Carlyle files for IPO but listing not expected until 1H 2012

It has previously been reported that the private equity firm is looking to raise around $1 billion, with JPMorgan, Citigroup and Credit Suisse serving as the lead underwriters. Buyout rivals Blackstone Group, KKR and Apollo Global Management have already gone public in the last few years.

Carlyle's filing indicates how far the firm has gone to ease its reliance on buyouts, but it still trails Blackstone in terms of business diversification, Bloomberg reported.

Buyouts accounted for nearly 70% of Carlyle's profit in the first half of 2011, more than double the amount at Blackstone. Meanwhile, funds investing in real estate, infrastructure and energy accounted for about 17% of profit in the first half, up from 9% for the whole of 2010. The hedge funds unit was responsible for 14% of earnings during the period.

Carlyle's assets under management came to $107 billion as of June 30, up from $16 billion at the end of 2003. The acquisitions of equities fund manager Emerging Sovereign Group, credit hedge fund Claren Road Asset Management and fund-of-funds AlpInvest Partners have helped boost the private equity firm's asset base.

Blackstone has in recent years moved into hedge fund-of-funds and increased its exposure to real estate as well as debt and lending. KKR has set up a hedge fund and diversified into underwriting and lending.

The volatility of cash windfalls from standard private equity investments doesn't necessarily meet the needs of a company that wants to deliver consistent quarterly earnings reports. Asset management, and greater exposure to more liquid public equities, can help redress the balance.

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• Topics
• North America
• Buyout
• The Carlyle Group
• KKR
• The Blackstone Group
• Apollo Global Management