Skip to content
Subscriber Only

Private Equity Using Loans for Payouts at Fastest Pace in Years

  • Education software firm Ellucian brings seventh deal of month
  • Dividend recaps in September at $8.6 billion, most since 2017

Private equity firms are hitting the U.S. leveraged loan market at the fastest pace in years to fund shareholder payouts with about $8.6 billion of dividend recapitalization deals launched this month.

That’s the most since $9.9 billion came in all of September 2017, the last time the market saw activity of this magnitude, and puts the month on track for one of the largest for these types of deals since the last financial crisis, according to data compiled by Bloomberg. The dividend recapitalizations, which refinance debt as well as funding payouts, account for about a quarter of this month’s $31.5 billion of loan launches, the data show.