KKR & Co.

Multibillion-dollar buyout financings that once required banks to act as intermediaries between a borrower and investors can now be provided by a small group of private lenders.

The PE industry is banking on the Fed cutting rates this year, which would spur buyers to tap debt to grease purchases and return money to limited partners.

At least one bank is offering payment-in-kind options and others are talking to borrowers about so-called pre-capitalizations.

The boon for shareholders follows a year when stocks of publicly traded buyout firms surged, even as a deal drought kept them from exiting many of their largest bets.