Remove Collateral Remove Legal Remove Leveraged Buyouts
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Private Equity's Creative Wizardry Posing Systemic Risk?

Pension Pulse

A key challenge for regulators is that much of PE’s borrowing was arranged with loose legal terms at a time when lenders were fighting for deals, making it easier today to use financial wizardry to keep sickly businesses alive. CVC Capital Partners came up with a novel use of extra leverage during its March IPO of Douglas AG.

Buyout 59
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How to Ensure Accurate Private Equity Valuations

Udu

Leveraged Buyout (LBO) An LBO transaction is an acquisition funded using a significant amount of debt where assets from both parties are used as collateral. This includes analyzing financial statements, legal documents, management team credentials, and industry trends.

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Transcript: Steven Klinsky

The Big Picture

And what was interesting was the first leveraged buyout of a public company happened when I was in graduate school. KLINSKY: In 1979, it was the first leveraged buyout of a public company. We had sold the family business, maybe buy another family business one day through a leveraged buyout. RITHOLTZ: Yeah.