In The Press September 02, 2022

Sponsors Scramble Over RCFs as Banks Step Back (International Financing Review)

While private equity sponsors are increasingly choosing private debt funds over banks to back their acquisitions, there is a component in buyout transactions where banks are irreplaceable – revolving credit facilities. Banks' decision to step back in the space is disrupting the deal process. “It is causing a big headache for private equity sponsors. We are increasingly seeing situations in which deals announced without a RCF in place, or where sponsors delay the buyout process because they can’t secure a RCF quickly,” said Simon Fulbrook, a Private Equity partner in London, while speaking with International Financing Review.