Thoughts on Sycamore

Seems like deep value: 5.1x mean acquisition multiple (as of YE2017) and great returns (~40% irrs). They're hyper aggressive with spin-offs, divestitures and subsequent dividends (e.g. $1b in staples) and keeping debt on the core company which then sometimes runs into bankruptcy issues. They're also very adept in restructuring negotiations (e.g. Nine West). There's also some unprecedented stuff I read around them buying suppliers/middlemen and extracting profits from portco's where they had minority stakes (e.g. Aeropostale). Most recently in the news trying to back out of Victoria secret.

In any case, what do people think of them? From a counterparty, lender, advisor, portco perspective? Literally reads like the 80s PE playbook lol.

EDIT: The news can be sensationalist so want a balanced industry view

 

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