The hire follows a series of setbacks in Carlyle’s global market strategies arm, which encompasses much of the firm’s investing outside of private equity and real estate. Like its peers, the firm has expanded beyond its roots in corporate buyouts over the years, seeking to diversify, boost assets and appeal to shareholders following its 2012 initial public offering.
Global market strategies has been a sore spot for Carlyle, largely because of struggles at its hedge funds Claren Road Asset Management, Vermillion Asset Management and Emerging Sovereign Group. In May, Mitch Petrick stepped down from a role running the $ 34.7 billion business. Carlyle tasked longtime private-equity executive Kewsong Lee to rebuild it and has said it is reviewing options to improve the unit’s performance.
Overall, global market strategies’ funds have fallen in four straight quarters, including a 12% decline the first three months of the year.
Jenkins is focused on the unit’s credit investing, which includes energy lending, providing capital to mid-sized companies and bets on distressed debt.
Credit is an “established, profitable business” for Carlyle, Lee said in an interview. “Mark’s hiring makes a strategic statement that we are committed to investing in and growing the credit platform.”
Carlyle has been active in collateralised loan obligations, distressed investing and other areas of credit over the years. It may seek to build on its nascent debt business in Europe or providing bonds and loans to small companies or those with atypical capital needs.
During his eight years at CPPIB, he built the pension fund’s direct lending business and oversaw its $ 12 billion acquisition of General Electric’s private equity lending business, Antares Capital. Before that, Jenkins co-led Barclays’ leveraged finance business in New York and worked in Goldman Sachs’s finance and fixed-income departments.
CPPIB, like other Canadian pensions, takes stakes in funds managed by Carlyle and other firms but also directly invests in companies and other assets. In recent years, the pension has invested in department-store chain Neiman Marcus Group, retailer 99 Cents Only Stores and healthcare information technology company IMS Health.
CPPIB promoted managing director Shane Feeney to global head of private investments, succeeding Jenkins, according to a statement.
Write to Matt Jarzemsky at firstname.lastname@example.org
This story was first published by The Wall Street Journal