Oct 3, 2023 - Economy

Carlyle shakes up its U.S. private equity strategy

Private equity giant Carlyle Group is moving away from U.S. buyouts in the consumer, media and retail sectors, as first reported by Bloomberg and confirmed by Axios.

Why it matters: This is partially about past performance, but more about Carlyle's determination that these areas have too many investment headwinds. If Carlyle was simply dissatisfied with its CMR team, but wanted to keep pursuing the sector, it would have found a new CMR team.

Details: Four members of the U.S. CMR team are leaving the firm, while others either will manage out the portfolio (Brandon Staub leads that effort) or move onto other industry teams. Carlyle's Europe and Asia CMR teams are unaffected.

  • Carlyle announced the reorganization in an internal memo that was obtained by Axios. Other moves include promoting Will McMullan to co-head of financial services (he previously worked on health care) and Anna Tye as co-head of technology (while remaining co-head of growth).
  • The firm's core U.S. sectors now are financial services, tech, health care, industrials, and government services.
  • Per the memo, which was signed by Americas private equity co-heads Sandra Horbach and Brian Bernasek: "While these decisions are never easy, this is necessary to position our platform and team for the future."

A firm spokesperson declined comment.

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