Leveraged buyout in the context of "Blackstone Group"

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⭐ Core Definition: Leveraged buyout

A leveraged buyout (LBO) is the acquisition of a company using a significant proportion of borrowed money (leverage) to fund the acquisition with the remainder of the purchase price funded with private equity. The assets of the acquired company are often used as collateral for the financing, along with any equity contributed by the acquiror.

While corporate acquisitions often employ leverage to finance the purchase of the target, the term "leveraged buyout" is typically only employed when the acquiror is a financial sponsor (a private equity investment firm).

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👉 Leveraged buyout in the context of Blackstone Group

Blackstone Inc. is an American alternative investment management company based in New York City. It was founded in 1985 as a mergers and acquisitions firm by Peter Peterson and Stephen Schwarzman, who had previously worked together at Lehman Brothers. Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate business has actively acquired commercial real estate across the globe. Blackstone is also active in credit, infrastructure, hedge funds, secondaries, growth equity, and insurance solutions. As of September 30, 2025, Blackstone has $1.2 trillion in total assets under management, making it the world's largest alternative investment firm.

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Leveraged buyout in the context of Restructuring

Restructuring or Reframing is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Other reasons for restructuring include a change of ownership or ownership structure, demerger, or a response to a crisis or major change in the business such as bankruptcy, repositioning, or buyout. Restructuring may also be described as corporate restructuring, debt restructuring and financial restructuring.

Executives involved in restructuring often hire financial and legal advisors to assist in the transaction's details and negotiations. It may also be done by a newly-hired CEO specifically to make the difficult and controversial decisions, required to save or reposition the company. It generally involves financing debt, selling portions of the company to investors, and reorganizing or reducing operations.

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Leveraged buyout in the context of Retail apocalypse

The retail apocalypse refers to the closing of numerous brick-and-mortar retail stores in the Western world, especially those of large chains, starting in the 2010s and accelerating due to the mandatory closures during the COVID-19 pandemic.

In 2017 alone, more than 12,000 physical stores closed. The reasons included debt and bankruptcy in the face of rising costs, leveraged buyouts, low quarterly profits outside holiday binge spending, delayed effects of the Great Recession, and changes in spending habits. American consumers have shifted their purchasing habits due to various factors, including experience spending versus material goods and homes, casual fashion in relaxed dress codes, as well as the rise of e-commerce and particularly juggernaut companies such as Amazon.com and Walmart. A 2017 Business Insider report dubbed this phenomenon the "Amazon effect" and calculated that Amazon.com was generating more than half of retail-sales growth.

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Leveraged buyout in the context of Financial sponsor

A financial sponsor is a private equity investment firm, particularly a private equity firm that engages in leveraged buyout transactions.

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Leveraged buyout in the context of Brynwood Partners

Brynwood Partners is an American private equity investment firm focused on leveraged buyout and other control investments.

Since its founding in 1984, the firm, headquartered in Greenwich, Connecticut, has raised five investment funds, including a $250 million fund in 2005. Through these funds, the company owns firms and brands including Juicy Juice, Balance Bar, and Pearson's Candy Company (Nut Goodie, Salted Nut Roll, Mint Patties, Bun Bars and Bit-O-Honey).

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Leveraged buyout in the context of Private equity firm

A private equity firm or private equity company (often described as a financial sponsor) is an investment management company that provides financial backing and makes investments in the private equity of a startup or of an existing operating company with the end goal to make a profit on its investments. The target companies are generally privately owned (not publicly listed), but on rare occasions a private equity firm may purchase the majority of a publicly listed company and delist the firm after the purchase.

To complete its investments, a private equity firm will raise funds from large institutional investors, family offices and others pools of capital (e.g. other private-equity funds) which supply the equity. The money raised, often pooled into a fund, will be invested in accordance with one or more specific investment strategies including leveraged buyout, venture capital, and growth capital. Although the industry has developed and matured substantially since it was invented, there has been criticism of private equity firms because they have pocketed huge and controversial profits while stalking ever larger acquisition targets.

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Leveraged buyout in the context of Borden (company)

Borden, Inc., was an American producer of food and beverage products, consumer products, and industrial products. At one time, the company was the largest U.S. producer of dairy and pasta products. Its food division, Borden Foods, was based in Columbus, Ohio, and focused primarily on pasta and pasta sauces, bakery products, snacks, processed cheese, jams and jellies, and ice cream. It was best known for its Borden Ice Cream, Meadow Gold milk, Creamette pasta, and Borden Condensed Milk brands. Its consumer products and industrial segment marketed wallpaper, adhesives, plastics and resins. By 1993, sales of food products accounted for 67 percent of its revenue. It was also known for its Elmer's and Krazy Glue brands.

After significant financial losses in the early 1990s and a leveraged buyout by private equity firm Kohlberg Kravis Roberts (KKR) in 1995, Borden divested itself of its various divisions, brands and businesses. KKR shut Borden's food products operations in 2001 and divested all its other Borden operations in 2005. Borden dairy brands are currently used by Borden Dairy for milk and by Dairy Farmers of America for cheese.

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Leveraged buyout in the context of PAI Partners

PAI Partners is a French private equity firm based in Paris. It is one of the oldest firms in the sector, with its origins dating back to Paribas Affaires Industrielles, historically the principal investment arm of Paribas, which started operations in 1872.

PAI manages €25.4 billion of dedicated buyout funds. Since 1994, PAI has completed 65 LBO transactions in 11 European countries, representing over €48 billion in transaction value. PAI has 62 agents from 10 countries and teams in Paris, London, Luxembourg, Madrid, Milan, Munich, Stockholm and New York City.

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