Notes

PE practitioner notes

Teaching pieces on deal mechanics, modeling, and valuation. Each post grounded in a real case study with primary sources cited.

June 8, 2026·10 min read·LBO · Capital Structure · Tech · M&A

DVMT Tracking Stock: Silver Lake's Creative Financing of the $67B EMC Deal

Traditional banks wouldn't finance a $67B tech LBO. Silver Lake and Dell used $20B of DVMT tracking stock instead — an unusual structure that drew shareholder lawsuits.

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June 4, 2026·9 min read·LBO · Capital Structure · Hospitality · Returns

Patience as Alpha: How Blackstone Restructured $4B of Hilton Debt in 2010 to Avoid Default

Buying Hilton at peak multiples in October 2007 looked like a disaster by 2009. Inside the 2010 debt restructuring that saved the deal and unlocked the $14B exit.

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June 1, 2026·8 min read·LBO · Returns · PE Fundamentals

Multiple Expansion vs Operating Improvement: Decomposing Hilton's $14B Return

PE returns decompose into leverage, multiple expansion, and operating improvement. Inside how Hilton's $26B → $32B journey split across the three drivers and what LP attribution analysts actually look for.

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May 28, 2026·8 min read·Returns · Capital Structure · Retail · PE Fundamentals

Dividend Recaps Explained: How Toys R Us Sponsors Took $470M While LPs Lost Everything

KKR and Bain extracted ~$470M in management fees and dividend recaps over 12 years while LP equity went to zero. Inside the mechanic that decouples sponsor and LP outcomes.

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May 25, 2026·9 min read·LBO · Tech · Capital Structure · M&A

Dell-EMC: How Silver Lake Engineered the $67B Largest Tech LBO Ever

Silver Lake backed Michael Dell's $67B acquisition of EMC in 2016 — the largest tech LBO in history. Inside the structure, the DVMT tracking stock, and the 2.0x MOIC exit.

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May 21, 2026·8 min read·LBO · Capital Structure · Returns · Diligence

TXU / Energy Future Holdings: How the Largest LBO Ever Became the Largest Bust

In 2007 KKR, TPG and Goldman took TXU private for $45B — the biggest LBO in history. Seven years later it filed for bankruptcy with ~$40B of debt and a wiped-out $8B equity check. Inside the natural-gas bet that broke it.

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May 21, 2026·7 min read·LBO · Capital Structure · Retail · Returns

Why KKR's Toys R Us LBO Failed: A Cautionary Tale of Dividend Recaps

The 2005 Toys R Us LBO returned a 0.0x MOIC to LPs and ended in 2017 bankruptcy. Inside the $400M-a-year debt spiral that killed an American retail icon.

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May 18, 2026·8 min read·LBO · Hospitality · Returns · Capital Structure

How Blackstone Made $14B on Hilton: Inside the Largest Hotel LBO Ever

Blackstone closed the $26B Hilton acquisition at 21.7x EBITDA weeks before the 2008 collapse. Eleven years later it returned $14B in proceeds at a 2.5x MOIC.

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May 17, 2026·7 min read·LBO · Modeling · Sources & Uses

Sources & Uses for an LBO: A Real Example, and Three Errors That Get You Sent Back to Your Desk

Walk through a $500M sources & uses table with real tranches, plus three errors every junior PE associate makes — and the Toys R Us case study showing why one of them killed the deal.

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May 15, 2026·4 min read·LBO · Returns · PE Fundamentals

MOIC vs IRR: Which Return Metric Actually Matters in a PE Deal?

Both numbers show up on every LBO slide. Here's what each actually tells you, and when to trust which — with the Hilton/Blackstone deal as the case study.

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May 13, 2026·7 min read·PE Recruiting · Careers · Headhunters

The Gatekeepers: 12 PE & Hedge Fund Headhunting Firms Every Candidate Should Know

A handful of specialized recruiters control most of the on-cycle hiring at PE funds and hedge funds. Here are the 12 firms you should know, what each specializes in, and how to actually engage them.

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