Energy Future Holdings (EFH) - The Worst PE Deal

This podcast episode analyzes the Energy Future Holdings (EFH) acquisition, widely considered the worst private equity deal in history. KKR, TPG Capital, and Goldman Sachs leveraged $45 billion in 2007 to buy TXU Corp., betting on rising natural gas prices. However, plummeting gas prices and massive debt led to bankruptcy in 2014. The episode highlights the consequences of excessive leverage, poor risk management, and a lack of adaptability to changing market conditions, providing valuable lessons in private equity investment. The failure serves as a cautionary tale about the importance of prudent financial strategies and long-term planning.