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Private Equity Firms Fight for Lifeline Deals in Buffett-Goldman Redux

  • PE firms clamoring to invest in public companies hurt by virus
  • Cheesecake Factory had 20 interested bidders before Roark deal
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Private Equity Firms Looking for Buffett-Goldman Redux Amid Virus
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With buyouts at a virtual standstill, private equity firms are finding a new place to put their billions of dollars: investing in public companies that have been pummeled by the Covid-19 economic collapse.

The technique is a throwback to the 2008 financial crisis when, in one notable deal, Warren Buffett threw a $5 billion lifeline to Goldman Sachs Group Inc. This time around, it’s gotten so popular that the bidding for slices of distressed companies can resemble a heated takeover battle, with as many as 20 private equity firms clamoring for a piece of one deal.