The IPO drought is driving private equity-owned companies to the debt market to pay investors

alborsaanews.com

Factuality

Ownership

Private equity firms are increasingly borrowing from their portfolio companies to pay exceptional dividends to investors. This comes amid continued weakness in initial public offerings (IPOs) and acquisitions, prompting funds to seek alternatives to secure liquidity without exiting their investments. Moody's estimates that companies backed by private equity funds in the region […]. The article "Private Equity Firms Turn to Debt to Finance Divide…