Wednesday, March 1, 2017

Rubenstein Bullish on PEU

Bloomberg reported:

The private equity industry is as excited about its prospects as it’s been in decades, Carlyle Group LP’s David Rubenstein said.

Most attendees at this week’s SuperReturn International conference in Berlin think U.S. President Donald Trump is good for business, according to a show of hands by hundreds of dealmakers at a presentation by Rubenstein on Wednesday. 
Here are a few Rubenstein quotes from the interview:

The market is very, very high.  Private equity ;probably has benefited from that.  

The United States is dominant in what the private equity world does.

There will be less regulation of private equity in some ways.

The administration will be focused on other things, not beating up on private equity, not that the previous administration did. 
Actually the administration will be focused on things that benefit private equity, infrastructure (once called pork barrel) and lower taxes.  President Trump's cabinet is chock full of private equity underwriters (PEU) and they will advantage their brethren with Uncle Sam's trillion dollar budget.

Rubenstein pulled a P.T. Barnum encouraging investors to "step right up."

Private equity adds more value than we used to.

Investors say "We want to be in the first closes of your funds.  We don't want to get shut out."
Carlyle looks to raise $100 billion by 2019.  This way to the great egress. Carlyle exited Butterfield Bank with up to 2.5x its investment.  Remember the market is very, very high.

Down Under a different Carlyle Group spokesman offered:

“I think returns will come down dramatically, “ he said.  Mr Arpey said while Carlyle strove to secure returns of up to 20 per cent, investors were being warned there were risks involved.
Between the two they have the bases covered.