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The Wall Street veteran will replace co-founder and interim CEO Bill Conway, who will remain co-chairman of the board, Carlyle said.
Schwartz retired from Goldman Sachs in 2018 after a 20 year-career at the investment banking giant.
He was the president and co-chief operating officer at the time of his retirement. Prior to that, he was the bank’s chief financial officer and was once considered a frontrunner to replace former CEO Lloyd Blankfein.
Investors will be examining the direction the company, which is viewed as having underperformed some of its rivals, takes under Schwartz after the sudden departure of former CEO Kewsong Lee.
Lee left the firm last August after a clash with the company’s board over a new contract, a person familiar with the matter told Reuters.
Schwartz is taking the helm at a crucial juncture for private equity companies, when a stock market rout triggered by fears of an economic downturn has made it tougher to cash out on investments.
On the other hand, buyout firms sitting on billions of dollars of unused capital have also been snapping up publicly listed companies, taking advantage of cheaper valuations.
“We would view the conclusion of this (CEO) search as a positive,” Jefferies analysts wrote in a note.
However, there will be a “necessary grace period to better understand any new strategic initiatives,” they added.
Carlyle shares were up 1.6% at $38 in light premarket trading on Monday. As of last close, they have gained over 25% so far this year.
