Tuesday, March 12, 2013

Carlyle Contracts Fundraising for Small People

WSJ reported The Carlyle Group will allow little investors, those with $50,000,into its private equity funds.  The trick is small investors will need to go through Central Park Group and incur an additional 1.8% fee for the privilege.  This is on top of Carlyle's standard 1.5% management fee and 20% of profits. 

Carlyle's "distinctive competencies" included its private, non-publicly traded status and investor exclusivity.  Carlyle went public, trashing that sales line.  It seems exclusivity could be next.  A toast to the small people and their PEU hopes

Update 4-22-17:  PEUs still want 401k holders to invest in private equity and Central Park Group continues pushing private equity..