Matthew Karatz, Mayor Antonio Villaraigosa’s deputy mayor for the Office of Economic and Business Policy, will resign his post on Friday.

In a statement to the Business Journal, Karatz said he planned to return to the private sector, but did not detail his plans. He also said more must be done to create a business-friendly climate in Los Angeles.

“So much more must be done to improve the business climate in our city,” he said in the statement. “I wish the Mayor only the very best during these closing months and I wish the next administration much success in keeping this city heading in the right direction.”

Karatz was chosen for the job by Villaraigosa in 2011 to replace Austin Beutner. Karatz’s departure comes four months before the end of the mayor’s term. It was first reported by the Los Angeles Downtown News.

Karatz, the son of former KB Home Chief Executive Bruce Karatz, oversaw housing-related city departments and worked on development reform efforts for the city.

He previously held private sector positions at Caruso Affiliated and Avondale Investments.

Villaraigosa’s special counsel, Brian Currey will take over as the deputy mayor for Economic and Business Policy.