U.S. Markets closed

Carlyle shares fall as CalPERS to exit stake

NEW YORK (AP) -- The Carlyle Group's shares fell Tuesday because the nation's largest public pension fund plans to sell its entire 4 percent stake in the private equity firm.

THE SPARK: The California Public Employees' Retirement System has filed to sell up to 12.7 million shares of Carlyle's stock, the Washington private equity firm said Monday.

THE BIG PICTURE: Carlyle, one of the country's biggest private equity firms, manages about $176 billion across more than 100 funds. CalPERS has been an investor in Carlyle's funds since 1996 and bought its stake in Carlyle in 2001.

Carlyle went public in May 2012 at $22 per share. The stock's value has risen by a third since then.

Carlyle will still manage investments for CalPERS after the stock sale.

THE ANALYSIS: The flood of stock to be unleashed on the market by the longtime investor could weigh on Carlyle's share price.

THE SHARES: Down $1.49, or 5.1 percent, to $27.90 in afternoon trading.