Remove Dividends Remove Private Equity Firm Remove Risk Premium
article thumbnail

How Prior Relationships Between Private Equity Sponsors and Law Firms Affect LBO Loans

Reynolds Holding

Moreover, we show that close relationships between PE sponsors and law firms result in weaker creditor protections, as evidenced by fewer covenants and a reduced likelihood of dividend restrictions being imposed. However, concerns of PE sponsors or law firms about damage to their reputations can help mitigate these effects.

Equity 45