leveraged buyout

“All the real money in dollars is in old school leveraged buyouts and private equity, and I just haven't done that much.”

“In those days, this is the early 19 eighties, leveraged buyouts were five percent equity or one percent equity. And very often the one percent equity deals, you would take a one percent fee. So you basically got your money back.”

“If you look at the last 15 or 20 years in private equity, a deal 20 years ago that might have been a eight to 10 times multiple with six turns of debt now trades at 16 times with six turns of debt. So there aren't leveraged buyouts anymore. They're just buyout…”

“The leveraged buyout business actually had to reinvent itself, and you don't hear the term LBO business anymore. Now you hear private equity. Well, why did they change the name? Because nobody would do it if you called it leveraged buyouts because the results …”

“And your downside case was 10%. I used to laugh. Your downside case is negative a hundred. If you're a six times lever company, it goes wrong. You're going to lose all your money.”