Largest Private Equity Deals

The ten largest private equity deals of all time

1.      RJR Nabisco (1989: $31B) (Inflation Adjusted: $55.5B)

a.      Kohlberg, Kravis, Roberts & Co. (KKR) are credited with the most iconic private LBO of all time. The massive tobacco and food giant acquisition is cited as the cause of the LBO boom over the last 30 years

2.      TXU Energy (2007: $44.3B) (Inflation Adjusted: $47.2B)

a.      KKR, TPG and Goldman Sachs believed rising electricity demand would push up prices. In reality, increased fracking led to energy prices tumbling and the company eventually filed for bankruptcy

3.      Equity Office Properties (2007: $39B) (Inflation Adjusted: $41.4B)

a.      2007 was a risky year to be acquiring a company that controls the largest portfolio of commercial properties in the US. The deal was a massive success, with Blackstone estimating it will have 300% ROI

4.      Hospital Corporation of America (2006: $32.7B) (Inflation Adjusted: $35.8B)

a.      At the time, Bain Capital led the largest LBO in history (not adjusted for inflation). The company was only held privately for 4 years, before it became the largest PE backed IPO in U.S. History

5.      First Data (2007: $29B) (Inflation Adjusted: $30.9B)

a.      KKR bought out the credit card giant in 2007 and it was the largest tech deal in PE history. The firm survived the financial crisis and is seen as one of the successes from the boom of LBOs

6.      Harrah’s Entertainment (2006: $27.4B) (Inflation Adjusted: $30B)

a.      The world’s largest casino company was acquired in 2006, just before the financial crisis. The crisis went on to define the investment and in 2015 the company filed for bankruptcy

7.      Alltel (2007: $27B) (Inflation Adjusted: $28.8B)

a.      The communications operator was acquired in 2007. On the verge of the financial crisis, acquirers Goldman Sachs were still able to turn a profit after selling the company to Verizon one year later for almost $3B profit

8.      ClearChannel (2006: $25.7B) (Inflation Adjusted: $28.1B)

a.      The largest radio station owner in the US was acquired by Bain Capital. Satellite Radio didn’t take off as they hoped at the time of the investment. In 2014, the company rebranded as iHeartMedia for the digital space

9.      Hilton Worldwide (2007: $26B) (Inflation Adjusted: $27.7B)

a.      Blackstone acquired the hotel chain at the height of the real estate bubble, which originally cost Blackstone greatly. However, in 2013 they took the company public and investors who weathered the storm made $12B

10.   Alliance Boots (2007: $24.8B) (Inflation Adjusted: $26.4B)

a.      The English healthcare chain was the largest LBO in the history of European business at the time. The deal went on to become a massive success and then was eventually sold off to Walgreens in 2012