DAVOS-Relief for buyout bosses as state funds take the rap

DAVOS, Switzerland, Jan 26 (Reuters) - After years as the bogeymen for Europe's trade unions and some politicians, buyout bosses are breathing a sigh of relief this year at Davos -- state funds are being seen as the new scary faces of capitalism.

"For the first time in about five years we haven't been the centre of scorn. The sovereign wealth funds have gotten most of that this year," said David Rubenstein, a founder of private equity giant Carlyle Group.

"I am happy to sit on the sidelines, but I am starting to get concerned we have not got enough criticism," he joked during the annual meeting of the World Economic Forum that attracts policymakers and business leaders from around the world.

Sovereign wealth funds, which manage assets worth over $2 trillion, are a hot topic at the World Economic Forum as debate rages over whether the cash-rich funds are saviours of global finance or a threat to stability and national interests.

Mohamed Al-Jasser, vice governor of Saudi Arabian Monetary Agency, complained on Thursday in Davos that sovereign wealth funds were being treated as "guilty until proven innocent" by politicians suspicious of possible ulterior motives.

Private equity firms came under fire in recent years, particularly in Europe, for prioritising profits over jobs and stripping assets. A German government minister hit the headlines in 2005 by referring to buyout groups as capitalist "locusts".

(Reporting by Clara Ferreira-Marques; editing by William Schomberg)