Corporate bond managers should be wary of private equity vultures

640 deals in the UK this year

Kathleen Gallagher
clock • 4 min read
As Morrisons, Asda and AA get swept up in deals, UK corporate bond managers are cautiously looking at their portfolios.
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As Morrisons, Asda and AA get swept up in deals, UK corporate bond managers are cautiously looking at their portfolios.

Corporate bond managers are keeping a keen eye on the so-called private equity vultures as they circle around UK companies, with one manager going so far as to avoid many company bonds with higher graded credits.

Private equity firms have struck 640 deals in the UK this year so far, more than any other year-to-date period on record. The number of UK buy-outs are up 61% in 2021 compared with the same period in 2019, according to Refinitiv. Private equity firms have also announced approaches to 15 UK listed companies since the start of 2021, having made no more than ten in the same period of January to October in the past 14 years. As household names such as Morrisons, Asda and AA get swept up in deals, UK corporate bond managers are cautiously looking at their portfolios. Jonathan Golan, manage...

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