Karen Bechtel to Join The Carlyle Group as Managing Director and Co-Head of the Global Healthcare Team; Investment Veteran Comes to Carlyle After 28-Year Tenure at Morgan Stanley

Washington, DC – Global private equity firm The Carlyle Group today named Karen H. Bechtel Managing Director and Co-head of the Global Healthcare team. Ms. Bechtel joins Carlyle from Morgan Stanley & Co., where she served for 28 years as an investment banker and principal investor. She will begin her duties in August and be based in New York City.

Daniel F. Akerson, Managing Director and Co-head of the U.S. Buyout group, said, "Karen is an industry veteran with a record of success in the private equity industry in general and the healthcare sector in particular. By expanding the capacity and expertise of our healthcare team Carlyle will more effectively capitalize on the significant demographic and technological changes sweeping the healthcare sector. Karen joins fellow Co-head and Managing Director W. Robert Dahl."

Ms. Bechtel said, "Carlyle is a dynamic and entrepreneurial firm that well suits my interests, skills and experience. There are tremendous opportunities in the healthcare sector and I look forward to working with the team to create value in this critical part of the U.S. economy."

Carlyle’s Healthcare team is part of the U.S. Buyout group, which is now investing Carlyle Partners IV, a $7.85 billion U.S. buyout fund. Currently, four percent of Carlyle’s investments are in the healthcare sector, a number that the firm expects to grow significantly in the coming years. With the addition of Ms. Bechtel, Carlyle now has nine investment professionals dedicated to the healthcare sector.

Carlyle has made a number of healthcare-related investments, including Align Technology, Inc., an orthodontic device manufacturer; Connecticare, Inc., a regional health maintenance organization; Empi, Inc., a medical device manufacturer; and MedPointe, Inc., a specialty pharmaceutical company.

Karen Bechtel

As Managing Director of Morgan Stanley’s Private Equity Group, Ms. Bechtel was a member of the investment committee responsible for approving all investments in the $3.1 billion Morgan Stanley Capital Partners IV Fund. She led all the healthcare investments, including Vanguard Health Systems (hospitals), Cross Country Healthcare (traveling nurse staffing company) and Southern Care (hospices).

From 1993 to 1997, Ms. Bechtel was Co-head of the Strategic Finance Group, where she co-led the financial buyer coverage effort. Prior to this she served as head of the Corporate Restructuring Group from 1989 to 1993. She was also a Founder and Head of Princes Gate Private Equity Investors, a $650 million bridge equity fund. From 1977 to 1989, Ms. Bechtel served in the Mergers and Acquisition Department and was named a Managing Director in December 1986.

Ms. Bechtel previously served on the Board of Directors of Vanguard Health Systems, Inc., Cross Country Healthcare Inc., Southern Care, Inc. and Lifetrust America, LLC. She is on the boards of several non-profit organizations in the New York area, including Historic Hudson Valley, dedicated to historic preservation and educational opportunities.

Ms. Bechtel earned her M.B.A. from Harvard Graduate School of Business and her B.A. from the University of Texas at Austin, where she was Phi Beta Kappa.

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