PwC sold its mobility unit for $2.2B — the buyout debt needed restructuring in two years

In October 2021, private equity firm Clayton, Dubilier & Rice (CD&R) agreed to buy PwC's global mobility tax and immigration services business for about $2.2 billion, PwC's largest divestiture since selling its consulting arm to IBM in 2002. The deal closed in May 2022, spinning the unit out as an independent company under the name Vialto Partners, with CD&R providing investment and operational backing.

As with most leveraged buyouts, the purchase was financed with substantial new debt loaded onto the standalone company rather than paid outright by the sponsor. Vialto had to build its own finance, IT and operating functions after separating from PwC's infrastructure, while also servicing that debt. By September 2024, Reuters and the Financial Times reported Vialto was preparing to restructure roughly $1.5 billion of debt after cost overruns tied to the separation from PwC.

Fitch downgraded Vialto's long-term ratings to CCC- in November 2024 as CD&R and lenders negotiated a recapitalization, then to C in December 2024 as the distressed exchange proceeded. The transaction completed on February 25, 2025: CD&R and lender HPS Investment Partners injected $225 million of new equity capital, and existing debt was cut by approximately $550 million. CD&R stayed on as majority shareholder; HPS converted from a pure lender into a minority equity owner.