Wednesday, 23 July 2014
Last updated 12 hours ago
Apr 11 2012 | 1:29pm ET
The Carlyle Group will settle for a valuation far lower than it had originally sought when it begins marketing its initial public offering.
The private equity giant plans to begin selling itself to investors as early as next week. Carlyle hopes to raise about $1 billion by selling about 10% of itself, but has drastically lowered its valuation target.
The $150 billion firm had been pushing for a valuation comparable to—or higher than—that of the Blackstone Group, which went public five years ago. But now it is looking for a valuation of between $7.5 billion and $8 billion, less than half Blackstone's market value. It's also less than the roughly $10 billion valuation it used in a debt sale in December 2010, and Carlyle's implied enterprise value of $9.4 billion.
Blackstone had a valuation of $33.5 billion when it went public in 2007, although now the market values the firm at just $16.4 billion.
Carlyle has engaged 21 underwriters for its IPO, led by Citigroup, Credit Suisse and JPMorgan Chase.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…