The Carlyle Group has appointed JPMorgan Chase & Company co-chief executive officer Michael Cavanagh and Carlyle chief operating officer Glenn Youngkin as co-presidents and co-COOs of the firm, according to a statement.
The role of president is a new position at Carlyle, where Cavanagh and Youngkin will develop and implement the firm’s global day-to-day operations.
Cavanagh, who leads JPMorgan’s corporate and investment banking business, will also join Carlyle’s Executive Group, which includes co-CEOs William Conway and David Rubenstein, Youngkin and three other Carlyle executives. Cavanagh will assume the role this summer and will be based in New York. He has also worked as CEO of JPMorgan’s treasury and securities services division and as chief financial officer. He was previously at JPMorgan’s predecessor Bank One and Citigroup.
Youngkin joined Carlyle in 1995 and served as interim principal financial officer and global head of the industrial sector investment team prior to becoming COO in 2011. He previously worked at McKinsey & Company and in the investment banking group at CS First Boston. Youngkin will become co-president this summer and will work from the firm’s Washington DC office.
The new appointments follow Carlyle’s best year of fundraising since 2007. The firm raised $22 billion in new capital in 2013, Rubenstein said during an earnings call last month. The firm’s carry funds also raised more than $14 billion for the year.
“Along with market appreciation, this helped drive our total assets under management to $189 billion, up 11 percent over the prior year, and that is after distributing more than $17 billion during the year to our investors,” Rubenstein said.
In 2014, Carlyle expects to raise between $15 billion and $20 billion and anticipates holding first closes for its Asia, Europe and Japan buyout funds. Carlyle’s latest US buyout fund closed on $13 billion, above its $10 billion target, last November. Its sub-Saharan Africa fund also exceeded its $500 million target and is expected to close soon on between $700 million and $750 million.
“Our 2013 performance was better than we had anticipated earlier in the year because of the growing strength during the year of our portfolio, especially that part of our portfolio that included the 11 carry funds and hedge funds,” Rubenstein said. “Our performance also exceeded our prior outlook because some of the exit activities that we earlier expected would occur in future periods in fact occurred in 2013.”
Carlyle was unavailable for comment at press time.