Carlyle’s Schwartz keys in on private wealth as growth tool

'I’m personally spending a fair amount of time in this space,' Carlyle CEO Harvey Schwartz said. 'It’s a big initiative for me.'

Carlyle CEO Harvey Schwartz described the private wealth channel as a “big initiative” for the firm as it aims to grab more investment dollars from high-net-worth individuals.

Private equity managers have long relied on institutional investors for their capital-raising needs. But many GP eyes have turned to the wealthiest individual investors to inject fresh capital into fundraising and other opportunities.

Schwartz discussed Carlyle’s developing private wealth channel in the firm’s third-quarter earnings call held on November 7. Buyouts listened to a broadcast of the call.

“I’m personally spending a fair amount of time in this space,” he said. “It’s a big initiative for me.”

According to Schwartz, private wealth’s small percentage of the private fund ecosystem makes it ideal for long-term growth prospects: “As an industry, we have to be thoughtful as capital migrates into this sector.”

This year, Carlyle has taken several steps to build out its private wealth strategy.

In July, the firm announced hiring Shane Clifford as head of its private wealth strategy. Clifford previously worked at Franklin Templeton, where he was responsible for growing the alternative strategies segment and managing the product development and retail distribution strategy.

Carlyle also recently announced a partnership with fintech platforms iCapital and Allfunds that will allow Allfunds clients to access Carlyle’s private market investments.

Carlyle reports raising more than $40 billion in the high-net-worth marketplace.