From Barron's Stocks to Watch Today:
Carlyle Group’s (CG) debut on the public markets was not exactly triumphant — the company had already priced the shares below the expected range on tepid investor appetite.FromPE hub:
But shares are on the way up this morning, rising 1.5% to $22.33. The price values Carlyle at about $7 billion, versus $16 billion for Blackstone (BX), $2 billion at Fortress Investment Group (FIG) and about $4 billion for KKR (KKR).
Carlyle’s three founders, have agreed not to sell their holdings for the next few years, The New York Times notes. That could give investors confidence that the owners aren’t simply using the IPO to cash out. That said, the stocks of publicly traded private equity partnerships have certainly struggled recently — Blackstone is off 30% in the past year.
The $237 billion California Public Employees’ Retirement System has reaped a 2.9x gain from its 4.2 percent stake in The Carlyle Group upon the firm’s initial public offering on Thursday, according to an exclusive analysis by Buyouts, peHUB’s sister magazine, based on a California Public Records Act request.PEhub goes on to estimate that CalPERS will show a 12-13% IRR on the investment.
The CalPERS gain from its Carlyle stake is redemption of sorts for the giant pension, especially since its 9 percent stake in Apollo Global Management (one of the two other private equity firms that CalPERS directly invested in) has been a disappointment since going public in March 2011, losing 30 percent of its value....MORE