PE sponsors tap European junk bond market for dividend recaps

PE sponsors tap European junk bond market for dividend recaps

Private equity firms are increasingly returning to the European high-yield debt markets to extract dividends from portfolio companies, as elevated volatility and a subdued exit environment continue to delay traditional monetisation routes such as M&A and IPOs, according to a report by Bloomberg. Sponsor-backed borrowers including Brookfield Asset Management-linked REIT Befimmo, Lutech, and Cooper Consumer Health—the latter backed by a consortium…