Carlyle eyes market cap of $8bn

PRIVATE equity giant the Carlyle Group is aiming for a market value of $7.5bn to $8bn in its long-awaited float and is set to begin an investor roadshow within days.

The US buyout firm, whose British interests include Alliance Boots, will raise $750m to $800m by selling off around 10 per cent.

It is expected to begin pitching to investors soon, perhaps even next week and has signed up 21 underwriters including JP Morgan and Citigroup.

Carlyle, based in Washington with $147bn in assets under management, plans to issue new equity and will use the cash to pay down debt and spend on operations, deals and new fund commitments.

It comes after rival Apollo Global, which has about 15 per cent of its shares listed on the stock market, raised $382.4m by issuing new shares in its initial public offering last year.

The values are a comedown from the private equity boom of 2006-07. Five years ago Abu Dhabi state investment firm Mubadala paid $1.35bn for a 7.5 per cent stake in Carlyle, valuing the group at $18bn, while Blackstone raised about $7bn by selling a 24 per cent stake in the same year.

Carlyle co-founders William Conway, Daniel D’Aniello and David Rubenstein are expected to hold on to their shares when the group lists.

The firm has 33 offices around the world and is led in Britain by managing director Robert Easton.