Let's not forget our US$45B TXU nightmare

1 response

  1. Harvey says:

    I suspect multiples in the very large buy-outs are higher than the 8x you are illustrating. For example, I would suspect that CPPIB carries Sunguard near cost, Freescale probably more close to your guess. I also suspect they have much larger investment in these situations than you are estimating, given the number of direct investments disclosed and the total amount of direct investments. The lack of disclosure is probably to simply buy time for long term investing outcomes to actually play out over full cycle. But, to be sure, making investments is not the same as making returns on investments. Doesn’t seem that CPPIB makes such a distinction.

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