Private equity Why wait?

Private equity investors like to see a quick return on their investments. Meanwhile, the debt markets are currently willing to refinance buyouts on a highly leveraged basis. Private equity houses are taking advantage of this to refinance their deals with more debt and pay themselves chunky dividends with the proceeds. Half of all leveraged buyouts in the second quarter were recapitalisations of existing deals according to ratings agency Fitch. Most of these were used to pay dividends. These ear...