Private Equity Wire Newsletter

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NEWSLETTER | 1 May 2020

The private equity space has seen a number of high-profile fund closes this week with Icebreaker.vc, which invests in Nordic tech firms, holding the first close of its second fund at EUR50 million. New York-based firm Constitution Capital Partners held a final close of Ironsides V at USD1 billion – its largest fund to date.

Apollo issued a USD300 million secured note to Cimpress, a commercial-printing company that owns Vistaprint and has been affected by the pandemic, via its Hybrid Value strategy. Designed to provide downside protection for investors, it aims to commit sizeable investments in a short timeframe.

The deal marks the second large capital solutions transaction led by Apollo’s Hybrid Value business in April, bringing its investment total to USD900 million this month.

Elsewhere, Carlyle saw a USD1.2billion investment loss in Q1 and the private equity group said it “withdraws all previous financial guidance” due to pandemic fallout as the economic effects of coronavirus “reduces our ability to accurately forecast near-term financial results”. The results mean that the accrued carry on three of the group's funds is completely wiped out.

In two feature articles by James Williams, we examine what new technologies are out there, as well as how new tech is helping individuals work from home and organisations combat distance working in the face of a global pandemic.

This mirrors the findings that half of PE firms are now hiring through video-based interviews, according to PE and venture capital recruitment firm PER.

While firms do their best to weather the storm and survive in the developed world, the economic and health impacts of Covid-19 will be far greater for emerging markets, which may require financial aid in order to recover. You can read our in-depth analysis and commentary in Karin Wasteson’s feature this week.

Private Equity Wire

Microsoft Office 365 heist highlights sophistication of cultural engineering cyber attacks

Fri | 1 May 2020, 13:57

Private equity groups using cloud environments to improve their remote working capabilities under the Covid-19 lockdown need to be as vigilant as ever when it comes to cybersecurity.

Time to find your inner cyborg…?

Fri | 1 May 2020, 13:57

Analysis into how Hg and Two Six Capital are applying data science to better understand and improve business revenue drivers…

Fri | 1 May 2020, 13:57

With major Western economies around the world slowing down significantly, emerging markets find themselves in a perfect storm of multiple stress factors as the Covid-19 pandemic continues to spread.

Fri | 1 May 2020, 13:57

Funds managed by Apollo will provide a USD300 million secured note to Cimpress, a commercial-printing company that owns Vistaprint and has been negatively affected by the coronavirus crisis.

Fri | 1 May 2020, 13:57

The private equity industry and the legal firms servicing the space have witnessed an unparalleled digital transformation in recent weeks. Driven by the Covid-19 crisis, the legacy of this dramatic change will endure long after the calamity has passed.

Fri | 1 May 2020, 13:57

Returning cash to shareholders or changing managers is likely to look less appealing in the current climate, while underwater shareholders may regret lowball bids from strategic acquirers or private equity sponsors, according to a new report by Activist Insight.

Fri | 1 May 2020, 13:57

More than half of PE firms (52 per cent) are open to hiring people via video calls, according to an April survey by PE and venture capital recruitment firm PER.

Fri | 1 May 2020, 13:57

Alternative investment manager Constitution Capital Partners, focused on North American private equity and private credit, has held a final close of Ironsides V at USD1 billion.

Fri | 1 May 2020, 13:57

Icebreaker.vc, which invests in Finnish, Swedish and Estonian tech companies, has held a first close of its second fund at EUR50 million.

Fri | 1 May 2020, 13:57

With market valuations at peak levels and potentially due to correct in 2020, PE firms need to know that their portfolios can withstand a recession and weather the storm as they look to generate value. As such, this webinar will examine some of the key considerations to building an FX risk program to help managers protect the long-term performance of their fund.