Private Equity Eyes China

05/05/2017 2:50 am EST

Focus: GLOBAL

Stephen Leeb

Founder and Research Chairman, Leeb Group

Some US companies have the right stuff when it comes to setting up shop in China, asserts Stephen Leeb, editor of The Complete Investor.

Two such two picks are premier private equity companies, Blackstone Group (BX) and The Carlyle Group (CG). 

Both have deep long-term relationships within China, where they have been instrumental in numerous acquisitions, mergers, and dedicated partnerships. 

A sense of trust is particularly important in doing business with China, and both Stephen Schwarzman, the head of Blackstone, and David Rubenstein, co-founder and CEO of Carlyle, have extensive Chinese relationships.

Rubenstein has forecast that China’s growth will continue to lead the world and said he wants to multiply the number of Carlyle professionals working in China. Schwarzman has created an international scholarship program at Tsinghua University. 

The dynamics of an interconnected and growing world should ensure rapid growth for both companies. Each has a modest P/E, a low PEG ratio, and a high and growing dividend yield.

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