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The private equity scene in the US continues its freeze. So many firms are looking for opportunities overseas, especially in Asia. For example, according to a piece in The Wall Street Journal, TPG is finishing up its deal to buy a 43.4% stake in NIS Group, a Japanese lender.
Interestingly enough, it looks like JP Morgan (NYSE: JPM) wants to jump in too.
The firm announced that it has plowed $750 million into a new fund that's focused on Asia. The main principals of the fund, Varun Bery and John Troy, are the folks who built TVG Capital Partners, which has extensive experience in Asia.
No doubt, Asia is still growing at a nice clip, which means that deals require less debt. And, because of regulatory requirements, the deal-making tends to be in the form of minority stakes, which means less by way of equity capital infusions.
However, the fact remains that many other funds are gunning for the Asian market -- including Blackstone (NYSE: BX) -- which could drive valuations and lead to the kinds of problems that we've seen in the US.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
2-19-2008 @ 10:16PM
gsgtaz said...
Additional contributions to the national fall is taking everything over seas.. What the hell are you people thinking other than your own pocket books. Its about our country not just one pocket. You like remember who got you where you are ? Yea your own country. Want to go to Asia, Then close shop here and get out totally. I dont mind moving my money from your Bank to an Indepent bank here at home.