The Carlyle Group Names Andrei Terekhov and Joshua Larson Managing Directors and Co-Heads of New Russia Investment Team

London - Global private equity firm The Carlyle Group announced today that Joshua Larson and Andrei Terekhov have joined as Managing Directors and will co-head Carlyle’s new Russia investment team based in Moscow.

David M. Rubenstein, Carlyle co-founder and Managing Director, said, “We see great opportunity in Russia. Establishing a team of seasoned investment professionals from Russia enables Carlyle to leverage its global resources as we explore and make investments in this massive market. I am pleased to welcome Joshua and Andrei to the Carlyle global family. They have proven themselves in this market and are a solid foundation on which to grow.”

“Carlyle’s superb global brand and its disciplined investment process will serve us well in Russia. As the Russian buyout market matures Carlyle will be in the vanguard, demonstrating the value of private equity. I look forward to starting and growing this important new endeavour and working with Carlyle’s global investment team,” said Mr Terekhov.

“This is an exciting time for Carlyle to be focusing on Russia. The ongoing political and economic reforms combined with strong economic growth will provide us with a wide range of opportunities to add value to growing companies. This is a great organization and I look forward to working with Carlyle’s global network of professionals as we explore opportunities throughout Russia,” said Mr Larson.

Carlyle’s Russia investment team will focus primarily on opportunities in the consumer, media, energy, services and manufacturing sectors.

* * * * *

Joshua Larson, Managing Director and Co-Head of Carlyle Russia, was formerly head of Morgan Stanley’s Russian operations in Moscow. While at Morgan Stanley Mr. Larson led the development of relationships with a number of major Russian corporates in the oil & gas, natural resources and consumer sectors, as well as the execution of a number of major transactions, including the Russian government’s US$775 mm sale of LUKOIL shares and LUKOIL’s listing on the London Stock Exchange. Previous to Morgan Stanley Mr Larson was at Goldman Sachs where he was jointly responsible for the development of its Russian business.

Between 1994 and 1997, Mr Larson was with Banque Paribas in Moscow, responsible for the development of its Russian investment banking business, and Credit Suisse First Boston’s investment banking division in Moscow, where he worked with a number of Russian and international corporates on capital markets and M&Amp;A transactions.

Mr Larson also worked at Sun Group in Moscow, where he worked on Sun’s acquisition and management of brewing assets in Russia.

Joshua, 38, and a U.S. citizen, is a graduate of the University of Texas at Austin with a Bachelor's degree in Russian. In 1992 he earned his Master’s degree in International Affairs from Columbia University’s School of International and Public Affairs. He also completed the certificate program at the Harriman Institute for Advanced Study of the Soviet Union.

Andrei Terekhov, Managing Director and Co-Head of Carlyle Russia, was formerly a senior partner of Baring Vostok Capital Partners, one of Russia’s leading private equity firms, which he co-founded in 1997. He established and managed the firm’s Ukrainian operations and led a number of private equity investment projects in Russia. He led the creation of SladKo confectionery group and was a board member of Golden Telecom Ukraine, Rogan Brewery (Kharkov) and the Rosinter restaurant group.

Prior to his work in private equity, Mr Terekhov worked as a project manager with the consulting firm Central Europe Trust (UK), where he executed projects for such clients as Kraft Jacobs Suchard, CPC/Best Foods and the EBRD. He also served for four years in the Soviet Army, including two years in Angola.

Mr Terekhov, 38, was born in Northern Kazakhstan. He earned his BA with honors from Kiev State University as an interpreter of English, German and Portuguese. In 1996, as an Edmund Muskie Scholar, he completed the MBA program at the University of Minnesota with a concentration in finance and marketing. In 2001, Andrei completed the Advanced Management Program at Harvard Business School.

# # #