FT – Shifting relationship between lenders and buy-out groups

Private Equity invested in their portfolio firms to help them survive the financial crisis.

“At the height of the financial crisis in 2008 and the start of 2009, private equity funds were able to take advantage of the dearth of liquidity to come to the aid of their portfolio companies, providing funds – but in exchange for debt write-offs by lenders. 

Philip Davidson, European head of restructuring at KPMG says “We are now seeing an open and constructive approach to restructuring on both sides of the negotiating table. The most innovative private equity houses, having dusted themselves down, are working hard to turn distress to their advantage, devising novel ways to limit losses in portfolio companies.” writes Anousha Sakoui, Financial Times

The article includes examples.

Read the full article in the FT