Carlyle CEO Harvey Schwartz| Leadership and the Future of Private Markets

**Harvey Schwartz** (0:06)
Insecurity teaches you that you need to be very dependent on other people. Me, insecurity sort of is a secret weapon.
I just try to surround myself with super smart people. I've had the privilege of working with some of the smartest people on Wall Street.

**Peter Mallouk** (0:19)
You've mentioned being insecure in the past tense several times so far. Do you think you're more secure today or do you still think you carry the full?

**Harvey Schwartz** (0:27)
Repeated failure doesn't really train you, in my opinion, for success. Success comes and you're like, whoa, that was surprising. Like I was surprised the first time I got an A in a classic Rutgers. Right? You need multiple A's before you realize, oh, this is the thing I can do.

**Peter Mallouk** (0:45)
I can maybe do this.

**Harvey Schwartz** (0:46)
Correct. So I would say I suffered imposter syndrome, the classic definition, until my mid-30s. But this insecurity thing is not a bad thing.
So I try to worry about the right things, empower the right things. But I would say that as a core competency, I don't want to let go of insecurity because it's been my friend over time. But I think what it does is it makes me very open, as open as I hope I can be to hearing other people's ideas.

**Peter Mallouk** (1:17)
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Carlyle is one of the largest private capital firms in the world. But my favorite part of the day, we're going to cover all of that markets, economy and everything else. But it's really about Harvey's non-traditional background that has me most interested. So thanks for spending time with me today, Harvey.

**Harvey Schwartz** (2:06)
Peter, great to be here. Thanks very much for taking the time. I'm really honored.

**Peter Mallouk** (2:09)
Yeah, I'm honored to be with you. And your story starts in Morristown. Your dad's a scientist. And from there, it gets really different.

**Harvey Schwartz** (2:18)
Yeah, I guess non-traditional probably is the right language. You know, two parents who were both very well educated.
My father was a scientist, PhD. My mother had a master's. But unfortunately, they were both very seriously ill. They both suffered severe mental illness.
My mother suffered what we would call today bipolar disorder. And my father suffered from very severe schizophrenia. Now, this is, I was born in 1964 So it's many years ago. The pharmaceuticals that were available, the treatment protocols that were available weren't nearly what they are today, although they need a lot of work today.

**Peter Mallouk** (2:57)
Yeah, I hear today is still right.

**Harvey Schwartz** (2:59)
Yeah. The biggest issue of being a young person in that environment was many things, but mostly the stigma, the stigma around that.
Ultimately, my mother passed away when I was 14 She died of breast cancer, actually would probably live today.
And then it was my father and I, and I kind of, you can almost mark it in time when after my mother passed away, I kind of just completely went off the rails. I was a freshman in high school and basically ended up being a bit of a feral kid.
My big achievements in high school were I missed 23 days of school by Christmas, my senior year, which if you think about it in some ways is an achievement. I had credit at the local liquor store in town because I was a big kid. I was always a big kid. So I was the kid that looked like I was 18, and I was 16 when I had credit at a liquor store. These are not things to romanticize, obviously, so I don't say it looking back. But to say that I was a long shot for being on the icon discussion show with any ideas is, I think, one of the most extraordinary understatements of all time. I kind of basically figured out how to get out of high school through some favors, didn't apply to college, took a year off, ultimately applied to Rutgers. It was the only school I applied to in New Jersey. Didn't get in. A woman and her husband took an interest in me. I was actually working as a health instructor at a club in New Jersey, which is I know hard to picture me sitting here today, but you have to picture hair and a different physique and everything. And she was a Rutgers graduate, but she wasn't an influential person like yourself or other people you and I know. I'm now on the board of Rutgers, an extraordinary institution. And she couldn't believe I didn't get in. She called the school. Her name is Linda. She called the school. I'm still friends with her to this day. Linda called the school and said, hey, I think you made a mistake with this young person. And she was so annoying to the administration that they ultimately said to her, hey, have him write an essay about why he was such a poor performer in high school and we'll interview him. And they did. And they changed their mind. And I went to Rutgers and I would say between the family that helped me get out of high school, Linda and other people who, for whatever reason, took an interest in me, saw something in me, gave me an opportunity when I think it's inexplicable looking back at it, it's pretty remarkable. I think, you know, I'm sure you've had mentors. I've had mentors. I think there are mentors and there are angels. I've had angels. And if you're lucky enough to have angels give you an opportunity, you have to really reflect on it and just realize how fortunate you are. And I've had angels come into my life. And as a result, through some, you know, path of luck certainly worked hard.