NEW YORK, Sept. 26, 2006 (PRIMEZONE) -- Investment leaders from The Carlyle Group, Warburg Pincus, The Blackstone Group, Bain Capital, and Technology Crossover Ventures took to the stage today at the Dow Jones Private Equity Analyst Conference to defend the prevalence of mega funds of $10 billion and more, that have boosted private equity fund raising to $154 billion so far this year.
The year is almost assured to surpass last year's level and break the previous record set in 2000. And the numbers could keep climbing. David M. Rubinstein, founder of The Carlyle Group, said he would not be surprised if mega funds grew to $50 billion in size, if large funds continue to generate a higher rate of return.
The new funds are already being put to work, according to Hamilton E. James, president of The Blackstone Group, noting that the overhang of funds is down and 40% of his firm's recent fund is already being invested.
It's not just about the funds. Rubenstein noted a "real paradigm change" in private equity as larger companies are being bought out, causing private equity to have a greater impact on the economy in general. Even the term private equity needs to be rethought, he suggested, proposing that the term "change equity" might be better suited.
He called on the industry to do a better job of explaining the benefits private equity brings to the economy from improving companies to increasing shareholder value to job creation to increasing returns to pension funds-which are major investors in private equity funds.
With more than 1,000 attendees including more than 130 limited partners, the conference remains the premier networking event in the private equity industry. It continues this afternoon and tomorrow at the Waldorf=Astoria Hotel in New York.
The Private Equity Analyst Conference is sponsored by KPMG LLP; DLA Piper Rudnick; Warburg Pincus LLC; Merrill Corporation; Nixon Peabody LLP; UBS Investment Bank; AIG Global Investment Group; Churchill Capital; Palmeri Fund Administrators; Tatum; and Paul Capital Partners.
For more information, visit http://peaconference.dowjones.com/. Register on-site at the hotel or call (866) 291-1800.
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Private Equity Analyst (www.privateequity.dowjones.com), published by Dow Jones Financial Information Services group, is the leading provider of data, news and analysis for private equity professionals. Related products include the daily online newsletter LBO Wire and the online database, Private Equity Analyst Plus, a series of senior level executive conferences including the Private Equity Analyst Conferences (NY and London), the Private Equity Analyst Outlook Conference (NY) and The Limited Partners Summit series (NY, SF, Europe); cutting edge research reports on critical private equity topics such as terms and conditions, compensation and liquidity trends; and the most respected and referenced directories for the industry including Galante's Venture Capital & Private Equity Directory and The Directory of Alternative Investment Programs.
About Dow Jones Financial Information Services
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