Daniel D'aniello on pension funds
From A Conversation with Dan D’Aniello, Part 1: The Impact of ESG on Private Capital · · KBRA
“In the 90s the industry got a shot in the arm because many pension funds — corporate and public — were looking for ways to earn higher alpha as they faced growing pension liabilities, so they allocated more to alternative investments and that opened huge opportunities for private equity.”
On , Daniel D'aniello, Co-Founder & Chairman Emeritus at CARLYLE GROUP INC, spoke about pension funds during A Conversation with Dan D’Aniello, Part 1: The Impact of ESG on Private Capital on KBRA.
About Daniel D'aniello
Dan D'Aniello, co-founder and chairman emeritus of The Carlyle Group, has discussed the evolution of private capital and the role of ESG considerations in a December 2024 podcast with KBRA. He stated that Carlyle has not created a dedicated ESG fund but instead integrates ESG factors across all its activities, products, and geographies. D'Aniello noted that the industry has moved from shareholder capitalism toward stakeholder capitalism, and he described a correlation observed internally at Carlyle where portfolio company boards with more than 30% minority membership have shown higher returns. He also commented on energy transition, stating that the firm avoids investing in thermal coal mines and coal-fired plants, while most of its power-related growth is in wind, solar, biomass, and other renewables. D'Aniello added that nuclear energy is the cleanest source but will not be "super big," and that alternative energies may provide 25-30% of U.S. energy needs but will not fulfill all of it, noting that gas power generation facilities will remain necessary due to the intermittency of renewables and current limitations of battery technology. In earlier appearances, D'Aniello discussed the competitive advantages of large private equity firms, stating that size and brand serve as discriminators that allow larger firms to close deals based on relationships and banking capabilities. He said that Carlyle has expanded its portfolio globally and noted that Asia has become a more important part of the firm, with about 16% of its assets under management in the region and nine offices there. D'Aniello also spoke about the shift toward private capital investing, describing it as being "closer to the asset" and involving hands-on management of portfolio companies. He emphasized the importance of trust in business, stating that "people invest and do deals and transactions with people they know, like and trust."
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