Dividend Recap Spree Will Continue, Says Thoma

Private equity firms will take more dividends via the leveraged loan market in October than September, said Carl Thoma, managing partner and cofounder of Thoma Bravo.

In the first week of October $2.3 billion of new deals were announced, according to Bloomberg data. This follows $7.9 billion in dividend recapitalizations in September, the highest volume in almost two years, according to Standard & Poor’s Capital IQ Leveraged Commentary & Data.

Thoma said dividend loan volume will rise partly because of fears that Bush-era income-tax cuts on wealthy individuals won’t be extended.

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