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Big banks sit out LBO rebound after being stung by earlier buyouts

Concern about loans getting stuck on their balance sheets has left some lenders wary of riskier deals
A growing numbers of loans are being directly arranged by private credit funds themselves rather than going through a bank

Bank of America, Barclays and other large banks that got stuck holding billions of dollars of leveraged loans in 2022 are sitting on the sidelines this year even as the buyout market revives.

The group has become more reluctant to lead the financing for riskier buyouts, worried that the loans could get stuck on their balance sheets, bankers and buyout executives told the Financial Times.

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