Private equity firms mortgage investment funds, increasing leverage amidst slow dealmaking.
Private equity firms are controversially mortgaging their investment funds, increasing leverage by taking out loans against businesses they've already loaned money to. This trend has risen amidst a slow period for dealmaking, as firms struggle to return cash to limited partners from their previous rounds. The practice was discussed at the Milken Institute's Global Conference.
May 11, 2024
3 Articles