If you were hoping that the slowing economy and credit crunch would stymie private equity firms, you'll be disappointed to here the news that the latest plan from the buyout kings at Blackstone involves buying debt from private equity deals gone bad. Blackstone is raising $1.5 billion to invest in the debt of troubled distressed companies taken private in leveraged buyouts. So far they have a $100 million commitment from that New Jersey state pension fund, that invested $180 million in Lehman Brothers.
In other news, if Wall Street gets anymore Jerstastic we're going to start covering London instead.
Blackstone's GSO, Monarch Start Funds to Buy Distressed Debt [Bloomberg]
Posted by guest , Jun 17, 2008 9:41AM
Maybe they can get the Chinese government to invest, they showed them such a nice return on the BX IPO
Posted by guest , Jun 17, 2008 9:56AM
"disappointed to here the news"?
Posted by guest , Jun 17, 2008 10:03AM
wtf does jertastic mean
Posted by guest , Jun 17, 2008 10:04AM
I bet "Shug's" lawyers like this article about what happens when one patron doesn't like another patron's obnoxious comments:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/06/17/BA3M11AF8C.DTL&tsp=1
Posted by guest , Jun 17, 2008 11:15AM
@ 10:03...
i thought the same thing, but I am now guessing it is a shortend form of "jersey-tastic" (with the NJ pension fund investing in Lehman and now BX)...
Also, this just goes to show, that private equity, similar to alcohol, is the cause of and answer to all of life's problems...
Posted by guest , Jun 17, 2008 11:18AM
if one is "distressed" but not "troubled," what is one?
Posted by guest , Jun 17, 2008 12:01PM
this is old news - every buyout shop of size has been doing this over the past few months out of existing investment vehicles
Posted by guest , Jun 17, 2008 12:02PM
one is a financially and operationally sound company whose securities have been beaten down too much by a market swept up in "crisis" state of mind.