Carlyle going forward with IPO in spite of low valuation

TRD New York /
Oct.October 20, 2011 02:07 PM

The Carlyle Group is going ahead with its initial public offering
plans, even though its valuation is at $8.5 billion, only a little
more than half the valuation of its competitor, Blackstone Group, the
New York Post reported.

The reason is that Wall Street doesn’t place as high a value on the
money it makes from buying and selling companies, according to the
Post. Blackstone has $15.3 billion in enterprise value, although the
two private equity firms have roughly the same $150 billion in assets
under management.

The company recently placed two Midtown development sites on the market in a joint venture with Extell Development.

Steven Schwarzman’s Blackstone has a higher valuation because it has
diversified into advisory services such as corporate restructuring,
while David Rubenstein’s Carlyle still depends heavily on buyout
deals. It has not been able to persuade bankers that it was worth as
much as Blackstone because it could promise steadier earnings.

But sources said the firm still recently lined up a $600 million loan
to replace its existing $150 million credit facility ahead of its IPO filing.

The banks providing the loan, led by JPMorgan Chase, will have a
difficult time reselling it in the tight credit markets and will take
a loss on the deal, sources said. But the lenders hope to recover that
money and more through fees they collect by underwriting the IPO,
expected to happen in early 2012, they added.
[Post]


Related Articles

arrow_forward_ios
Blackstone's Jonathan Gray, Madison Realty Capital's Josh Zegen (Getty; Madison; iStock)

Property debt investors raising money but still looking for distress

Property debt investors raising money but still looking for distress
Blackstone Group president Jonathan Gray (Getty)

Blackstone makes $1.2B deal with Brookfield for self-storage company

Blackstone makes $1.2B deal with Brookfield for self-storage company
20 West 33rd Street (20West33rd)

Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project

Furnishing firm picks up 4 condos at 60 Guilders, Carlyle’s Midtown South project
Consumers are using streaming services more than ever, and data center real estate is booming (iStock)

Real estate for data centers is having a moment

Real estate for data centers is having a moment
Blackstone’s Stephen Schwarzman, Roku CEO Anthony Wood and Coleman Highline in San Jose (Blackstone; Wikipedia Commons; Coleman Highline)

Blackstone buys Roku’s Silicon Valley office buildings

Blackstone buys Roku’s Silicon Valley office buildings
Blackstone’s Kathleen McCarthy with 440 Saw Mill River Road, Ardsley, New York and 1000 Gateway Boulevard in San Francisco, California (left) (Blackstone; BioMed Realty)

Blackstone bets big on life-science buildings with $14.6B deal

Blackstone bets big on life-science buildings with $14.6B deal
Blackstone Real Estate Debt Strategies' Jonathan Pollack (Blackstone; iStock)

Blackstone assembles biggest real estate debt fund ever

Blackstone assembles biggest real estate debt fund ever
Carlyle CEO Kewsong Lee and 24-02 Queens Plaza South in Long Island City (Getty; Atlas Capital)

Carlyle Group pockets $40M LIC trade school building

Carlyle Group pockets $40M LIC trade school building
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...