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Carlyle Chief Executive to Step Down

Carlyle

CG -1.09%

Group Inc. Chief Executive Kewsong Lee is leaving the private-equity firm, as it struggles to expand and its shares lag.

Carlyle said late Sunday after The Wall Street Journal inquired about the matter that Mr. Lee will step down as CEO immediately and will leave the firm when his five-year employment agreement ends at the end of this year. William Conway, a co-founder and former co-CEO of the firm, will serve as interim chief executive until a permanent successor can be found.

Shares of the Washington, D.C., firm have lagged behind its publicly traded peers since its 2012 initial public offering. Carlyle was slow to branch out beyond the volatile private-equity business and into others, such as credit and insurance, that generate the steady, predictable management fees prized by shareholders.

Mr. Lee’s departure marks a rare instance in which a handpicked successor to a private-equity firm’s founders has been shown the door. Firms such as

Blackstone Inc.

and

KKR

& Co. worked for years on their succession planning, telegraphing it to fund investors and shareholders long before a formal announcement was made.

Mr. Conway and a fellow co-founder,

David Rubenstein,

served as the firm’s co-CEOs until 2018 when they handed the title to Mr. Lee and firm veteran

Glenn Youngkin.

Daniel D’Aniello,

the third co-founder, was chairman until the start of 2018. Mr. Lee, 56 years old, became sole CEO in 2020 when Mr. Youngkin, now governor of Virginia, stepped down to focus on public service.

At the time, Mr. Rubenstein said Mr. Lee was “extremely well positioned to serve as our CEO.”

Mr. Lee set to work simplifying the firm’s structure and streamlining its sprawling private-equity business, trimming the number of funds and integrating its infrastructure and energy businesses into one platform. He focused on expanding Carlyle’s credit platform and bringing the firm into the business of managing insurance assets through the purchase of a big stake in Fortitude Re.

Mr. Lee had successfully launched Carlyle’s long-term fund strategy, and in 2015, the founders granted him authority over the direction of the credit business. The following year, Mr. Lee orchestrated an exit from Carlyle’s struggling hedge-fund business and hired

Mark Jenkins

from Canadian Pension Plan Investment Board to build and lead a stand-alone credit-investment platform.

Assets under management for Carlyle’s credit segment nearly doubled year-over-year to $143 billion in the second quarter, surpassing the firm’s private-equity segment for the first time. Fee-related earnings climbed 65% to $236 million.

Despite these efforts, shares of Carlyle have significantly underperformed those of its peers since Mr. Lee assumed the top spot. Carlyle stock, including dividends, nearly doubled over the period, beating the S&P 500 but falling short of the performance of KKR and Blackstone, whose shares have nearly tripled and quadrupled, respectively.

A relative newcomer to Carlyle, having joined in 2013 from private-equity firm Warburg Pincus LLC, Mr. Lee’s ascension and strategic shift ruffled some feathers at the hidebound firm. A handful of senior investment professionals—some with tenures of two decades or more—left amid the changes.

Before Mr. Lee’s arrival at Carlyle, Messrs. Rubenstein, Conway and D’Aniello had made most of the big decisions. The men remain on the board, with Messrs. Conway and Rubenstein serving as nonexecutive co-chairmen and Mr. D’Aniello as nonexecutive chairman emeritus.

Write to Miriam Gottfried at Miriam.Gottfried@wsj.com

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EXCLUSIVE U.S., EU line up over 20 more countries for global methane pact

Methane bubbles are seen in an area of marshland at a research post at Stordalen Mire near Abisko, Sweden, August 1, 2019.REUTERS/Hannah McKay

WASHINGTON, Oct 11 (Reuters) – Two dozen countries have joined a U.S.- and EU-led effort to slash methane emissions 30% by 2030, giving the emerging global partnership momentum ahead of its launch at the U.N. climate summit in Glasgow later this month, a government official told Reuters.

Nigeria, Japan and Pakistan are among the 24 new signatories to the Global Methane Pledge, which was first announced by the United States and EU in September with the aim of galvanizing rapid climate action before the start of the Scotland summit on Oct. 31. It could have a significant impact on the energy, agriculture and waste sectors responsible for the bulk of methane emissions.

The nine original partners include Britain, Indonesia and Mexico, which signed on to the pledge when it was announced at the Major Economies Forum last month. The partnership will now cover 60% of global GDP and 30% of global methane emissions.

U.S. special climate change envoy John Kerry and European Commission Executive Vice President Frans Timmermans will introduce the new partners at a joint event on Monday and also announce that more than 20 philanthropic organizations, including ones led by Michael Bloomberg and Bill Gates, will mobilize over $223 million to help support countries’ methane-reduction efforts, said the official, who declined to be named.

The source said the countries represent a range of different methane emissions profiles. For example, Pakistan’s main source of methane emissions is agriculture, while Indonesia’s main source is waste.

Several countries most vulnerable to climate change impacts, including some African nations and island nations like Micronesia, have also signed the pledge.

In the weeks leading up to the U.N. climate summit, the United States will engage with other major emerging economy methane emitters like India and China to urge them to join and ensure the “groundswell of support continues,” the official said.

‘ONE MOVE LEFT’

Methane is a greenhouse gas and the biggest cause of climate change after carbon dioxide (CO2). Several recent reports have highlighted the need for governments to crack down on methane to limit global warming to 1.5 degrees C, the goal of the Paris climate agreement.

Methane has a higher heat-trapping potential than CO2 but breaks down in the atmosphere faster. A landmark United Nations scientific report released in August said “strong, rapid and sustained reductions” in methane emissions, in addition to slashing CO2 emissions, could have an immediate impact on the climate.

The United States is due to release oil and gas methane regulations in the coming weeks, and the European Union will unveil detailed methane legislation later this year.

Larry Kramer, president of the William and Flora Hewlett Foundation, which contributed to the $200 million fund, told Reuters the money will “help catalyze climate action” and that reducing methane is the quickest way to help carry out the 1.5-degree goal.

Durwood Zaelke, president of the Washington-based Institute for Governance and Sustainable Development, said the partnership was a “great start” for focusing the world’s attention on the need to slash methane.

“There’s one move left to keep the planet from catastrophe — cutting methane as fast as we can from all sources,” he said by email ahead of the announcement.

Reporting by Valerie Volcovici; Editing by Rosalba O’Brien and Hugh Lawson

Our Standards: The Thomson Reuters Trust Principles.

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Latvia and Lithuania move to stop migrants arriving via Belarus

Lithuanian army soldiers install razor wire on the border with Belarus in Druskininkai, Lithuania July 9, 2021. REUTERS/Janis Laizans/File Photo

VILNIUS, Aug 10 (Reuters) – Latvia declared a state of emergency along its border on Tuesday and Lithuania decided to erect a fence in new measures to deter migrants they say Belarus is encouraging to cross illegally in order to pressure European states.

Rising numbers of migrants have reached Lithuania, Latvia and Poland, which accuse Belarusian President Alexander Lukashenko of using the issue to press the EU to reverse sanctions. read more

Poland says Belarus is retaliating against Warsaw’s decision this week to give refuge to Krystsina Tsimanouskaya, a Belarusian athlete who refused to return home from the Tokyo Olympics.

Belarus in May decided to let migrants enter Lithuania in retaliation for EU sanctions imposed after Minsk forced a Ryanair flight to land on its soil and arrested a dissident blogger on board. Lukashenko said Belarus would not become a “holding site” for migrants from Africa and the Middle East.

On Tuesday, the Latvian government declared a state of emergency in border areas, which allows its military and police to support border guards.

The border guard, armed forces and police will be authorised to instruct illegal immigrants to return to the country they came from, and use physical force if they refuse, the Baltic News Service (BNS) said.

The state of emergency runs from Wednesday until Nov. 10 and requires the approval of parliament, which is expected on Thursday.

Some 283 people have been detained for illegally crossing into Latvia from Belarus since Aug. 6, BNS said, bringing the total for the year to 343 people.

In neighbouring Lithuania, parliament voted to build a four-metre (13 feet) metal fence topped with razor wire on 508 km (316 miles) of the 670 km border it shares with Belarus.

“Without this physical barrier, it is impossible to protect our borders, it is very clear,” Interior Minister Agne Bilotaite told Reuters.

The Lithuanian parliament also voted to allow the military to patrol the border alongside frontier guards and to turn back people deemed to have crossed illegally.

Those wanting to claim asylum must now do so at an official border crossing or at an embassy.

So far this year 4,026 people have illegally crossed into Lithuania, a country of 2.8 million, from Belarus, the Lithuanian interior ministry said last week, compared with 74 in total in 2020.

Most come from Iraq, followed by the Republic of Congo and Cameroon, according to the Lithuanian Border Guard. Lithuania says Belarus allows them to head for the Lithuanian border after they have flown to the Belarusian capital, Minsk.

Reporting by Janis Laizans, Ints Kalnins, Gwladys Fouche and Nerijus Adomaitis, writing by Gwladys Fouche; editing by John Stonestreet and Giles Elgood

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