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.

View additional insights in the original article.



Meet Professionals with Complementary Expertise in Capital Advisory

Related Perspectives in Capital Advisory

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

Lincoln International adds Carlos Candil as Managing Director

Lincoln International, a global investment banking advisory firm, is pleased to announce that Carlos Candil has joined the London office as a Managing Director in the firm’s Energy, Power &… Read More

“Leader to Leader” Series

The Leader to Leader video series turns up the dial on rich conversations with prominent leaders – from business owners and entrepreneurs to investors and CEOs – highlighting their stories… Read More

Dividend Recapitalizations: Hit the Market Before M&A Activity Rebounds

Private debt funds have increased their dry power to $506.2 billion and acquisition-related private debt volume has reached all-time lows. As a result, private debt investors have become more aggressive… Read More