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The attractions of sticking with private credit are obvious. And Ares’ greatest growth spurts have come during tough times like the 2008 financial crisis and the height of the Covid-19 pandemic. It’s easy enough to understand why Ares Cap would prefer to lend to a big firm than to a small- or middle-market one.
They’re one of the older privateequityfirms around, been been in business since 1994. But there came to be, in certain situations, buyers that were bootstrap, buyers that were, we would call ’em today, they then leveragedbuyout financiers. And now we call it the privateequity industry.
But because these are really good businesses, which got levered, they got leveraged through these leveragebuyouts. Early nineties was the start of the modern high yield leveragebuyout business done at scale. By the time 2008 came around, we had about $5 billion. I wanted to make sure it just came through.
Not, not terribly busy in 2007 to be honest, but in 2008, 2009, 10, it was by far the busiest time in my career in investing. I mean, if you’re buying debt in, in, you name it company at 20 cents to 60 cents, and they’re owned by, you know, marquee privateequityfirms, what’s gonna happen with that?
Committed US$150 million to Hellman & Friedman Capital Partners XI, which focuses on leveragedbuyouts and growth capital opportunities in North America and Europe, primarily in the technology & software, healthcare, financials and consumer & retail sectors. STAR Capital is a mid-market, U.K.-based
Carlyle Group is aiming to accelerate the pace of initial public offerings (IPOs) and asset sales in 2025, targeting $4bn to $5bn in exits from its privateequity portfolio, in line with last years divestments, according to a report by Reuters.
The current book is called “These Are the Plunderers, How PrivateEquity Runs and Wrecks America” That’s a little bit of a sensationalistic headline. When we spoke, the focus and conversation really emphasizes the largest of the large privateequityfirms. And that’s why we’re focusing on them.
So, I graduated from business school in 1987 and went to GE Capital for two years, financing leveragedbuyouts. I mean, you know, I probably shouldn’t have been doing it because I had been a journalist covering public schools and knew nothing about leveragedbuyouts. I know Jeff, privately, was quite miffed at Jack.
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