Private equity firms are increasingly turning to raising debt to fund payouts to themselves and investors, with dividend loans hitting $28.7 billion this year. The private equity industry is facing challenges in finding attractive takeover targets and cashing out old investments. To appease investors, firms are resorting to extra borrowing and funneling debt sale proceeds to stakeholders. Thoma Bravo is among the firms using debt to fund distributions to shareholders, despite concerns over high leverage. The industry is also exploring alternative methods like continuation funds and complex loans amid a slowdown in fund distributions.

Read more at Yahoo Finance: Private equity firms flood junk debt market to pay themselves