Basic PE funding question
How do lower middle market PE funds (e.g., Revenue $10-$100mm/ EBITDA $2-$20mm) fund the debt portion of their acquisitions? Do they fund through commercial banking market or private credit? Also, I’m assuming lower middle market PE tend to use much more equity than debt, correct? Thanks.
Private credit and typically deal will be 40-50% debt unless it's very small. $5mm ebitda tends to be tougher to get PC to fund.
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