Private equity firms across Asia, including Trustar Capital and Brookfield Asset Management, are increasingly tapping leveraged loans to fund dividend payouts, as traditional exit routes remain constrained by sluggish IPO markets and geopolitical volatility, according to a report by Bloomberg.
Firms are pursuing loans of up to $1bn to return capital to investors in the absence of buyout exits. Trustar is seeking funding tied to its portfolio company Loscam Asia Pacific, while Brookfield is arranging a similar deal for Altius Telecom Infrastructure Trust in India.
Dividend recap activity has driven $1.7bn in leveraged loans in Asia Pacific (excluding Japan) so far in 2025—an 18% year-on-year increase and a three-year high – according to Bloomberg data. This comes despite a broader slowdown, with total leveraged loan issuance in the region at a four-year low of $5.9bn.
Major firms executing or exploring similar transactions include CVC Capital Partners (A Bathing Ape), Carlyle Group (Hexaware Technologies), and EQT (Fitness Passport), with many of the deals combining dividend payouts and refinancing.
