Goldman Sachs 2007 Annual Report Download - page 25

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We see opportunity
In environmentally
responsible
transactions
TXU CORPORATION
In 2007, Goldman Sachs joined
an investor group including
Kohlberg Kravis Roberts & Co.
(KKR) and the Texas Pacific
Group (TPG) to acquire the TXU
Corporation, the largest power
generator in Texas. The transaction
represents the largest leveraged
buyout in U.S. history with a total
value of $44 billion.
Our cross-functional team of
professionals from Investment
Banking, the Financing Group,
Credit Products, Commodities
and our Center for Environmental
Markets helped execute the
transaction and related financing
in the midst of turbulent markets
and a high-profile public debate.
Goldman Sachs served as financial
advisor, led the largest corporate
high-yield financing in history and
created an innovative commodity
risk management program to
support the acquisition.
The transaction was notable for the
rigor of the environmental debate
that preceded it and ultimately
shaped the outcome. A strong and
sustained public outreach campaign
was key to building legislative and
public support for the transaction.
Thanks to the leadership of
KKR, TPG, Environmental Defense,
the National Resources Defense
Council, Goldman Sachs and
others, the parties reached
an agreement to substantially
limit future carbon emissions.
Specifically, the number of
planned coal plants has been
reduced from 11 to three. In
addition, under new ownership,
TXU doubled its energy efficiency
investment, strengthened its
environmental policies and
is making significant investments
in alternative energy.
23Goldman Sachs 2007 Annual Report