Our latest report 'Covid-19 and the world of private equity' analyzes, from a survey of more than 150 venture capital funds in Europe, America and Asia, the perspectives of the private equity sector in the current context.
Majority of global investors continue to seek deals despite Covid-19 but predict falling revenues and no return to normal until 2021. In this sense, and for the future, the survey results confirm that there is increased competition for high-quality assets and a possible slowdown in terms of transaction flow. Those funds that can differentiate and move quickly will be at a clear advantage over the rest of their competitors.
74% of respondents told us that they are 'open for business' and looking at new opportunities in the immediate term.
Larger funds are generally more optimistic
Despite the financial impact of the pandemic, 44% say they are yet to see an increase in distressed opportunities,
82% of respondents believe there will be a U-shaped recovery.
The survey findings confirm investors are open for business, but these are still testing times. While it appears exits will be delayed, many existing funds are highly liquid, and they continue to look for new platform deals and ‘bolt-ons’ for their portfolio companies. As the world of business cautiously gets back to work, it is reassuring to observe a clear sense of optimism and resilience from private equity funds, says Agustín Fernández-Miret, Corporate Finance Partner.
To read the full report, simply download the report using the form below.
Our Financial Advisory team provides advice in our customers’ investment and/or divestment operations, to achieve financing, analyze business plans, valuations, assistance in economic litigations, analysis of feasibility plans and financial restructuring operations, etc.
The situation caused by the COVID-19 has a substantial impact in all the economic activity, with temporary (cash tensions) and structural effects (business restructuring) and an impact at short (suppliers/customers), medium (employees) and long term (shareholders/ creditors).
In the webinar that La Chambre organized last Tuesday, April 28, our Financial Advisory Services team, in addition to explaining what aspects companies should consider, from a financial point of view, both in the short and medium term, also analyzed the effect that the current crisis may have in the market for mergers and acquisitions (medium-term forecasts, impact on company valuations, etc.).