Friday, May 4, 2012

DBD's "Good News" on Carlyle IPO

Forbes revealed The Carlyle Group's latest redefinition of success on their IPO:

The deliberate discount, together with no first day pop, means that Carlyle’s billionaire founders, David Rubenstein, Daniel D’Aniello and William Conway, hold stakes in the company worth $1.03 billion each. And while, with their personal cash reserves, including last year’s distribution of $134 million apiece, the trio are still comfortably billionaires boasting net worths in the $1.8 billion range, they themselves have been heavily discounted from the $2.8 billion each was tagged with just a few months ago.

The $1 billion drop for each DBD is significant and fails to meet any success criteria.

But that being said, the fact that Carlyle enjoyed a relatively quiet IPO is a good thing. It means the firm’s shares haven’t tanked yet and Rubenstein, Conway and D’Aniello have successfully avoided the pervasive negativity that would have accompanied an immediate flop. So while they are by no means out of the woods yet, it is so far so good for the newly public Carlyle Group and the three billionaires behind the $147 billion private equity behemoth.

Didn't David Rubenstein promise a pop or was that sales talk, i.e. puffery?  A nickel a unit doesn't sound like a pop to me.