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Carlyle CEO Harvey Schwartz Discusses Political Risk, AI at Semafor Event
Carlyle Group CEO Harvey Schwartz addressed investor complacency on political risk and optimism about the global economy during a speech at the Semafor World Economy event. He highlighted mispricing of geopolitical risks and introduced 'vibe-coding' as an emerging AI-related threat. Schwartz also discussed Carlyle's record financial performance and growth targets.
Apr 14, 2:09 PM·2m read1 source
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# Carlyle CEO Harvey Schwartz Speaks on Political Risk and AI at Semafor Event WASHINGTON (Substrate) -- Carlyle Group CEO Harvey Schwartz spoke at the Semafor World Economy event on Tuesday, stating that investors have become complacent about political risk.
He said markets are mispricing geopolitical risk because the world has not undergone a severe geopolitical event for some time. Schwartz added that geopolitical events are hard to price and hard to hedge.
Schwartz said markets responded seven times more violently to the collapse of Silicon Valley Bank than to Russia's invasion of Ukraine. He stated that Russia's invasion of Ukraine was wildly more significant than the collapse of Silicon Valley Bank. Despite these concerns, Schwartz said he is optimistic about the current global economy.
Vibe-Coding Schwartz said an additional threat has emerged along with AI: vibe-coding.
He defined vibe-coding as using AI to develop software instead of writing code line-by-line. Schwartz said he is not personally vibe-coding. He stated that companies are left vulnerable when employees do not write code themselves.
Schwartz said he does not want people randomly coding at the companies Carlyle has invested in. These comments came during his remarks at the Semafor event.
Outlook on Carlyle's Portfolio Schwartz said the economy is doing well based on what he has seen at Carlyle's portfolio companies.
He stated that cash flows at Carlyle's portfolio companies are increasing. This assessment reflects observations from the firm's investments. Carlyle set records for fee-related earnings, assets under management, and global wealth AUM last year, according to the company.
