There's a lot of talk about how bad things are for private equity these days. Deals are going bust and credit is drying up, and some observers have suggested that the golden age of private equity is over.
But Louis Gerstner, the chairman of the Carlyle Group, told the Dow Jones Private Equity Analyst Outlook conference in New York that he rejects all the doom and gloom. As far as Gerstner is concerned, the current situation is not a crisis. It is merely a "correction," and a welcome one at that. Capitalism tends to go to extremes, and the slowdown in the buyout market is simply a cleaning up period when the excesses can be eliminated.
Gerstner said that Carlyle is holding $30 billion waiting for investment. Weaker players should leave the field this year and next, creating new opportunities for massive, experienced funds like Carlyle. The developing world is also attractive, providing targets that require less leverage.
Read more at Financial News.
Read more at DealBook.
Carlyle's Gerstner: There's no crisis for private equity
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