Loose Change - April 9, 2007
GlobalCapital, is part of the Delinian Group, DELINIAN (GLOBALCAPITAL) LIMITED, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 15236213
Copyright © DELINIAN (GLOBALCAPITAL) LIMITED and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Loose Change - April 9, 2007

Oh, so that's how they do it...

Oh, so that's how they do it... In The Blackstone Group's S-1 filing with the Securities and Exchange Commission, the private equity heavyweight spells out how a leveraged buyout works. Explaining that private equity funds typically borrow most of the purchase price of a company, Blackstone lets the reader in on a little trade secret: "A significant reason why many private equity funds may deliver superior returns on equity relative to traditional equity investments is the benefit of leverage." Great. Now everyone is going to be doing it.

Related articles

Gift this article