My question is: who is lending the money for these leveraged buyout deals? They seem to leave the lenders holding the bag at some point when it all implodes. Do these deals really pay off often enough to be worth financing them?
> who is lending the money for these leveraged buyout deals? They seem to leave the lenders holding the bag at some point when it all implodes. Do these deals really pay off often enough to be worth financing them?
For this deal, it is:
- ~$57b Debt financing: Bank of America, Citigroup, Apollo
- ~$46b Equity backing: Ellison's dad, RedBird Capital Partners
- Sovereign wealth funds on the equity side: Saudi Arabia, Qatar, and Abu Dhabi
They keep financing these deals so they must be making money on them but there is so much value destruction in so many of these cases. Someone has to be left holding the bag of hot garbage in the end so who is taking the loss?
We know private equity offloads the debt onto the walking corpse and usually pays themselves huge fees and bonuses for their "assistance". So it is clear how they make money. I just don't get how the banks make out.
andsoitis|3 days ago
For this deal, it is:
- ~$57b Debt financing: Bank of America, Citigroup, Apollo
- ~$46b Equity backing: Ellison's dad, RedBird Capital Partners
- Sovereign wealth funds on the equity side: Saudi Arabia, Qatar, and Abu Dhabi
xenadu02|2 days ago
We know private equity offloads the debt onto the walking corpse and usually pays themselves huge fees and bonuses for their "assistance". So it is clear how they make money. I just don't get how the banks make out.