Reported about 11 hours ago
Private equity firms are turning to dividend recapitalizations, borrowing against portfolio companies to provide returns to investors instead of relying on the IPO market. With strong credit market conditions, these firms can leverage debt to pay out dividends, as seen in recent transactions like Clarios International Inc.'s $4.5 billion dividend. While the traditional avenues of public listings or sales may remain volatile, the trend of dividend recaps is expected to grow as private equity seeks to return capital to its investors amidst continued market pressures.
Source: YAHOO