Hero Deals (cases worth studying)
As an extension from another thread: everyone has a list of hero deals that they've studied and learned from and hope to emulate and replicate one day. What are yours, and why? Was there a unique insight on fundamental or industry structure allowed for repeatable value creation? Clever structuring instrumental in avoiding well deserved losses or enabling excessive gains?
A few to get started:
- Caesars, protect returns and steal assets with impunity in downside case
- EOP, back to back sales of property at peak of market to de-risk and lock in gains
- Authentic Brands, separating high multiple licensing fee streams from low multiple retail ops offloaded to JV
- Kinder Morgan, segregating yield investors and fee streams such that GP of a $50B MLP itself came to be worth $50B
- Dell, tracking stock shenanigans to unlock value
- KKR/KFN, GP merger with controlled listed fund to build balance sheet for GP
- Celanese, de-listing/re-listing for a 10x $9B win in three years
- Transdigm, decades long roll-up with endless pricing power
Bump - following
JCrew Trap Door
Details please!
Portnoy buying back Barstool for $1
Transdigm is a great one (great podcast on it for any prospects looking to understand PE better). Interesting one there is a couple PE funds did really well on it but the fund (funds?) who bought the IPO did far better than anyone else
Same goes for FB or LULU...anything that turned out to have a strong underlying franchise driving growth. Was it obvious at the time though that the right trade was not to sell after IPO? It feels that a Transdigm is more obvious than a FB or LULU because it takes advantage of the structure of the industry instead of being a bet on industry growth dynamics (and individual outperformance within that industry).
Are you referring to the TransDigm episode of the Invest Like the Best Podcast?
50X Podcast also
when reading King of Capital I came thrice reading the Celanese chapter
my gf got jealous that a book made me cum faster than her
Guy Hands book on Terra Firma surprisingly good read.
added, thx
+1 on Guy Hands book. Great deals explained and the type of investments he likes. Also showed me how not to live a life....quite sad actually.
Steve Wynne with his 1st casino in Atlantic City due to the help from Mike Milken.
Wynn screwing Okada is also instructive. Read the docs, scour the articles
Following
How would you recommend finding resources to read more about the deal?
Beyond looking at press releases and proxy statements, what else can you look at to learn more?
Wondering as well
Books (autobiography), news reporting, public filings, analyst research if you have access, LP reporting if you have access, …
Silver Lake / Dell take private and subsequent reverse merger
Read Money Games and Money Machine by Weijian Shan if interested in East Asian private equity markets. It reads like Barbarians at the Gate & Caesar’s Palace Coup.
Wow these are great. Helpful for a project I'm working on.
CD&R / Belron definitely right up there as well
Tell us about it in one sentence!
Facebook / Instagram lol
Bump
The book "Private Equity: A Casebook" has a lot of good cases, with a handful for each of the different deal stages (ie deal structuring vs management vs exit). There's a good bit of deals beyond the typical mainstream ones in most books / prep materials (mainstream ones like Dell, BWW, Hertz, etc). Some deals are Berkshire-Party City, Bain-Outback, BC Partners-Gruppo Coin, and Charter's bankruptcy with Apollo/Oaktree/Crestview
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