[lbo-talk] The Wonders of Private Equity

michael perelman michael.perelman3 at gmail.com
Sat Oct 2 19:49:42 PDT 2010


No Comment Necessary.

Creswell, Julie and Peter Lattman. 2010. "Private Equity Thrives Again, but Dark Shadows Loom." New York Times (29 September) Dealbook Special Section: p. 1.

http://dealbook.blogs.nytimes.com/2010/09/29/private-equity-thrives-again-but-dark-shadows-loom/?ref=business

"This summer, executives from the New York-based private equity firm *SK Capital* traveled to Houston to celebrate the first anniversary of their acquisition of a nylon manufacturing business. Soon they will have a bigger reason to uncork the Champagne. The nylon manufacturer has announced plans to issue about $1 billion in debt, of which $922 million will be used to pay a dividend to SK. For SK, which paid $50 million in cash for the business, that is an astonishing almost 18-fold return in a little more than a year."

-- Michael Perelman Economics Department California State University Chico, CA 95929

530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com



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