Why Carlyle Group’s Culture Is the Basis of Good Building and Investing

Culture is a conduit to both business investment and business expansion. Rubenstein gave two examples of how the One Carlyle Culture was instrumental in these areas. “When Carlyle was considering investing in Italian sportswear company Moncler, central to the investment thesis was global expansion. So we brought together our Italian team – who knew the family-owned company – with our NY-based consumer/retail experts and our Beijing team. Working together, the company has expanded dramatically, and now Moncler’s largest store is in Beijing.”

Evaluating culture is equally important when it comes to mergers and acquisitions. When Carlyle was expanding their own platform of investment solutions, culture was first and foremost on their minds when they acquired private equity fund of funds firm AlpInvest, real estate fund of funds Metropolitan and hedge fund of funds DGAM. “The culture with these acquisitions were incredibly important because we were folding in three free-standing companies.”

To emphasize the team in the organization, a newsletter highlighting the achievements of Carlyle professionals associates is sent out daily and training sessions on One Carlyle way are conducted at every level of the company.

Since a company’s culture is the essence of how managers and employees approach and execute plans, it is imperative that culture comes from the top. For value investing investors like Baron who invest in people, not companies – a company’s culture is key.

Lori Ann LaRocco ([email protected]) is the Senior Talent producer on CNBC Squawk Box (NBC Universal) and the author of “Opportunity Knocking: Lessons from Business Leaders“, “Dynasties of the Sea: The Ships and Entrepreneurs Who Expanded the Era of Free Trade” and “Thriving in the New Economy: Lessons from Today’s Top Business Minds.”

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