Former US Treasury Secretary Timothy Geithner has joined the private equity industry he battled to rein in through tax reforms by becoming president and managing director at Warburg Pincus.
Geithner was at the forefront of the fight to keep the US economy going during the global financial crisis through roles as president and CEO of the Federal Reserve Bank of New York between 2003 and 2009.
That work brought him to the attention of President Obama, who named him the 75th Secretary of the Treasury and tasked him with settling the financial chaos the US found itself in as the global economy collapsed.
But his attempts to push through reform of the carried interest system in private equity, which many argue sees buyout executives taxed too lightly for profits made on investments, came to naught.
Warburg said Geithner would work with the firm’s co-CEOs Charles Kaye and Joseph Landy on overall strategy and management, investing and portfolio management, organisation, funding structure and investor relations.
Kaye said, “We are excited to welcome Tim to Warburg Pincus.
“He brings a history of strong leadership, a deep understanding of economies and markets, and a truly global perspective.
“These attributes will be of tremendous value to our firm in this increasingly interconnected world.”
Landy added, “Warburg Pincus is a firm that strives to think ahead.
“As private equity evolves and as our investing practices and funding models continue to develop, Tim’s record of leadership through economic and market complexity will be of critical importance as we continue to build for the future.”
Geithner is set to join the firm full-time at the beginning of March next year.
He said, “Warburg Pincus has an excellent record of performance, a very compelling global strategy and an ethical reputation of the highest regard. I look forward to working with my new colleagues and to contributing to the firm’s continued growth and success.”
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