Chicago, May 23: Buyouts of US-based companies are likely to come from China and India, and American partners will be sought out as the booming private equity world becomes increasingly global, according to a panel of private equity executives at the Asian Venture Forum in Chicago on Monday.

Wilbur Ross, chairman and CEO of WL Ross & Co., the $2.5 billion buyout fund, and William Price, founding partner of the Texas Pacific Group, a private equity firm with $14 billion under management, both sat on the panel that addressed private equity strategies for the growing Asian market.

Leonard Harlan, president of private equity firm Castle Harlan Inc., and Robert Pritzker, president and CEO of caster manufacturer Colson Associates, Inc., also joined the panel.

Price used the $1.25 billion acquisition in December of IBM's computer business by Lenovo Group Ltd, China's top PC seller, as an indication of things to come.

"That is only the first of many cases where an established Chinese company becomes a major player on the global stage," Price said.

Both Price and Ross downplayed the notion that more Asian-based buyouts would fuel competition and place a greater number of US companies on the losing end of private equity deals.

Price said that more Asian buyout interest actually provided opportunity, reiterating that joint partnerships with a local business were the way to go in Asia.

Partnering with a local entity helped abate cultural differences among workers and managers that could hamper a deal, according to Ross and Price.

When asked about the prospect of more Asian companies buying US companies, Ross said: "In certain sectors I believe that's true. I don't think you'll see a Chinese bank buying an American bank any time soon. But I think you'll see more of this in the natural resources sector. There is a lot of wealth building up in China right now."

The panel also discussed the merits of working with the local governments, which in turn may help the local population to be more accepting of a US company taking over a business.

"These days, it's a lot safer to be doing direct investing in China, compared to early to mid 1990s. There is greater clarity of rules, better accounting and corporate leadership is better. Of course it varies by country, but in general, the trends are coming our way in terms of reducing risk in Asian investing," Price said, adding that valuations and growth potential were more attractive in Asia than the United States and that exiting deals in Asia is "getting easier."

Ross, Price and Harlan agreed that Asian executives were becoming more receptive to being approached by US private equity firms.

"We're in the search for imperfect markets wherever they are," Ross said. "We find Asia very attractive in that regard. We will continue to seek opportunities in China and India in a big way."

In terms of the amount of time in which he likes to hold on to a company before exiting, Ross said 24 months was optimal.