Carlyle Group Restructure Signals Fundraising Restart
Carlyle Group has restructured the leadership of its European private equity platform following underperformance from its previous vintage, according to a report by the Financial Times, as the firm added nine hires to the team last year and plans to bring on two additional senior professionals. This overhaul includes replacing co-heads Marco De Benedetti and Jonathan Zafrani with Michael Wand, a long-serving executive credited with leading some of Carlyle’s top-performing vehicles, while the firm, which manages nearly $480bn in assets globally, prepares to relaunch fundraising for its flagship European buyout fund after a two-year pause.
Details of the Restructuring
The US firm’s recruitment drive added nine hires to its European private equity team last year, with expectations of two more senior professionals joining, as part of efforts to address underperformance in its 2018 European buyout fund, which has faced difficulties exiting investments. Carlyle’s 2018 fund has seen its internal rate of return enter negative territory by December 2025, leading to the suspension of fundraising for the next fund after securing only $1.2bn at first close in 2024, compared to the €6bn raised by its predecessor. According to Private Equity Wire, market observers view this as a sign that Carlyle is gearing up for a fundraising relaunch.
Reasons Behind the Changes
The restructuring stems from underperformance in Carlyle’s 2018 European buyout fund, which has struggled with investment exits, prompting the firm to overhaul its investment team and replace its co-heads. Earlier attempts to raise the next fund stalled, with the process suspended to allow for these leadership changes, as the firm shifts focus under Michael Wand, who is expected to deploy the fund’s existing capital in the coming months. As a widely known practice in private equity, such adjustments often follow performance setbacks to realign strategies.
Future Investment Focus
Under the new leadership, Carlyle plans to shift its European private equity investment focus toward technology, healthcare, professional services, and advanced industrials, while scaling back on consumer-oriented deals, with Michael Wand leading the deployment of existing capital. This strategic pivot follows the firm’s decision to suspend fundraising, according to Private Equity Wire, and builds on Carlyle’s global asset management scale of nearly $480bn to potentially strengthen future fund performance.
