Updated view on Carlyle (specifically TMT Group)?
Does anyone have an updated view on Carlyle, in particular its TMT group? More specifically:
- It appears there has been turnover across sectors and levels (not just CEO). Does anyone have insight into why this is the case (e.g., culture, compensation, fundraising difficulty)?
- How does the TMT group compare to other teams at Carlyle and at other UMM/megafunds? Seems like they deploy an outsized portion of capital, but how does their performance compare to places like BX or TPG TMT groups?
- Any broader views on Carlyle culture, comp, progression etc.?
Carlyle TMT is interesting in that it is one of the only MF tech groups to do both buyout and growth investments out of the same team. I'm on the tech team of a BB and we target them as a buyer for all multibillion dollar software sell sides, and they seem to be attractive buyers in the eyes of our clients.
According to calpers data, returns are fairly in line with the other megafunds of same scale (KKR / BX). They are obviously much more conservative in paying up for assets than a Thoma or Clearlake would be, positioning them well for the downturn. From anecdotes I've heard, none of their portcos are at risk vs other megafunds putting up some doughnuts in this hype cycle.
It doesn't seem like fund raising has been difficult for them when benchmarked against the broader industry. Quite the opposite: before the downturn, they had planned the largest ever buyout fund raise at $26bn. Now that equities are down, allocators have to reduce investment in the private equity asset class to keep the % exposure to PE constant. It's bad timing for any funds that happened to start fund raising around the beginning of this year vs those who had finished during the peak last year.
Apologies if the above is high level but it can be hard to come across specific information for these groups. It is unlikely the average WSO member would have real insight unless they were an employee.
Can I ask the context for you asking this question? Carlyle is one of the firms that always hires on cycle (at least in the US), and widely considered to be one of the top few firms that one shouldn't think twice about accepting if given the chance. Very unlikely that one would be given the opportunity to split hairs between a Carlyle vs. KKR or BX given the relatively low probability of landing a role at any of those. Are you recruiting internationally? Also curious where you have seen the turnover data? Haven't heard of that aside from the CEO getting forced out by the founders and the guy who left to start SKKY with Kim K.
I work at CG. Just want to pop in and echo the sentiments of the Associate 1 posting above, pretty good holistic viewpoint. There are a few points that I could counter with - I don't work within TMT and understand that different desks structure capital deployments with some of their own margins, but all of them follow the general guideline as the poster said.
What I can touch on slightly is the personnel insweep issues holistically - from an outsider PR perspective alone it's a mini-spectacle, but there's not a huge amount of turnover as compared to similar benchmarked funds. The Youngkin/Lee Co-CEO thing was a news buzz for a bit and so was Simmons' departure to SKYY. The notion that we only hire on-cycle within the U.S. is half-true, but I've brought two people from outside groups onto my team off-cyle, and lateral transitions can happen on any calendar date. There's a large amount of variance across verticals, so I'll attempt to only speak for my direct team.
I'd talk about progression/culture, but I'm an outlier. I was promoted in an extremely fast period of time, which I attribute to my past skillset working on a non-linear path, as well as luck. I'd throw Carlyle at the same general leveling list as a KKR/EQT/BX, but I wasn't offered a position at those - my introduction to Carlyle was made via a referral of an SVP who I'd worked with in the past, and threw my name into the interview stack. I am fortunate that I was able to perform well in the interview room, but on paper, I wasn't a viable candidate who would make it past the screener. Plain and simple: I got lucky.
In my opinion, I love my job. I work with intelligent, fun, and smart people. I find the general concept of what we do fascinating, and while I can't say it's all fun and games I believe not hating your job goes a long way with overall happiness. I plan to stay here for a good bit and am considering venturing into a smaller fund with a higher position, allowing me to operate more to my liking and with less oversight from the corporate machine upstairs.
But in the end, if you get a Carlyle offer - I'd take it. You will meet some insane people here. You will grow and thrive under the support of senior leadership (in my experience), and will feel recognized. I'm not a huge fan of my location - currently in the DC area via HQ, but once you reach a position of importance you may find that you have a lot more say in switching things like that. Best of luck to you and your continual prospects.
Thanks for the details! This was very helpful and it raised a few thoughts.
It seems like, while your view is that turnover is not unusually high, there has been turnover in a few teams. I believe over time several VP/Principal level TMT people have left the firm and what may be a reduction in the FIG team. Perhaps that is standard for a megafund that is operating in a more corporate manner, but seemed odd given the growing fund size. Your view that it is not out of the ordinary is helpful context.
The one follow-up is how do you (or others with exposure) compare a long-term (i.e., if you were to stick around post-associate years) career at Carlyle versus other large UMM/megafunds? It appears that progression here may take longer in most cases but it is obviously a strong brand nonetheless.
I'm glad you found my comment helpful - that's what this website is all about.
You are correct that there have been several departures within TMT specifically that may seem out of the ordinary. It's a mix between general corporate trades and a bit of uncertainty regarding upper management... the points I mentioned last year certainly didn't help. I want to stress that I don't believe this is anything more than an isolated quarterly event. Still, my knowledge is limited, as a) I'm only in the 'know' for a lot of things within my vertical, b) TMT and GFS exist primarily in New York and I can't cross-reference as quickly, and c) what information I do know is only speculative and widely considered NPI. As anonymous as I can be, can't be shouting internal shit on a website, ha!
That being said, I think your second paragraph is a great question and something everyone should consider when deciding to take on a new role. As I mentioned previously, I think not despising your job is a massive part of internal satisfaction and is a direct result of the type of work you produce. Exposure/progression is a massive part of this, and I do understand the frustration and resentment of a seemingly long promotion chain, which is another reason why we've had an influx of associates leave a variety of different deal teams in the past couple of years.
Private Credit, GFS, CMR, and AGS are examples of verticals that may feel the most 'weight' of the re-recruiting process, which is something I've never been a fan of. The idea that you'll need to go through an additional process after <2yrs as an ASO is a large part of the reason that more streamlined UMMs and even some relative MFs are so much more 'sought-after' than us. I'm not sure how long this will last, but it's something that stagnates progression and turns off a lot of people from even applying in the first place. I was lucky not to have gone through this, but I also attribute that to a combination of luck and a non-linear background.
To both you and the other user who replied inquiring about my background - I worked for a general contractor on the construction management side of things in college, with a construction engineering degree. I decided to add a double major with a commercial real estate focus, which led me to a role as a west coast developer. I worked in the capital markets in LA, doing contingency underwriting for a large amount of nine-figure commercial complexes, which was a great experience. I then moved back to the east coast to complete an MBA and was soon hired at a well-known REIT out of New York. Spent some time there before I explored the RE/Infra route of PE, and moved back down to DC to start working for Carlyle, almost four years ago. Although I am anonymous with this comment, pretty damn sure you could find out my profile if you went digging. Got lucky with where I ended up - just trying to soak it all in and do good work.
Switching gears, I'd like to speak positively on the broadness and scope of relationships I've formed while working here. This isn't CG-specific as I'm sure, but it goes to show what kind of people you will encounter and how certain leaves may fall to drastically expand opportunities. This can generally be found at any large MF or UMM with a significant amount of talent, but you get the point. For example, I report directly to a SVP who has been in the PE space for twenty-five years. I often run things by 3-4 key MDs who are nearby, two of which are not in my sector. I have a team of six associates who I manage, all of who come from different backgrounds: two from REIB and the general banking stage, one from CMR at an LMM firm originally in the UK, two former MBB consultants who have worked with the largest real estate groups out there, and an individual from a Subsaharan African Nation who has a background in healthcare financials. The reason I bring these up is to show the diversity of people who I work with directly, and how different kinds of minds can blend together to get this shit done. This doesn't even touch on the connections I've made with people outside the fund - the relationships with our prime representatives, those who have left the group to work in consulting, banking, corporate structure, and financial advising - all of whom I can make a phone call to if I have a friendly question on something that they may have expertise in. The network I have accumulated over the years is vast, and I attribute that to the sheer amount of people I've met throughout this job over the course of my life.
Now again, this isn't CG-specific. You'll encounter this at nearly every MF you choose to work at, should you choose to put yourself out there. I just figured I'd give a shout to the people who have really made my job (and thus my day-to-day life) better. There will always be negatives to working in this space, and there are negatives to working where I do. I just think the gold outweighs the mud, and I'm happy to help those make their own choice.
Best of luck to you and to everyone out there reading this. It's a pretty gnarly world out there, but it's a rewarding job. What you make of it is what will define you!
Lol to be fair I don’t think an MD at Carlyle is trying to impress an intern at a different company