Private equity turns to US$3 trillion in unlocked value


NEW YORK: Private equity firms on the hunt for capital are increasingly turning to specialty lenders for financing and providing a valuable asset as collateral: stakes in their funds.

The buyout industry has about US$3 trillion of unrealised value on its books, according to Preqin. And it’s tapping that to land loans for bolt-on deals, to refinance debt or bail out struggling companies in their portfolios.

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