David Rubenstein is the co-founder and CEO of the Carlyle Group – a well-known alternatives manager that has carved out a significant corner in the world of private equity. At one of the popular private equity conferences in Berlin, SuperReturn International 2014, Rubenstein laid out his perception on the current and future state of private equity – with an obvious tinge of optimism. A key message during the presentation is that private equity firms should look to sovereign funds as a source of capital. The asset growth rates of sovereign wealth funds has outpaced U.S. public pensions in the last five years.
In the future, David Rubenstein sees sovereign wealth funds as the biggest single source of capital, replacing U.S. pension funds.
When Rubenstein opines, private equity professionals tend to listen. Why? The publicly-traded private equity firm has been able to attract goliath-like limited partners such as large U.S. pension funds, endowments and sovereign funds. The billionaire philanthropist often makes forecasts in the private equity community – highlighting that more private equity firms may go public.
2014 – A Private Equity Renaissance
2013 was definitely a promising year for the private equity industry as deal flow and capital raises maintained upward trends since 2010. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]