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Leveraged buyouts: big funds flaunt their equity muscle

Financial Times M&A

Specialist buyers may not get massive returns but high management fees can make up the difference

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Transcript: Sunaina Sinha, Global Head of Private Capital with Raymond James

The Big Picture

Leverage buyouts requires leverage. And when rates were so low, the leverage went, it was cheap and, and and easily accessible. Here’s some management fees and expenses you need to fund, but the cash back froze. But also it helped private equity do deals, right?

Capital 52
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Blackstone Becomes First $1tr Private Equity Manager

Private Equity Insights

It rose to prominence with leveraged buyouts, the kinds of transactions made famous by “Barbarians at the Gate” and other chronicles of 1980s finance. Blackstone, which began as a two-person shop in 1985 overseeing $400,000, has become a dominant force in the so-called alternative investments industry.