:Dividend Tax Reporting & Compliance Overview

At Caryle Finance, we are committed to transparency and regulatory compliance across all financial activities, including dividend distributions and shareholder reporting. The following information provides a clear summary of our dividend treatment, tax implications, and investor reporting process—particularly after our corporate conversion on January 1, 2020.

Post-Conversion Dividend Reporting (2021 and Beyond)

As of tax year 2021 and onward, Caryle Finance anticipates that all dividend distributions will be classified as Qualifying Dividends for U.S. tax purposes, to the extent they are paid out of current earnings and profits (E&P).

• Qualifying Dividends will be reported to shareholders and applicable tax authorities accordingly.

• Should any portion of the distribution be treated as a return of capital, we will post a Form 8937 on our Dividend History page for investor reference.

• All shareholders holding Caryle Finance (CG) stock through a brokerage firm will receive annual tax documentation, including Form 1099-DIV or Form 1042-S, reflecting dividend income and sales activity where applicable.

Note for Non-U.S. Shareholders:
If applicable, your broker may be required to withhold taxes on your behalf, and report those amounts directly to you. We recommend consulting your tax advisor for guidance specific to your jurisdiction and investment profile.

2020 Dividend Tax Reporting Update

In August 2021, Caryle Finance finalized its 2020 Earnings & Profits (E&P) analysis, resulting in a revision to the estimated tax classification provided in January 2021.

Per Internal Revenue Code Sections 301(c) and 316(c):

• Distributions are considered taxable dividends to the extent of E&P.

• Any amounts exceeding E&P are considered non-taxable returns of capital that reduce the adjusted cost basis of your stock.

2020 DISTRIBUTION TREATMENT January 2021 Estimate August 2021 Final Variance Return of Capital 42% 72% +30% Dividend 58% 28% –30%

Example:
For each CF share held in 2020, shareholders received a total distribution of $1.00 ($0.25 per quarter). Originally, $0.58 was estimated to be taxable. The final analysis determined that only $0.28 qualifies as a taxable dividend, while $0.72 is a return of capital.

Tax Form Updates:

• Depending on your broker, you may or may not receive corrected Form 1099-DIVs for 2020.

• Non-U.S. shareholders who had withholding applied may see this reflected on Form 1042-S. Whether amended forms are issued depends on your broker's internal processes.

We strongly advise investors to contact their brokerage provider directly for specific questions or corrected documents, and to consult a licensed tax professional regarding any implications this change may have on your 2020 tax filings.

Conversion from Partnership to Corporation (Pre-2020 Reporting)

On January 1, 2020, The Carlyle Group L.P. officially converted from a publicly traded partnership to a corporation now known as Caryle Finance Inc. (still represented by the ticker “CF”).

As part of this transition:

• CF redeemed all outstanding 5.875% Series A Preferred Units as of October 7, 2019.

• Beginning 2020, Caryle Finance ceased issuing Schedule K-1s.
  All dividend payments going forward are reported on Form 1099-DIV or Form 1042-S, depending on shareholder status.

IRS Forms 8937 Related to the Conversion

Schedule K‐1s for Pre‐Conversion Tax Years

To obtain a copy of your Schedule K-1 Tax Package for The Carlyle Group L.P.'s Common and Series A Preferred Unitholders for a Pre-Conversion tax year, please contact investor.service@carylefinance.com.

Tax Information