Davos 2009
Private Equity at the World Economic Forum in Davos
It may be an overstatement to say that this year's meeting in Davos for the World Economic Forum is the most important in recent years. However, with the financial crisis, a new American president and global economic uncertainty it may be an accurate statement. Significant private equity firms were represented at the World Economic Forum, among those firms are the Carlyle Group and Bain Capital.David Rubenstein of the Carlyle Group took a few moments for an interview at the World Economic Forum. It's an interesting interview especially in light of the turbulant global economy.
To begin, Rubenstein is asked about the likelihood of regulating private equity to which he answers that hedge funds are more likely to face important changes in regulation than private equity. While Rubenstein is concerned about the ability to obtain leverage to finance big deals, he seems a bit more optimistic (consistent with his attitude over the last few months). When asked what percentage of the deals executed within the last three years will end in default or restructuring, Rubenstein concludes that very few will default but almost all will face some sort of restructuring or need some form of debt. As other industry commentators have noted, Mr. Rubenstein adds that prices still need to adjust to return to normal and attractive levels. For more information on the Carlyle Group visit the firm's private equity tracker profile.
Another great video to come from Davos is the interview with Bain Capital's Managing Director Stephen Pagliuca. This interview focuses primarily on the issue of failing banks in relation to private equity.
Mr. Pagliuca sees the solution to the banking crisis and the return to obtaining loans from banks as clearing the poor loans off the banks books. He also calls for raising the minimum capital requirements for banks because he thinks the banking system has been overleveraged. Like Mr. Rubenstein, he defends private equity from being blamed for the current financial crisis.
Tags: Private equity, private equity firms, private equity david rubenstein, private equity bain capital, private equity carlyle, private equity capital, private equity world economic forum
Link to This Resource: Davos 2009 | World Economic Forum
http://privateequityblogger.com/2009/02/davos-2009-world-economic-forum.html