Carlyle float could value private equity giant at $1bn

private equity giant Carlyle Group yesterday shrugged off recent financial sector volatility to reveal it was planning to float on the stock market, joining existing publicly quoted peers such as Blackstone and KKR.

The move surprised analysts given that Wall Street has struggled amid concerns about Europe’s sovereign debt crisis and weak US economic recovery.

The Carlyle filing with the US Securities and Exchange Commission for an initial public offering lists a minimum size of $100 million, but analysts believed this could rise to up to $1 billion. The buy-out firm said it generated economic net income – a measure of profitability used by private equity firms – of over $1bn last year and $770m in the first half of this year.

Carlyle, founded in 1987, will be managed by its general partner Carlyle Group Management, which intends to make quarterly dividend payments. Carlyle is controlled by its senior managers and investors which own minority interests in the business.