European High-Yield Dividend Recaps Surge

European high-yield dividend recaps have re-emerged as a key strategy for private equity sponsors amid slowing exits (sales or IPOs). Historically, debt investors have been reluctant, as this increases leverage to benefit shareholders.

• In 2025, issuances to finance dividends have surged to 8%, from 0-2% in 2019-2023.

• In 2025, only 7% of money raised was for leveraged buyouts, from 12-18% in 2021-2023.

Read in-depth insights in our Fixed Income Credit Markets – September 2025