Multiples on BSL-funded LBOs

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Debt capacity limitations have meant sponsors are pressured to deploy more equity capital to fund their portfolio investments. The average BSL-financed LBO transaction leverage (debt/ EBITDA) decreased by almost a full turn (0.9x) in 2025 to 5x from peak levels of 5.9x achieved in 2022. On an EV basis, multiples dropped to 11.2x in 2025 from 11.9x in 2022. However, BSL LBO transaction announcements over the fourth quarter could raise both leverage levels and equity contribution levels once they close, as ultra megadeals such as the $55 billion EA Sports acquisition by a PE consortium led by Saudi Arabia’s PIF is backed by a $20 billion debt commitment and up to a $36 billion equity commitment—reflecting a 62% to 69% equity contribution level.