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Prior to founding New Mountain Capital in 1999, Klinsky was co-founder of the leveragedbuyout group at Goldman Sachs, where he helped execute over $3 billion of pioneering transactions for Goldman and its clients. He also explains how Forstmann Little was the white shoe alternative to the firms doing junk bond financing.
This is making the deal easier to complete at a time when high interest rates and market volatility have made debt for leveragedbuyouts scarcer and more expensive. The terms of Compass' debt allow for it to be taken over by a new owner without it being refinanced, one of the sources said.
And what was interesting was the first leveragedbuyout of a publiccompany happened when I was in graduate school. KKR took a stock exchange company called who Houdaille, private, and it was the first time there’ve been — RITHOLTZ: ’79 or something like that? And I had no work experience in anything.
One, two, there was a theory that these businesses had volatile cash flows and therefore couldn’t be leveraged, which was the, you know, the whole point of leveragedbuyouts. And finally that they were companies run by children, young, young, young folks. These 10% are what’s driving the entire valuation.
COHAN: I was doing something I probably should never have been allowed to do, which was write about publiceducation in Wake County, which was fine. And no one had ever done that, I had to get special permission from the Board of Education in Brooklyn back when they still do that. You start writing for the Raleigh Times.
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