| | PE continues to feel impact of coronavirus crisis
Though this week has been a relatively busy one, the global private equity space has seen a slow-down in fundraising and deal-making, due to the novel coronavirus pandemic.
In our latest weekly newsletter, we look at why private equity, which as an asset class is less volatile than others, is still feeling the impact of the current global crisis.
We also examine the fact that around 60 per cent of private equity fundraising closes have been delayed until later in the first half of the year or beyond, and what the timeline could be in terms of fundraising activity picking up again.
One company that’s weathering the storm at the moment is British ceramics brand Emma Bridgewater, which on Monday, secured GBP8 million in funding from BGF and a GBP 2.5 million debt facility from HSBC.
In other deal news this week, Hoxton Ventures invested in online learning platform Preply, which focuses on remote learning. The comany's fast growth since February this year, shows that while the asset class is feeling the effects of Covid-19, there are sectors that are benefitting.
Nordic private equity firm Segulah, meanwhile, acquired a majority shareholding in Swedish rail company NVBS Rail, while after first entering into an agreement in August 2019, Aurelius Equity Opportunities has now completed its acquisition of Armstrong Ceiling Solutions.
And finally this week, PEW’s James Williams conducted a Q&A session with Alex Lesch, partner and member of the investment strategy and risk management team at Adams Street Partners, examining the importance of operational due diligence, and why ongoing collaboration with GPs improves investment confidence.
Karin Wasteson
Editor, Private Equity Wire
| | | | It could take until 2022 before fundraising activity picks up again | | Fri | 3 Apr 2020, 12:14 | | The unfolding Covid-19 induced financial crisis is creating problems for private equity funds currently out on the road fundraising. Moreover, first time fundraisers out there in the market will struggle to reach fund closes this year, and even fewer debut managers are expected to launch new vehicles in the current climate. |
| | | | With many PE deals on hold, when will confidence improve? | | Fri | 3 Apr 2020, 12:14 | | As an asset class with a buy-to-sell cycle that typically lasts around five to seven years, you would be forgiven for thinking that private equity could weather the storm of Covid-19 more smoothly than other, more inherently volatile asset classes, can. That’s partly true. |
| | | | Sponsored Article | | WEBINAR: Private equity fundraising in the new decade | | Fri | 3 Apr 2020, 12:14 | | LPs are increasingly risk-averse. How can PE managers create a compelling signal in an increasingly competitive fundraising landscape? On 7 April, you’re invited to join Private Equity Wire, Intralinks, and a selection of other industry experts for an exploration of the asset-raising channels available to PE managers in this new era… |
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