1
GLOBAL PRIVATE EQUITY
Is America’s Burgeoning Export of Private
Equity Capital a Plus or Minus for the Global
Economy?
David M. Rubenstein
Co-Founder and Managing Director
December 6, 2005
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Major American Exports: 1950
(dollars in billions)
Rank
1
2
3
4
5
6
7
8
9
Category
10
Raw cotton
Value
$7.9
$3.3
Wheat
$3.1
Automotive parts and accessories
$2.4
Motor buses, trucks, and chassis
$1.7
Leaf tobacco
$1.9
Tractors and carts
$1.9
Medicinal and pharmaceutical preparations
$1.6
Coal, bituminous
$1.6
Electrical machinery and equipment
Metal-working machinery and tools
$1.5
Source: United Nations Yearbook of International Trade Statistics. Values inflation
adjusted to 2003 dollars.
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Major American Exports: 2004 Estimates
(dollars in billions)
Rank
1
2
3
4 Private equity capital (with LBO leverage)
$30.0
5
6
7
8
9
Category
10
Automotive vehicles, parts, and engines
Value
$80.7
$46.1
Computer accessories
$31.3
Civilian aircraft
$23.3
Telecommunications equipment
$20.7
Industrial machines, other
$21.7
Electric apparatus
$21.2
Pharmaceutical preparations
$20.5
Semiconductors
Plastic materials
$17.9
Source: World Trade Magazine, October 2004 – Census Bureau data as of 2003; Thomson Venture
Economics, data for partnerships only; EVCA, APER; Standard & Poors LCD
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Major American Exporters: 1994
(dollars in billions)
Rank
1
2
3
4
5
6
7
8
9
Company name
10
General Motors
Exports
$16.1
$11.9
Boeing
$11.8
Chrysler
$9.4
IBM
$6.3
General Electric
$8.1
Motorola
$7.4
Philip Morris
$4.9
Archer Daniels Midland
$4.7
Ford Motor
Hewlett-Packard
$4.7
Source: Fortune, November 13, 1995
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Selected Major American Exporters: 2004
Company name
Exports
(dollars in billions)
Private equity industry GPs & LPs (w/ LBO leverage)
$30.0
Boeing
$15.4
General Electric
$9.1
Caterpillar
$7.3
Archer Daniels Midland*
$7.0
Motorola
$4.5
Altria
$3.5
Source: company reports; *data for the 12 months ended 6/30/04; Thomson Venture
Economics, data for partnerships only; EVCA, APER; Standard & Poors LCD
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Private Equity
1.
Investment of capital in buyo