(Adds comments, industry background in paragraphs 4-7)
By Guillermo Parra-Bernal
RIO DE JANEIRO, April 14 The global private
equity industry will focus more on emerging markets in coming
years as Brazil and China become the leading global recipients
of capital from the sector, a senior industry executive said on
There will also be more listed buyout firms in the years
ahead and players will focus on "value creation," or active
management of investments, rather than macroeconomic trends or
debt to make acquisitions, said David Rubenstein, co-chief
executive officer of Carlyle Group LP, one of the largest U.S.
In a speech about the sector that he dubbed "Private Equity
4.0," Rubenstein said sovereign wealth funds will be the
industry's main funding source and their coffers may keep rising
in coming years thanks to stable sources of income. China and
Brazil, the world's largest emerging market economies, will be
the top recipients of private-equity capital in a few years, he
The executive, who co-founded Carlyle, said the push into
emerging markets is even bigger than it was at prior industry
phase between 2006 and the end of last year.
"Yes, emerging markets have problems from time to time, but
they don't have the same problems that developed economies do,"
Rubenstein said at an event sponsored by ABVCAP, the group
representing Brazilian private-equity and venture capital funds.
"Five years from now the amount of money invested in emerging
markets will be way bigger than today."
In recent months, private-equity bankers have shown their
concern with Brazil's high taxes and the government's slowness
to help strengthen capital markets. Currently, ABVCAP is urging
the government and lawmakers to reduce the tax burden on venture
capital funds to help the latter lure investment for
entrepreneurial projects and deal better with bankruptcies.
As has been the rule for years, Brazil remains the largest
recipient of private-equity investments in Latin America,
accounting for more than two-thirds of the amount invested and
over 70 percent of all the deals.
(Reporting by Guillermo Parra-Bernal; Additional reporting by
Luciana Bruno; Editing by Andre Grenon and Andrew Hay)