Washington DC-based Carlyle Group has appointed international trade and policy expert David Marchick as its first-ever global head of regulatory affairs.
Marchick will work with Carlyle and its target companies during the investment process to ensure they comply with government regulations in whatever country they are located – a role that was necessitated because of Carlyle's rapid global expansion, he says.
“As Carlyle continues to grow and the size of the deals they're doing continues to grow, the complexity also increases,” Marchick says. “The transactions are often multi-jurisdictional … they touch more people and more stakeholders.”
Complex, cross-border transactions are his forte, Marchick says. “My specialty has been working to identify the issues that a particular transaction might trigger and finding ways to resolve those issues,” he says.
Previously a partner in the Washington DC office of international law firm Covington & Burling, Marchick advised on big-ticket transactions including Carlyle's recent sale of aviation assets to Dubai Aerospace Industries, Saudi Arabia Basic Industries' acquisition of GE Plastics and IBM's sale of its PC division to China's Lenovo.
In addition to identifying and solving regulatory issues for Carlyle and its portfolio companies, Marchick will lobby lawmakers at a time when private equity firms such as Carlyle are receiving increased scrutiny around the globe. The day Marchick's appointment was announced, Carlyle was picketed by the US' largest healthcare workers union with regard to its $6.3 billion acquisition of HCR Manor Care, a nursing home chain. The union alleges that conditions have worsened for nursing home residents post-buyout.
Before joining Covington & Burling in 2002, Marchick was special assistant to US trade representative Mickey Kantor and deputy assistant secretary of state for trade policy in the Clinton White House. While there, he coordinated efforts to secure the passage of the North American Free Trade Agreement (NAFTA) and World Trade Organisation (WTO) as a member of the National Economic Council.
Carlyle co-founder David Rubenstein has long advocated that private equity make an effort to engage the public and better explain itself, a need that Marchick claims to be conscious of as well. “I think explaining the value creation of private equity to policymakers, not only in the United States but abroad, is going to be a high priority,” he says.
BLACKSTONE HIRES FINANCING, TECH PROS
The Blackstone Group has appointed leveraged finance pro Vikrant Sawhney as a managing director in the firm's private equity group. As a former managing director in Deutsche Bank's financial sponsors group, Sawhney worked with Blackstone on transactions including Celanese, Cumulus Media, Houghton Mifflin, Nielsen (formerly VNU), as well as the $11 billion buyout of SunGard Data Systems. Upon graduating from Harvard Law School, Sawhney worked principally on LBOs at the corporate finance department at law firm Simpson Thacher & Bartlett and later joined Bankers Trust's financial sponsors group. He joins a number of pros who are increasingly coming inhouse to focus on financing activities at private equity firms. Blackstone has also boosted its capability to join the technology buyout trend with the appointment of 30-year industry veteran Mark Woodward to source and evaluate deals. He will be based in the San Francisco Bay Area. Immediately prior to joining Blackstone, Woodward was president and chief executive of Serena Software, where he led the company through an extensive growth period.
AXELRAD, FORE LEAVE WILSON SONSINI
Venture capital fund formation luminaries Jonathan Axelrad and Robert Fore have left Silicon Valley law firm Wilson Sonsini Goodrich & Rosati for Goodwin Procter, and will be followed by counsel Gerald Chacon Jr. The departures come amid option backdating scandals that have affected Wilson Sonsini's clients, including Apple and Brocade Communications. The trio are noted venture capital fund formation lawyers whose clients include Sequoia Capital, Clearstone Venture Partners, Trident Capital and VantagePoint Venture Partners.
SVB CAPITAL ADDS TWO PARTNERS
The private equity arm of SVB Financial Group has hired John Dominguez of Hill Capital Management and Vincent Williams of Northern Trust Global Investments. Dominguez will work primarily in the firm's fund of funds business, where he will broaden SVB's focus to include later-stage private equity, growth capital and buyouts. Williams will work in both direct investments and fund of funds, and will be responsible for product development as well as fundraising. SVB is headquartered in Santa Clara, California and has 27 US offices in addition to locations in India, China and the UK. Its family of funds exceeds $1 billion (€710 million).
PINE BROOK HIRES FIRST RESERVE PRO
Pine Brook Road Partners is expanding its six-person team with the hire of Craig Jarchow as a managing director. Jarchow was previously a director at First Reserve Corporation, an energy-focused private equity firm he joined in 2004. Prior to that, he held various oil industry roles with Apache Corporation and Amoco Corporation. He is a also a senior lecturer at the Sloan School, a Fellow of the Geological Society of America, and serves on the Stanford School of Earth Sciences Petroleum Investments Committee. Established last year, the energy- and financial services-focused Pine Brook is led by Howard Newman, former vice chairman of Warburg Pincus.
PE PROFESSIONALS FILL FORBES 400
More than two dozen of the individuals on Forbes' list of the 400 richest people in the US have direct ties to the private equity industry. The Blackstone Group's chief executive Steven Schwarzman, whose $7.8 billion personal fortune has been widely publicised this year, ranked at number 40, while Apollo's Leon Black came in at number 82 with $4 billion. Henry Kravis and George Roberts of Kohlberg Kravis Roberts tied for 57th with $5.5 billion each, while their erstwhile partner Jerome Kohlberg was ranked 317th equal with $1.5 billion. TPG founders David Bonderman and James Coulter ranked 105th and 135th, with personal fortunes of $3.3 billion and $2.8 billion, respectively. The Carlyle Group's founders, William Conway, Daniel D'Anniello and David Rubenstein all tied for 165th place with $2.5 billion each, as did Blackstone's Peter Peterson. Blackstone president Hamilton James came in at 317th equal with $1.5 billion. Alec Gores of Gores Group, Wilbur Ross of WL Ross & Co., Thomas H. Lee, of Lee Equity Partners, Howard Marks of Oaktree Capital Management and Thomas Hicks of Hicks Holdings also made the list.
CALPERS PRO TO BECOME ILPA CHAIRMAN
The Institutional Limited Partners Association (ILPA) has elected Joncarlo Mark of the California Public Employees' Retirement System (CalPERS) to be its next chairman. Mark is currently the $250 billion (€173 billion) pension plan's senior portfolio manager for alternative investments. Mark has been with CalPERS since 1999, before which he spent six years at Premier Farnell, a global electronics and industrial products company. Mark started his tenure as ILPA's chair on 11 October, replacing outgoing chair Mark Wiseman. Wiseman leads private equity and infrastructure investments for the Canada Pension Plan Investment Board. Mark has been involved with ILPA for the past five years as membership chair and vice chair. As chairman, Mark says he will focus on ILPA's research and education platforms.
LARSEN SWITCHES FROM CERBERUS TO MOELIS & CO
Moelis & Company has hired Cerberus Capital Management's Kurt Larsen to head its private equity business. The firm held a first close on $1.8 billion (€1.3 billion) for its debut fund this September. Larsen has been a managing director at Cerberus since 2003. There he focused on mid-market private equity and subordinated debt investments. Before joining Cerberus, Larsen was a managing partner at Black Diamond Capital Partners, an insurance industry-focussed firm he founded in 1997. Prior to founding Black Diamond he was a principal at mid-market private equity firm Aurora Capital Group.