Private Equity Bulletin: New Opportunities for Private Equity? Equity Investment in distressed LBOs

  • Aug 2009
  • Newsletter/briefing

Some of the current crop of restructurings affecting private equity-backed groups have enabled third party funds to acquire new equity investments, as a result of the existing sponsor being unable or unwilling to put up new money.

Distressed LBOs may present an opportunity for private equity funds with cash to spend, and co-investment may enable the original sponsor to retain some interest in the restructured entity. However, the presence of "loan to own" investors in restructuring negotiations may not always be welcomed by the incumbent sponsor, and may increase the complexity of any restructuring proposals.

 
 

Contacts

 

Jeff Twentyman (partner), Ian Hodgson (partner), Sarah Paterson (partner)

 
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