Bloomberg News

Carlyle Group Said to Interview Banks in Preparation for IPO

June 15, 2011

(Adds Carlyle’s efforts to diversify and hire starting in fifth paragraph.)

June 15 (Bloomberg) -- Carlyle Group is interviewing banks this week in preparation for an initial public offering, according to a person with knowledge of the matter.

Carlyle, based in Washington, may raise about $1 billion in the offering, said the person, asking not to be identified because the plans are private. Carlyle will probably choose the main underwriters by the end of the week, according to another person with knowledge of the meetings.

The firm aims to take advantage of more stable stock markets to join U.S.-listed rivals Blackstone Group LP, KKR & Co. and Apollo Global Management LLC. Blackstone, the world’s largest private-equity firm, has gained about 17 percent this year in New York trading and KKR has risen 8.7 percent. Apollo has declined 16 percent since its March 29 offering.

William Conway, who founded Carlyle in 1987 with David Rubenstein and Daniel D’Aniello, said in December the company is gearing up for a public share sale to amass permanent capital and contend with the growing challenge of raising money for buyout funds.

In the last year, Carlyle has hired executives to round out its management team and made acquisitions to increase assets, moves that may make the company more attractive to public shareholders. The founders steered the firm into the fund-of- funds business by taking over AlpInvest Partners NV, a Dutch asset manager that spreads money for investors among other buyout funds.

Executive Hires

In February, the firm recruited Adena Friedman, Nasdaq OMX Group Inc.’s former finance chief, to serve as chief financial officer. Mitch Petrick, Morgan Stanley’s former sales and trading chief, joined as a managing director in 2010 with a mandate that included adding pools that trade securities on a daily basis. Petrick has led deals to buy majority stakes in two hedge funds and plans more acquisitions or hires to execute various investment strategies, according to one of the people.

CNBC reported earlier today that Carlyle is talking with banks. A Carlyle spokesman couldn’t immediately be reached for comment.

--Editors: Josh Friedman, Christian Baumgaertel

To contact the reporter on this story: Cristina Alesci in New York at calesci2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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