steenberg

Quote of the Week: Still Lots of Room For PE Growth

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January 24, 2013

“People ask .. what’s the most important thing that you’ve learned over time from private equity? … it has been and I think it will continue to be a people business. It’s about relationships. It’s about contacts. It’s about being able to do business with people. That is still, I think, a very important component of the business.”

 

Who said it: Russell Steenberg, Managing Director, Global Head, BlackRock Private Equity Partner

 

In Context: The above quote was Russell Steenberg’s view on the most important thing he’s learned about PE in 28 years. Another equally interesting idea presented in the interview is that his company sees growth ahead for PE. He said that there is more money chasing public securities in the world today than there is in the private equity world. And yet the number of private companies that exist in the world today is far greater than the 40,000 or so publicly tradable companies globally that his research team has tracked. So PE has only “scratched the surface” on private equity, he said. This does not mean that PE is not highly competitive or that there is more capital available for it than before.  But relative to the other markets and the other choices people have to put their capital in, it is still small and has lots of room to grow. BlackRock manages USD 100 billion in assets

 

Where we found it: Privcap

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