Carlyle Group is seeking to raise as much as $763 million in its initial public offering, a sale that may value the Washington-based private equity firm at up to $7.6 billion.
Carlyle will offer 30.5 million shares at $23 to $25 each, a regulatory filing on Monday shows. Even at the top end of the price range, Carlyle’s valuation would be less than half that of rival Blackstone Group.
Carlyle’s IPO may price as soon as May 2, according to data compiled by Bloomberg.
Carlyle plans to offer about 10% of its stock in the offering, and expects to use the proceeds to repay debt. J.P. Morgan Chase, Citigroup and Credit Suisse Group will lead the IPO, according to regulatory filings. The firm is listing on Nasdaq under the symbol CG.
The firm is going public after buyout firms such as Blackstone, Apollo Global Management and Fortress Investment Group, all of which have declined since their debuts. That performance, coupled with the difficulty of projecting earnings, may have persuaded Carlyle to value itself conservatively, said Dan Veru, chief investment officer at Palisade Capital Management, with $3.7 billion in assets under management.
“These are difficult companies to pay a big multiple for,” Mr. Veru said. “It’s always easier to raise the price if there’s substantial demand rather than lower it.”
Carlyle had about $147 billion in assets under management as of Dec. 31, compared with about $166 billion for Blackstone. The larger firm, which went public at a market value of $33.5 billion in 2007, has since shrunk by half.
Oaktree Capital Group, the world’s largest distressed-debt investor, dropped in its debut after raising less than it sought in its April 11 IPO. Oaktree carried out the first IPO by an alternative asset manager since Apollo sold stock last year, raising $380.2 million. The Los Angeles-based firm sold 8.84 million shares for $43 each, the bottom of its proposed range. Oaktree said it will pay Howard Marks and Bruce Karsh, two of its co-founders, almost 40 percent of the proceeds.
Carlyle founders William Conway, Daniel D’Aniello and David Rubenstein won’t sell any of the shares in the firm they founded in 1987, the filing shows. Each of the founders own about 47 million units that will be worth $1.2 billion at the top of the IPO price range, according to the document. Carlyle’s other owners include the $239.1 billion California Public Employees’ Retirement System, Sacramento, and Mubadala Development Co., an investment company controlled by the Abu Dhabi government.