Struggling Corporate Borrowers Face Challenges Amid Delayed Fed Rate Cuts and South Africa Rate Cuts on Hold on Nostr: Private Equity Continues to Rely on Debt for Investor Payouts Despite Risks ...
Private Equity Continues to Rely on Debt for Investor Payouts Despite Risks
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#fdefe5b4 ver:0.14
Private equity firms are relying on dividend recaps to meet investor demands for payouts, despite the risks. This approach involves taking on more debt, increasing leverage for companies and making them vulnerable to economic downturns. Moody's warns that leveraged loans are pressuring borrowers already below investment grade. However, high demand for credit and a lack of exit strategies are driving firms to pursue dividend recaps. Debt investors are now funding these payouts. The surge in recaps reflects the struggle to generate returns, as exits through mergers or IPOs are limited. No rebound expected in H2 [PrivateEquity #DebtRisk #InvestorPayouts]....
#newstr #PrivateEquity #DividendRecaps #LeveragedLoans #InvestorPayouts #MergersAndAcquisitions #InitialPublicOfferings
https://here.news/story/fdefe5b4?ver=0.14
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#fdefe5b4 ver:0.14
Private equity firms are relying on dividend recaps to meet investor demands for payouts, despite the risks. This approach involves taking on more debt, increasing leverage for companies and making them vulnerable to economic downturns. Moody's warns that leveraged loans are pressuring borrowers already below investment grade. However, high demand for credit and a lack of exit strategies are driving firms to pursue dividend recaps. Debt investors are now funding these payouts. The surge in recaps reflects the struggle to generate returns, as exits through mergers or IPOs are limited. No rebound expected in H2 [PrivateEquity #DebtRisk #InvestorPayouts]....
#newstr #PrivateEquity #DividendRecaps #LeveragedLoans #InvestorPayouts #MergersAndAcquisitions #InitialPublicOfferings
https://here.news/story/fdefe5b4?ver=0.14