Happy Tax Day! Refunds from Uncle Sam are not the only way get money back this year. Shareholders take note – dividend recapitalizations are back in style. After over two years on the “no fly zone,” investment committees have started to open their checkbooks. That said, the bar is high.

  • Notwithstanding elevated new deal activity, successful private equity exits in Q1 were limited. With no guarantee of a soft landing, sponsors are hedging their bets by exploring recapitalizations as a short-term solution to return capital to LPs.
  • Lenders – many of whom were under-deployed in 2023 – are entertaining such discussions across sectors. To get to the finish line, the credit needs to be pristine and the sponsor must have an impeccable track record.
  •  Telling the right story is crucial for a successful outcome. We’re here to help.
Intrepid Market Update April 2024 002 e1753209900935

 

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