Club deals: Clubbing

When Kohlberg Kravis Roberts bought RJR Nabisco for $31bn in 1989, the private equity firm was adamant that it be the only barbarian allowed into the gates. Back then, sharing the risk of the deal was not seen as desirable as it meant sharing rewards and operational control. Now, in the biggest leveraged buyout since then, KKR is ganging along with six other firms to spend $11.3bn for SunGard Data Systems. What accounts for the big about-face in the leveraged buyout business? For one, lessons ...