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How does private equity works?


Blackstones just bought Hillton for $20 billion, but blackstone is just a $6 billion company, how can they pay 20 billion, does it require a lot of finance with the bank? Also, what is the reason that a public trade company want to go private?

It's a leveraged buyout. Basically they are using the assets of the sale to ask for more money from banks, investors, and other institutions.

There are many rules and regulations for being a publically traded company as opposed a private company who can basically do anything they want. It's all about what they want to do with the company

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