Carlyle Group’s fundraising slowed sharply last quarter as the absence of a new chief executive deterred some investors from committing capital to the private equity group. The slowdown underlines how much is riding on Harvey Schwartz, the former Goldman Sachs chief financial officer who Carlyle named as chief executive on Monday. As well as investors’ unease over the absence of a chief executive, the downturn in global markets and an industry-wide overexposure of pensions and endowments to private equity hobbled Carlyle’s fundraising last quarter, according to people familiar with the matter.
Leadership void at private capital firm was one reason fourth quarter fundraising pulled in only $5bn
One thing to start: Carlyle Group’s new chief executive Harvey Schwartz stands to make more than $180mn over the next five years, a package that would make him one of Wall Street’s highest-paid executives. Five years ago, few on Wall Street would have bet on HarveySchwartzbecoming head of CarlyleGroup. Let us take you back to 2017, when two storied Wall Street firms began formalising succession plans from the leaders that had steered much of their growth on public stock markets.