The Carlyle Group Announces Third Quarter 2012 Earnings Results

  The Carlyle Group Announces Third Quarter 2012 Earnings Results

  *$0.63 per common unit in Distributable Earnings in Q3 2012, $0.91 per
    common unit in Distributable Earnings since The Carlyle Group IPO
  *$5.1 billion of carry fund realizations in Q3 2012 continues strong pace
    of exit activity, with $11.9 billion in realized proceeds year to date
  *$3.4 billion in new capital raised during Q3 2012 and $9.4 billion in new
    capital raised year to date
  *$1.6 billion in carry fund equity invested in Q3 2012 with more than $4.0
    billion in additional equity committed to transactions expected to close
    in upcoming quarters
  *Quarterly distribution of $0.16 per unit declared for common unitholders
  *U.S. GAAP net income attributable to The Carlyle Group L.P. of $19
    million, or $0.40 per common unit on a fully diluted basis for Q3 2012

Business Wire

WASHINGTON -- November 08, 2012

Global alternative asset manager The Carlyle Group L.P. (NASDAQ: CG), today
reported its unaudited third quarter 2012 results.

David M. Rubenstein, Co-Chief Executive Officer of Carlyle, said, “Every
component of the Carlyle engine is running strong. Third quarter fundraising
was solid, our investment pace was active, portfolio valuations were up and we
generated substantial cash returns for our fund investors. These returns drove
robust distributable earnings for the third quarter. Additionally, this
quarter we raised $3.4 billion in fresh capital, reflective of strong investor
confidence in our global model and investment performance.”

William E. Conway, Jr., Co-Chief Executive Officer of Carlyle, said, “Our
purpose is to invest wisely and create value for our fund investors, which in
turn benefits our public investors, and we worked hard at each this quarter.
Our active third quarter is a culmination of several factors, including the
scope of our global operation, various tactical advantages we had, strong
capital markets and many months and years of work. We believe that the United
States, Europe and emerging markets – from Brazil to Turkey to China – are
great places to invest right now.”

U.S. GAAP results for Q3 2012 included income before provision for income
taxes of $603 million and net income attributable to the public unitholders
through The Carlyle Group L.P. of $19 million, or net income per common unit
of $0.40 on a fully diluted basis. For Q3 2011, Carlyle was still a private
partnership, and the net loss before provision for income taxes was $(619)
million. For Q3 2012, total revenue was $859 million, compared with revenue of
$(60) million in Q3 2011. Total balance sheet assets were $30.0 billion as of
September 30, 2012 compared with $24.7 billion as of December 31, 2011.

                          Third Quarter Distribution

The Board of Directors has declared a quarterly distribution of $0.16 per
common unit to holders of record at the close of business on November 19,
2012, payable on November 30, 2012. Since the pricing of its IPO on May 2,
2012, Carlyle has announced $0.27 per common unit in distributions to public
unitholders.

Carlyle intends to distribute $0.16 per full quarter to common unitholders for
each of the first three quarters of the calendar year, and to announce a
year-end catch-up distribution in its fourth quarter earnings release. As
noted in Carlyle’s Registration Statement on Form S-1, Carlyle intends to make
the year-end catch-up distribution in an amount that, taken together with the
other quarterly distributions, represents substantially all of its
Distributable Earnings in excess of the amount determined by the General
Partner to be necessary or appropriate to provide for the conduct of its
business, to make appropriate investments in its business and its funds or to
comply with applicable law or any of its financing agreements. Carlyle
anticipates that the aggregate amount of its distributions for most years will
be less than its total Distributable Earnings for that year. The declaration
and payment of any distribution is at the sole discretion of the General
Partner, which may change the distribution policy at any time.

                              The Carlyle Engine

Carlyle evaluates the performance of its business on four key metrics, known
as the Carlyle engine (funds raised, equity invested, fund valuations and
realized proceeds for fund investors). The table below highlights the results
of those metrics for Q3 2012, as well as on a year-to-date (YTD) and last
twelve months (LTM) basis.

                                      
Funds Raised                             Equity Invested
Q3      $3.4 billion                    Q3    $1.6 billion
YTD: $9.4 bn       LTM: $10.8 bn        YTD: $4.6 bn   LTM: $7.5 bn
                                         
                                        
Realized Proceeds                        Carry Fund Returns
Q3      $5.1 billion                    Q3    3%
YTD: $11.9 bn      LTM: $15.1 bn        YTD: 11%       LTM: 18%
                                                    
Note: Equity Invested and Realized Proceeds reflect carry funds only.

During Q3 2012, Carlyle generated net realized proceeds of $5.1 billion from
117 different investments across 34 carry funds in its portfolio. Carlyle
deployed $1.6 billion of equity in Q3 2012 in 86 new or follow on investments
across 24 carry funds. In addition, Carlyle has committed to invest more than
$4.0 billion in equity across 10 transactions that were announced in Q3 2012
and are expected to close in upcoming quarters.

                                              
      Segment      Realized Proceeds               Equity Invested
                  # of         # of   $ mn      # of         # of   $ mn
                   Investments   Funds             Investments   Funds
      Corporate
      Private      33           16     $3,707    17           11     $863
      Equity
      Global
Q3    Market       34            6       $81       7             4       $237
      Strategies
      Real        53           12     $1,319   64           9      $544
      Assets
      Carlyle     117          34     $5,107   86           24     $1,644

      Corporate
      Private      71            20      $7,405    37            14      $1,798
      Equity
      Global
YTD   Market       50            6       $543      19            5       $471
      Strategies
      Real        88           13     $3,994   111          10     $2,311
      Assets
      Carlyle     203          39     $11,942  164          29     $4,580
                                                                         
                                                                         
      Note: The columns may not sum as some investments cross segment lines,
      but are only counted one time for Carlyle results.

              Carlyle All Segment Results for Third Quarter 2012

  *Distributable Earnings (DE): $206 million

       *Pre-tax Distributable Earnings of $206 million equated to $0.63 per
         common unit on a post-tax basis. Distributable Earnings increased 79%
         from Q2 2012 primarily due to period-over-period changes in our
         realized net performance fees. On an LTM basis, Distributable
         Earnings are $748 million compared to $752 million over the prior
         12-month period.
       *Fee-Related Earnings of $46 million increased 28% from Q2 2012 due to
         declines in operating expenses. On an LTM basis, Fee-Related Earnings
         declined 14% compared to the prior 12-month period.
       *Realized Net Performance Fees of $156 million increased 106% from Q2
         2012. For the current quarter, our revenues were positively impacted
         by public equity exits in China Pacific Life, Kinder Morgan, Dunkin
         Brands, and SS&C, as well as multiple private company sales. On an
         LTM basis, realized net performance fees are $591 million, up 7% from
         the prior 12-month period.
       *Realized Investment Income of $5 million increased slightly from Q2
         2012.

  *Economic Net Income (ENI): $219 million

       *Economic Net Income of $219 million in Q3 2012 compared to an
         Economic Net Loss of ($57) million in Q2 2012. On an after-tax basis,
         Carlyle generated $0.66 in ENI per unit. On an LTM basis, ENI
         decreased 34% compared to the prior 12-month period due to
         significant portfolio appreciation over the period following the
         financial crisis.
       *ENI was positively impacted in Q3 2012 by 3% appreciation in
         Carlyle’s carry fund portfolio, which excludes structured credit,
         hedge funds and Fund of Funds Solutions vehicles. The fund
         appreciation was driven by increases in Buyout, Real Estate and
         Global Market Strategies carry funds, offset by a decline in Energy
         funds, and flat performance in Growth funds.
       *The public carry fund portfolio increased 8% in Q3 2012 while our
         private carry fund portfolio increased 1%.

All Segments   Period                                      LTM    % Change
$ in                                                         4Q11
millions,       3Q2011  4Q2011  1Q2012  2Q2012  3Q2012  -      QoQ   YoY    YTD
except where                                                 3Q12
noted
                                                                             
Revenues        (263)    666      894      61       584      2,204   851%   322%    4%
                                                                                    
Expenses       (72)    411     501     119     365     1,397  208%  608%   9%
Economic Net   (191)   254     392     (57)    219     808    482%  214%   (4%)
Income
Fee-Related    37      14      34      36      46      129    28%   24%    7%
Earnings
Net
Performance    (223)   223     335     (107)   165     616    254%  174%   (4%)
Fees
Realized Net
Performance    194     216     143     76      156     591    106%  (20%)  (19%)
Fees
Distributable  244     247     179     115     206     748    79%   (15%)  (19%)
Earnings
                                                                                    
Total Assets
Under          148.6   147.0   159.2   156.2   157.4         1%    6%     
Management ($
billion)
Fee-Earning
Assets Under   112.6   111.0   117.0   112.0   115.1         3%    2%     
Management ($
billion)
Note: Totals may not sum due to rounding.



         Assets Under Management and Remaining Fair Value of Capital

  *Total Assets Under Management: $157.4 billion

       *Changes versus Q2 2012: Market appreciation (+$2.9 billion), new
         capital commitments (+$2.4 billion), foreign exchange impact (+$847
         million), changes in par value of CLO collateral (+$506 million),
         hedge fund net subscriptions (+$379 million) and net distributions
         (-$5.5 billion).
       *Increases versus year-end 2011 were primarily due to fundraising,
         portfolio appreciation, increases in Global Market Strategies due to
         CLO creation, new carry funds, and acquisitions. The increases across
         Carlyle were offset by significant levels of distributions to fund
         investors.
       *Total Dry Powder of $39.4 billion, comprised of Corporate Private
         Equity ($15.6 billion), Global Market Strategies ($1.3 billion), Real
         Assets ($7.0 billion), and Fund of Funds Solutions ($15.5 billion).

  *Fee-Earning Assets Under Management: $115.1 billion

       *Changes versus Q2 2012: Fee earning asset inflows (+$3.8 billion),
         foreign exchange impact (+$679 million), hedge fund net subscriptions
         (+$407 million), change in the par value of CLO collateral (+$171
         million), and net distributions and outflows (-$1.7 billion).
       *Carlyle Partners VI will not increase Fee-Earning AUM until the
         predecessor fund (Carlyle Partners V) is substantially invested,
         which is expected to occur in the first half of 2013.

  *Remaining Fair Value of Capital (carry funds only): $62 billion

       *Changes versus Q2 2012: Equity invested (+$1.6 billion),
         distributions (-$4.8 billion) and market appreciation (3%).
       *Current MOIC of remaining fair value of capital: 1.2x.
       *Remaining fair value of capital in the ground in investments made in
         2008 or earlier: 51%.
       *AUM in-carry ratio as of the end of Q3 2012: 68%.

    Please see accompanying multimedia.

                          Non-GAAP Operating Results

Carlyle’s non-GAAP results for Q3 2012 are provided in the table below:

$ in millions, except unit and per unit amounts
                                                             
Economic Net income                                           Q3 2012
                                                                 
Economic Net Income (pre-tax)                                    $   218.5 
Less: Provision for income taxes ^ (1)                              14.9  
Economic Net Income, After Taxes                                 $   203.6 
                                                                 
Fully diluted units (in millions)                                      307.7
                                                                 
Economic Net Income, After Taxes per Adjusted Unit               $     0.66
                                                                 
Distributable Earnings                                        
                                                                 
Distributable Earnings                                           $     206.3
Less: Estimated foreign, state, and local taxes ^(2)                10.6  
Distributable Earnings, After Taxes                              $   195.7 
                                                                 
Allocating Distributable Earnings for only public
unitholders of The Carlyle Group L.P.
                                                                 
Distributable Earnings to The Carlyle Group L.P.                 $     27.8
Less: Estimated current corporate income taxes ^ (3)                0.7   
Distributable Earnings to The Carlyle Group L.P. net of          $   27.1  
corporate income taxes
                                                                 
Units in public float (in millions)                                    43.2
                                                                 
Distributable Earnings, net, per The Carlyle Group L.P.       $   0.63  
common unit outstanding

(1) Represents the implied provision for income taxes that was calculated
using a similar methodology applied in calculating the tax provision for The
Carlyle Group L.P., without any reduction for noncontrolling interests.
(2) Represents the implied provision for current income taxes that was
calculated using a similar methodology applied in calculating the current tax
provision for The Carlyle Group L.P., without any reduction for noncontrolling
interests.
(3) Represents current corporate income taxes payable upon distributable
earnings allocated to Carlyle Holdings I GP Inc.



                        Corporate Private Equity (CPE)

                                                             
Funds Raised               Equity Invested     Realized Proceeds   Carry Fund
                                                                   Returns
Q3    $2.0 bn             Q3   $0.9 bn       Q3   $3.7 bn       Q3 5%
YTD: $4.8  LTM: $5.2 bn   YTD:     LTM:      YTD:     LTM:      YTD:  LTM:
bn                         $1.8 bn   $3.5 bn   $7.4 bn   $9.3 bn   12%    20%

  *Distributable Earnings (DE): $145 million. The following components
    impacted Distributable Earnings in Q3 2012:

       *Fee Related Earnings of $19 million increased 88% from Q2 2012 due to
         higher fee revenue and lower operating expenses.
       *Realized Net Performance Fees of $126 million increased $76 million
         from Q2 2012 as realizations in CPE funds were robust in Q3 2012.
       *Realized Investment Income of ($0.2) million compared to $1.5 million
         in Q2 2012.

  *Economic Net Income (ENI): $177 million

       *Economic Net Income of $177 million was up from a loss of ($65)
         million in Q2 2012.
       *CPE carry funds valuations increased 5% in Q3 2012, and 12%
         year-to-date, which drove positive Economic Net Income in the CPE
         segment, compared to a portfolio value decline of 2% and 6%,
         respectively, in Q2 2012 and Q3 2011.
       *Net Performance Fees of $159 million compared to a loss of ($80)
         million in Q2 2012, driven by an increase in CPE carry fund
         valuations in Q3 2012 versus a decrease in Q2 2012.

  *Assets Under Management (AUM): $53.2 billion

       *Total AUM increased 1% versus Q2 2012 while Fee-Earning AUM of $36.9
         billion was relatively flat versus $37.1 billion at the end of Q2
         2012.
       *Funds Raised of $2.0 billion was driven by the second closing of
         Carlyle Partners VI, as well as closings in our U.S. mid-market
         buyout fund and various coinvestments. Year-to-date, funds raised of
         $4.8 billion compares to $1.3 billion for the same period in 2011.

                                                                         
Corporate
Private        Period                                       LTM    % Change
Equity
$ in                                                         4Q11
millions,       3Q2011  4Q2011  1Q2012  2Q2012  3Q2012   -      QoQ   YoY    YTD
except where                                                 3Q12
noted
Economic Net   (185)   162     244     (65)    177     518   375%  196%   1%
Income
Net
Performance    (186)   152     215     (80)    159     446   300%  186%   13%
Fees
Realized Net
Performance    157     130     105     50      126     411   154%  (20%)  (16%)
Fees
Distributable  173     134     120     61      145     460   136%  (16%)  (25%)
Earnings
                                                                                   
Total Assets
Under          51.0    51.1    53.3    52.5    53.2         1%    4%     
Management ($
in billions)
Fee-Earning
Assets Under   38.6    38.0    37.8    37.1    36.9         (0%)  (4%)   
Management ($
in billions)
Note: Totals may not sum due to rounding.



                        Global Market Strategies (GMS)

                                                           
Funds Raised                 Equity Invested     Realized        Carry Fund
                                                 Proceeds        Returns
Q3    $1.2 bn               Q3   $0.2 bn       Q3 $0.1 bn     Q3 2%
YTD: $4.0      LTM: $4.9     YTD:     LTM:       YTD:   LTM:         YTD: LTM:
bn            bn            $0.5 bn  $0.8 bn    $0.5   $0.9        17%  23%
                                                 bn     bn
           
Note: Equity Invested and Realized Proceeds are for carry funds only. Funds
Raised excludes acquisitions, but includes hedge funds and CLOs.

  *Distributable Earnings (DE): $28 million. The following components
    impacted Distributable Earnings in Q3 2012:

       *Fee Related Earnings of $22 million increased 12% compared to Q2 2012
         as operating expenses declined in the quarter.
       *Realized Net Performance Fees of $1 million were flat with Q2 2012.
       *Realized Investment Income of $5 million increased from $3 million in
         Q2 2012.

  *Economic Net Income (ENI): $36 million

       *Economic Net Income of $36 million increased 13% from $32 million in
         Q2 2012, and was positively impacted by 2% appreciation in GMS carry
         funds.
       *Net Performance Fees of $8 million were up 86% compared to Q2 2012.

  *Assets Under Management (AUM): $30.1 billion

       *Total AUM increased 4% versus Q2 2012 while Fee-Earning AUM of $28.5
         billion increased 3% versus Q2 2012.
       *Hedge Fund net inflows continued to be strong, with $379 million in
         Q3 2012 and $1.7 billion in year-to-date net subscriptions, resulting
         in total hedge fund AUM of $9.8 billion.
       *Raised a third new Collateralized Loan Obligation (CLO) in 2012 with
         $615 million in assets.
       *GMS Carry Fund AUM ended the quarter at $3.5 billion.
       *Total Structured Credit AUM ended the quarter at $16.9 billion.
       *On October 1, 2012, Carlyle acquired a 55% ownership position in
         Vermillion Asset Management, a commodities focused investment manager
         with $2.2 billion in AUM as of September 30, 2012, which will be
         reflected in Carlyle’s Q4 2012 results and AUM.

Global
Markets        Period                                      LTM   % Change
Strategies
$ in                                                         4Q11
millions,      3Q2011  4Q2011  1Q2012  2Q2012  3Q2012   -      QoQ    YoY    YTD
except AUM                                                   3Q12
where noted
Economic Net   34      22      38      32      36      128   13%    5%     (24%)
Income
Net
Performance    11      3       18      4       8       33    86%    (23%)  (56%)
Fees
Realized Net
Performance    7       67      15      1       1       83    17%    (90%)  (68%)
Fees
Distributable  32      90      31      23      28      173   18%    (15%)  (20%)
Earnings
Total Assets
Under          23.0    24.5    28.3    29.0    30.1         4%     31%    
Management ($
in billions)
Fee-Earning
Assets Under   21.4    23.2    26.8    27.7    28.5         3%     33%    
Management ($
in billions)
                                                                  
Funds Raised,
excluding
hedge funds    0.8     0.0     0.7     0.8     0.8     2.3   4%     6%     
($ in
billions)
Hedge Fund
Net Inflows    0.5     0.8     0.7     0.7     0.4     2.6   (41%)  (23%)  
($ in
billions)
Note: Totals may not sum due to rounding. Funds Raised excludes the impact of
acquisitions.




                               Real Assets (RA)

                                                             
Funds Raised               Equity Invested     Realized Proceeds   Carry Fund
                                                                   Returns
Q3    $0.1 bn             Q3   $0.5 bn       Q3   $1.3 bn       Q3 0%
YTD: $0.2  LTM: $0.4 bn   YTD:     LTM:      YTD:     LTM:      YTD:  LTM:
bn                         $2.3 bn   $3.2 bn   $4.0 bn   $4.9 bn   8%     16%

  *Distributable Earnings (DE): $31 million. The following components
    impacted Distributable Earnings in Q3 2012:

       *Fee Related Earnings of $1 million declined from $3 million in Q2
         2012.
       *Realized Net Performance Fees of $29 million increased 15% compared
         to Q2 2012, primarily due to realizations in the Energy funds.
       *Realized Investment Income of $0.2 million was up $0.5 million versus
         Q2 2012.

  *Economic Net Income (ENI): $2 million

       *Economic Net Income of $2 million compared to a loss of ($29) million
         in Q2 2012, as carry fund valuations were flat in Q3 2012 versus a
         decline of 3% in Q2 2012.
       *During Q3 2012, combined Real Estate and Infrastructure fund
         valuations increased 5% while Energy fund valuations declined 3%.
       *Net Performance Fees of ($4) million compared to ($33) million in Q2
         2012, with the variance driven by mixed portfolio performance during
         Q3 2012, compared with fund declines in Q2 2012.

  *Assets Under Management (AUM): $29.5 billion

       *Total AUM declined 2% versus Q2 2012, largely due to distributions of
         $1.3 billion and flat carry fund performance, while Fee-Earning AUM
         of $19.6 billion was largely flat versus Q2 2012.

                                                                         
Real Assets    Period                                       LTM    % Change
$ in                                                         4Q11
millions,       3Q2011  4Q2011  1Q2012  2Q2012  3Q2012   -      QoQ   YoY    YTD
except where                                                 3Q12
noted
Economic Net   (48)    64      101     (29)    2       138   106%  103%   (8%)
Income
Net
Performance    (47)    67      99      (33)    (4)     130   89%   92%    (21%)
Fees
Realized Net
Performance    27      17      22      26      29      94    15%   10%    6%
Fees
Distributable  27      14      22      28      31      94    10%   14%    14%
Earnings
                                                                                   
Total Assets
Under          30.4    30.7    32.2    30.0    29.5         (2%)  (3%)   
Management ($
in billions)
Fee-Earning
Assets Under   22.4    22.2    22.8    19.5    19.6         0%    (13%)  
Management ($
in billions)
Note: Totals may not sum due to rounding.




                        Fund of Funds Solutions (FoF)

  *Distributable Earnings (DE): $3 million.

       *Fee Related Earnings of $3 million increased 15% compared to Q2 2012.

  *Economic Net Income (ENI): $4 million was flat compared with Q2 2012.
  *Assets Under Management (AUM): $44.6 billion

       *Total AUM was flat versus Q2 2012 while Fee-Earning AUM of $30.2
         billion increased 9% versus Q2 2012.
       *The increase in fee-earning AUM in Q3 2012 is attributable to the
         initiation of fees on several 2012 mandates that made their first
         investment during the quarter and began charging fees on total
         investor commitments.

                                                                          
Fund of Funds  Period                                       LTM    % Change
Solutions
$ in                                                         4Q11
millions,       3Q2011  4Q2011  1Q2012  2Q2012  3Q2012   -      QoQ    YoY    YTD
except where                                                 3Q12
noted
Economic Net   7       6       9       4       4       23    (8%)   (49%)  N.A.
Income
Net
Performance    (1)     1       4       1       1       6     (54%)  200%   N.A.
Fees
Realized Net
Performance    4       3       0       0       0       4     200%   (92%)  N.A.
Fees
Distributable  12      9       6       3       3       21    21%    (71%)  N.A.
Earnings
                                                                                    
Total Assets
Under          44.2    40.7    45.4    44.6    44.6         (0%)   1%     N.A.
Management ($
in billions)
Fee-Earning
Assets Under   30.2    27.7    29.5    27.6    30.2         9%     (0%)   N.A.
Management ($
in billions)
Note: Carlyle acquired a 60% ownership interest in AlpInvest on July 1, 2011. Totals may
not sum due to rounding.




                           Balance Sheet Highlights

The amounts presented below exclude the effect of U.S. GAAP consolidation
eliminations on investments and accrued performance fees as well as cash and
debt associated with Carlyle’s consolidated funds. All data is as of September
30, 2012.

  *Cash and Cash Equivalents of $769 million.
  *On-balance-sheet investments attributable to unitholders of $216 million.
  *Net Accrued Performance Fees attributable to unitholders of $1,189
    million. These performance fees are comprised of Gross Accrued Performance
    Fees of $2,155 million less $86 million in accrued giveback obligation and
    $880 million in accrued performance fee compensation and non-controlling
    interest.
  *Loans payable of $500 million.
  *Carlyle has an undrawn $750 million revolving credit line.

Conference Call

Carlyle will host a conference call on November 8, 2012 at 8:00 a.m. EST to
discuss Q3 2012 results and industry trends. Immediately following the
prepared remarks, there will be a Question and Answer session for analysts and
investors.

Analysts and institutional investors may listen to the call by dialing
+1-800-850-2903 (international +1-253-237-1169) and mentioning “The Carlyle
Group third quarter 2012 Results Conference Call”. The conference call will be
webcast simultaneously to the public through a link on the investor relations
section of The Carlyle Group web site at ir.carlyle.com. An archived replay of
the webcast also will be available shortly after the live event.

About The Carlyle Group

The Carlyle Group is a global alternative asset manager with$157 billion of
assets under management in 101 activefunds and 63 fund of funds vehicles as
of September 30, 2012. Carlyle invests across four segments – Corporate
Private Equity, Real Assets, Global Market Strategies and Fund of Funds
Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America
and South America. Carlyle has developed expertise invarious industries,
including: aerospace, defense & government services, consumer & retail,
energy, financial services, healthcare, industrial, technology & business
services, telecommunications & media and transportation. The Carlyle Group
employs more than 1,300 people in 32 offices acrosssixcontinents.
www.carlyle.com

Forward Looking Statements

This press release may contain forward looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These 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
non-historical statements. You can identify these forward-looking statements
by the use of words such as “outlook,” “believes,” “expects,” “potential,”
“continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,”
“intends,” “plans,” “estimates,” “anticipates” or the negative version of
these words or other comparable words. These statements are subject to risks,
uncertainties and assumptions, including those described under the section
entitled “Risk Factors” in our prospectus dated May 2, 2012, filed with the
SEC pursuant to Rule 424(b) of the Securities Act on May 4, 2012, as such
factors may be updated from time to time in our periodic filings with the SEC,
which are accessible on the SEC’s website at www.sec.gov. These factors should
not be construed as exhaustive and should be read in conjunction with the
other cautionary statements that are included in this release and in our
filings with the SEC. We undertake no obligation to publicly update or review
any forward-looking statements, whether as a result of new information, future
developments or otherwise, except as required by applicable law.This release
does not constitute an offer for any Carlyle fund.

                                                                
                                                                     
                                                                     
The Carlyle Group L.P.
GAAP Statement of Operations (Unaudited)
                                                                     
                   Three Months Ended              Nine Months Ended
                   Sept 30,         Sept 30,       Sept 30,          Sept 30,
                   2012             2011           2012              2011
                   (Dollars in millions, except unit and per unit data)
Revenues
Fund management    $ 239.8         $ 236.0        $ 714.1           $ 683.2
fees
Performance fees
Realized             291.4            375.2          688.7             870.1
Unrealized          64.9           (859.1   )    88.0            (133.6    )
Total                356.3            (483.9   )     776.7             736.5
performance fees
Investment
income (loss)
Realized             9.8              7.5            11.4              50.3
Unrealized          0.4            (12.9    )    27.3            6.3       
Total investment     10.2             (5.4     )     38.7              56.6
income (loss)
Interest and         4.5              2.5            9.9               15.6
other income
Interest and
other income of     247.7          191.2        678.4           521.6     
Consolidated
Funds
Total revenues       858.5            (59.6    )     2,217.8           2,013.5
                                                                     
Expenses
Compensation and
benefits
Base                 177.0            101.9          433.0             277.2
compensation
Equity-based         53.2             -              147.4             -
compensation
Performance fee
related
Realized             121.9            51.4           188.3             136.2
Unrealized          41.5           (139.5   )    (1.4        )    (81.7     )
Total
compensation and     393.6            13.8           767.3             331.7
benefits
General,
administrative       92.9             80.4           268.1             224.7
and other
expenses
Interest             4.0              15.7           20.6              48.5
Interest and
other expenses       204.1            99.1           568.1             290.0
of Consolidated
Funds
Other
non-operating       10.3           9.4          6.9             30.0      
expenses
Total expenses       704.9            218.4          1,631.0           924.9
                                                                     
Other income
(loss)
Net investment
gains (losses)      448.9          (341.2   )    1,707.6         (618.2    )
of Consolidated
Funds
                                                                     
Income (Loss)
before provision     602.5            (619.2   )     2,294.4           470.4
for income taxes
Provision for       5.5            12.9         27.8            25.7      
income taxes
Net income           597.0            (632.1   )     2,266.6           444.7
(loss)
Net income
(loss)
attributable to
non-controlling     485.4          (282.3   )    1,708.2         (473.4    )
interests in
consolidated
entities
Net income
(loss)               111.6          $ (349.8 )     558.4           $ 918.1     
attributable to
Carlyle Holdings
Net income
attributable to
non-controlling     93.0                          550.1       
interests in
Carlyle Holdings
Net income
attributable to    $ 18.6                         $ 8.3         
The Carlyle
Group L.P.
                                                                     
                                                                     
Net income
attributable to
The Carlyle
Group L.P. per
common unit
Basic              $ 0.43                         $ 0.20        
Diluted^(1)        $ 0.40                         $ 0.15        
                                                                     
Weighted-average
common units
Basic               43,235,336                    42,097,973  
Diluted             46,939,751                    255,300,460 

(1) - Included in net income attributable to The Carlyle Group L.P. per common
unit on a fully diluted basis is incremental net income from the assumed
exchange of Carlyle Holdings partnership units of $31.1 million for the nine
months ended September 30, 2012.


                                                                                  
                                                                                        
Total Segment Information (Unaudited)
                                                                                        
The following table sets forth information in the format used by management when making
resource deployment decisions and in assessing the performance of our segments. The
information below is the aggregate results of our four segments.
                                                                                        
                  Three Months Ended                    Twelve Months Ended
                  Sept 30,   Sept 30,    June 30,     Sept 30,     Sept 30,
                  2012        2011         2012         2012          2011
                  (Dollars in millions)
Segment
Revenues
Fund level fee
revenues
Fund management   $ 233.9    $ 234.4      $ 235.0      $ 914.9      $ 843.0   
fees
Portfolio
advisory fees,      4.6         7.5          7.0          25.3          38.3
net
Transaction        7.2       5.4        3.7        23.5        44.8    
fees, net
Total fee           245.7       247.3        245.7        963.7         926.1
revenues
Performance
fees
Realized            276.4       387.4        110.3        1,083.1       1,061.1
Unrealized         49.0      (894.7 )    (311.1 )    84.2        809.3   
Total
performance         325.4       (507.3 )     (200.8 )     1,167.3       1,870.4
fees
Investment
income (loss)
Realized            4.6         13.0         4.0          27.9          51.7
Unrealized         3.8       (17.6  )    10.0       35.4        34.8    
Total
investment          8.4         (4.6   )     14.0         63.3          86.5
income (loss)
Interest and       4.4       1.4        2.5        10.1        20.9    
other income
Total revenues      583.9       (263.2 )     61.4         2,204.4       2,903.9
                                                                                        
Segment
Expenses
Compensation
and benefits
Direct base         97.9        107.2        105.8        405.9         390.9
compensation
Indirect base       32.9        34.8         36.2         135.1         128.7
compensation
Equity-based        0.6         -            0.6          1.2           -
compensation
Performance fee
related
Realized            120.2       193.2        34.5         492.0         511.2
Unrealized         40.6      (477.2 )    (128.6 )    59.8        371.4   
Total
compensation        292.2       (142.0 )     48.5         1,094.0       1,402.2
and benefits
General,
administrative,
and other           68.5        55.0         64.0         269.4         226.1
indirect
expenses
Interest           4.7       15.1       6.1        33.4        50.7    
expense
Total expenses     365.4     (71.9  )    118.6      1,396.8     1,679.0 
                                                                                        
Economic Net      $ 218.5    $ (191.3 )   $ (57.2  )   $ 807.6      $ 1,224.9 
Income (Loss)
Fee Related       $ 45.5     $ 36.6      $ 35.5      $ 128.8      $ 150.6   
Earnings
Net Performance   $ 164.6    $ (223.3 )   $ (106.7 )   $ 615.5      $ 987.8   
Fees
Realized Net
Performance       $ 156.2    $ 194.2     $ 75.8      $ 591.1      $ 549.9   
Fees
Investment        $ 8.4      $ (4.6   )   $ 14.0      $ 63.3       $ 86.5    
Income (Loss)
Distributable     $ 206.3    $ 243.8     $ 115.3     $ 747.8      $ 752.2   
Earnings
                                                                                        
                                                                                        
                                                                                        

Total Segment Information (Unaudited), cont
                                                                                         
                      Three Months Ended
                                                                                      Sept 30, 2012 vs.
                                                                                      Sept 30,       Jun 30,
                                                                                      2011           2012
                      Sept 30,     Dec 31,     Mar 31,     Jun 30,      Sept 30,       $            $     
                      2011         2011        2012        2012         2012
Economic Net          (Dollars in millions)
Income,
Total Segments
Revenues
Segment fee
revenues
Fund management       $ 234.4      $ 220.6     $ 225.4    $ 235.0      $ 233.9      $ (0.5   )     $ (1.1  )
fees
Portfolio
advisory fees,          7.5          5.7         8.0         7.0          4.6           (2.9   )       (2.4  )
net
Transaction            5.4        9.9       2.7       3.7        7.2         1.8          3.5   
fees, net
Total fee               247.3        236.2       236.1       245.7        245.7         (1.6   )       -
revenues
Performance
fees
Realized                387.4        414.6       281.8       110.3        276.4         (111.0 )       166.1
Unrealized             (894.7 )    (3.4  )    349.7     (311.1 )    49.0        943.7        360.1 
Total
performance             (507.3 )     411.2       631.5       (200.8 )     325.4         832.7          526.2
fees
Investment
income
Realized                13.0         17.2        2.1         4.0          4.6           (8.4   )       0.6
Unrealized             (17.6  )    0.4       21.2      10.0       3.8         21.4         (6.2  )
Total
investment              (4.6   )     17.6        23.3        14.0         8.4           13.0           (5.6  )
income
Interest and           1.4        0.6       2.6       2.5        4.4         3.0          1.9   
other income
Total revenues          (263.2 )     665.6       893.5       61.4         583.9         847.1          522.5
                                                                                                     
Expenses
Compensation
and benefits
Direct base             107.2        101.0       101.2       105.8        97.9          (9.3   )       (7.9  )
compensation
Indirect base           34.8         32.9        33.1        36.2         32.9          (1.9   )       (3.3  )
compensation
Equity-based            -            -           -           0.6          0.6           0.6            -
compensation
Performance fee
related
Realized                193.2        198.2       139.1       34.5         120.2         (73.0  )       85.7
Unrealized             (477.2 )    (9.8  )    157.6     (128.6 )    40.6        517.8        169.2 
Total
compensation            (142.0 )     322.3       431.0       48.5         292.2         434.2          243.7
and benefits
General,
administrative,
and other               55.0         76.3        60.6        64.0         68.5          13.5           4.5
indirect
expenses
Interest               15.1       12.8      9.8       6.1        4.7         (10.4  )      (1.4  )
expense
Total expenses         (71.9  )    411.4     501.4     118.6      365.4       437.3        246.8 
                                                                                                     
Economic Net          $ (191.3 )   $ 254.2    $ 392.1    $ (57.2  )   $ 218.5      $ 409.8       $ 275.7 
Income (Loss)
Fee Related           $ 36.6      $ 13.8     $ 34.0     $ 35.5      $ 45.5       $ 8.9         $ 10.0  
Earnings
Net Performance       $ (223.3 )   $ 222.8    $ 334.8    $ (106.7 )   $ 164.6      $ 387.9       $ 271.3 
Fees
Realized Net
Performance           $ 194.2     $ 216.4    $ 142.7    $ 75.8      $ 156.2      $ (38.0  )     $ 80.4  
Fees
Investment            $ (4.6   )   $ 17.6     $ 23.3     $ 14.0      $ 8.4        $ 13.0        $ (5.6  )
Income (Loss)
Distributable         $ 243.8     $ 247.4    $ 178.8    $ 115.3     $ 206.3      $ (37.5  )     $ 91.0  
Earnings

                                                                                       
                                                                                                  
Corporate Private Equity Segment Results (Unaudited)
                                                                                                  
                      Three Months Ended
                                                                                      Sept 30, 2012 vs.
                                                                                      Sept 30,    Jun 30,
                                                                                      2011        2012
                      Sept 30,     Dec 31,     Mar 31,     Jun 30,      Sept 30,       $         $     
                      2011         2011        2012        2012         2012
Corporate             (Dollars in millions)
Private Equity
                                                                                                  
Revenues
Segment fee
revenues
Fund management       $ 128.1      $ 123.6     $ 123.9    $ 124.0      $ 124.8       $ (3.3  )   $ 0.8
fees
Portfolio
advisory fees,          4.8          4.3         7.0         4.9          3.1           (1.7  )     (1.8  )
net
Transaction            3.8        8.3       1.6       1.6        6.2         2.4       4.6   
fees, net
Total fee               136.7        136.2       132.5       130.5        134.1         (2.6  )     3.6
revenues
Performance
fees
Realized                333.0        262.2       223.0       80.6         241.4         (91.6 )     160.8
Unrealized             (787.2 )    79.7      241.3     (269.7 )    72.8        860.0     342.5 
Total
performance             (454.2 )     341.9       464.3       (189.1 )     314.2         768.4       503.3
fees
Investment
income
Realized                8.1          8.1         0.8         1.5          (0.2  )       (8.3  )     (1.7  )
Unrealized             (14.8  )    5.9       14.5      3.7        (1.0  )      13.8      (4.7  )
Total
investment              (6.7   )     14.0        15.3        5.2          (1.2  )       5.5         (6.4  )
income
Interest and           0.3        1.1       1.4       1.6        3.4         3.1       1.8   
other income
Total revenues          (323.9 )     493.2       613.5       (51.8  )     450.5         774.4       502.3
                                                                                                  
Expenses
Compensation
and benefits
Direct base             62.8         63.9        55.3        54.8         56.2          (6.6  )     1.4
compensation
Indirect base           24.1         23.7        20.8        24.1         19.9          (4.2  )     (4.2  )
compensation
Equity-based            -            -           -           0.4          0.4           0.4         -
compensation
Performance fee
related
Realized                176.2        131.9       117.6       31.0         115.6         (60.6 )     84.6
Unrealized             (444.2 )    58.0      132.0     (140.3 )    39.2        483.4     179.5 
Total
compensation            (181.1 )     277.5       325.7       (30.0  )     231.3         412.4       261.3
and benefits
General,
administrative,
and other               32.4         46.5        38.0        39.2         39.5          7.1         0.3
indirect
expenses
Interest               9.8        7.5       5.9       3.5        2.5         (7.3  )    (1.0  )
expense
Total expenses         (138.9 )    331.5     369.6     12.7       273.3       412.2     260.6 
                                                                                                  
Economic Net          $ (185.0 )   $ 161.7    $ 243.9    $ (64.5  )   $ 177.2      $ 362.2    $ 241.7 
Income (Loss)
Fee Related           $ 7.9       $ (4.3  )   $ 13.9     $ 10.1      $ 19.0       $ 11.1     $ 8.9   
Earnings
Net Performance       $ (186.2 )   $ 152.0    $ 214.7    $ (79.8  )   $ 159.4      $ 345.6    $ 239.2 
Fees
Realized Net
Performance           $ 156.8     $ 130.3    $ 105.4    $ 49.6      $ 125.8      $ (31.0 )   $ 76.2  
Fees
Investment            $ (6.7   )   $ 14.0     $ 15.3     $ 5.2       $ (1.2  )     $ 5.5      $ (6.4  )
Income (Loss)
Distributable         $ 172.8     $ 134.1    $ 120.1    $ 61.2      $ 144.6      $ (28.2 )   $ 83.4  
Earnings

                                                                                   
                                                                                              
Global Market Strategies Segment Results (Unaudited)
                      
                      Three Months Ended
                                                                                   Sept 30, 2012 vs.
                                                                                   Sept 30,   Jun 30,
                                                                                   2011       2012
                      Sept 30,    Dec 31,      Mar 31,     Jun 30,    Sept 30,      $        $    
                      2011        2011         2012        2012       2012
Global Market         (Dollars in millions)
Strategies
                                                                                              
Revenues
Segment fee
revenues
Fund management       $ 50.4      $ 44.9       $ 48.6     $ 59.5    $ 58.2       $ 7.8      $ (1.3 )
fees
Portfolio
advisory fees,          0.8         0.8          0.7         0.5        0.8          -          0.3
net
Transaction            -         -          -         -        0.3        0.3      0.3  
fees, net
Total fee               51.2        45.7         49.3        60.0       59.3         8.1        (0.7 )
revenues
Performance
fees
Realized                6.1         108.5        32.4        1.3        0.9          (5.2 )     (0.4 )
Unrealized             (6.8  )    (101.0 )    12.7      4.0      5.7        12.5     1.7  
Total
performance             (0.7  )     7.5          45.1        5.3        6.6          7.3        1.3
fees
Investment
income
Realized                3.1         9.3          1.3         2.8        4.6          1.5        1.8
Unrealized             (2.1  )    (4.7   )    3.7       4.8      0.8        2.9      (4.0 )
Total
investment              1.0         4.6          5.0         7.6        5.4          4.4        (2.2 )
income
Interest and           1.4       (0.4   )    0.6       0.4      0.5        (0.9 )    0.1  
other income
Total revenues          52.9        57.4         100.0       73.3       71.8         18.9       (1.5 )
                                                                                              
Expenses
Compensation
and benefits
Direct base             16.9        13.9         19.7        25.2       17.4         0.5        (7.8 )
compensation
Indirect base           4.0         3.9          4.9         4.5        5.9          1.9        1.4
compensation
Equity-based            -           -            -           0.1        -            -          (0.1 )
compensation
Performance fee
related
Realized                (0.7  )     41.8         17.8        0.7        0.2          0.9        (0.5 )
Unrealized             (10.7 )    (37.5  )    9.7       0.2      (1.8 )      8.9      (2.0 )
Total
compensation            9.5         22.1         52.1        30.7       21.7         12.2       (9.0 )
and benefits
General,
administrative,
and other               6.8         10.1         8.1         9.7        12.8         6.0        3.1
indirect
expenses
Interest               2.4       3.0        1.7       0.9      1.3        (1.1 )    0.4  
expense
Total expenses         18.7      35.2       61.9      41.3     35.8       17.1     (5.5 )
                                                                                              
Economic Net          $ 34.2     $ 22.2      $ 38.1     $ 32.0    $ 36.0      $ 1.8     $ 4.0  
Income
Fee Related           $ 22.5     $ 14.4      $ 15.5     $ 20.0    $ 22.4      $ (0.1 )   $ 2.4  
Earnings
Net Performance       $ 10.7     $ 3.2       $ 17.6     $ 4.4     $ 8.2       $ (2.5 )   $ 3.8  
Fees
Realized Net
Performance           $ 6.8      $ 66.7      $ 14.6     $ 0.6     $ 0.7       $ (6.1 )   $ 0.1  
Fees
Investment            $ 1.0      $ 4.6       $ 5.0      $ 7.6     $ 5.4       $ 4.4     $ (2.2 )
Income
Distributable         $ 32.4     $ 90.4      $ 31.4     $ 23.4    $ 27.7      $ (4.7 )   $ 4.3  
Earnings
                                                                                                -

                                                                                   
                                                                                                      
Real Assets Segment Results (Unaudited)
                                                                                                      
                    Three Months Ended
                                                                                  Sept 30, 2012 vs.
                                                                                  Sept 30,   Jun 30,
                                                                                  2011       2012
                    Sept 30,    Dec 31,     Mar 31,     Jun 30,     Sept 30,
                                2011        2012        2012        2012           $        $    
                    2011
Real Assets         (Dollars in millions)
                                                                                                      
Revenues
Segment fee
revenues
Fund management     $ 37.2      $ 35.8      $ 36.6      $ 34.1      $ 34.4        $ (2.8 )   $ 0.3
fees
Portfolio
advisory fees,        1.9         0.6         0.3         1.6         0.7           (1.2 )     (0.9 )
net
Transaction          1.6       1.6       1.1       2.1       0.7         (0.9 )    (1.4 )
fees, net
Total fee             40.7        38.0        38.0        37.8        35.8          (4.9 )     (2.0 )
revenues
Performance
fees
Realized              29.1        16.9        23.2        27.0        31.9          2.8        4.9
Unrealized           (78.2 )    50.8      82.4      (56.0 )    (27.7 )      50.5     28.3 
Total
performance           (49.1 )     67.7        105.6       (29.0 )     4.2           53.3       33.2
fees
Investment
income
Realized              1.8         (0.2  )     -           (0.3  )     0.2           (1.6 )     0.5
Unrealized           (0.7  )    (0.8  )    3.0       1.5       4.0         4.7      2.5  
Total
investment            1.1         (1.0  )     3.0         1.2         4.2           3.1        3.0
income
Interest and         (0.5  )    (0.2  )    0.4       0.4       0.4         0.9      -    
other income
Total revenues        (7.8  )     104.5       147.0       10.4        44.6          52.4       34.2
                                                                                                      
Expenses
Compensation
and benefits
Direct base           19.4        17.0        18.2        16.9        16.1          (3.3 )     (0.8 )
compensation
Indirect base         6.7         5.3         6.4         5.6         5.7           (1.0 )     0.1
compensation
Equity-based          -           -           -           0.1         0.2           0.2        0.1
compensation
Performance fee
related
Realized              2.4         0.3         0.9         1.5         2.5           0.1        1.0
Unrealized           (4.3  )    0.5       5.9       2.1       5.3         9.6      3.2  
Total
compensation          24.2        23.1        31.4        26.2        29.8          5.6        3.6
and benefits
General,
administrative,
and other             12.8        15.2        12.7        11.8        12.5          (0.3 )     0.7
indirect
expenses
Interest             2.9       2.3       1.9       1.1       0.7         (2.2 )    (0.4 )
expense
Total expenses       39.9      40.6      46.0      39.1      43.0        3.1      3.9  
                                                                                                      
Economic Net        $ (47.7 )   $ 63.9     $ 101.0    $ (28.7 )   $ 1.6        $ 49.3    $ 30.3 
Income (Loss)
Fee Related         $ (1.6  )   $ (2.0  )   $ (0.8  )   $ 2.7      $ 1.0        $ 2.6     $ (1.7 )
Earnings
Net Performance     $ (47.2 )   $ 66.9     $ 98.8     $ (32.6 )   $ (3.6  )     $ 43.6    $ 29.0 
Fees
Realized Net
Performance         $ 26.7     $ 16.6     $ 22.3     $ 25.5     $ 29.4       $ 2.7     $ 3.9  
Fees
Investment          $ 1.1      $ (1.0  )   $ 3.0      $ 1.2      $ 4.2        $ 3.1     $ 3.0  
Income (Loss)
Distributable       $ 26.9     $ 14.4     $ 21.5     $ 27.9     $ 30.6       $ 3.7     $ 2.7  
Earnings

                                                                              
                                                                                      
Fund of Funds Solutions Segment Results (Unaudited)
                                                                                      
               Three Months Ended
                                                                          Sept 30, 2012 vs.
                                                                          Sept 30,    Jun 30,
                                                                          2011        2012
               Sept 30,    Dec 31,     Mar 31,      Jun 30,    Sept 30,
               2011        2011        2012         2012                   $         $     
                                                               2012
Fund of
Funds          (Dollars in millions)
Solutions
                                                                                      
Revenues
Segment fee
revenues
Fund
management     $ 18.7      $ 16.3      $ 16.3      $ 17.4    $ 16.5     $ (2.2  )   $ (0.9  )
fees
Portfolio
advisory         -           -           -            -          -          -           -
fees, net
Transaction     -         -         -          -        -        -         -     
fees, net
Total fee        18.7        16.3        16.3         17.4       16.5       (2.2  )     (0.9  )
revenues
Performance
fees
Realized         19.2        27.0        3.2          1.4        2.2        (17.0 )     0.8
Unrealized      (22.5 )    (32.9 )    13.3       10.6     (1.8 )    20.7      (12.4 )
Total
performance      (3.3  )     (5.9  )     16.5         12.0       0.4        3.7         (11.6 )
fees
Investment
income
Realized         -           -           -            -          -          -           -
Unrealized      -         -         -          -        -        -         -     
Total
investment       -           -           -            -          -          -           -
income
Interest and    0.2       0.1       0.2        0.1      0.1      (0.1  )    -     
other income
Total            15.6        10.5        33.0         29.5       17.0       1.4         (12.5 )
revenues
                                                                                      
Expenses
Compensation
and benefits
                                         8.0
Direct base      8.1         6.2         *Story
compensation                             too
                                         large*

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