Monday, October 11, 2010

Carlyle Group Poses for IPO

"Carlyle creates value" dotcom is up and running.  Carlyle provides two levels of disclosure, a lesser one to the public and a much greater level for investors.  The new website is intended for the general public. Carlyle spokesman Chris Ullman shuffled two groups in his comment.

“This is all part of the demystification process.  We’re responding to criticism that we’re opaque. Disclosure and transparency are important, particularly when our investors are public pension funds.

If Ullman's statement is accurate, the public can expect to read the same reports given to pension funds, including CalPERS, a Carlyle Group part owner.  Chris, when might those be posted?

There are other disturbing stories for Carlyle, Vought Aircraft Industries, LifeCare Hospitals, Synagro Technologies, and Semgroup.

Dealbook missed CalPERS part ownership and Carlyle's massive $681 million capital call on CalPERS during the financial crisis.  Dealbook omitted other Carlyle bankruptcies:

Carlyle Capital Corporation
BlueWave Partners
Stallion Oilfield Services
Verari Systems
Recall the Carlyle Group's defense in a SemGroup shareholder lawsuit.  They claimed puffery.  Might their new website have an intended puffing effect? 

Any investor should consider Carlyle's mass monetization and its implications for future earnings.  Research might go beyond Carlyle's co-founders and their good hair.  Are they stand up guys?  Maybe for Mubadala Development Corporation and DBD Investors, but for the general public?  Na.

Update 4-9-11:  Reuters reported "Calpers owns a 5.5 percent stake in the Carlyle Group, which it bought in 2001 for $175 million. In its 2010 investment report, Calpers estimated that stake to be worth $334 million. Carlyle is still a private firm, but it is commonly thought it will seek to go public in the next year."