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Carlyle CEO wants capital markets expansion

New Carlyle Group chief executive officer Harvey Schwartz wants the private equity giant to expand its capital markets arm, which acts as an in-house investment bank and secures loans for portfolio companies, according to a report by Bloomberg.

New Carlyle Group chief executive officer (CEO) Harvey Schwartz wants the private equity giant to expand its capital markets arm, which acts as an in-house investment bank and secures loans for portfolio companies, according to a report by Bloomberg.

The moves is deigned to recoup some of the roughly $1 billion in annual fees Carlyle currently pays to banks.

The report quotes former Goldman Sachs Group co-president Schwartz as saying at a recent investor conference that: “It’s kind of obvious white space. Why aren’t we bigger already?”

Carly’s capital markets arm generated about $50 million in fees last year by arranging and placing debt for its own portfolio companies. Other banks and investment firms meanwhile have much larger operations with Carlyle’s biggest nonbank rival, KKR & Co making $600 million from capital markets in 2022. 

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