JPMorgan Chase (JPM) senior executive Michael Cavanagh revealed plans on Tuesday to join private equity giant Carlyle Group (CG), marking the exit of a key lieutenant thought to be a potential successor to CEO Jamie Dimon.
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Cavanagh’s jump to the world of private equity represents the latest departure of a senior JPMorgan executive.
Carlyle said it has tapped Cavanagh to become co-president and co-chief operating officer, titles he will share with current COO Glenn Youngkin. The firm elevated Youngkin to the role of co-president, which was newly created.
“Coupling a highly successful senior financial services executive with a proven Carlyle leader possessing deep institutional knowledge will help ensure that Carlyle continues to innovate and grow for another quarter century,” Carlyle co-CEOs David Rubenstein and William Conway, Jr. said in a statement.
Cavanagh, 48, is currently co-CEO of JPMorgan’s corporate and investment bank and previously led the banking giant’s treasury and securities services division and served as chief financial officer for six years.
He said he only decided to leave after “a lot of soul searching” and wouldn’t have left for any company other than Carlyle.
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“This is a rare opportunity to join a premier global investment firm during a time of swift change for the industry. We accomplished an immense amount at J.P. Morgan and I am grateful to my colleagues, especially Jamie Dimon, for their friendship, support and confidence,” Cavanagh said.
In a separate statement, Dimon called Cavanagh a “special person.” He added, “while we would prefer he stay at the firm, we are glad he’s going to a valued client in Carlyle.”
The private-equity firm said Cavanagh and Youngkin will be charged with helping to develop and implement Carlyle’s strategic growth initiatives and manage operations on a day-to-day basis.
Carlyle said the two executives will begin their new role this summer, with Youngkin continuing to be based in Washington, D.C. and Cavanagh staying in New York.
With Cavanagh departing, JPMorgan said Daniel Pinto, currently co-CEO of the bank’s corporate and investment bank, will become the sole CEO of that division, effective immediately.
“We will all miss Mike -- he's been a terrific partner and friend and key contributor to our success. We will continue to work hard for that success, and, as we always have, to serve our clients with distinction,” Pinto said.
Shares of JPMorgan ticked down 0.18% to $60.96 in Tuesday’s premarkets, while Carlyle gained 0.98% to $31.98.