(Bloomberg) -- Blackstone Inc. provided a $550 million private credit deal for Graham Partners Inc.’s Gatekeeper Systems, which makes technology for shopping carts designed to detect theft, according to a person familiar with the matter.
The refinancing included a dividend and a portability feature, which will allow Graham Partners to return capital to investors and helps to provide increased flexibility to sell the business in the future, respectively. The deal will also boost Gatekeeper’s capacity for new mergers or acquisitions. Blackstone was the sole lender on the financing.
Portability features have been added to new private credit deals in recent months, as sponsors gear up for more transactions next year. The feature eases the process of exiting investments, allowing the loan to remain unchanged when a company gets new ownership. With the provisions, direct lenders can stay on loans they like and have already vetted.
It’s difficult for broadly syndicated peers to offer portability, giving direct lenders an edge as the two groups continue to compete for financings.
Dividends have also served as a popular way for private equity sponsors to return capital to their investors without actually going through a sale. The practice picked up earlier this year, as pressure on sponsors to monetize investments mounted.
Representatives for Graham Partners and Gatekeeper Systems did not respond to requests for comment.
Private equity firm Graham Partners acquired Foothill Ranch, California-based Gatekeeper Systems in 2019. The firm also provides data solutions to retailers, according to its website.
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