Breaking News

Sun Hung Kai's Thomas Kwok Sentenced to 5 Years in Jail

Carlyle Hires Holland in Push for Individual Investors

Carlyle Group LP (CG), the world’s second-biggest manager of alternative assets such as private equity and real estate, hired Jeff Holland as head of the private client group in a push to expand its base of individual investors.

Holland, 42, joined last month from Cole Real Estate Investments Inc., a manager of real estate investment trusts where he was president, Washington-based Carlyle said in a statement today. He started at Phoenix-based Cole in 2010 after serving as chief operating officer for U.S. retail at BlackRock Inc., the world’s biggest money manager.

Carlyle co-founder David Rubenstein, along with Blackstone Group LP (BX) co-founder Stephen Schwarzman, have been the most vocal private-equity executives calling for individual investors to add alternatives to stock and bonds in their portfolios. Both Carlyle and New York-based Blackstone, the largest alternative-asset manager, have created funds targeting individuals, including CPG Carlyle Private Equity Fund, a vehicle started last year that allows clients to commit as little as $50,000, compared with the $5 million to $20 million minimum that is typical for private-equity pools.

Rubenstein and Schwarzman have identified 401(k) retirement accounts, a type of defined-contribution plan, as a potential source of retail money. Many large corporations are moving to defined-contribution plans, which shifts the responsibility of saving to employees, and away from defined-benefit plans, which are managed by employers and are more costly to operate.

“We’re going to go to defined-contribution plans, and as everybody manages their own money more or less, there’s going to be a need to figure out how to capture some of that money,” Rubenstein said at a February conference in Boca Raton, Florida. “The defined-benefit plans that have been the biggest source of capital for firms like mine, they’re going to be going away.”

To contact the reporter on this story: Devin Banerjee in New York at

To contact the editors responsible for this story: Christian Baumgaertel at Sree Vidya Bhaktavatsalam, Pierre Paulden

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.