Podcast Summary
Podcast: Bloomberg Talks
Episode: Harvey Schwartz and Laurent Mekies Talk F1 Partnership and Recent Success
Date: October 20, 2025
Host: Danny (Bloomberg)
Episode Overview
This episode features a compelling conversation between Harvey Schwartz, CEO of Carlyle Group, and Laurent Mekies, Team Principal of Oracle Red Bull Racing, exploring their groundbreaking partnership in Formula One (F1). Amid the celebration of a recent pole and sprint win, the discussion delves into the symbiotic relationship between high finance and elite motorsport. Topics include the rationale behind institutional sponsorships in F1, criticism of branding over returns, cultural shifts in both finance and sport, leadership in times of transition, and the nuanced handling of risk and capital in a changing global landscape.
Key Discussion Points & Insights
1. Carlyle’s Move into Formula 1 Sponsorship
- Pride & Excitement: Harvey expresses continued excitement at seeing Carlyle’s brand on the Red Bull F1 car, likening it to "a kid opening a gift."
- Quote: “Just every time it's exciting. It's like a kid opening a gift. And there it is. There's your toy.” (00:46)
- Strategic Fit: The sponsorship reflects Carlyle’s evolution alongside private markets and growing global reach.
- Quote: “This is just part of the natural evolution. … It's really just quite evolutionary.” (01:15)
- F1 & Finance Alignment: Both organizations are performance-and data-driven, and both are focused on global expansion.
- Laurent adds: The relationship “felt very natural straight away … Performance obsession. Data-driven approach” (02:44)
2. Finance’s Interest in Sport & F1’s Global Growth
- Laurent highlights that the influx of institutional capital coincides with the sport’s efforts to broaden its fan base:
- 40% of F1’s global audience is female, and 40% is under 35 years old.
- Quote: “Year after year we reach more fans, more global audience… We are only at the beginning, especially in the US.” (04:49)
3. Criticism of Private Capital in Sports
- Host references Josh Easterly’s criticism: firms focusing more on brand than returns.
- Harvey refutes this: “It's first and foremost always about performance. … If you have performance, you have success.” (03:45)
- Harvey: Sponsorships are an extension of Carlyle’s pursuit of performance and global audience—not a replacement for returns.
4. Cultural Evolution at Carlyle and in Private Markets
- Leadership Approach: Harvey’s tenure marks a shift—serving broader clients, including retail and wealth, is evolutionary, not revolutionary.
- Quote: “All organizations…have to go through constant processes of self analytics, really being humble, asking themselves, hey, what can we do better tomorrow?” (06:12)
- Retail Access to Private Markets: Harvey asserts that as public markets have shrunk, broader access to private markets for individual investors is necessary—given the right regulatory structure.
- Quote: “So private markets are the market that people want to allocate capital to and they shouldn't…be denied that opportunity.” (07:16)
5. Leadership in Times of Transition
- Advice Across Industries: Both men took over their organizations during turbulent leadership transitions.
- Harvey’s Counsel to Laurent: “It's all about performance and performance only comes from people. So get your people in the right conditions to work, give them the possibility to express their talents…” (08:48)
- People at the Core: Both underscore that technology and data are vital, but success is fundamentally about unleashing talent.
6. Team Dynamics and Decisions at Red Bull
- Laurent on Joining Red Bull: Moving from a successful team to Red Bull was an honor and a "big surprise."
- Quote: “It's an incredible honor and privilege to be part of a team that has been winning so much in such a competitive environment in the last two decades.” (09:30)
- Driver Lineup for 2026: Red Bull will decide on its second seat within a few races, prioritizing performance.
- Quote: “We want to give them as much time as possible to show us what they want to show us … another couple of races will probably make a call.” (13:06)
- On criteria: “It’s performance. Performance only.” (13:33)
7. Harvey’s Role as “Chief Worry Officer”
- Harvey jokes that as CEO, there is never a shortage of worries. His main focus is enabling and motivating teams while maintaining humility and hunger despite success.
- Quote: “Bringing the team together, ensuring that the team feels good about success, but not too good. Always staying hungry, but at the same time, humble.” (10:51)
- On current market risks and cycles, he’s vigilant but not alarmist. The focus remains on resilient structures and accurate risk pricing rather than avoiding risk entirely.
- Quote: “We're not in the business of avoiding risk. ...We have to be in the business of pricing it correctly.” (15:43)
8. Late Cycle Concerns and Capital Deployment
- Not Systemic Yet: Harvey admits industry cycles bring risk, especially with “marginal participants,” but sees no systemic threat at present.
- Quote: “It's our responsibility to manage that capital thoughtfully. That's our obligation. That's how we think about it.” (16:37)
9. Future of Carlyle and Red Bull Partnership
- For now, both organizations are satisfied and focused on maximizing this partnership, not seeking to expand into new sports in the immediate future.
- Laurent: “We are very proud that Carlyle is a few first ever global investment firms to partners in Formula one…” (17:31)
- Harvey: “We're thrilled with it.” (17:44)
Notable Quotes & Memorable Moments
-
Harvey on branding vs. performance:
“Our business is exactly the way Laurent just described it. It's first and foremost always about performance. Performance drives everything.” (03:45) -
Laurent on cultural resonance:
“We go and try to partners with companies that are the best at what they do… we had these performance obsessions.” (02:44) -
On advice for leadership transitions:
“It's all about performance and performance only comes from people. So get your people in the right conditions to work…” – Laurent, recapping Harvey’s advice (08:48) -
Harvey’s leadership mantra:
“Bringing the team together, ensuring that the team feels good about success, but not too good. Always staying hungry, but at the same time, humble.” (10:51) -
On funding and market risks:
“We're not in the business of avoiding risk. …We have to be in the business of pricing it correctly.” (15:43)
Key Timestamps
- 00:46 – Harvey on excitement seeing Carlyle’s branding on the F1 car
- 01:15 – Rationale for Carlyle’s F1 involvement
- 02:44 – Laurent on natural fit and performance culture
- 03:45 – Harvey addresses criticism of private capital in sports
- 04:49 – Laurent on F1’s global growth and diverse audience
- 06:12 – Harvey on Carlyle’s evolving client base
- 08:48 – Laurent reveals Harvey’s leadership advice
- 10:51 – Harvey on being “chief worry officer”
- 13:06 – Laurent on upcoming decision for Red Bull’s second F1 seat
- 15:43 – Harvey on risk-taking and capital deployment
- 17:31 – Mutual pride in the partnership
Episode Tone & Takeaways
The conversation is optimistic, forward-thinking, and candid. Both Harvey and Laurent emphasize performance, the importance of people, and learning across industries. Their camaraderie is evident, lightened with humor about “chief worries” and a bit of mutual ribbing about technical F1 details and investment worries. The episode demystifies why elite finance is drawn to elite sports, showing the deep alignment in values—and how both sectors are adapting to a more global, diverse future.