* Kravis does not expect a U.S. recession
* See historic shift of economic power to East from West
By Elzio Barreto and Stephen Aldred
HONG KONG, Nov 9 Kohlberg Kravis Roberts
co-founder Henry Kravis said volatility and uncertainty in
global markets had created enormous challenges and threats as
financial firms, investors and governments face sovereign debt
crisis and a slowdown in major economies.
Kravis, one of the pioneers of the private equity industry,
said on Wednesday Europe "remains our biggest concern", adding
while U.S. unemployment would likely remain high for a long
time, he did not expect the world's largest economy to go into
"We all face enormous challenges and threats coming from a
lot of different directions without a doubt," Kravis said.
"The deep systemic problems that the U.S. is facing and
Europe as well are obviously contributing to this historic shift
of economic power from the West to the East and I think that
will continue without a doubt."
Kravis, who co-founded KKR in 1976 with George Roberts, said
the firm believed the global economy was in the third and final
stage of a debt driven cycle that began with the bankruptcies of
Enron, Tyco and Worldcon.