Private equity giant Carlyle Group on Monday named former Goldman Sachs banker Harvey Schwartz as its new CEO—the latest in a series of succession moves by the world’s largest PE firms seeking to pass the founders’ torch to the next generation of leaders.
Schwartz, 57, replaces co-founder Bill Conway, who was serving as interim CEO since last summer following the departure of CEO Kewsong Lee. Lee had stepped down amid reports of friction with Conway and co-founders David Rubenstein and Daniel D’Aniello.
Conway and Rubenstein had served as co-CEOs until 2018, when they tapped Lee and firm veteran Glenn Youngkin for the spots. Lee became Washington-based Carlyle’s sole CEO after Youngkin ran for office to become governor of Virginia.
Schwartz’s appointment comes during a difficult period for the firm. Carlyle’s stock price has fallen 25% over the past 12 months, a far cry from the S&P 500’s 8% drop. The firm’s recent fundraising efforts have lagged behind its public PE giant peers, bringing in $4.6 billion in new capital last year through the third quarter, according to PitchBook’s US PE earnings dashboard.
Some PE industry succession plans have gone smoothly, such as when KKR founders Henry Kravis and George Roberts handed the reins to Joe Bae and Scott Nuttal.
But Carlyle and others have experienced some hiccups.
In 2021, Apollo Global Management sped up its succession timeline after revelations about then-CEO Leon Black’s ties to the disgraced financier Jeffrey Epstein. The incident led to a public competition between co-founders Josh Harris and Marc Rowan, who ultimately emerged as Apollo’s new CEO.
Schwartz, who joined Goldman in 1997, held several senior leadership posts, ending as president and COO. He departed in 2018 after he was passed over for the CEO role in favor of current head David Solomon. Before his Goldman stint, Schwartz spent a decade at various financial firms, including Citicorp.
Unlike many of his C-suite peers, Schwartz paid his own way through college and graduated from Rutgers University, The Wall Street Journal reported. Schwartz is also a black belt in karate, according to The New York Times.
On Tuesday morning the firm is scheduled to report its quarterly earnings, giving investors a fresh update on Carlyle’s performance and its financial outlook.
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