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.
