Most “boss” / 1000 IQ PE Plays
There have been a few posts like this in the past, but this is always a fun topic to broach and is in need of an update. Stories from any vertical, size etc are welcome, but I especially encourage personal anecdotes, even if you’re from little no name LMM boutique in the middle of nowhere. Doesn’t need to be a once-in-a-generation move, but anything that was smart, cunning, or “how in the world did they think of that / pull that off” would be great.
More credit than PE, but the BX/GSO Hovnanian CDS play should rank high on that list but trust that most people have already heard that story
Why, I thought they got sued and didn’t end up making much/even lost money?
You should read the book on LTCM and the new one that was just released on Apollo/Ceasars
Whats the name of the apollo/caesars one?
https://www.amazon.com/Caesars-Palace-Coup-Billionaire-Corruption/dp/16…
I'll bite.
LMM fundless sponsor. Truly a complete idiot of a human with two somewhat competent "VPs" managed to lock up two sizeable orthodontic practices (>$5 million EBITDA) before hiring a bank to run an auction. Sold to a healthcare fund who ~10x'd the business in EBITDA terms before selling it again, but the moron at the fundless sponsor made $20 million for hiring an investment bank.
Oaktree and Elliott methodically taking Apollo apart in Caesers. Like above person said the book is worth the read
Maybe an operational one:
Waste disposal company which owned multiple dumping grounds. These companies have to provide for restoration and aftercare of these grounds when they are closed until practically the end of times. Sometimes (as in this case) they also provide for the interim care of the site (different bucket). Surprise - MM PE bought the company, realised there was an enormous amount of cash locked up in this interim care provision, simply closed the sites allowing for the release of the interim and paid themselves a >1xMOIC dividend 3months after closing.
Not sure if smart from the PE or stupid from the seller or both.
EDIT: Did not mean to reply. For Oaktree/Elliot - one of the two is not like the other. Based on the book it was Elliot (as expected) who played all sides like a fiddle
And? they both still took apart APO
Apollo/Athene. It literally put Apollo in another league.
How so?
Very simple, mate: Captive AUM generating steady cash flows from management fees and being able to seed new businesses with captive AUM.
Yea also curious. Now that Athene is on balance sheet kinda seems like apo is more similiar to BX kkr CG ET al
Apo started the whole insurance/PE thing after the GFC, something all major players are eagerly trying to copy now
Respectfully disagree. APO is becoming more like Berkshire Hathaway than any of the other MFs.
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