| | Private equity at a turning point
The first week of June saw the continuation of protests in the US against racial injustice and police brutality. What started in Minneapolis as a protest over the death of George Floyd while being restrained by a police officer turned into an international movement with protests organised across Europe and the rest of the world. Business leaders and tech funds alike have looked at ways to structurally counter financial inequalities and to curb racism and injustices in the workplace.
Health officials have warned of the risk of spreading Covid-19 during protests, and urged protesters and police to practise social distancing in order to decrease the risk of transmission. As protests in the US turned violent, there are fears that cases of Covid-19 will rise sharply. These warnings from public health experts follow the easing of lockdown measures in the UK and in other parts of Europe in the last couple of weeks.
As many European countries look to open their economies once more, we are reminded of the importance of quality of life, work/life balance, communication and effective leadership. Moving forward, the global private equity space is at a turning point, something which was discussed during PEWire Live, our online event that took place on 2-4 June.
Covid-19 and the ensuing political, social and economic uncertainty have left the door open for private equity firms to evaluate their current strategies and plan for the future. Troy Pospisil, founder and CEO of InCloudCounsel discusses this in an article for PEWire this week, outlining steps private equity firms can take to gain a competitive edge during the pandemic.
In an interview with Simon Tilley, managing director at Stephens Europe, we explored the current trends and challenges facing PE firms during and after the pandemic and how he believes that the PE sector can and will learn from this current state of crisis and uncertainty.
As the economy is looking cautiously toward the next phases of easing, exits have started picking up again, indicating somewhat more stability in some segments of the market. Pictet AM said on Friday that market hopes for a V-shaped recovery “look optimistic” on the back of the economic recovery emerging in China.
Karin Wasteson
Editor, Private Equity Wire
| | ADVERTISEMENT | | | | | | | | | | Hotel California no more – Secondary transactions and the rise of entry and exit routes in PE | | Fri | 5 Jun 2020, 13:03 | | By Michael Halford & Brian O’Neill, Goodwin – Until recently, an investor in a private equity fund could expect an investment to be tied up for at least 10 years. Historically and currently, private equity funds have a 10-year life with the option for the general partner (usually with some form of investor or advisory board consent) to extend the fund by two or three additional one-year periods. In practice however, private equity funds have lasted longer than this with a typical fund potentially lasting for 15 years or more before final wind up and liquidation. |
| | | | PE and the pandemic: What firms can do to gain a competitive edge | | Fri | 5 Jun 2020, 13:03 | | By Troy Pospisil, founder and CEO, InCloudCounsel – The Covid-19 pandemic has had massive economic impacts across the globe, though the ultimate effect on business remains to be seen. What will likely become clear in time, though, is that the pandemic will have a substantial negative impact on private markets that extends to almost every corner of the economy. |
| | | | Inflexion exits Glide to Alinda Capital | | Fri | 5 Jun 2020, 13:03 | | Inflexion has exited Glide, a UK infrastructure provider to difficult to serve markets – like high-density accommodation – to US infrastructure investor Alinda Capital, generating a return of over 3x. |
| | | | | | | | ADVERTISEMENT | | | | | | Iron Pillar partners with Nitya Capital | | Fri | 5 Jun 2020, 13:03 | | Venture growth investor Iron Pillar, a specialist in mid-stage tech investments in India, is partnering up with Nitya Capital, a US investment firm with USD2 billion in AuM. |
| | | | | | | | | | | | READER SURVEY: Tell us what you think… | | Fri | 5 Jun 2020, 13:03 | | Here at Private Equity Wire, we’re always looking for ways to better serve the thousands of fund managers, service providers and investors who use our site regularly to keep abreast of the latest news and developments in the private equity sector. |
| | | | | | | | | | | The merits of building an effective FX strategy These are understandably uncertain times for all market participants, including the global private equity industry, as the impact on supply chains and business revenues across all sectors begins to take effect from Covid-19. |
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