Divide and Conquer: Why and How to Bifurcate Your LBO's Equity Structure

In a leveraged buyout of a target company, one of the first decisions a private equity fund sponsor must make is how to structure and capitalize the newly formed acquisition entity. This article, authored by Kirkland partners Jack S. Levin and Sanford E. Perl and associate Shelly M. Hirschtritt examines three possible structures and the positive and negative implications of each.