Business Case Studies & Business Publications

The Carlyle Group: IPO of a Publicly Tra...

Chaplinsky, Susan,...

Case

The Carlyle Group: IPO of a Publicly Traded Private Equity Firm

Chaplinsky, Susan; Marston, Felicia C.

F-1689 | Published February 26, 2013 | 27 pages Case

Collection: Darden School of Business

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The Carlyle Group IPO case explores the circumstances leading up to the firm's IPO in May 2012. Over the past 25 years, Carlyle had grown from a fledgling private equity firm to one of the world's largest and most diversified investment firms. Carlyle had prepared extensively for the roadshow; management anticipated some tough questions. Students are asked to evaluate the extent to which Carlyle is undervalued relative to its peers. The case provides information on how to evaluate the earnings received by the public shareholders and outlines several alternative approaches to value PPEs.

•To familiarize students with the reasons private equity firms choose to go public •To familiarize students more broadly with the evolving nature of the PE business •To discuss whether PPEs offer a good opportunity for public shareholders to participate in private equity •To develop understanding of the differences between of the positions of a public shareholder (unit holder) and limited partner (LP) within a PPE •To develop understanding of the key value drivers for PPEs •To introduce students to methods of valuing a PPE