In Pitchbook, White & Case Debt Finance partner Justin Wagstaff examines how private equity firms are under increasing pressure to use more equity to finance their add-on acquisitions because of concerns that taking on more leverage will increase the cost of existing debt on their platform investments.
Given the recent rise in interest rates, Wagstaff says, “For existing deals, you have to evaluate what the cost is of the new debt and whether it will impact the cost of any of your existing debt when you're incurring new debt.”
See the full Pitchbook article here.
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