- Private equity funds borrow to pay investors as exits stall.
- Analysts warn rising debt threatens African businesses’ growth.
ACCRA, GHANA – Private equity funds facing stalled exits are turning to debt-funded dividends, raising concerns that investors’ demand for cash could undermine African companies’ growth.
Across Europe, the Middle East and Africa, private equity firms are struggling to sell portfolio companies at acceptable prices. Some have portfolio companies borrow to pay exceptional dividends, known as dividend recapitalisation.
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