Scott Sperling on CNBC: “We Need to Be Careful to Avoid the Mistakes of ’07”

Scott Sperling, Co-President of THL Partners, appeared on The Faber Report this morning to discuss the return of deal financing and, in turn, LBOs. He commented that even though high yield is killing it and CLOs are starting to inch back, buyout pros need to exercise caution when executing LBOs.

“The thing we need to be careful about is not to make the mistakes that we an an industry made in ’07, which is, we used better financing in order to pay more for companies beyond their inherent fundamental values,” he said.

THL has done one of the largest deals of the year with its February acquisition of CKE Restaurants, for $928 million.