Carlyle Group Inc. is restructuring its European buyout team, signaling significant leadership changes amid efforts to boost investor confidence during slow fundraising. The firm announced to staff and investors that longtime co-heads Marco De Benedetti and Jonathan Zafrani will step down from their leadership roles. Michael Wand, who co-leads Carlyle’s European technology strategy, will now have heightened oversight of the region’s buyout platform.
Wand was already promoted in May to head of Europe private equity, encompassing both tech and buyout strategies. The latest move consolidates more leadership under his direction as Carlyle seeks to reassure investors while raising its latest Europe buyout fund, which has so far secured around €1 billion—far short of its initial target.
The leadership shakeup, confirmed by a Carlyle spokesperson, comes amidst CEO Harvey Schwartz’s broader efforts to realign the firm after slower-than-anticipated fundraising. Schwartz, who assumed leadership last year, is steering the group through significant changes, including the exit of former CEO Kewsong Lee and tough market conditions that deterred many investors from committing funds.
Carlyle’s previous Europe buyout fund from 2018 had a net internal rate of return of about 8% as of March. The firm risks missing out on profit shares if this performance dips further. Conversely, Carlyle’s European tech funds, overseen by Wand, have been standout performers in private equity, providing a glimmer of optimism for investors.
De Benedetti, based in Milan and with Carlyle since 2005, will transition to chair of Italy, continuing to source deals regionally. Paris-based Zafrani, who joined in 1999, will move to a senior adviser role.
These strategic changes reflect Carlyle’s commitment to meeting investor expectations and navigating the challenges of fundraising in a high-interest-rate environment.
Original Story https://www.livemint.com/news/carlyle-changes-europe-buyout-leadership-amid-fundraising-push-11722542028997.html
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