Citywire | PE Firm Permira Seeks to Up Evelyn’s Debt to Pay Shareholder Dividends
Feb 2024
Originally posted by Citywire on February 15, 2024.
The majority shareholder of Permira, Evelyn, wants to increase its debt through a dividend recapitalization to pay itself and other shareholders.
Private equity has used dividend recaps for years but ended that practice when interest rates rapidly rose. That cautious mindset has changed as rates and the market are seemingly stabilizing.
Aude Doyen, Managing Director in our Capital Advisory Group, commented, “In discussions with lenders, it’s clear they are now more open to considering dividend recaps, particularly for companies that have managed to grow amidst the challenging macroeconomic environment.”
Dividend recaps are a useful tool in returning some funds to investors and can improve metrics like distributed to paid-in capital.
Summary
-
Lincoln International’s Aude Doyen offers a perspective on dividend recapitalizations to Citywire.
- Sign up to receive Lincoln's perspectives
Contributor
I build trust with clients by putting their interests first at all times.
Aude Doyen
Managing Director & European Co-head of Capital Advisory
LondonMeet Professionals with Complementary Expertise in Capital Advisory
By linking my experience in debt advisory and mergers and acquisitions, I look forward to delivering flexible and innovative financing solutions to make an impact that matters with long-term target clients, as Lincoln does best.
Daniele Candiani
Managing Director & European Co-head of Capital Advisory
Milan
I build trust with clients by putting their interests first at all times.
Aude Doyen
Managing Director & European Co-head of Capital Advisory
London
I take an active role in every stage of the transaction process in order to achieve the goals of my clients.
Iván Marina
Managing Director | CEO Spain
Madrid
Related Perspectives in Capital Advisory
Real Deals | Roundtable: Mid-Market Debt Open for Business
Originally posted by Real Deals on July 17, 2024. Dividend recaps are being considered as an interim solution to deliver capital to limited partners due to fewer exits and improving… Read More
BeBeez | Megadeal, Is the Train Starting Again?
Originally posted by BeBeez on July 1, 2024. Increased stabilization of rates and decreased debt market volatility have led to a series of high-yield bonds being issued in Europe. Refinancing… Read More
Silent Defaults in Private Credit: The Unspoken Struggle
A meaningful percentage of borrowers are facing challenges as base rates remain stubbornly high for longer. While companies are demonstrating consistent performance, many are experiencing liquidity constraints. Despite private credit… Read More
LevFin Insights | U.S. Private Credit: Devil in the Default Details—Amendments, LMEs Mask Private Credit Default Rate, Lincoln Data Show
Originally posted by LevFin Insights on June 26, 2024. Inflated interest rates and increased financial pressures on private companies have triggered a rise in creative approaches to avoid defaults. According… Read More
