The Carlyle Group

The Carlyle Group Inc.
	File:Carlyle Group logo.svg Logo of The Carlyle Group
Company type	Public
Industry	Private equity, asset management, financial services
Founded	January 1, 1987; 39 years ago in Washington, D.C., United States
Founder	William E. Conway Jr., Stephen L. Norris, David Rubenstein, Daniel A. D'Aniello, Greg Rosenbaum
Headquarters	Washington, D.C., United States
Area served	Worldwide
Key people	Harvey Schwartz (CEO, 2023–present), Kewsong Lee (former CEO), Glenn Youngkin (former CEO)
Products	Private equity, real assets, private credit, alternative asset management
Number of employees	2,200 (2023)
Website	www.carlyle.com

The Carlyle Group Inc. is a global American enterprise that specializes in private equity, alternative asset management, and financial services. As of 2023, its assets under management totaled $426 billion.

Carlyle’s core areas include private equity, real assets, and private credit. Between 2010 and 2015, it led the global rankings for private equity firms based on capital raised, and in 2024, it was positioned sixth in the Private Equity International PEI 300 list.

Established in 1987 in Washington, D.C., Carlyle operates with nearly 2,200 employees spread across 28 offices on four continents as of 2023. The company went public with a $700 million initial public offering on the NASDAQ in May 2012.

Founding and early years

Carlyle was created in 1987 as a boutique investment bank by five founding partners with expertise in finance and government: William E. Conway Jr., Stephen L. Norris, David Rubenstein, Daniel A. D'Aniello, and Greg Rosenbaum. The firm’s name was inspired by the Carlyle Hotel in New York City, where Norris and Rubenstein devised their business plan. Rubenstein, an attorney based in Washington, had served during the Carter Administration; Norris and D'Aniello had backgrounds at Marriott Corporation; Conway was a financial executive at MCI Communications. Rosenbaum exited within the first year, while Norris left in 1995. Rubenstein, Conway, and D'Aniello continue to be involved with the company. Initial funding of $5 million came from investors such as T. Rowe Price, Alex. Brown & Sons, First Interstate Equities, and the Richard King Mellon family.

During its initial phase, Carlyle raised capital on a deal-by-deal basis for leveraged buyouts, including an unsuccessful attempt to acquire Chi-Chi's. Its first dedicated buyout fund secured $100 million in commitments in 1990. The firm also played advisory roles in major transactions like Saudi Prince Al-Waleed bin Talal’s $500 million investment in Citigroup in 1991.

Carlyle established a significant foothold in defense sector acquisitions. In 1992, it purchased General Dynamics’ Electronics division (later renamed GDE Systems), which was sold to Tracor in 1994. The firm acquired Magnavox Electronic Systems from Philips Electronics in 1993 and sold it to Hughes Aircraft Company for approximately $370 million in 1995. Additionally, Carlyle invested in Vought Aircraft through a partnership with Northrop Grumman. Its largest defense-related acquisition was United Defense Industries for $850 million in 1997; this company went public on the New York Stock Exchange in 2001 and Carlyle exited completely by 2004. In recent years, Carlyle has scaled back its investments within the defense industry.

Carlyle during the early 2000s

Carlyle's investor conference coincided with September 11, 2001. It became public that Shafiq bin Laden from the Bin Laden family had been a "guest of honor" and that the family invested $2 million into Carlyle’s $1.3 billion Partners II Fund back in 1995, marking them as relatively minor investors. Following the attacks, these holdings were quickly divested due to concerns over reputation.

The aftermath of the dot-com crash caused a decline in buyout activity; however, it rebounded with major transactions such as the two-stage purchase of Dex Media during 2002 and 2003. Together with Welsh, Carson, Anderson & Stowe, Carlyle led a $7.5 billion leveraged buyout of QwestDex—ranking as the third-largest corporate buyout since 1989—executed through two deals: Dex Media East at $2.75 billion and Dex Media West at $4.3 billion. In 2006, Dex Media was acquired by R. H. Donnelley Corporation.

In January 2003, former IBM and Nabisco CEO Lou Gerstner replaced Frank Carlucci as chairman of Carlyle, serving until October 2008. Gerstner’s leadership was intended to transition Carlyle’s image from one heavily influenced by politics to a professionally managed private equity firm. At that time, Carlyle managed $13.9 billion in assets and delivered annualized returns to investors averaging 36%.

In May 2004, Carlyle purchased Hawaiian Telcom from Verizon for $1.6 billion but encountered regulatory hurdles and operational difficulties that culminated in Hawaiian Telcom filing for bankruptcy in December 2008—resulting in a loss of $425 million for Carlyle.

During the mid-2000s private equity surge, Carlyle competed alongside firms like KKR, Blackstone Group, and TPG Capital. In 2005, it collaborated with Clayton, Dubilier & Rice and Merrill Lynch to execute a $15 billion leveraged buyout of The Hertz Corporation from Ford.

In August 2006, Carlyle partnered with its affiliate Riverstone Holdings and Goldman Sachs Capital Partners to acquire pipeline operator Kinder Morgan for $27.5 billion; this transaction was supported by company co-founder Richard Kinder.

In September 2006, Carlyle spearheaded a consortium including Blackstone Group, Permira, and TPG Capital to acquire semiconductor manufacturer Freescale Semiconductor for $17.6 billion—the largest technology buyout at that time—surpassing SunGard’s deal from 2005. This acquisition faced challenges due to declining Motorola cellphone sales and the impact of the 2008–09 recession on Freescale’s automotive chip business.

Earlier that year in January, Carlyle joined forces with several leading private equity firms such as Blackstone Group and KKR to purchase global information company Nielsen (formerly VNU) for $8.9 billion.

Also during this period, Carlyle acquired Oriental Trading Company—which later filed for bankruptcy in 2010—and Forba Dental Management, which owns Small Smiles Dental Centers, the largest pediatric dental chain in the United States.

2011–2017

In 2011, Carlyle formed a joint venture with the management team of AlpInvest Partners, marking its entry into fund of funds, secondary market investments, and co-investment opportunities. By 2013, Carlyle completed the full acquisition of AlpInvest, integrating it as a wholly-owned subsidiary.

Since 2017

In October 2017, the original founders of Carlyle withdrew from day-to-day management, appointing Glenn Youngkin and Kewsong Lee as co-chief executives effective January 2018. During that same month, Carlyle invested $500 million in Supreme, valuing the brand at $1 billion; Supreme was subsequently sold to VF Corporation for $2.1 billion in 2020.

October 2019 saw Carlyle collaborate with Stellex Capital Management to finalize the purchase and consolidation of shipbuilders Vigor Industrial LLC and MHI Holdings LLC. In June 2020, Carlyle and T&D Holdings jointly acquired a 76.6% ownership in Fortitude Group Holdings, which encompasses Fortitude Re and American International Company Inc. That month also featured Carlyle’s partnership with Unison’s management team to acquire Unison from Abry Partners.

In September 2020, Carlyle secured a controlling interest in Victory Innovations, a manufacturer specializing in sanitizing equipment. At the end of that month, Youngkin retired from his CEO role, leaving Lee as the sole chief executive; Youngkin later assumed office as Governor of Virginia in 2021.

January 2021 marked Carlyle’s acquisition of a majority stake in British video game developer Jagex, known for the title RuneScape. By May 2021, Carlyle partnered with SPX Capital to penetrate Brazil’s private equity sector, with SPX appointed as a subadvisor to Carlyle’s $776 million South America buyout fund.

In March 2022, Carlyle took ownership of Italian motorcycle apparel company Dainese from Investcorp. In May 2022, it announced the $3.9 billion purchase of US government contractor ManTech International, paying a premium of 32% to enhance its recurring revenue base.

August 2022 included the acquisition of bioscience investment firm Abingworth. Later that year in November, Carlyle expanded into marketing services by acquiring global agency Incubeta.

In February 2023, following internal leadership disputes and Kewsong Lee’s sudden exit, Harvey Schwartz was named CEO. That same year, Carlyle invested in Anthesis Group, which provides sustainability consulting services.

September 2023 involved a $221 million tender offer initiated by Carlyle to acquire Tokyo-based paper and ink chemical producer Seiko PMC from its parent company DIC Corporation.

June 2024 saw the establishment of an oil and gas enterprise focused on the Mediterranean region under former BP CEO Tony Hayward, after Carlyle acquired Energean’s assets across Egypt, Italy, and Croatia for up to $945 million.

In October 2024, Carlyle deepened its collaboration with Korea Investment & Securities to source investment opportunities worldwide. By February 2025, Carlyle entered India’s automotive components sector by acquiring a controlling interest in the merged entity formed by Highway Industries and Roop Automotives.

Also in February 2025, Carlyle agreed to purchase gene therapy firm Bluebird Bio through a fund managed by SK Capital Partners.

Changes in Ownership

During its initial quarter-century, Carlyle functioned as a private partnership managed by its investment partners. In 2001, the California Public Employees' Retirement System (CalPERS), which had been an investor since 1996, acquired a 5.5% interest in Carlyle's management firm for $175 million. By 2007, amid a surge in buyouts, this stake's valuation reached approximately $1 billion.

In September 2007, Mubadala Development Company, an investment arm of the Abu Dhabi government, bought a 7.5% share for $1.35 billion. The following year, California lawmakers introduced legislation aimed at preventing CalPERS from investing in private equity firms partially owned by countries with questionable human rights records—a move that specifically targeted Carlyle and Mubadala; however, the bill was eventually withdrawn.

Carlyle launched its initial public offering on NASDAQ in May 2012 under the ticker CG, securing $671 million while overseeing roughly $147 billion in assets. Founders Rubenstein, D'Aniello, and Conway retained their status as the largest shareholders after the IPO.

In June 2017, Carlyle took its non-traded business development company (BDC), TCG BDC, Inc., public—marking the first BDC IPO since 2014.

As of August 2024, Carlyle holds a majority ownership position in Seidor, a technology firm headquartered in Catalonia.

Business Performance

The following table presents key financial and operational data for Carlyle for fiscal years ending December 31:

Year	Revenue (million USD)	Net Income (million USD)	AUM (billion USD)	Employees
2015	3,006	(18)	183	1,700
2016	2,274	6	158	1,600
2017	3,676	238	195	1,600
2018	2,427	93	216	1,650
2019	3,377	345	224	1,775
2020	2,935	348	246	1,825
2021	8,782	2,975	301	1,850
2022	4,439	1,225	373	2,100
2023	2,964	(608)	426	2,200
2024	5,426	1,020	441	2,300

These statistics illustrate Carlyle's shifting business approach and expanding global market presence over time.

Shareholder Structure

Institutional investors hold the majority of Carlyle’s shares—around 63%. As of early 2025, the top ten shareholders are:

Daniel A. D'Aniello (9.10%) – founder and senior executive
William E. Conway Jr. (8.40%) – co-founder and board member
David Rubenstein (8.19%) – co-founder and strategic leader
BlackRock (8.10%)
The Vanguard Group (6.73%)
Capital World Investors (4.91%)
William Blair Investment Management (3.37%)
Morgan Stanley (3.14%)
State Street Corporation (2.16%)
Boston Partners (1.92%)

This ownership configuration highlights strong institutional support alongside significant leadership stakes held by the company’s founders and executives.

Executive Leadership

Chairman: None currently appointed (Daniel A. D'Aniello serves as chairman emeritus)
Chief Executive Officer: Harvey M. Schwartz (appointed February 2023)

Board of Directors

As of May 2025, Carlyle’s board comprises:

Harvey M. Schwartz, CEO
William E. Conway Jr., Co-Founder and Co-Chairman
David M. Rubenstein, Co-Founder and Co-Chairman
Daniel A. D'Aniello, Co-Founder and Chairman Emeritus
Afsaneh Beschloss, Founder and CEO of RockCreek
Sharda Cherwoo, Former Senior Partner at Ernst & Young LLP
Linda H. Filler, Former Executive at Walgreen Co., Walmart, Kraft Foods, and Hanesbrands
Lawton Fitt, Former Partner at Goldman Sachs
James H. Hance Jr., Carlyle Operating Executive and former Vice Chairman of Bank of America
Mark S. Ordan, CEO of Pediatrix Medical Group
Derica W. Rice, Former EVP of CVS Health and President of CVS Caremark
William J. Shaw, Former Vice Chairman of Marriott International
Anthony Welters, CEO of CINQ Care Inc., Executive Chairman of BlackIvy Group

Chairmen Overview

Frank Carlucci (1992–2003)
Lou Gerstner (2003–2008)
Daniel A. D'Aniello (2012–2018)

Former Chief Executive Officers

William E. Conway Jr. and David M. Rubenstein (1987–2017)
Kewsong Lee and Glenn Youngkin (2017–2020)
Kewsong Lee (2020–2022)

Operational Divisions

Carlyle’s activities are structured into three primary divisions:

Global Private Equity – oversees private equity funds dedicated to leveraged buyouts and growth capital investments across multiple regions, encompassing real estate, infrastructure, energy, and renewable sectors.
Global Credit – administers funds focused on distressed debt, direct lending, energy credit, loans, structured credit, and opportunistic credit strategies.
Global Investment Solutions – manages private equity and real estate fund of funds, co-investments, and secondary market transactions through its subsidiary AlpInvest Partners.

Global Private Equity

The Corporate Private Equity division at Carlyle manages leveraged buyout and growth capital funds with sector focuses including aerospace; defense and government services; consumer goods and retail; energy; financial services; healthcare; industrials; real estate; technology and business services; telecommunications and media; as well as transportation.

As of March 31, 2018, this segment advised a total of 23 buyout funds alongside 10 growth capital funds, collectively overseeing $75 billion in Assets Under Management (AUM).

Within Real Assets, Carlyle directs 11 real estate funds spanning the U.S. and international markets, infrastructure and power funds, an international energy fund, four Legacy Energy funds co-advised with Riverstone, plus nine funds advised by NGP. This segment held approximately $44 billion in AUM at the same date.

Global Credit

By December 31, 2024, Carlyle’s Global Credit unit managed $194 billion in assets under management, covering a broad spectrum of private credit strategies. Its key investment focuses include:

Liquid Credit: overseeing collateralized loan obligation (CLO) vehicles.
Direct Lending: concentrating on leveraged financing for companies owned by private equity.
Opportunistic Credit: investing in mezzanine debt and distressed securities.
Real Assets Credit: providing debt financing for infrastructure projects.
Asset-Based Lending: secured lending based on asset collateral.

Investment Solutions – AlpInvest Partners

AlpInvest Partners serves as Carlyle’s global private equity asset management platform with over $85 billion in assets under management as of December 31, 2024. It caters to more than 500 institutional clients worldwide and operates across Primary Fund Investments, Secondary Market and Portfolio Finance transactions, as well as Co-Investments.

The investment portfolio includes leveraged buyouts across large-cap and mid-market segments, private credit, venture capital, growth equity, mezzanine financing, distressed securities, and sustainable energy projects. By the close of 2024, AlpInvest had participated in over 800 private equity funds managed by upwards of 350 firms and was ranked among the top 50 global private equity managers according to PEI 300.

Established in 1999 with headquarters in New York City and additional offices in Amsterdam, London, Hong Kong, Indianapolis, Singapore, and Tokyo, AlpInvest employs more than 260 professionals. It became a Carlyle subsidiary in 2011 after initially operating as a joint venture between Dutch pension funds ABP and PFZW.

Previously owned by Carlyle was Metropolitan Real Estate—a real estate fund of funds platform offering access to over 85 fund managers across North America, Europe, Asia, and Latin America—which was divested to BentallGreenOak in 2021.

Subsidiaries and joint ventures

Carlyle has broadened its range of investments and increased assets under management through strategic acquisitions and collaborative ventures.

Carlyle Capital Corporation

Formed in August 2006 with the objective of investing in U.S. mortgage-backed securities, Carlyle Capital Corporation defaulted on roughly $16.6 billion in debt by March 2008 during the subprime mortgage crisis. This Guernsey-based entity was highly leveraged—reportedly as much as 32 times—resulting in margin calls and creditor interventions when credit markets tightened. Consequently, a forced sale of mortgage-backed assets ensued, which led the Federal Reserve to permit primary dealers to use these securities as collateral for loans, backing up to $200 billion in government-guaranteed securities.

Despite attempts to restore stability, Carlyle Capital ultimately failed when lenders took control of its remaining holdings. On March 16, 2008, Class A shareholders unanimously agreed to initiate compulsory winding up under Guernsey law, appointing a liquidator to oversee asset disposition.

The financial repercussions for the Carlyle Group itself were limited. In September 2017, a court determined that Carlyle executives were not liable in associated legal claims, reinforcing the firm’s legal position following the collapse.

This incident underscores important facets of Carlyle’s risk management and durability throughout periods of financial turmoil.

In documentaries

Carlyle has appeared in Michael Moore’s Fahrenheit 9/11 and William Karel’s The World According to Bush.

In Fahrenheit 9/11, Moore points to Carlyle’s connections with George H. W. Bush and Secretary of State James Baker, both former advisers to the firm. The documentary insinuates that Carlyle profited from the September 11 attacks due to its ownership stake in military contractor United Defense. However, Carlyle clarified that its share in the defense sector was only 7%, which is lower than that of many other private equity firms.

The World According to Bush features an interview with Frank Carlucci discussing Shafiq bin Laden—Osama bin Laden’s estranged brother—who attended Carlyle’s investor conference at the time of the September 11 attacks, illustrating the firm's links with influential political figures.

External links