dividend recapitalization


A method employed by private equity firms and venture capitalists to generate a cash return on investment from an otherwise illiquid position in a privately-held business. It involves the financing of dividend payment s through loans which won't impact the equity stake of private investors.

Use this term in a sentence

You should try and break down the dividend recapitalization so that you know where your money would be best invested.

​ Was this Helpful? YES  NO 11 people found this helpful.

The dividend recapitalization that Steve was trying to enact would allow him to get some much needed cash to expand his surfboard factory.

​ Was this Helpful? YES  NO 2 people found this helpful.

Those VCs always figure out a way to get cash out of a firm, usually by utilizing dividend recapitalization to provide cash without impacting shareholder equity.

​ Was this Helpful? YES  NO 5 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
dividend rate Dividend Record