The 1980s Garfield buyout that changed corporate finance
About this episode
The episode discusses William E Simon's impact on corporate finance and the rise of private equity through a revolutionary buyout in the 1980s.
William E Simon was a bond trader-turned US cabinet secretary under President Richard Nixon. He was also abrasive, polarising and the “father of private equity”, according to Hettie O’Brien, author of The Asset Class: How Private Equity Turned Capitalism Against Itself . She tells hosts Gillian Tett and Robin Wigglesworth how Simon orchestrated a deal that was so revolutionary, and so lucrative, that it kickstarted the leveraged buyout trend of the 1980s, which later gave way to the modern private equity industry. But how did we get from that one deal to a sector that’s now one of the largest alternative asset classes in the world? And if he was alive today, what would Simon think of the industry he helped create? Further reading: The Asset Class: How Private Equity Turned Capitalism Against Itself, by Hettie O’Brien (2026) Private capital has raised more money than it has returned Credits: Getty Images To enjoy future episodes, be sure to subscribe to The Story of Money wherever you get your podcasts, also on the show's dedicated YouTube channel here : https://www.youtube.com/@FTTheStoryOfMoney Hosts: Gillian Tett and Robin Wigglesworth Producer: Lulu Smyth…
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