[cudabachi]

Will oil states awash in cash be the next foreign governments to get in on the U.S. private equity boom?

NEW YORK (CNNMoney.com) -- China raised eyebrows on Wall Street and in the red-hot private equity business last month when its state-run investment arm agreed to buy a stake in Blackstone Group, one of the leading private equity firms in the United States.

The question now is which governments will be the next to partner up with a major private equity firm?

Oil-producing nations - which have benefited from the climb in oil prices over the last five years - are believed to be among the most likely candidates. The surge in oil prices has sent the value of their oil exports soaring - creating huge trade surpluses and lots of cash for governments in the Middle East and Central Asia.

[Tanada]

I think the oil countries are going to be self consuming those increases for capital improvements on the one hand and standard of living improvements to keep the sheeple happy at home on the other hand. On the gripping hand, neither will do them much good in the long run so they might do as you suggest and use the fund money to set up retirement area's in safer places for the rich to live.

[threadbear]

About Blackstone: See under "Global Masters of Fraud"

"Likewise there was massive trading activity in the Far East, where the bottom- feeder investment bankers, would arrive to pick up "distressed assets," defaulted stocks and bonds for pennies on the dollar. "That was early in 1998 before things fell apart," says Al Martin, "because they knew things were going to fall apart."

"The Carlyle Group, which is Frank Carlucci, and the Blackstone Investment Group are virtually one and the same. Two different names, but they are virtually the same organization," he continues. "All they do is ride the crest of the waves of various frauds from country to country. "

http://www.almartinraw.com/uri1.html

If they are following their established pattern, they are enlisting the help of the govts. of countries, where great difficulty is expected to take place, in the near future. Interesting hedge against, and funnel for all of the Yankee bucks China's holding.

[threadbear]

Voted one of the 50 best business blogs by Asia Times:


With the Department of Justice examining syndicated leveraged buyouts or club deals, it seems as if private equity firms have something new in common with organized crime. This is the premise that must have spurred Going Private to assemble a flow chart of dealmakers in the roles of mafia bosses.

Of course here at Dealscape, we have to disagree with her choice of Louis Gerstner as the top boss and Henry Kravis as the underboss. The title of godfather is best played by Kravis. After all, his firm, KKR, put private equity on the map with its RJR buyout more than 20 years ago. Sure Gerstner was involved in the deal, but he's spent most of his career as an executive, not a dedicated dealmaker therefore he would be better as the consigliere. With that in mind, Blackstone's Stephen Schwarzman should be the underboss. Of course, the other choices are brilliant.


http://dealscape.thedealblogs.com/2006/ ... rganiz.php