Europe is still a very attractive market despite the current political and economic risks, David Rubenstein, co-founder & managing director of the Carlyle Group, told CNBC on Wednesday.
"Europe is the biggest economy in the world," Rubenstein told CNBC on Wednesday. "As I've said before, it's the largest emerging market and prices have been beaten down- you can buy things at distressed prices now so I think it's a very attractive market in which to invest," he added.
Rubenstein's private equity firm Carlyle Group reported a 28 percent drop in profits last week with net income falling to $182 million in the fourth quarter, down from $254 million in the same period a year earlier. The decline was attributed to lower performance fees and a surge in compensation costs.
Rubenstein remained bullish, however, particularly on Europe.
"We're pretty bullish on the prospects going forward," he said. "We are interested in buying assets from distressed sellers…banks are in reasonably good shape and can afford to sell some [distressed] assets… at the price that the market will give them," he said.
He said there wasn't a risk of over-paying for premium European assets, as long as investors chose wisely, telling CNBC that "prices are not out of control in Europe."