PE HUB Wire Highlights, 5.17.19


private equity, mergers, M&A
Private Equity Editor Chris Witkowsky reflects at home. Photo by Wendy Witkowsky

Rubenstein talks family offices, emerging markets, Market outlook after largest-ever secondary deal

Happy Friday!

Hope your week went well. I was in Washington earlier this week for the EMPEA/IFC Global Private Equity conference, one of my favorite events of the year.

David Rubenstein, co-executive chairman of Carlyle Group, who gave a keynote speech at the conference, said the time is right for investors to put their money in emerging markets. “The bloom is off the rose” for emerging markets, which means the segment is right for contrarian bets, he said.

“I am putting my personal money into emerging markets; that’s where the greater reward is likely to be,” Rubenstein said. “If everyone was rushing into emerging markets now, I would be nervous.”

Rubenstein also explained why he launched his family office, Declaration Capitalwhich he founded after stepping back from day-to-day leadership at Carlyle in 2017. “I set it up because everyone was asking me for many years, ‘do you have a family office?’ I began to get family office envy. I felt naked walking into parties saying, `I don’t have a family office, sorry.'”

“My family office only invests in things I know, which is private equity,” he said. Declaration doesn’t make deals that conflict with Carlyle, he said.

In January, Declaration, Donaldson Group and DRA Advisors partnered to buy a residential community in Maryland for $86.7 million. Other deals include aXiomatic, an esports and videogame startup that Declaration invested in along with Michael JordanCurtis Polk and others; WeWork competitor Convene’s $152 million Series D funding; and it led a $50 million Series D in WorkFusion, a robotic process automation company.

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