Largest-Ever LBO Has Green Tint

Feb 26 2007 | 12:41pm ET

It’s the largest leveraged buy-out in history, but it’s also reportedly a boon to the environment. A private equity consortium led by Kohlberg Kravis Roberts and Texas Pacific Group is paying $31.8 billion for TXU Corp., a major Texas power company, but if TXU is to be believed, this is not the second coming of Danny DeVito in Other People’s Money.

The newly-private TXU is to be split into three independently-operated business, one each for generation, transmission and distribution, and retail. But the company will also slash energy prices by a tenth and reduce the number of new coal-fueled plants planned to three from 11, a move that got the deal endorsed by the Environmental Defense Fund and Natural Resources Defense Council.

What’s more, World Wildlife Fund Chairman Emeritus William Reilly, also a former administrator of the Environmental Protection Agency, is to join TXU’s board.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.