Carlyle, which has $147 billion in assets under management, plans to sell a 10 per cent stake to raise $750 million to $800 million in the IPO, the source told Reuters on Tuesday.
The firm had said in a regulatory filing earlier this month that it might sell a 10 percent stake but its expectation on market value was not previously known.
Carlyle declined to comment.
Carlyle's market value represents a significant comedown from the peak of the private equity industry in 2006-2007, when easy credit spurred the largest leveraged buyouts of all-time. In 2007, Abu Dhabi state investment firm Mubadala paid $1.35 billion for a 7.5 per cent stake in Carlyle, valuing the private equity firm at $18 billion.
Blackstone Group LP, which went public in 2007, raised about $7 billion by selling a 24 percent stake at the time, implying a value of around $29 billion. Blackstone, which had $166 billion under management at the end of 2011, has a current market capitalization of $16.5 billion.
The sharp difference in the estimated market value of Carlyle and that of Blackstone, even though the latter manages only slightly more assets, highlights the difficulty investors have in valuing private equity firms.
“Although these companies are all thrown into the same bucket in the eyes of many, under the hood their operations and culture and the way they share economics are all different,” said David Snow, founder of PrivCap, a media company that covers the private equity market.
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