Deals
Bain and Lee Break Even on Investment in Bankrupt IHeart
- PE firms paid $24 billion for company at peak of buyout wave
- Second bankruptcy for Bain deal, after Toys ‘‘R’’ Us collapse
This article is for subscribers only.
IHeartMedia Inc. has gone bust, but that doesn’t mean the two private equity firms that bought the broadcaster during the past decade’s mega-buyout spree got wiped out.
They’ll almost break even, because of iHeart debt they bought at deep discounts and millions of dollars in management fees, according to people familiar with the matter. And the two firms, Bain Capital and Thomas H. Lee Partners, might gain even more from parts of the company that they’ll get to keep after it filed for Chapter 11 protection on Wednesday.