Which exit strategy provides the sponsor with the ability to retain 100% of its existing ownership position in the target?

Question

Quizplus · Accepted Answer

Dividend recapitalization involves the target borrowing funds to distribute a large dividend to shareholders, usually funded by issuing debt. This allows the sponsor to take out cash while still retaining full ownership of the target. The other options involve selling at least a portion of the ownership position.

Which Exit Strategy Provides the Sponsor with the Ability to Retain