Banking & Finance

Carlyle IPO Filing: Making the Billions Even More Liquid

Jon C. Ogg

Another private equity giant is set to come public in an initial public offering.  The Blackstone Group (NYSE: BX), Apollo Global Management, LLC (NYSE: APO), Kohlberg Kravis Roberts & Co. (NYSE: KKR), and Fortress Investment Group LLC (NYSE: FIG) are already public.  Now it looks as though The Carlyle Group L.P. will join the private equity brethren as a publicly traded entity.

While financial terms have not been set, it is interesting that this initial public offering is currently for only “up to $100 million” in common units for sale in the filing.  The underwriters so far named are J.P. Morgan, Citigroup, and Credit Suisse.

As of June 30, 2011, Carlyle showed roughly $153 billion in assets under management.  That was up from $107 billion at the end of 2010, but that gain includes the benefits of the acquisitions of AlpInvest Partners B.V. and Emerging Sovereign Group LLC on July 1, 2011.

Carlyle is one of the most prestigious private equity players on the planet.  It is extremely diversified in portfolio companies and in geographies in multiple asset classes and in multiple investment strategies.  Its $153 billion in assets under management is spread among 86 funds and 49 fund of funds vehicles.  The company itself has over 1,100 employees, which are comprised of over 500 investment professionals, in 34 offices on six continents.

The company noted in the filing that it serves over 1,400 carry fund investors from 73 countries.
The company’s total footprint is shown as being over 200 portfolio companies that employ more than 600,000 people under its Corporate Private Equity and Real Assets segments.

Revenues in the first six months of 2011 have been $1.796 billion and distributable earnings have been $373.2 million.  Total segment revenues for all of 2010 were $2.385 billion with distributable earnings coming to $342.5 million.

The FULL SEC FILING is available here.

Keep in mind that investors can actually invest in a private equity ETF if they want to spread the wings out other than just in one firm.  There is the PowerShares Listed Private Equity (NYSE: PSP) which tracks the Global Listed Private Equity index with at least 90% of its assets in securities of publicly listed private equity companies, business development companies and other financial institutions or vehicles whose principal business is to invest in and lend capital to privately held companies.

JON C. OGG