Is Caesars Entertainment Private Equity Owned?
Caesars Entertainment
Includes Harrah's Entertainment, Caesars Palace
Casino / Hospitality · Reno, NV
Apollo Global Management / TPG Capital
2008
“Apollo and TPG bought a casino empire for $31 billion, extracted hundreds of millions in fees, and left it buried under $25 billion in debt.”
What Happened
- •Apollo and TPG acquired Harrah's Entertainment in 2008 for $30.7 billion — one of the largest debt-fueled buyouts in history — and renamed it Caesars Entertainment
- •Loaded the company with $25 billion in debt to fund the deal; annual interest payments exceeded $2 billion, more than double the company's operating income
- •Apollo and TPG collected over $250 million in management and advisory fees while the company spiraled toward bankruptcy
- •The operating unit filed for bankruptcy in 2015 while the parent holding company — structured to shield the PE firms — stayed out of proceedings
The Damage Done
- ▸Hotel room quality and maintenance declined as renovation budgets were slashed to service $2 billion in annual interest payments
- ▸Total Rewards loyalty program was repeatedly devalued — customers needed more points for the same comps, rooms, and perks they'd earned for years
- ▸Multiple restaurants and buffets closed across Caesars properties as cost-cutting hit food and beverage — the famous Rio buffet among the casualties
- ▸Over 10,000 employees laid off across the casino portfolio as the company cut costs to keep up with debt payments
Sources
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Frequently Asked Questions
Is Caesars Entertainment owned by private equity?
Not anymore. Caesars Entertainment was formerly owned by Apollo Global Management / TPG Capital starting in 2008, but the firm has since exited. The effects of PE ownership often linger.
What happened to Caesars Entertainment after the acquisition?
Hotel room quality and maintenance declined as renovation budgets were slashed to service $2 billion in annual interest payments Total Rewards loyalty program was repeatedly devalued — customers needed more points for the same comps, rooms, and perks they'd earned for years
Who owns Caesars Entertainment?
Caesars Entertainment is owned by Apollo Global Management / TPG Capital, which acquired it in 2008.