Friday, December 3, 2010

Red Central Planning Goes PEU

China announced three new private equity deals.  Morgan Stanley, KKR and Warburg Pincus are launching new yuan funds.  Reuters reported:

China is encouraging the development of the private equity industry, hoping to channel more liquidity into the private sector to aid economic growth. Beijing also expects to use foreign expertise to improve corporate governance.
Morgan Stanley's board includes Erskine Bowles.  How will he educate Chinese leaders?   Bowles is a private equity underwriter (PEU) with Carousel Capital and Obama's Deficit Commission co-chair.  Bowles noted his need to make another fortune.  Who knew it would come from China?

Prior PEU deals included The Carlyle Group, Blackstone and Bain.  Carlyle's David Rubenstein noted his firm was "teaching people in China to buy companies in the west."  It's a PEUniverse...