The private equity scene in the US continues its freeze. So many firms are looking for opportunities overseas, especially in Asia. For example, according to a piece in The Wall Street Journal, TPG is finishing up its deal to buy a 43.4% stake in NIS Group, a Japanese lender.
Interestingly enough, it looks like JP Morgan (NYSE: JPM) wants to jump in too.
The firm announced that it has plowed $750 million into a new fund that's focused on Asia. The main principals of the fund, Varun Bery and John Troy, are the folks who built TVG Capital Partners, which has extensive experience in Asia.
No doubt, Asia is still growing at a nice clip, which means that deals require less debt. And, because of regulatory requirements, the deal-making tends to be in the form of minority stakes, which means less by way of equity capital infusions.
However, the fact remains that many other funds are gunning for the Asian market -- including Blackstone (NYSE: BX) -- which could drive valuations and lead to the kinds of problems that we've seen in the US.
Tom Taulli is the author of various books, including The Complete M&A Handbook
