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Coronavirus: What happens next?
As Covid-19 infection rates increase globally, so do the number of news stories on the outbreak worldwide. On Tuesday, both the UK and India went into official lockdowns as the number of people falling ill with Covid-19 continued to rise exponentially. Across the world governments are facing similar struggles, as they attempt to manage and contain the virus. However, the positive news out of China that the city of Wuhan is set to lift its enforced quarantine on 8 April 2020, and President Trump’s controversial assertion that the US has plans to return to life as normal by Easter, has more and more people asking: what happens next? Private Equity Wire’s main feature this week asks that same question. We hear from Nigel Green, chief executive and founder of deVere Group, as well as McKinsey and US-based Kian Capital, about how PE firms can get through the storm and whether the current disruption could eventually present investment opportunities in new areas. In the present meanwhile, private equity firms must deal with the threat of an impending recession and increased competition over deals; James Williams gives his analysis of McKinsey’s latest report in our second feature. In other news this week, a new survey by Aberdeen Standard Investments highlights the strength of European ESG engagement, especially in comparison to North America. Pinebridge Investments opened a new Nordic office in Stockholm, and GRO Capital invested in Danish virtual waiting room software Queue-it as part of its expansion strategy. Private Equity Wire
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Where are the post-pandemic opportunities ahead for private equity? | Fri | 27 Mar 2020, 12:25 | Covid-19 fallout continues to hit firms across the world, both in terms of supply and demand, and the predicted ensuing recession is likely to change how we live in the future. While the outbreak has unsettled lives and businesses across the world, delaying deal processes and fundraising, there are ‘new world’ sectors that will do well. |
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Megafunds have a higher perceived consistency of returns, says McKinsey | Fri | 27 Mar 2020, 12:25 | The coronavirus has decimated global markets in recent weeks. And with PE funds competing to complete deals last year at record high valuations, the big question now is how managers navigate the threats of recession over the coming period. Many will be asking themselves: ‘How far might valuation multiples fall in this current climate and do we have the right risk protection in place for our portfolios?’ |
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