By Dan Primack
August 24, 2011

Lots of stories today about how Doug Lowenstein has “stepped down” as president and CEO of the Private Equity Growth Capital Council., the U.S. private equity industry’s largest trade group. In reality, Lowenstein was terminated, according to multiple sources familiar with the situation.

Nothing untoward, just a belief by member firms that PEGCC was not fulfilling its potential. For example, there was grumbling that Lowenstein wasn’t as effective on shaping Dodd-Frank as were other financial industry lobbyists. That’s problematic, particularly when you’re being paid a salary in excess of $1.3 million.

Prior to joining PEGCC at the time of its 2006 formation, Lowenstein had lobbied on behalf of the Entertainment Software Association.

PEGCC declined comment, natch. In its release the group said that a search is underway for Lowenstein’s replacement, while vice chairman Steve Judge will serve as interim chairman and CEO. Lowenstein will remain on through year-end as an adviser.

The group currently represents 36 member firms, including industry heavyweights like Blackstone Group (BX), Carlyle Group and Kohlberg Kravis Roberts & Co. (KKR).

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