Carlyle Co-CEO Lee Predicts Tougher Recovery for U.S. Than China
Carlyle Co-CEO Lee Predicts Tougher Recovery for U.S. Than China
(Bloomberg) -- An economic recovery in the U.S. is likely to be more challenging than in China, according to Kewsong Lee, co-chief executive officer of Carlyle Group Inc.
China may have a V-shaped recovery while in the U.S. it will be more uneven, resembling a check mark with some squiggles, Lee said Tuesday in an interview during the Bloomberg Invest Global virtual event. The global economy will not return to pre-Covid-19 levels for several years, he added.
The coronavirus pandemic has pushed global economies to the brink as key industries have seen their revenue evaporate and, in the U.S., millions have been pushed into unemployment. Carlyle has been looking for opportunities to lend to troubled companies as the virus continues to cause economic damage.
Lee expects private credit to have an important role as the economy recovers, bringing more opportunities in strategies including opportunistic, distressed and special situations. Yet Carlyle is being very selective in the credit space, Lee said Tuesday. Two areas the firm likes include health care and technology.
In April, Lee said direct lending is an area the firm could focus on for additional capital raising.
Here are some other comments from Lee:
- Lee sees opportunities in what he calls the 5Cs: cloud, e-commerce, cyber, cashless and collaboration.
- In terms of a U.S.-China trade, Lee said it’s important for leaders of America and China to work things out. For Americans to be truly competitive in this global environment, there needs to be global supply chains, he said.
- “Diversity is exceptionally important in a business like ours,” he said. In all companies Carlyle controls, the firm wants at least two directors with diverse backgrounds.
- Carlyle is targeting September for its New York and Washington employees to return to their offices. Extended periods of staff working from home can erode company culture, he said.
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