41. Caesars Part III: Interview with Sujeet Indap, Author of Caesars Palace Coup
Dec 31, 2023
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In this episode, Sujeet Indap, Financial Times writer and author of 'Caesars Palace Coup', discusses securitization, distressed debt investing, and the future of private credit. He shares insights from interviewing industry titans and delves into the role of women in private investing. The podcast also covers the high-profile leverage buyout of Caesars Palace, the complexities of its capital structure, and the challenges of writing a book on a controversial event.
Distressed debt investing and the Caesars Palace deal highlighted the complexity of deals and governance issues in the financial industry.
The restructuring process and asset transfers in distressed debt investing raised questions about asset division and highlighted the contractual complexities involved in these restructurings.
The podcast shed light on the lack of diversity in the male-dominated private investing side of the industry and the increasing pressure for greater representation.
Deep dives
Expansion of Learning Opportunities
The podcast episode announces exciting news that listeners can now book one-on-one meetings with the hosts via a platform called Intro. Additionally, efforts are being made to provide prep courses for summer internships, full-time jobs, and career changes in the industry. A partnership with Financable offers courses aligned with the podcast's mission to make finance accessible. Listeners can also use a discount code to get 20% off these courses.
Caesars Palace Coo Series
This episode is the third part of a Caesars Palace Coo series, which explores the 2008 LBO of Caesars Palace. The first episode delves into the LBO itself, while the second episode provides insights into restructuring and distressed debt investing. In this bonus episode, one of the authors of the book 'Caesars Palace Coo', Sajit Indap, is interviewed. Sajit shares nuances of distressed debt investing, talks about the writing process of the book, and provides additional insights into the world of private equity and the deal involving Caesars.
Reflection and Gratitude for the Year
The hosts take a moment to reflect on their podcast journey throughout the year. They express gratitude for the support and listenership they have received. They also mention their excitement in continuing to provide valuable insights in the upcoming year. The episode sets the stage for a discussion with Sajit Indap, offering listeners additional insights into the financial industry and the fascinating world of distressed debt investing.
Complexity of Deals and Concerns of Limited Partners
The podcast discussed the complexity of deals and highlighted that some investors were hesitant to participate due to past negative experiences. Governance issues also arose from the involvement of multiple parties. Limited partners expressed concerns about commoditized returns and discomfort with multiple firms involved in similar deals. The podcast also mentioned the emergence of co-invest transactions, allowing limited partners to invest alongside private equity firms directly. This approach reduces complications and streamlines decision-making by having one entity running the business.
Asset Transfers, Restructurings, and Controversy
The podcast explored the restructuring process and asset transfers in the context of distressed debt. It detailed how Apollo created a new public company to acquire casinos from the original OpCo, using the liquidity to pay off creditors. However, this raised questions about the division of assets between the parent company and the OpCo, leading to controversies over the lack of representation for OpCo creditors. The negotiations, maneuvering, and contractual complexities involved in these restructurings were highlighted, with the podcast noting that this male-dominated industry faces increasing pressure for greater diversity.
Wrapping up our 3-part Caesars Palace Coup series by interviewing one of the authors, Financial Times writer Sujeet Indap. Sujeet explains securitization, subordination, and distressed debt investing through the lens of Caesars’ LBO and subsequent restructurings. We discuss the future of private credit, a segment of the industry currently getting a lot of attention. Sujeet gives us the inside scoop on what it was like interviewing the titans of private equity, hedge funds, and law (as well as combing through thousands of pages of legal documents). And we touch on the role (or lack thereof) of women on the private investing side of the industry.
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