An $8 Billion Valuation for Carlyle’s IPO?

What a difference five years make: In 2007, Blackstone went public with a valuation of $29 billion

   

According to a report in Reuters, private equity firm Carlyle Group is hoping to launch its IPO at a valuation of $7.5 billion to $8 billion.

That’s certainly a comedown from the frenzy of 2007, when Blackstone (NYSE:BX) went public. Blackstone raised a cool $7 billion at a valuation of $29 billion.

Since then, however, the private equity industry has had to deal with the financial crisis as well as a general slowdown in IPOs and M&A activity. The result is that growth has been slow.

Carlyle has tried to find alternative sources of income, such as its hedge funds. All in all, this has been a good move.

Carlyle is the No. 2 player in its space, with assets under management of $147 billion. In 2011 the company saw a 1.7% increase in revenues, to $2.85 billion, while net income fell by 11%, to $1.36 billion.

Other private equity firms that have gone public over the past couple years include KKR (NYSE:KKR) and Apollo Global Management (NYSE:APO).

Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of “The Complete M&A Handbook”“All About Short Selling” and “All About Commodities.” Follow him on Twitter at @ttaulli or reach him via email. As of this writing, he did not own a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/ipo-playbook/an-8-billion-valuation-for-carlyles-ipo/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.