EMEA Private Equity Firms Have $46 Billion in Potential Debt Headroom

Private equity-owned companies in Europe, the Middle East and Africa have $46 billion in potential borrowing capacity for investor payouts as company sales and IPOs remain subdued. The estimate reflects additional debt that companies could take on before leverage reaches levels typically associated with rating downgrades. It describes potential borrowing capacity, not a forecast that firms will borrow the full amount or distribute it to investors. EMEA firms are likely to keep using dividend recapitalizations while exits remain limited. In the United States, dividend recap borrowing through broadly syndicated loans totaled $28.69 billion through Sept.

Source: TokenPost