This week, some of the top veterans in private equity -- TPG's David Bonderman, Carlyle's David Rubenstein, and KKR's George Roberts -- got together at a conference in Hong Kong. And, all in all, it was fairly depressing (hey, I guess that's what happens when you lose billions and billions of dollars).

Take Bonderman. He thinks the downturn will be protracted, calling it an L-shaped recession (the more common description is a V-shaped recession, which means there is a strong snapback). In fact, he thinks U.S. unemployment will hit 10% or so.

Then again, keep in mind that Bonderman lost about $1.3 billion on his six month investment in Washington Mutual.

Despite all this, Bonderman still has an appetite for investments. For example, he's focusing on the debt securities from hedge funds. Because of massive redemptions, the prices are at distressed levels.

Rubenstein also gave a grim presentation (he thinks the downturn can last several years). But, he is still bullish on some opportunities, especially in Asia. For example, he thinks China offers some compelling valuations and that the country may become more open to outside investments.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

This week, some of the top veterans in private equity -- TPG's David Bonderman, Carlyle's David Rubenstein, and KKR's George Roberts -- got together at a conference in Hong Kong. And, all in all, it was fairly depressing (hey, I guess that's what happens when you lose billions and billions of dollars).

Take Bonderman. He thinks the downturn will be protracted, calling it an L-shaped recession (the more common description is a V-shaped recession, which means there is a strong snapback). In fact, he thinks U.S. unemployment will hit 10% or so.

Then again, keep in mind that Bonderman lost about $1.3 billion on his six month investment in Washington Mutual.

Despite all this, Bonderman still has an appetite for investments. For example, he's focusing on the debt securities from hedge funds. Because of massive redemptions, the prices are at distressed levels.

Rubenstein also gave a grim presentation (he thinks the downturn can last several years). But, he is still bullish on some opportunities, especially in Asia. For example, he thinks China offers some compelling valuations and that the country may become more open to outside investments.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

When getting the pulse on the credit markets, the private equity firms have a good sense of things. Credit is the lifeblood of the business. And, of course, the credit freeze has essentially stopped private equity activity.

But, according to some veteran private equity dealmakers, it does look like things are stabilizing. For example, the Blackstone Group LP's (NYSE: BX) CEO, Stephen Schwarzman, is optimistic that the environment is improving. The main reason: the massive government interventions.

And, this week we also got KKR's chief, Henry Kravis, to chime in. However, his sentiments are somewhat qualified. After all, he thinks that the real economy is in a fragile state and that investor confidence is still a big problem. What's more, he believes that it will take awhile for growth to comeback.

In the meantime, Kravis predicts a surge in consolidation in the financial services industry. Interestingly enough, some of the leaders in this trend could be operators like Blackstone and KKR, which don't have leveraged balance sheets.

Emphasizing this point is another private equity bigwig, the Carlyle Group's David Rubenstein. According to him, there's a huge opportunity for private equity firms to provide capital to the ailing financial services industry. In fact, the Federal government has recently relaxed some of the investment rules for such deals, which should make returns even more lucrative and give dealmakers more incentive to get transactions done.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market He is also the founder of BizEquity, a valuation website

About a year ago, the rage in private equity was the so-called megabuyout. It seemed like no company was immune. There was even talk of $100 billion dollar deals.

Of course, the credit crunch ended the megabuyout. In fact, it ended most of the activity for private equity folks.

Yet, according to the co-founder of the Carlyle Group, David Rubenstein, things are perking up [subscription required]. His firm – like other veterans, such as The Blackstone Group (NYSE: BX) – understands market cycles. After all, these players have dealt with variety of credit crunches, such as in 1991-1992, 1998 and 2001-2002.

Rubenstein predicts we'll see a pick-up in deals over the next few months. Although, the deals are likely to range from $2 billion to $4 billion, with less debt. And expect more foreign deals.

Funny enough, Rubenstein seems to be leading the charge with its recently announced a $2.54 billion deal for a majority stake in Booz Allen Hamilton.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

About a year ago, the rage in private equity was the so-called megabuyout. It seemed like no company was immune. There was even talk of $100 billion dollar deals.

Of course, the credit crunch ended the megabuyout. In fact, it ended most of the activity for private equity folks.

Yet, according to the co-founder of the Carlyle Group, David Rubenstein, things are perking up [subscription required]. His firm – like other veterans, such as The Blackstone Group (NYSE: BX) – understands market cycles. After all, these players have dealt with variety of credit crunches, such as in 1991-1992, 1998 and 2001-2002.

So, Rubenstein predicts we'll see a pick-up in deals over the next few months. Although, the deals are likely to range from $2 billion to $4 billion -- with less debt. And expect more foreign deals.

Funny enough, Rubenstein seems to be leading the charge with its recently announced a $2.54 billion deal for a majority stake in Booz Allen Hamilton.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

David Rubenstein of the Carlyle Group was scheduled to speak at the Wharton Private Equity Forum in Philadelphia this morning, but his speech was interrupted by protesters from the Service Employees International Union. Eventually, the Philadelphia police arrived and 'escorted' the protesters away.

The protest was inspired by Carlyle's purchase of Toledo-based ManorCare, the largest chain of nursing homes in the U.S. (There's a photo of the protest over at DealBreaker, featuring a large banner that was unfurled at the conference, reading "Carlyle: Fix Manor Care nursing homes! NOW.") A flier handed out by the SEIU at the protest asked Carlyle to "Put People Above Profits." Seems that the union suspects that Carlyle might try to make money through other people's suffering -- and indeed make some people's suffering worse in the pursuit of profits.

The union's website dedicated to Carlyle and other private equity big shots states that it is "concerned that Carlyle's business practices may put everyday Americans at risk by endangering public services, imperiling the environment, jeopardizing the health of vulnerable senior citizens, and supporting human rights abuses abroad." Of course, SEIU is not alone is these concerns. Some Democrats have called for Congress to investigate the situation.

Apparently, Rubenstein was initially shocked by the protest, but recovered in time to mock the protesters' proletarian language skills, urging one woman to "take a remedial course in English before you go any further." His speech eventually got under way, and in it he admitted that the image of private equity is now "tarnished." But private equity is about to enter a new golden age -- actually, a "platinum age," as he called it -- and as long as private equity firms can do a better job at promoting themselves and doing things like giving generously to charity, all should be well. After all, capitalism is a "combat sport." An interesting sport, though, that requires police intervention to protect one side against the other.

This week, the cofounder of the Carlyle Group, David Rubenstein, paid $21.3 million for a copy of the Magna Carta. In an offbeat way, is this a sign of optimism for the private equity space?

Well, today Rubenstein gave an interview with CNBC. Basically, he thinks there are some compelling investment opportunities – especially in energy, healthcare, and financial services. What's more, he's bullish on emerging markets. He's not only excited about China but even Africa and the Middle East. For example, in Africa, Rubenstein thinks there are opportunities for mining/minerals, financial services, and telecom.

Although, things may be remain somewhat slow in terms of deal activity, at least in the US, Rubenstein thinks sellers may be in denial on valuations. Also, to get deals done, private equity funds will probably need to pony up more equity. But, with the huge amounts of capital in these funds, that shouldn't be hard to do.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

It's been fairly slow for private equity dealmakers lately. So what to do? How about spend $21.3 million for the Magna Carta?

Well, that's what Carlyle's co-founder, David Rubenstein, did yesterday at Sotheby's.

Actually, Rubenstein is a political junkie. Rubenstein served as deputy domestic policy advisor in President Carter's White House. His political savvy has been a nice complement to his dealmaking.

Of course, the Magna Carta is an amazing document, which helped to spark revolutions, such as free speech and even capitalism.

The good news is that Rubenstein isn't going to have the document as an ornament for his office. Instead, he plans to lend it to the National Archives.

The prior owner was the outspoken billionaire, Ross Perot, who purchased the document in 1983 for a mere $1.5 million.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

This week, the co-founder of the Carlyle Group, David Rubenstein, paid $21.3 million for a copy of the Magna Carta. In an offbeat way, is this a sign of optimism for the private equity space?

Well, today Rubenstein gave an interview with CNBC. Basically, he thinks there are some compelling investment opportunities – especially in energy, healthcare, and financial services. What's more, he's bullish on emerging markets. He's not only excited about China but even Africa and the Middle East. For example, in Africa, Rubenstein thinks there are opportunities for mining and minerals, financial services, and telecom.

Although things may be remain somewhat slow in terms of deal activity, at least in the U.S., Rubenstein thinks sellers may be in denial on valuations. Also, to get deals done, private equity funds will probably need to pony up more equity. But, with the huge amounts of capital in these funds, that shouldn't be hard to do.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

It's been fairly slow for private equity deal makers lately. So what to do? How about spend $21.3 million for the Magna Carta?

Well, that's what Carlyle's co-founder, David Rubenstein, did yesterday at Sotheby's.

Actually, Rubenstein is a political junkie. That is, he served in President Carter's White House (as deputy domestic policy advisor). His political savvy has been a nice complement to his deal making.

Of course, the Magna Carta is an amazing document, which helped to spark revolutions, such as free speech and even capitalism.

The good news is that Rubenstein isn't going to have the document as an ornament for his office. Instead, he plans to lend it to the National Archives.

The prior owner was the outspoken billionaire, Ross Perot, who purchase the document in 1983 for a mere $1.5 million.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

One of the pioneers of private equity is The Carlyle Group. The firm has minted billions and is a major force in finance, managing about $76 billion.

But lately things have cooled off. For example, Carlyle's Blue Wave hedge fund is down 9.3% for the year (this is according to a piece on Bloomberg.com). The problem was exposure to pesky mortgage investments.

So it should be no surprise that Carlyle's co-founder, David Rubenstein, is kind of glum. He recently commiserated for the folks at the American Enterprise Institute (there was also coverage in TheDeal.com, which is a paid publication).

Rubenstein thinks that private equity may be facing some tough times, and looks at the parallels of the conglomerates of the 1960s.

It's a pretty apt analogy. After all, as private equity firms get bigger and bigger, they look like bloated entities of disparate business units. In other words, might there be lots of complications in managing all this?

I think so.

Besides, the other big issue is finding liquidity for these private companies. Keep in mind that the IPO market has yet to recover from its boom days of the 1990s. And, M&A appears to be tailing off. Oh, and with the credit crunch, how will private equity funds get financing for deals?

So far, there aren't many clear answers. Or, at least Rubenstein isn't giving us any ideas so far.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

At the Private Equity Analyst Conference in New York yesterday, the co-founder of the Carlyle Group, David Rubenstein, has continued to be oblique on the question of going public. Hey, in light of the Blackstone (NYSE: BX) debacle, I can understand why.

Well, according to the Wall Street Journal [a paid service], Carlyle is taking another approach (at least for now). That is, the firm has snagged a $1.35 billion private investment from Mubadala Development Company, which is part of Abu Dhabi. Essentially, this places a hefty $20 billion valuation on Carlyle.

It's an important move. Carlyle wants to have a permanent source of capital, which can help with minority investment opportunities and even buying up other private equity firms.

Plus, in order to keep up the growth momentum, Carlyle needs to expand into new markets, such as the Middle East.

The investment points out something else: Abu Dhabi is quite bullish on the global financial markets. Besides its Carlyle investment, the government (which controls the United Arab Emirates) is also taking a large position in the NASDAQ as well as the London Stock Exchange.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements

At the Private Equity Analyst Conference in New York yesterday, the co-founder of the Carlyle Group, David Rubenstein, has continued to be oblique on the question of going public. Hey, in light of the Blackstone (NYSE: BX) debacle, I can understand why.

Well, according to the Wall Street Journal [a paid service], Carlyle is taking another approach (at least for now). That is, the firm has snagged a $1.35 billion private investment from Mubadala Development Company, which is part of Abu Dhabi. Essentially, this places a hefty $20 billion valuation on Carlyle.

It's an important move. Carlyle wants to have a permanent source of capital, which can help with minority investment opportunities and even buying up other private equity firms.

Plus, in order to keep up the growth momentum, Carlyle needs to expand into new markets, such as the Middle East.

The investment points out something else: Abu Dhabi is quite bullish on the global financial markets. Besides its Carlyle investment, the government (which controls the United Arab Emirates) is also taking a large position in the Nasdaq as well as the London Stock Exchange.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

At the beginning of this year, I wrote that Carlyle Group co-founder David Rubenstein was predicting that emerging markets would see a surge in private equity activity.

While he didn't say that the private equity money would be departing the West for that region, that may be what has happened. According to The New York Times, private equity firms are setting new records with the size of the buyouts funds they are raising for Asian markets: "... investors are expected to commit $25 billion more in the second half of this year to private equity funds in Asia, according to the Center for Asia Private Equity Research. That would be on top of $15.4 billion in fresh capital committed to regional funds in the first half of 2007, a rise of 57 percent over the period a year earlier."

With $35.7 billion in unallocated funds ready to be invested in the region, emerging markets could see private equity fueling a continued bull market. In addition, the confidence of firms like Carlyle, KKR, and TPG should assuage investors' concerns about the region. None of these firms have a reputation for speculative investment, and the rapid growth may be for real this time.

Use ETFConnect.com to find an emerging markets ETF for your portfolio if you don't already have one..

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 will hit the shelves soon: Beyond Wall Street: The Rise of Private Equity and the Future of Investing. It should be a good read.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements