EQT AB, the Stockholm-headquartered private equity firm, has secured a loan of approximately $162m to finance a shareholder distribution from Indira IVF, India’s largest fertility services provider, in which it holds a controlling interest, according to a report by Bloomberg citing sources with the matter.
The financing, structured as a dividend recapitalisation, saw participation from 16 lenders, including BNP Paribas, HSBC, DBS Group, and a cohort of Taiwanese banks, one source said, speaking on condition of anonymity. The facility is understood to carry a six-year maturity.
Dividend recapitalisations, a common tactic among private equity sponsors, involve levering portfolio companies to return capital to investors – often deployed in the absence of a traditional exit such as an IPO or trade sale.
The deal underscores a broader trend as private equity sponsors globally face increasing pressure to deliver liquidity to limited partners amid a sluggish exit environment.
Earlier this year, EQT portfolio company Fitness Passport launched a AUD500m ($321m) syndicated loan, part of which will be used to fund a dividend. Similarly, Clayton, Dubilier & Rice-backed Wolseley Group recently priced a £350m ($470m) senior secured bond to support a shareholder payout.
Indira IVF’s latest financing follows reports in late 2024 that EQT was exploring a potential IPO for the business, which could raise up to $400m. The listing could materialise as soon as this year, according to Bloomberg.
EQT acquired a majority stake in Indira IVF in 2023 from TA Associates and the company’s founding team, who retained a minority interest and remain actively involved in management. The company operates a network of over 150 fertility clinics across India, staffed by more than 330 IVF specialists.
