March 2

Carlyle Breaks From Pack, Plans Impact Investing Across Firm

(Bloomberg) — It was a curious moment last year when Carlyle Group Inc., once famous for bold bets on defense contractors, hired one of the more prominent names in socially responsible investing.

Megan Starr is a Goldman Sachs Group Inc. alum known to appear on stages at gatherings like the SXSW film festival to proselytize the virtues of environmental, social and governance investing. Now she’s at a firm with no plans to join the rush of private equity titans launching impact funds.

Instead, Carlyle says, the 32-year-old is going to help reshape its broader portfolio.

Carlyle Group is wading into the ESG movement with a markedly different strategy than rivals such as KKR & Co., TPG and Bain Capital, which have set up dedicated funds to make impact investments. As wealthy families, pensions and sovereign wealth funds ratchet up pressure on private equity firms to make more conscientious decisions, Carlyle is embracing the idea that ESG principles can burnish long-term returns across the board.

Photo credit: Helloquence

Source: Yahoo Finance (link opens in a new window)

ESG, impact investing