The Carlyle Group — Investor Profile: Strategy, Performance (IRR, MOIC), and Portfolio Fit

Executive summary: firm identity, positioning, and strategic priorities

The Carlyle Group is a global alternatives manager spanning Global Private Equity, Global Credit, and Global Investment Solutions, competing at scale with multi-strategy peers (source: Carlyle Form 10-K FY2023). As of FY2023, Carlyle reported $426 billion in AUM across its three segments (source: Carlyle Form 10-K FY2023). The firm managed 300+ active investment vehicles and employed approximately 2,200 people across 28 offices worldwide; it is headquartered in Washington, DC, with major offices in New York, London, and Hong Kong (sources: Carlyle Form 10-K FY2023; Carlyle company website). FY2023 GAAP revenue was about $3.3 billion and GAAP net income attributable to The Carlyle Group Inc. was about $1.0 billion (source: Carlyle Form 10-K FY2023).

• Strategic priorities: scale Global Credit and Global Investment Solutions, raise flagship sector-focused buyout funds (technology, healthcare, aerospace/defense), expand infrastructure and secondaries, grow private wealth/retail distribution, and increase fee-related earnings and permanent capital (sources: Carlyle Investor Day 2023; Carlyle Form 10-K FY2023).
• Evolution (last 5–10 years): diversified from a primarily U.S./energy-skewed PE base toward larger Credit and Solutions platforms, added evergreen/perpetual products, and prioritized fee-related earnings stability; leadership transition in 2023 reinforced focus on scalable cross-platform growth (sources: Carlyle Investor Day 2022–2023; Carlyle Form 10-K FY2023).

Scale snapshot (most recent filed fiscal year)

AUM by strategy (FY2023)

Strategic priorities timeline (last 5–10 years)

**Thesis: Carlyle prioritizes large, sector-focused buyouts and structured equity in technology, healthcare, and aerospace/defense—while scaling Credit and secondaries—to deploy at scale, deepen fee-related earnings, and compound durable, multi-strategy client relationships.**

For entrepreneurs, scale confers sector expertise, global sourcing, and capital markets access, but may introduce governance layers, pacing, and target-size thresholds that can lengthen decision cycles; fit is strongest for companies aligned with its sector playbooks and platform synergies (sources: Carlyle Form 10-K FY2023 risk factors; Carlyle Investor Day 2023).

Investment thesis and strategic focus

Carlyle’s investment thesis centers on sector specialization, operational value creation, and disciplined underwriting across buyout, growth, real assets, credit, and secondaries—with mid-teens net IRR and 1.7–2.0x MOIC targets in core equity strategies—benchmarked against Preqin, PitchBook, and Cliffwater data. This section maps thesis-to-execution by strategy, quantifies target and historical performance, and outlines implications for founders. SEO: Carlyle investment thesis buyout growth sectors IRR MOIC.

Carlyle positions itself as a sector-specialist investor leveraging global scale and operating expertise to drive value through operational improvement, buy-and-build M&A, and cross-border expansion while maintaining disciplined entry valuations and prudent capital structures. In 2023, the firm reweighted U.S. buyout exposure away from consumer/media/retail toward financial services, healthcare, technology/tech-enabled services, industrials, and government services to align with more resilient profit pools and Carlyle’s competitive advantages (Carlyle Investor Day 2023; FY2023 Form 10-K).

The image below highlights dealmaking momentum in a tight capital markets backdrop, underscoring why sponsor differentiation increasingly hinges on sector depth and repeatable value-creation playbooks.

In this context, Carlyle’s strategy-level targets and historical performance should help founders calibrate expectations on partnership style, hold periods, return thresholds, and likely exit paths.

Carlyle targets and performance vs benchmarks (illustrative ranges; sources noted)

Carlyle’s stated investment thesis

Carlyle articulates a repeatable model: focus on advantaged sectors where the firm has deep domain expertise; acquire high-quality, cash-generative assets at disciplined valuations; deploy an operating toolkit to accelerate earnings growth; and use global reach to expand channels, talent, and M&A. In 2023 the firm sharpened this sector mix, scaling resources in financial services, healthcare, technology/tech-enabled services, industrials, and government services, while reducing new exposure to consumer/media/retail (Carlyle Investor Day 2023).

• Sector specialization: Dedicated teams in healthcare, financial services, aerospace/defense and government services (ADGS), industrials, and tech-enabled services.
• Operational value creation: Pricing, procurement, commercial excellence, digital enablement, supply chain, and talent upgrades via in-house operating executives.
• Buy-and-build M&A: Bolt-ons to expand product, geography, and capabilities; platform roll-ups in fragmented niches.
• Global network: Cross-border expansion leveraging Asia, Europe, and North America footprints.
• Disciplined underwriting: Emphasis on cash conversion, downside cases, and prudent leverage; preference for resilient end-markets and business models with pricing power.

Buyout (corporate private equity)

Focus: control or joint-control investments in mid-to-large cap companies across healthcare, financial services, industrials, technology/tech-enabled services, and ADGS. Reduced emphasis on consumer-facing cyclicals since 2023 (Carlyle Investor Day 2023).

• Target verticals: healthcare providers and services, pharma services, payments and insurance services, specialty finance, aerospace and defense primes/subsystems, government IT/services, industrial technology, and B2B software-enabled services.
• Value-creation levers: operational improvement (pricing, SG&A efficiency), buy-and-build roll-ups, digital transformation, and international expansion.
• Deal economics: target net IRR 15–17%, target MOIC ≈2.0x, typical hold 4–6 years; entry EV/EBITDA 9–12x with carve-outs sometimes below this range (PitchBook 2023 US PE Breakdown shows median entry compressed toward ~10–11x by 2023).
• Exit channels: strategic sale and sponsor-to-sponsor dominate; selective IPOs when growth and scale support public markets.
• Benchmarking: Preqin reports global buyout median net IRR ~14–15% for 2012–2019 vintages; Carlyle’s pooled buyout performance over similar vintages sits in the mid-teens per Preqin/PitchBook composites, broadly in line to modestly above median depending on region and vintage.

Growth equity

Focus: significant minority or control investments in scalable, profitable growth companies, especially tech-enabled services, vertical software, healthcare IT, fintech, and industrial tech.

• Value-creation levers: go-to-market acceleration, product expansion, pricing, talent professionalization, and bolt-on M&A.
• Deal economics: target net IRR 14–16%, target MOIC 1.8–2.0x, typical hold 3–5 years; entry multiples vary by profitability, often 10–16x EV/EBITDA for profitable growth.
• Benchmarking: Preqin shows growth equity median net IRR ~13–15% for 2012–2019 vintages; Carlyle’s growth funds generally target low-to-mid teens net, consistent with or slightly above medians depending on sector mix (Preqin, PitchBook 2023).

Real assets (infrastructure and real estate adjacencies)

Focus: core-plus infrastructure, energy transition, and specialized real assets with contracted or regulated cash flows and opportunities to professionalize operations.

• Value-creation levers: operational optimization, capex prioritization, platform M&A, and balance sheet optimization.
• Deal economics: target net IRR 10–13%, MOIC 1.6–1.8x, typical hold 5–7 years; entry multiples for core-plus infra often 10–13x EV/EBITDA reflecting durability of cash flows.
• Benchmarking: Preqin infra median net IRR ~9–11% for 2012–2018 vintages; targets position Carlyle to outperform core medians by focusing on core-plus and operational uplift (Preqin 2023).

Global Credit

Focus: scaled direct lending to upper-middle-market borrowers, alongside opportunistic and special-situations credit strategies that target complex or transitional capital needs.

• Direct lending: first-lien senior secured, unitranche, and club deals; target net IRR 9–11%, MOIC 1.3–1.5x, hold 3–5 years. Benchmark: Cliffwater Direct Lending Index annualized net ~9–10% since inception (Cliffwater 2024).
• Opportunistic credit: flexible capital for dislocation, rescue, and structured solutions; target net IRR 13–16%, MOIC 1.5–1.7x, hold 2–4 years. Benchmark: Preqin private debt opportunistic median ~11–13% (Preqin 2023).
• Risk management: strong emphasis on seniority, covenants, and asset coverage in direct lending; active workout capabilities in opportunistic credit.

Secondaries (AlpInvest)

Focus: LP-led and GP-led (continuation vehicles) transactions, co-investments, and portfolio solutions that provide earlier liquidity and diversified exposures.

• Deal dynamics: purchase diversified portfolios at discounts to NAV or structured transactions around high-conviction assets.
• Economics: target net IRR 12–15%, MOIC 1.5–1.7x, hold 2–4 years.
• Benchmarking: Preqin secondaries median ~12–14% net IRR; Carlyle’s targets are aligned with or slightly above market medians for GP-led focused strategies (Preqin 2023).

Benchmark comparisons and fund performance evidence

Multiple third-party datasets corroborate the ranges cited. While fund-by-fund outcomes vary, the pooled and composite figures below summarize how Carlyle’s targets compare to market medians.

• Preqin Global Private Capital Report 2023: global buyout median net IRR ~14–15% and MOIC ~1.8x for 2012–2019 vintages; growth equity median ~13–15%.
• PitchBook US PE Breakdown 2023: median US buyout entry EV/EBITDA compressed to roughly 10–11x by 2023 from 11–12x in 2021, supporting tighter underwriting on new vintages.
• Cliffwater Direct Lending Index (Q2 2024): since-inception annualized return ~9–10%, consistent with mid-to-high single-digit to low double-digit net targets for senior private credit.
• Carlyle disclosures (Investor Day 2023; FY2023 10-K): emphasis on sector reweighting and operating toolkit as primary drivers of value creation, with strategy-level targets: buyout mid-teens net IRR and ≈2.0x MOIC; growth low-to-mid teens; credit 9–11% direct lending and low-to-mid teens opportunistic; infrastructure 10–13%; secondaries low-to-mid teens.

Implications for entrepreneurs and founders

For management teams evaluating Carlyle as a partner, the key is alignment between sector, growth profile, and the value-creation levers required to reach the next stage.

• Buyout fit: resilient, EBITDA-generative businesses in priority sectors with clear operational and M&A upside; expect 4–6 year holds and rigorous KPI governance.
• Growth equity fit: profitable growth with strong unit economics; willingness to professionalize GTM and pursue bolt-ons; 3–5 year holds with board-level support.
• Credit fit: founders seeking non-dilutive growth or acquisition financing; direct lending offers speed and certainty at 9–11% net investor return targets.
• Real assets fit: infrastructure-like cash flows where operational excellence can lift returns into 10–13% net range.
• Secondaries fit: GP-led solutions for concentrated assets or LP-led liquidity, typically 2–4 year duration and low-to-mid teens return targets.
• Return expectations: entrepreneurs should expect deal underwriting to target mid-teens equity IRRs in buyout/growth and disciplined leverage calibrated to resilient cash generation, with exit paths favoring strategic and sponsor buyers unless scale and growth support IPOs.

Portfolio composition and sector expertise

Technical analysis of Carlyle portfolio composition, sector exposure, and AUM breakdown with citations. Focus: Carlyle portfolio composition sector exposure AUM breakdown; includes strategy percentages (where disclosed), sector and geographic splits, concentration considerations, and a table of 10 large holdings with investment details.

This section synthesizes publicly disclosed data from Carlyle’s fact sheets, annual and quarterly reports, portfolio pages, and third-party databases (PitchBook/Preqin/Bloomberg where cited) to quantify portfolio composition by strategy, sector, geography, and vintage, and to map areas of sector expertise. Where Carlyle does not disclose a firmwide metric (for example, capital-weighted sector splits inside Corporate Private Equity), we clearly label proxies and provide the source rationale.

Private credit headlines and bank volatility can shape fundraising and deployment pacing across strategies. The image below captures recent media sentiment around private credit’s risk-reward and liquidity narratives, which indirectly informs Carlyle’s credit and hybrid allocations.

These dynamics underscore why a balanced mix across Corporate Private Equity, Real Assets, and Credit matters for concentration and liquidity risk management across cycles.

• Use a pie chart to show AUM by strategy (Global Private Equity vs. Global Credit vs. Investment Solutions), with labels and footnotes indicating the as-of date and source.
• Use a stacked bar to display sector exposure by region (North America, Europe, APAC), denoting whether figures are capital-weighted or deal-count proxies.
• Use a horizontal bar for top 10 sectors by exposure, sorted descending; annotate any non-disclosed elements as N/D.
• Use a table heatmap for vintage distribution (committed capital by vintage year), if available from fund fact sheets; otherwise show investment count by vintage as a proxy.

Firm-level investment portfolio data and geography split (selected disclosures)

AUM by strategy: percentages and positioning

Carlyle reports strategy AUM across Global Private Equity, Global Credit, and Investment Solutions. As of year-end 2024, Corporate Private Equity AUM was $147.2b, with Real Estate at $40.8b and Aviation at $12.6b within specialized platforms; Infrastructure/Natural Resources funds collectively manage $8.5b+ in disclosed active strategies (Carlyle FY2024 fact sheet; Carlyle Aviation Partners YE2024 overview). While Carlyle’s public filings break out segment AUM, firmwide sector percentages within Corporate Private Equity are not comprehensively disclosed.

For percentage by strategy, Carlyle’s annual and quarterly reports show a diversified mix across the three primary segments. Public disclosures indicate a roughly balanced split between Global Private Equity, Global Credit, and Investment Solutions in recent periods; readers should reference the most recent 10-K and investor presentation for the exact percentage splits as of the latest quarter (Carlyle 2023 Form 10-K; Carlyle 2024 investor materials).

• Corporate Private Equity: disclosed AUM $147.2b (Dec 31, 2024) — Carlyle FY2024 fact sheet.
• Real Estate (subset platform within the firm): $40.8b (Dec 31, 2024) — Carlyle FY2024 fact sheet.
• Aviation: $12.6b (Dec 31, 2024) — Carlyle Aviation Partners YE2024 overview.
• Infrastructure & Natural Resources: $8.5b+ active strategies — Carlyle fund pages and press releases.

Geographic exposure and implications for entrepreneur fit

Carlyle’s portfolio is globally diversified. Firm-level disclosures indicate a majority weighting to North America, followed by Europe, then APAC, with Emerging Markets represented primarily through Asia strategies and select global mandates (Carlyle 2023 Form 10-K geographic disclosure). Indicative split: North America ~60%, Europe ~25%, APAC ~15%.

Entrepreneur fit: North America-heavy exposure favors U.S. scaling playbooks (M&A integration, public-market readiness), while Europe and APAC teams emphasize cross-border growth, localization, and regulatory navigation, particularly in healthcare, industrials, and tech-enabled services.

• North America: scale-up and carve-out expertise in aerospace and defense, healthcare services, software and tech-enabled services (Carlyle portfolio pages; sector team disclosures).
• Europe: industrial technology, specialty chemicals, and advanced manufacturing (Nouryon, Flender) (AkzoNobel 2018 release; Siemens 2020 release).
• APAC: consumer, healthcare, and services platforms including strategic partnerships (McDonald’s China) (McDonald’s 2017 partnership announcement).

Sector exposure: top 10 areas and quantification approach

Carlyle highlights dedicated sector verticals in Corporate Private Equity: Aerospace and Defense/Government Services, Healthcare, Technology/Software and Tech-Enabled Services, Financial Services, Consumer/Retail, Industrials and Transportation, Energy and Natural Resources, Real Estate, and Specialized platforms like Aviation (Carlyle portfolio and sector pages). Because the firm does not publish a consolidated, capital-weighted sector percentage across all private equity vehicles, we proxy sector mix using third-party investment count distributions and disclosed large positions.

Proxy (by deal count, not capital): PitchBook indicates B2B/Industrials, Healthcare, and IT/Software as the three largest categories for Carlyle private equity transactions over the last decade, followed by Financial Services and Consumer. Use this as an indicative ranking; capital weights can differ materially on megadeals (PitchBook firm profile on Carlyle, accessed 2024).

1. Aerospace and Defense/Government Services — supported by StandardAero, ManTech; strong operating networks (Carlyle press releases 2018, 2022).
2. Healthcare (services, diagnostics, CROs) — PPD, Ortho Clinical Diagnostics (H&F/Carlyle 2017; J&J/Carlyle 2014; QuidelOrtho 2022).
3. Technology and Tech-Enabled Services — Syniverse and enterprise communications/software (Carlyle 2010).
4. Specialty Chemicals/Industrial Tech — Nouryon, Atotech, Flender (AkzoNobel 2018; Total/Carlyle 2016; Siemens 2020).
5. Financial Services — portfolio in payments/fintech and specialty finance; presence varies by vintage (PitchBook, 2024).
6. Consumer and Services — McDonald’s China partnership and multi-unit platforms (McDonald’s 2017).
7. Transportation and Logistics — Aviation platform and transportation services (Carlyle Aviation Partners overview).
8. Energy and Natural Resources — selective upstream/midstream and energy transition infrastructure (Carlyle fund pages).
9. Real Estate — via Carlyle Realty Partners and regional programs (Carlyle FY2024 fact sheet).
10. Telecom/Media — mobile infrastructure and communications enablement (Syniverse) (Carlyle 2010).

Concentration, portfolio company count, average investment size, and vintages

Firmwide concentration: Carlyle does not disclose a consolidated top-10 holdings share of NAV across all vehicles. Fund-level LP reports typically show top-10 positions representing roughly 25–40% of fair value for flagship buyout funds, depending on vintage and deployment pacing; however, these figures are not public and vary by fund. Treat any firmwide roll-up as non-disclosed (N/D) (Carlyle fund reporting conventions; 10-K).

Portfolio company count and average deal size: Carlyle reports hundreds of active portfolio companies across Corporate Private Equity and Real Assets globally; average equity check varies by fund size and region (from mid-market growth to large-cap buyout). For specific fund vintages (e.g., Carlyle Partners VII/VIII, Europe Partners funds, Asia Partners funds), consult fund fact sheets for deployment pacing and median/mean investment size (Carlyle fund fact sheets, 2023–2024).

Vintage distribution: Deployment is diversified across multiple vintages per region. Without fund-by-fund line items, a consolidated vintage distribution is not public; use fund family fact sheets to reconstruct a stacked bar by vintage year if needed for diligence (Carlyle investor materials, 2023–2024).

Top 10 large holdings: investment year, entry valuation, and status

The following table lists 10 large, well-documented Carlyle investments with entry valuation and current status based on press releases and issuer announcements. Amounts reflect enterprise value at signing/closing as disclosed.

Ten large Carlyle investments with entry valuation and current status

Sector expertise map: strengths and gaps

Strengths: Carlyle shows deep benches in Aerospace and Defense/Government Services (StandardAero, ManTech), Healthcare (CROs and diagnostics such as PPD and Ortho Clinical Diagnostics), and Industrial Technology/Specialty Chemicals (Nouryon, Atotech, Flender). These areas are supported by dedicated sector investment teams and operating executive networks that focus on complex carve-outs, regulated end-markets, and global supply chains (Carlyle sector pages; deal press releases cited above).

Tech-enabled services and communications are a persistent theme via platforms like Syniverse and software-enabled business services, often paired with operational value creation and pricing initiatives (Carlyle portfolio pages; PitchBook profile). Real Assets capabilities include Real Estate and Aviation, giving the firm specialized asset-backed expertise and cycle diversification (Carlyle FY2024 fact sheet; Carlyle Aviation Partners).

Gaps/underweights: Public disclosures suggest less emphasis on early-stage venture in pure-play software and limited exposure to hyper-cyclical upstream energy compared to midstream/infrastructure and services. As always, these observations are relative to Carlyle’s global peers and depend on fund mandates and vintage (Carlyle fund pages; PitchBook/Preqin comparative data).

• Deep bench evidence: repeat carve-outs in industrial tech and chemicals (Nouryon, Atotech, Flender) and defense/gov services (ManTech) with dedicated operating advisors (press releases and portfolio pages).
• Healthcare scale transactions across services and diagnostics (PPD, Ortho), indicating team capacity for FDA/EMA-regulated diligence and M&A integration.
• Asset-backed platforms (Aviation) broaden sourcing and exit optionality across cycles (Carlyle Aviation Partners overview).

Answering the key questions

How concentrated is Carlyle’s portfolio? Firmwide top-10 NAV concentration is not publicly disclosed. Large single-asset exposures exist (e.g., Nouryon, StandardAero, ManTech), but diversification across strategies, geographies, and sectors reduces single-name risk; flagship buyout funds typically show 25–40% in top-10 positions, but this varies by fund and is not a firmwide disclosure (Carlyle 10-K; fund reporting conventions).

Which sectors dominate? By disclosed large deals and deal-count proxies, Aerospace and Defense/Government Services, Healthcare, Industrial Tech/Specialty Chemicals, and Tech-Enabled Services are leading exposures, with Financial Services and Consumer as secondary concentrations (Carlyle portfolio pages; PitchBook firm profile, 2024).

How does geographic exposure affect entrepreneur fit? A North America-led AUM mix favors U.S. scaling and public-market readiness; European industrials and chemicals expertise supports carve-outs and complex transformations; APAC exposure aligns with consumer and services growth and joint-venture models (Carlyle 2023 Form 10-K; McDonald’s 2017 partnership).

Methodology and sourcing

Primary sources: Carlyle FY2024 fact sheet (CPE, Real Estate, Aviation figures), Carlyle 2023 Form 10-K (segment and geographic disclosures), Carlyle fund and sector pages. Deal-specific citations: AkzoNobel 2018 sale to Carlyle/GIC (Nouryon), Siemens 2020 sale of Flender, Total/Carlyle 2016 Atotech acquisition and MKS 2022 exit, J&J/Carlyle 2014 Ortho and QuidelOrtho 2022, H&F and Carlyle 2017 PPD and Thermo Fisher 2021 exit, GM/Carlyle/Onex 2007 Allison, Carlyle 2018 StandardAero acquisition, Carlyle 2022 ManTech, McDonald’s 2017 China partnership.

Secondary sources: PitchBook firm profile on Carlyle for deal-count sector mix; Preqin/Bloomberg for cross-checks where cited in narrative. All percentages and figures are as of the stated dates; users should reconcile with the latest 10-K/10-Q and investor presentations for updates.

Investment criteria: stage, check size, geography, deal types

Objective guide to Carlyle investment criteria by strategy, including numeric thresholds for company size, check sizes, ownership, deal types, leverage and geography, with example deals and sources. SEO: Carlyle investment criteria check size geography growth equity buyout thresholds.

Use this guide to quickly assess whether your company fits Carlyle’s investment criteria by strategy. It summarizes typical equity check sizes, revenue and EBITDA thresholds, ownership targets, preferred deal types, use of leverage and expected timelines, supported with public deal examples and sources.

News context: The following image highlights an active Asia consumer transaction landscape where large sponsors and strategics continue to reshape footprints in China—a relevant backdrop for Carlyle’s selective approach to Asian consumer and services deals.

Carlyle has executed both control and minority deals across the U.S., Europe and Asia. Examples in China include its stake in the McDonald’s China partnership alongside CITIC (2017), illustrating willingness to pursue joint ventures and carve-outs when the strategic fit and governance are clear.

At-a-glance criteria by strategy (indicative, based on public Carlyle disclosures and deal announcements)

Illustrative check-size brackets with example Carlyle deals and sources

How leverage and structures differ by strategy and vintage

Quick fit checklist for entrepreneurs

• Revenue: Buyout targets typically $200m–$300m+; Growth equity targets $20m–$200m.
• EBITDA: Buyout targets $30m–$50m+; Growth equity can be break-even to $30m with clear path.
• Ownership: Buyout prefers majority/control; Growth equity is minority (10–49%) with governance.
• Check size: Buyout $200m–$2.5b+ (by region); Growth $20m–$200m.
• Deal type: Control buyouts, carve-outs, take-privates (Buyout); minority/non-control growth and structured rounds (Growth).
• Geography: Strong focus on U.S./Canada and Europe; active in Japan/India/SE Asia; selective in China.
• Margins and growth: EBITDA margins 10–25%+ and/or 20–40% CAGR for growth equity.
• Speed: Clean diligence and audited financials can close growth rounds in 6–12 weeks; buyouts typically 8–16 weeks.
• Leverage tolerance: Buyouts under current conditions often 4.0x–5.5x net debt/EBITDA; growth rounds favor low leverage.

U.S. Buyout (Carlyle Partners) — precise criteria and examples

Target profile: established companies with $300m+ revenue and $50m+ EBITDA, margins typically 15%+, EV $1b–$10b+, equity checks $500m–$2.5b, majority/control ownership. Preferred deal types include control buyouts, corporate carve-outs, and public-to-private transactions.

Illustrative deals with sources: ManTech ($4.2b take-private; Carlyle PR, May 2022), Ortho-Clinical Diagnostics ($4.15b carve-out from J&J; J&J PR, Jan 2014), Axalta (DuPont Performance Coatings) $4.9b carve-out; DuPont PR Aug 2012/closing 2013. Leverage has moderated since 2022 given higher rates.

• Ownership: Control preferred.
• Check size: $500m–$2.5b.
• Financials: $300m+ revenue; $50m+ EBITDA; 15%+ margins.
• Leverage: Typically 4.0x–6.0x net debt/EBITDA subject to market conditions.
• Speed: 8–16 weeks plus any regulatory approvals.

Europe Buyout (Carlyle Europe Partners) — precise criteria and examples

Target profile: revenue $200m+, EBITDA $30m+, margins 10–25%, EV $500m–$5b, equity checks $200m–$1.0b, majority control. Focus areas include corporate carve-outs, founder succession, and buy-and-build.

Illustrative deals with sources: Flender (Siemens carve-out; €2.025b EV; Siemens/Carlyle PR Oct 2020), Dainese (control; €630m EV; Carlyle PR Mar 2022).

• Ownership: Control.
• Check size: $200m–$1.0b.
• Financials: $200m+ revenue; $30m+ EBITDA.
• Leverage: 3.5x–5.5x net debt/EBITDA.
• Speed: 10–18 weeks; carve-outs can run longer for TSA setup.

Asia Buyout and Partnerships (Carlyle Asia Partners) — precise criteria and examples

Target profile: revenue $100m+, EBITDA $20m+, EV $500m–$5b, equity checks $200m–$1.0b. Ownership can be control or significant minority with governance rights. Deal types include buyouts, joint ventures, and carve-outs.

Illustrative deals with sources: McDonald’s China strategic partnership (total deal value $2.1b; McDonald’s/CITIC/Carlyle PR Jan 2017), various Japan/India control and partnership deals supported by the $6.6b Carlyle Asia Partners V fund (Carlyle fund close announcement, 2021).

• Ownership: Control or significant minority with board rights.
• Check size: $200m–$1.0b.
• Financials: $100m+ revenue; $20m+ EBITDA.
• Leverage: 3.0x–5.0x; consider FX and regulatory approvals.
• Speed: 12–20+ weeks depending on approvals.

Global Growth (minority and non-control) — precise criteria and examples

Target profile: $20m–$200m revenue, high gross margins and 20–40% CAGR, equity checks $20m–$200m, typically minority 10–49% with board rights. EBITDA may be break-even to $30m or have a credible path to profitability within 12–18 months. Capital is used for product, go-to-market and M&A.

Illustrative deals with sources: YipitData ($475m growth investment led by Carlyle; Carlyle PR Dec 2021), Pharmapacks ($250m growth investment; Apr 2020), Supreme (earlier-stage growth partnership relative to mega buyouts; $500m at $1b valuation; Carlyle PR Oct 2017).

• Ownership: Minority (10–49%) with governance protections.
• Check size: $20m–$200m typical.
• Financials: $20m–$200m revenue; strong growth (20–40% CAGR).
• Leverage: 0–2.0x; preference for minimal leverage.
• Speed: 6–12 weeks with clean data room and audited or PCAOB-review financials.

Entrepreneur-facing Q&A

• Is my company too small? For control buyouts, EBITDA below $20m is generally too small. For growth equity, $20m+ revenue with 20%+ CAGR is a more typical starting point.
• Is my company too big? Carlyle has executed $1.5b–$5b+ EV deals and can syndicate larger transactions; size alone rarely disqualifies if governance and returns fit.
• Will Carlyle pursue majority or minority? Majority/control in buyouts; minority in Global Growth with robust governance rights.
• How fast can Carlyle close? Minority growth rounds: often 6–12 weeks. Buyouts: plan for 8–16 weeks; carve-outs and take-privates can extend to 3–6 months including regulatory.
• What geographies does Carlyle prioritize? Highest activity in U.S. and Europe; active in Japan/India/SE Asia; selective in China with strong local partners.
• What about leverage? Expect 4.0x–5.5x net debt/EBITDA in current buyout markets; growth rounds typically use little to no company-level debt.

What to prepare before engaging

1. Audited financials (3 years) and current YTD with revenue by product, cohort and geography.
2. Detailed EBITDA bridge and margin expansion plan; unit economics for growth deals.
3. Customer metrics (retention, NRR/GRR, churn) and pipeline quality.
4. Board-ready plan for use of proceeds and 100-day value creation priorities.
5. Cap table, option plan details, and key legal/contract summaries (including TSA needs for carve-outs).
6. Regulatory and licensing map, especially for healthcare, financial services and cross-border operations.

Selected sources (public only)

Track record and notable exits: IRR, MOIC, DPI, TVPI

Carlyle’s flagship private equity funds have generally delivered net IRRs in the low-to-mid teens and TVPI/MOIC in the 1.3x–2.0x range across recent vintages, with outcomes driven by sector mix, entry year, and exit environment. Realizations are dominated by strategic sales and IPOs with post-IPO sell-downs. Relative to Blackstone, KKR, and Apollo across comparable vintages, Carlyle’s returns are broadly in line but not consistently top quartile. Figures below are sourced from Carlyle disclosures, LP public reports, SEC filings, Preqin, PitchBook, and press coverage; where exact fund-level data are not publicly disclosed, ranges and as-of dates are noted.

Reported fund-level data from Carlyle investor materials and public LP reports indicate that the firm’s Corporate Private Equity flagship strategy has produced net IRRs of approximately 10–15% and TVPI/MOIC between 1.3x and 1.7x for recent vintages, with older vintages at or above 1.7x as they approach full realization. The 2013 vintage (Carlyle Partners VI) is a relative outperformer with TVPI around 2.0x, while the 2018 vintage (Carlyle Partners VII) tracks around 1.3x–1.5x as of the latest public updates, reflecting higher entry valuations and slower exit markets in 2022–2023. Distribution rates (DPI) for mature funds are generally above 1.0x, while newer funds remain in the value-creation phase.

Exit activity has historically skewed toward strategic sales and sponsor-to-sponsor sales, with IPOs used to de-risk and maximize price discovery followed by secondary sell-downs. Case studies such as Booz Allen Hamilton, Axalta, CommScope, and Sedgwick illustrate Carlyle’s pattern of operational value creation, balance-sheet optimization, and staged monetizations.

Against peers, Carlyle’s pooled performance lands near industry medians for buyout funds of the same vintages. Blackstone and KKR have exhibited somewhat higher TVPI and net IRR medians in the 2013–2018 vintages, while Apollo is broadly comparable on a median basis but with greater dispersion given its contrarian style. These differences are largely attributable to portfolio sector mix, energy exposure, timing of capital deployment, and the strength of exit windows available to each manager.

Data caveats: fund-level IRR/TVPI/DPI are point-in-time and subject to valuation methodology and as-of dates; gross-to-net differences can be material; and LP-reported numbers may differ from manager reports due to cash flow timing, currency effects, or customized vehicles. Where precise figures are not publicly filed, ranges are provided and triangulated from multiple sources.

• Definitions: Net IRR is after all fees and carry; TVPI and MOIC are equivalent measures of total value relative to paid-in capital; DPI measures cash distributions returned to LPs.
• Scope: Focuses on flagship Corporate Private Equity funds (U.S. buyout) and representative regional buyout strategies (Europe, Asia) where LP-reported data are available.
• As-of dates: Clearly noted for each fund; metrics change over time with realizations and valuation marks.

Carlyle fund-level performance (representative buyout vintages; net figures where available)

Vintage performance and consistency

Carlyle’s flagship U.S. buyout funds show a pattern of mid-teens net IRR and mid-1x to low-2x TVPI across cycles. CP VI (2013) stands out as a strong post-GFC vintage with TVPI around 2.0x and a high-teens net IRR, benefiting from attractive entry valuations (2013–2015 deployment) and robust exit markets through 2019 and again in 2021. CP V (2007) is solid but constrained by GFC-era headwinds; TVPI around 1.6–1.7x is typical for quality 2007 vintages. CP VII (2018) has an in-progress profile (TVPI around 1.3–1.5x), reflecting higher acquisition multiples and slower monetization in 2022–2023; its ultimate outcome depends on exit velocity and public markets over the next 2–3 years.

Regional buyout strategies have delivered comparable mid-teens net IRR profiles: CAP IV and CEP IV cluster around 1.6–1.8x TVPI with DPI approaching 1.0x as realizations progress. Across the platform, realized DPI is meaningfully higher in older vintages (1.5x+), consistent with near-full harvest states.

• Drivers of out/underperformance: sector mix (industrial, government services, healthcare), energy exposure in certain funds, entry multiple discipline, and pace of exits.
• Realized vs unrealized: mature funds (pre-2013 vintages) are mostly realized; 2013–2016 vintages have substantial realized value plus residuals; 2018+ vintages remain unrealized-heavy.

Notable exit case studies

Booz Allen Hamilton (government services): Carlyle acquired the U.S. government services unit in 2008 for approximately $2.54 billion, took the company public in 2010, and fully exited by 2016. Carlyle disclosed a gross MOIC of about 3.1x and a gross IRR around the high teens, implying a mid-teens net IRR after fees. Sources: Carlyle press release on final exit (July 2016); Booz Allen SEC filings (2010 S-1; subsequent 10-K/8-K).

Axalta Coating Systems (industrial coatings): Carlyle acquired DuPont Performance Coatings for $4.9 billion in 2013, rebranded it Axalta, and listed it in 2014. Carlyle sold down in tranches, including a 2015 block to Berkshire Hathaway, and exited remaining shares by 2019. Public filings and press coverage imply cumulative proceeds comfortably above cost, with an estimated gross multiple in the 2.5–3.0x range over roughly six years (estimated net IRR in the high teens to low 20s). Sources: DuPont sale announcement (2012), Axalta IPO press release (2014), Berkshire block trade press (2015), Carlyle sale-down disclosures (2017–2019), Axalta SEC filings.

CommScope (communications infrastructure): Carlyle took CommScope private for approximately $3.9 billion (transaction announced 2010, closed 2011), returned it to public markets in a 2013 IPO, and exited via follow-on offerings through 2016. Based on IPO valuation, follow-on pricing, and debt paydown, external analyses place the realized gross multiple around the low-2x range with an estimated 20–30% gross IRR, depending on tranche timing. Sources: CommScope IPO press release (October 2013), Carlyle sell-down press (2015–2016), CommScope SEC filings.

Sedgwick (claims management): Carlyle acquired Sedgwick in 2014 at an enterprise value reported around $2.4 billion and sold the company in 2019 to Clayton, Dubilier & Rice at an enterprise value of approximately $6.7 billion. Adjusting for ownership and leverage, the equity multiple is commonly estimated around 2.5–3.0x over five years, implying a high-teens to low-20s estimated net IRR. Sources: Carlyle acquisition announcement (2014), CD&R acquisition announcement (2019), trade press coverage.

• Dominant exit routes: strategic sales and sponsor-to-sponsor sales; IPOs followed by staged sell-downs are used to optimize price and liquidity.
• Hold periods: typically 4–8 years across the case studies; average near 5–6 years aligns with broader buyout exit timing in PitchBook and Preqin data.

Realized outcomes and distributions

Carlyle’s reported carry fund realizations were elevated in 2021 and moderated in 2022–2023 alongside the broader slowdown in sponsor exits. Across flagship and regional buyout portfolios, public LP reports indicate that mature funds have DPI in the 1.5x–1.7x range, while post-2018 vintages are still realization-light (DPI approximately 0.4x–0.6x).

Portfolio-level realized outcomes based on disclosed exits and LP cash flow reports suggest: dozens of full realizations across the platform since 2019, an average hold period near 5–6 years, distribution rates that spike during favorable IPO/M&A windows, and realized gain rates consistent with mid-teens net IRR delivery over cycles. These dynamics are broadly consistent with industry exit pacing and valuation trends documented by PitchBook and Preqin.

• Indicative distribution pacing: concentrated in windows of strong public markets (2013–2014, 2017–2019, 2021) and strategic M&A booms.
• Realized vs unrealized mix: older vintages predominantly realized; 2018+ vintages retain significant unrealized NAV pending exit normalization.

Benchmarking vs Blackstone, KKR, and Apollo

Using Preqin and PitchBook benchmarks for global/US buyout funds and peer flagship disclosures, 2013–2018 vintage medians generally cluster around 12–15% net IRR and 1.5x–1.8x TVPI. Blackstone and KKR report flagship funds in these vintages toward the upper end of that range (some vehicles around 1.7x–2.0x TVPI and mid-teens net IRR), while Apollo’s buyout funds track close to medians but with higher dispersion. Relative to these peers, Carlyle’s CP VI (2013) is competitive at approximately 2.0x TVPI, and CP VII (2018) trails top-tier outcomes but remains within a broad median band at roughly 1.3x–1.5x TVPI.

Interpretation: Carlyle’s performance consistency is solid across cycles, with selective vintages outperforming when sector selection and exit timing align. The primary headwinds to top-quartile outperformance in recent years have been the slower exit environment post-2021 and higher entry multiples for 2018–2019 deployments.

• Peer context sources: Preqin 2024 Global Private Capital report; PitchBook Global PE annual 2023–2024; peer investor presentations and LP performance dashboards.
• Quartile thresholds: top-quartile 2013–2016 buyout funds often exceed 1.8x TVPI and 15% net IRR; Carlyle meets or approaches these thresholds in CP VI, with other vintages around median levels.

Sources and data limitations

Primary sources include: The Carlyle Group investor presentations and 2023 Form 10-K; public LP performance reports (e.g., PSERS, Oregon PERF, WSIB, CalSTRS/CalPERS); SEC filings for portfolio companies (S-1, 10-K, 8-K); and third-party datasets (Preqin, PitchBook) and press releases. Where exact fund-level net IRR and TVPI were not publicly listed by Carlyle, we triangulated from multiple LP reports for the same fund and vintage cohort, and present conservative ranges with clear as-of dates.

Limitations: Some LPs report on a lag or use different cash flow cut-off dates; gross vs net figures and currency effects can cause discrepancies; partial exits and recapitalizations complicate realized multiple attribution. All figures should be interpreted within these constraints.

• Carlyle Group Inc. investor presentations and earnings materials (2023–2024)
• The Carlyle Group Inc. 2023 Form 10-K and 2024 interim filings
• PSERS Private Equity Performance Report (2023), Oregon PERF PE Program Quarterly (2023), WSIB Private Markets reports (2023)
• Preqin Global Private Capital Report 2024; PitchBook Global PE Reports 2023–2024
• Company and transaction press releases and SEC filings: Booz Allen (2010–2016), Axalta (2013–2019), CommScope (2013–2016), Sedgwick (2014, 2019)

Team composition and decision-making processes

Carlyle’s investment organization combines global sector teams with fund-specific investment committees and an established network of operating partners. Approvals are centralized at the fund IC level, with escalation to firmwide governance when transactions present outsized risks or conflicts. Operating partners are embedded post-close to drive a 100-day plan, KPI discipline, and board-level oversight. Sources: Carlyle leadership biographies and team pages, Form 10-K, Form ADV, investor presentations, and media interviews.

Carlyle’s governance framework links sector-led origination with fund-specific investment committees and a portfolio governance model that emphasizes board control, information rights, and structured KPI monitoring. Senior decision-makers span the CEO and segment heads for Global Private Equity, Global Credit, and Investment Solutions, with regional and sector leaders accountable for pipeline, underwriting, and post-close value creation. Operating partners (Operating Executives and Senior Advisors) reinforce execution capacity in the first 100 days and through periodic value creation reviews. Approvals are centralized at the fund investment committee level, with additional firmwide oversight in defined cases (e.g., conflicts, concentration, or reputational risk).

Senior leadership and governance roles

Carlyle is led by a firmwide CEO and three principal investing platforms: Global Private Equity (GPE), Global Credit, and Global Investment Solutions (AlpInvest). Each flagship fund family maintains a dedicated investment committee (IC) chaired or co-chaired by senior leaders for that strategy. Sector heads and regional leaders originate and sponsor deals; ICs render binding approvals. The Executive Committee and risk/legal functions provide cross-platform oversight, particularly in transactions with elevated risk, complexity, or conflicts. Sources: Carlyle leadership bios and platform pages; Form 10-K; Form ADV Part 2A; investor presentations.

Senior decision-makers (selection)

Investment committee architecture and approvals

Approvals are centralized at the fund-level Investment Committee for each strategy. Sector teams originate and underwrite transactions, but no deal proceeds without IC approval. Transactions with unusual risks (e.g., related-party, concentrated exposure, reputational sensitivities) receive additional review by cross-functional risk, legal, and compliance leaders, and may escalate to firm-level governance. Sources: Carlyle Form ADV Part 2A; Form 10-K disclosures; investor presentations.

• Who signs off: The relevant fund’s Investment Committee issues binding approvals; ICs are composed of senior leaders (e.g., platform heads, regional heads, sector heads).
• Centralization: Approvals are fund-specific and centralized at the IC, with additional firmwide oversight for exceptions (conflicts, concentration, regulatory sensitivities).
• Voting: ICs typically operate by majority vote with quorum requirements defined in fund LPAs; certain transactions may require enhanced thresholds per fund documents.
• Cross-checks: Legal, tax, ESG, and compliance review is mandatory prior to final IC; financing terms and leverage are reviewed by capital markets and risk functions.

Decision-making lifecycle and timeline

Carlyle’s lifecycle follows a gated process from origination to post-close value creation. Timing varies by asset class and jurisdiction; control buyouts tend to run longer than minority growth deals. Benchmarks below reflect typical private equity norms and disclosures across Carlyle materials and broader industry studies.

1. Origination and early screens: Thematic sourcing by sector teams; initial risk and fit assessment; early ESG screen.
2. Pre-IC read-in: Deal team presents thesis, valuation framework, and key risks to sector head and select IC members for directional feedback.
3. LOI/term sheet: Conditional offer issued; exclusivity sought.
4. Confirmatory diligence: Commercial, financial, legal, tax, ESG, technology, and operations workstreams with third-party advisors.
5. Final IC: Full underwriting case, diligence findings, financing plan, and value-creation blueprint; binding vote.
6. Signing and financing: Execute definitive agreements and financing documents; commence regulatory filings.
7. Closing: Satisfy conditions precedent (antitrust/CFIUS as applicable); fund the transaction.
8. Post-close governance: 100-day plan; board constitution; KPI dashboards; cadence of operating reviews and IC updates.

Typical milestone durations (control PE deals, indicative ranges)

Team resources and operating capabilities

Carlyle reports a global workforce exceeding two thousand employees, including a large cohort of investment professionals across private equity, credit, and investment solutions, with teams deployed in the Americas, EMEA, and Asia. The firm augments deal teams with in-house specialists in tax, legal and compliance, ESG, government affairs, and capital markets. An established network of Operating Executives and Senior Advisors is mobilized for diligence and post-close execution. Sources: Form 10-K; Carlyle firm overview; Corporate Responsibility Report; team pages.

Organization scale and capabilities (publicly reported)

Portfolio governance mechanisms and escalation

Carlyle’s post-close governance emphasizes formal board roles, information and reporting rights, KPI dashboards, and structured operating reviews. The governance toolkit scales to minority investments via observer seats and covenants. Escalation pathways bring issues from management to the deal team, portfolio resources, the relevant fund IC, and ultimately firm-level committees when risks are acute. Sources: Form ADV (supervision and review); Carlyle Corporate Responsibility Report; leadership interviews.

• Board governance: Majority board control or board seats in control deals; observer rights and information covenants in minority deals.
• KPI dashboards: Standardized dashboards align with the underwriting case, including revenue growth, margin, cash conversion, safety, and ESG metrics where material.
• 100-day plan: Operating partners and management align on cost, revenue, and organizational priorities; plan approved by the board.
• Cadence: Monthly operating reviews in the first year; quarterly IC or platform reviews thereafter; annual strategic offsites.
• Covenants and controls: Financial covenants, consent rights for major actions, and information access embedded in shareholder agreements.
• Escalation protocol: Management to deal team lead; to sector head and operating partner; to fund IC for material deviations; to firm-level risk/compliance for regulatory or reputational concerns.

Operating partners and their role post-acquisition

Carlyle’s Operating Executives and Senior Advisors are embedded alongside deal teams, both pre- and post-close. Pre-close, they assist with industry referencing, commercial diligence, technology and operations diagnostics, and management assessment. Post-close, they co-develop the 100-day plan with management, stand up KPI dashboards, and establish the cadence of operating reviews. They also mentor portfolio leadership, recruit key hires, and pressure-test capital allocation and M&A roadmaps. Sources: Carlyle operating executive network pages; investor presentations; leadership bios (e.g., Admiral James Stavridis for geopolitical risk).

Regional and sector coverage model

Carlyle deploys sector teams across regions, with regional heads in the Americas, EMEA, and Asia accountable for pipeline health, underwriting quality, and portfolio performance. Sector heads (e.g., technology, healthcare, industrials, infrastructure) lead thematic sourcing and sponsor IC submissions. Regional committees and fund ICs coordinate to ensure global comparability of risk standards while allowing local market nuance in valuation, financing, and regulatory pathways. Sources: Carlyle team pages; platform and sector overviews; Form 10-K segment reporting.

Value-add capabilities and portfolio support

Carlyle’s value-creation model blends a dedicated operating platform with sector expertise, functional playbooks, and an integrated global network. This section outlines the operating team structure, the firm’s playbooks for revenue, cost, digital, and M&A integration, quantified case studies with sources, and practical guidance on expected engagement levels for entrepreneurs. SEO: Carlyle value creation operating partners portfolio support case studies.

Carlyle’s value-add capabilities are delivered through a coordinated operating platform that combines functional specialists, seasoned operating executives, and the firm’s global investment teams under the One Carlyle approach. The goal is to accelerate revenue, expand margins, professionalize systems, and compound value via M&A, while managing risk through modern governance, cyber, and ESG programs.

Operational work starts pre-close with a data-driven value creation plan and continues through structured 0–100 day programs, hands-on execution sprints, and scale-up phases. Across stages and sectors, Carlyle deploys repeatable playbooks for pricing, sales excellence, procurement, working capital, digital transformation, and post-merger integration—tailored to company context and market dynamics.

Operating platform and team structure

Carlyle’s operating platform (often referenced as Portfolio Solutions or Operating Group) integrates functional experts in revenue growth, procurement and supply chain, pricing, finance operations, digital and data, cybersecurity, talent, and ESG. These resources augment dedicated sector teams and a bench of Operating Executives with C-suite experience. The platform supports portfolio companies from diligence through exit, leveraging common tooling, benchmarks, and playbooks, while adapting to sector-specific needs. The firm is a co-founder of the ESG Data Convergence Initiative (EDCI), standardizing core ESG metrics across private assets to drive measurable operational improvement and transparency (EDCI; Carlyle corporate site).

While exact headcount evolves, Carlyle publicly emphasizes a global network of investment professionals complemented by dozens of operating specialists and a broad Operating Executive program. Coverage is organized by sector and function, with rapid-mobilization pools for carve-outs, pricing, and digital sprints, and an integration management office capability for complex M&A.

Operating platform at a glance

Value-creation playbooks in practice

Carlyle’s playbooks are designed to generate tangible EBITDA uplift and cash flow while laying foundations for durable growth and premium exits. Execution relies on joint teams spanning management, operating specialists, and deal partners, with clear owners, milestones, and KPI targets.

Quantified case studies and reported outcomes

Below are examples where Carlyle describes operating interventions and measurable outcomes. Metrics and sourcing are summarized for quick reference; note that market forces, management actions, and secular trends also contributed.

Case studies: selected outcomes and sources

Support services for portfolio leadership

Carlyle offers a menu of services that portfolio CEOs and founders can access on demand or through structured programs. These services are intended to be pragmatic and outcome-oriented, with clear sponsorship from the deal team and company leadership.

• Executive and board talent: CEO/CFO/COO searches; chair/independent director placements; compensation benchmarking and incentive design; succession planning.
• Interim leadership: CFO or COO secondments for carve-outs or step-change transformations; PMO leads for integrations or ERP programs.
• Commercial excellence: pricing labs; key account playbooks; channel partner economics; marketing mix optimization and demand-gen sprints.
• Procurement and ops: rapid spend baselines; should-costing; RFP/e-auction runs; logistics and footprint redesign.
• Global market access: One Carlyle relationships for customer introductions, regulatory navigation, and geographic expansion (Americas, EMEA, APAC).
• Digital, data, and cyber: data platform builds; analytics accelerators; e-commerce setup; zero-trust roadmaps and incident response readiness.
• Finance transformation: close acceleration; FP&A operating cadence; SKU/customer profitability; cash conversion programs.
• ESG and EDCI: metric baselining; decarbonization roadmaps; supplier engagement; standardized reporting to LPs.

Engagement model, timelines, and resource allocation

Engagement levels are tailored to company size, complexity, and change agenda. Founders can expect concentrated effort during diligence and the first 100 days, followed by focused sprints and quarterly operating reviews. Resource allocation is flexible; the operating team typically scales up during carve-outs, integrations, and pricing or digital sprints, then shifts to a lighter-touch governance cadence.

Engagement model and resource estimates (typical ranges, not commitments)

Resource allocation benchmark (illustrative)

Tailoring by stage and sector

Carlyle adapts interventions to the company’s maturity and industry economics. Early growth stories prioritize go-to-market and product velocity; complex industrial or healthcare carve-outs emphasize separation, quality, and supply continuity; software and tech emphasize ARR quality, pricing, and customer success; consumer emphasizes omnichannel and brand execution.

• Growth equity: GTM buildouts (SDR, marketing ops), self-serve digital, pricing to value, founder-friendly governance.
• Corporate carve-outs: TSA navigation, Day-1 continuity, ERP/HRIS/Finance standups, supplier novations.
• Buy-and-build platforms: pipeline and diligence engine, playbook integrations, shared services and data harmonization.
• Sector nuance: industrials (procurement, OEE, footprint); healthcare (quality, regulatory, diagnostics throughput); consumer (DTC, retail media, SKU rationalization); technology (ARR, net revenue retention, cloud cost and reliability).

What entrepreneurs and CEOs can expect

Expect a collaborative, management-led process with clear accountability and minimal disruption to customers. Carlyle brings functional help and pattern recognition; you bring product, culture, and market instincts. The first 100 days set the cadence, with measurable quick wins and a joint roadmap.

• Engagement cadence: weekly working sessions during sprints, monthly operating reviews, quarterly board-level KPI deep dives.
• Decision rights: management-led execution with board sponsorship; clear owners for every initiative and quantified targets.
• Data and tooling: lightweight KPI dashboards, benchmark libraries, and pricing/configuration tools configured to your stack.
• Talent: access to CXO network, interim leaders, and recruiting partners; alignment of incentives to value creation plan.
• Outcome orientation: track EBITDA, cash conversion, growth KPIs, and risk metrics (cyber/ESG) with before/after comparisons.

Deal sourcing and origination channels

Neutral overview of Carlyle deal sourcing and origination channels with estimated contributions, proprietary and corporate carve-out examples, and a practical outreach playbook for entrepreneurs. SEO: Carlyle deal sourcing, origination, proprietary deals, corporate carve-outs.

Carlyle sources investments through a diversified origination ecosystem that blends direct, thematic outreach with banker-led processes and complex corporate carve-outs. The firm’s global sector model, international office footprint, and relationships across corporates, entrepreneurs, and limited partners create a steady flow of opportunities spanning buyouts, growth equity, carve-outs, take-privates, and secondaries.

Because Carlyle does not routinely disclose deal-source breakdowns, the estimates below triangulate from press releases, media coverage, and market databases (PitchBook, Preqin) for 2019–2023. Percentages are directional and intended to show mix rather than precise counts.

• Primary channels: direct/proprietary outreach, corporate carve-outs, investment banker–run processes (auctions and limited auctions), sponsor-to-sponsor secondary buyouts, take-privates, and GP-led secondaries/continuation vehicles.
• Key enablers: sector-specialist teams, localized origination via international offices, operating executives and senior advisors, and relationship networks with corporates and LPs.

Estimated sourcing mix (Carlyle 2019–2023, directional)

How Carlyle originates deals

Carlyle’s origination combines thematic sourcing, sector specialization, and local presence. Sector teams map sub-verticals, identify corporate non-core assets, and build senior-level dialogues ahead of formal processes. International offices (Americas, EMEA, and Asia) provide proximity to founders and corporates, enabling earlier intelligence and cultural alignment for bilateral negotiations.

The firm’s executive network and senior advisors often initiate CEO-to-CEO conversations or diligence angles that create a path to exclusivity. LP and strategic corporate relationships can facilitate warm introductions, co-sponsorship, or carve-out readiness (TSAs, standalone planning). Carlyle’s “One Carlyle” collaboration model lets sector, capital markets, and portfolio operations work in tandem to improve win rates in both proprietary and competitive situations.

• Sector teams: Thematic maps, data-driven target lists, relationship coverage of CEOs/CFOs and corporate development.
• International offices: On-the-ground sourcing in North America, Europe, and Asia for founder-led and carve-out deal flow.
• Executive network: Operating executives and advisors open proprietary dialogues and sharpen angles in competitive sales.
• Capital solutions: Capability to offer bespoke structures (minority, convertible, joint ventures) to unlock off-market deals.

Examples of proprietary or carve-out deals (indicative)

The following transactions illustrate proprietary or carve-out dynamics. Classifications reflect public descriptions and common market characterization; they are indicative and not exhaustive.

Selected deals and sourcing notes

Entrepreneur outreach playbook

Founders and executives can improve fit and speed by aligning outreach to Carlyle’s sector coverage, investment size, and value-creation focus. The goal is to enable a rapid, senior-level read on sector fit, growth levers, and transaction feasibility.

1. Target the right team: Identify the relevant sector team (e.g., Technology, Healthcare, Consumer, Industrials, Financial Services, Aerospace/Defense). Prioritize the regional office closest to your HQ.
2. Warm introductions: Use trusted channels—current or former CEOs, operating executives, board members, corporate partners, or your legal/accounting advisors. Banker introductions help for sell-side readiness, but direct outreach is welcome for proprietary ideas.
3. What to prepare: 10–12 page overview (market, product, KPIs, unit economics, customers, churn/retention, pipeline), 3-year historical financials and projections, cohort or LTV/CAC analysis (if applicable), organization chart, top 10 customers/suppliers with concentration, and a transaction objective (growth equity, majority, carve-out, take-private).
4. Speed-dating diligence: Be prepared to share data-room light materials quickly—monthly P&L, bookings/billings, backlog, pricing, churn metrics, gross margin bridge, and a preliminary separation plan for carve-outs (systems, TSAs, one-time costs).
5. Who to contact: Sector coverage MD/Principal, regional office lead, and where appropriate, Carlyle’s Growth or Capital Solutions teams for minority or structured deals. Use the firm’s website contact page if you lack a warm intro.
6. Follow-up cadence: If no response in 7–10 days, send a succinct update on new KPIs or customer wins. Keep materials tight; aim for a 30–45 minute initial discussion.

What makes outreach resonate

• Clear thesis fit: Link your business to Carlyle’s stated sector themes and value-creation playbook.
• Proof of scalability: Cohort retention, unit economics, and pathway to EBITDA expansion or cash conversion.
• Transaction clarity: What you want (minority vs. majority), use of proceeds, and governance preferences.

Common pitfalls to avoid

• Overly broad processes when a carve-out or sensitive founder situation would benefit from a bilateral approach.
• Incomplete separation planning for corporate carve-outs (systems, stranded costs, regulatory approvals).
• Unsubstantiated TAM claims without bottoms-up customer and pricing analyses.

Intermediaries, auctions, and GP-leds in the mix

Banker-led processes still account for a material share of Carlyle’s deal flow, particularly for scale assets and take-privates. Separately, Carlyle participates in GP-led secondaries and continuation vehicles (often via its solutions platform), which originate through sponsor relationships and advisory-led processes. While distinct from primary buyouts, these channels contribute to asset access and co-underwriting opportunities across the platform.

Application process, term sheets, and timeline

A practical, step-by-step guide to engaging Carlyle as a target or partner, covering initial contact options, diligence stages, documentation, commercial terms, timelines by strategy, checklists, red flags, and negotiation tips. SEO: Carlyle application process term sheet diligence timeline.

Carlyle typically runs a structured process from first contact through LOI and confirmatory diligence to definitive agreements and close. While specifics vary by sector and jurisdiction, recent U.S. and European buyouts commonly move from LOI to close in 12–20 weeks, and minority growth equity rounds can complete in 6–12 weeks with streamlined diligence (sources: Carlyle deal announcements in 2020–2021 such as Fortitude Group Holdings and Jagex; PitchBook M&A timeline benchmarks; standard PE term sheet analyses by leading law firms).

This guide outlines a practical engagement path, expected documents and terms, timeline benchmarks, and checklists founders can use to stay transaction-ready.

Step-by-step engagement and diligence timeline with median durations

How to engage Carlyle: initial contact options

You can approach Carlyle directly or via an intermediary. The goal is to establish strategic fit, confidentiality, and a clear path to a focused evaluation.

• Warm introductions: Existing investors, portfolio CEOs, industry advisors, or bankers route to the relevant sector team.
• Direct outreach: Email a concise 1–2 page overview to the sector coverage team or use Carlyle’s website contact form for the appropriate strategy (buyout, growth, credit).
• Banker-run processes: Participate in broad auctions led by investment banks; timelines are pre-set and competitive.
• Conferences and thematic sourcing: Meet Carlyle deal professionals at industry events; follow up with a data-light teaser.

• What to include in first contact: 12–24 month KPI snapshot (ARR/revenue, growth, gross margin, retention), customer concentration, product overview and roadmap, unit economics, team bios, and key catalysts for a transaction.

Practical 10-step timeline from first contact to close (with median durations)

1. Intro and NDA: 1–2 weeks to align on fit and confidentiality.
2. Teaser and data-light review: 1 week for high-level metrics and market context.
3. Pre-LOI data room: 1–2 weeks for financials, KPIs, product deck, key contracts list.
4. Management meetings and Q&A: 1–2 weeks; functional deep dives and product demo.
5. Indicative valuation and structure discussion: 3–7 days to shape headline terms.
6. LOI negotiation and signing (with exclusivity 30–60 days): 1–3 weeks.
7. Confirmatory diligence kick-off: Day 0 post-LOI; integrated workplan and weekly tracker.
8. Commercial, financial, legal, and technical diligence: 6–10 weeks total for QofE, customer calls, legal, tax, ESG, cybersecurity, code scan.
9. Documentation and financing: 4–6 weeks to finalize SPA/APA, rollover, MIP, debt commitment and RWI bind.
10. Signing and closing: 2–4 weeks for approvals, consents, and funds flow; can be simultaneous if no regulatory review is required.

Typical diligence stages and workstreams

Carlyle’s confirmatory diligence is cross-functional and runs on a detailed request list with weekly status tracking.

• Commercial: Market sizing, growth drivers, cohort/retention analysis, pricing, competitive positioning, customer reference calls.
• Financial: Quality of Earnings, revenue recognition policies, working capital analysis, cash conversion, forecasting rigor.
• Technical and product: Architecture review, security posture, cloud costs, scalability, backlog, roadmap, IP ownership, open-source license scan.
• Legal: Corporate, cap table, major contracts, IP, litigation, employment, compliance, data protection, anti-bribery/AML.
• Tax and structuring: Tax exposures, NOLs, international entities, deal structure and rollover mechanics.
• HR and management: Organization design, compensation benchmarking, key person risks, hiring plan.
• ESG and regulatory: Industry-specific licenses and approvals, ESG policies and disclosures.
• Insurance and RWI: Coverage gap analysis; rep and warranty insurance underwriting process and diligence calls.

Expected documentation and common deal conditions

• Pre-signing: NDA, process letter (in auctions), management presentation, data room index.
• LOI/Term sheet: Valuation, structure (cash, rollover, earnout), exclusivity period, due diligence contingency, financing plan, key conditions, initial governance outline.
• Definitive agreements: SPA/APA, disclosure schedules, equity holders’ agreement/shareholders’ agreement, rollover and option exchange docs, management incentive plan (MIP), employment/retention agreements, transition services (if carve-out), credit agreements (if leveraged).
• Common conditions to close: No material adverse effect, completion of due diligence, debt financing availability and covenants, regulatory approvals (antitrust, CFIUS, sectoral), third-party consents, RWI bind (if used).

Commercial terms entrepreneurs should expect

Terms vary by strategy, ownership level, and jurisdiction. The below reflects common private equity market practice for large sponsors in minority growth and control buyout deals.

• Board composition: Minority growth deals often 1 sponsor seat (plus an observer) on a 5–7 person board with at least one independent mutually agreed. Control buyouts commonly have sponsor majority with at least one independent.
• Governance and reserved matters: Sponsor consent on major actions (budget, acquisitions, new debt, equity issuances, M&A, exec hiring/firing, dividends). Founders seek thresholds and carve-outs for day-to-day operations.
• Economics: Growth rounds may use preferred equity with 1x non-participating liquidation preference and customary non-cumulative dividends; buyouts typically use common/rollover equity with MIP.
• Management incentive plan (MIP): Often 10–15% fully diluted in buyouts; 5–10% in growth minority. Vesting blends time-based and performance-based (EBITDA/ARR or MOIC-based ratchets).
• Earnouts and performance incentives: Common in growth and carve-outs; metrics tied to ARR/revenue, gross profit, or EBITDA over 12–36 months; clear definitions, carve-outs for acquisitions and accounting changes, and dispute mechanisms.
• Minority protections: Information rights (monthly KPIs, quarterly and annual financials), preemptive rights on new issuances, ROFR on secondary sales.
• Tag and drag rights: Tag-along for minority holders on sponsor or founder sales; drag rights typically at 50–70% holder threshold with fair market value protections and RWI allocation mechanics.
• Employee equity: Option or RSU plans aligned to value creation milestones; change-in-control acceleration terms negotiated.

Timeline benchmarks by strategy

Based on market data and reported Carlyle transactions in 2020–2021, median durations are:

• Buyout: LOI to close commonly 12–20 weeks (3–5 months), extending to 6+ months with complex carve-outs or cross-border regulatory approvals.
• Growth minority: LOI to close often 6–12 weeks with focused diligence, smaller financing packages, and fewer third-party consents.
• Pre-LOI phase: 2–6 weeks for relationship-building, initial diligence, and management meetings.
• Regulatory overlays: Antitrust, CFIUS, or sector approvals can add 4–12+ weeks.
• RWI underwriting: Typically 1–2 weeks within the confirmatory diligence window.

Sample term-sheet highlights list

A concise summary page helps both sides align quickly on economics, control, and key conditions.

• Valuation and structure: Enterprise value, cash vs rollover, earnout cap and metrics.
• Security type: Common or preferred; liquidation preference (if preferred).
• Governance: Board seats, observer rights, independent director selection, reserved matters.
• Exclusivity: 30–60 days (extendable by mutual consent).
• Diligence contingency: Confirmation of financial, commercial, legal, and technical diligence.
• Financing: Equity commitment, debt financing approach, no-financing or limited financing condition; reverse termination fee, if applicable.
• Closing conditions: Regulatory approvals, third-party consents, no MAE, RWI bind.
• Employee matters: MIP pool size and vesting, key executive agreements, retention budget.
• Reps, warranties, indemnities: RWI expected; seller fundamental vs general reps, caps and survival as per market.
• Information and reporting: Monthly KPI pack; quarterly and annual audited financials.

Checklist of materials Carlyle commonly requests

• Corporate: Charter docs, cap table, option ledger, shareholder agreements.
• Financial: 3–5 years historical financials, current year budget, monthly P&L/BS/CF, QofE-ready trial balances, revenue recognition policy, working capital trends.
• KPIs: ARR/revenue cohorts, retention/churn, CAC/LTV, gross margin by product, pipeline conversion, pricing and discounting analysis.
• Customers and revenue: Top 20 customers, contracts and renewals, churn and win/loss, backlog and NRR/GRR.
• Product and technology: Architecture diagrams, roadmap, security policies, pen test results, SOC/ISO reports, code scan output, uptime/SLAs, cloud cost reports.
• Legal and compliance: Material contracts, IP assignments, privacy and data protection, litigation, anti-bribery/AML, sanctions screening.
• Tax and structuring: Returns, transfer pricing, NOLs, indirect taxes, international entity chart.
• HR: Org chart, compensation bands, key employee agreements, hiring plan, ESOP/MIP docs.
• ESG and risk: ESG policies, audits, environmental permits (if applicable).
• Insurance: D&O, cyber, general liability; RWI broker introductions.
• Regulatory and licenses: Sector-specific approvals, filings, consents list.

Red flags that can derail the process

• Inconsistent or restated financials; weak revenue recognition controls.
• High customer concentration (e.g., top customer >30% of revenue) without durable contracts.
• Unresolved IP ownership, missing assignments, or restrictive open-source licenses.
• Material security incidents, poor remediation, or lack of basic controls (MFA, logging).
• Unverifiable KPIs or manipulated cohorts; negative NRR without explanation.
• Undisclosed regulatory or licensing gaps; CFIUS/antitrust risks discovered late.
• Founder dependency with no succession or bench.
• Significant tax exposures or payroll/indirect tax non-compliance.
• Unwillingness to grant customary diligence access or to agree on reasonable exclusivity.
• Major adverse trend post-LOI (e.g., missed plan, churn spike) without credible mitigation.

Five negotiation tips for founders

1. Align on metrics: Define ARR, churn, and EBITDA precisely in the LOI, especially if tied to earnouts or MIP performance hurdles.
2. Governance balance: Focus on reserved-matter thresholds and independent director selection, not just seat counts.
3. Rollover and MIP: Optimize mix of rollover equity and MIP size; tie vesting to value-creation milestones that management can influence.
4. Exclusivity discipline: Accept a clear 30–60 day clock but secure data room responsiveness, weekly trackers, and decision-maker access in return.
5. De-risk closing: Push for committed financing language, clear closing conditions, and early start on regulatory and RWI processes to avoid timeline creep.

Portfolio company testimonials and case studies

Objective, source-annotated portfolio testimonials and 3–5 in-depth Carlyle case studies with numeric outcomes, primary-source CEO/CFO quotes, credibility assessments, and balanced takeaways. SEO: Carlyle portfolio testimonials case studies outcomes.

This section curates an objective set of portfolio company testimonials and five in-depth case studies to illustrate how Carlyle has worked with management teams before, during, and after ownership. We focus on investment theses, governance and operating interventions, and measurable outcomes such as revenue, EBITDA, and exit timing. Where available, we include direct quotes from CEOs or CFOs and label each source type (press release, S-1/10-K filing, earnings call, or independent media) to help readers gauge tone and credibility.

The companies span carve-outs, take-privates, and sponsor consortium deals. We include one mixed outcome to reflect the variability of private equity value creation and to provide practical lessons for founders and executives considering partnership structures.

Carlyle case studies: theses, interventions, and outcomes

Case study 1: Axalta (DuPont Performance Coatings carve-out)

Background: In 2013, Carlyle acquired DuPont Performance Coatings for $4.9B and rebranded it as Axalta. The business was a global refinish and industrial coatings leader with 2012 net sales of approximately $4.3B reported by DuPont prior to separation (DuPont annual report).

Investment thesis: Execute a complex carve-out, stand up a modern operating platform, and drive margin expansion via procurement, manufacturing productivity, and pricing, while focusing the portfolio on higher-return refinish and industrial segments.

Carlyle’s involvement: Carlyle took board control, funded stand-up systems (ERP, shared services), supported a global rebranding to Axalta, and optimized the capital structure ahead of public listing. Operating teams prioritized plant efficiency and SKU rationalization.

Measurable outcomes: Axalta’s adjusted EBITDA reached approximately $907M in 2016 (Axalta 2016 Form 10-K). The company completed an IPO in November 2014 at $19.50 per share, enabling debt refinancing and sponsor sell-downs through 2017.

Direct testimonial (tone/source): Axalta’s CEO, Charlie Shaver, marked independence and growth focus at launch, stating that the new Axalta chapter positioned the company to serve customers with renewed focus (press release, promotional source).

• Primary sources: DuPont annual report (pre-spin metrics), Axalta 10-Ks, IPO press release
• Outcomes: EBITDA expansion, branding and commercial repositioning, timely IPO exit
• Credibility note: CEO quote is from a corporate press release; informative but promotional

Case study 2: CommScope (2011 take-private; 2013 IPO and BNS acquisition)

Background: Carlyle acquired CommScope in 2011 and supported its return to public markets in 2013. Pre-IPO filings show 2012 net sales of approximately $3.3B (CommScope S-1).

Investment thesis: Benefit from secular growth in data consumption and network upgrades across wireless, enterprise, and broadband; pursue transformative M&A to expand in fiber and enterprise connectivity.

Carlyle’s involvement: Post-take-private, Carlyle held board seats and worked with management on cost, portfolio focus, and go-to-market. After the 2013 IPO, Carlyle supported the $3B acquisition of TE Connectivity’s Broadband Network Solutions in 2015 to scale in fiber and enterprise.

Measurable outcomes: CommScope’s net sales grew to above $5B by 2016 following integration of BNS (CommScope 10-K). The 2013 IPO priced at $15 per share and enabled balance sheet optimization and further M&A.

Direct testimonial (tone/source): On announcing the BNS deal, CEO Eddie Edwards called it a ‘transformational acquisition’ that positioned CommScope for future growth (company press release; promotional but specific to the transaction).

• Primary sources: CommScope S-1 and 10-K, BNS acquisition press release
• Outcomes: Scale-up via M&A, revenue growth, and successful public market re-entry
• Credibility note: CEO quote is from a transaction press release; biased toward positive framing

Case study 3: Booz Allen Hamilton (2008 carve-out; 2010 IPO)

Background: In 2008, Carlyle acquired the U.S. government consulting business of Booz Allen Hamilton in a transaction valued at approximately $2.54B. The business reported revenue of about $5.1B in FY2009 and $5.8B in FY2011 (Booz Allen S-1/10-K).

Investment thesis: Leverage scale and long-term government relationships, expand higher-growth areas such as cyber and analytics, and optimize capital structure to balance growth and distributions.

Carlyle’s involvement: Board leadership, investment in growth practices, and a capital plan that included dividends and deleveraging around the 2010 IPO.

Measurable outcomes: Booz Allen went public in 2010 at $17 per share. The company sustained revenue growth through FY2011 while transitioning to life as a public company, and Carlyle exited its remaining stake by 2016.

Direct testimonial (tone/source): Then-Chairman/CEO Ralph Shrader emphasized that the 2008 transaction allowed the government and commercial businesses to focus independently to better serve clients (company transaction announcement; corporate communication with inherent promotional tone).

• Primary sources: Booz Allen S-1/10-K, transaction and IPO press releases
• Outcomes: Public-market exit with revenue growth and strategic focus on government services
• Credibility note: Management remarks came from corporate announcements; useful context but not independent analysis

Case study 4: Dunkin' Brands (2006 consortium buyout; 2011 IPO)

Background: A sponsor consortium including Carlyle acquired Dunkin' Brands in 2006 for approximately $2.4B. The company pursued an asset-light franchising strategy. The S-1 reported 2010 revenue of approximately $577M and a heavily franchised mix.

Investment thesis: Scale franchising, accelerate U.S. store growth, refresh the brand, and build digital and marketing capabilities to drive same-store sales and franchisee economics.

Carlyle’s involvement: Consortium board representation, capital structure optimization, unit growth playbook, and national marketing initiatives; continued deleveraging post-IPO.

Measurable outcomes: IPO in 2011 at $19 per share; total points of distribution surpassed 10,000 globally around the IPO period, with continued U.S. net unit growth thereafter (S-1 and subsequent filings). Sponsors exited progressively via secondary offerings.

Direct testimonial (tone/source): At IPO, CEO Nigel Travis described the listing as an exciting milestone for the company and its franchisees (IPO press release; promotional source focused on the event rather than operations).

• Primary sources: Dunkin' S-1, IPO press release, subsequent 10-Ks
• Outcomes: Public-market exit, continued unit growth, and maturing digital marketing platform
• Credibility note: Quotes around IPO events reflect celebratory tone, not independent validation

Case study 5 (mixed): Syniverse (2011 take-private; 2021 SPAC announced, 2022 terminated)

Background: Carlyle took Syniverse private in 2011 for approximately $2.6B. Syniverse provides mobile roaming, messaging, and interconnect services. The company later announced a business combination with a SPAC in 2021 that implied an enterprise value of about $2.85B, alongside a strategic preferred investment, but the SPAC deal was terminated in 2022.

Investment thesis: Capture secular growth in roaming and messaging volumes, expand through M&A (including the 2013 MACH acquisition), and modernize platforms to serve MNOs and digital ecosystem participants.

Carlyle’s involvement: Board oversight, support for add-on M&A, strategic financing, and preparation for a potential public market re-entry via SPAC that ultimately did not complete.

Measurable outcomes: Announced SPAC valuation suggested modest EV step-up vs. 2011 take-private; deal termination in 2022 contributed to an extended hold (>10 years). The company continued to operate privately and refinanced its capital structure thereafter.

Direct testimonial (tone/source): Syniverse’s CEO stated in 2022 that the company and its SPAC counterparty mutually agreed to terminate the business combination agreement (company press release; factual disclosure with neutral tone).

• Primary sources: 2011 take-private press release, 2021 SPAC announcement, 2022 termination release
• Outcomes: Extended hold period and market-route pivot despite operating progress
• Credibility note: Press releases are direct but event-focused; independent media corroborated the termination timing and rationale

• Lessons for entrepreneurs:
• Plan multiple exit routes; market windows can shut abruptly.
• Align on capital structure flexibility to manage extended timelines.
• Maintain operating cadence independent of deal milestones.
• Communicate transparently with customers and employees during prolonged transaction processes.

Testimonial tone and credibility assessment

Most testimonials cited here are from company press releases or IPO filings. These are primary sources that accurately convey management’s stated rationale and contemporaneous framing, but they are promotional in tone and may emphasize positives while downplaying risks. S-1 and 10-K filings provide audited or reviewed financial data and are generally the most credible for metrics. Earnings calls offer additional context but can also be optimistic.

Where available, independent trade journals and financial press corroborate transaction values, pricing, and timing; however, we prioritize audited filings for numeric outcomes. For balance, Syniverse is included as a mixed outcome to highlight that extended holds and aborted listings can materially affect realizations despite operational initiatives.

• Press releases: high authenticity on facts of record (deal terms, quotes) but promotional tone
• SEC filings (S-1/10-K): highest credibility for historical financials and risk factors
• Earnings calls: timely insights with management perspective; check against filings
• Independent media/trade journals: useful corroboration and external context

Cross-case takeaways for founders and CEOs

Across cases, Carlyle’s partnership tended to be most impactful where a clear operational separation or scale agenda existed (Axalta carve-out, CommScope BNS expansion) and where filing-backed metrics show EBITDA uplift or revenue scale-up. In consortium situations (Dunkin' Brands), alignment on franchising economics was a lever for durable growth. Conversely, Syniverse underscores that market-route uncertainty can extend timelines even with strategic progress.

• Prioritize measurable operating plans: cost-to-serve, pricing, and SKU/portfolio focus drive EBITDA quickly post-close.
• Stand-up excellence matters in carve-outs: ERP, shared services, and procurement scale are prerequisites to commercial growth.
• Use public markets tactically: IPOs can accelerate deleveraging and M&A; maintain readiness to pivot.
• Governance alignment and contingency planning: critical to navigate delayed or aborted exits without strategic drift.

Methodology and source notes

This compilation draws primarily on company press releases, SEC filings (S-1/10-K), and earnings call remarks for quotes and numbers, supplemented by trade-press coverage to corroborate transaction timing and values. We deliberately label source types next to quotes and characterize tone to help readers calibrate credibility.

• CEO/CFO quotes: company press releases, earnings calls (promotional or situational tone)
• Financial metrics: SEC filings (highest credibility)
• Valuations and pricing: filings and press releases; cross-checked with financial press where applicable

Market positioning and competitive differentiation

Analytical comparison of Carlyle’s market positioning versus Blackstone, KKR, Apollo, and Advent using current AUM ranks, strategy breadth, fundraising pace, indicative performance medians, fees, LP mix, and sector depth. Includes a benchmark table and practical guidance for entrepreneurs on partner fit.

Carlyle competes in the top tier of global private equity managers alongside Blackstone, KKR, Apollo, and Advent. While Carlyle trails the very largest platforms on overall AUM and recent fundraising momentum, it differentiates through sector depth in aerospace and defense, healthcare, and government services; an integrated multi-strategy platform spanning corporate private equity, credit, and real assets; and an established secondaries/solutions capability via AlpInvest. The following analysis benchmarks scale, product scope, sector specialization, fees, LP base, and performance indicators, and concludes with partner-selection guidance for entrepreneurs.

By global AUM, Blackstone is the clear leader; KKR and Apollo vie for second and third depending on measurement period and inclusion of insurance-related capital. Carlyle generally ranks fourth or fifth globally by total AUM across private markets. Over the last five years, KKR led PE fundraising among the group, while Carlyle’s pace lagged peers. That gap reflects a more selective flagship cadence, leadership transitions, and a tougher fundraising backdrop for certain strategies, rather than a diminished deal capability in core sectors.

Carlyle’s platform breadth remains a differentiator for mid-to-large deals with financing complexity. The firm can combine equity buyout and growth funds with direct lending, opportunistic credit, and real assets. Its Global Investment Solutions business (including secondaries and co-investments) adds a distribution and liquidity vector that some peers emulate via separate secondaries platforms. Relative to Blackstone and KKR, Carlyle’s retail/wealth footprint is smaller; relative to Apollo, its insurance capital base is smaller, but its corporate PE franchise is more balanced across regions and sectors.

Benchmark: Carlyle vs leading global PE peers (AUM, breadth, fundraising, performance)

Scale and fundraising momentum

Scale matters in underwriting and capital solutions. Blackstone’s trillion-dollar platform leads in permanent capital and retail distribution; KKR’s recent five-year fundraising has been the strongest among traditional PE pools; Apollo’s AUM is propelled by credit and insurance assets, enabling large-capital solutions. Carlyle’s AUM places it in the global top five; however, its five-year private equity fundraising trails KKR and Blackstone. This affects the speed of capital deployment and the cadence of flagship vehicles, but Carlyle remains competitive in mid-to-large control and growth deals where sector expertise and cross-platform financing are decisive.

Average flagship buyout fund sizes highlight the practical gap: KKR’s $19B North America fund and Apollo’s $24.6B Fund X exemplify mega-buyout firepower, while Blackstone’s recent buyout vintages exceed $25B. Carlyle’s current flagship scale is smaller, which can be advantageous for complex carve-outs and growthier control deals where mega-fund return thresholds and concentration constraints can be limiting.

Strategy breadth and product platform

Carlyle operates across four integrated pillars: Corporate Private Equity (regional flagships in North America, Europe, and Asia; plus growth), Global Credit (direct lending, opportunistic, structured credit, aviation and asset-based finance), Real Assets (infrastructure, select real estate strategies), and Global Investment Solutions (AlpInvest primaries, secondaries, and co-investments).

Relative to peers: Blackstone and KKR extend breadth with larger retail/wealth channels and multiple perpetual capital vehicles; Apollo’s insurance platform provides low-cost permanent capital and scale in private credit. Advent is narrower but deep in sector-driven, high-conviction buyouts. For entrepreneurs, Carlyle’s breadth translates into flexible capital stacks (unitranche or holdco PIK alongside equity), GP-led liquidity options via solutions, and infrastructure adjacency for asset-heavy businesses.

• Number of active vehicles: Carlyle discloses a large multi-fund complex across PE, credit, real assets, and solutions; peers Blackstone and KKR operate similarly broad families, while Advent is more concentrated in flagship PE buyouts.
• Secondaries capability: Carlyle’s AlpInvest offers primary, secondary, and co-invest solutions that can facilitate GP-led or LP-portfolio transactions; Blackstone and KKR also have dedicated secondaries arms, while Advent typically partners rather than sponsors secondaries at scale.

Sector specialization differences

Carlyle is notably deep in aerospace and defense, government services, and healthcare, with long-tenured operating networks in regulated and mission-critical end markets. This depth manifests in buy-and-build strategies, carve-outs from large contractors, and modernization themes (cyber, C4ISR, space, and defense supply chain). Healthcare focus spans outsourced pharma services, medtech, and provider enablement rather than reimbursement-exposed delivery systems.

Blackstone’s sector strengths include real estate-intensive verticals, life sciences platforms, and large-scale consumer and services roll-ups, aided by sourcing synergies across its real estate and credit businesses. KKR emphasizes operational value creation and data science at scale, with strong franchises in technology, infrastructure-adjacent assets, and healthcare services. Apollo leans into complexity and capital solutions in industrials, business services, and specialty finance, often with structured downside protection. Advent focuses on software, financial services, healthcare, and industrial tech with concentrated ownership and active transformation.

Fee structure and carried interest patterns

Across mega-cap buyout funds, headline fees cluster around 1.5–2.0% management fees on committed or invested capital (depending on period) and 20% carry with preferred returns. Large LPs frequently negotiate step-downs; core or long-hold funds may bear 10–15% carry. For private credit direct-lending vehicles, management fees often range 0.5–1.0% with 10–15% carry above a hurdle; opportunistic credit is closer to buyout economics. Secondaries and fund-of-funds typically charge 1.0–1.5% and 10–15% carry.

Carlyle’s fee terms broadly align with this market band. Relative to Blackstone and KKR, Carlyle historically offers comparable flagship economics but may be more flexible in co-investment allocations for strategic partners. Apollo’s large credit platforms and insurance capital often entail lower management fees per dollar of AUM but generate scale through origination and spread capture. Entrepreneurs should focus less on LP fee schedules and more on the sponsor’s co-underwriting capacity, governance approach, and certainty of close.

LP base and distribution

Carlyle’s LP base is diversified across sovereign wealth funds, public and corporate pensions, insurance companies, endowments, and family offices, with growing but smaller retail/wealth penetration than Blackstone’s and KKR’s private wealth channels. Apollo’s insurance relationships provide sizable, recurring allocations to private credit. Diversified LP bases support multi-cycle resilience; however, the mix also affects fundraising velocity and strategic emphasis (e.g., retail-eligible products, evergreen funds, or insurance mandates).

SWOT: data-backed view of Carlyle versus major peers

• Strengths: Deep domain expertise in defense/aerospace, government services, and healthcare; integrated equity-credit-real assets platform; established secondaries/solutions via AlpInvest; global local teams across Americas, EMEA, and Asia; disciplined underwriting suitable for complex carve-outs and regulated sectors.

• Weaknesses: Smaller flagship buyout scale than Blackstone/KKR/Apollo; slower five-year PE fundraising ($49.1B vs KKR $126.5B and Blackstone $124B); relatively smaller retail/wealth channel and perpetual capital base; organizational complexity across multi-strategy businesses can elongate governance for very large approvals.

• Opportunities: Defense modernization and supply-chain resiliency; healthcare services and outsourcing; Japan and Europe corporate carve-outs; cross-platform solutions combining equity with unitranche or NAV/holdco financing; GP-leds and continuation vehicles via solutions.

• Threats: Intense competition from mega-platforms with larger balance sheets and retail distribution; sustained high rates pressuring buyout underwriting and exits; regulatory scrutiny in secondaries and private credit; LP consolidation favoring the very largest GPs.

Positioning implications for entrepreneurs: when Carlyle is the best fit

For founders and CEOs, the right partner depends on sector, transaction complexity, speed, and global ambitions. Carlyle tends to be the best fit when domain knowledge and multi-strategy structuring are decisive, while the largest peers may be optimal for mega-scale platform roll-ups or balance-sheet solutions at the very upper end.

• Carlyle fit: Regulated/mission-critical sectors (aerospace and defense, government services, healthcare), cross-border expansions, complex carve-outs from corporates, asset-heavy businesses needing both equity and bespoke debt, and growth/control hybrids aiming for operational professionalization with sector operators.
• Blackstone fit: Real estate-intensive or infrastructure-adjacent platforms, very large roll-ups needing substantial follow-on capital, situations aiming to leverage a deep private wealth channel or perpetual capital vehicles.
• KKR fit: Large-scale operational transformations and data-driven value creation, global enterprise software and services platforms, and infrastructure-adjacent growth with access to diversified pools (PE, infra, real estate).
• Apollo fit: Capital-intensive or complex balance sheet situations benefiting from structured equity/credit solutions, sponsor-to-sponsor recaps, and industries where downside protection and yield are priorities.
• Advent fit: Concentrated, sector-specialist buyouts in software, healthcare, industrial tech, and financial services where a focused, high-engagement ownership model is preferred over multi-strategy breadth.

1. If you require a bespoke capital stack (equity plus unitranche or holdco financing) and sector know-how in defense or healthcare, prioritize Carlyle.
2. If you need the largest check size, broadest perpetual capital, or extensive retail distribution, prioritize Blackstone or KKR.
3. If your situation is a complex or structured recapitalization with downside protections, consider Apollo.
4. If you seek a focused, sector-led owner for a classic control buyout without multi-product complexity, consider Advent.

Methodological notes and disclosure

AUM and rank references reflect firm disclosures and industry compilations (e.g., PEI 300, Preqin) through 2024–2025; ranges are shown for quarter-end timing and insurance consolidation differences. Five-year fundraising figures denote private equity capital raised (PEI 300 methodology) unless noted. Flagship fund sizes reflect latest publicly reported or widely cited closes. Sample buyout net IRR medians are indicative composites by vintage from industry databases and manager reporting; actual results vary by vintage, strategy, geography, and fees. Entrepreneurs should request the latest manager track records, fund-specific fee schedules, and references prior to partner selection.

Contact, application and next steps for entrepreneurs

How to contact The Carlyle Group, approach the right team, apply with a pitch deck, and use proven outreach templates. Includes links to official pages, a 2-page executive summary guide, a 10-item data-room readiness checklist, NDA expectations, and response timelines.

Use this section to confidently initiate contact with Carlyle, package your pitch materials, and manage next steps. It covers where to find official contacts, what to send, concise outreach templates, timelines, escalation paths, NDA norms, and a practical readiness checklist.

Where and how to contact Carlyle

Start by targeting the relevant sector and strategy team. Carlyle is organized by strategies (for example, Global Private Equity, Global Credit, Global Investment Solutions) and sector verticals. Use the official website to identify the appropriate professionals and the contact pathways below.

Official contact pathways and links

What to send in your initial outreach

Your goal is to enable a fast screening. Keep the note concise and attach only what is essential for first-pass review.

• 2-page executive summary (PDF).
• Pitch deck (PDF, 10–15 slides).
• High-level financial model or summary (historical and forecast, with key drivers).
• If represented by an advisor, a CIM or teaser can substitute for the deck (do not send highly sensitive details at first contact).
• Company snapshot: sector, HQ, headcount, product/service, customers, KPIs, capital sought, and use of proceeds.

Email outreach templates

These concise templates are designed for initial screening and follow-up. Personalize for the relevant Carlyle strategy and sector team.

Outreach templates for Carlyle

Expected response times and escalation

Timelines vary by strategy and pipeline volume, but the following windows are common for institutional PE processes.

• Initial screening response: typically 1–3 weeks from receipt of materials.
• If no response after 7–10 business days: send the concise follow-up template.
• At 2–3 weeks with no reply: escalate by contacting another sector team member or ask a trusted advisor or banker to introduce.
• If redirected: resend the 2-page summary and deck with a 1–2 line context from the referrer.
• Avoid high-frequency follow-ups; limit to two attempts before switching to a warm intro or a relevant conference meeting.

2-page executive summary structure

Keep it decision-oriented, with clear metrics and a tight narrative that matches Carlyle’s sector and strategy focus.

1. Company overview: what you do, who you serve, why now.
2. Market: size, growth, segmentation, regulatory context if applicable.
3. Product/service: core offering, pricing, unit economics, IP or moat.
4. Traction: customers, pipeline, retention, NPS, notable logos.
5. Financial snapshot: historical and forecast revenue, gross margin, EBITDA or burn, cash runway.
6. KPIs: 5–7 metrics that matter (ARR, CAC payback, cohort LTV, utilization, churn).
7. Team: key executives, governance, advisors; hiring needs.
8. Transaction: capital sought, use of proceeds, deal preferences, timing, advisors engaged.
9. Risks and mitigants: 3–5 specific items with actions.
10. Contact details and data room link (if ready).

Data room readiness checklist (10 items)

Prepare these before deep-dive diligence. Share sensitive files under NDA only and with role-based permissions.

1. Audited or reviewed financial statements and monthly management accounts (P&L, balance sheet, cash flow).
2. Revenue build and cohort analyses (by product, segment, region, and customer), plus pipeline/backlog.
3. Operating KPIs with definitions and calculation methods.
4. 3-statement financial model with assumptions, scenarios, and sensitivity tabs.
5. Customer data: top customers by revenue, contracts, churn and retention, pricing, and win/loss.
6. Cap table, option plan, board consents, and any outstanding convertibles or warrants.
7. Legal and regulatory: charter docs, material contracts, licenses, compliance and litigation summaries.
8. Commercial materials: product roadmap, roadmap resourcing, competitive landscape, and pricing history.
9. HR and operations: org chart, key employment agreements, compensation bands, and vendor lists.
10. IT and security: architecture overview, data governance, cybersecurity policies, and third-party audits (for example, SOC 2).

Process dos and don'ts

These practices improve signal and speed while respecting institutional workflows.

• Do tailor your note to Carlyle’s relevant strategy and sector focus.
• Do attach only the 2-page summary and a concise deck at first contact.
• Do provide crisp metrics and a clear use of proceeds.
• Do propose 2–3 specific meeting times and share a one-line agenda.
• Do use a warm introduction from a trusted advisor or existing investor when possible.

• Don't send highly confidential data before an NDA.
• Don't mass-email multiple Carlyle teams simultaneously; target the most relevant first.
• Don't over-attach or send large data dumps early; it slows screening.
• Don't misalign on check size or strategy; confirm fit on the website first.
• Don't follow up more than twice without adding new information or a warm intro.

Confidentiality and NDAs

In line with common private equity practice, expect no NDA at the earliest screening stage. Carlyle will typically review high-level materials first (2-page summary, short deck). A mutual NDA is more common after initial interest is established and before sharing sensitive customer data, code, or granular pricing. If your materials contain non-public details, watermark and remove trade secrets until an NDA is executed.

Practical approach: indicate that a detailed model, customer-level data, and security documentation can be shared upon NDA. Keep initial files factual but not proprietary. Use secure links with time-bound access and viewer-only permissions.