* Poor market conditions cited
* Filed S-1 in September
* PE giant manages $153 bln-plus in assets
By Greg Roth
QUEBEC CITY, Oct. 25 (peHUB) Saying markets are "not
friendly," one of The Carlyle Group's co-founders said that the
diversified private equity firm may actually not go through
with its planned initial public offering after all.
"We're in no hurry," said Daniel D'Aniello, one of
Carlyle's three co-founders, who was speaking Tuesday at the
Quebec City Conference in Canada. "We've been around for 25
years," he said, adding that the firm "might stay private for
another 25 years."
Carlyle, which filed its S-1 in September, is the last of
four giant U.S.-based private equity firms that have either
gone public or are trying too. Other mega-firms that are
considered Carlyle's peers -- Apollo Global Management ,
the Blackstone Group and Kohlberg Kravis Roberts & Co -- have all gone public in the last few years.
Apollo initially filed for its IPO more than three years
ago, but it held off actually going public until March of this
year, citing the ongoing market difficulties as a result of the
In his speech, D'Aniello cited the valuations of those peer
private equity firms, saying that each of them has been
punished by stock markets in the last few months.
Blackstone, for instance, has lost nearly 30 percent of its
value since its recent 52-week peak in April. KKR has lost
nearly 35 percent of its share price since then. Apollo, the
worst-performing of the three, has lost nearly 40 percent of
its value since it went public at $19 per share at the end of
As part of its long pre-IPO build-up, Carlyle has been
active on the acquisition front, notably purchasing AlpInvest,
the world's largest funds-of-funds manager, which immediately
added more than $40 billion to the merged company's assets
under management, and now exceed $153 billion. Crucially, the
AlpInvest purchase further diversified Carlyle's revenue base
beyond managing its own private equity funds to managing the
funds of other firms as part of the funds-of-funds pools.
Separately, as part of his speech on the prospects for
private equity generally, D'Aniello pointed out the contrast
between the size of the world's public markets overall, whose
value he pegged at $56 trillion, and the assets that are
managed collectively by private equity firms, which he said
amounted to roughly $2 trillion. He said that the vast
discrepancy between the two numbers showed that private equity
still had a great deal of room to grow.
Still, with the market environment as tough as it is,
fund-raising has becoming more difficult, with funds taking
longer to reach their targets, if at all. He also cited the
increased competition among a greater number of private equity
firms as a reason for the ongoing difficulty in fund-raising.