US Equity Firms Face Local Competition

Growing worldwide wealth means buyouts are anybody's game
By Jim O'Neill,  Newser User
Posted Nov 14, 2007 2:59 PM CST
KKR's Henry Kravis.   (Getty Images)
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(Newser) – Increasing wealth worldwide will breed competitors for US private equity funds accustomed to being the only players in the lucrative buyout market, the Financial Times reports. “It is not preordained that the US will dominate private equity globally,” said the founder of one such firm, adding that governments could play a role in bankrolling private equity funds in Asia.

US funds, meanwhile, are looking to respond by establishing a local presence in places like China, where the government recently eased regulations on offshore investors. Funds like Carlyle, Blackstone and KKR typically have been the first choice for sovereign wealth funds looking to invest, the Times reports. But the establishment of local funds will challenge their dominance.