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:
- 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.”