Carlyle Group has replaced the leadership of its flagship European private equity fund, signaling a strategic reset after the disastrous performance of its 2018 vintage stalled fundraising for years. The US firm hired nine new team members last year and plans to recruit two more senior figures to complete the investment team, according to market sources. This overhaul comes as Carlyle, managing nearly $480bn globally, prepares to resume raising capital for its European buyout strategy after a two-year hiatus.

The 2018 fund, which Carlyle hasn't deployed any of its $1.2bn raised commitments, delivered a negative internal rate of return and struggled to exit investments, with holdings exiting at just 1.1 times cost. Michael Wand, a long-time European technology co-head, now leads the fund, shifting focus from consumer deals to technology, healthcare, professional services, and advanced industrials. Wand also aims to enhance portfolio company engagement and improve coordination with Carlyle's capital markets and operating teams. The fund's previous co-heads, Marco De Benedetti and Jonathan Zafrani, were replaced as Carlyle fell behind rivals like Blackstone and KKR over the past decade, though its stock has rebounded about 8% since 2023 under CEO Harvey Schwartz.