Romney's Claims Contradicted by His Own Peers: Street Whispers
In second-quarter earnings released Wednesday, Carlyle Group(CG) co-founder William Conway noted that the investment environment in the U.S. continues to be strong and actually is advantageous compared with the rest of the world. It also should come as no surprise that the firm, the second-largest in the industry, is also opening new U.S.-targeted corporate buyout and real estate funds that could benefit from a strengthening economy.
Other private equity titans -- even those critical of President Obama's policies and tone toward the industry -- also are scouring the U.S. for deals. Blackstone Group(BX) , the world's biggest private equity fund, has raised eyebrows by making a full-fledged push into U.S. residential real estate, adding to a previous multibillion dollar economic recovery bet on commercial real estate.
"We are now buying post-foreclosed homes, which generally need some capital improvements, and we are leasing them up. We expect this activity to drive greater housing affordability and think it will help the nation economic recovery," Blackstone President Steven Schwarzman said on the firm's second-quarter earnings call.
"The U.S. and Europe are still the most attractive places to deploy capital," Schwarzman said, referring to real estate. Blackstone recently closed a $16 billion buyout fund -- the largest since the crisis -- that's likely to mainly target U.S. companies. Carlyle and private equity industry pioneer KKR(KKR) are also nearing the close of multibillion-dollar U.S. buyout funds, the biggest since the financial crisis four years ago.
For more on private equity and the election, see why private equity has a social responsibility and why Carlyle Group co-founder David Rubenstein says Mitt Romney would need to raise taxes as president.
-- Written by Antoine Gara in New York