Harvey Schwartz, a former Goldman Sachs executive, was named CEO of Carlyle Group on Monday. He will be responsible for driving the private equity firm’s earnings, expanding its assets under management, and increasing its stock price.
After a six-month search, Schwartz’s appointment takes effect on February 15.
In August of last year, Kewsong Lee resigned as CEO after his recovery attempts fell short of expectations. David Rubenstein, William Conway, and Daniel D’Aniello, founders of Carlyle who still control 26% of the company, felt Lee did not consult them enough before making important choices.
Schwartz, 58, retired as president and chief operational officer of Goldman Sachs in 2018 after a 20-year career at the bank, where he also served as chief financial officer and global co-head of trading. In contrast to the majority of Wall Street CEOs with Ivy League pedigrees, Schwartz earned a bachelor’s degree from Rutgers before receiving an MBA from Columbia. In 1997 he joined Goldman Sachs.
David Solomon defeated him in the competition to succeed former Goldman Sachs CEO Lloyd Blankfein.
After Monday’s statement, Carlyle shares were trading down 2.33 percent at $33.11 per share, in line with the overall market. Carlyle, which manages $369 billion in assets, will publish its fourth-quarter earnings on February 7.
Investors will closely monitor Schwartz’s leadership of Carlyle, which has lagged behind rivals Blackstone, Apollo Global Management, and KKR & Co. in recent years.
“We would view the conclusion of this (CEO) search as a positive,” analysts from Jefferies wrote in a note, adding that there will be a “necessary grace period to better comprehend any new strategic initiatives.”
»Former Goldman Sachs executive Harvey Schwartz has been named CEO of Carlyle Group«