In the News The Wall Street Journal: Deal Journal

Royal Bank of Scotland Wins a Buyout-Lending Crown

"U.K. state-backed bank Royal Bank of Scotland lent more than double its nearest competitor to financial sponsors in Europe, the Middle East and Africa last year, fueling concern that the private-equity market could become stifled if banks that have been bailed out are forced to pare back buyout lending.

At bailed out banks I fully expect there will be some soft or hard policy in relation to financing sponsor buyouts," said Neel Sachdev, a partner at law firm Kirkland & Ellis. "This is likely to be compounded by recent business failures which are being attributed to those businesses incurring too much debt as part of leveraged buy-outs and recaps."

This article appeared in its entirety in the January 7, 2009 edition of The Wall Street Journal