Carlyle’s Sandra Horbach Taking Chair Role at Key Buyout Arm

(Bloomberg) -- Sandra Horbach, one of Wall Street’s most prominent women, is ceding day-to-day leadership atop a major Carlyle Group Inc. private equity arm. 

She’ll step away as co-head of Americas corporate private equity and become chair of that arm instead, the firm said Wednesday in a statement. The alternative investing giant is elevating Stephen Wise, the firm’s head of health care, to become co-head of the business alongside Carlyle veteran Brian Bernasek.  

Horbach had been considering shifting out of the co-head role for some time, and decided it was the right moment with the firm’s latest corporate private equity fund now more than half invested. The group oversees Carlyle’s biggest flagship funds.  

Horbach will continue to sit on all investment committees she’s already on and will still focus most of her time at the corporate private equity team. As chair, she’ll work on initiatives such as expanding Carlyle’s retail presence.  

The firm has faced the challenge of persuading investors that it’s maintaining stability at the corporate private equity business while changing its leadership slate. 

The group has had high-profile executive changes and weak returns at one critical fund. Pete Clare, the former chief investment officer of corporate private equity, left last year shortly after Chief Executive Officer Harvey Schwartz took charge. 

Horbach is known as a dealmaker who commanded the investment committee. She drove iconic deals such as Dunkin’ Brands and Beats Electronics and launched a team to support the operations of the corporate private equity group’s portfolio companies.  

She joined Carlyle in 2005, built its consumer and retail team and ascended its ranks to become one of private equity’s highest-ranking female dealmakers. 

Horbach made tough calls along the way. Recently, she played a role in deciding to dismantle its US consumer, media and retail dealmaking team, telling staff the pivot was necessary to improve performance.  

A key buyout fund, invested through the start of the pandemic, has delivered bottom-quartile returns as of September. The firm has improved its returns, according to a person familiar with the matter. 

With Wise becoming co-head of Americas corporate private equity, Carlyle is elevating senior partners Joe Bress and Robert Schmidt as heath care co-heads. 

(Updates with additional context starting in third paragraph)

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