A source close to Bridgepoint said that the private equity house had "taken advantage" of turmoil in the banking markets which saw Fat Face's debt trading at 60% to 65% of its original value earlier this year.
He said: "That was about the bank's attitude to the high street. Bridgepoint thought it was trading at an irrational level and decided to take advantage of that."
The source added: "The debt remains £190 million against the transaction value of £360m so the business is not highly leveraged. Bridgepoint believes the prospects for the business are really good and, if anything, this is a vote of confidence in the business which is trading strongly."
The deal will not reduce the level of debt Fat Face has, nor will it reduce the retailer's level of debt repayments.