Wall Street Journal PRO: Lincolnshire Seizes on Favorable Market for Dividend Recaps

Jun 23, 2021

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The firm secured $148 million to refinance portfolio company Schumacher Electric’s debt and took out cash to pay investors

By Luis Garcia
June 23, 2021

Many private-equity firms are taking advantage of low-cost credit to extract payouts from portfolio companies, with one firm even taking the rare step of publicizing such a transaction.

Lincolnshire Management recently announced a so-called dividend recapitalization of Schumacher Electric Corp., a Fort Worth, Texas-based supplier of automotive battery chargers and other equipment that it acquired last year. The $148 million deal refinanced the company’s debt while enabling the firm to take out all the capital it had invested…

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