Meet the powerful players in Carlyle’s $ 53 billion loan division
- The loan division of the Carlyle Group has been at the center of the concerns of the company’s CEO, Kewsong Lee.
- The credit team has almost doubled its assets under management over the past four years.
- 14 people run Carlyle’s $ 53 billion loan division.
- Visit the Business Insider homepage for more stories.
One of Kewsong Lee’s biggest priorities as CEO of The Carlyle Group has been to create a lending division that offers new financial products to investors and serves as an equal to its long-standing private equity team. date, which has bought thousands of businesses over its 34-year history, from luxury fashion brand Golden Goose to digital content company Getty Images.
Carlyle’s credit team has been around since 1999, but over the past four years its investment professionals have come together as a single global unit, organized across verticals and integrated into the larger organization of the ‘business. Its assets under management, meanwhile, increased from $ 29 billion to $ 53 billion.
It happened under the leadership of a new executive, recruited in 2016 by Lee, then Carlyle’s deputy director of private equity investments. Lee had observed the expansion of private credit within private equity firms after the deployment of the Dodd-Frank Act, an extensive regulation enacted in the aftermath of the 2008 financial crisis that included curtailing lending by big banks.
To take advantage, Lee tapped one of Carlyle’s big clients, the Canada Pension Plan Investment Board, where Mark Jenkins headed the global private equity group. Lee hired Jenkins in September 2016, and the seasoned investor switched sides – from sponsor to general partner – and set out to build his team.
“The approach Kew and I agreed on was to build on what we were already doing on the private equity side,” Jenkins told Insider in a recent interview.
At the time, the idea was to reorganize Carlyle’s credit team to work alongside its private equity professionals to gain industry knowledge and business relationships, breaking away from a more siled approach. in which credit executives largely operated on their own.
Jenkins and Lee thought the most attractive offering for investors would be a full line of credit products, from liquid credit to distressed credit and everything in between. Carlyle already had a CLO and a struggling business, but the company wanted to grow them.
Four years later, Carlyle moved staff internally and recruited outside employees at stores like Apollo Global Management, BlackRock and Bain Capital to facilitate a credit expansion that allowed the company to extend a wide variety of business loans. In 2020, Carlyle added 12 credit executives to her group.
This includes funding for Los Angeles arts agency ICM Partners as part of its acquisition of UK sports agency Stellar Group last fall, as well as making $ 95 million available to Zippy Shell, a company moving and storage facilities based in North Carolina, to support its growth initiatives and acquisitions.
Insider spoke to 14 leaders of Carlyle’s new 150-member team and asked them about the trends they see shaping the division.
Correction: A previous version of this article indicated that Carlyle’s credit-managed assets grew from $ 25 billion to $ 53 billion over four years. In fact, assets under management have grown from $ 29 billion to $ 53 billion.
Meet the 14 people who are leading Carlyle’s credit efforts: