Cautious optimism for private equity in a post-COVID world
No one could have predicted the first half of 2020 and it is a brave person who tries to predict the second half. The challenges these circumstances present on dealmakers is profound.
As COVID-19 moved across the world, PE managers pivoted away from doing deals to focus their attention on existing portfolio companies and many deals in Q1 were abandoned, stalled or petered out.
Of course, PE dealmakers around during the global financial crisis will recall that investments made by their funds during that time produced some of the best investment returns, and 'fund vintages' of that time are still spoken of as extraordinary.
PE managers are scouring the market for complex opportunities to drive returns. Complex carve outs of unloved businesses will continue to pique the interest of dealmakers. Some assets will be value buys and others will prove defensive in a time of risk.
Despite the ongoing uncertainty, we believe PE managers are well positioned to adapt and respond to the disruption and opportunities that present themselves during this pandemic. Deals have been inked during COVID-19 and there will be more to come.
Covered in the PE Horizons mid-year update
- Navigating COVID-19 - how the sector has adjusted and adapted within this highly uncertain economic market.
- Risks and opportunities for the next 12 months - shifting consumer demand and digital transformation.
- Global perspective for 2020 - triaging exposed sectors and pivoting toward healthcare, technology and infrastructure
- Key deals this year and Regulatory watchlist - details of our major private equity deals across 2020, and upcoming legislative changes to be aware of.
PE Horizons, our sector publication
PE Horizons brings together our insights and predictions across the private equity sector, assisting global and domestic private equity sponsors navigate the rapidly changing landscape.