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

(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.

KKR's Henry Kravis. (Getty Images)

A plaque with the Blackstone Group's company logo is seen at the company's headquarters in New York in this Aug. 13, 2007 file photo. Blackstone Group LP, one of the world's largest private-equity firms,... (Associated Press)

Bruce Rosenblum, managing director, The Carlyle Group, right, testifies on Capitol Hill in Washington, Tuesday, July 31, 2007, before the Senate Finance Committee hearing on taxing the profits of hedge... (Associated Press)

The Hilton Hotels in July agreed to a buyout by private equity firm, the Blackstone Group. (Associated Press)

The Managing Director of the Carlyle Group David Rubenstein. (Getty Images)

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OTHER STORIES ON OUR RADAR

buyout • private equity firms • buyout firms

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Romney's Bain Had Loads of Profit, Bankruptcies

Wall Street Journal says Romney's firm didn't always turn things around

Credit Crisis Spells Disaster for Private Equity Firms

Debt tightens as profits fall for many acquired companies

Blackstone Pushes to Delay Tax Increase Bill

If measure won't die, buyout giant wants 10-year grace period

Congress Drops Tax Hike for Private Equity

Superwealthy investors will get to keep tax breaks they now enjoy

Private Equity Can Ruin Firms —and Still Profit

Tax loopholes, money tricks benefit bosses like Mitt Romney: James Surowiecki

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Newser By Users

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