New LBO Playbook Emerges at Goldman Leveraged Finance Conference

The halcyon days of mega deals are over — at least for now — and a new playbook for leveraged buyouts is emerging, according to the chatter at an annual industry event hosted by Goldman Sachs Group Inc.

Bigger equity checks, lower leverage and a preference for higher-quality deals will be a dominant theme through the end of the year, according to bankers, private equity sponsors and investors who gathered in Rancho Palos Verdes, California earlier this week.

That’s barring any dramatic shift in policy from Federal Reserve officials, whose interest-rate hikes have fueled tighter credit conditions and a pickup ...