James Coulter, a co-founder of TPG Capital, comments on the development of the private equity industry. He spoke at a conference in Hong Kong on Nov. 9.

"Private equity is going to become a more strategic business. It’s not going to be about simply the IPO market. It’s going to be about how we strategically enter the marketplace. We have to build companies and help accelerate the speed with which they get to scale."

"If you look at the markets in China and India, even the companies that get to the public market are under-scaled.

"The Chinese market, and to a large extent the Indian market, is a pre-IPO market. It’s been a very good business over the past few years. IPO volume in China has become a bit constricted and the marketplace has become a little bit more volatile. So the question is how all those companies that have been invested in on a pre-IPO basis are going to get to an exit."