Wall Street Dealmakers Are Entering a New Era for Buyouts
- Thoma Bravo among firms committing to deals with 100% equity
- Sponsors use own cash as rates rise and banks rein in lending
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Long maligned as the debt-addicted corporate raiders of Wall Street, private equity firms are resorting to an unusual maneuver to get deals done as borrowing costs spiral. They’re taking the leverage out of leveraged buyouts.
Francisco Partners, Thoma Bravo and Stonepeak Partners are among those that announced new acquisitions in recent weeks without debt financing in place, effectively backstopping the entire purchase price -- in some cases worth north of $2 billion -- with cash from their own funds.