Blackstone has shifted its focus for new deals to Europe and Asia from the U.S., said James, as Europe stabilizes and China finds its economic footing.
Deal making in the U.S. has slowed. The number of private- equity transactions announced this year through yesterday dropped 16 percent compared to the same period last year, according to data compiled by Bloomberg.
“There’s just not much out there to buy,” James said. “There aren’t many corporate sellers -- why that is, we can speculate -- but there just aren’t.”
James said he’s disturbed that markets haven’t reacted more negatively to the impending breach of the U.S. debt ceiling. Investor “complacency” allows Congress and President Barack Obama to delay deciding whether to raise the ceiling until the last minute, he said.
“That’s one of the most dangerous things about this cycle,” James said. “If you can push it to the limit, there’s a high possibility of miscalculation.”