Donald Trump's victory in the U.S. presidential election could create a pro-business environment Wall Street and Main Street have not seen in years, according to Carlyle Group President and COO Glenn Youngkin, but the incoming administration's policies will not materially affect his company's investment strategy in the coming months.
In a presentation at the Bank of America Merrill Lynch Future of Financials Conference, Youngkin outlined a number of potential policy changes under President-elect Trump that could have significant ramifications for the global economy. Notably, Youngkin believes Trump's administration could usher in comprehensive corporate tax reforms, enact large-scale deregulation changes in the financial services industry and make a strong push for bolstering infrastructure throughout the nation. While still digesting the results of the election, Youngkin indicated that Carlyle is focused on how to leverage an expected business stimulus with initiatives such as the company's $100 billion next-generation fundraising program unveiled during a third-quarter earnings conference call.
"How we get all the benefits from the increase in business velocity coming from the new administration is just more wind in the sails," Youngkin said.
Youngkin alluded to the recent launch of an infrastructure fund by Carlyle as a possible source of growth in the business-friendly climate under Trump. A large sell-off in assets by struggling energy companies and sizable gap in infrastructure funding worldwide prompted Carlyle to start the fund in September.
The Carlyle executive also provided some color on its next round of fundraising, which is set to begin in 2017. The company, which is looking to raise up to $100 billion over a four-year period, plans to revive several funds used in prior generations such as the U.S. Buyout Fund, Europe Buyout Fund and the NGP Fund, devoted to international energy investments. Carlyle plans to bring the funds back to the market allows the asset manager to assess the evolution of performance fees over the next three-to-five years, Youngkin added.