P. Olivier Sarkozy, a Carlyle Group managing director and head of the firm's global financial services group, has resigned, said Gary Harbin, executive secretary of the $16.9 billion Kentucky Teachers' Retirement System, Frankfort.
Mr. Sarkozy will become a senior adviser to Carlyle, said a source familiar with the situation. Carlyle spokesman Christopher W. Ullman declined to comment.
Kentucky Teachers officials were informed of Mr. Sarkozy's departure Friday morning. Since Mr. Sarkozy's departure triggers a key-person provision in the fund documents, pension fund officials will start a due diligence process including looking into Mr. Sarkozy's replacement when one is named and the fund's performance, Mr. Harbin said.
“We'll be looking at (the fund) from top to bottom as if it were a new investment,” Mr. Harbin said.
Under the key-person provision, the general partner cannot make new investments until it chooses a successor approved by the limited partners.
Kentucky Teachers committed $35 million to Carlyle Global Financial Services Partners II in 2013. Currently, the pension fund has $14 million invested. Carlyle closed the $1 billion fund in 2014.
