private equity capital infusion
In many buyouts by PE firms, the description of the rationale of the deals mention that the PE firm can support both financially for new investments as well as operationally. But how exactly is capital injected by the PE firm for new investments? The sponsor equity injection + LBO debt is used to purchase shares from existing shareholders, not new investments. Is it in the form of more debt (shareholder loans, senior debt etc) or through new equity raises (the company is private after buyout) where the PE firm essentially dilutes itself?
Iusto id tempore voluptatem tenetur ut reprehenderit. Fuga et suscipit aut hic quam fuga. Nihil voluptatem velit aut ab facilis. Sit sunt dicta ex quo. Odio cum voluptatibus hic aperiam consectetur ut. Accusamus vitae quis laborum perspiciatis eum officia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...