Marelli Motori Jul 13 8.0x G-255 B-255 0x Text Colors R-0 Chesapeake Sep 13 6.5x Dark Blue G-161 R-0 7 B-224 G-74
Alloheim Sep 13 8.8x B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 As of 9/30/13. EBITDA multiples from CapIQ. from Presented for illustrative purposes only. References to particular portfolio R-0 G-230 companies should not be considered a recommendation of any particular security or portfolio company. See “Important 8 Information” at the beginning of this presentation. 51 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 CPE: Investing in Asia B-35
R-145 Growth of the Consumer Class… …Drove Specific Investments R-156 2 G-213 G-226 10 B-242 • Slowing GDP growth but faster than 2Q13 LTM YoY Growth B-146 rest of the world1 R-61 Company Revenue EBITDA R-163 3 G-175 9.2% G-143 11 B-46 Orange Hotel 45% 51% B-187
R-145 7.3% R-127
4 G-229 G-127 12
B-0 6.0% Jaguar Asia 71% 69% B-127 5.2% 5.3% R-85 R-219 G-67 13 5 4.0% Focus Media 10% 19% G-217 B-113 3.4% 3.2% 3.2% B-217
R-118 2.2% White 7 Days Group 24% 29% 6 G-92 R-255 B-150 G-255 0.8% B-255 0.3% Text Colors R-0 Average 38% 42% Dark Blue G-161 R-0 7 China SEA Korea Taiwan US Europe B-224 G-74 B-136
'10-12 Avg. GDP Growth '13E-15E Avg. GDP Growth Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 As of 9/30/13. Source: Economist Intelligence Unit 8/13. Presented for illustrative purposes only. References to particular R-0 G-230 portfolio companies should not be considered a recommendation of any particular security or portfolio company. See 8 “Important Information” at the beginning of this presentation. 52 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Real Assets: Investing in Real Estate B-35
R-145 We See Several Key Secular Trends… …Which Specific Investment Strategies R-156 2 G-213 G-226 10 B-242 650 Madison B-146
Supplying Two Types of Demand: $1,500 $1,300 R-61 R-163 G-175 3 1. Job Growth-Driven Demand G-143 11 B-46 $1,000 $810 B-187
• Job growth is returning in some $500 R-145 markets R-127 4 G-229 G-127 12 $- B-0 • Local, metro-by-metro approach Cost Basis Exit Value B-127
R-85 2. Needs-based-driven demand R-219 G-67 US Realty VI (Target Portfolio) 13 5 G-217 B-113 • Under-production of homes B-217 Retail Office Rental 5% • Rental market demand expanding 10% Apartments R-118 Industrial White 36% 6 G-92 5% R-255 B-150 G-255 For-Sale B-255 Residential Text Colors R-0 13% Dark Blue G-161 R-0 7 Hotel B-224 G-74
10% Other B-136
Use colors in preferred order for best results best for order preferred in colors Use Housing Senior Living Student 7% Blue R-189 10% As of 9/30/13. Presented for illustrative purposes only. References to particular portfolio companies Housing R-0 G-230 should not be considered a recommendation of any particular security or portfolio company. See 4% 8 “Important Information” at the beginning of this presentation. 53 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Real Assets: Investing in Energy B-35
R-145 Investment Experience Covers All Major North American Oil & Gas Producing R-156 2 G-213 Regions G-226 10 B-242 Investing in the Unconventional Resource Revolution B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 Canada R-127
4 G-229 21% G-127 12
B-0 B-127 Rocky Mountains R-85 13% R-219 G-67 Appalachia 13 5 G-217 B-113 California 5% B-217 3% Mid-Continent R-118 11% White 6 G-92 R-255 B-150 G-255 North Sea 1% B-255
Texas Text Colors 28% Other International 2% Dark Blue R-0 Other 1% G-161 Gulf of Mexico R-0 7 Gulf Coast B-224 11% 4% G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 As of 9/30/13. Presented for illustrative purposes only. References to particular portfolio companies should not be considered R-0 G-230 a recommendation of any particular security or portfolio company. See “Important Information” at the beginning of this 8 presentation. 54 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 GMS: Investing Across Liquid Strategies in Secular Trends B-35
R-145 R-156 2 G-213 Selected Investment Themes & Trends Investment Vehicle G-226 10 B-242 B-146 US & European CLOs Investors seek yield ($17 billion) R-61 R-163 3 G-175 G-143 11 B-46 B-187 Global Long / Short Credit
R-145 R-127 4 G-229 G-127 12 GMS Finance B-0 Middle Market Financing Gap B-127
R-85 R-219 G-67 Growing Pan-European Distressed Opportunity Strategic Partners 13 5 G-217 B-113 B-217
R-118 Energy Financing Gap Energy Mezzanine White 6 G-92 R-255 B-150 G-255 B-255 Growth of Emerging Markets Consumer Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
Declining Asset Correlations & Bank Asset Divestitures B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 As of 9/30/13. Presented for illustrative purposes only. 55 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 For years, we claimed returns unlikely to be B-127
R-85 R-219 G-67 sustained… but we did it. 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 56 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Investors Face Constantly Changing Risk-Return Dynamics B-35
R-145 In 2004, Returns Seemed to Be Shifting… But We Expect CP V to Outperform CP IV R-156 2 G-213 G-226 10 B-242 B-146 40% Fund Fund Size Gross / Net Market Name Year ($ bn) IRR R-61 Risk / Return R-163 3 G-175 35% G-143 11 B-46 CP I 1990 $0.1 31% / 26% B-187 30% R-145 R-127
4 G-229 G-127 12
B-0 25% CP II 1994 $1.3 34% / 25% B-127
R-85 20% R-219 G-67 13 5 G-217 B-113 CP III 2000 $3.9 27% / 21% B-217 15% R-118 White 6 G-92 CP IV R-255 B-150 10% 2005 $7.9 16% / 13% G-255
B-255 Text Colors
R-0 5% Dark Blue G-161 Carlyle R-0 7 CP V 2007 $13.7 18% / 13% B-224 Comfort Zone G-74 B-136
0% Use colors in preferred order for best results best for order preferred in colors Use Risk Blue R-189 R-0 G-230 As of 9/30/13. Presented for illustrative purposes only. There is no guarantee Carlyle Partners V will outperform Carlyle 8 Partners IV or any other Carlyle fund. See “Important Information” at the beginning of this presentation. 57 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 The result: long-term growth in B-127
R-85 R-219 G-67 distributable earnings for our unitholders 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 58 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 We are on the “March to Carry” B-35
R-145 Remaining Fair Net IRR Accruing Taking R-156 2 G-213 Value ($ mm) 9/30/13 Carry Carry G-226 10 B-242 Carlyle Partners V $13,491 13% √ √ B-146 Europe Partners III 6,780 8% R-61 R-163 3 G-175 Carlyle Partners IV 5,358 13% √ √ Corporate G-143 11 B-46 Carlyle Asia Partners III 1,805 7% B-187 Private Equity Carlyle Asia Partners II 1,159 8% √ R-145 Financial Services Partners I 1,034 10% √ √ R-127 4 G-229 G-127 12 1 B-0 Europe Technology Partners II 792 8% √ B-127 Energy Partners IV 4,595 13% √ √ R-85 Energy Partners III 2,306 11% √ √ R-219 G-67 Real Assets 13 5 G-217 B-113 Carlyle Realty Partners V 1,348 7% B-217 Carlyle Realty Partners VI 1,340 19% √ Global Market R-118 Hedge Funds2 $14,048 n/a White 6 G-92 Strategies R-255 B-150 G-255 B-255 14 additional funds are currently accruing performance fees Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74 B-136 As of September 30, 2013. Please see “Important Information” at the beginning of this presentation. Funds selected represent
Use colors in preferred order for best results best for order preferred in colors Use eleven carry funds which are currently accruing, or have the potential to accrue carry in the near future & Carlyle hedge funds. Funds are not representative of Carlyle’s entire portfolio & results may not be typical. For more information about Blue R-189 the performance of Carlyle’s significant funds, please see Carlyle’s filings with the US Securities & Exchange Commission. R-0 G-230 1 Carlyle Europe Technology Partners II, L.P. is not included in Carlyle’s SEC reporting as it is not considered “significant.” 8 2 Reflects total hedge fund AUM as of September 30, 2013. 59 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Conclusion B-35
R-145 R-156 2 G-213 • As a unitholder in Carlyle, you have exposure to… G-226 10 B-242 B-146 - The highest quality companies globally R-61 R-163 3 G-175 - A diverse set of liquid strategies G-143 11 B-46 B-187 - Real estate projects across industries & strategies globally R-145 R-127
4 G-229 G-127 12
B-0 - A new, exciting global energy platform B-127
R-85 • Most important investment: our people R-219 G-67 13 5 G-217 B-113 - Committed to building One Carlyle B-217 R-118 White 6 G-92 • Carlyle is better positioned today than ever before to capitalize on R-255 B-150 G-255 B-255
opportunities globally Text Colors Dark Blue R-0 G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 60 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 Corporate Private Equity (CPE) B-0 B-127 Introduction R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 William E. Conway, Jr. White 6 G-92 R-255 B-150 G-255
Co-Founder & Co-Chief Executive Officer B-255 Text Colors
R-0 November 11, 2013 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle CPE – Strategic Overview B-35
R-145 R-156 2 G-213 Strategy Assets Under Management G-226 10 B-242 B-146 • Continue to achieve absolute returns for Growth Other our fund investors 7% R-61 Buyout R-163 G-175 Japan 7% 3 • Maintain & expand position as one of the G-143 11 B-46 Buyout B-187 largest, most diverse, and consistent 3% performing global private equity Europe R-145 $62 US Buyout Buyout R-127 platforms 55%
4 G-229 16% bn G-127 12
B-0 B-127
R-85 Asia Buyout R-219 G-67 13 5 12% G-217 B-113 Operating Statistics ($US in bn) B-217 2009 2010 2011 2012 Q3 2013 • 14 fund families R-118 $80 White G-92 R-255 6 • 150+ Portfolio Companies $62 B-150 G-255 $60 $56 $53 $49 $51 B-255 • 262 investment professionals $42 Text Colors $40 $39 $38 $40 $34 R-0 • 26 Operating Executives Dark Blue G-161 R-0 7 B-224 • LTM DE: $324 million $20 G-74
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Use colors in preferred order for best results best for order preferred in colors Use • LTM ENI: $626 million $0 Blue R-189 Total AUM Fee-Earning AUM R-0 G-230 8 Note: as of 9/30/2013. 62 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 The Facts B-35
R-145 R-156 2 G-213 • One of the largest and most diverse Private Equity platforms G-226 10 B-242 B-146 - $62 billion of AUM
R-61 • Buyout: $58 billion; Growth: $4 billion R-163 3 G-175 G-143 11 B-46 - 33 active funds & various co-investment vehicles B-187
• Prepared to capture new opportunities R-145 R-127 4 G-229 G-127 12 - $57 billion of equity invested in 466 transactions since inception B-0 B-127 - $23 billion of dry powder available for deployment R-85 R-219 G-67 13 5 • Strong and consistent performance G-217 B-113 B-217 - $50 billion of realized and unrealized gains since inception R-118 White - Inception-to-date Gross IRR of 26% (Net IRR of 18%) 6 G-92 R-255 B-150 G-255
- MOIC of 1.9x & Realized/Partially Realized MOIC of 2.5x B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 As of 9/30/13. See “Important Information” for more information on the calculation of IRRs and MOICs. 63 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 More than a (Great) LBO business B-35
R-145 R-156 2 G-213 • Our CPE segment includes: G-226 10 B-242 B-146 - Premier North America, Europe, Asia & Japan buyout funds
R-61 - Large, medium & small buyout capabilities R-163 3 G-175 G-143 11 B-46 - Regional growth funds around the world B-187
- Dedicated sector funds (Financial Services) & teams R-145 R-127 4 G-229 G-127 12 - One of the largest & leading Emerging Markets businesses (MENA, Asia, South America and Africa) B-0 B-127 - RMB funds R-85 R-219 G-67 13 5 • Our diversified & highly specialized platform offers our fund investors the opportunity to G-217 B-113 allocate within & across Carlyle's CPE Segment B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 As of 9/30/13. 64 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 One of The Largest and Most Diverse Private Equity Platforms B-35
R-145 R-156 2 G-213 Developed Markets (AUM) Emerging Markets (AUM) G-226 10 B-242 B-146
Financial US Growth Japan R-61 Services 3% R-163 Buyout 3 G-175 3% G-143 11 B-46 3% Africa B-187 Europe MENA Buyout Technology Buyout 5% R-145 2% Peru South 5% R-127 4 G-229 G-127 12 Buyout America B-0 3% Buyout B-127 Europe Mexico 10% R-85 Buyout Buyout R-219 G-67 13 5 21% 1% G-217 B-113 $51 bn $11 bn US Buyout Asia B-217 Asia Buyout 67% Growth 63% R-118 13% White 6 G-92 R-255 B-150 G-255
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R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Note: As of 9/30/13. 65 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Deep Bench of Investment Professionals Ready to Put the Money to Work B-35
R-145 R-156 2 G-213 AUM AUM per Investment G-226 10
B-242 Fund Family # Team Members ($ bn) Professional ($mm) B-146 US Buyout 66 $34.3 $520 R-61 R-163 3 G-175 Europe Buyout 35 10.2 $290 G-143 11 B-46 B-187 Asia Buyout 45 7.1 $160
R-145 Japan Buyout 18 1.6 $90 R-127
4 G-229 G-127 12
B-0 Other Buyout 43 4.4 $100 B-127 Total Buyout 207 $57.6 $280 R-85 R-219 G-67 13 5 US Growth 14 $1.8 $130 G-217 B-113 B-217 Europe Growth 12 1.0 $80 R-118 White Asia Growth 29 1.4 $50 6 G-92 R-255 B-150 G-255
Other Growth n/a 0.3 n/a B-255 Text Colors
R-0 Total Growth 55 $4.5 $80 Dark Blue G-161 R-0 7 B-224 Total CPE 262 $62.2 $240 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Note: As of 9/30/2013. Other Buyout includes FIG, MENA, Africa & South America. 66 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Conclusion B-35
R-145 R-156 2 G-213 • One of the largest & most diverse Private Equity platforms G-226 10 B-242 B-146 • More than a (Great) LBO business
R-61 • 262 CPE Investment Professionals with Regional & Industry Expertise R-163 3 G-175 G-143 11 B-46 • 26 Operating Executives B-187
R-145 • Strong & consistent performance R-127
4 G-229 G-127 12
B-0 • $50 billion of realized and unrealized gains over the 26 years B-127 • Ready to Put the Money To Work R-85 R-219 G-67 13 5 G-217 B-113 • Here’s How We Do It... B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 As of 9/30/13. 67 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 Corporate Private Equity: Overview B-127 R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 Peter J. Clare White 6 G-92 R-255 B-150 G-255
Managing Director & Co-Head of US Buyout B-255 Text Colors
R-0 November 11, 2013 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 B-224
68 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 What distinguishes our B-127
R-85 R-219 G-67 13 5 approach? G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 69 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Deep Industry Expertise B-35
R-145 R-156 2 G-213 466 Transactions Across 10 Key Industry Sectors G-226 10 B-242 B-146 18% (% Equity Invested)
R-61 16% R-163 3 G-175 15% 14% G-143 11 B-46 B-187
11% R-145 R-127 4 G-229 G-127 12
9% B-0 B-127 7% 7% R-85 R-219 G-67 13 5 G-217 B-113 2% B-217 0% R-118 0% White 6 G-92 Aerospace, R-255 B-150 Technology Defense & G-255 # of Telecom Consumer & Business Government Financial B-255 Transactions & Media Industrial & Retail Service Healthcare Services Transportation Services Energy Real Estate Other Text Colors R-0 Buyout 39 46 40 21 26 33 20 20 3 1 1 Dark Blue G-161 Growth Capital 26 10 23 125 17 1 2 5 4 2 1 R-0 7 B-224 Total 65 56 63 146 43 34 22 25 7 3 2 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Note: As of 9/30/13. Represents all funds in Corporate Private Equity. 70 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Operating Executives Embedded with Investment Teams B-35
Technology & Telecom Industrial & Consumer & Aerospace & Financial R-145 Business Energy General R-156 & Media Transportation Retail Healthcare Defense Services 2 G-213 Services G-226 10
B-242 B-146 Louis V. Gerstner, Jr. D. Ronald Mary Petrovich Susan Arnold Robert Essner Louis J. Giuliano Christopher Yasuo Nishiguchi Stephen C. Gray Global Harrell U.S. U.S. U.S. U.S. V. Dodds Japan U.S. Former U.S. Former CEO of Former Executive Former Former U.S. Former CEO of R-61 Former President CEO & Chairman Chairman & CEO AxleTech of CEO & Chairman CEO & President Former CFO & EVP Kyocera R-163 of McLeodUSA Inc. of IBM & of Ryder Scott G-175 International Procter & Gamble of Wyeth ITT Industries of Charles Schwab Corporation 3 RJR Nabisco Company G-143 11 B-46 B-187 Louis V. Gerstner, Jr. James H. Hance, Jr. Louis J. Giuliano Charles Watson Global Charles O. Rossotti William P. Johnston Peter Malone U.S. U.S. Global Dr. Yener Former U.S. U.S. U.S Former Former Founder, Sonusen CEO & Chairman Former Commissioner Former Chairman of Co-Founder Vice Chairman R-145 CEO & President the Natural Gas MENA of IBM & of the IRS Renal Care Group, Inc. CSP Associates, Inc. & CFO of R-127 G-229 ITT Industries Clearinghouse
4 RJR Nabisco Bank of America G-127 12
B-0 B-127 Thomas W. Rabaut Thomas W. Rabaut Joseph Schenk Bobby S. Shackouls Stephen C. Gray U.S. U.S. U.S. U.S. Raphael Filizola U.S. Former CEO Former CEO Former CFO Former South America Former President R-85 & President & President of Jefferies Chairman & CEO of of McLeodUSA Inc. R-219 G-67 of United Defense of United Defense & Company Burlington Resources 13 5 G-217 B-113 David L. Squier L. William Krause Luiz Antyonio B-217 U.S. Arthur Levitt U.S. Viana Former U.S. Former President and South America President and CEO 25th Chairman CEO of Former CEO of R-118 of of the SEC White 3Com Corporation Pão de Açucar Howmet Corporation 6 G-92 R-255 B-150 G-255 Yukio Kubota Arthur Levitt B-255 Japan U.S. Text Colors Former President of 25th Chairman R-0 Sony Ericsson Japan of the SEC Dark Blue G-161 R-0 7 B-224 G-74 B-136
• Involved in deal due diligence, creation of improvement plan, and deal sourcing Use colors in preferred order for best results best for order preferred in colors Use • Engaged as portfolio company board members, mentors to CEOs, & oversee implementation of value creation plan Blue R-189 R-0 G-230 8 Note: As of 11/07/13. 71 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 A Global, Local Reach B-35
R-145 We couple growth & buyout funds in the US, Europe & Asia. Additional buyout funds R-156 2 G-213 G-226 10 B-242 cover South America, Africa & MENA. B-146
R-61 CPE’s Global Reach – 262 Investment Professionals R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 B-0 US Buyout Global Financial Services Buyout Europe Buyout B-127 US Growth Europe Growth / Technology US Equity Opportunity R-85 R-219 G-67 13 5 G-217 B-113 MENA Buyout Asia Buyout B-217 Beijing RMB Partners Japan Buyout Asia Growth R-118 White 6 G-92 R-255 B-150 G-255
Peru Buyout B-255 Text Colors South America Buyout R-0 Sub-Saharan Africa Buyout Dark Blue G-161 = CPE Current Investment 1 R-0 7 B-224 = Carlyle Office G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 Note: As of 9/30/13. 8 1. Represents the headquarters location of every company that CPE currently has equity invested in. 72 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Key to Managing Risk B-35
R-145 Value Creation Toolkit R-156 2 G-213 G-226 10 B-242 B-146
R-61 Market Focused Major R-163 3 G-175 Leaders Change Transformation G-143 11 B-46 B-187
Allison Dunkin‘ ARINC R-145 R-127 4 G-229 G-127 12 Booz Allen Moncler BankUnited B-0 B-127 CommScope MultiPlan China Pacific R-85 R-219 G-67 13 5 Hertz NBTY JMC G-217 B-113 B-217 HCR ManorCare SS&C Nielsen R-118 Qualicorp Syniverse Philosophy White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 Consistent Record of Generating Strong Returns for Our Fund Investors G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Note: Presented for illustrative purposes only. References to portfolio companies are not intended as, and should not be R-0 G-230 construed as, recommendations for any particular company or security. 8 73 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 How do we achieve attractive B-127
R-85 R-219 G-67 13 5 returns for our fund investors? G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 74 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Earnings Growth Drives Value Creation B-35
R-145 R-156 2 G-213 Drivers of Value Creation 1 G-226 10 B-242 (% of Value Created, Excluding Co-Investment) B-146 Equity R-61 Total Value R-163 3 G-175 Invested G-143 11 B-46 B-187 EBITDA Debt Multiple R-145 Fund Growth Paydown Expansion R-127
4 G-229 G-127 12
B-0 B-127 US Buyout 2 73% 23% 4% R-85 R-219 G-67 3 13 5 Asia Buyout 73% 15% 12% G-217 B-113 B-217 Europe Buyout 4 55% 20% 25% R-118 White 6 G-92 R-255 B-150 G-255 B-255
Text Colors 1. Includes both realized and unrealized deals for US Buyout, and includes only realized and partially realized deals for Europe R-0 Buyout. Asia buyout only reflects realized and partially realized investments, but includes the unrealized portion of partially Dark Blue realized investments. On the unrealized portion of partially realized investments, actual realized values may differ from the G-161 R-0 7 estimated values on which this slide is based. Past performance is not indicative of future results and there is no guarantee B-224 these trends will continue. See “Important Information” at the beginning of this presentation. G-74
2. As of 6/30/13, represents most recent data available. Illustrates the source of value creation on all deals currently valued at B-136
Use colors in preferred order for best results best for order preferred in colors Use greater than 1.0x in CP IV and CP V. Excludes coinvestment in deals acquired by CP IV & CP V. 3. As of 9/30/13, represents most recent data available. Excludes co-investment. Blue R-189 4. As of 6/30/13, represents most recent data available. Includes all fully realized & partially realized CEP transactions since inception with the exception of Bredbandsbolaget AB (venture led deal which is not representative of CEP strategy). The losses R-0 G-230 from realized transactions that have returned < 0.5x cost have been allocated to EBITDA growth, deleveraging, & multiple 8 75 G-161 B-247 expansion on a pro-rata basis. Excludes co-investment. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Hypothetical LBO: Sustaining Top Quartile Returns B-35
R-145 Assumptions The Result R-156 2 G-213 G-226 10 B-242 Mult. of B-146 $mm EBITDA $0 Debt R-61 Paydown Year 0 Year 5 R-163 3 G-175 Debt $670 6.7x G-143 11 B-46 Equity Value: Equity Value: B-187 $330 million $925 million Equity $330 3.3x R-145 R-127 4 G-229 G-127 12
23% Gross IRR B-0 Purchase $1,000 10.0x B-127 Price R-85 R-219 G-67 13 5 $200mm Debt G-217 B-113 Year 0 Year 5 CAGR Paydown B-217 Year 0 Year 5 Revenue R-118 $1,000 → $1,276 5% Equity Value: Equity Value: White ($mm) 6 G-92 $330 million $1,125 million R-255 B-150 G-255 EBITDA B-255 $100 → $160 10% Text Colors ($mm) 28% Gross IRR R-0 Dark Blue G-161 % R-0 7 10.0% → 12.5% B-224 G-74
Margin B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Note: Presented for illustrative purposes only. Does not represent any specific investment in Carlyle’s portfolio and there is no guarantee any transaction will achieve comparable results. Gross IRRs exclude management fees, carried interest, taxes, transaction R-0 G-230 costs & other expenses to be borne by investors, which will reduce returns & in the aggregate are expected to be substantial. Please 8 see “Important Information” at the beginning of this presentation. 76 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Creating Value Through Proactive Operational Improvement B-35
R-145 R-156 2 G-213 CP V Portfolio Companies G-226 10 B-242 B-146 Revenue ($bn) EBITDA Margin (%) EBITDA ($bn) R-61 16.6% R-163 3 G-175 $16.2 218 $2.7 G-143 11 B-46 14.9% bps 32.3% B-187 $14.1 14.4% R-145 $2.0 R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
At Exit or At Exit or At Exit or Dark Blue R-0 At Acquistion At Acquistion At Acquistion G-161 6/30/13 6/30/13 6/30/13 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Presented for illustrative purposes only. CP V performance is not representative of Carlyle’s entire portfolio & results may not Blue R-189 be typical. Operational improvement achieved in conjunction with portfolio company management. Excludes new investments closed after 6/30/12 & Carlyle’s investment in HD Supply, Inc. Revenue & EBITDA figures based on percent ownership at time of R-0 G-230 acquisition. Past performance is not necessarily indicative of future results & there is no guarantee these trends will continue. 8 See “Important Information” at the beginning of this presentation. 77 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 A Case Study on Value Creation: ARINC B-35
R-145 • Business description: Leading global provider of advanced communications & systems R-156 2 G-213 engineering services primarily serving the commercial & business G-226 10 B-242 aviation, airports, & surface transportation industries B-146 • Acquisition date: October 25, 2007 R-61 R-163 3 G-175 • Purchase price: $835 million / 10.4x 09/30/07 EBITDA ($80.6 million) G-143 11 B-46 B-187 • Carlyle equity: $257 million
R-145 Operational Improvements The Result R-127
4 G-229 G-127 12
B-0 • Created an outstanding Board of Directors, B-127 Doubled EBITDA Margins Chaired by Thomas Rabaut (Carlyle R-85 Operating Executive) R-219 G-67 13 5 G-217 B-113 • Strengthened management team B-217
R-118 • Achieved significant cost savings through White 6 G-92 reduction in administrative overhead R-255 B-150 G-255 B-255 • Successful divestiture of Defense Systems 12% EBITDA CAGR Text Colors R-0 & Engineering Support (DSES) business Dark Blue G-161 $400mm Debt Paydown R-0 7 unit B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Note: This case study is intended as a reflection of Carlyle’s investment process, & references to this particular portfolio company should not be considered a recommendation of any particular security or portfolio company. The information presented is intended R-0 G-230 to be illustrative, & is not intended to be used as an indication of the current or future performance of Carlyle’s portfolio companies. 8 Results may not be typical. See “Important Information” slide at the beginning of this presentation. 78 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 A Case Study on One Carlyle: Moncler B-35
R-145 • Invested in October 2008 in the leading Italian luxury fashion group in high-end R-156 2 G-213 G-226 10 B-242 sportswear sector B-146 • Value creation: R-61 R-163 3 G-175 – Reorganized & strengthened management team by adding local management teams G-143 11 B-46 in China, Germany, Japan, & the US B-187
R-145 – Operational improvement & introduced international best practices through supply chain optimization R-127 4 G-229 G-127 12 B-0 – Introduced new channels to market: website launched in 2011 B-127
R-85 – Extensive leverage of One Carlyle network / global presence R-219 G-67 13 5 o Helped negotiate insourcing of distribution license in Japan G-217 B-113 Pre-Carlyle Ownership (Dec. 2008) Post-Carlyle Ownership (Dec. 2012) B-217
America Europe Asia Total America Europe Asia Total R-118 White Urban - 2 - 2 Urban 4 17 15 36 6 G-92 R-255 G-255 B-150 Resort 1 7 - 8 Resort 1 13 - 14
B-255 Text Colors In-Shop - 1 - 1 In-Shop - 9 13 22 R-0 Dark Blue G-161 Outlet - 2 - 2 Outlet 1 7 3 11 R-0 7 B-224 G-74
Total 1 12 - 13 Total 6 46 31 83 B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Note: This case study is intended as a reflection of Carlyle’s investment process, & references to this particular portfolio company should not be considered a recommendation of any particular security or portfolio company. The information presented is R-0 G-230 intended to be illustrative, & is not intended to be used as an indication of the current or future performance of Carlyle’s 8 portfolio companies. Results may not be typical. See “Important Information” slide at the beginning of this presentation. 79 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 The Key Story Since 2010 = Distributions B-35
R-145 Carlyle CPE has distributed $37 billion over the last 3 ¾ years R-156 2 G-213 G-226 10 B-242 B-146 $12.5bn $12.1bn R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 B-0 $6.9bn B-127 R-85 R-219 G-67 $5.3bn 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74 B-136
2010 2011 2012 2013 YTD Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Note: As of 9/30/2013. Reflects carry funds only & includes co-investment. Distributions to fund investors may include return of R-0 G-230 capital & / or profit & do not reflect potential distributions to Carlyle’s unitholders. There is no guarantee these trends will 8 continue. See “Important Information” slide at the beginning of this presentation. 80 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle Partners V Portfolio B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Note: Presented to illustrate Carlyle’s investment process only and references to particular portfolio companies should not be R-0 G-230 considered a recommendation of any particular security or portfolio company. The information presented is intended to be illustrative, 8 81 G-161 B-247 and is not intended to be used as an indication of the current or future performance of Carlyle’s portfolio companies. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Case Study: The Strength of CP V B-35
R-145 Largest Carlyle fund to date and one of our top performing funds: R-156 2 G-213 G-226 10 B-242 • 23 investments 1 B-146 – Only one valued below cost R-61 R-163 3 G-175 G-143 11 B-46 • Well diversified B-187 – Largest investment only 8.5% of invested capital R-145 R-127 4 G-229 G-127 12 – Largest industry sector, Healthcare, at 22% of invested capital B-0 B-127 • Strong Distributions Despite Young Age R-85 R-219 G-67 2 13 5 – Average Holding Period 3.3 years G-217 B-113 B-217 – Returned over $6 billion & over 50% of invested capital to fund investors 3 R-118 White 6 G-92 • Across Portfolio, Earnings Growth Exceeding Expectations R-255 B-150 G-255 B-255 • Positioned to produce significant amounts of performance fees Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74 B-136 Note: As of September 30, 2013, unless otherwise noted. CP V performance is not representative of Carlyle’s entire portfolio and
Use colors in preferred order for best results best for order preferred in colors Use results may not be typical. Past performance is not indicative of future results and there is no guarantee these trends will continue. See “Important Information” at the beginning of this presentation. Blue R-189 1. Reflects realized deals in CP V. Includes investment in Beats Electronics announced 9/27/13. 2. Average not weighted based on invested capital and represents average of companies held 1.5 years or more in CP V as of R-0 G-230 6/30/2013. 8 82 G-161 B-247 3. Excludes co-investment. B-224 R-0 R-43 1 G-101 G-131 9 B-179 CP V “Aged” Portfolio Performance B-35
R-145 Companies Held 1.5 Years or More Total EBITDA Holding EBITDA R-156 2 G-213 As of June 30, 2013 Growth Period CAGR G-226 10 B-242 B-146 BankUnited 1 96% 4.1 yrs 18%
R-61 Booz Allen 143% 4.9 20% R-163 3 G-175 CommScope 39% 2.5 14% G-143 11 B-46 B-187 CVC 140% 3.5 28%
R-145 Healthscope 18% 2.7 6% R-127 4 G-229 G-127 12 Manor Care 17% 5.5 3% B-0 B-127 NBTY 8% 2.7 3% R-85 2 OpenLink 33% 1.8 17% R-219 G-67 13 5 G-217 B-113 PPD 29% 1.6 17% B-217 Qualicorp 3 104% 2.1 41% R-118 Sequa 4 37% 5.6 6% White 6 G-92 R-255 B-150 Syniverse 13% 2.5 5% G-255 B-255 Average excl. HD Supply 5 56% 3.3 15% Text Colors R-0 HD Supply -19% 5.8 -4% Dark Blue G-161 R-0 7 G-74 B-224 1. Growth in book value. B-136 2. Sold in 10/11; growth based on LTM EBITDA as of 9/30/11.
Use colors in preferred order for best results best for order preferred in colors Use 3. Sold in 12/12; growth based on LTM EBITDA as of 12/31/12. 4. Pro forma for divestitures. Blue R-189 5. Averages are not weighted based on invested capital. Note: The selected investments above are for informational purposes only and do not constitute investment advice or R-0 G-230 recommendations of past investments. Past performance is not necessarily indicative of future. See “Important Information” slide at 8 83 G-161 B-247 the beginning of this presentation. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle Partners V On Track with Precedent US Buyout Funds B-35
R-145 Multiple of Invested Capital 1 R-156 2 G-213 G-226 10 B-242 3.0x B-146 2.5x R-61 2.5x R-163 3 G-175 2.2x ? G-143 11 B-46 B-187 2.0x 1.8x R-145 1.7x 1.6x 1.6x R-127
4 G-229 G-127 12
B-0 1.5x B-127
R-85 R-219 G-67 1.0x 13 5 G-217 B-113 B-217 0.5x R-118 White 6 G-92 R-255 B-150 G-255
0.0x B-255 Text Colors
R-0 CP III CP IV CP V Dark Blue G-161 R-0 7 B-224 MOIC at 25th Quarter Since Fund Inception MOIC at 9/30/13 G-74
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Use colors in preferred order for best results best for order preferred in colors Use 1. CP V performance is not representative of Carlyle’s entire portfolio and results may not be typical. Represent Gross MOICs. Gross MOIC excludes management fees, expenses and carried interest, which will reduce returns and in the Blue R-189 aggregate are expected to be substantial. Past performance is not indicative of future results and there is no guarantee these trends will continue. There is no guarantee CP V will achieve a MOIC similar to CP III, CP IV or any other Carlyle fund. The US R-0 G-230 Buyout funds are not representative of all of Carlyle’s investment funds and results may not be typical. Please see “Important 8 84 G-161 B-247 Information” at the beginning of this presentation. B-224 R-0 R-43 1 G-101 G-131 9 B-179 And With its Size… B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146 Committed Capital ($bn)
R-61 R-163 3 G-175 $13.7 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 $7.9 B-127
R-85 R-219 G-67 13 5 G-217 B-113 $3.9 B-217
R-118 White 6 G-92 R-255 B-150 G-255 B-255 CP III CP IV CP V Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Note: As of 9/30/13. Presented for illustrative purposes only. There is no guarantee these trends will continue. There is no guarantee CP V will achieve a MOIC similar to CP III, CP IV or any other Carlyle fund. The US Buyout funds are not representative R-0 G-230 of all of Carlyle’s investment funds and results may not be typical. Please see “Important Information” at the beginning of this 8 presentation. 85 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle Partners V Could Realize a Large Amount of Performance Fees B-35
R-145 CP III & CP IV Net Realized Hypothetical Scenario R-156 G-213 2 Performance Fees to Date Plus CP V Total Potential Net G-226 10 B-242 B-146 Net Accrued Carry 1 Realized Performance Fees 2
R-61 $2,500 …with potential for a R-163 3 G-175 substantial portion to be G-143 11 B-46 realized over the next 5 $1,950 B-187 $2,000 years 3 R-145 $1,600 R-127 4 G-229 G-127 12
$1,500 B-0 $1,250 B-127 $927 R-85 $1,000 R-219 G-67 $618 13 5 G-217 B-113 $500 B-217
R-118 White $0 6 G-92 R-255 B-150 CP III CP IV @ 2.0x MOIC @ 2.25x MOIC @ 2.5x MOIC G-255
B-255 Text Colors ~CP IV MOIC ~CP III MOIC R-0 Note: Hypothetical illustration of what the CP V net realized performance fees could be if the fund reaches the MOICs achieved by its predecessor Dark Blue funds. The investment period for CP V ended on 5/30/2013 and it is no longer acquiring new investments. US buyout’s holding period for its G-161 R-0 7 investments is generally 3-7 years and it is expected that a substantial amount of the anticipated carried interest will be realized over the next five B-224 years. There is no guarantee CP V will achieve a MOIC similar to CP III, CP IV or any other Carlyle fund and there are no assurances as to the results G-74
of any Carlyle fund. The US Buyout funds are not representative of all of Carlyle’s investment funds and results may not be typical. Please see B-136
“Important Information” at the beginning of this presentation. Use colors in preferred order for best results best for order preferred in colors Use 1. Net realized performance fees assume a 55% split to unitholders, includes performance fees realized to date. While CP III excluded from the Blue R-189 unitization process, 55% utilized to show a comparable split to CP V. 2. CP V MOIC as of 9/30/2012 is 1.6x. R-0 G-230 3. CP V average holding period for companies held 1.5 years or more as of 6/30/2013 is 3.3 years. Average not weighted based on invested 8 86 G-161 B-247 capital. B-224 R-0 R-43 1 G-101 G-131 9 B-179 In Addition to CP V, Several CPE Funds Approaching “Harvest Mode” B-35
R-145 R-156 G-213 Invested 2 Fund Total FMV Current Net G-226 10 B-242 Capital % Invested B-146 Name ($mm) IRR ($mm) R-61 R-163 G-175 3 1 G-143 11 B-46 CEP III $6,720 97% $9,074 8% B-187
R-145 CAP II $1,627 90% $2,833 8% R-127
4 G-229 G-127 12
B-0 B-127 CAP III $2,238 88% $2,856 7%2 R-85 R-219 G-67 13 5 1 G-217 B-113 CETP II $575 77% $844 8% B-217
R-118 White CGFSP I $1,007 92% $1,487 10% 6 G-92 R-255 B-150 G-255 B-255 Total $12,168 93% $17,094 Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use 1. Basis for denominator of “% invested” based on fund size for CEP III and CETP II of $6,948 and $742, respectively. As of 9/30/2013. Funds selected do not represent the entire CPE portfolio. Results from these funds may not be typical Blue R-189 across Carlyle’s portfolio. There is no guarantee these trends will continue. For information about the performance of all of Carlyle’s significant funds, please see Carlyle’s filings with the US Securities & Exchange Commission. R-0 G-230 2. This information reflects an adjustment from the information originally reported during our Investor Day presentation 8 87 G-161 B-247 dated November 11, 2013. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Conclusions B-35
R-145 • Strong & Consistent Performance R-156 2 G-213 G-226 10 B-242 B-146 • Distributions from the CPE funds will continue to be strong – great time to exit
R-61 R-163 3 G-175 ‒ CPV ($13.7 billion fund) expected to move into “harvest” mode 2014 – 2018 G-143 11 B-46 B-187 • Foundation for long-term growth in place: R-145 R-127
4 G-229 G-127 12
B-0 – Growing portfolio values in buyout funds: US, Europe, Asia, Financial Services B-127
R-85 – Scaling up fund size: Asia, South America, CEOF R-219 G-67 13 5 G-217 B-113 – New Fund Initiatives: Africa B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 88 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 Real Assets B-127 R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 Daniel A. D’Aniello White 6 G-92 R-255 B-150 G-255
Co-Founder & Chairman B-255 Text Colors
R-0 November 11, 2013 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle Real Assets – Strategic Overview B-35
R-145 R-156 2 G-213 Strategy Assets Under Management G-226 10 B-242 B-146 • Build best-in-class global natural Energy Real Estate Infrastructure R-61 resources and real estate platform 4% R-163 3 G-175 G-143 11 B-46 B-187 31%
R-145 $39bn R-127
4 G-229 G-127 12
B-0 65% B-127
R-85 R-219 G-67 13 5 G-217 B-113 Operating Statistics ($US in bn) B-217 2009 2010 2011 2012 YTD R-118 • 28 active funds $50 White R-255 6 G-92 $40 $39 B-150 • 139 investment professionals $40 G-255 $31 $31 $29 $29 B-255 $30 $28 Text Colors • 640+ real assets investments since $23 $23 $22 Dark Blue R-0 inception $20 G-161 R-0 7 B-224 $10 G-74
• 300+ active real estate investments B-136
Use colors in preferred order for best results best for order preferred in colors Use $0 Blue R-189 • $9.1 billion of dry powder Total AUM Fee AUM R-0 G-230 8 Note: as of 9/30/2013. 90 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Our Real Assets Business is Currently in Growth Mode B-35
R-145 Current Latest New Fund R-156 2 G-213 Segment Current Status G-226 10 B-242 AUM Fund Target B-146 Plan to raise U.S. $7.0bn $2.3bn $3.5bn R-61 7th fund R-163 3 G-175 G-143 11 B-46 B-187 Real Europe $3.2bn Re-tool €2.2bn --- Estate R-145 R-127 4 G-229 rd G-127 12 Asia $2.0bn Raising 3 fund <$1bn <$1bn B-0 B-127 Plan to raise R-85 2 North America $11.8bn th 1 $3.6bn $4.0bn R-219 G-67 11 fund 13 5 G-217 B-113 B-217 International $0.5bn Raising 1st fund --- $1.5bn R-118 Natural White 6 G-92 Resources Plan to raise R-255 G-255 B-150 Power $0.3bn nd --- $1.5bn
2 fund B-255 Text Colors
R-0 3 Dark Blue G-161 Riverstone $13.0bn Harvesting $6.0bn --- R-0 7 B-224 G-74 Note: As of 9/30/13; for illustrative purposes only. B-136
1 Carlyle currently owns a revenue interest in NGP. See Carlyle’s filings with the U.S. Securities and Exchange Commission for Use colors in preferred order for best results best for order preferred in colors Use more information about Carlyle’s relationship with NGP. Blue R-189 2 NGP X. R-0 G-230 3 Carlyle/Riverstone Energy IV. Carlyle and Riverstone have mutually agreed not to pursue additional jointly managed funds 8 and we expect our strategic partnership with NGP will be our primary platform for North American energy investments going 91 G-161 B-247 forward. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle’s Real Estate Platform B-35
R-145 R-156 2 G-213 G-226 10 B-242 United States Europe Asia B-146
R-61 R-163 3 G-175 • Leading platform with • Turnaround story • Looking to scale vs G-143 11 B-46 strong track record opportunity B-187 Position • Potential for • Plan to scale through managed accounts R-145 R-127
4 G-229 7th fund G-127 12
B-0 B-127
R-85 Current AUM $7.0 billion $3.2 billion $2.0 billion R-219 G-67 13 5 G-217 B-113 • Improving jobs • Out of recession • Growing middle class B-217 situation R-118 • Recovery lags U.S. • Strong retail growth White 6 G-92 • Bust bigger than R-255 B-150 • Unemployment high • Urbanization G-255 boom B-255 but not likely to Text Colors Backdrop • Rise of tier-2,-3, and - • Housing shortage significantly worsen Dark Blue R-0 4 cities in China G-161 R-0 7 B-224 • Traditional lenders G-74 B-136
being replaced Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Note: As of 9/30/13. For illustrative purposes only. 92 G-161 B-247 B-224 R-0 R-43 1 G-101 Carlyle’s Natural Resources Platform: G-131 9 B-179 Expected Drivers Of Fee-Earning AUM ($ billions) B-35 Current R-145 Future R-156 2 G-213 G-226 10 B-242 B-146 Power Fund Non-Riverstone International Target Potential FEAUM Energy Fund R-61 R-163 11th Vintage Target 3 G-175 $1.5 G-143 11 B-46 NGP Fund Target $1.5 B-187
R-145 R-127 4 G-229 $4.0 G-127 12 B-0 NGP Current Funds B-127 Riverstone R-85 $16.6 R-219 G-67 13 5 G-217 B-113 B-217 $9.6 R-118 $8.5 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 1 1 R-0 7 Mgmt. Fee Ownership 10% 55% 55% 100% 100% B-224 G-74 2 2 3 3 B-136
Carry Ownership 20-30% 0 /47.5% 47.5% 55% 55% Use colors in preferred order for best results best for order preferred in colors Use Note: As of 9/30/13. For illustrative purposes only. There is no guarantee any of these funds will reach their targets or that our Blue R-189 fee-earning AUM will grow as set forth above. See “Important Information” at the beginning of this presentation. R-0 G-230 1 Assumes purchase of additional 7.5% revenue interest in 2014 for $7.5 million. 8 2 Assumes exercise of carry option on NGP X ($3.6 billion of current Fee-Earning AUM) and NGP XI for a total of ~$105 million. 93 G-161 B-247 3 55% owned by Carlyle; 45% owned by investment professionals. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Energy & Power – Key Trends B-35
R-145 R-156 2 G-213 Unconventional Growing Capital G-226 10 B-242 B-146 Resources Revolution Requirements • $37 trillion of cumulative investment R-61 • Natural gas will almost overtake coal needed by 2035 R-163 3 G-175 by 2035 G-143 11 B-46 • $19 trillion in oil & gas and $17 trillion B-187 • U.S. to become self-sufficient by 2035 in power R-145 R-127 4 G-229 G-127 12 B-0 Growing Demand from Diversification of B-127 R-85 Emerging Markets Global Trade Flows R-219 G-67 13 5 G-217 B-113 • Non-OECD share of total energy • North America to become net demand will rise to 65% by 2035 exporter by 2035 B-217
R-118 • China’s energy demand will increase • Asia to become destination of 90% of White 6 G-92 60% by 2035 Middle East oil R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Global energy demand expected to increase by one-third by 2035 Blue R-189 R-0 G-230 8 Source: International Energy Agency World Energy Outlook 2012. 94 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 US Real Estate B-127 R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 Robert G. Stuckey White 6 G-92 R-255 B-150 G-255
Managing Director & Head of U.S. Real Estate B-255 Text Colors
R-0 November 11, 2013 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Agenda B-35
R-145 R-156 2 G-213 G-226 10 B-242 I. Overview & Performance B-146
R-61 R-163 3 G-175 II. Fund Construction G-143 11 B-46 B-187
R-145 III. Investment Conditions R-127
4 G-229 G-127 12
B-0 B-127
R-85 IV. Application of Strategy R-219 G-67 13 5 G-217 B-113 B-217 V. Conclusion R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 96 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Overview and Performance B-35
R-145 The Carlyle Approach R-156 2 G-213 G-226 10 B-242 • Depth B-146
R-61 R-163 3 G-175 – 80 investment professionals G-143 11 B-46 B-187 – Four offices: Washington DC, New York, Los Angeles and San Francisco R-145 R-127
4 G-229 G-127 12
B-0 • Continuity B-127
R-85 R-219 G-67 – Senior leadership average tenure of 15 years 13 5 G-217 B-113 B-217 • Differentiated Approach R-118 White 6 G-92 R-255 B-150 – Fund Construction G-255
B-255 Text Colors R-0 – Investment Philosophy Dark Blue G-161 R-0 7 B-224 G-74 B-136
• Six Funds: 1997 - Present Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 As of 9/30/13 97 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Overview & Performance B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146 Investments 413 R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 Realizations & Partial Realizations 242 R-127
4 G-229 G-127 12
B-0 B-127
R-85 1 Realized Gross IRR 20% R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use 1 As of 9/30/13. This calculation differs from the IRR presented in the US Real Estate Track Record, which among other variations, is prepared using a time zero methodology which affects the timing of contributions from, and distributions to, Blue R-189 limited partners in the funds. Using this calculation, the Realized Gross IRR is 21%. Includes Funds I-VI aggregate investment R-0 G-230 results excluding Carlyle-sponsored co-investment. Gross IRRs do not reflect management fees, carried interest, taxes, 8 transaction costs & other expenses to be borne by investors in the Funds, which will reduce returns & in the aggregate are 98 G-161 B-247 expected to be substantial. See “Important Information” at the beginning of this presentation. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Agenda B-35
R-145 R-156 2 G-213 G-226 10 B-242 I. Overview & Performance B-146
R-61 R-163 3 G-175 II. Fund Construction G-143 11 B-46 B-187
R-145 III. Investment Conditions R-127
4 G-229 G-127 12
B-0 B-127
R-85 IV. Application of Strategy R-219 G-67 13 5 G-217 B-113 B-217 V. Conclusion R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 99 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Fund Construction B-35
R-145 Fund V – Goal R-156 2 G-213 G-226 10 B-242 • A top performing opportunistic fund of its vintage1 B-146
R-61 • Attractive returns while managing risk R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 1 As of 6/30/13. Source: Preqin. Fund V is a first quartile fund for the 2006 vintage opportunistic real estate funds. 100 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Fund Construction B-35
R-145 Fund V – Construction R-156 2 G-213 G-226 10 B-242 • Leverage B-146 – Loan-to-value: 54%1 R-61 – Multiple capital structures R-163 3 G-175 G-143 11 B-46 • Diversification B-187 – 149 investment positions R-145 – No deal comprises more than 6% of fund equity R-127
4 G-229 G-127 12
B-0 – Median equity position under 1% of fund equity B-127 • Exit Flexibility R-85 R-219 G-67 – Option to exit sooner 13 5 G-217 B-113 – Option to exit in multiple formats B-217 o Single asset sales R-118 White o Aggregation / portfolio sales 6 G-92 R-255 B-150 G-255
• Return of Capital B-255 Text Colors • Profit Margin R-0 Dark Blue G-161 R-0 7 • Sector Choice B-224 G-74 B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 1 As of 6/30/13. 101 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Fund Construction B-35
R-145 Fund V – Exit Flexibility R-156 2 G-213 G-226 10 B-242 B-146
R-61 Data Center Portfolio R-163 3 G-175 G-143 11 B-46 B-187 • IPO share price: $16 R-145 R-127
4 G-229 • Currently trading: $31 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use 1 Stock price as of 11/8/2013. This case study is intended as a reflection of Carlyle’s investment process and references to this particular portfolio company should not be considered a recommendation of any particular security or portfolio company. Blue R-189 The information presented is intended to be illustrative and is not intended to be used as an indication of the current or R-0 G-230 future performance of Carlyle’s portfolio companies. Results may not be typical. See “Important Information” at the 8 beginning of this presentation. 102 G-161 B-247 B-224 RR--00 R-43 1 GG--101101 G-131 9 BB--179179 Overview & Performance B-35
RR--145145 Fund V – Return of Capital R-156 2 GG--213213 G-226 10 BB--242242 B-146
RR--6161 R-163 3 GG--175175 G-143 11 BB--4646 B-187
RR--145145 R-127
4 GG--229229 G-127 12
BB--00 Cash flow 25% B-127
RR--8585 100% R-219 GG--6767 13 5 G-217 BB--113113 by Q4-2013 Sales 75% B-217
RR--118118 White 6 GG--9292 R-255 BB--150150 G-255
B-255 Text Colors
RR--00 Dark Blue GG--161161 R-0 7 BB--224224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue RR--189189 R-0 GG--230230 As of 9/30/13, Carlyle Realty Partners, V, L.P. returned 99% of the capital invested to fund investors with respect to fund only 8 investments. Does not include Carlyle sponsored coinvestments. Results may not be typical. 103 G-161 BB--247247 B-224 RR--00 R-43 1 GG--101101 G-131 9 BB--179179 Fund Construction B-35
RR--145145 Fund V – Profit Margin R-156 2 GG--213213 G-226 10 BB--242242 Carlyle approach to achieve a 2.0x multiple B-146
RR--6161 R-163 3 GG--175175 2.0x G-143 11 BB--4646 through B-187 40-50% investing profit margin RR--145145 1.4x – 1.5x R-127 4 GG--229229 G-127 12 BB--00 unlevered Total Capitalization B-127 multiple RR--8585 R-219 GG--6767 40%-50% 13 5 G-217 BB--113113 equity B-217 2.0x RR--118118 White leveraged 6 GG--9292 R-255 BB--150150 multiple G-255 B-255 50%-60% Text Colors RR--00 debt Dark Blue GG--161161 R-0 7 BB--224224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue RR--189189 1 Presented for illustrative purposes only. Profit margins represent project level metrics. There is no guarantee Carlyle Realty R-0 GG--230230 Partners V, L.P. or any fund will be able to achieve these returns. See “Important Information” at the beginning of this 8 presentation. 104 G-161 BB--247247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Fund Construction B-35
R-145 Fund V – Profit Margin R-156 2 G-213 G-226 10 B-242 650 Madison B-146 F R-61 C M I R-163 3 G-175 E A G-143 11 B-46 N F D B-187 T T I R-145 R H S R-127 4 G-229 G-127 12 A O B-0 B-127 L A N R-85 V R-219 G-67 13 5 P E E 60TH STREET A G-217 B-113 A N V B-217 R U E R-118 E White 6 G-92 K N R-255 B-150 E 59TH STREET G-255 U B-255 E Income increased 130% Text Colors R-0 Dark Blue G-161 since acquisition R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use E 58TH STREET Blue R-189 This case study is intended as a reflection of Carlyle’s investment process and references to this particular portfolio company should R-0 G-230 not be considered a recommendation of any particular security or portfolio company. The information presented is intended to be 8 illustrative and is not intended to be used as an indication of the current or future performance of Carlyle’s portfolio companies. 105 G-161 B-247 B-224 Animated Results may not be typical. See “Important Information” at the beginning of this presentation. RR--00 R-43 1 GG--101101 G-131 9 BB--179179 Fund Construction B-35
RR--145145 Fund V – Profit Margin R-156 2 GG--213213 G-226 10 BB--242242 650 Madison B-146
RR--6161 R-163 3 GG--175175 G-143 11 BB--4646 B-187 Realized RR--145145 R-127 4 GG--229229 G-127 12 Exit Value BB--00 B-127
RR--8585 $1.3bn R-219 GG--6767 13 5 G-217 BB--113113 Cost Basis B-217
RR--118118 $810mm White 6 GG--9292 R-255 BB--150150 G-255
B-255 Text Colors
RR--00 Dark Blue GG--161161 R-0 7 BB--224224 G-74 B-136 This case study is intended as a reflection of Carlyle’s investment process and references to this particular portfolio company should Use colors in preferred order for best results best for order preferred in colors Use not be considered a recommendation of any particular security or portfolio company. The information presented is intended to be Blue RR--189189 illustrative and is not intended to be used as an indication of the current or future performance of Carlyle’s portfolio companies. Results may not be typical. See “Important Information” at the beginning of this presentation. Cost basis is Carlyle level unlevered R-0 GG--230230 calculation. 8 106 G-161 BB--247247 B-224 Animated R-0 R-43 1 G-101 G-131 9 B-179 Fund Construction B-35
R-145 Fund V – Diversification by Sector R-156 2 G-213 G-226 10 B-242 Data B-146 Senior Centers Living R-61 5% 2% Residential R-163 3 G-175 Mortgage G-143 11 B-46 Backed B-187 Securities Office R-145 34% R-127
4 G-229 17% G-127 12
B-0 B-127 Off-cycle R-85 R-219 G-67 13 5 sectors G-217 B-113 For-Sale 55% B-217 Residential R-118 6% White 6 G-92 Distressed R-255 B-150 G-255 Residential B-255 Retail 4% Text Colors R-0 13% Dark Blue G-161 R-0 7 Rental B-224 G-74 Hotel B-136 Other Apartments
Use colors in preferred order for best results best for order preferred in colors Use 4% 5% 10% Blue R-189 R-0 G-230 8 As of 6/30/13. Sector allocations are subject to change as fund / portfolio matures. 107 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Fund Construction B-35
R-145 Fund V – Sector Choice: Off-Cycle Sectors R-156 2 G-213 G-226 10 B-242 Single Family (RMBS) B-146
R-61 • 69 different positions R-163 3 G-175 G-143 11 B-46 • Most of the investing occurred between 10/08 & 4/09 B-187 • $1.1 billion invested R-145 R-127 4 G-229 G-127 12 • $1.6 billion returned to fund investors: B-0 B-127 – Cash Flow R-85 R-219 G-67 13 5 – Sales G-217 B-113 – Refinancings B-217 R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 As of 6/30/13. Presented for illustrative purposes only. Results may not be typical. See “Important Information” as the 8 beginning of this presentation. $1.1 and $1.6 above refer to equity invested and distributed. 108 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Fund Construction B-35
R-145 Fund V – Diversification by Sector R-156 2 G-213 G-226 10 B-242 B-146 Data Senior Centers R-61 R-163 Living 5% 3 G-175 G-143 11 B-46 2% B-187 Residential R-145 Mortgage R-127
4 G-229 Office Backed G-127 12
B-0 17% Securities B-127 34% R-85 Cyclical R-219 G-67 13 5 G-217 B-113 sectors B-217 45% For-Sale R-118 Residential White 6% R-255 6 G-92 B-150 G-255 B-255 Distressed Text Colors R-0 Retail Residential Dark Blue G-161 13% 4% R-0 7 B-224 G-74
Rental B-136
Use colors in preferred order for best results best for order preferred in colors Use Hotel Other Apartments Blue R-189 4% 5% 10% R-0 G-230 8 As of 6/30/13. Sector allocations are subject to change as fund/portfolio matures. 109 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Fund Construction B-35
R-145 Fund V – Sector Choice: Off-Cycle Sectors R-156 2 G-213 G-226 10 B-242 666 Fifth Avenue B-146
R-61 R-163 3 G-175 F G-143 11 B-46 I B-187 F R-145 T R-127
4 G-229 G-127 12
B-0 H B-127
R-85 A R-219 G-67 13 5 G-217 B-113 V E B-217
R-118 N • 2008 acquisition White 6 G-92 E 53RD STREET U R-255 B-150 • Distressed transaction G-255 E B-255 E 52ND STREET • One of highest grossing retail Text Colors R-0 Dark Blue G-161 R-0 7 sales blocks in Manhattan B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 This case study is intended as a reflection of Carlyle’s investment process and references to this particular portfolio company should not be considered a recommendation of any particular security or portfolio company. The information presented is R-0 G-230 intended to be illustrative and is not intended to be used as an indication of the current or future performance of Carlyle’s 8 110 G-161 B-247 portfolio companies. Results may not be typical. See “Important Information” at the beginning of this presentation. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Fund Construction B-35
R-145 Fund V – Cyclical Sectors: 666 Fifth Avenue R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 HOLLISTER B-187
R-145 R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 • Purchase price: $525 million B-217
R-118 • Cost basis: $662 million White 6 G-92 R-255 B-150 • Realized exit value: $1.03 billion G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Cost basis is Carlyle level unlevered calculation. This case study is intended as a reflection of Carlyle’s investment process and references to this particular portfolio company Blue R-189 should not be considered a recommendation of any particular security or portfolio company. The information presented is R-0 G-230 intended to be illustrative and is not intended to be used as an indication of the current or future performance of Carlyle’s Animated8 portfolio companies. Results may not be typical. See “Important Information” at the beginning of this presentation. 111 G-161 B-247 B-224
R-0 R-43 1 G-101 G-131 9 B-179 Fund Construction B-35
R-145 Fund V – Construction R-156 2 G-213 G-226 10 B-242 • Leverage B-146
R-61 • Diversification R-163 3 G-175 G-143 11 B-46 • Exit Flexibility B-187
R-145 • Return of Capital R-127 4 G-229 G-127 12 B-0 • Profit Margin B-127 R-85 R-219 G-67 • Sector Choice 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 112 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Agenda B-35
R-145 R-156 2 G-213 G-226 10 B-242 I. Overview & Performance B-146
R-61 R-163 3 G-175 II. Fund Construction G-143 11 B-46 B-187
R-145 III. Investment Conditions R-127
4 G-229 G-127 12
B-0 B-127
R-85 IV. Application of Strategy R-219 G-67 13 5 G-217 B-113 B-217 V. Conclusion R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 113 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Investment Conditions B-35
R-145 Investment Philosophy: R-156 2 G-213 G-226 10 B-242 • Identifying inefficiencies between: B-146
R-61 R-163 3 G-175 – Property Market Fundamentals G-143 11 B-46 B-187
R-145 – Real Estate Capital Availability R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 114 G-161 B-247 B-224 Animated RR-0- 0 R-43 1 GG-101-101 G-131 9 B-B179-179 Investment Conditions B-35
RR-145-145 Real Estate Debt Issuances R-156 2 GG-213-213 G-226 10 B-B242-242 B-146
RR-61-61 $500 R-163 3 GG-175-175 G-143 11 2015 B-B46-46 B-187 2014 $290bn $275bn RR-145-145 $400 2013 $250bn R-127 4 GG-229-229 G-127 12 B-B0- 0 2012 $240bn B-127 2007 $300 $516bn 2011 RR-85-85 $184bn R-219 GG-67-67 13 5 G-217 B-B113-113 2010 B-217 $119bn $ in Billions in $ $200 2009 RR-118-118 $82bn White 6 GG-92-92 R-255 B-B150-150 G-255 B-255 $100 Text Colors RR-0- 0 Dark Blue GG-161-161 R-0 7 B-B224-224 G-74
$0 B-136
Use colors in preferred order for best results best for order preferred in colors Use 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013P 2014P 2015P Blue RR-189-189 R-0 GG-230-230 Source – Mortgage Bankers Association as of 7/2013. Presented for illustrative purposes only. There is no guarantee these 8 trends will continue or occur. See “Important Information” at the beginning of this presentation. 115 G-161 AnimatedB-B247-247 B-224 RRR--00- 0 R-43 1 GGG--101101-101 G-131 9 BB-B-179179-179 Investment Conditions B-35
RRR--145145-145 Increasing Debt Maturities R-156 2 GGG--213213-213 G-226 10 BB-B-242242-242 $1.7 trillion of real B-146 estate debt will be RRR--6161-61 maturing by 2017 R-163 3 GGG--175175-175 $400 G-143 11 BB-B-4646-46 B-187
RRR--145145-145 R-127
4 GGG--229229-229 Historical G-127 12
BB-B-00- 0 $300 Average B-127
RRR--8585-85 R-219 GGG--6767-67 13 5 G-217 BB-B-113113-113
$200 B-217 $ in Billions in $ RRR--118118-118 White 6 GGG--9292-92 R-255 BB-B-150150-150 $100 G-255
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RRR--00- 0 Dark Blue GGG--161161-161 R-0 7 BB-B-224224-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use 2008A 2009A 2010A 2011A 2012A 2013P 2014P 2015P 2016P 2017P Blue RRR--189189-189 R-0 GGG--230230-230 Source – Spring 2013: Rosen, Mortgage Bankers Association, Morgan Stanley, SNL, Intex, Trepp, RCG. Presented for 8 illustrative purposes only. There is no guarantee these trends will continue or occur. 116 G-161 AnimatedBB-B-247247-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Investment Conditions B-35
R-145 R-156 2 G-213 G-226 10 B-242 Property B-146 Fundamentals Value R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 Opportunity Zone R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
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R-0 Capital Dark Blue G-161 R-0 7 B-224 Availability Price G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 Source – Internal Carlyle projections. Shown for illustrative purposes only. No assurances are given that these conditions will 8 materialize 117 G-161 B-247 B-224
Animated R-0 R-43 1 G-101 G-131 9 B-179 Investment Conditions B-35
R-145 R-156 2 G-213 G-226 10 B-242 Property B-146 Fundamentals Value R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
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R-85 R-219 G-67 13 5 G-217 B-113 B-217 Resumption of R-118 job growth White 6 G-92 Housing R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Q4 2009 Q1 2010 R-0 G-230 Source – Internal Carlyle projections. Shown for illustrative purposes only. No assurances are given that these conditions will 8 materialize 118 G-161 B-247 B-224
Animated R-0 R-43 1 G-101 G-131 9 B-179 Investment Conditions B-35
R-145 Investment Strategies R-156 2 G-213 G-226 10 B-242 • Job growth-driven demand B-146
R-61 • Needs-based-driven demand R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
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R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 119 G-161 B-247 B-224 Animated R-0 R-43 1 G-101 G-131 9 B-179 Investment Conditions B-35
R-145 Economic Projections R-156 2 G-213 G-226 10
B-242 US Job Growth B-146
R-61 150 Recovery of R-163 3 G-175 lost jobs by G-143 11 B-46 B-46 mid-2014 B-187
145 R-145 G-229 R-127 4 G-229 G-127 12 B-0 140 B-127 R-85 R-219 G-67 13 5 G-217 B-113 135 B-217
R-118 White G-92 millions) (in Jobs 130 6 G-92 R-255 B-150 G-255 B-255 125 Text Colors R-0 Dark Blue G-161 Nadir is R-0 7 B-224 2/10 G-74 B-136
120 Use colors in preferred order for best results best for order preferred in colors Use 2007A 2009A 2011A 2013P 2015P 2017P Blue R-189 R-0 G-230 Source: Witten Advisors (Q2 13), Bureau of Labor Statistics (7/13) and Internal Carlyle Projections. Presented for illustrative 8 B-247 purposes only. There can be no assurance that these projections will materialize. See “Important Information” at the 120 G-161 B-247 beginning of this presentation. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Investment Conditions B-35
R-145 Job Growth-Driven Demand R-156 2 G-213 G-226 10 B-242 • Job growth is returning B-146
R-61 • Invest as we see it R-163 3 G-175 G-143 11 B-46 • Local, metro-by-metro approach B-187
R-145 R-127
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B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 121 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Investment Conditions B-35
R-145 Investment Strategies R-156 2 G-213 G-226 10 B-242 • Job growth-driven demand B-146
R-61 • Needs-based-driven demand R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 122 G-161 B-247 B-224 Animated R-0 R-43 1 G-101 G-131 9 B-179 Investment Conditions B-35
R-145 US Housing Supply During the Past Decade R-156 2 G-213 G-226 10 B-242 B-146 New Construction R-61 R-163 3 G-175 G-143 11 B-46 New construction (000s) B-187
R-145 2,500 R-127 4 G-229 G-127 12
Over-production B-0 Under-production of homes B-127 2,000 of homes R-85 R-219 G-67 13 5 G-217 B-113 1,500 B-217
R-118 1,000 White 6 G-92 R-255 B-150 G-255 B-255 500 Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74 B-136
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013P 2014P 2015P Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 Source: US Census Bureau, 6/13 and internal Carlyle projections. Construction starts is gross single and multifamily. No 8 assurances are given that these trends will continue. 123 G-161 B-247 B-224 Animated R-0 R-43 1 G-101 G-131 9 B-179 Investment Conditions B-35
R-145 Carlyle Realty’s Housing Strategy R-156 2 G-213 G-226 10 B-242 B-146 Property R-61 R-163 3 G-175 Fundamentals G-143 11 B-46 B-187
R-145 Opportunity Zone R-127
4 G-229 G-127 12
B-0 B-127
R-85 Capital Markets R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255 NYC For-Sale B-255 Single Residential Text Colors R-0 Family Dark Blue G-161 Senior R-0 7 Multifamily B-224 (RMBS) G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 Source – Internal Carlyle projections. Shown for illustrative purposes only. No assurances are given that these conditions will 8 materialize. See “Important Information” at the beginning of this presentation. 124 G-161 B-247 B-224
Animated R-0 R-43 1 G-101 G-131 9 B-179 Investment Conditions B-35
R-145 Carlyle Realty’s Housing Strategy R-156 2 G-213 G-226 10 B-242 • $2.8 billion of equity invested in housing strategy (CRP V and VI) B-146 R-61 – $1.5 billion in single family (RMBS) R-163 3 G-175 G-143 11 B-46 B-187 – $1.3 billion in multifamily and other housing strategies R-145 R-127 4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217 R-118 White 6 G-92 R-255 B-150 G-255
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R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 As of 6/30/13. This case study is intended as a reflection of Carlyle’s investment process and references to this particular portfolio company should not be considered a recommendation of any particular security or portfolio company. The information presented R-0 G-230 is intended to be illustrative and is not intended to be used as an indication of the current or future performance of Carlyle’s 8 portfolio companies. Results may not be typical. See “Important Information” at the beginning of this presentation. 125 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Agenda B-35
R-145 R-156 2 G-213 G-226 10 B-242 I. Overview & Performance B-146
R-61 R-163 3 G-175 II. Fund Construction G-143 11 B-46 B-187
R-145 III. Investment Conditions R-127
4 G-229 G-127 12
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R-85 IV. Application of Strategy R-219 G-67 13 5 G-217 B-113 B-217 V. Conclusion R-118 White 6 G-92 R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 126 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Application of Strategy B-35
R-145 Fund VI R-156 2 G-213 G-226 10 B-242 • $2.3 billion fund size B-146
• $1.1 billion called; $1.7 billion invested1 R-61 R-163 3 G-175 • 100+ investments1 G-143 11 B-46 B-187 • 49% Loan-To-Value2 R-145 R-127 4 G-229 G-127 12 B-0 Elements of Fund Construction B-127 R-85 R-219 G-67 • Leverage 13 5 G-217 B-113 • Diversification B-217
R-118 • Exit Flexibility White 6 G-92 R-255 B-150 G-255
• Return of Capital B-255 Text Colors
R-0 • Profit Margin Dark Blue G-161 R-0 7 B-224 • Sector Choice G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 1 Invested capital is as of 10/31/13, and includes investments that are closed as well as pipeline investments projected to close in the near term. There can be no assurances that Carlyle will consummate certain of the investments included R-0 G-230 herein. 8 2 As of 6/30/13 on closed investments. 127 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Application of Strategy B-35
R-145 Fund VI – Diversification by Sector R-156 2 G-213 G-226 10 B-242 B-146 Fully invested (projected): R-61 Office R-163 G-175 3 10% G-143 11 B-46 B-187 Retail 5% R-145 R-127
4 G-229 Industrial Rental G-127 12
B-0 5% Apartments B-127 Job 36% R-85 growth- Needs- R-219 G-67 13 5 based-driven G-217 B-113 driven Hotel demand 10% demand B-217 R-118 30% 70% White 6 G-92 R-255 B-150 G-255 B-255 For-Sale Text Colors Dark Blue R-0 Residential Senior Living G-161 13% R-0 7 7% G-74 B-224 Student Other B-136
Housing Housing Use colors in preferred order for best results best for order preferred in colors Use 4% 10% Blue R-189 Current projection of the fully invested fund as of 8/31/13, although no assurances can be given that this projected sector R-0 G-230 allocation will ultimately materialize. Internal Carlyle projection. Office includes 2% “other” projection. See “Important 8 Information” slide at the beginning of this presentation. 128 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Agenda B-35
R-145 R-156 2 G-213 G-226 10 B-242 I. Overview & Performance B-146
R-61 R-163 3 G-175 II. Fund Construction G-143 11 B-46 B-187
R-145 III. Investment Conditions R-127
4 G-229 G-127 12
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R-85 IV. Application of Strategy R-219 G-67 13 5 G-217 B-113 B-217 V. Conclusion R-118 White 6 G-92 R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 129 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Conclusion B-35
R-145 The Carlyle Approach R-156 2 G-213 G-226 10 B-242 • Sustainably attractive results, lower risk B-146
R-61 • Well-positioned for next Fund R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 130 G-161 B-247 As of 8/31/13 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 Natural Resources Platform Overview B-127 R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 Kenneth A. Hersh White 6 G-92 R-255 B-150 G-255
Chief Executive Officer B-255 Text Colors
R-0 NGP Energy Capital Management Dark Blue G-161 R-0 7 B-224 G-74
November 11, 2013 B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Agenda B-35
R-145 R-156 2 G-213 I. Overview of The Carlyle Group Natural Resources Platform Today G-226 10 B-242 B-146
R-61 II. The Market Opportunity R-163 3 G-175 G-143 11 B-46 III. Our Team & Performance B-187
R-145 R-127
4 G-229 IV. Conclusion G-127 12
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R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 132 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle Natural Resources Overview B-35
R-145 • Assembled best-in-class global natural resources platform R-156 2 G-213 G-226 10 B-242 B-146 • Specialist funds with a focus on energy versus generalist competitors R-61 R-163 3 G-175 G-143 11 B-46 • Fund managers have deep expertise with impressive track records B-187
R-145 • Core natural resource platform in place seeking to raise $7+ billion of new capital R-127
4 G-229 G-127 12
B-0 across three funds over the next two years B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 133 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Three Specialized Strategies Replace Legacy Carlyle Energy Platform B-35
R-145 R-156 2 G-213 G-226 10 B-242 AUM Geographic B-146 Investment Strategy Description / Area of Focus ($ bn) Location R-61 R-163 3 G-175 Oil and gas resource acquisition, Exploration G-143 11 B-46 North America Energy and exploitation opportunities along with $11.8 North America B-187 Oilfield Services/midstream infrastructure R-145 R-127 4 G-229 G-127 12 B-0 Oil and gas exploration, production, refining Recently Global ex North B-127 International Energy and marketing, and energy services launched America R-85 R-219 G-67 13 5 G-217 B-113 B-217 Recently Power Acquisition and development of power assets North America launched R-118 White 6 G-92 R-255 B-150 G-255 B-255 Legacy North America Generalist large-cap energy buy-out; Carlyle North America Text Colors $13.0 R-0 Energy (Riverstone) exposure winding down (primarily) Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Notes: NGP and legacy energy fund AUM as of September 30, 2013. Target Fund size AUM for International Energy and Power R-0 G-230 based on current expectations. There is no guarantee that these funds will reach their target size. See “Important Information” 8 at the beginning of this presentation. 134 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 We See An Opportunity to Raise $7+ billion in New Capital By 2015 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146 Target Fund Size Investment Strategy Headcount ($ bn) Description R-61 R-163 3 G-175 • Focus on mid-market private equity G-143 11 B-46 North American transactions in North America (80% B-187 ~70 $4.0 Energy Exploration & Production) R-145 • Deal size up to ~$500 mm in equity R-127
4 G-229 G-127 12
B-0 B-127 • Focus on mid-market private equity International Energy $1.5 R-85 8 transactions outside of North America R-219 G-67 • Deal size: up to ~$150 mm in equity 13 5 G-217 B-113 B-217 • Focus on investing in power generation assets R-118 Power1 7 $1.5 through both acquisition and development White 6 G-92 • Deal size: generally $75-$350 million in equity R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use As of 9/30/2013. Target fund size AUM size based on current expectations. There is no guarantee these funds will reach their Blue R-189 target size. See “Important Information” at the beginning of this presentation. R-0 G-230 1. This information reflects an adjustment from the information originally reported during our Investor Day presentation dated 8 November 11, 2013. 135 G-161 B-247 B-224 R-0 R-43 1 G-101 When Combined with our GMS Platform, Carlyle’s Natural Resource G-131 9 B-179 Investing Capabilities are Differentiated in Scope & Scale B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 Carlyle Energy Mezzanine R-163 G-175 3 NPG Energy Capital Opportunities Fund G-143 11 B-46 Management B-187 North America Energy R-145 North America Natural Structured Debt Platform Resources Platform R-127
4 G-229 G-127 12
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R-85 R-219 G-67 13 5 G-217 B-113 Carlyle International Energy B-217 Partners Vermillion Asset R-118 White Carlyle Power Partners Management R-255 6 G-92 International (non-North America) G-255 B-150 Oil & Gas Platform Physical Commodity Focused North America Power B-255
Hedge Fund Text Colors Platform R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 As of September 30, 2013. 136 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Agenda B-35
R-145 R-156 2 G-213 I. Overview of The Carlyle Group Natural Resources Platform Today G-226 10 B-242 B-146
R-61 II. The Market Opportunity R-163 3 G-175 G-143 11 B-46 III. Our Team & Performance B-187
R-145 R-127
4 G-229 IV. Conclusion G-127 12
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R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 137 G-161 B-247 B-224 R-0 R-43 1 G-101 Energy Demand is Expected to Grow as a Result of Economic Growth G-131 9 B-179 Outside of the OECD B-35
R-145 R-156 2 G-213 G-226 10 B-242 Billion toe B-146 17 R-61 2030 Level R-163 3 G-175 G-143 11 B-46 Renew B-187 16 Hydro R-145 R-127
4 G-229 Nuclear G-127 12
B-0 15 B-127 Coal R-85 R-219 G-67 13 5 Shale G-217 B-113 14 B-217 Other R-118 White 13 6 G-92 Tight R-255 B-150 G-255
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R-0 12 Dark Blue G-161 R-0 7 2011 OECD Non- 2011 Oil Natural Coal Non-Fossil B-224 G-74
OECD Gas B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 Source: BP Energy Outlook 2030, January 2013 There is no guarantee these projections will ultimately materialize. See “Important 8 Information” at the beginning of the presentation. 138 G-161 B-247 B-224 R-0 R-43 1 G-101 North America Energy Investment Opportunities Supported by Need for G-131 9 B-179 Private Capital and Increasing Global Demand B-35
R-145 Major Investment Drivers Opportunity Set R-156 2 G-213 G-226 10 B-242 • Global population / urbanization increases • Oil and gas resource acquisition, B-146 demand for electricity and oil & gas exploitation and development driven by R-61 transportation ~$100 billion in asset turnover & ~$200 R-163 3 G-175 billion E&P capital expenditures per G-143 11 B-46 annum B-187 • Industry capital intensity & asset turnover high R-145 • Oilfield Services acquisitions driven by R-127
4 G-229 funding requirements throughout cycles G-127 12
B-0 • Resource nationalism limits access to new B-127 foreign development, making North • Midstream & infrastructure ownership R-85 America desirable driven by new supply requiring support R-219 G-67 13 5 transport & gathering infrastructure G-217 B-113 • Supply growth needs sustained price B-217 levels • Industry capital needs exceed free cash R-118 flow White 6 G-92 R-255 B-150 • Climate change & regulatory concerns • Must rely upon private equity, capital G-255 B-255
markets, asset sales, or industry/foreign Text Colors partnerships for funding R-0 • Breakthrough alternative energy Dark Blue G-161 R-0 7 technologies are over 25 years at scale B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Source: John S. Herold Inc transaction database.; Barclay’s Global 2013 E&P Spending Outlook, December 2012; HSBC Research 139 G-161 B-247 October 2012. B-224 R-0 R-43 1 G-101 International Energy Production is Forecast to Grow at 18% Between G-131 9 B-179 2011 & 2020, Creating Compelling Investment Opportunities1 B-35
R-145 R-156 2 G-213 G-226 10 B-242 Macro Industry Trends The International Opportunity B-146
R-61 R-163 3 G-175 G-143 11 B-46 Growing Energy Demand: Favorable Vast Opportunity Set: Current energy B-187 long-term growth fundamentals supply & infrastructure requires continued supported by the increasing energy investment to meet demand particularly demand of non-OECD nations outside of North America R-145 R-127
4 G-229 G-127 12
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Less Competition: Reduced penetration R-85 Significant Capital Required: Capital of private equity in Europe & Africa versus R-219 G-67 needs consistently outstripping capex 13 5 North America, especially in the energy G-217 B-113 budgets & capital markets capacity sector B-217
R-118 White 6 G-92 R-255 B-150 G-255 B-255
Deal Volume: Continued portfolio churn Text Colors Tax Efficiency: Minimal US tax leakage for by strategics create consistent transaction non-US investors (i.e. no FIRPTA expected) R-0 volume where private equity can benefit Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 There is no assurance that these projections will ultimately materialize. See “Important Information” at the beginning of this R-0 G-230 presentation. 8 1. Source: IEA World Energy Outlook 2012. 140 G-161 B-247 B-224 R-0 R-43 1 G-101 Approximately $1 Trillion of Investment is Needed in US Power Markets G-131 9 B-179 by 2020 Including Over $500B in Generation Alone B-35
R-145 R-156 2 G-213 Projected U.S. Supply / Demand (2013E - 2020E) G-226 10 B-242 B-146 35%
R-61 30% Reserve Margin • R-163 3 G-175 Massive investment expected G-143 11 B-46 Target Reserve Margin to be required over next 5-7 B-187 25% 50 GW years R-145 Retired • Forecasts suggest supply R-127
4 G-229 20% (Net) G-127 12
B-0 shortage looming in select B-127
15% markets R-85 Target Level R-219 G-67 • First mover advantage 13 5 G-217 B-113 10% important, but the U.S. U.S. Reserve Margin (%) B-217 Adequate application of technical 5% Scarcity R-118 Supply expertise will drive above White 6 G-92 R-255 B-150 average returns G-255 0% B-255 2013 2014 2015 2016 2017 2018 2019 2020 Text Colors R-0 Dark Blue G-161 R-0 7 CPP B-224 • Buy/Fix/Optimize G-74 Strategy Sell B-136
• Build for scarcity Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Source: Carlyle Analysis. IHS CERA and Ventyx Velocity Suite R-0 G-230 For illustrative purposes only. There can be no assurance that these projections will ultimately materialize. See “Important Information” at the 8 beginning of this presentation. 141 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Agenda B-35
R-145 R-156 2 G-213 I. Overview of The Carlyle Group Natural Resources Platform Today G-226 10 B-242 B-146
R-61 II. The Market Opportunity R-163 3 G-175 G-143 11 B-46 III. Our Team & Performance B-187
R-145 R-127
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R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 142 G-161 B-247 B-224 R-0 R-43 1 G-101 NGP Energy Capital Management (“NGP”) has invested in the U.S. energy G-131 9 B-179 sector for over 25 years B-35
R-145 R-156 2 G-213 G-226 10 B-242 $ in billions B-146 Current Fund Cost Realized Value Total Return MOIC Gross IRR R-61 R-163 3 G-175 G-143 11 B-46 B-187 Realized (1) $2.8 $7.9 NA $7.9 2.8x 33%
R-145 R-127 4 G-229 G-127 12 B-0 Active $5.1 NM $6.9 $6.9 1.3x 10% B-127
R-85 R-219 G-67 13 5 G-217 B-113 Total Gross $7.9 $7.9 $6.9 $14.8 1.9x 31% B-217
R-118 White 6 G-92 LP Net 1.6x 21% R-255 B-150 G-255
B-255 Text Colors
Dark Blue R-0 Past performance is not necessarily indicative of future results. The NGP investment performance is derived from funds having different investment strategies from that of any existing Carlyle G-161 fund, including without limitation different jurisdictional focus. As co-founder and CEO of NGP, Mr. Hersh is one of several persons advising the strategic and investment activities of NGP and R-0 7 is not independently responsible for achieving the performance results of NGP. Amounts exclude unfunded commitments to existing portfolio companies totaling $1,010M, and current B-224 G-74 estimated value shown is based on September 30, 2013 unaudited financial statements. Each investment’s equity valuation was used as the basis for calculating such investment’s “Gross IRR.” B-136 “Gross IRR” means an aggregate, compound, annual, gross internal rate of return on investments. Gross IRRs do not reflect management/advisory fees, carried interest, taxes, transaction costs
Use colors in preferred order for best results best for order preferred in colors Use in connection with the disposition of unrealized investments and other expenses that are borne by investors in NGP funds, which will reduce returns, and in the aggregate are expected to be substantial. Blue R-189 R-0 G-230 1. Realized calculations include distributions from both fully and partially realized, yet still active, investments. 8 143 G-161 B-247 B-224 R-0 R-43 1 G-101 Two New Platforms to Take Advantage of Opportunities in International G-131 9 B-179 Energy & Power B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146 International Energy Power
R-61 Core Product Non-North America Energy North America Power R-163 3 G-175 G-143 11 B-46 B-187
R-145 Fund Head Marcel van Poecke – Bob Mancini & Matt O’Connor R-127
4 G-229 experienced energy investor & lead an experienced team of G-127 12
B-0 operator with 25 years of powerplant investors and B-127 experience operators1 R-85 R-219 G-67 13 5 G-217 B-113 Activity Invested in a variety of Developed / acquired 41 businesses throughout the power plants since 1983 B-217 energy value chain R-118 White 6 G-92 R-255 B-150 G-255 B-255 Target Fund Size $1.5 bn $1.5 bn Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Notes: Target Fund size AUM for International Energy and Power based on current expectations. There is no guarantee that Blue R-189 these funds will reach their target size. See “Important Information” at the beginning of this presentation. R-0 G-230 1. This information reflects an adjustment from the information originally reported during our Investor Day presentation dated 8 November 11, 2013. 144 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Agenda Conventions B-35
R-145 R-156 2 G-213 I. Overview of The Carlyle Group Natural Resources Platform Today G-226 10 B-242 B-146
R-61 II. The Market Opportunity R-163 3 G-175 G-143 11 B-46 III. Our Team & Performance B-187
R-145 R-127
4 G-229 IV. Conclusion G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 145 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Building the Premier Global Natural Resource Franchise B-35
R-145 • Addresses demand to invest in growing natural resource opportunity across the R-156 2 G-213 G-226 10 B-242 globe B-146
R-61 • Cornerstone partnership with NGP provides best-in-class North American E&P R-163 3 G-175 G-143 11 B-46 capabilities B-187
R-145 • Leverages Carlyle’s global footprint & fund raising strength to fully exploit R-127
4 G-229 G-127 12
B-0 energy opportunity B-127
R-85 • Replaces prior energy exposure with a Carlyle-owned global platform of R-219 G-67 13 5 G-217 B-113 specialist / best-in-class capabilities B-217
R-118 • Scalable platform built to produce attractive returns for fund investors & White 6 G-92 R-255 B-150 meaningful distributable earnings for unitholders G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 146 G-161 B-247 B-224 CHARTS & OBJECTS Text #1 Header Color #1 R: 153 Col 8 Row 5 G: 255 The Column / R – 255 B: 51 Row values can G – 255 B - 255 be found in the Text # 2 “area” color Color #2 Body-white Col 5 Row 2 R: 255 choice section R – 0 for choosing G: 255 G – 128 B: 255 pie & column B - 128 chart colors Color #3 Col 2 Row 4 The RGB R – 255 Text #3 values can be G – 204 B - 0 Emphasis found at R: 102 Fill Effects > Color #4 G: 255 Col 2, Row 1 B: 255 More Fill R - 153 Colors > G - 51 Custom B - 0 Black for good Color #5 contrast with Col 6 Row 3 bright R – 51 background G – 102 Investor Day elements B - 255 Text #4 Color #6 (Black) Col 3 Row 3 R: 0 R – 153 November 11, 2013 G: 0 G – 255 B: 0 B - 51
Color #7 Col 8 Row 4 R – 192 G – 192 B - 192
12 13 9 10 11 Text Colors
27 27 27 0 0 74 43 35 - - 255 - 161 1 217 131 226 143 255 255 136 224 1 219 156 163 1 217 146 187 ------R R ------G Blue B R
B B B White R G G B B B B R R R R G G G G G Dark Blue
November 2013 11, November Michael “Mitch” J. Petrick J. Michael “Mitch” Strategies Market Global of Head & Director Managing Global Market Strategies Strategies Market Global
0 0 0 92 67 85 61 46 - - - 230 161 229 175 213 101 189 118 145 145 247 224 150 113 242 179 ------B R R B R R G G B B B B B B R R R R G G G G G G
8 7 6 5 4 3 2 1
Use colors in preferred order for best results best for order preferred in colors Use
R-0 R-43 1 G-101 G-131 9 B-179 Carlyle Global Market Strategies (“GMS”) B-35
R-145 Overview Performance Metrics R-156 2 G-213 G-226 10 B-242 B-146 Global, multi-product & markets-focused ($US in bn) investment platform 2009 2010 2011 2012 YTD R-61 $50 R-163 3 G-175 G-143 11 Seize today’s investment opportunities by $40 B-46 $35 $34 B-187 1) partnering with existing investment $33 $31 $30 management platforms and launching new $25 $23 R-145 $21 $19 investment strategies; and 2) appropriately $20 R-127 4 G-229 $13 $13 G-127 12 B-0 scaling current products $10 B-127
R-85 $0 R-219 G-67 Total AUM Fee AUM 13 5 G-217 B-113 Statistics ($US in mm) B-217 $250 7 distinct investment strategies $220 $193 R-118 $200 $198 White $168 R-255 6 G-92 61 individual funds $162 $165 B-150 $150 G-255 B-255
1 Text Colors 148 investment professionals $104 $100 R-0 Dark Blue G-161 34 Carlyle offices worldwide R-0 7 $50 B-224 $23 G-74 B-136 $0 $0
Diversified investor base $0 Use colors in preferred order for best results best for order preferred in colors Use Distributable Earnings Economic Net Income Blue R-189 R-0 G-230 Note: as of 9/30/2013. DE, ENI figures are calculated for last twelve months period ending 9/30/13. (1) Excludes 3 GMS 8 Management investment professionals, not dedicated to any particular fund and 61 middle and back office professionals. 149 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS - Organizational Structure B-35
R-145 R-156 2 G-213 Global Market Strategies G-226 10 B-242 B-146
R-61 Chief Operating Officer Chief Risk Officer R-163 G-175 3 Ian Sandler Prabu Davamanirajan G-143 11 B-46 B-187
R-145 Accounting Trade Risk Risk R-127 4 G-229 Technology G-127 12 & Operations Support Management Measurement B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217 Carry Funds & Financing Hedge Funds Structured Credit
R-118 White 6 G-92 Emerging R-255 B-150 Carlyle GMS Strategic Energy Structured G-255 Claren Road Sovereign Vermillion B-255
Finance Partners Mezzanine Credit Text Colors Group R-0 Dark Blue G-161 R-0 7 B-224 Carlyle Internal Information Barrier G-74
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Use colors in preferred order for best results best for order preferred in colors Use Carlyle Corporate Private Equity, Real Assets & Solutions Blue R-189 R-0 G-230 8 Note: Presented for illustrative purposes only. As of 9/30/2013. 150 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Absolute & Risk-Adjusted Returns B-35
R-145 Return profiles by asset class inherently unstable over time R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 2006 High Equities Commodities B-187
Leveraged Yield R-145 R-127
4 G-229 Loan G-127 12
B-0 IG Corp B-127
R-85 Gov’t R-219 G-67 13 5 G-217 B-113
Cash Commodities B-217 Expected Return Expected R-118 High Equities White 6 G-92 R-255 B-150 Leveraged Yield G-255 B-255 IG Corp Loan 2013 Text Colors R-0 Cash Gov’t Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Risk (Volatility) Blue R-189 R-0 G-230 8 Note: Presented for illustrative purposes only. 151 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Disciplined Approach Builds Brand Value & Drives Returns B-35
R-145 R-156 2 G-213 Opportune Environment to Expand a Market Strategies Business G-226 10 B-242 B-146 Investment strategies Market dislocations Human capital R-61 seeking stable create attractive affordable & available R-163 3 G-175 operating platform investment opportunities G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 Characteristics of Attractive GMS Investment Strategies B-0 B-127
R-85 Consistent with Overall Competitive Attractive Return R-219 G-67 GMS Growth Strategy Advantages Potential / Profile 13 5 G-217 B-113 B-217 • Fits with long-term • High barriers to entry • Consistent returns outlook / thesis independent of market & R-118 • Exploit long-term White economic environment 6 G-92 • Global platforms with secular trends R-255 B-150 G-255 regional focus & ability • Exceptional historical B-255
• Underallocation by Text Colors to scale investors vs opportunity absolute & risk-adjusted R-0 performance Dark Blue G-161 • Scale to opportunity set R-0 7 • Leverage Carlyle brand B-224 • Resilient return profile G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Note: Presented for illustrative purposes only. 152 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Partnerships, Acquisitions & Organic Launches Drive Growth B-35
R-145 ($US in bn) R-156 2 G-213 G-226 10 B-242 B-146 Fund Family 2010 2011 2012
R-61 R-163 3 G-175 US Stanfield US Foothill Eur Highland G-143 11 B-46 Structured Credit B-187 US Mizuho R-145 R-127
4 G-229 G-127 12
B-0 B-127 Carry Funds & Financing1 CEMOF Churchill GMS Finance R-85 R-219 G-67 13 5 G-217 B-113 Hedge Funds Claren Road ESG Vermillion B-217
R-118 White 2 6 G-92 Additional AUM $10.6 $3.4 $5.2 R-255 B-150 G-255
B-255 Text Colors 3 R-0 Total GMS AUM $20.6 $24.5 $32.5 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 1. Carry Funds & Financing includes Churchill Financial, a CLO and GMS Finance, Inc., a Business Development Company (“BDC”). R-0 G-230 8 2. AUM noted is at time of acquisition or total fundraise for period. Presented for illustrative purposes only. G-161 3. Total GMS AUM as of December 31 of respective year. 153 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – AUM Growth & Asset Diversification B-35
($US in bn) R-145 2009 AUM by Strategy Q3’2013 AUM by Strategy R-156 2 G-213 G-226 10 B-242 B-146
18% R-61 R-163 3 G-175 40% G-143 11 $35 45% B-46 $13 B-187 bn bn
R-145 R-127 4 G-229 15% G-127 12 82% B-0 B-127
R-85 R-219 G-67 2009 AUM by Geography Q3’2013 AUM by Geography 13 5 G-217 B-113 $20 $20 $19 B-217
$16 $16 R-118 $13 White G-92 R-255 6 $12 B-150 $12 G-255 B-255 $8 $7 $7 $8 Text Colors R-0 Dark Blue $4 $4 G-161 $4 R-0 7 B-224 $0 G-74 $0 B-136 $0 Use colors in preferred order for best results best for order preferred in colors Use Americas EMEA Asia-Pacific Americas EMEA Asia-Pacific Blue R-189 Structured Credit1 Carry Funds & Financing1 Hedge Funds R-0 G-230 8 Note: As of 9/30/2013. There is no guarantee these trends will continue. Figures may not add due to rounding. G-161 154 B-247 (1) Churchill Cayman Financial Ltd., a $1.5billion CLO, is excluded from Structured Credit and included in Carry Funds & Financing. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Total Fundraise & Net Subscriptions 2010-YTD’13 B-35
R-145 $3,000 $5,547 $3,084 $4,554 R-156 2 G-213 G-226 10 B-242 $2,660 B-146
$2,500 R-61 $2,280 R-163 3 G-175 G-143 11 B-46 B-187 $2,000
R-145 $1,761 R-127
4 G-229 G-127 12 B-0 mm) $1,502 B-127 $1,500 $1,282 $1,291
R-85 (US$in $1,200 R-219 G-67 13 5 G-217 B-113 $1,000 B-217
R-118 White 6 G-92 $507 R-255 B-150 $500 $416 G-255 B-255 $186 Text Colors R-0 $100 Dark Blue G-161 R-0 7 $0 B-224 G-74 B-136
2010 2011 2012 YTD'13 2010 2011 2012 YTD'13 2010 2011 2012 YTD'13 Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Structured Credit Funds Carry FundsCarry Funds& Financing Hedge Funds R-0 G-230 8 155 G-161 B-247 Note: As of 9/30/2013. Presented for illustrative purposes only. There is no guarantee these trends will continue. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Current Investment Product Line B-35
R-145 (AUM $US in bn) Product R-156 2 G-213 # Team G-226 10 B-242 Fund Family Line Strategy Members AUM # Funds B-146
1 R-61 Structured Credit Structured Credit Leveraged Loans 21 $16.1 39 R-163 3 G-175 G-143 11 B-46 Strategic Partners Distressed 8 $1.5 3 B-187
R-145 Carry Funds 2 20 R-127 4 G-229 Carlyle GMS Finance Corporate Lending $2.3 5 G-127 12 & Financing B-0 B-127 Energy Mezzanine Energy Lending 14 $1.5 1 R-85 R-219 G-67 13 5 G-217 B-113 Claren Road L/S Corporate Credit 33 $7.8 2 B-217
R-118 White Hedge Funds 6 G-92 Emerging Sovereign L/S EM Equities, Macro 23 $5.0 7 R-255 B-150 G-255
B-255 Text Colors Vermillion Commodities 29 $1.3 4 R-0 Dark Blue G-161 R-0 7 B-224 Total GMS 148 $35.4 61 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Note: As of 9/30/2013. Blue R-189 1. Excludes Churchill Cayman Financial Ltd., a $1.5 billion CLO. 2. Comprised of a majority of the former investment team of Churchill Financial LLC & currently manages Churchill Cayman Financial Ltd., a R-0 G-230 $1.5 billion CLO; as well as Carlyle GMS Finance and a co-invest vehicle, Carlyle’s Business Development Companies; and Carlyle Mezzanine 8 156 G-161 B-247 Partners, which consists of 4 investment professionals and 2 funds totaling $0.6 billion in AUM. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Hedge Funds – Claren Road Asset Management B-35
R-145 Overview Growth in Global Credit Markets1 R-156 2 G-213 G-226 10 B-242 AUM: $7.8bn across 2 funds Broker Dealer Capital vs Global Credit Markets B-146
250 R-61 33 Investment Professionals R-163 20 3 G-175 G-143 11 B-46
Global long/short credit B-187 )
tr 200 High grade, high yield, sovereign debt, R-145 R-127 4 G-229 cash and derivative markets
($bn) G-127 12
B-0 150 B-127
R-85 10 R-219 G-67 ($ USD Value Market 100 13 5 G-217 B-113 Secular Trends B-217 Growth in global credit markets R-118 50 White 6 G-92 Reduced broker dealer balance sheets R-255 B-150 G-255 B-255 Increased credit volatility 0 Text Colors R-0 Dark Blue G-161 Long/short versus long only R-0 7 US Municipals B-224 G-74
Leveraged Loans / HY B-136
Use colors in preferred order for best results best for order preferred in colors Use Asia, EM, European Peripherals Blue R-189 Investment Grade R-0 G-230 Note: As of 9/30/13 unless otherwise noted. (1) Source: DCM Analytics, Deutsche Bank, S&P Capital IQ, & Bloomberg. As of 157 G-161 8 12/31/2012. B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Hedge Funds – Emerging Sovereign Group B-35
R-145 Overview Growth of the EM Consumer R-156 2 G-213 G-226 10 B-242 Household Disposable Income over US$10K1 B-146
AUM: $5.0bn across 7 funds 600
500 BRICs R-61 23 Investment Professionals mm R-163 3 G-175 400 G-143 11 B-46 Emerging markets (“EM”) 300 B-187 200 100 R-145 Macro, long / short equity & other tactical R-127 4 G-229 0 G-127 12 strategies B-0
No. of Households in in ofHouseholds No. B-127
R-85 2 R-219 G-67 Secular Trends Performance Dispersion 13 5 G-217 B-113 446 B-217 Growing EM consumer base 450 926 Positive 350 + R-118 261 White 250 G-92 Disparate economic growth 173 454 Negative R-255 6 150 B-150 46 - G-255 50 B-255
Performance dispersion Text Colors (50) R-0 Dark Blue Increasing EM allocations (150) G-161 R-0 7 163 127 B-224 (250) 164 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Note: As of 9/30/2013 unless otherwise noted. (1) Source: Euromonitor, MS Asia/GEM Strategy team. Forward projections are Euromonitor Estimates. Note: data end-2011; data not finalized as of 2012. There can be no assurance that estimated performance will materialize. Please see important R-0 G-230 8 information at the beginning of this presentation. (2) Source: ESG Internal Analysis, Bloomberg; The information contained herein has been prepared G-161 B-247 by Emerging Sovereign Group. The dispersion data analysis is based on the "universe" of stocks that are primarily, emerging market domestic demand 158 focused names, which trade more than a total of $5mil a day, on a rolling six month daily average basis. Through 9/30/2013. B-224 ($US in bn)
R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Hedge Funds – Vermillion Asset Management B-35
R-145 Overview Declining Asset Correlations1 R-156 2 G-213 G-226 10 B-242 AUM: $1.3bn across 4 funds 6-mo trailing correlation: DJUBS & market indexes B-146
S&P 500 MSCI World R-61 29 Investment Professionals 5-year Treasury rates Dollar Index (times -1) R-163 3 G-175 G-143 11 B-46 Commodities 0.8 B-187
Relative value, enhanced index & long- 0.7 R-145 biased physical strategies R-127 4 G-229 G-127 12 0.6 B-0 B-127 0.5 R-85 R-219 G-67 13 5 0.4 G-217 B-113 Secular Trends B-217 Correlation 0.3 Large industry asset drawdowns R-118 White 0.2 6 G-92 Heightened regulatory environment R-255 B-150 G-255 0.1 B-255 Bank asset divestitures Text Colors Dark Blue R-0 (0.1) G-161 R-0 7 Declining asset correlations B-224 G-74
(0.2) B-136
Use colors in preferred order for best results best for order preferred in colors Use Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Blue R-189 R-0 G-230 Note: As of 9/30/13 unless otherwise noted. (1) Please see “Important Information” at the beginning of this presentation. There is 8 no guarantee these trends will continue. Source: S&P Dow Jones Indices, MSCI, US Treasury, Bloomberg. As of 10/31/13. 159 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Current Investment Product Line B-35
R-145 (AUM $US in bn) Product R-156 2 G-213 # Team G-226 10 B-242 Fund Family Line Strategy Members AUM # Funds B-146
1 R-61 Structured Credit Structured Credit Leveraged Loans 21 $16.1 39 R-163 3 G-175 G-143 11 B-46 Strategic Partners Distressed 8 $1.5 3 B-187
R-145 Carry Funds 2 20 R-127 4 G-229 Carlyle GMS Finance Corporate Lending $2.3 5 G-127 12 & Financing B-0 B-127 Energy Mezzanine Energy Lending 14 $1.5 1 R-85 R-219 G-67 13 5 G-217 B-113 Claren Road L/S Corporate Credit 33 $7.8 2 B-217
R-118 White Hedge Funds 6 G-92 Emerging Sovereign L/S EM Equities, Macro 23 $5.0 7 R-255 B-150 G-255
B-255 Text Colors Vermillion Commodities 29 $1.3 4 R-0 Dark Blue G-161 R-0 7 B-224 Total GMS 148 $35.4 61 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Note: As of 9/30/2013. Blue R-189 1. Excludes Churchill Cayman Financial Ltd., a $1.5 billion CLO. 2. Comprised of a majority of the former investment team of Churchill Financial LLC & currently manages Churchill Cayman Financial Ltd., a R-0 G-230 $1.5 billion CLO; as well as Carlyle GMS Finance and a co-invest vehicle, Carlyle’s Business Development Companies; and Carlyle Mezzanine 8 160 G-161 B-247 Partners, which consists of 4 investment professionals, 2 funds totaling $0.6 billion in AUM. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Carry Funds & Financing – Carlyle Strategic Partners B-35
R-145 Overview1 Asset Side Alpha – Value Creation2 R-156 2 G-213 G-226 10 B-242 AUM: $1.5bn across 3 funds ($US in mm) Revenue B-146 $3,071 $3,000 R-61 8 Investment Professionals R-163 3 G-175 G-143 11 $2,000 $1,595 B-46 Control Distressed B-187 Invests globally in debt & equity of $1,000 R-145 R-127 4 G-229 operationally sound, financially distressed $0 G-127 12 B-0 companies Entry Exit / Current B-127
R-85 R-219 G-67 13 5 EBITDA G-217 B-113 Secular Trends B-217 $800 $723 Declining trading (beta) opportunities R-118 $600 White 6 G-92 R-255 B-150 Operational turn around focus $400 G-255
B-255 Text Colors Growing Pan-European opportunity $200 R-0 $22 Dark Blue G-161 $0 R-0 7 B-224 G-74 Entry Exit / Current B-136
Use colors in preferred order for best results best for order preferred in colors Use Note: For illustrative purposes only. (1) As of 9/30/13. (2) As of 6/30/2013, includes control investments in Diversified Machine, Stellex Aerostructures, Blue R-189 Bank United, Brintons Carpets, Dynamic Precision Group, Metaldyne Corporation, Mrs. Fields Brands, & Permian Tank & Manufacturing, Inc. AES Eastern Energy & Project Arctic are excluded from the analysis as both investments were in debt securities at entry. RPK Capital Management is also R-0 G-230 8 excluded as operational data is unavailable. Bank United Data: Net Interest Income & Operating Income used as proxies for Revenue & EBITDA, G-161 B-247 respectively. Brintons revenue & EBITDA figures converted into USD (reported in GBP) at respective dates. Figures for Dynamic Precision Group reflect 161 acquisition of Paradigm Precision Holdings in Q1’13. B-224 ($US in bn)
R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Carry Funds & Financing – Carlyle GMS Finance B-35
R-145 Overview R-156 2 G-213 Target Portfolio Concentration G-226 10 B-242 AUM: $2.3bn across 5 funds1 B-146 Market Conditions 1 R-61 20 Investment Professionals Assets Current Dislocated R-163 3 G-175 G-143 11 B-46 Middle market finance BDC B-187 Senior Loans 60.0% 40.0% Senior secured loans, subordinated debt, R-145 R-127 4 G-229 & opportunistic investments across GMS G-127 12 Unitranche Loans 20.0% 30.0% B-0 platform B-127
R-85 Second Lien 5.0% 7.5% R-219 G-67 13 5 G-217 B-113 Secular Trends B-217 5.0% 10.0% Commercial banking disintermediation Mezzanine R-118 White R-255 6 G-92 Increased capital requirements 0.0% 2.5% B-150 Equity Co-Inv. G-255 B-255 Growth in middle market finance Text Colors Structured R-0 10.0% 10.0% Dark Blue G-161 Allocations to opportunistic credit Credit/Other R-0 7 B-224 G-74 B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Note: As of 9/30/2013. No assurance, representation or warranty is made by any person that the proposed hypothetical yield ranges, capital R-0 G-230 drawdowns or distributions will be achieved, and prospective investors should not rely on these illustrative examples as representative or 8 indicative of actual results. (1) Includes Churchill Cayman Financial Ltd., a $1.5 billion CLO, Carlyle GMS Finance and co-invest vehicle BDCs, and 162 G-161 B-247 Carlyle Mezzanine Partners Funds I and II totaling $0.6billion in AUM. B-224 ($US in bn)
R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Carry Funds & Financing – Energy Mezzanine B-35
R-145 Overview R-156 2 G-213 US Upstream Capital Spending G-226 10 ($US in mm) B-242 B-146 AUM: $1.5bn in 1 fund $120,000
R-61 14 Investment Professionals R-163 3 G-175 G-143 11 $100,000 B-46 Energy financing B-187 Debt investments in North American & R-145 $80,000 R-127
4 G-229 international energy & power projects & G-127 12
B-0 companies B-127 $60,000 R-85 R-219 G-67 13 5 G-217 B-113 Secular Trends $40,000 B-217 Commercial banking disintermediation R-118 White 6 G-92 Increased capital requirements $20,000 R-255 B-150 G-255 B-255 Reduction in structured finance providers Text Colors R-0 $0 Dark Blue G-161 Heightened demand for capital supporting Acq. Costs - Acq. Costs - Exploration Development R-0 7 B-224 global energy development Proved Unproved Costs Costs G-74
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Use colors in preferred order for best results best for order preferred in colors Use 2008 2009 2010 2011 2012 Blue R-189 R-0 G-230 8 Note: As of 9/30/2013. For illustrative purposes only. Source: Market data and GMS analysis. 163 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Current Investment Product Line B-35
R-145 (AUM $US in bn) Product R-156 2 G-213 # Team # G-226 10 B-242 Fund Family Line Strategy Members AUM Funds B-146
1 R-61 Structured Credit Structured Credit Leveraged Loans 21 $16.1 39 R-163 3 G-175 G-143 11 B-46 B-187 Strategic Partners Distressed 8 $1.5 3
R-145 Carry Funds 2 R-127
4 G-229 Carlyle GMS Finance Corporate Lending 20 $2.3 5 G-127 12
B-0 & Financing B-127 Energy Mezzanine Energy Lending 14 $1.5 1 R-85 R-219 G-67 13 5 G-217 B-113 Claren Road L/S Corporate Credit 33 $7.8 2 B-217
R-118 White Hedge Funds R-255 6 G-92 Emerging Sovereign L/S EM Equities, Macro 23 $5.0 7 B-150 G-255
B-255 Text Colors Vermillion Commodities 29 $1.3 4 R-0 Dark Blue G-161 R-0 7 B-224 Total GMS 148 $35.4 61 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Note: As of 9/30/2013. Blue R-189 1. Excludes Churchill Cayman Financial Ltd., a $1.5 billion CLO. 2. Comprised of a majority of the former investment team of Churchill Financial LLC & currently manages Churchill Cayman Financial Ltd., a R-0 G-230 $1.5 billion CLO; as well as Carlyle GMS Finance and a co-invest vehicle, Carlyle’s Business Development Companies; and Carlyle Mezzanine 8 164 G-161 B-247 Partners, which consists of 4 investment professionals, 2 funds totaling $0.6 billion in AUM. B-224 ($US in bn)
R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Structured Credit B-35
R-145 Overview Increasing CLO Demand2 R-156 2 G-213 G-226 10 B-242 US: $9.3bn1 across 26 funds Global CLO New Issuance B-146 14 Investment Professionals ($US in bn) $148 R-61 150 R-163 3 G-175 EUR: $6.8bn across 13 funds $136 G-143 11 B-46 7 Investment Professionals B-187 Leveraged Loans R-145 R-127 4 G-229 Broadly syndicated senior secured bank G-127 12 100 B-0 loans through CLOs & synthetic structures B-127
R-85 R-219 G-67 $66 $63 13 5 G-217 B-113 Secular Trends $54 B-217 Increasing CLO demand 50 R-118 $33 White $29 6 G-92 More stable, mature asset class R-255 G-255 B-150 $18 $21 $14 $15 B-255 Global risk retention regulations $12 Text Colors $4 R-0 $1 Dark Blue G-161 Manager consolidation round-2 0 R-0 7 B-224 G-74 B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 US Europe R-0 G-230 Note: As of 9/30/2013 unless otherwise noted. (1) Excludes Churchill Cayman Financial Ltd., a $1.5 billion CLO. (2) Source: S&P LCD Leveraged 8 Lending Quarterly Review as of 3Q 2013 and S&P LCD European Leveraged Lending Review. Euro to USD converted on historical basis. Please see 165 G-161 B-247 “Important information” at the beginning of this presentation. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle GMS – Current & Future Opportunities B-35
R-145 R-156 2 G-213 • Firm committed to scale the GMS business G-226 10 B-242 B-146
R-61 • Tailor products to meet the demand of different client segments R-163 3 G-175 G-143 11 B-46 B-187 • Continue to expand business by taking advantage of market opportunities R-145 R-127 4 G-229 G-127 12 – Appropriately scaling existing investment platforms B-0 B-127 – Launching contiguous product offerings off existing investment platforms R-85 R-219 G-67 13 5 G-217 B-113 – Acquiring or partnering with investment managers B-217
R-118 • Seize international expansion opportunities White 6 G-92 R-255 B-150 G-255
B-255 Text Colors • Leverage collaborative OneCarlyle research & investment approach to drive R-0 Dark Blue G-161 R-0 7 investment performance B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 166 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
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B-0 Carlyle Solutions B-127 R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 Jacques C. Chappuis White 6 G-92 R-255 B-150 G-255
Managing Director & Head of Solutions B-255 Text Colors
R-0 November 11, 2013 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle Solutions Overview B-35
R-145 R-156 2 G-213 History Strategy G-226 10 B-242 B-146 • Newest segment at Carlyle • Bring breadth of Carlyle to clients
R-61 • Launched with the acquisition of AlpInvest in • Broaden investment capabilities R-163 3 G-175 G-143 11 B-46 2011 B-187 • Client-guided approach • Appointed segment head in May 2013 R-145 • Outcome orientation R-127 4 G-229 G-127 12 • Acquired Metropolitan Real Estate Nov 2013 B-0 B-127
R-85 R-219 G-67 Goals 13 5 G-217 B-113 B-217 • Design & manage portfolios of either Carlyle products, non-Carlyle products, or combinations R-118 thereof White 6 G-92 R-255 B-150 • Solutions packaged as separate accounts or commingled products G-255 B-255 Text Colors R-0 • Leverage broad skills & capabilities to enter new product markets Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 168 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 AlpInvest Overview B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146 Preqin: Top 10 Private Equity Fund of Strategy R-61 • Apply our scale & expertise as a private R-163 3 G-175 Funds Ranking equity investor & seek to generate G-143 11 B-46 B-187 # Name AUM $ bn superior returns for our investors 1 AlpInvest Partners 49 R-145 • Offer flexibility in how investors can R-127 4 G-229 2 HarbourVest Partners 35 G-127 12 access our investment capabilities B-0 Goldman Sachs AIMS Private B-127 3 34 Equity R-85 4 AXA Private Equity 31 R-219 G-67 1 13 5 Operating Statistics G-217 B-113 5 Partners Group 30 B-217 6 GCM CFIG 29 • 65+ investment professionals R-118 7 Hamilton Lane 25 White G-92 • LTM ENI: $54 million R-255 6 8 Pantheon 24 B-150 G-255 B-255 9 Adams Street Partners 24 • LTM FRE: $26 million Text Colors R-0 10 Pathway Capital Management 24 Dark Blue G-161 • LTM DE: $33 million R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Source: Preqin Investor Intelligence, July 2013; for period ended 3/31/2013. 1 The Solutions segment was launched upon the Carlyle’s acquisition of a 60% equity interest in AlpInvest on July 1, 2011 & advises a global R-0 G-230 private equity fund of funds program & related co-investment & secondary activities. On August 1, 2013, Carlyle acquired the remaining 8 40% equity interest in AlpInvest. 169 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 AlpInvest Current Product Lines B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 Primary Fund Investments Secondary Investments Co-Investments R-163 3 G-175 G-143 11 B-46 B-187 24 dedicated professionals 21 dedicated professionals 25 dedicated professionals
R-145 • AuM: $32.4 billion • AuM: $8.0 billion • AuM: $8.0 billion R-127 4 G-229 G-127 12
B-0 B-127 • Active investor with Advisory board • Executed over 80 transactions • Trusted co-sponsor of transactions position in over 80% of investments alongside GPs resulting in R-85 proprietary deal-flow & large R-219 G-67 • 35.8% realized gross IRR 13 5 allocations G-217 B-113 • Invested with 220 GPs across 430 B-217 funds
• Executed over 190 co-investment R-118 transactions White G-92 • 18.0% realized gross IRR R-255 6 B-150 G-255 • 33.2% realized gross IRR B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Note: AuM and employee information as of 9/30/2013; IRR as of 3/31/2013. For more information about the calculation of AlpInvest’s performance data, please see “Important Information” at the beginning of the presentation. For purposes of AuM, the Blue R-189 fair market values for AlpInvest primary fund investments and secondary investment funds are based on the latest available R-0 G-230 valuations of the underlying limited partnership interests (in most cases as of June 30, 2013), as provided by general partners, plus 8 the net cash flows since the latest valuations as of September 30, 2013. 170 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Our Clients Face an Increasingly Complex World B-35
R-145 Portfolio construction was once simple… …but has become significantly more complex R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 US B-187 Developed market Relative Cash Cash Emerging market Value Equity Frontier R-145 Cap weighted R-127 4 G-229 Commodities Sector weighted G-127 12 B-0 Active Passive B-127 Cash Synthetic R-85 High Yield R-219 G-67 13 5 G-217 B-113 Stocks Bonds Frontier B-217 Equity
R-118 Venture White Fixed Income 6 G-92 Capital R-255 B-150 G-255 Event Driven B-255
Macro Text Colors Real Estate Private R-0 Dark Blue G-161 Equity R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Presented for illustrative purposes only. 171 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Established Asset Allocation Frameworks Have Not Kept Up B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 Efficient Frontier Normal Distribution R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217
B-113 Returns
B-217 Probability Density Probability R-118 White 6 G-92 R-255 B-150 G-255 B-255 Mean Text Colors R-0 Dark Blue G-161 Risk (Volatility) Returns R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Presented for illustrative purposes only. 172 G-161 B-247 B-224 R-0 R-43 1 G-101 Alternative Investments Are Not Readily Comparable to Other Investment G-131 9 B-179 Choices B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146 Traditional Assumptions Alternatives R-61 R-163 3 G-175 G-143 11 B-46 B-187 Normally distributed Asymmetric distributions R-145 R-127 4 G-229 G-127 12 B-0 Fully liquid Liquidity varies B-127
R-85 R-219 G-67 13 5 G-217 B-113 Relevant, consistent benchmarks Benchmarks may not exist B-217
R-118 White 6 G-92 Ample historical pricing data Fewer data points R-255 B-150 G-255
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Presented for illustrative purposes only. 173 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 A Solutions Approach Helps Clients Navigate the Complexity B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146 Analyze R-61 Define Optimal Manage R-163 Define Objectives Universe of 3 G-175 Portfolio Portfolio G-143 11 B-46 Options B-187
R-145 R-127
4 G-229 G-127 12
B-0 Capabilities Required B-127
R-85 Portfolio construction / asset allocation (incorporating alternatives) R-219 G-67 13 5 G-217 B-113 Strategy / manager / investment analysis & selection B-217
R-118 Portfolio management White 6 G-92 R-255 B-150 G-255
Middle & back office operations B-255 Text Colors
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Presented for illustrative purposes only. 174 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Metropolitan Real Estate Overview B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 Investment expertise Strategic Fit G-143 11 B-46 B-187
Experience: Flexibility: R-145 • Investment team of 12, including 9 senior members with • Customized portfolios / separate accounts R-127 4 G-229 an average of 25 years experience G-127 12
B-0 B-127 Distribution: Global reach: R-85 • 150 institutional & high number of high net worth clients • Investments across the US, Europe, Asia & Latin America R-219 G-67 • Consultant backing 13 5 • Offices in US, Europe & Asia G-217 B-113 B-217 Focus: Network: R-118 • Small to mid-size managers White • Over 190 investments with more than 85 managers 6 G-92 R-255 G-255 B-150 B-255 Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Presented for illustrative purposes only. Information provided by Metropolitan Real Estate Equity Management & is presented as R-0 G-230 of September 30, 2013. Past performance is not indicative of future results. See “Important Information” slide at the beginning of 8 the presentation. 175 G-161 B-247 B-224
• Achieves a range of objectives, including: • Targeting particular property types, geographic areas, or risk / return characteristics • Accessing fast-moving co-investment opportunities • Mitigating J-curve • Minimizing FIRPTA tax liabilities • Reducing fees
R-0 R-43 1 G-101 G-131 9 B-179 Carlyle Solutions – Future Organizational Structure B-35
R-145 Global Solutions R-156 2 G-213 G-226 10 Jacques Chappuis, Head of Global Solutions B-242 Dedicated Investment Capabilities Shared Supporting Services B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 Sales & marketing R-127
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B-0 B-127 (1)
R-85 Middle & Back Office Administration R-219 G-67 13 5 G-217 B-113 Fund of B-217 Hedge Funds R-118 IT, HR, Legal & Compliance White 6 G-92 R-255 B-150 Other G-255
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Sub-Segments currently in place Sub-Segments to be added Support services to be leveraged Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 Presented for illustrative purposes only. (1) Carlyle signed a purchase agreement to acquire Metropolitan on September 18, 2013 & 8 closed the transaction on November 1, 2013. 176 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Until Recently, Capabilities Were Exclusively in Private Equity B-35
R-145 R-156 2 G-213 Investment Inputs Investment Process Investment Output G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 Private equity Customized & B-187 • Primaries, secondaries, Define Portfolio Objectives commingled private co-investments equity portfolios R-145 R-127 4 G-229 G-127 12 B-0 Portfolio Construction B-127
R-85 R-219 G-67 13 5 G-217 B-113 Portfolio Implementation B-217
R-118 White 6 G-92 R-255 B-150 G-255
Portfolio Management B-255 Text Colors
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Presented for illustrative purposes only. 177 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Expanded Capabilities Will Provide a Complete Toolbox… B-35
R-145 R-156 2 G-213 Investment Inputs Investment Process Investment Output G-226 10 B-242 B-146
R-61 R-163 3 G-175 Customized & G-143 11 B-46 Private equity commingled portfolios of B-187 • Primaries, secondaries, Define Portfolio Objectives private equity, real estate co-investments & hedge funds R-145 R-127 4 G-229 Real Estate G-127 12 Customized multi-asset B-0 • Primaries, secondaries, class portfolios B-127 co-investments Portfolio Construction
R-85 Hedge Funds Liquid alternatives R-219 G-67 13 5 • Primaries, secondaries, G-217 B-113 co-investments Portfolio Implementation Outcome-oriented B-217 solutions, for example: R-118 Other • Tail risk hedges White 6 G-92 R-255 B-150 • Inflation hedges G-255 Portfolio Management B-255 • Yielding portfolios Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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• Increasingly many of Carlyle’s LPs & many investors who currently do not invest with Carlyle are looking for (1) tailored offerings; (2) outcome oriented solutions & / or (3) assistance with portfolio allocation & manager selection R-0 R-43 1 G-101 G-131 9 B-179 …to Address the Needs of a Broad Spectrum of Investors B-35
R-145 R-156 2 G-213 G-226 10 B-242 Retail High Net Worth Family Office Institutions B-146
R-61 R-163 3 G-175 Liquid Alternatives G-143 11 B-46 B-187 Funds of funds R-145 R-127 4 G-229 G-127 12
Customized portfolios B-0 B-127 Multi-asset class portfolios R-85 R-219 G-67 13 5 G-217 B-113 Completion portfolios B-217
R-118 Co-investment mandates White 6 G-92 R-255 B-150 Tail-risk hedging G-255
B-255 Text Colors R-0 Inflation hedging Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Presented for illustrative purposes only. 179 G-161 B-247 B-224 CHARTS & OBJECTS Text #1 Header Color #1 R: 153 Col 8 Row 5 G: 255 The Column / R – 255 B: 51 Row values can G – 255 B - 255 be found in the Text # 2 “area” color Color #2 Body-white choice section Col 5 Row 2 R: 255 R – 0 G: 255 for choosing G – 128 Investor Day B: 255 pie & column B - 128 chart colors Color #3 November 11, 2013 Col 2 Row 4 The RGB R – 255 Text #3 values can be G – 204 B - 0 Emphasis found at R: 102 Fill Effects > Color #4 G: 255 Col 2, Row 1 B: 255 More Fill R - 153 Colors > G - 51 Custom B - 0 Black for good Color #5 contrast with Col 6 Row 3 bright Q&A background R – 51 G – 102 elements B - 255 Text #4 Color #6 (Black) Col 3 Row 3 R: 0 R – 153 G: 0 G – 255 B: 0 B - 51
Color #7 Col 8 Row 4 R – 192 G – 192 B - 192 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
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B-0 Fundraising Update B-127 R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 David M. Rubenstein, Co-Founder & Chief Executive Officer White 6 G-92 R-255 B-150 G-255
Michael W. Arpey, Managing Director & Head of Investor Relations B-255 Text Colors
R-0 November 11, 2013 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 B-224 R-0 R-43 1 G-101 2013 is on Pace to Have the Highest Fundraising Volume Since the G-131 9 B-179 Recovery Began B-35
R-145 R-156 G-213 2 Global Private Equity Fundraising Volume ($ billions) G-226 10 B-242 $800 B-146
R-61 $686 $700 $668 R-163 3 G-175 G-143 11 B-46 B-187 $600 $547 R-145 R-127 4 G-229 G-127 12 $500 B-0 B-127
$378 R-85 $400 $362 R-219 G-67 $331 13 5 $318 $329 G-217 B-113 $295 $300 $263 B-217 $218 R-118 White $200 6 G-92 R-255 B-150 $139 G-255 $105 B-255 $100 Text Colors R-0 Dark Blue G-161 R-0 7 B-224 $0 G-74 B-136
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD Q3 YTD Q3 Use colors in preferred order for best results best for order preferred in colors Use 2012 2013 Blue R-189 R-0 G-230 8 Source:Source: Preqin Preqin – accessed November 1, 2013. There is no guarantee these trends will continue. 182 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Allocations to Private Equity Are Increasing B-35
R-145 R-156 2 G-213 30.0% % of Total Assets G-226 10 B-242 B-146
24.5% R-61 25.0% R-163 3 G-175 G-143 11 B-46 B-187 20.0% R-145 17.9% R-127
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B-0 2009 B-127 15.0% 12.9% 2013 R-85 11.7% R-219 G-67 13 5 G-217 B-113 10.0% B-217 8.8% 8.3%
R-118 6.3% White 5.6% G-92 5.0% R-255 6 4.3% B-150 5.0% G-255 2.6% B-255 2.6% Text Colors
R-0 Dark Blue G-161 R-0 7 0.0% B-224 G-74
Insurance Private Sector Public Pension Foundations Endowments Family Offices B-136
Use colors in preferred order for best results best for order preferred in colors Use Companies Pension Funds Funds Blue R-189 R-0 G-230 8 Source: 2013 Preqin Investor Network Global Alternatives Report. There is no guarantee these trends will continue. 183 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 HNW Investors Have Become a Much More Important Source of Capital B-35
R-145 Industry-wide, family offices have almost doubled their share since 2009 R-156 2 G-213 G-226 10 B-242 B-146 2009 2013 R-61 R-163 3 G-175 G-143 11 B-46 B-187 Family Offices R-145 Family R-127 4 G-229 13% G-127 12 Offices B-0 B-127 23%
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 All Other G-255 B-255 All Other Investors Text Colors R-0 Investors 78% Dark Blue G-161 87% R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Source: Preqin October 2013. There is no guarantee these trends will continue. Represents share by number of investors. R-0 G-230 Note: A family office is defined as a privately owned firm that manages investments and trusts for a single wealthy family or multiple 8 wealthy families. 184 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Sovereign Wealth Funds Have Also Increased Their Commitments to PE B-35
R-145 Since 2010, Sovereign Wealth Funds have quadrupled their share of R-156 2 G-213 commitments to private equity G-226 10 B-242 B-146 2010 2013 R-61 R-163 3 G-175 SWFs G-143 11 B-46 3% B-187 SWFs R-145 13% R-127
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B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255 B-255
All Other Text Colors All Other Investors R-0 Investors Dark Blue G-161 87% R-0 7 97% B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Source: Dow Jones Private Equity Analyst Sources of Capital Survey, 5/29/13. There is no guarantee these trends will continue. 185 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Investors Are Increasingly Seeking Out Customization B-35
R-145 R-156 2 G-213 % of Preqin-surveyed investors that have G-226 10 B-242 separate account mandates B-146 20% 19% R-61 R-163 3 G-175 18% G-143 11 B-46 B-187 16% R-145 R-127
4 G-229 14% G-127 12
B-0 B-127 12% R-85 R-219 G-67 10% 13 5 G-217 B-113 B-217 8% 7% R-118 6% White 6 G-92 R-255 B-150 G-255
4% B-255 Text Colors
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Use colors in preferred order for best results best for order preferred in colors Use One Year Ago Today Blue R-189 R-0 G-230 8 Source: Preqin Investor Outlook H2 2013. There is no guarantee these trends will continue. 186 G-161 B-247 B-224 R-0 R-43 1 G-101 Generationally Low Interest Rates Are Driving Investor Demand For G-131 9 B-179 Alternative Credit Products With Higher Yield Potential B-35
R-145 U.S. Leveraged Loan CLO Volume ($ billions)1 R-156 2 G-213 1 G-226 10 B-242 Retail Fund Flows B-146
$60 $70 R-61 R-163 $52 3 G-175 $61 G-143 11 B-46 $50 $60 B-187 $54 R-145 $50 R-127
4 G-229 $40 G-127 12
B-0 B-127 $40 R-85 $30 R-219 G-67 13 5 G-217 B-113 $30 B-217 $20 R-118 $20 White 6 G-92 $12 R-255 B-150 $8 G-255 $10 $10 B-255 $4 Text Colors R-0 $1 Dark Blue G-161 R-0 7 $- $- B-224 G-74 2009 2010 2011 2012 YTD B-136 2012 YTD 2013 Use colors in preferred order for best results best for order preferred in colors Use 2013 Blue R-189 R-0 G-230 Source: EPFR and Morgan Stanley. There is no guarantee these trends will continue. 8 1. YTD through 10/30/13. 187 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Co-Investments Are Now the Coin of the Realm B-35
R-145 Industry-wide LP intentions for R-156 2 G-213 Industry-wide G-226 10 B-242 co-investment allocations B-146 • 75% of LPs ask for co- R-61 investment rights when Decrease R-163 3 G-175 G-143 11 B-46 committing to new funds Allocation B-187 9% • 91% of LPs expect to R-145 R-127
4 G-229 either increase (65%) or G-127 12
B-0 maintain (26%) their Maintain B-127 Allocation R-85 allocations to co- 26% R-219 G-67 13 5 investments G-217 B-113 B-217
R-118 White G-92 R-255 6 Increase B-150 G-255
Allocation B-255 Text Colors 65% R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Source: Preqin Special Report: LP Appetite for Private Equity Co-Investments. There is no guarantee these trends will continue. 188 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle’s Fundraising Platform B-35
R-145 R-156 2 G-213 • 90% of Carlyle LP commitments invested in two or more funds G-226 10 B-242 B-146 • Embedded base of more than 1,600 investors R-61 R-163 3 G-175 G-143 11 B-46 • Distinctive platform B-187
R-145 – Breadth & quality of investors R-127 4 G-229 G-127 12 B-0 – Size & quality of fundraising team B-127 R-85 R-219 G-67 13 5 – Systematic approach allows us to raise multiple funds simultaneously G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255 B-255
We have 26 years of client development expertise Text Colors
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 As of September 30, 2013. 189 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle has a Proven Ability to Raise Capital B-35
R-145 Carlyle has raised $43 billion since 2010 R-156 2 G-213 G-226 10 B-242 B-146 Cumulative Fundraising (As of 9/30/13) R-61 $ Bn R-163 3 G-175 $160 G-143 11 B-46 B-187 $140
R-145 $120 R-127 4 G-229 G-127 12 $100 B-0 B-127 $80
R-85 $60 R-219 G-67 13 5 $40 G-217 B-113 $20 B-217
R-118 $0 White 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 6 G-92 R-255 B-150 G-255 B-255 Number of Funds in the Market 2014 E Text Colors R-0 Total 5 8 15 18 16 20 9 7 13 17 17 15-20 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Number of funds does not include co-investment opportunities. Presented for illustrative purposes only. There is no guarantee that these trends will continue. R-0 G-230 Note: Data excludes acquisitions. Data is inclusive of amounts raised in Claren Road Master Fund, Claren Road Opportunities 8 Fund, a Claren Road managed account, Emerging Sovereign Group and Vermillion Asset Management. 190 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Strong Fundraising Capabilities Provide Foundation for Future Success B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 Pension Funds, SWFs & HNW Investor R-163 3 G-175 Other Large Investors Development G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 B-0 Carlyle’s Fundraising Strategy B-127 R-85 Maintain a systematic fundraising approach R-219 G-67 13 5 to support growth & serve investor needs G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255 Product Specific New B-255 Resources Investors Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 191 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 $18.3 Billion Raised to Date in 2013 Across Multiple Segments B-35
R-145 $ Bn R-156 2 G-213 G-226 10 B-242 $20 Funds Raised by Segment B-146 $18.3bn $18 (As of 9/30/13) R-61 R-163 G-175 3 $16 G-143 11 B-46 B-187 $13.9bn $14 R-145 R-127
4 G-229 $12 G-127 12
B-0 B-127 $10 R-85 R-219 G-67 $8 13 5 G-217 B-113 $6.6bn B-217 $6 R-118 $4.2bn White $4 6 G-92 R-255 B-150 G-255
$2 B-255 Text Colors
R-0 $0 Dark Blue G-161 R-0 7 B-224 2010 2011 2012 2013 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Corporate Private Equity Real Assets Global Market Strategies Solutions Blue R-189 R-0 G-230 8 As of September 30, 2013. 192 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Fundraising Organization Has Helped Carlyle Grow its Market Share B-35
R-145 R-156 2 G-213 Carlyle Fundraising G-226 10 B-242 B-146 $ Bn (Percentage of Private Equity Fundraising1) $16 4.5% R-61 4.2% R-163 3 G-175 G-143 11 B-46 $14 4.0% B-187 3.5% R-145 $12 R-127 4 G-229 2.6% G-127 12 3.0% B-0 $10 B-127 2.5% R-85 $8 R-219 G-67 13 5 2.0% G-217 B-113 $6 B-217 1.3% 1.4% 1.5% R-118 $4 White 6 G-92 1.0% R-255 B-150 G-255 $2 B-255 0.5% Text Colors R-0 Dark Blue G-161 $0 0.0% R-0 7 B-224 2010 2011 2012 2013 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 As of September 30, 2013. Carlyle fundraising excludes hedge fund strategies and CLOs. There can be no assurance that historical trends will continue. See “Important Information” at the beginning of this presentation. R-0 G-230 1. Preqin Private Equity Fundraising Statistics (Accessed November 1, 2013 – Fundraising history report) 8 Includes Buyout, Real Estate, Natural Resources, Infrastructure, Distressed Debt, Mezzanine, Fund of Funds 193 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Investors Continue to Expand Their Carlyle Relationships B-35
2 R-145 • 62% of LP capital is Cross Selling Across Funds R-156 2 G-213 % of $ Commitments Across Multiple Funds G-226 10 B-242 invested across more than B-146 five carry funds, up from 20+ Funds 1 Fund 10% R-61 50% in 2006 9% R-163 3 G-175 G-143 11 B-46 11-20 B-187 2-5 Funds • 75% of LP capital is Funds 29% invested across two or 24% R-145 R-127
4 G-229 more segments G-127 12
B-0 6-10 Funds B-127 • Over the past three years, 29% R-85 R-219 G-67 181 new direct investors 13 5 2,3 G-217 B-113 Cross Selling Across Segments have committed ~$4.6 % of $ Commitments Across Multiple Segments B-217 billion1 R-118 White 6 G-92 3 Segments 1 Segment R-255 B-150 27% 25% G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use 2 Segments 48% Blue R-189 Source: Carlyle Analysis as of September 30, 2013 unless otherwise noted. R-0 G-230 1. As of June 30, 2013. 8 G-161 B-247 2. Cross fund analysis excludes hedge fund strategies and CLOs. 194 3. Cross segment analysis includes investors in the Solutions segment. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle’s Fundraising Strategy B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 Pension Funds, SWFs & HNW Investor R-163 3 G-175 Other Large Investors Development G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 B-0 Carlyle’s Fundraising Strategy B-127 R-85 Maintain a systematic fundraising approach R-219 G-67 13 5 to support growth & serve investor needs G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255 Product Specific New B-255 Resources Investors Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 195 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Building on Relationships With Our Large Investors B-35
R-145 R-156 2 G-213 G-226 10 B-242 Pension Funds Sovereign Wealth Funds B-146 • North American Pension • SWFs represent R-61 R-163 3 G-175 Funds represent combined $5.6 trillion in G-143 11 B-46 B-187 combined $2.3 trillion in total AuM1 R-145 3 R-127 4 G-229 AuM G-127 12 • SWFs comprise 13% of B-0 B-127 • Pension Funds comprise total Carlyle carry fund R-85 R-219 G-67 13 5 28% of Carlyle’s total AuM G-217 B-113 B-217 carry fund AuM • 15 of 25 largest SWFs R-118 White 6 G-92 • 18 of the top 25 are are existing Carlyle fund R-255 B-150 G-255 B-255 existing Carlyle fund investors Text Colors R-0 Dark Blue G-161 investors – Six of the remaining 10 SWFs R-0 7 B-224 2 G-74 do not invest in Private Equity B-136
Use colors in preferred order for best results best for order preferred in colors Use As of September 30, 2013. Source: Carlyle Analysis. Blue R-189 1. According to the Sovereign Wealth Fund Institute – 10/21/2013. R-0 G-230 2. According to Preqin – 10/21/2013. 8 3. According to Preqin league tables of top 25 Public Pension Funds in North America – 10/21/2013. 196 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Serving Our Largest Investors With a Differentiated Offering B-35
R-145 R-156 2 G-213 Investor Relations G-226 10 B-242 High Touch / Value B-146 Professionals Add Services R-61 R-163 3 G-175 20 geographically- G-143 11 B-46 B-187 focused fundraisers Fund Terms Reflect R-145 Investors’ Scale R-127 4 G-229 serving investors on G-127 12 B-0 six continents B-127 R-85 Managed Account R-219 G-67 13 5 Opportunities G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255 B-255 Customized Approach Text Colors R-0 Dark Blue G-161 Benefits Large Investors R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 As of September 30, 2013. 8 Note: Presented for illustrative purposes only. 197 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle’s Fundraising Strategy B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 Pension Funds, SWFs & HNW Investor R-163 3 G-175 Other Large Investors Development G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 B-0 Carlyle’s Fundraising Strategy B-127 R-85 Maintain a systematic fundraising approach R-219 G-67 13 5 to support growth & serve investor needs G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255 Product Specific New B-255 Resources Investors Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 198 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 High Net Worth Investors are an Important Area for Growth B-35
R-145 • HNW1 investable wealth is expected to climb 21% by 2015 R-156 2 G-213 G-226 10 B-242 – Alternatives allocation expected to grow from $4.6 trillion in 2012 to $5.6 trillion in B-146 2015 R-61 $ Tr R-163 G-175 3 $60 G-143 11 B-46 $55.8tr B-187
$50 R-145 $46.2tr 13.1 R-127 4 G-229 $42.7tr $42.0tr G-127 12 B-0 $40 10.9 B-127 10.2 10.1 15.0 R-85 6.5% R-219 G-67 $30 13 5 12.7 Annualized G-217 B-113 11.6 11.4 Growth Rate B-217 $20 R-118 White 27.8 6 G-92 R-255 B-150 $10 21.0 20.6 22.6 G-255
B-255 Text Colors
R-0 $0 Dark Blue G-161 R-0 7 2010 2011 2012 2015 B-224 G-74 B-136
Rest of World North America Europe Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 Source: Capgemini / RBC Wealth Management 2013 World Wealth Report. Carlyle Analysis. R-0 G-230 Note: Chart numbers may not add up due to rounding. 8 1. High Net Worth Investors are defined as those having investible assets of $1M or more excluding primary residence, 199 G-161 B-247 collectibles, consumables and consumer durables. B-224
R-0 R-43 1 G-101 G-131 9 B-179 High Net Worth Initiatives B-35
R-145 R-156 2 G-213 Client Segmentation G-226 10 B-242 B-146 Specialists R-61 R-163 3 G-175 8 professionals Build G-143 11 B-46 Distribution Develop ‘40 B-187 focusing on HNW & Marketing Act Products Team R-145 R-127 4 G-229 distribution, G-127 12 B-0 expected to grow $5.6 tr HNW B-127 R-85 Opportunity R-219 G-67 13 5 to 13 professionals G-217 B-113 by 2015 by 2015 B-217 R-118 White Create Turn- Expand 6 G-92 R-255 B-150 Key Feeder Feeder Fund G-255 B-255 Solutions Relationships Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 As of November 8, 2013. R-0 G-230 Source: Capgemini / RBC Wealth Management 2013 World Wealth Report and Carlyle Analysis. 8 Note: Presented for illustrative purposes only. 200 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Feeder Funds Investors Complement our Institutional Investor Base B-35
R-145 $2.1 billion raised year to date through 12 third-party feeder funds distributing R-156 2 G-213 nine products G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 B-0 Exposure to B-127 new LPs R-85 Upfront R-219 G-67 13 5 Create Costs G-217 B-113 (i.e. fees) Efficiencies momentum B-217 in back particularly Pay non- R-118 office and in niche White G-92 discounted R-255 6 servicing funds B-150 fees G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 As of September 30, 2013. 8 Note: There is no guarantee these trends will continue. 201 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle’s Fundraising Strategy B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 Pension Funds, SWFs & HNW Investor R-163 3 G-175 Other Large Investors Development G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 B-0 Carlyle’s Fundraising Strategy B-127 R-85 Maintain a systematic fundraising approach R-219 G-67 13 5 to support growth & serve investor needs G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255 Product Specific New B-255 Resources Investors Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 202 G-161 B-247 B-224 R-0 R-43 1 G-101 Matrixed Approach with Product Specialists to Deepen Relationships & G-131 9 B-179 Market Across Multiple Segments B-35
R-145 R-156 2 G-213 Product Segment G-226 10 B-242 Corporate Private Equity B-146 Specialists Real Assets R-61 Global Market Strategies R-163 3 G-175 14 professionals G-143 11 B-46 Solutions focusing on GMS, B-187 R-145 R-127 4 G-229 Real Assets and G-127 12 B-0 Solutions B-127 R-85 R-219 G-67 13 5 distribution G-217 B-113 B-217 Product Fundraisers R-118 Specialists White 6 G-92 R-255 B-150 G-255 B-255 Specific Asset Class Geographic Focus Text Colors R-0 Expertise Across Segments Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 As of September 30, 2013. 8 Note: Presented for illustrative purposes only. 203 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle’s Fundraising Strategy B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 Pension Funds, SWFs & HNW Investor R-163 3 G-175 Other Large Investors Development G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 B-0 Carlyle’s Fundraising Strategy B-127 R-85 Maintain a systematic fundraising approach R-219 G-67 13 5 to support growth & serve investor needs G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255 Product Specific New B-255 Resources Investors Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 204 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 New LPs Provide the Foundation for Future Growth B-35
R-145 R-156 2 G-213 New Client G-226 10 B-242 2009 2011 2013 B-146 Prospectors R-61 ~1300 ~1400 1600+ R-163 3 G-175 Entire team is Investors Investors Investors G-143 11 B-46 B-187 prospecting for new R-145 R-127
4 G-229 fund investors, with G-127 12
B-0 B-127 three professionals • Focused on finding the next generation R-85 of institutional / large investors R-219 G-67 13 5 focusing on new G-217 B-113 – More than 1600 investors from 76 B-217 investor countries R-118 White 6 G-92 development – Over the past three years, 181 new fund R-255 B-150 investors have committed ~$4.6 billion1 G-255
B-255 Text Colors R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 As of September 30, 2013, unless otherwise noted. R-0 G-230 Note: Number of investors for prior years is shown as of September 30th of each year. 8 1. As of June 30, 2013. 205 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Fundraising Organization Built For Continued Success B-35
R-145 R-156 2 G-213 • Growth of team focused on our key objectives G-226 10 B-242 B-146 • Team has grown from 36 professionals in March 2011 to ~80 today
R-61 R-163 3 G-175 – Expanded geographic coverage G-143 11 B-46 B-187 – Expanding Product Specialists and HNW distribution capabilities
R-145 R-127 4 G-229 G-127 12 David M. Rubenstein B-0 B-127 Co-Founder & Co-CEO
R-85 Michael W. Arpey R-219 G-67 13 5 G-217 B-113 Head of Investor Relations B-217
R-118 White 6 G-92 R-255 B-150 Investor Relations Product Client Segmentation Investor Relations G-255 B-255 Professionals Specialists Specialists Management Text Colors R-0 Dark Blue G-161 R-0 7 Professionals organized Specialists across Real Specialists focused on Project management & B-224 G-74
globally by region Assets, GMS & Solutions HNW distribution fulfillment professionals B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 As of September 30, 2013. 206 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Conclusion B-35
R-145 R-156 2 G-213 • $43 billion raised since 2010 G-226 10 B-242 B-146 • Fundraising strategy focused on:
R-61 R-163 3 G-175 – Pension Funds, SWFs & Other Large Investors G-143 11 B-46 B-187 – HNW Investor Development R-145 – Product Specific Resources R-127 4 G-229 G-127 12 B-0 – New Investors B-127 R-85 R-219 G-67 • Maintain a systematic fundraising approach to support growth & serve 13 5 G-217 B-113 investor needs B-217
R-118 • Well positioned to meet Carlyle’s fundraising goals for 2014 & beyond White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 As of September 30, 2013. 207 G-161 B-247 B-224 CHARTS & OBJECTS Text #1 Header Color #1 R: 153 Col 8 Row 5 G: 255 The Column / R – 255 B: 51 Row values can G – 255 B - 255 be found in the Text # 2 “area” color Color #2 Body-white Col 5 Row 2 R: 255 choice section R – 0 for choosing G: 255 G – 128 B: 255 pie & column B - 128 chart colors Color #3 Col 2 Row 4 The RGB R – 255 Text #3 values can be G – 204 B - 0 Emphasis found at R: 102 Fill Effects > Color #4 G: 255 Col 2, Row 1 B: 255 More Fill R - 153 Colors > G - 51 Custom B - 0 Black for good Color #5 contrast with Col 6 Row 3 bright R – 51 background G – 102 Investor Day elements B - 255 Text #4 Color #6 (Black) Col 3 Row 3 R: 0 R – 153 November 11, 2013 G: 0 G – 255 B: 0 B - 51
Color #7 Col 8 Row 4 R – 192 G – 192 B - 192 CHARTS & OBJECTS Text #1 Header Color #1 R: 153 Col 8 Row 5 G: 255 The Column / R – 255 B: 51 Row values can G – 255 B - 255 be found in the Global Energy: Panel Discussion & Q&A Text # 2 “area” color Color #2 Body-white choice section Col 5 Row 2 R: 255 R – 0 for choosing G: 255 G – 128 B: 255 pie & column B - 128 Moderator: chart colors Color #3 Col 2 Row 4 Daniel A. D’Aniello The RGB R – 255 Text #3 values can be G – 204 Co-Founder & Chairman B - 0 Emphasis found at R: 102 Fill Effects > Color #4 Panelists: G: 255 Col 2, Row 1 B: 255 More Fill R - 153 Colors > G - 51 Kenneth A. Hersh Custom B - 0 Chief Executive Officer of NGP Energy Capital Black for good Color #5 contrast with Col 6 Row 3 Management bright R – 51 background G – 102 elements B - 255 Marcel van Poecke Text #4 Color #6 (Black) Col 3 Row 3 Managing Director & Head of International Energy R: 0 R – 153 G: 0 G – 255 B: 0 B - 51 Robert Mancini Color #7 Col 8 Row 4 Managing Director & Head of Global Power R – 192 G – 192 B - 192 CHARTS & OBJECTS Text #1 Header Color #1 R: 153 Col 8 Row 5 G: 255 The Column / R – 255 B: 51 Row values can G – 255 B - 255 be found in the Text # 2 “area” color Color #2 Body-white Col 5 Row 2 R: 255 choice section R – 0 for choosing G: 255 G – 128 B: 255 pie & column B - 128 chart colors Color #3 Col 2 Row 4 The RGB R – 255 Text #3 values can be G – 204 B - 0 Emphasis found at R: 102 Fill Effects > Color #4 G: 255 Col 2, Row 1 B: 255 More Fill R - 153 Colors > G - 51 Custom B - 0 Black for good Color #5 contrast with Col 6 Row 3 bright R – 51 background G – 102 Investor Day elements B - 255 Text #4 Color #6 (Black) Col 3 Row 3 R: 0 R – 153 November 11, 2013 G: 0 G – 255 B: 0 B - 51
Color #7 Col 8 Row 4 R – 192 G – 192 B - 192 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 External Affairs: Creating Value for Fund Investors, B-0 B-127 Portfolio Companies & Unit Holders R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 David M. Marchick White 6 G-92 R-255 B-150 G-255
Managing Director & Head of External Affairs B-255 Text Colors
R-0 November 11, 2013 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Our Core Function B-35
R-145 R-156 2 G-213 G-226 10 B-242 Creating the space for fundraising, investment teams & B-146 portfolio companies to focus on their core business R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 Government Relations Global Communications B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
Proprietary Research Conferences & Events B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 212 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Government Affairs Involvement in Deal Life Cycle B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 G-175 Due Portfolio 3 Closing Exiting G-143 11 B-46 Diligence Management B-187
R-145 R-127 4 G-229 G-127 12 Political & Assist with Coordinate Assist with B-0 B-127 regulatory regulatory with portfolio regulatory / R-85 analysis approvals & companies on approval issues R-219 G-67 13 5 during due communicate Government upon exit G-217 B-113 diligence with key Affairs challenges B-217
R-118 process stakeholders during ownership White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Presented for illustrative purposes only to demonstrate the typical deal process when government affairs is involved. G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Case Study: Philadelphia Energy Solutions B-35
R-145 • Carlyle US Equity Opportunity R-156 2 G-213 Fund engaged with Sunoco for G-226 10 B-242 more than a year without B-146 success R-61 R-163 3 G-175 • By spring of 2012, US “Deal to save Sunoco refinery G-143 11 B-46 government grew very took hard work behind the B-187 concerned over refinery scenes” shutdown’s impact on east -July 4, 2012 R-145 coast fuel markets R-127
4 G-229 G-127 12
B-0 B-127 • White House & Congress encouraged Sunoco to keep R-85 plant open R-219 G-67 13 5 G-217 B-113 • Carlyle worked with multiple B-217 stakeholders to enable R-118 investment on attractive White 6 G-92 economic terms R-255 B-150 G-255 B-255
– Sunoco Text Colors – White House / EPA R-0 – Pennsylvania Governor / Dept. Dark Blue G-161 R-0 7 of Environment B-224 – Philadelphia Mayor G-74 B-136
– United Steel Workers Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 This case study is intended as a reflection of Carlyle’s investment process & references to this particular portfolio company should not be considered a recommendation in any particular security or portfolio company. The information presented is R-0 G-230 intended to be illustrative & is not intended to be used as an indication of the current or future performance of Carlyle’s 8 214 G-161 B-247 portfolio companies. Results may not be typical. See “Important Information” at the beginning of this presentation. B-224 R-0 R-43 1 G-101 G-131 9 B-179 Case Study: Yashili B-35
R-145 R-156 2 G-213 • Carlyle invested in Chinese G-226 10 B-242 B-146 baby formula company Yashili in Sept. 2009 “China to boost domestic formula R-61 brands” R-163 3 G-175 • Recognizing sensitivity of - September 25, 2013 G-143 11 B-46 B-187 investment, Carlyle negotiated
R-145 with Yashili to: R-127
4 G-229 G-127 12
B-0 – Appoint Chief Quality Officer B-127
– Appoint Quality Advisory “Carlyle investee Yashili hires safety R-85 experts to boost consumer confidence” R-219 G-67 board 13 5 - August 6, 2010 G-217 B-113 • Yashili restructured entire B-217 “Yashili – still R-118 supply chain, sourcing milk White struggling to repair the 6 G-92 powder from NZ R-255 B-150 damage” G-255 - September 6, 2012 B-255 • Yashili’s brand & sales Text Colors R-0 strengthened; Carlyle sold Dark Blue G-161 R-0 7 B-224 stake in June 2013 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 This case study is intended as a reflection of Carlyle’s investment process & references to this particular portfolio company R-0 G-230 should not be considered a recommendation in any particular security or portfolio company. The information presented is 8 intended to be illustrative & is not intended to be used as an indication of the current or future performance of Carlyle’s 215 G-161 B-247 portfolio companies. Results may not be typical. See “Important Information” at the beginning of this presentation. B-224 R-0 R-43 1 G-101 Sample of Portfolio Companies That Have Benefited From Carlyle’s G-131 9 B-179 External Affairs Capabilities B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Representative sample presented for illustrative purposes only. 216 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Carlyle’s brand is a valuable asset to the firm & unitholders B-35
R-145 R-156 2 G-213 Maintaining a strong brand is critical for all aspects of our business G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187 Raising Capital Recruiting Top Talent R-145 R-127
4 G-229 G-127 12
B-0 Carlyle B-127 R-85 R-219 G-67 13 5 Brand G-217 B-113 B-217 Preserving our Forming R-118 “license to White 6 G-92 R-255 B-150 Partnerships G-255
operate” B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 217 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Fund Investor Engagement B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146 Investor / R-61 R-163 3 G-175 Sector G-143 11 B-46 Conferences B-187 Washington Research R-145 R-127
4 G-229 Day Reports G-127 12
B-0 B-127 Fund R-85 R-219 G-67 13 5 Investors G-217 B-113 B-217 Private Equity Podcasts/ R-118 University Webcasts White 6 G-92 R-255 B-150 G-255 Targeted / B-255 Topic Specific Text Colors R-0 Dark Blue G-161 R-0 7 Conf calls B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 218 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Proprietary Research B-35
R-145 R-156 2 G-213 • Carlyle owns more than 200 G-226 10 B-242 global portfolio companies B-146
R-61 R-163 3 G-175 • Mine data for correlation with G-143 11 B-46 official statistics B-187
R-145 R-127
4 G-229 • Identify deviations from official G-127 12
B-0 data B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 How Could Urine Sample Data Improve Carlyle’s Investment Decisions? B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 220 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Correlation Of eScreen Data To Official Data B-35
R-145 R-156 2 G-213 Actual Hiring Growth eScreen Two Month-ahead Prediction G-226 10 B-242 B-146 15.0%
R-61 10.0% R-163 3 G-175 G-143 11 B-46 B-187 5.0%
R-145 0.0% R-127
4 G-229 G-127 12
B-0 B-127 -5.0%
R-85 R-219 G-67 -10.0% 13 5 G-217 B-113 B-217 -15.0%
R-118 White -20.0% 6 G-92 R-255 B-150 G-255 B-255
-25.0% Text Colors
R-0 Dark Blue G-161 -30.0% R-0 7 B-224 G-74
B-136
Jul-09 Jul-10 Jul-11
Jan-11 Jan-10 Jan-12
Jun-09 Jun-10 Jun-11
Oct-09 Oct-10 Oct-11
Apr-09 Apr-10 Apr-11
Feb-10 Feb-11
Sep-09 Sep-10 Sep-11
Dec-09 Dec-10 Dec-11
Mar-10 Mar-11
Aug-10 Aug-09 Aug-11
Nov-09 Nov-10 Nov-11
May-09 May-10 May-11 Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Source: Bureau of Labor Statistics & Carlyle analysis of eScreen data. 221 G-161 B-247 B-224 R-0 R-43 1 G-101 Sharp Sell-Off In European Stocks In 2012 Was Inconsistent With The G-131 9 B-179 Unchanged Fundamentals Reflected In Our H.C. Stark Data B-35
R-145 R-156 2 G-213 10 115 G-226 B-242 B-146 155
R-61 145 R-163 G-175 110 3 G-143 11 B-46 B-187 135
R-145 125 105 R-127 4 G-229 G-127 12 B-0 115 B-127 Sharp sell-off in asset prices inconsistent with fundamentals R-85 100 105 R-219 G-67 13 5 G-217
B-113 Index 350 Europe S&P 95 B-217 95 R-118 Production Industrial EuroStat 85 White 6 G-92 S&P Europe Starck-Implied Output R-255 B-150 G-255 B-255
75 90 Text Colors
R-0 Dark Blue
G-161 R-0
Feb-09 Feb-11 Feb-12 Feb-13
7 Feb-10
Aug-09 Aug-10 Aug-11 Aug-12 Aug-13
Nov-10 Nov-11 Nov-12
Nov-09 G-74
May-10 May-11 May-12 May-13 B-224 May-09
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 Source: Capital IQ & Carlyle analysis of H.C. Stark data. 222 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Concluding Points B-35
R-145 R-156 2 G-213 • Carlyle has invested heavily in in-house regulatory, economic & G-226 10 B-242 communications / brand expertise B-146
R-61 • Experts provide support & advice to senior management, Carlyle funds R-163 3 G-175 G-143 11 B-46 & portfolio companies B-187
R-145 • Our External Affairs group enhances Carlyle’s ability to invest wisely & R-127
4 G-229 G-127 12
B-0 create value for our fund investors B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 223 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 G-143 11 B-46 B-187
R-145 R-127
4 G-229 G-127 12
B-0 Financial Results, Future Drivers & New Disclosures B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 Adena T. Friedman White 6 G-92 R-255 B-150 G-255
Managing Director & Chief Financial Officer B-255 Text Colors
R-0 November 11, 2013 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Our Diverse AUM & Business Mix…. B-35
R-145 R-156 2 G-213 By Investment Type By Geography G-226 10 B-242 B-146
R-61 Americas R-163 3 G-175 PE Fund CPE G-143 11 B-46 of Funds B-187 $48 Asia- $62 66% Pacific R-145 R-127 4 G-229 10% G-127 12 $185 B-0 $185 B-127 billion billion R-85 R-219 G-67 13 5 $27 G-217 B-113 Energy & $14 24% B-217 Infrastructure $12 $4 $17 Hedge R-118 Funds White 6 G-92 Real Estate Europe, Middle R-255 B-150 CLOs G-255 East & Africa B-255 GMS Carry Funds Text Colors R-0 & BDC Dark Blue G-161 R-0 7 B-224 ■ Corporate Private Equity ■ Global Market Strategies G-74 B-136
■ Real Assets ■ Solutions Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 As of September 30, 2013. Segments may not add to total due to rounding. 225 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 …Drives a Diversified Revenue & Earnings Stream B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146 Net Realized Management Distributable R-61 Performance Fees Fees Earnings R-163 3 G-175 G-143 11 B-46 B-187 1% 5% R-145 9% 15% R-127 4 G-229 11% G-127 12 B-0 17% B-127 LTM Q3 LTM Q3 LTM Q3 R-85 46% 2013: 2013: R-219 G-67 18% 2013: 13 5 52% G-217 B-113 $448 mm $1,020 mm $627 mm B-217 66% 32% R-118 27% White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 ■ Corporate Private Equity ■ Global Market Strategies ■ Real Assets ■ Solutions G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 226 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Strong Performance Has Led to Substantial Gains in Embedded Value B-35
R-145 R-156 $2,000 2 G-213 Net Accrued Performance Fee Balance G-226 10 B-242 (at Period End) B-146 $1,500 $1,612 Fund appreciation R-61 R-163 3 G-175 $1,000 has grown our G-143 11
($ mm) ($ $1,200 B-46 $1,050 $1,036 net performance B-187 $500 fee accrual… R-145 R-127
4 G-229 G-127 12
B-0 $0 B-127 2010 2011 2012 Q3 2013 R-85 R-219 G-67 $800 13 5 Net Realized Performance Fee Revenue G-217 B-113 $700 B-217 $600 $678
R-118 …despite White $500 6 G-92 significant R-255 B-150 $400 $502 G-255 ($ mm) ($ $448 realizations over B-255 $300 Text Colors the last three R-0 $200 Dark Blue G-161 R-0 7 years. B-224 $100 G-74 $134 B-136
$0 Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 2010 2011 2012 LTM Q3 2013 R-0 G-230 8 Past performance is not indicative of future results. There is no guarantee these trends will continue. 227 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 We are Positioning Our Balance Sheet to Work for Us B-35
R-145 R-156 2 G-213 G-226 10 B-242 Goal Position as of 9/30/13 B-146
R-61 Manage cash to support annual R-163 3 G-175 $856 million of total GAAP cash G-143 11 business needs & meet stated B-46 $484 million in operating cash1 B-187 distribution policy
R-145 R-127
4 G-229 G-127 12
B-0 Build our carry assets to drive future $2.9 billion of gross accrued carry B-127 revenue & retain our talent $1.6 billion of net accrued carry R-85 R-219 G-67 13 5 G-217 B-113 Build balance sheet investments to $264 million in balance sheet B-217 generate future earnings stream investments & growing R-118 White 6 G-92 R-255 B-150 G-255 B-255
$500 million in 10-year bonds at 3.875% Text Colors Access debt markets at attractive $400 million in 30-year bonds at 5.625% R-0 rates & durations Dark Blue G-161 $25 million in remaining term loan due 2018 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 Operating Cash is not a disclosed figure in Carlyle public disclosures. It represents cash that is not restricted or reserved or 8 otherwise related to non-controlling interest. 228 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Our Near Term Earnings Growth Driven by What We Have Today B-35
R-145 R-156 2 G-213 G-226 10 B-242 B-146
R-61 R-163 3 G-175 Appreciation & Harvesting across 11 Funds in or Near Accrued Carry G-143 11 B-46 B-187
R-145 R-127 4 G-229 G-127 12 B-0 Scaled Hedge Fund Platform B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 Successful Fundraising across all Segments White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 8 229 G-161 B-247 B-224 R-0 R-43 1 G-101 11 Carry Funds with Significant Remaining Fair Value & Carlyle Hedge G-131 9 B-179 Funds Have Substantial Carry Generating Potential Over the Next 3 Years B-35
R-145 R-156 2 G-213 Remaining Fair Net IRR Accruing Taking G-226 10 B-242 B-146 Value ($ mm) 9/30/13 Carry Carry Carlyle Partners V $13,491 13% √ √ R-61 R-163 3 G-175 Europe Partners III 6,780 8% G-143 11 B-46 Carlyle Partners IV 5,358 13% √ √ B-187 Corporate Carlyle Asia Partners III 1,805 7% R-145 Private Equity Carlyle Asia Partners II 1,159 8% √ R-127
4 G-229 G-127 12
B-0 Financial Services Partners I 1,034 10% √ √ B-127 Europe Technology Partners II1 792 8% √ R-85 Energy Partners IV 4,595 13% √ √ R-219 G-67 13 5 G-217 B-113 Energy Partners III 2,306 11% √ √ Real Assets B-217 Carlyle Realty Partners V 1,348 7% R-118 Carlyle Realty Partners VI 1,340 19% √ White 6 G-92 Global Market R-255 B-150 Hedge Funds2 $14,048 n/a G-255
Strategies B-255 Text Colors R-0 14 additional funds are currently accruing performance fees Dark Blue G-161 R-0 7 B-224 G-74 B-136 As of September 30, 2013. Please see “Important Information” at the beginning of this presentation. Funds selected represent
Use colors in preferred order for best results best for order preferred in colors Use eleven carry funds which are currently accruing, or have the potential to accrue carry in the near future & Carlyle hedge funds. Funds are not representative of Carlyle’s entire portfolio & results may not be typical. For more information about Blue R-189 the performance of Carlyle’s significant funds, please see Carlyle’s filings with the US Securities & Exchange Commission. R-0 G-230 1 Carlyle Europe Technology Partners II, L.P. is not included in Carlyle’s SEC reporting as it is not considered “significant.” 8 2 Reflects total hedge fund AUM as of September 30, 2013. 230 G-161 B-247 B-224 R-0 R-43 1 G-101 As Carry Funds Shift Above the Preferred Return, Performance Fees Catch G-131 9 B-179 Up to Inception to Date Returns B-35
R-145 This 2007 Europe fund (CEP III) is currently well-positioned to generate meaningful Accrued R-156 2 G-213 Carry, assuming a modest range of appreciation. Once in Accrued Carry, the fund must G-226 10 B-242 continue to appreciate to remain above its preferred return hurdle. B-146
R-61 € 3,000 Accrued Carried Interest R-163 3 G-175 (next 12 months) G-143 11 B-46 From Q3 2012 to Q3 2013, CEP III Assuming Appreciation of 1: B-187 € 2,500 20% appreciated 22% R-145 Accrual to close within 1% 16% Quarterly Annual (€ mm) R-127 4 G-229 G-127 12 of exceeding the B-0 € 2,000 preferred return 12% B-127 hurdle 3% 12% 95 R-85 € 1,500 R-219 G-67 13 5 G-217 B-113 B-217 € 1,000 With further 4% 16% 285 R-118 White appreciation in 6 G-92 R-255 B-150 2014, CEP III could G-255 € 500 B-255
cross the preferred Text Colors return hurdle 5% 20% 435 R-0 Dark Blue G-161 R-0 7 € 0 B-224 G-74 B-136
Sep 2012 Sep 2013 Sep 2014 Use colors in preferred order for best results best for order preferred in colors Use For illustrative purposes only. There is no guarantee CEP III or any other Carlyle fund will appreciate & / or generate accrued Blue R-189 carry on the timeline set forth above or at all & there can be no assurances with respect to the future performance of any R-0 G-230 Carlyle fund. See “Important Information” at the beginning of this presentation. 8 1 Assumes no additional investment related activity. 231 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Five Key Factors Drive Decisions to Realize Carry B-35
R-145 To support a decision R-156 2 G-213 G-226 10 B-242 Factor to realize carry: B-146
R-61 R-163 3 G-175 1 Profitable Exit Need a profitable exit G-143 11 B-46 B-187
R-145 Further into deployment or fully R-127 4 G-229 2 % of Fund Invested G-127 12 deployed B-0 B-127
R-85 R-219 G-67 Higher level of capital returned to 13 5 3 % of Contributions Returned G-217 B-113 fund investors B-217
R-118 White 6 G-92 Higher buffer of embedded R-255 B-150 4 % FMV Decline to Reach $0 Accrued Carry G-255
valuation gains B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 # of Quarters of Preferred Return Hurdle Longer buffer of time assuming no B-224 5 G-74 B-136
& Fees to Reach $0 Accrued Carry additional fund gains or return Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 R-0 G-230 For illustrative purposes only. Additional factors may also be considered by management. The decision to recognize carry is 8 made in management’s discretion, subject to the terms of the applicable fund partnership agreement. 232 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 We Evaluate All Factors in Our Carry Decision Process B-35
R-145 Carlyle Partners V: R-156 2 G-213 G-226 10 B-242 B-146
($ mm) 9/30/12 9/30/13
R-61 Invested Capital $9,220 $12,165 R-163
3 G-175 G-143 11 B-46 Fund Size $13,720 $13,720 B-187 % Invested (Invested Capital / Fund Size) 67% 89% R-145 Public Measures Net IRR 10% 13% R-127
4 G-229 G-127 12
B-0 B-127
% FMV Decline to Accrued Carry Balance of Zero (15%) (27%)
R-85 # of Quarters of Preferred Return Hurdle & Fees R-219 G-67 7 15 13 5 G-217 B-113 to Breakeven B-217
Internal With a 10% FMV Decline 2 10 Measures R-118 White G-92 % Contributions Returned 41% 48% R-255
6
B-150 G-255 B-255
Text Colors
Quality of Remaining Macroeconomic R-0 Overall Judgment Dark Blue G-161 Investments Environment R-0 7 B-224 G-74
B-136
Measures
Qualitative Use colors in preferred order for best results best for order preferred in colors Use Blue R-189 For illustrative purposes only to describe a hypothetical analysis of factors considered by management. Additional factors may R-0 G-230 8 also be considered by management. The decision to realize carry is made in management discretion, subject to the terms of G-161 B-247 the applicable fund limited partnership agreement. 233 B-224 R-0 R-43 1 G-101 $40 billion of Remaining Fair Value is Well Positioned to Realize G-131 9 B-179 Performance Fees B-35
R-145 R-156 2 G-213 Remaining Quarters G-226 10 B-242 Fair Value Unrealized Total Since Fee Net Accruing B-146 ($ mm) MOIC MOIC Inception IRR Carry? Early Harvesting R-61 R-163 3 G-175 Carlyle Partners V $13,491 1.6x 1.6x 24 13% G-143 11 B-46 Europe Partners III 6,780 1.1x 1.4x 24 8% B-187 Energy Partners IV 4,595 1.3x 1.6x 23 13% R-145 Asia Partners III 1,805 1.1x 1.3x 20 7% R-127
4 G-229 G-127 12
B-0 US Realty Partners VI 1,340 1.3x 1.4x 8 19% B-127 Financial Services Partners I 1,034 1.3x 1.5x 20 10% R-85 1 Europe Technology Partners II 792 1.5x 1.5x 23 8% R-219 G-67 13 5 G-217 B-113 Total Early Harvesting Funds $29,837 B-217 Mature Harvesting R-118 Carlyle Partners IV $5,358 1.9x 2.2x 32 13% White 6 G-92 R-255 B-150 Energy Partners III 2,306 1.1x 1.9x 32 11% G-255 B-255 US Realty Partners V 1,348 1.3x 1.4x 28 7% Text Colors R-0 Asia Partners II 1,159 1.2x 1.7x 28 8% Dark Blue G-161 R-0 7 Total Mature Harvesting Funds $10,172 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use As of September 30, 2013. Please see “Important Information” at the beginning of this presentation. Funds selected represent eleven carry funds which are currently accruing, or have the potential to accrue carry in the near future. Funds are not Blue R-189 representative of Carlyle’s entire portfolio & results may not be typical. For more information about the performance of R-0 G-230 Carlyle’s significant funds, please see Carlyle’s filings with the US Securities & Exchange Commission. 8 1 Carlyle Europe Technology Partners II, L.P. is not included in Carlyle’s SEC reporting as it is not considered “significant.” 234 G-161 B-247 B-224 R-0 R-43 1 G-101 Depending on Future Appreciation These Key Funds Could Realize G-131 9 B-179 $1.9-2.6 billion in Net Performance Fees Over the Next 3 Years B-35
R-145 R-156 2 G-213 Hypothetical Scenario G-226 10 B-242 B-146 RESULT: RESULT: KEY ASSUMPTION: Remaining Net Realized KEY ASSUMPTION: Q4 2013-2016 If Remaining R-61 Fair Market Perf. Fees over % Harvested Net Realized R-163 Equity 3 G-175 ($ bn) Value Remaining Through 2016 Performance G-143 11 Appreciates By B-46 Fund Life Fees B-187
R-145 Early R-127 4 G-229 G-127 12 B-0 Harvesting $29.8 $2.5 - $3.0 50 – 75% $1.5 - $2.0 Funds 0.0X 0.5X 1.0X B-127
R-85 R-219 G-67 13 5 G-217 B-113 Mature B-217 Harvesting $10.2 $0.4 - $0.6 ~95% $0.4 - $0.6 0.0X 0.5X 1.0X R-118 Funds White 6 G-92 R-255 B-150 G-255
B-255 Text Colors
R-0 Total $40.0 $2.9 - $3.6 ~75% $1.9 - $2.6 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use For illustrative purposes only. As of September 30, 2013. Funds selected represent eleven carry funds which are currently accruing, or have the potential to accrue carry in the near future. Funds are not representative of Carlyle’s entire portfolio & Blue R-189 results may not be typical. For more information about the performance of Carlyle’s significant funds, please see Carlyle’s R-0 G-230 filings with the US Securities & Exchange Commission. There is no guarantee the funds will appreciate & / or generate carried 8 interest on the timeline described above or at all. See “Important Information” at the beginning of this presentation. 235 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Hedge Funds Provide an Opportunity for Significant Annual Incentive Fees B-35
R-145 Our reported hedge funds are all over their high-water marks today. As a result, their R-156 2 G-213 potential net contribution to Carlyle is significant each year. G-226 10 B-242 B-146 Hedge Funds AUM Annual Incentive Fee Potential of Reported Funds R-61 ($ bn) R-163 G-175 ($ mm) (Net to Carlyle) 3 $16 G-143 11 B-46 $140 B-187 $14 $120 R-145 $11 $107 R-127 4 G-229 $12 G-127 12 $100 B-0 B-127 $80 $75 R-85 $8 R-219 G-67 $60 13 5 $45 G-217 B-113 B-217 $40 R-118 $4 White $20 6 G-92 R-255 B-150 G-255
$0 B-255 Text Colors $0 3% Net 5% Net 7% Net R-0 Dark Blue G-161 Total AUM Total AUM in Annual Annual Annual R-0 7 B-224 Reported Funds Return Return Return G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use As of September 30, 2013. “Reported hedge funds” include Claren Road Master Fund, Claren Road Opportunities Fund, & ESG Blue R-189 Cross-Border Equity Master Fund Ltd. Analysis assumes no change in AUM. For illustrative purposes only. There is no R-0 G-230 guarantee Carlyle’s hedge funds will appreciate & / or generate the returns set forth above. See “Important Information” at 8 the beginning of this presentation. 236 G-161 B-247 B-224 R-0 R-43 1 G-101 Strong Fundraising and Acquisitions Can Grow Management Fees Even G-131 9 B-179 Through a Significant Harvesting Period B-35
R-145 R-156 2 G-213 G-226 10 B-242 Impact on Fee-earning AUM Impact on Fee-earning AUM B-146 2011 through Q3 2013 Q4 2013 through 2016
R-61 Carry Funds Harvesting & Carry Funds Projected Harvesting & R-163 Acquisitions 1 3 G-175 Raised Stepdowns 2 to Be Raised 3 Stepdowns 2 G-143 11 B-46 B-187
R-145 $40 R-127
4 G-229 $50 $30 $27 $33 G-127 12
B-0 bn bn bn bn bn B-127
R-85 R-219 G-67 13 5 G-217 B-113 B-217 2011-Q3 2013 Q4 2013-2016 4 R-118 $2.6 billion in cumulative $4.0 billion in cumulative White 6 G-92 R-255 B-150 Management Fees Potential Management Fees G-255
B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 For illustrative purposes only. See “Important Information” at the beginning of this presentation. G-74 B-136 1 Fee-earning AUM at point of acquisition.
Use colors in preferred order for best results best for order preferred in colors Use 2 For standard carry funds, only the underlying cost basis of realized proceeds reduces Fee Earning AUM, assuming the fund is outside the investment period. Impact net of investments in funds that are outside of the investment period. Blue R-189 3 There is no guarantee Carlyle will meet its fundraising goals. R-0 G-230 4 Assumes Fee-earning AUM & management fee revenue for Hedge Funds, CLOs & the Solutions platform remain at current 8 levels. There is no guarantee Fee-earning AUM or management fee revenue will remain steady. 237 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 Today’s Platform Will Drive Revenue Growth Over the Next 3 Years B-35
R-145 R-156 2 G-213 Q4 2013 – 2016 Revenue Opportunity G-226 10 B-242 B-146
Potential for $1.9-2.6 billion in R-61 Appreciation & Harvesting across 11 R-163 G-175 Net Realized Performance Fees 3 Funds in or Near Accrued Carry G-143 11 B-46 (likely to build over the period) B-187
R-145 R-127 4 G-229 G-127 12 B-0 Opportunity for significant B-127 Scaled Hedge Fund Platform Annual Incentive Fees R-85 R-219 G-67 13 5 G-217 B-113 B-217
R-118 Successful Fundraising across All Possibility of 30% growth in cumulative White 6 G-92 Management Fee Revenues over next R-255 B-150 Segments G-255
3 years vs last 3 years B-255 Text Colors
R-0 Dark Blue G-161 R-0 7 B-224 G-74
B-136
Use colors in preferred order for best results best for order preferred in colors Use For illustrative purposes only. Projections set forth above are based on facts & assumptions which may prove incorrect. There is no guarantee these projections will materialize. See “Important Information” at the beginning of the presentation. Profits Blue R-189 will be impacted by continuous investment in new initiatives, bolt-on acquisitions and investments to improve our fund R-0 G-230 investors’ experience. Timing of fundraising & exits is inherently uncertain over the 3-year period, so guidance & clear growth 8 targets are not possible. All revenue opportunities are dependent on a benign macro-economic environment. 238 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 New Disclosures – Remaining Fair Value & Accrued Carry B-35
R-145 Remaining Quarters R-156 2 G-213 Fair Value Unrealized Accruing Since Fee G-226 10 B-242 B-146 ($ mm)1 MOIC Carry? Inception
R-61 Carlyle Partners V $13,491 1.6x 24 R-163 3 G-175 Europe Partners III 6,780 1.1x 24 G-143 11 B-46 B-187 Carlyle Partners IV 5,358 1.9x 32 Corporate R-145 Carlyle Asia Partners III 1,805 1.1x 20 R-127
4 G-229 Private G-127 12
B-0 Equity Carlyle Asia Partners II 1,159 1.2x 28 B-127 Financial Services Partners I 1,034 1.3x 20 R-85 R-219 G-67 Europe Technology 13 5 792 1.5x 23 G-217 B-113 2 Partners II B-217 Energy Partners IV 4,595 1.3x 23 R-118 White 6 G-92 Real Energy Partners III 2,306 1.1x 32 R-255 B-150 G-255
Assets Carlyle Realty Partners V 1,348 1.3x 28 B-255 Text Colors
R-0 Carlyle Realty Partners VI $1,340 1.3x 8 Dark Blue G-161 R-0 7 B-224 G-74 B-136 As of September 30, 2013. There is no guarantee these trends will continue. Funds represent eleven carry funds which are
Use colors in preferred order for best results best for order preferred in colors Use currently accruing, or have the potential to accrue carry in the near future. Funds are not representative of Carlyle’s entire portfolio & results may not be typical. For information about the performance of all of Carlyle’s significant funds, please see Blue R-189 Carlyle’s filings with the US Securities & Exchange Commission. R-0 G-230 1 Funds that report in foreign currency have been converted to US dollars at the reporting period spot rate. 8 2 Carlyle Europe Technology Partners II, L.P. is not included in Carlyle’s SEC reporting as it is not considered “significant.” 239 G-161 B-247 B-224 R-0 R-43 1 G-101 G-131 9 B-179 New Disclosure – Top Publicly Traded Positions B-35
R-145 R-156 2 G-213 Portfolio Company or Q3 2013 G-226 10 B-242 Rank Investment Fund(s) # of Shares Value1 B-146 1 Booz Allen Hamilton, Inc. CP V, CMP II 91,809,598 $1,773,761,431 R-61 R-163 3 G-175 2 Allison Transmission, Inc. CP IV 63,446,250 1,589,328,563 G-143 11 B-46 B-187 Pattern Energy Group 3 Renew II 32,267,907 1,528,021,413 Holdings, L.P. R-145 R-127 4 G-229 G-127 12
4 The Nielsen Company CP IV, CEP II 30,792,554 1,122,388,611 B-0 B-127 5 Cobalt International Energy Energy II & III 34,822,878 865,696,747 R-85 R-219 G-67 6 HD Supply, Inc. CP V 36,471,872 801,287,028 13 5 G-217 B-113 7 CoreSite Realty Corporation CRP III, IV & V 25,275,390 730,936,683 B-217
R-118 8 Wesco Holdings, Inc. CP IV, CMP I 29,330,184 613,880,749 White 6 G-92 R-255 B-150 9 Genesee & Wyoming, Inc. CP V 5,984,232 556,354,049 G-255 B-255 CP IV, CEP II, Text Colors 10 Freescale Semiconductor, Inc. 31,211,349 $519,668,953 R-0 CAP II, CJP I Dark Blue G-161 R-0 7 B-224 G-74
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Use colors in preferred order for best results best for order preferred in colors Use Selected investments only intended as a reflection of Carlyle’s investment process & references to particular portfolio investments should not be considered a recommendation of any particular company or security. This information is Blue R-189 intended to be illustrative & is not intended to be used as an indication of the current or future performance of Carlyle’s R-0 G-230 portfolio companies. Results may not be typical. 8 1 Includes gross fund only investment results including external coinvestment 240 G-161 B-247 B-224 R-0 R-85 G-101 G-67 B-179 B-113
R-0 R-118 G-161 G-92 B-224 B-150
R-145 R-163 G-213 G-143 B-242 B-187
R-189 R-154 G-230 G-155 B-247 Wrapping Things Up B-156 R-43 G-131 R-219 B-35 G-217 B-217
R-61 White G-175 Glenn A. Youngkin R-255 B-46 G-255
Chief Operating Officer B-255 Text Colors R-145 November 11, 2013 Dark Blue G-229 R-0 B-0 G-74
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R-156 Blue G-226 R-0 B-146 G-161 B-224 R-0 R-85 G-101 G-67 B-179 High Level Strategy B-113
R-0 R-118 G-161 Generate Attractive Returns G-92 B-224 ForGenerate Our Fund Attractive Investors Grow the Investment Platform B-150 • Attractive Fund Offerings •SectorReturns Experts For Our Fund Grow the Investment Platform R-145 Investors • AttractiveLeverage Our Fund Scale Offerings R-163 G-213 •Global Footprint • Distinctive Performance → G-143 B-242 • Leverage Our Scale •Operating•Sector Experts Executives • DistinctiveAttractive Fee Performance Constructs → B-187 •One•Global Carlyle Footprint Attractive Fee Constructs R-189 R-154 G-230 •Operating Executives G-155 B-247 •OneCarlyle B-156
R-43 G-131 R-219 B-35 G-217 B-217 Deepen & Expand Investor Support with World Class R-61 BaseDeepen & Expand Investor Investor Services White G-175 •BaseProduct Specialists • Investor Reporting R-255 B-46 G-255 • BroadProduct Geographic Specialists Coverage • Portfolio Analytics B-255 • HighBroad Net Geographic Worth/Retail Coverage Offerings • Fund Launch Text Colors R-145 • HNW/Retail Offerings • Acquisition Integration Dark Blue G-229 • Corp. Functions R-0 B-0 G-74
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R-156 Blue G-226 R-0 B-146 Note: Presented for illustrative purposes only. 242 G-161 B-224 R-0 R-85 G-101 G-67 B-179 Generate Attractive Returns For Our Fund Investors B-113
R-0 R-118 G-161 • Sector Experts • Global Footprint • Operating Executives • OneCarlyle G-92 B-224 B-150 Appreciation of Carlyle Funds(1,2,3): Carlyle CPE Funds vs. S&P 500 and MSCI ACWI R-145 R-163 G-213 G-143 B-242 B-187 Year-to-Date 3 Year 6 Year (Jan – Sep 2013) (Q3 10 to Q3 13) (Q4 07 to Q3 13) R-189 R-154 G-230 20% G-155 B-247 19% 29% 18% B-156 25% 24% 15% 16% 14% R-43 12% 12% R-219 G-131 9% 14% B-35 8% 8% G-217 B-217 3% R-61 2% White G-175 R-255 -1% G-255 B-46 Appreciation Volatility Appreciation Volatility Appreciation Volatility
B-255 Text Colors R-145 Dark Blue Carlyle S&P 500 MSCI ACWI G-229 R-0 G-74 B-0 1 Appreciation / (Depreciation) represents unrealized gain / (losses) for the period on a total return basis before fees and B-136 expenses. The percentage of return is calculated as: Ending Remaining Investment FMV plus net investment outflow (sales proceeds minus net purchases) minus Beginning Remaining Investment FMV divided by Beginning Remaining Investment FMV. R-156 2 Volatility based on quarterly returns for year-to-date and 3-year period and annual returns from 2008 to 2012 for the Q4 07 Blue to Q3 13 analysis R-0 G-226 3 All non-USD values are converted at the spot rate of the most recent quarter end period (e.g., QoQ appreciation for Q3 13 B-146 would be converted at Q3 13 FX rates) 243 G-161 B-224 R-0 R-85 G-101 G-67 B-179 High Level Strategy B-113
R-0 R-118 G-161 Generate Attractive Returns G-92 B-224 For Our Fund Investors Grow the the Investment Investment Platform B-150 • Attractive Fund Offerings Generate•Sector Experts Attractive Returns For Platform R-145 Our Fund Investors • Leverage Our Scale R-163 G-213 •Global Footprint • DistinctiveAttractive Performance Fund Offerings → G-143 B-242 • Sector Experts ••GlobalOperating Footprint Executives •LeverageAttractive Fee Our Constructs Scale B-187 ••OperatingOne Carlyle Executives •Distinctive Performance → R-189 • OneCarlyle R-154 G-230 Attractive Fee Constructs G-155 B-247 B-156
R-43 G-131 R-219 B-35 G-217 B-217 Deepen & Expand Investor Support with World Class R-61 BaseDeepen & Expand Investor Investor Services White G-175 •BaseProduct Specialists • Investor Reporting R-255 B-46 G-255 • BroadProduct Geographic Specialists Coverage • Portfolio Analytics B-255 • HighBroad Net Geographic Worth/Retail Coverage Offerings • Fund Launch Text Colors R-145 • HNW/Retail Offerings • Acquisition Integration Dark Blue G-229 • Corp. Functions R-0 B-0 G-74
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R-156 Blue G-226 R-0 B-146 Note: Presented for illustrative purposes only. 244 G-161 B-224 R-0 R-85 G-101 G-67 B-179 Grow the Investment Platform B-113
R-0 R-118 • Attractive Fund Offerings • Leverage Our Scale • Distinctive Performance→Attractive Fee Constructs G-161 G-92 B-224 B-150
R-145 R-163 G-213 Investment/Fund Teams Added in the Past 5 Years G-143 B-242 B-187 Organic in Blue /Acquired in Green R-189 R-154 G-230 G-155 B-247 2009 2010 2011 2012 2013 YTD B-156 South America Claren Road AlpInvest NGP Energy Int’l Energy R-43 G-131 Buyout Capital R-219 B-35 Energy Mezzanine ESG Management Metropolitan G-217 RE Fund of Funds B-217 RMB Fund Sub-Saharan Africa Middle Market R-61 Finance/BDC CPG Carlyle Global White G-175 R-255 1 B-46 Peru Buyout PE-40Act RIC G-255
Power B-255 Text Colors
Dark Blue R-145 Vermillion G-229 R-0 B-0 G-74 B-136 Ireland Growth
Blue R-156 G-226 R-0 B-146 1 Central Park Group is the investment advisor to this Fund. 245 G-161 B-224 R-0 R-85 G-101 G-67 B-179 High Level Strategy B-113
R-0 R-118 G-161 Generate Attractive Returns G-92 B-224 For Our Fund Investors Grow the Investment Platform B-150 • Attractive Fund Offerings Generate•Sector Experts Attractive Returns For Grow the Investment Platform R-145 Our Fund Investors • Attractive• Leverage Fund Our ScaleOfferings R-163 G-213 •Global Footprint • Distinctive Performance → G-143 B-242 • Sector Experts • Leverage Our Scale ••GlobalOperating Footprint Executives • DistinctiveAttractive Performance Fee Constructs → B-187 ••OperatingOne Carlyle Executives Attractive Fee Constructs R-189 • OneCarlyle R-154 G-230 G-155 B-247 B-156
R-43 G-131 R-219 B-35 G-217 B-217 Deepen & Expand Support with World Class R-61 InvestorDeepen & ExpandBase Investor Investor Services White G-175 Base • Investor Reporting R-255 B-46 •Product Specialists G-255 • Product Specialists • Portfolio Analytics B-255 •Broad Geographic Text Colors • Broad Geographic Coverage • Fund Launch R-145 •CoverageHNW/Retail Offerings • Acquisition Integration Dark Blue G-229 • Corp. Functions R-0 B-0 •High Net Worth G-74 B-136 /Retail Offerings R-156 Blue G-226 R-0 B-146 Note: Presented for illustrative purposes only. 246 G-161 B-224 R-0 R-85 G-101 G-67 B-179 Deepen & Expand Investor Base B-113
R-0 R-118 G-161 • Product Specialists • Broad Geographic Coverage • HNW/Retail Offerings G-92 B-224 B-150
R-145 Carlyle Fundraising Team 2012 & 2013 R-163 G-213 G-143 B-242 • ~80 Person Team • $32 bn in new commitments B-187
R-189 • 2 Management • Closes on 27 different funds R-154 G-230 G-155 B-247 • 23 Geographically Focused B-156 • $2.6 bn raised from HNW R-43 • 14 Product Specialists investors G-131 R-219 B-35 • 8 HNW Specialists G-217 • 181 new investors, committing B-217 • 30 Project Management, ~ $4.6 bn R-61 Fulfillment & Support White G-175 R-255 B-46 • 62% of capital from investors G-255 B-255 in 6 or more funds Text Colors R-145 Dark Blue G-229 ~1,450 Carlyle Employees • Over 1600 investors R-0 B-0 G-74
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R-156 Blue G-226 R-0 B-146 Note: As of 9/30/13. 247 G-161 B-224 R-0 R-85 G-101 G-67 B-179 High Level Strategy B-113
R-0 R-118 G-161 Generate Attractive Returns G-92 B-224 For Our Fund Investors Grow the Investment Platform B-150 • Attractive Fund Offerings Generate•Sector Experts Attractive Returns For Grow the Investment Platform R-145 Our Fund Investors • Attractive• Leverage Fund Our ScaleOfferings R-163 G-213 •Global Footprint • Distinctive Performance → G-143 B-242 • Sector Experts • Leverage Our Scale ••GlobalOperating Footprint Executives • DistinctiveAttractive Performance Fee Constructs → B-187 ••OperatingOne Carlyle Executives Attractive Fee Constructs R-189 • OneCarlyle R-154 G-230 G-155 B-247 B-156
R-43 G-131 R-219 B-35 Support with World G-217 Class Investor Services B-217 Deepen & Expand Investor R-61 BaseDeepen & Expand Investor •Investor Reporting White G-175 •BaseProduct Specialists R-255 B-46 •Portfolio Analytics G-255 • BroadProduct Geographic Specialists Coverage B-255
•Fund Launch Text Colors • HighBroad Net Geographic Worth/Retail Coverage Offerings R-145 • HNW/Retail Offerings •Acquisition Integration Dark Blue G-229 •Corp. Functions R-0 B-0 G-74
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R-156 Blue G-226 R-0 B-146 Note: Presented for illustrative purposes only. 248 G-161 B-224 R-0 R-85 G-101 G-67 B-179 Support with World Class Investor Services B-113
R-0 • Investor Reporting • Portfolio Analytics • Fund Launch • Acquisition Integration • Corp. Functions R-118 G-161 G-92 B-224 B-150
• 5,033 legal entities – 325 R-145 Partnership R-163 Conferences G-213 Accounting new ones so far this year G-143 & B-242 B-187 Events Fund • ~4,250 bank accounts R-189 Management Investment Teams across 100 banks R-154 G-230 Human G-155 B-247 Resources • ~118,000 cash transactions B-156 each year R-43 IT G-131 Investors / R-219 B-35 G-217 Limited Partners • >225 firm/fund audits each B-217 External year Affairs R-61 White G-175 Treasury R-255 B-46 • >50,000 K-1s and other tax G-255
filings each year B-255 Text Colors Legal R-145 & Compliance Dark Blue Corporate G-229 • ~7,800 unique investor R-0 Accounting B-0 requests each year G-74 Office B-136 Administration R-156 Blue G-226 R-0 B-146 Note: As of 9/30/13. G-161 249 B-224 R-0 R-85 G-101 G-67 B-179 High Level Strategy B-113
R-0 R-118 G-161 G-92 B-224 Generate Attractive Returns For Grow the Investment Platform B-150 Our Fund Investors • Attractive Fund Offerings R-145 • Sector Experts • Leverage Our Scale R-163 G-213 • Global Footprint • Distinctive Performance → G-143 B-242 • Operating Executives Attractive Fee Constructs B-187 • OneCarlyle R-189 R-154 G-230 Grow Distributable Earnings & G-155 B-247 Related Unitholder Distributions B-156 •More Funds Generate Incentive Fees R-43 G-131 •Management Fees Grow R-219 B-35 G-217 •Operating Margins Increase B-217
R-61 Deepen & Expand Investor Support with World Class White G-175 Base Investor Services R-255 B-46 G-255 • Product Specialists • Investor Reporting B-255 • Broad Geographic Coverage • Portfolio Analytics Text Colors R-145 • High Net Worth/Retail Offerings • Fund Launch Dark Blue R-0 G-229 • Acquisition Integration B-0 G-74
• Corp. Functions B-136
R-156 Blue G-226 R-0 B-146 Note: Presented for illustrative purposes only. 250 G-161 B-224 R-0 R-85 G-101 G-67 B-179 Grow Distributable Earnings & Related Unitholder Distributions B-113
R-0 Corporate Private Global Market R-118 G-161 Equity Strategies Real Assets Solutions G-92 B-224 B-150 Drive performance in CPE Consistent Drive performance in Build/acquire key carry funds in “Big 11” performance of RA carry funds in “Big outstanding R-145 investment strategies 11” capabilities R-163 G-213 Complete fundraising for G-143 next gen funds On-board B-242 Launch contiguous Complete fundraising B-187 Near/Medium acquisitions strategies off existing for Int’l Energy
-Term Growth platforms Partners and Power R-189 Assemble Solutions Drivers Partners R-154 G-230 “sales force” G-155 B-247 Appropriately scale existing funds Successfully launch B-156 next gen US Real R-43 Estate and NGP Funds G-131 R-219 Build scale in newer Launch and acquire Re-tool International Bundle/integrate B-35 G-217 platforms new strategies Real Estate product offerings B-217
Longer-Term Expand product Exercise NGP options Launch new products R-61 targeting both White Growth offerings for (take CG to 55% G-175 HWN/Retail and R-255 HNW/Retail Investors mgmt. fees, 47.5% B-46 Drivers institutional investors G-255 perf. fees) B-255
Text Colors
R-145 Dark Blue G-229 R-0 B-0 G-74
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Successfully raise $15-20 billion per year and invest available capital wisely R-156 Blue R-0 G-226 Note: Presented for illustrative purposes only. Each of these statements represents Management’s longer-term ambitions B-146 based on current knowledge, but cannot be guaranteed. See “Important Information” at the beginning of this presentation. 251 G-161 B-224 R-0 R-85 G-101 G-67 B-179 Longer-Term Distributable Earnings Mix Expected to Shift Over Time B-113
R-0 R-118 G-161 • We expect Corporate Private Equity will be an even bigger G-92 B-224 cash engine B-150
R-145 R-163 G-213 G-143 B-242 • We expect Global Market Strategies, Real Assets and Solutions B-187
R-189 will generate a larger percentage of Distributable Earnings R-154 G-230 G-155 B-247 B-156 • Fee Related Earnings will grow as the platform broadens and R-43 G-131 newer strategies scale R-219 B-35 G-217 B-217
R-61 • Performance Fees will continue to represent a large part of White G-175 R-255 B-46 G-255
Distributable Earnings B-255 Text Colors R-145 Dark Blue G-229 R-0 B-0 G-74
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R-156 Blue R-0 G-226 Note: As of 9/30/13. For illustrative purposes only. Each of these statements represents Management’s longer-term ambitions B-146 based on current knowledge, but cannot be guaranteed. See “Important Information” at the beginning of this presentation. 252 G-161 B-224 R-0 R-85 G-101 G-67 B-179 High Level Strategy B-113
R-0 R-118 G-161 G-92 B-224 B-150
R-145 Generate Attractive Grow the Investment R-163 G-213 Returns For Our Fund Platform G-143 B-242 B-187 Investors R-189 R-154 G-230 G-155 B-247 B-156 Grow Distributable Earnings & Related R-43 G-131 Unitholder Distributions R-219 B-35 G-217 B-217
R-61 White G-175 R-255 B-46 G-255
Deepen & Expand Support with World B-255 Text Colors R-145 Investor Base Class Investor Services Dark Blue G-229 R-0 B-0 G-74
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R-156 Blue G-226 R-0 B-146 253 G-161 B-224 R-0 R-85 G-101 G-67 B-179 B-113
R-0 R-118 G-161 G-92 B-224 Carlyle is a B-150
R-145 R-163 G-213 G-143 B-242 B-187
R-189 R-154 G-230 Multi-Fund Multi-Discipline Multi-Geography G-155 B-247 B-156
R-43 G-131 One Culture R-219 B-35 G-217 B-217
R-61 White G-175 R-255 B-46 G-255
B-255 Text Colors R-145 Global Alternative Asset Manager Dark Blue G-229 R-0 B-0 G-74
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R-156 Blue G-226 R-0 B-146 254 G-161 B-224 CHARTS & OBJECTS Text #1 Header Color #1 R: 153 Col 8 Row 5 G: 255 The Column / R – 255 B: 51 Row values can G – 255 B - 255 be found in the Text # 2 “area” color Color #2 Body-white choice section Col 5 Row 2 R: 255 R – 0 G: 255 for choosing G – 128 Investor Day B: 255 pie & column B - 128 chart colors Color #3 November 11, 2013 Col 2 Row 4 The RGB R – 255 Text #3 values can be G – 204 B - 0 Emphasis found at R: 102 Fill Effects > Color #4 G: 255 Col 2, Row 1 B: 255 More Fill R - 153 Colors > G - 51 Custom B - 0 Black for good Color #5 contrast with Col 6 Row 3 bright Q&A background R – 51 G – 102 elements B - 255 Text #4 Color #6 (Black) Col 3 Row 3 R: 0 R – 153 G: 0 G – 255 B: 0 B - 51
Color #7 Col 8 Row 4 R – 192 G – 192 B - 192 CHARTS & OBJECTS Text #1 Header Color #1 R: 153 Col 8 Row 5 G: 255 The Column / R – 255 B: 51 Row values can G – 255 B - 255 be found in the Text # 2 “area” color Color #2 Body-white Col 5 Row 2 R: 255 choice section R – 0 for choosing G: 255 G – 128 B: 255 pie & column B - 128 chart colors Color #3 Col 2 Row 4 The RGB R – 255 Text #3 values can be G – 204 B - 0 Emphasis found at R: 102 Fill Effects > Color #4 G: 255 Col 2, Row 1 B: 255 More Fill R - 153 Colors > G - 51 Custom B - 0 Black for good Color #5 contrast with Col 6 Row 3 bright R – 51 background G – 102 Investor Day elements B - 255 Text #4 Color #6 (Black) Col 3 Row 3 R: 0 R – 153 November 11, 2013 G: 0 G – 255 B: 0 B - 51
Color #7 Col 8 Row 4 R – 192 G – 192 B - 192