Tuesday, February 11, 2014

Rubenstein at Harvard: PEU Riches

Dealbook reported a portion of Carlyle Group co-founder David Rubenstein's talk to Harvard students interested in becoming private equity underwriters (PEU's):

Though private equity firms will continue to hunt for bargains, returns may not be as high in the future as they have been in the past, David M. Rubenstein, a co-founder and co-chief executive of Carlyle, said in a keynote speech on Sunday.

Mr. Rubenstein predicted that private equity would continue to be a better bet than the public markets. But he sought to temper the expectations of any Harvard students thinking of entering the industry.

“The days of getting fabulously rich in private equity may be a little bit behind us,” Mr. Rubenstein said.
Rubenstein loves to talk about Carlyle's 30% annual return on equity, sans bankrupt affiliates and before PEU fees.  This view into the PEU world came from:

The 20th Annual Harvard Business School Venture Capital and Private Equity Conference, one of the largest and most anticipated student-run conferences on the HBS campus.

Twenty years of Harvard PEU.  It's absolute fabulous, little rich darlings.