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They also charged exorbitant management fees. It seems at least possible that they didn't actually lose money on the deal. Being a private company, it might be
by metabagel 9y ago
They also charged exorbitant management fees. It seems at least possible that they didn't actually lose money on the deal. Being a private company, it might be hard to find out how much cash they extracted from Toys 'R' Us.
- justherefortart 9y agoExactly, where'd that 5 billion in loans go? Poof!
- metabagel 9y agoThe bulk of that was not KKR or Bain's money. They were loans that Toys 'R' Us took on as part of the LBO.
- JumpCrisscross 9y ago> where'd that 5 billion in loans go? As in where did the proceeds go? To the previous investors. From whom KKR et al bought Toys 'R' Us. There's a "B" in LBO.
- JumpCrisscross 9y ago> Being a private company, it might be hard to find out how much cash they extracted from Toys 'R' Us The firms got $470 million in fees and interest against their $1.3 billion investment [1]. Bain et al lost money. These numbers were disclosed in SEC and bankruptcy filings. [1] https://www.bloomberg.com/news/articles/2017-09-19/bain-kkr-vornado-suffer-wipeout-in-toys-r-us-bankruptcy https://www.bloomberg.com/news/articles/2017-09-19/bain-kkr-...