10 Most Successful LBOs and Private Equity Buyouts in History

The 1980s saw the beginning of the first private equity boom, which culminated in RJR Nabisco’s acquisition. That period also witnessed the rise of notorious corporate raiders like Carl Icahn, T. Boone Pickens, Kirk Kerkorian and many others. Their hostile takeovers and subsequent asset stripping of companies like TWA earned them the reputation of being ruthless men who didn’t care about anything but the bottom-line. The practice of greenmail (essentially a form of financial blackmail) didn’t do much to improve their reputations either. Insidermonkey experts made a list of 10 most successful LBOs and private equity buyouts in history.

We have picked one item from their list for now. Continental Airlines. In sharp contrast to Carl Icahn’s takeover of TWA, which ended in the company being stripped of its most valuable assets and ultimately led to its bankruptcy (while significantly enriching Mr. Icahn), newly formed Texas Pacific Group took the other way in their 1993 buyout of Continental Airlines. By taking a direct, hands-on approach in the daily operations of the company, they managed to turn their initial $66 million investment into a handy $600 million profit. You can also check our list of Easy Money: The 10 Most Successful Investors in the World Today.

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