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8 Biggest Private Equity Deals in History

In a private equity deal, the buyer invests in a private company, hoping to increase the value of their stake. Some investors consider this one of the most favored ways of wealth creation. The private equity industry has become a major source of investment. It annually attracts billions and millions of dollars. Most institutions that permit private equity firms to invest their money have enjoyed significant ROI. Due to the high percentage of success, private equity has attracted the interest of investors, corporate executives, young professionals, etc.

Top 8 Private Equity Deals

The highly valued private equity deals list summarized below might stun you completely!

👉$31 billion RJR Nabisco Private Equity Deal

In 1989, the talk of the private equity world was the $31 billion RJR Nabisco private equity deal. Even after so many years and several large equity deals, the RJR Nabisco LBO remains the most special. The book and subsequent film made the deal even more popular. The deal details can pique the interest of many. The highlight of the deal was cheap credit.

👉$45 billion Energy Future Holdings Private Equity Deal

The deal that made the headlines in 2007 and drove the audience crazy was Energy Future Holdings’ private equity deal worth $45 billion. This was one of the unique LBOs of Future Holdings — the consortium of KKR, Goldman Sachs, and TPG Capital. In 2007, oil prices were expected to shoot and cross $200 a barrel. But the panic struck when the price of a barrel dropped to $40. In 2014, the firm declared bankruptcy.

👉$15 billion Hertz Private Equity Deal

This is one of the most talked about deals in history. While the deal value in 2005 was $15 billion, if you consider Inflation and adjust the current value, the deal would be around $16.95 billion. Hertz was a property of Ford and was bought by an equity group with three members — Carlyle, Merrill Lynch, and Clayton Dubilier & Rice. This deal was quite lucrative for the member firms, as Hertz IPO offered huge returns. After acquiring Dollar/Thrifty in 2011, there was an increase in the company’s price per share, pushing the profit even higher.

👉$17 billion Albertson’s Private Equity Deal

In 2006, Cerberus, with CVS and Super Valu, acquired Albertson’s. They made the company private. They strategized to restructure the company and launch newly branded stores. This was a high-value deal that was done with the intent to boost revenue.

👉$22 billion Kinder Morgan Private Equity Deal

Carlyle, Goldman Sachs, and Riverstone bought Kinder Morgan, the second-largest oil producer in Texas. This deal happened in 2006, and Kinder Morgan’s IPO was made official. The buyer firms saw massive ROI. The deal was hardly volatile as the price of oil was going in the upward direction. However, the deal was hampered due to the low energy demand and high leverage.

👉$33 billion HCA Healthcare Private Equity Deal

Again, this LBO by KKR and its partners was quite a valuable deal! HCA Healthcare, a private equity transaction, is still known for the kind of value it generated. In 2006, when the investors were excited about oil and real estate, HCA was in health care and became the news for becoming one of the highest-valued buyouts in history. It was a successful deal, and the market cap rose to $60 billion.

👉$790 million Manchester United Football Club Private Equity Deal

If you think private equity cannot enter the sports industry, you are mistaken. The Glazer family-owned NFL team. Tampa Bay Buccaneers saw the opportunity and hoped for high ROI from European football or “Soccer”. With Manchester United’s balance sheet of more than $600 million, they could manage around $150 million.

👉$26 billion Clear Channel Private Equity Deal

Bought by KKR, Bain Capital, and Thomas H. Lee, these three firms got access to the satellite radio market. Communications deal in 2006 became famous for not inviting much attention and subscription from the public due to the recession.

| Read more: Privtae equity careers

Wrapping up

While some deals are remembered for their monumental size, some became popular for not kicking off. While every transaction has a unique character and impact, what remains the same is the revolutionary power of private equity. The evolution of private equity has been incredible over the years. These record-breaking private equity deals surely awed the audience with their size and scope. As a seasoned investor or a beginner, keep up-to-date with more groundbreaking deals in the future world of finance.



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