Blackstone Plots $1.5 Billion Payday from Clarion Before Potential Exit

Blackstone BX is weighing a fresh way to unlock value from its UK exhibitions arm, Clarion Events. According to people familiar with the talks, the firm is seeking roughly 1.1 billion ($1.5 billion) in private credit financing that could fund a shareholder dividend while refinancing existing debt. The discussions come as Blackstone quietly reopens its strategic review of Clarion, a sale process that began over the summer and could stretch into next year, depending on market appetite and valuations.

The deal structure under considerationknown as a dividend recapitalizationwould see new leverage added to Clarion to fund a payout to its private equity owner. Sources said the proposed loan could include a portability clause, allowing the debt to remain intact even if Blackstone completes a sale, giving buyers more flexibility in execution. While no final decision has been made, the move could position Blackstone to extract returns ahead of a potential exit, a tactic increasingly common among private equity sponsors turning to the private credit market for liquidity.

Clarion's case underscores how sponsor-backed firms are leaning on direct lenders to finance distributions amid tighter bank lending. Swiss software company WebPros, owned by CVC Capital Partners, is pursuing a similar transaction, reflecting a broader trend across Europe's leveraged finance market. A spokesperson for Blackstone declined to comment, and Clarion did not immediately respond to requests for comment, leaving investors watching closely for whether the firm moves forward with the payoutor accelerates its sale instead.