Aug. 22 (Bloomberg) -- Cisco Systems Inc. Vice President Charles Carmel, who managed corporate development at the networking-equipment company, has left to join the private-equity firm Warburg Pincus LLC.
Carmel, 37, will be managing director in Warburg’s San Francisco office, according to an e-mailed statement. He worked at Cisco for a decade and previously was an investment banker at Goldman Sachs Group Inc.
Cisco is losing one of its top executives in mergers and acquisitions as it faces increased competition and slowing sales growth. The San Jose, California-based company expects revenue to increase 1 percent to 4 percent in the current quarter, down from a previous long-term forecast of 12 percent to 17 percent a year. Cisco plans to reduce costs by $1 billion annually, an effort that includes the elimination of 6,500 jobs.
“The tech industry is undergoing a good amount of disruption and change,” Carmel said today in an interview. That “creates opportunities for private equity and especially for Warburg Pincus, which invests across the spectrum -- from venture to buyouts.”
Warburg Pincus, based in New York, has more than $30 billion in assets under management, with investments in over 125 companies. The technology, media and telecommunications group, run by Patrick Hackett, consists of 35 people in Beijing, Frankfurt, Hong Kong, London, New York and San Francisco, according to the firm’s website.
“Charles’s experience and expertise in venture capital, M&A and technology are an excellent fit with Warburg Pincus’s growth-oriented approach to investing,” Hackett said in the statement.
Cisco fell 7 cents to $15.01 at 4 p.m. New York time on the Nasdaq Stock Market. The shares have declined 26 percent this year, compared with an 11 percent drop for the Standard & Poor’s 500 Index.
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