Carlyle Group will seek a valuation of $7.5 billion to $8 billion in its IPO, according to people with knowledge of its plans.
Carlyle plans to sell a stake of about 10% in the IPO and will start marketing the deal to investors as early as next week, said the people, who asked not to be identified because the information is private.
The private equity firm, which has been gauging public interest since last year, is targeting its share sale in early May, said another person.
At $8 billion, Carlyle would fetch less than half the market value of Blackstone Group, the world’s largest private equity firm, which has led an industry push into hedge funds and real estate to reduce its reliance on buyouts. Carlyle had initially sought to convince analysts it deserved a valuation comparable to Blackstone’s because its steadier earnings would provide investors with a more stable dividend than most of its peers, people briefed on the matter said last year.
Chris Ullman, a spokesman for Carlyle, declined to comment.
Carlyle may delay marketing the deal if investors aren’t receptive to Oaktree Capital Group’s IPO, scheduled this week, and if the stock market continues to decline, said one of the people. Oaktree, the world’s largest distressed-debt investor, is seeking to raise as much as $517.5 million, offering 11.3 million shares at $43 to $46 each.
Carlyle has $147 billion under management, according to the IPO prospectus, and Blackstone had $166 billion as of Dec. 31, its filings show. Carlyle’s revenue rose 1.7% to $2.85 billion last year, according to a regulatory filing dated March 14. Net income fell 11% to $1.36 billion from a year earlier.
Carlyle’s stock will trade on the Nasdaq Stock Market under the symbol CG. Carlyle hasn’t set a price range or the number of shares it plans to offer.