Carlyle Group is aiming to accelerate the pace of initial public offerings (IPOs) and asset sales in 2025, targeting $4bn to $5bn in exits from its private equity portfolio, in line with last year’s divestments, according to a report by Reuters.
The firm also remains open to large leveraged buyouts (LBOs) despite a challenging financing environment, signalling confidence in a resurgence of US dealmaking.
Following a slower start to M&A activity in 2025, Carlyle’s Americas Corporate Private Equity co-Heads, Brian Bernasek and Stephen Wise, expressed optimism about an upswing in transactions later this year.
Despite global M&A volumes declining to $441.7bn year-to-date from $523.4bn in the same period last year, according to Dealogic data, Carlyle remains bullish on deal activity, particularly in IPOs. The firm cited limited exposure to tariff risks, as over 80% of its portfolio companies operate in service-based industries with minimal reliance on imports or exports.
Carlyle’s IPO pipeline includes Medline, a medical supplies giant it acquired in 2021 alongside Blackstone and Hellman & Friedman for $34bn. The private equity consortium is now preparing Medline for a stock market listing, with expectations of a valuation exceeding $50bn.
This follows the successful IPO of StandardAero, an aircraft maintenance services provider backed by Carlyle, which went public in October.
Despite higher interest rates, Carlyle remains willing to pursue large LBOs, focusing on industry leaders with dominant market positions.
While “club deals” — where multiple private equity firms join forces on large buyouts — have declined since the 2008 financial crisis, Carlyle’s Medline acquisition alongside Blackstone and Hellman & Friedman highlights a willingness to engage in strategic partnerships for major transactions.
Carlyle’s private equity division saw lower distributable earnings in Q4 2024, falling to $209.6m from $276.1m a year earlier. While the firm increased its exit activity, some funds have yet to reach key return thresholds that would drive higher earnings.
The firm expects private equity fees to decline modestly in 2025 but remains confident in its recent fund performance, with its two latest US buyout funds posting 15% and 21% growth in 2024.
