The Carlyle Group is close to listing 10 percent of its management company, according to a preliminary prospectus filed with the US Securities and Exchange Commission. A number of media reports have indicated the firm plans to hit the road next week to drum up investor support for the IPO, which Reuters reported could raise as much as $800 million and value the firm at about $8 billion. Carlyle declined to comment.
The valuation of Carlyle's franchise has changed significantly since previous stake sales in its management company, reflective both of the private equity firm's metamorphosis to a global asset management firm and of the market cycles experienced over the past decade. In 2001, it sold a 5.5 percent stake to the California Public Employees' Retirement System for about $175 million, valuing the franchise at roughly $3.2 billion. In 2007, Carlyle sold a 7.5 percent stake to Abu Dhabi-backed Mubadala for $1.35 billion, valuing its franchise at about $18 billion.
Carlyle has 153 investment professionals in Europe, the Middle East and Africa and 113 in the Asia-Pacific region as of 31 December 2011, according to its filing. Investors from the EMEA region comprise 36 percent of the firm's commitments, with Asian LPs contributing 12 percent, it said. North American investors, however, still comprises the bulk of its LP base.
Other global firms previously have sold stakes via an IPO, such as The Blackstone Group and Kohlberg Kravis Roberts, which have around 24 percent and 30 percent of their management companies listed on stock exchanges respectively.