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Fortitude Investment Partners targets 1.5x-3.0x net debt-to-EBITDA leverage for new deals

PUBT·09/15/2026 05:11:57
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Fortitude Investment Partners targets 1.5x-3.0x net debt-to-EBITDA leverage for new deals
  • Fortitude set an entry leverage target of 1.5x-3x net debt/EBITDA for Australian PE-backed businesses with $3 million-$20 million EBITDA.
  • The approach prioritizes balance-sheet headroom to fund transformation and acquisitions without lender-driven constraints.
  • Quarterly leverage reviews, preferably monthly, to adjust capital structure as market conditions shift and earnings scale.
  • Leverage above 3.5x to be used only with highly predictable earnings and downside-tested covenant flexibility.
  • Debt capacity below 1x net debt/EBITDA to be reassessed to capture tax shields while avoiding management distraction from lender oversight.


Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Fortitude Investment Partners Pty Ltd published the original content used to generate this news brief on September 15, 2026, and is solely responsible for the information contained therein.