Pandemic-proofing deals, and the truths and misconceptions surrounding the role of PE

Face masks and frequent hand-washing are part of the new routine for many people. But how can a company be safer in the new normal?

“Good contractual hygiene,” says Joe Wallin, principal at Seattle-based Carney Badley Spellman. In particular, companies should be sure to understand – and where possible, standardise – force majeure language across all their legal contracts. Susana Garcia-Robles, Venture Partner at Capria Ventures, explores the topic for PEW.

Meanwhile, despite the impact of the global pandemic, a new study by Intertrust reveals that three out of five (61 per cent) business leaders worldwide predict growth over the next twelve months and hence appear to be quite bullish in their approach to the crisis. It also points to the degree of business resilience firms have that do manage to adapt to the crisis. 

Private equity has been at the centre of an ongoing debate surrounding accountability and transparency in recent weeks. As the pandemic continues to shift the ways that GPs and LPs approach investing in and managing funds, the conversation is becoming increasingly salient and investors are demanding greater transparency, as well as regulatory compliance.

With this in mind, Michael Gull, executive director of business development at MUFG Investor Services, delved into the truths and misconceptions surrounding the role of private equity in economic survival as well as recovery in light of the pandemic, in a feature for PEW this week.

“As the Coronavirus pandemic continues to cut through our lives, the urgency of robust public assistance for businesses remains a matter of vital economic importance. And yet, since the earliest days of the crisis, certain critics have taken exception to the role of private equity in the recovery,” writes Gull.

The tech and VC sectors have continued to do well, with Japanese investors flocking to invest in early stage Israeli tech. From 2010 Japanese investment deals in almost all types of Israeli high tech companies have continued to grow, according to the newly released Japanese Activity in the Israeli Tech Ecosystem Report, published by the IVC Research Center.

The pandemic has done a lot to change the ways private equity firms and investors are using technology, whether that be the transition to working from home, or back-end technological advances in software to keep up with demand throughout the pandemic.

Such advances can be seen in supply chains and delivery systems as companies respond to changes in consumer habits driven by the so-called ‘Amazon effect’.

It turns out that the pandemic has accelerated underlying technological changes which were anticipated in supply chains with respect to software and technology adoption, according to Dave Dolan, managing director at corporate finance adviser DC Advisory.



Karin Wasteson
Editor, Private Equity Wire
 

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