Oaktree IPO augurs ill for Carlyle

Oaktree’s eargerly-awaited IPO priced at the bottom of its range and failed to sell as many shares as planned, raising $387m. For Carlyle, set to begin its IPO roadshow next week, the lacklustre demand will give it pause for thought.

Distressed debt specialist Oaktree Capital Management sold 8.84 million shares in itself on the New York Stock Exchange on Wednesday, fewer than the 11.3 million it had originally intended.

At $43, the stock also priced at the bottom of its $43 to $46 range.

The lacklustre demand for Oaktree’s listing could lead to rival alternatives manager The Carlyle Group delaying the launch of its pre-IPO roadshow, reportedly due to begin next week. Oaktree and Carlyle declined to comment for regulatory reasons.

Oaktree’s IPO raised $387 million, 25 percent less than the $517 million it had sought based on its regulatory filing at the end of March. Goldman Sachs and Morgan Stanley were lead bookrunners on the IPO.

The listing values Oaktree at about $6.5 billion. That compares with The Blackstone Group’s valuation of $16.5 billion and $5.1 billion for Apollo Global Management, which floated in March last year. Blackstone has lost about half its value since its public market debut in 2007, shortly before the financial crisis began.