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PE firms adding hedgefunds to approved lender lists Submitted 16/08/2023 - 11:22am Privateequityfirms, including buyout major KKR & Co, are beginning to add hedgefunds to their 'white lists' of approved lenders used to arrange funding for leveragedbuyout deals, according to a report by Bloomberg.
PrivateEquityPrivateequity is a form of alternative investment that involves investing in privately-held companies. It encompasses strategies such as venture capital, leveragedbuyouts and investing directly in publicly-traded privateequityfirms.
PrivateEquityPrivateequity is a form of alternative investment that involves investing in privately-held companies. It encompasses strategies such as venture capital, leveragedbuyouts and investing directly in publicly-traded privateequityfirms.
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. You can’t do privateequity. There’s leverage. And still growing.
BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, I have an extra special guest, his name is Steve Klinsky, and he has an absolutely storied history in the field of privateequity. And what was interesting was the first leveragedbuyout of a public company happened when I was in graduate school.
Had a group based in Los Angeles that had a long and, and, and experienced team that was investing in distressed debt and really kept separate and apart from what the rest of the hedgefund at PWA was doing. Panossian ] 00:08:19 The liabilities, obviously the hedgefunds had redemptions. That had mismatched assets.
Passing that milestone puts the firm in the same league as mutual fund behemoths and banking giants. Privateequityfirms have sought to join a special club: managing $1 trillion in assets, a milestone that would put them in the same league as mutual fund behemoths like BlackRock and Fidelity and banking giants like JPMorgan Chase.
This week on the podcast, another extra special guest, David Ru, is Chairman of Bay Pine, a fascinating privateequityfirm. They are not interested in simply flipping companies or buying firms, and then quickly selling them what they do. Much more involved than a consulting firm.
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. RITHOLTZ: From the equity side or the debt side?
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