In a club deal, the investor group of private equity firms pools its assets together and makes the acquisition collectively.
In June 2014, Bain Capital Partners and Goldman Sachs settled for a combined $121 million after more than six years of litigation.
[5] An unnamed Goldman executive was quoted as saying “club etiquette” had prevailed in the $17.6 billion takeover of Freescale Semiconductor.
[7] Even when controlling for size, risk and leverage ratios, club deals required more lenders than sole-sponsor buyouts.
[2] In 2006 the US Department of Justice, concerned with bid rigging, opened an investigation of private equity firms regarding their participation in consortiums in past sales.