Carlyle Group LP (CG), The Blackstone Group L.P. (BX): Three Private Equity Stocks for an Improving Economy

Taking advantage of discount pricing

The private equity industry has fallen out of favor after the sector faced significant challenges during the financial crisis. Shares are currently trading at low valuations as skeptical investors are unsure whether the companies will successfully grow their investments and be able to charge incentive allocations.

The global economy certainly faces challenges, but these firms should still generate reliable profits. I expect management fees to continue to pour in, with incentive allocations adding boosts to profits whenever large transactions occur (such as an IPO or major sale of property).

These three stocks represent a tremendous value and you should check them out before the market begins to account for their growth opportunities.

Zachary Scheidt has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article 3 Private Equity Stocks for an Improving Economy originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.