Wednesday, April 25, 2012

Carlyle IPO Marketing Blitz Midpoint

Reuters reported

In an unusual move, the private equity firm brought out all three of its founders to a road show in New York to tout its IPO, one of the largest this year besides social media network Facebook's debut expected in May.
Carlyle (DBD) founders Daniel D'Aniello, William (Bill) Conway and David Rubenstein were joined at the event at the landmark Plaza Hotel by COO Glenn Youngkin and CFO Adena Friedman, as well as the firm's top dealmakers, in a major U.S. effort by the private equity firm during its 2-week global marketing blitz.
Unusual move? The DBD's ventured into comedy to sell Carlyle units. They plan to monetize, liquefy, have a huge profitgasm by selling their PEU stake.Therefore they need the IPO to go well and are pulling all the stops. 

Besides the founders, Carlyle also brought in a celebrity guest, JPMorgan Chase & Co Vice Chairman Jimmy Lee, to sing the praises of its IPO.

Lee, who made his name arranging loans to buyout firms as they became major powers on Wall Street, told a crowd of more than 150 investors, analysts and bankers that Carlyle's best days are yet to come, people who attended the meeting said.

JP Morgan is one of three lead underwriters, so Lee isn't conflict free.  When Carlyle affiliate SemGroup soured, stockholders sued Carlyle.  Carlyle's defense?  Puffery, i.e. sales talk should not be believed.  A true test of character is how one behaves when stressed.  Puffery then.  Puffery now?