Carlyle CEO to Take on Banks by Supercharging Financing Unit
- CEO Schwartz calls capital markets ‘obvious white space’
- Growth in capital markets brings risks for investment firm
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Carlyle Group is a bit player in arranging loans for companies, but new Chief Executive Officer Harvey Schwartz is betting the private equity shop can do more to compete with banks.
He asked a team to craft a plan to grow a business that secures loans for portfolio companies. By expanding a unit that acts as an in-house investment bank, Carlyle can control costs and recoup some of the roughly $1 billion in annual fees it pays to banks.