2002-024

The Carlyle Group Names Louis V. Gerstner, Jr. Chairman Frank Carlucci to Become Chairman Emeritus After Nine-Year Tenure as Chairman

Washington, DC - Global private equity firm The Carlyle Group today announced that Louis V. Gerstner, Jr. will become chairman of The Carlyle Group effective January 7, 2003. In this capacity, Mr. Gerstner will commit about 20 percent of his time, providing strategic guidance on Carlyle's global business activities, giving management input to Carlyle portfolio companies, and serving on the committees that review and approve Carlyle's global investments. Frank C. Carlucci, who joined Carlyle in 1989 as vice chairman and became chairman in 1993, will become chairman emeritus.


Mr. Gerstner has been chairman of IBM since 1993, and served as chief executive officer of IBM from 1993 until March 2002. He retires as chairman of IBM at the end of 2002.


Mr. Carlucci said, “Lou Gerstner is a unique figure in American business. This is a once in a lifetime opportunity for Carlyle to have a businessman of Lou's stature and accomplishments join our organization. All of us at Carlyle, including our investors and portfolio companies, welcome Lou and look forward to his wise counsel and superior business acumen.” Mr. Carlucci added, “I thank my partners for their friendship and all that we have accomplished together. It has been a great privilege to help lead and transform Carlyle from boutique to institution. I am excited about my ongoing role in Carlyle's bright future.”


David M. Rubenstein, Carlyle co-founder and managing director, said, “On behalf of my co-founders Bill Conway and Dan D'Aniello as well as our 500 professionals worldwide, I warmly thank Frank Carlucci for his tremendous contributions to Carlyle these past 13 years. His business insights, professionalism, understanding of the defense industry, and good nature have been critical to making Carlyle the dynamic and successful firm it is today. As chairman emeritus, Frank will continue, as before, to be an integral part of Carlyle's future.”


Mr. Gerstner said, “Carlyle is a world-class firm with an outstanding record of achievement -- a record built on a strong, global business base and a team of creative, focused professionals. This is an exciting time to be in private equity, and I look forward to sharing my perspective and experiences with Carlyle and, most importantly, helping to grow its already successful business.”


Mr. Gerstner, 60, is widely credited with transforming IBM into a customer-focused global enterprise dedicated to leadership in services and technology. Since Mr. Gerstner joined IBM in April 1993 through year-end 2001, the company's share price increased more than 800 percent, and its market value grew by $180 billion. Prior to joining IBM, Mr. Gerstner served for four years as chairman and chief executive officer of RJR Nabisco, Inc. This was preceded by an 11-year career at American Express Company, where he was president of the parent company and chairman and chief executive officer of its largest subsidiary, American Express Travel Related Services Company. Prior to that, Mr. Gerstner was a director of the management consulting firm of McKinsey & Co., Inc., which he joined in 1965.


A lifetime advocate of the importance of quality education, Mr. Gerstner co-chairs Achieve, an organization created by U.S. governors and business leaders to drive high academic standards for public schools in the United States. He has received numerous awards for his work in education, among them the Cleveland E. Dodge Medal for Distinguished Service to Education -- Teachers College, Columbia University, and the Distinguished Service to Science and Education award from the American Museum of Natural History.


In acknowledgement of his efforts on behalf of public education, as well as his business accomplishments, Mr. Gerstner was awarded the designation of honorary Knight of the British Empire by Queen Elizabeth II in June 2001. Mr. Gerstner is also the author of the recently published, Who Says Elephants Can't Dance?, a chronicle of IBM's historic turnaround.


A native of Mineola, New York, Mr. Gerstner earned his bachelor's degree in engineering from Dartmouth College in 1963 and an MBA from Harvard Business School in 1965. Mr. Gerstner is a member of the National Academy of Engineering, a Fellow of the American Academy of Arts and Sciences, and has been awarded honorary doctorates from Boston College, Brown University, Notre Dame University, Rensselaer Polytechnic Institute, and Wake Forest University.