Women Leaders

Sarah Schwarzschild, The Carlyle Group

Sarah Schwarzschild

Secondary Transactions

Editors’ Note

Prior to joining Metropolitan, Sarah Schwarzschild led Partners Group’s real estate Secondary team in the U.S. and was involved in management and business development activities for the real estate Secondary practice globally. Schwarzschild received a B.A., summa cum laude, from the University of Pennsylvania and an M.B.A. with honors from the Tuck School of Business at Dartmouth.

Firm Brief

The Carlyle Group (carlyle.com) is a global alternative asset manager with $212 billion of assets under management. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – corporate private equity, real assets, global market strategies and investment solutions. The Carlyle Group employs more than 1,600 people in 31 offices across six continents.

Will you discuss your role at Carlyle and your key areas of focus at the firm?

I am a Managing Director and the Global Head of Secondaries at Metropolitan Real Estate. Metropolitan is Carlyle’s real estate private equity multi-manager platform. I joined Metropolitan in 2014 to establish the secondaries business. Metropolitan currently manages more than $1 billon in investor commitments for secondaries and my responsibilities include overseeing investment strategy, sourcing and execution. I also wear several other hats. I am a member of Metropolitan’s Investment Committee, which makes the investment decisions for all of our strategies. Metropolitan has a 40+ person team and I am involved in running the organization on a day-to-day basis. I work closely with our investors to ensure we are meeting their needs. I am also the Co-Chair of the New York Women’s Employee Resource Group.

Will you describe Carlyle’s real estate Secondary efforts?

Secondaries are transactions through which existing interests in funds or assets are acquired, providing liquidity to the original investor. These types of transactions are an increasingly important part of the broader real estate private equity market with global real estate secondary transaction volumes at $5 to $6 billion annually. However, the secondary market remains relatively inefficient at a time when pricing has increased in the traditional real estate market. Metropolitan is a real estate investor in its DNA and we are highly selective. Whether in secondaries or in our other strategies, we focus on high quality, well-located assets in major markets and work with the most capable local sponsors in the industry.

Will you highlight Carlyle’s sourcing, evaluation and execution of investment opportunities globally?

Metropolitan utilizes a very proactive sourcing effort to find attractive deals for our investors. Underpinning our secondary investment strategy are the market relationships that Metropolitan has cultivated since it was founded in 2002. We also have a global team with market presence in the U.S., Europe and Asia. These are all irreplaceable assets in sourcing, evaluating and executing secondaries. Carlyle’s reach, resources and reputation add to our competitive advantage. Metropolitan can leverage the “One Carlyle” culture and we collaborate with our colleagues in other businesses to both source and evaluate investment opportunities to the greatest extent possible.

What advice do you provide to young people interested in a career in the industry?

First, my mom always told me that you have to shoot to score. This means saying yes to projects and opportunities. My dad told me to never let the turkeys get you down. This means listen to your inner voice and believe in yourself. And, lastly, there is no substitute for hard work. Be thorough and thoughtful.