Sunday, July 10, 2011

Milken PEU Show on Global Opportunities

When the Four Horsemen of the PEU-Pocalypse weren't chucking darts at one another, they shared statistics on private equity underwriters (PEU's).  They have nearly $1 trillion in dry powder, fund commitments not yet invested.

Fundraising improved recently, as evidenced by the time it takes to raise money for a new fund.
PEU monetizations in 2010 and 2011 aided fundraising:

The last quarter of 2010 was particularly bullish, with $64 billion in new deals announced and $72 billion in exits (setting a new quarterly record). And the early months of 2011 have been marked by blockbuster PE-backed IPOs, including HCA, Kinder Morgan and Nielsen.
Investors rolled over at least a portion of proceeds into new offerings.  New fund foci include:

As for new areas for PEU investment, Rubenstein shouted health care. Carlyle owned MultiPlan, a PPO that specialized in controlling health care costs. Carlyle flipped Multiplan for a triple, which helped drive up costs. Rubenstein sees continue cost increases as far as the eye can see, but he also projects big PEU profits.

The video is worth a look for anyone with an hour and fifteen minutes to spare.  The laugh track is pretty good.  PEU boys can deliver their lines.