Shares in private equity group Carlyle Group (CG) ticked lower today despite stating that it expects to sell around $5 billion worth of assets this year.
IPO Opportunity
The group said the $4 billion to $5 billion bonanza would be as a result of taking more of its portfolio companies public this year with an Initial Public Offering (IPO) or by the sale of existing investments. Carlyle co-heads of Americas private equity, Brian Bernasek and Steve Wise, told Reuters that there was a clear “opportunity” to tap the IPO markets in 2025.
“When we take companies public, historically we’ve taken them public at around two times their value and eventually sold it around three times,” Bernasek said. One potential name in the frame for a stock market listing could be medical supplies giant Medline. A float could value the group at over $50 billion, Reuters said.
Set to Strike Large Deals
Carlyle Group also seems bullish about the M&A market even though it has seen a quiet start to the year. This is partly down to concerns over President Trump’s tariffs tirade, but the group is confident of a revival later this year.
Even interest rates staying higher for longer than expected won’t act as a deterrent. Higher rates usually make deals harder to clinch given that private equity groups often rely on debt finance to make them work. However, Carlyle Group said they were still prepared to strike large deals.
Is CG a Good Stock to Buy Now?
On TipRanks, CG has a Moderate Buy consensus based on 5 Buy, 8 Hold and 1 Sell rating. Its highest price target is $83. CG stock’s consensus price target is $57.29 implying an 15.26% upside.
