PRIVATE EQUITY WHITEPAPER

Restructuring
of Private Equity investments

The economic reality for Private Equity has changed fundamentally. This whitepaper demonstrates how legal restructuring helps sponsors maintain direction, limit value erosion, and create new value in a structurally challenging market.

This whitepaper covers:

About this whitepaper

From Recognition to Control — Before Value Erodes

What was long regarded as a measure of last resort is increasingly being deployed as a strategic instrument. It is precisely in the phase before a payment default or acute insolvency arises that the greatest room exists to set a course. In this whitepaper, we share insights from the restructuring practice of Davids Advocaten – directed at Private Equity parties who do not wish to wait, but who seek to act with purpose and at the right moment.

Early Insight into Risks

Financial strain rarely materialises abruptly. It accumulates in a predictable manner through rising financing costs, diminishing covenant headroom, forecast volatility and governance pressure. This whitepaper helps Private Equity parties identify these signals at an early stage and translate them into concrete courses of action – before negotiating room disappears.

Tailored strategic restructuring

Restructuring is not a standardised process. The legal route determines who is in control, who bears risk, and where value ultimately lands. We demonstrate how parallel scenarios – including consensual refinancing, Dutch Scheme (WHOA) proceedings and alternative structures – strengthen negotiating leverage and preserve optionality.

Creating New Value from Distress Situations

Distress is not merely a risk – it is a strategic inflection point. This whitepaper illustrates how restructuring can be deployed as a lever for value creation: from debt-for-equity swaps and add-on acquisitions to the acquisitive Dutch Scheme as an entry mechanism for Private Equity.

Davids Advocaten:
A Legal Navigator for Private Equity

Restructuring touches legal, financial and strategic questions simultaneously. It is precisely that interconnectedness that calls for clarity and control. Davids Advocaten guides Private Equity parties through complex restructurings with one central objective: preserving value and creating value. We support investors in analysing financing structures, preparing parallel restructuring scenarios, and managing complex negotiations – always with close attention to timing, governance and negotiating strength.