Investors in private equity funds are increasingly turning to creative debt-like deals to generate cash amid a dearth of payouts, as the sector’s dealmaking downturn stretches on.
Backers of buyout funds agreed $9bn worth of “alternative”, structured transactions last year to bring in cash from their stakes in the vehicles, up from $6bn in 2024, investment bank Jefferies told the FT.
The bank predicted the trend would continue this year, with some investors seeking to avoid selling stakes in funds at a loss and because of growing demand for creative deals, including from credit funds.
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