NEW YORK, June 3 The California Public
Employees' Retirement System (Calpers) plans to sell its entire
4 percent stake in Carlyle Group LP as the U.S. public
pension fund plans its exit from the private equity manager
after 12 years.
The sale of the stake in Carlyle - valued at $373.3 million
as of the end of stock market trading on Monday - comes 13
months after Carlyle's initial public offering. Its shares have
risen 34 percent since then.
Alternative asset managers such as Carlyle and Apollo Global
Management LLC sold stakes to some of their biggest fund
investors before they went public in a bid to raise cash. Their
subsequent IPOs have given those investors an opportunity to
more easily cash out on their investment.
Calpers, which is the biggest U.S. public pension fund and
is also an investor in many of Carlyle's funds, acquired a 5.5
percent stake in Carlyle in 2001 for $175 million. That later
got diluted to 4 percent.
In May 2012, Thomson Reuters Buyouts Magazine reported
Calpers had until then received $225.2 million in carried
interest, fees and distributions from its Carlyle stake, based
on a California Public Records Act request.
Also accounting for Carlyle's distributions as a public firm
since May 2012, this would mean Calpers stands to make close to
3.5 times its money on its Carlyle stake investment over a
period of 12 years, calculations by Reuters show.
The sale of the stake in Carlyle, disclosed in a regulatory
filing on Monday, comes one month after Calpers moved to sell a
quarter of its 8 percent stake in Apollo.
Calpers joined Abu Dhabi Investment Authority and two of
Apollo's founders in selling some of its shares in New
York-based Apollo. It raised $187.5 million by cutting its stake
in Apollo to 6 percent from 8 percent.
Founded in 1987 by David Rubenstein, William Conway and
Daniel D'Aniello, Carlyle had total assets under management of
$176.3 billion as of the end of March, including in private
equity, corporate credit and hedge funds.
Citigroup, Credit Suisse and JPMorgan will serve as the
book-running managers for Calpers' offering.
Calpers also has a stake in Silver Lake, a technology
sector-focused private equity firm which, unlike Carlyle and
Apollo, has not gone public. Calpers acquired the 9.9 percent
share in 2008.
Calpers had $4 billion - equivalent to 10 percent of its
private equity program - invested with Carlyle as of the end of
the end of March, ranking the Washington, D.C.-based firm as the
second-largest exposure in Calpers' private equity portfolio. It
had $4.3 billion invested with Apollo and $1.1 billion invested
with Silver Lake.