Carlyle hires FoF chief from Morgan Stanley

The Carlyle Group has hired president of Morgan Stanley Alternative Investments Partners Jacques Chappuis as a managing director and head of the firm’s Solutions business, formerly known as Carlyle's Fund of Fund Solutions. He will join Carlyle’s New York office in May.

Chappuis has held the title of president of Alternative Investments Partners, Morgan Stanley’s $29 billion fund of funds business, since 2009. Prior to becoming president, he was head of Alternatives Investments at both Morgan Stanley and Citigroup’s wealth management organisations. 

In the newly created position at Carlyle, Chappuis will be responsible for creating new investment products to be housed in the firm’s Solutions business, which will no longer be comprised solely of fund of funds. A number of existing Carlyle products will also be consolidated into the Solutions business, such as separately managed accounts. 

Carlyle’s Solutions business, one of the firm’s four business segments after Corporate Private Equity, Real Assets and Global Market Strategies, will also include portfolio advisory and risk management services “and other new initiatives that facilitate third party access to Carlyle funds”, according to a statement.

Chappuis will be tasked with building upon Carlyle’s existing partnership with Dutch private equity fund of funds AlpInvest much in the same way Michael Petrick led the firm’s expansion of Carlyle’s credit business beginning in 2010. Petrick, who also joined Carlyle from Morgan Stanley, began centralising the firm’s various debt teams into what is now Global Market Strategies when the firm’s credit-related funds totaled $13 billion in assets. Today, Carlyle’s Global Market Strategies manages $32 billion.

The firm is coming off a strong year in 2012 in which it raised $14 billion, more than twice the amount raised the previous year, and generated $18.7 billion of carry fund realisations, just north of the $17.6 billion recorded in 2011.