Filed under: Movers and shakers, Financials and analyticals, The Carlyle Group, Private equity industry
David Rubenstein, who is the co-founder of private equity firm The Carlyle Group, has been buying and selling companies since 1987. Now his firm has 30 offices around the globe, as well as $71 billion under management.
Interestingly enough, back in the 1970s, he served in a variety of political seats — such as the Deputy Assistant to the President for Domestic Policy (under the Carter Administration). He has also practiced law for several prestigious law firms.
So what are his thoughts on the recent turmoil in the private equity world? Well, he gave an interview for the Wall Street Journal [a paid publication]. Basically, his opinions are in-line with those of other top dealmakers, such as from the Blackstone Group (NYSE: BX) and Fortress (NYSE: FIG). That is, we won’t see mega deals (because financing has vaporized).
Also, sellers will need to get more realistic on valuations, which is never easy. In fact, many just may rather wait to do deals. In other words, private equity firms will need to work much harder to get strong returns — and it will require more patience (Rubenstein thinks this could take a couple years).
By the way, Rubenstein has a new book that’ll hit the shelves soon: Beyond Wall Street: The Rise of Private Equity and the Future of Investing
Tom Taulli is the author of various books, including The Complete M&A Handbook
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