Emerging market private equity booming?

Private equity investing has become global. Witness the investment by China in the Blackstone group and the Carlyle Group. The international fund raising effort, despite a difficult climate, is going strong. Morgan Stanley just announced it had lined up commitments for a $1.5 billion Asia fund, its third such fund. According to Financial News Online, private equity funds that invest mainly in emerging markets raised $29 billion as of the end of August, compared with $33.2 billion in all of 2006. So we're on track for another record. Of course this amount is a mere pittance compared with domestic funds, where fund raising has not fallen off. So there is little chance that overseas gains will offset whatever losses the industry racks up here over the next few years. Still, I would expect more funds to sell stakes to overseas entities.

For more:
- here's the Financial News Online article
- here's more on Morgan Stanley

Read more on: The Blackstone Group l The Carlyle Group l Morgan Stanley l private equity l China