Carlyle Group, the private equity giant, has given its chairmanship to Louis Gerstner, the retiring chairman of IBM and the person who took the helm at RJR Nabisco after Kohlberg Kravis Roberts (KKR) acquired it in the largest buy-out of all time.

Gerstner is replacing Frank Carlucci, who joined Carlyle in 1989 as vice-chairman and who will become chairman emeritus. Gerstner joins a roster of high-profile figures at Carlyle, including James Baker, former US secretary of defence, and John Major, the former UK prime minister. Having such names on its board help opens the doors of investors and investment targets, but leaves its brand at the mercy of scandalous revelations.