PE for FIGs
Can someone explain to me how companies like Stone Point Capital or JC Flowers operate? How can you perform a leveraged buyout on a financial institution?
Thanks!
Can someone explain to me how companies like Stone Point Capital or JC Flowers operate? How can you perform a leveraged buyout on a financial institution?
Thanks!
Career Resources
In brief:
Lots of the businesses they invest in are services businesses that aren't financial institutions per se and have EBITDA just like any other business.
With regard to "balance sheet" businesses (lending/banking/insurance) they are generally not buying those out with the traditional LBO playbook, they're typically more opportunistic, operationally intensive investments that do not involve total recapitalizations necessarily (though may involve some form of capital structure optimization)
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