Private equity model for utilities like Thames Water: buy the company with 5x debt leverage, harvest the 8% guaranteed profit (set by regulator), achieving 40% ROE on equity before capital costs—this works fine until rates rise, then the company can't refinance and is bust
causalpending
Speaker
Alistair McLeodEvidence Quote
“you buy the company don't you and you buy it with debt and you Lees up five times 8% is 40% return on your Equity...now that works fine till interest rates rise and that's where we are now 10 water can't ref Finance itself”
Source
Alisdair Macleod: Banking Chaos - Silver Explosion Inevitable! Trainwreck Like Never Before— As Good As GoldCreated: 8/12/2026, 6:02:11 PM
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