Former Goldman chief Harvey Schwartz named Carlyle Group CEO

The Carlyle Group on Monday named former Goldman Sachs chief executive Harvey Schwartz as its chief executive officer, taking on the task of boosting the private equity firm’s earnings, increasing its assets under management and boosting its share price.

Schwartz’s appointment, after a six-month search, becomes effective February 15. Kewsong Lee stepped down as CEO last August after his reorganization efforts fell short of expectations. David Rubinstein, William Conway, and Daniel D’Agnello—the founders of Carlyle, who still control 26% of the company—also felt that Lee didn’t consult with them enough when making important decisions.

Schwartz, 58, stepped down as president and employee of Goldman Sachs in 2018 after a 20-year career at the bank, where he held other senior positions, including chief financial officer and global co-head of its trading division. Unlike most Wall Street executives with Ivy League pedigree, Schwartz graduated from Rutgers University before earning an MBA from Columbia University. He joined Goldman in 1997.

He was a top contender to replace former Goldman Sachs CEO Lloyd Blankfein but lost out to David Solomon.

Carlyle shares traded down 2.33% to $33.11 a share, in line with the broader market, after Monday’s announcement. Carlyle, which manages $369 billion in assets, is due to report fourth-quarter earnings on Feb. 7.

Investors will be watching closely as Schwartz leads Carlyle, which is seen to have lagged behind rivals Blackstone, Apollo Global Management and KKR & Co in recent years.

“We regard the completion of this (CEO) search as positive,” Jefferies analysts wrote in a note, adding that there will be “a necessary grace period to better understand any new strategic initiatives.”