David Zweiner, co-head of The Carlyle Group’s nascent global financial services group, will leave the firm to become the chief financial officer of Wachovia, the fourth largest US bank in terms of assets, effective 1 October.
The departure comes a little more than a year after he joined Carlyle's global financial services group, which was formed in June 2007 to make the firm a “serious investor” in the financial services sector, and as the firm is raising a debut fund for the division, which is expected to close with more than $1 billion, according to a report in the Wall Street Journal. The group had also started to deploy its capital, announcing in July that it would take a $75 million stake in publicly listed wealth management company Boston Private.
Zweiner has co-led the division with Oliver Sarkozy, former head of the financial institution group at UBS. Under their watch, the group grew significantly, to 10 investment professionals as of 27 June, when Carlyle named James Burr as a managing director in the group. Burr was previously the corporate treasurer of Wachovia.
A Carlyle spokesman confirmed that following Zweiner's departure Sarkozy will be the sole head of the firm's global financial services group.
At Wachovia, Zweiner will report to the firm’s new chief executive officer Robert Steel, who was appointed to the position following the departure of former CEO Ken Thomson amid turmoil at the North Carolina-based bank. In July, Wachovia announced a second quarter loss of $8.9 billion (€6.2 billion), cut its dividend and eliminated 10,750 positions following losses in its mortgage unit. The firm had assets of $812.4 as of 30 June 2008.
Zwiener has worked in the financial services industry for 30 years, most recently with Hartford and before that with ITT Financial Corporation and Heller International.