Insider Finance - Business - Wall Street: When PE chiefs call time

The latest in finance.
View in browser


Hi. I'm Aaron Weinman. Kewsong Lee, Carlyle's chief executive, will step down and leave the private-equity firm with immediate effect, months before the scheduled end of his five-year contract.

Lee — considered a Carlyle change agent — reshaped the investment giant, but struggled to lift its share price near peers like Blackstone, KKR, and Apollo.

Let's dive in.

If this was forwarded to you, sign up here. Download Insider's app here.

Kewsong Lee, Carlyle Group

1. Kewsong Lee, Carlyle's chief executive, has called time on his journey with the private-equity firm. Carlyle, which manages $376 billion in assets, named William Conway, a co-founder and former CEO of the firm, as interim chief executive until a replacement is found.

Under Lee's leadership, Carlyle reduced the number of funds it managed, integrated its buyouts and growth-investing groups last year, placed a heavy emphasis on growing its capabilities in credit, and hired Mark Jenkins from the Canada Pension Plan Investment Board to lead the credit platform.

Carlyle's credit arm swelled to $143 billion last quarter, almost double the amount at the same time last year. It was the first time the credit division surpassed Carlyle's private-equity arm.

Two of Carlyle's senior dealmakers have also departed the firm. Jay Sammons, the head of consumer, media, and retail, left the company to start a new venture, while Ashley Evans, a partner in Carlyle's tech, media and telecommunications group, left to join Francisco Partners, Bloomberg reported on Monday.

Despite Lee's efforts, Carlyle's share price has lagged behind peers like KKR, Apollo, and Blackstone. His abrupt departure also highlights the difficulty some private-equity firms face when transitioning from their founders.

Conway and fellow co-founder David Rubenstein handed the reins of co-CEO to Lee and Glenn Youngkin. Carlyle lost Youngkin just a few years into his role after he pivoted to a career in public service — Youngkin became governor of Virginia in January — and now Lee is stepping down.

Apollo, too, has had to deal with the aftermath of its founder Leon Black's association with now-deceased financier Jeffrey Epstein, while KKR transitioned away from co-founders Henry Kravis and George Roberts last October. Blackstone founder Stephen Schwarzman is still CEO, but he is highly likely to pass the baton to his trusted lieutenant, Chief Operating Officer Jon Gray, one day.

In other news:

A row of homes in suburban America

2. Investors like Bain Capital and Redwood Trust plan to "revolutionize" how people tap into $28 trillion in home equity. Many folks who have seen their home values soar want to cash in on their equity.

3. Property firm Adler threw parties on the Côte d'Azur and yacht trips to impress finance folks. Wall Street banks pocketed healthy fees from Adler's bond deals, but some of the funds they sold to are staring at losses, according to this writeup from Bloomberg.

4. Venture-capital firms like Lightspeed are raising funds at a record pace. Even with economic uncertainty, company layoffs, and a slow IPO market, VCs are on track to beat their fundraising highs of 2021.

5. Y Combinator's head of admissions is looking at more than 10,000 startups for its next cohort. Stephanie Simon shares her advice for founders applying in a downturn.

6. BlackRock is opening a South Florida office, per the Wall Street Journal. The money manager's head of fixed income and about 35 staff are expected to start working from a location in West Palm Beach next year.

7. Cox Enterprises will purchase digital-media company Axios for $525 million. Axios' founders Jim VandeHei, Mike Allen, and Roy Schwartz will continue to run the company.

8. US regulators are weighing new rules for regional banks, which could complicate merger plans. The Federal Reserve and Office of the Comptroller of the Currency are discussing whether regional lenders should hold more long-term debt that would help them absorb losses in a downturn, the Wall Street Journal reported.

9. Tom Brady bought a Bored Ape NFT for $430,000 in April. He's lost at least $194,000 on it since then.

10. Jeff Bezos has amassed a $166 billion fortune since founding Amazon in 1994. From underground clocks to flying to the edge of space, here's how he has spent that money.

Done deals:

  • Industrial products manufacturer J.M. Huber has agreed to buy the Biolchim Group from NB Renaissance, Chequers Capital, and the Biolchim Group management team. Jefferies is advising J.M. Huber.
  • Pfizer has agreed to acquire Global Blood Therapeutics for approximately $5.4 billion. Morgan Stanley and Goldman Sachs are advising Pfizer, Wachtell, Lipton, Rosen & Katz is legal counsel. JPMorgan and Centerview Partners are advising GBT, while Cravath, Swaine & Moore and Goodwin Procter are legal advisors.

Curated by Aaron Weinman in New York. Tips? Email or tweet @aaronw11. Edited by Hallam Bullock (tweet @hallam_bullock) in London.

Download on the app store   Get it on google play

Older messages

The Great Salary Convergence is driving up salaries

Tuesday, August 9, 2022

Paying people based on where they live never made a ton of sense... Read on INSIDER INSIDER Subscribe INSIDER FEATURED ARTICLE ECONOMY Welcome to the Great Salary Convergence — a seismic

Walmart was riding a pandemic high for nearly two years. Then it laid off hundreds — here are 3 issues that have plagued the company.

Monday, August 8, 2022

Walmart CEO Doug McMillon previously sounded the alarm for investors on issues around overstaffing and inflation. View in browser Business Insider Business Insider Business Insider Subscribe Business

Wall Street: Bankers’ wallets to take a hit

Monday, August 8, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Hi. I'm Aaron Weinman. I want to talk about Wall Street folks' wallets. Investment bankers enjoyed some

A disabled Spirit Air passenger spotted his wheelchair with baby strollers piled on it before a flight. It was badly damaged when returned.

Saturday, August 6, 2022

Jesus Centeno uses a wheelchair due to a spinal cord injury. The chair was broken during a Houston flight leaving him "unable to do anything." View in browser Business Insider Business

A New York Times reporter who writes about searching for homes in the Big Apple was sued, with her landlord saying she stopped paying rent on a $3,000-a-month Upper West Side apartment

Friday, August 5, 2022

Joyce Cohen — the author of the Times' real-estate column, "The Hunt" — is being sued by the couple who sublet her and her husband a Manhattan pad. View in browser Business Insider

🐚 Shell-shocked

Thursday, October 6, 2022

Shell gave a profit warning | Retail sales dropped in the eurozone | TOGETHER WITH Hi Reader, here's what you need to know for October 7th in 3:10 minutes. ☕️️ Hopefully your daily Finimize

Safe haven no more

Thursday, October 6, 2022

Bloomberg Evening Briefing View in browser Bloomberg Equities found little encouragement to sustain any rebound attempt on the eve of the all-important US jobs report, with major benchmarks finishing

Nobel laureate Paul Krugman warns the Fed risks going too far in fighting inflation - and predicts a return to rock-bottom interest rates

Thursday, October 6, 2022

The renowned economist noted that rate hikes have a delayed effect, and the US labor market is showing signs of cooling down. View in browser Business Insider Business Insider Business Insider

Wall Street: Musk-Twitter saga winners and losers

Thursday, October 6, 2022

The latest in finance. View in browser INSIDER INSIDER Subscribe 10 THINGS ON WALL STREET Hi! This is Dan DeFrancesco checking in from New York. For those who observed the high holy day yesterday,

The Daily StockTips Newsletter 10.06.2022

Thursday, October 6, 2022

(Published 7:30 AM ET MON-FRI) ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

[New post] Bitesize: Riding the waves: the breadth of global monetary policy changes

Thursday, October 6, 2022

BankUnderground posted: " Shaheen Bhikhu and Thomas Viegas Central banks respond to inflation by setting interest rates in order to achieve domestic price stability. Occasionally, economic shocks

FinTech Weekly Issue #384 - Tougher Regulations & Lower Investments

Thursday, October 6, 2022

Issue #384 - Tougher Regulations & Lower Investments 2022-10-06 More regulatory actions could benefit banks, and fintech companies do not face just this problem. In 2022, investments in fintech

‘Collision course’

Wednesday, October 5, 2022

Bloomberg Evening Briefing View in browser Bloomberg One giant options transaction may have sparked the S&P 500's huge midday bounce Wednesday. The trade, which involved buying and selling call

🤐 What Twitter isn't telling you about Credit Suisse

Wednesday, October 5, 2022

The WTO predicted a trade slow-down | Tesco's profit showed off its best limbo attempt | TOGETHER WITH Hi Reader, here's what you need to know for October 6th in 3:11 minutes. 🙋‍♀️ Even old-

Issue #163: Christmas shopping with a PSL in hand

Wednesday, October 5, 2022

plus a Missouri sign war + bear snack ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌