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‘Fake Ebitda’ to Worsen Next Slump, $33 Billion Debt Maven Warns

Dec. 5, 2019, 4:02 PM

Alan Waxman was just 31 when he made partner on a Goldman Sachs team that bet the firm’s own cash for wild profits. He later co-founded TPG Sixth Street Partners and helped build it into a $33 billion force in credit markets.

Now he’s raising alarms about those same markets.

In a private conference earlier this week, Waxman, 45, warned investors there’s an epidemic of fake earnings projections that will be exposed in the next economic slump and may even exacerbate it. Too many companies are addicted to making creative accounting adjustments that bump up operating profits known as Ebitda...

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