Carlyle Group, the second largest U.S. private equity firm, aims to sell shares to the public sometime in 2012, reports Bloomberg. This is hardly surprising. The firm has long wanted to go public. Blackstone Group after all went public in 2007, and Kohlberg Kravis Roberts managed to get a public listing on the NYSE Euronext via a merger with its Amsterdam-traded financial unit this summer. But in 2007, with an IPO not feasible, Carlyle instead sold a 7.5 percent stake to a sovereign wealth fund based in Abu Dhabi.

Once again, the company could use some capital. And once again the markets aren't necessarily ripe for more private equity company IPOs. So, 2012 perhaps is the best the company can do. Of course, there's a lot of wiggle room. If the prospects for an IPO turn up, the company will likely move faster.

The proceeds will be used by management to exist in funds and finance expansion activities. It would likely broaden its reach to hedge funds and other activities. It just bought a stake in credit hedge fund Claren Road.

With traditional fund raising going slow, an IPO seems like a decent option. All in all, the timing may prove to be just right. The deal environment is expected to get better soon. Fresh capital will likely be put to good use sooner rather than later. In addition, by the time the IPO rolls around, one would hope the aftermarket would be a more hospitable place. Blackstone has not fared well there.

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