How private equity dividend recaps work

With a former private equity executive running neck and neck for the presidency, the practices of PE firms remain in the media spotlight. One maneuver in particular – the dividend recapitalization – has come under scrutiny while it grows in popularity among PE firms.

What exactly is a dividend recap? Marketplace’s Paddy Hirsch takes to his whiteboard to explain:

How dividend recaps have grown, via the WSJ:

dividend recaps

See also:

- The Matt Taibi/Dan Primack kerfuffle over dividend recaps

- Wall Street insider The Epicurean Dealmaker: “Dividend recaps are surging because they’re the only game in town.”

  • TwinCVaniLLa

    bullish on BX dividend recap