For their part, investors are expected to take a wait-and-see approach, said Stephen Nesbitt, New York-based CEO of alternatives consultant Cliffwater LLC. What is important is understanding whether Carlyle's strategic direction changes and whether there are any personnel changes down the line, he said.
"Carlyle has strong investment talent and probably desires strong day-to-day management to oversee that talent," Mr. Nesbitt said.
Some analysts think Carlyle should have selected a leader with private asset investment experience and should be articulating a clearer path forward.
"Investment banking and private equity culture are two different things," said Catherine Seifert, vice president in the equity research department of CFRA Research, a Charlottesville, Va.-based research and analytics firm. The leadership teams of publicly traded private equity firms tend to be executives who spend the majority of their careers in merchant banking, Ms. Seifert said.
"The leadership teams have decades of private equity experience. Those chops are things that are important if you're in a business that is based on relationships," Ms. Seifert said.
At Carlyle, there were reportedly a number of internal candidates who were seeking the CEO role who were clearly passed over, she noted. Instead, after a six-month search, Carlyle brought in an executive with a different background and skill set than some of their peers, Ms. Seifert said.
"I don't think the entire process was handled particularly well," she said.
"If you look at what went on at Apollo (Global Management) when there was a controversy around Leon Black ... actions were taken, the founders stepped up. It was a much more buttoned-up process," she said.
Mr. Black stepped down as Apollo's CEO in March 2021 as a result of his professional relationship with the late financier and convicted sex offender Jeffrey Epstein. At the time, co-founder Marc Rowan was named CEO, a role he still holds, and former U.S. Securities and Exchange Commission Chairman Jay Clayton was named non-executive chairman of the board.
Even though Mr. Schwartz has a "sterling resume and wonderful background," asset owners will still need time to see whether Carlyle proves itself and convinces investors that it is going in the right direction, Ms. Seifert said.
The barometer will be how successful it is fundraising, she said.
"Time will tell. It will be a steeper slope because he (Mr. Schwartz) is not a known entity in private equity circles," Ms. Seifert said.