Ultra-Rich Families Fuel $20 Billion Private Equity Buyout Wave

Michael Dell transformed his technology empire after striking a deal with Silver Lake to take his namesake business private in 2013 through a $25 billion leveraged buyout, allowing him to reposition the Texas-based company outside the glare of public markets. It relisted five years later in stronger financial shape, with Dell’s stake in the company he founded in his college bedroom now making up most of his $107.2 billion fortune, according to Bloomberg’s wealth index. Other members of the world’s wealthiest families are following suit. Reinold Geiger, the billionaire Austrian owner of L’Occitane International SA, is trying to buy out minority shareholders in the skin-care company with financing from Blackstone and Goldman Sachs. The billionaire dynasty behind US clothing retailer Nordstrom Inc. has been considering a similar move. And Rothschild & Co.’s founding family bought out other investors in the storied bank last year with capital from several other wealthy clans, including the owners of luxury fashion house Chanel and Dassault Systemes SE. “It’s some of the best capital for our banking colleagues,” Goldman’s Allaway said, referring to funds from the world’s ultra-rich. It will “become more of a permanent capital base for these type of transactions.” —With assistance from Dinesh Nair.