London-based private equity giant CVC Capital Partners is in advanced talks to secure a $400m, five-year syndicated loan to enable a dividend payout from its portfolio company A Bathing Ape (BAPE), according to a report by Bloomberg.
The report cites unnamed sources familiar with the discussions as revealing that the proposed dividend recapitalisation would see CVC layer fresh debt on BAPE – co-owned with Hong Kong retailer IT Ltd’s founder Sham Kar Wai – in order to return capital to its investors. CVC completed its takeover and carve-out of the Japanese streetwear label in 2021 but, with traditional exit routes like IPOs or full sales remaining unappealing, the firm has turned to debt-funded distributions to meet return targets.
The move mirrors a broader trend among buyout firms seeking to deliver liquidity to limited partners without divesting portfolio holdings. Trustar Capital is reportedly lining up up to $1bn for a similar recap of pallet maker Loscam Asia Pacific, while lenders are syndicating a $450m financing for Brookfield Asset Management’s Altius Telecom Infrastructure Trust for shareholder distributions.
A CVC spokesperson declined to comment.
