David Rubenstein, co-founder of the Carlyle Group, expects the private equity industry to come roaring back even stronger than it was when we finally pull out of this recession. And that could be good news for private equity job seekers.
Speaking with Bloomberg Television, Rubenstein admitted that Carlyle, the world’s second largest private equity firm, did buy some companies at prices and debt levels that were too high. But now he sees opportunities in distressed assets. Both Carlyle and its larger rival, The Blackstone Group, are bypassing the giant public-to-private buyouts that made headlines before the crash and instead are focusing on smaller deals for struggling businesses such as regional banks. Both firms were involved in buying the failed Florida lender BankUnited Financial earlier this year.
The only clouds on the private equity horizon are potential European Union regulations that would make it more difficult to invest in private equity companies, and perhaps rising debt levels that will force the U.S. to pay higher interest rates, he said.
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