The Deep Risks of 'Asset-Light' Debt

With sub-substandard collateral levels, some debt structures of the private equity buyout boom could come back to haunt investors

In the spring of 2007, private equity giant TPG decided it was time to pay itself a dividend from its $1.4 billion acquisition of Iasis Healthcare. TPG had bought Iasis, a hospital chain that serves midsize markets, three years before from its founder, private equity firm JLL Partners.

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