Monday, November 13, 2017

Private Equity Can Still Get Rich From a Struggling Supermarket

Shed no tears for Lone Star Funds, the private-equity firm that invested about $150 million in a buyout of the Bi-Lo grocery chain in 2005.

By some accounts, Bi-Lo is close to default, putting in jeopardy about $1 billion of debt and 50,000 jobs at Winn-Dixie, Harveys, Fresco y Mas and its namesake stores. But Lone Star has already come out ahead, even after committing more capital. The firm has paid itself at least $800 million since 2012, regulatory filings show, and collected still more in management fees.. . . more

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