Private equity looks to new markets: JPMorgan

By Olesya Dmitracova

LONDON (Reuters) - Financial sponsors are looking further afield for deals as demand for leveraged loan debt slows in Europe and the United States in the wake of the global credit crunch.

"People are taking this time to look more into new geographies," Karen Simon, JPMorgan Chase & Co's (JPM.N: Quote, Profile, Research, Stock Buzz) head of financial sponsors for Europe, Middle East, Africa and Asia, told the Reuters Hedge Funds and Private Equity Summit in London on Tuesday.

"They (financial sponsors) are trying to figure out how to be more creative," she said.

Simon noted recent deals by U.S.-based buyout fund TPG Capital and European private equity firm BC Partners.

On Monday, the chief executive of Russian pharmaceutical distributor CIA International said TPG had agreed to buy a 50 percent stake in the company for $800 million.

In February BC Partners agreed to buy a 50.8 percent stake in Turkish retailer Migros.

Emerging market private equity funds raised a record $59 billion in new capital last year, a 78 percent increase over 2006, according to the Emerging Markets Private Equity Association.

Almost half the fresh capital raised went to commitments in emerging Asia, the industry body said.  Continued...