Carlyle CEO Kewsong Lee on what’s driving the stock’s run and

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Kewsong Lee is closing out one trip around the sun as sole CEO of The Carlyle Group. It was a unique year for the private equity firm — which oversees more than $270 billion in private assets — with the multitude of challenges brought on by the pandemic. However, the market has been rewarding Lee and his stock price, with Carlyle nearly doubling over the last year. 

Here’s Kewsong Lee on the stock’s performance, keeping up with the rapid pace of dealmaking in his industry during his inaugural year, and how he’s shaping Carlyle into a more modern type of private equity firm. 

(The content below has been edited for length & clarity)

Leslie Picker: It has been quite a year for you as CEO. Of course, the pandemic has created its own sorts of challenges, yet Carlyle’s stock price up more than double since its pandemic lows around April 1 or so of 2020. Were you surprised by the recent stock price performance? And what do you attribute that to?

Kewsong Lee: We’ve got our strategic plan, all our priorities, and we’re working hard and the team’s doing a great job. We’re very focused on being the best investment firm we can be. We’re very focused on operating the firm better than we’ve ever managed to before in the past. And, you know, we’re pleased that the results are starting to show. But there’s lots of work to do, a lot more work to do to execute and continue that momentum. And I’m confident with the team that we’ve got and all the hard work, it’s going to continue to accelerate.

Picker: How is it working so far with regard to people being in the office? I know, you made the announcement that employees have to be fully vaccinated, you were quite early on that front. But are you finding that culturally, it’s possible to really work that way, especially as you’re doing diligence, as you’re doing — sourcing deals, as you’re meeting with clients, meeting with LPs? I mean, is private equity possible, in this kind of hybrid fashion?

Lee: Health and safety is the number one priority, so that goes above all else. But we’ve now been managing through a pandemic, globally. We’re in five continents, over 30 offices, and we’ve been seeing how to manage through this in different cultures, different areas, different industries. And we’ve adapted, we pivoted. We’re using the best of virtual, we’re using the best of physical meetings in safe ways and we’re able to move faster. We’re able to pivot because of all of our expertise and we’re able to bring quickly on to situations. And so I think the pandemic has forced us all to be better. 

Picker: On your last earnings call you spoke about how velocity has increased in virtually all areas of your business. You noted that deals are completed on shorter timelines, financings executed more quickly, exits possible much sooner than before. Funds are raised faster and we’ve seen basically a record amount of dry capital right now, dry powder. What do you…