In this Issue: 

Gold at the Hilton.

In the fall of 2007, Blackstone Group bought Hilton in a $26 billion leveraged buyout. Jonathan Gray, Blackstone’s global head of real estate, invested $5.6 billion of Blackston’s money. Then the financial crisis hit and the economy tanked — it appeared that Blackstone and its partners had paid too much, used too much debt, and couldn’t have picked a worse moment to close the deal. But Gray’s timing and maneuvering proved impeccable this past July when Hilton’s stock closed at $24.80 per share, making Blackstone’s profit $12 billion — the single most profitable private equity deal ever. Take a look for yourself.

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