Friday, March 16, 2012

Carlyle Group Reseller Subtly Pushes Carlyle IPO

The CEO of Partners Group Holding AG advised Carlyle Group co-founders to keep their IPO simple and understandable.

"Be very transparent with potential shareholders, talk them down when there is a feeling that the market is exaggerating and people overestimate the future fees potential and vice versa "

It's way too late for that.  How will Carlyle's distribution of a record $19 billion to investors in 2011 impact earnings in the future?

Do future Carlyle shareholders know they have to pony up for Carlyle founders' tax increases?  The PEU term for such a subsidy is "tax distribution."  How transparent has Carlyle been with its 18 investment banks pushing Carlyle's IPO?  Ooops, the number is now 21.  Twenty one investment banks to push a $100 million IPO offering?  It must truly reek.

Note:  Partners Group is an approved secondary buyer/reseller of Carlyle's future PEU fund.  Carlyle will charge an administrative fee on such transactions.  Did Partner's CEO declare his conflict of interest to Bloomberg?  Such practice is so passe.