Investors

LP Radar: Beware dividend recaps?

Dividend recaps are undeniably controversial. But they’re a perfectly legitimate way for managers to get much-needed capital back to their LPs – as long as they’re done right

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This year, dividend recaps have been one of the main ways in which general partners have tried to generate returns for themselves and their limited partners.

In October, Fitch Ratings proclaimed loudly that dividend recaps were back in Europe; while around the same time, Moody’s reported that there were 14 debt-financed dividend recaps worth $5.5