Walgreens LBO Tempts Fee-Hungry Banks, Private Credit to Unite

Amid a dearth of new deals, fee-starved investment bankers and private credit lenders are salivating over the prospect of Walgreens Boots Alliance Inc. going private in one of the largest leveraged buyouts since the global financial crisis.

The roughly $12 billion in funding, lined up by Sycamore Partners, foreshadows a new paradigm as it brings together the traditional rivals in a bid that values the international drugstore chain at around $20 billion including debt.

Wall Street stalwarts and private credit upstarts have traditionally fought over the financing of LBOs, but the deal for Walgreens is so large it offers ...