Private Equity (PE) houses are increasingly turning to asset-backed finance as a way of reducing the burden of expensive senior debt and improving liquidity in the wake of Leveraged Buyouts (LBO), according to research from Demica.
Over 60% of top PE organisations stated that securitisation is becoming a more important source of replacement capital to ease debt repayment schedules and respondents estimated that a significant proportion (12%) of deals already employ trade receivables securitisation.
Given the current surge in LBO activity, the cost of debt burden is a growing issue for LBO firms.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
