Published On: Tue, Mar 24th, 2015

Carlyle’s David Rubenstein Places Huge Bet On Energy With New Fund

Rubenstein said, "There is no sector in the world that we are more bullish on than we are on energy."

Carlyle Group co-founder and CEO David Rubenstein participates in the Washington Ideas Forum,   in Washington

 

Carlyle Group head David Rubenstein thinks energy is the best investment. The firm is expressing its confidence in the future of energy investments, despite oil prices plummeting by half in 2014, by establishing a $2.5 billion fund for oil and gas investments outside the U.S., according to CNBC. Rubenstein said, “There is no sector in the world that we are more bullish on than we are on energy.”

Rubenstein believes oil and gas assets were a buy at current prices and are good investments to hold onto for several years. The fund will have holdings in Asia, Latin America, Europe and Africa. Carlyle has other funds with a concentration on the United States, and around 50% of Carlyle’s investments are domestic.

While some worry about the strong dollar and its effect on U.S. businesses abroad, when investing in a country, a strong currency is a good sign, and Rubenstein thinks the U.S. will attract overseas investments. Concerning the stock market, Rubenstein thinks that its valuation is above normal levels and it seems ripe for a correction to some degree. A rise in interest rates may spark a reversal in high stock valuations.

Basically, Rubenstein is optimistic about the U.S., and added, “It’s a good place to invest. You just have to be careful about what you do and what price you pay.”

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