“Dividend Recaps a Growing PE Trend”
The Deal Pipeline, November 8, 2010
Mark Selinger discussed how private equity-backed companies are increasingly using dividend recaps as a means of liquidity, due to the uncertain IPO market. “Banks are willing to lend again, certainly at the upper end of the market, and the partners are looking for distributions. The interests between the two are aligned,” he observed. In the absence of an exit sale or IPO, Mr. Selinger concluded, dividend recaps are “the best way to get returns to investors if you’re not looking to sell the company.” Click here to view the video.