BC Partners Borrowed Against Fund for VetPartners Cash Injection

BC Partners turned to an increasingly popular piece of financial engineering to inject fresh equity into VetPartners Ltd: debt raised at one of its flagship funds.

The private equity firm borrowed about €300 million in its BC European Capital X fund, most of which was used to finance a cash infusion to help the veterinary group reduce its debt load, according to people with knowledge of the matter who asked not to be identified discussing a private transaction.

The move essentially transfers some debt from VetPartners’ balance sheet to the private equity fund that owns the company. It is ...