"We're in the middle of an epic credit bubble ... the likes of which I haven't seen in my career," Blackstone (BX -0.1%) global head of P-E Joe Baratta told the Dow Jones Private Equity Conference last night. Those are tall words coming from Blackstone, which sold itself to the public at the peak of another fair-sized credit boom in 2007.
"Valuations we have to pay relative to the growth prospects are out of whack right now," he adds, and the biggest risk for P-E is multiples getting depressed when they're looking to exit investments.
His comments stand in contrast to the bullish tone of Blackstone President Tony James earlier this week.
Speaking at the same conference, KKR co-head of Americas P-E Alexander Navab says now's a good time to be investing in U.S. P-E. He's even more positive about Brazil where valuations are cheaper. "A lot of people who talked about going to Brazil didn't show up."