Buyout firms are looking to alternative forms of financing to refinance their portfolio companies as access to credit markets eases and a wall of debt approaching maturity looms.

Firms are considering several forms of liquidity to finance their portfolio companies as they increasingly face competition to refinance their debt in the mainstream leveraged finance market. Banks have been slow to loosen up lending requirements and several, including Royal Bank of Scotland and Lloyds Banking Group, have retreated from the leveraged finance market.