Citywire | PE Firm Permira Seeks to Up Evelyn’s Debt to Pay Shareholder Dividends
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.
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