Private Equity Wire Newsletter

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NEWSLETTER | 15 May 2020

This week has seen a lot of changes in the ways that governments are approaching the ongoing pandemic. While economic figures look extraordinarily grim, cautious containment seems to be the new way of thinking about coronavirus as more and more countries begin to partially or fully lift lockdown measures, carefully monitoring each other’s progress while doing so.

In Thailand, small businesses and open spaces are back up and running, while locals in Palermo flocked to Mondello after Sicily announced a partial re-opening. In the UK, Boris Johnson announced on Sunday evening that those who could not work from home were being encouraged to return to work if they are able to do so safely. The messaging from the UK government officially changed from “Stay home” to “Stay alert”, reflecting the first step in its attempt to reopen the economy.

Questions about whether it is too soon to lift social distancing and quarantine measures are being raised across the world, and with the WHO warning this week that coronavirus “may never go away”, many in the private equity space are looking to invest in healthcare as we adapt to an uncertain future.

Three Hills Capital Partners completed a EUR67 million investment round to partially finance the acquisition of Agfa-Gevaert’s healthcare software business on Tuesday.

Swiss company Creoptix also announced their role in supporting Professor Adriano Aguzzi, Professor for Neuropathology at University of Zurich, in developing Covid-19 antibody tests through the use of the Creoptix WAVEsystem.

Developing reliable immunity tests is viewed as crucial for stopping the spread of the pandemic, and a key component in the effort to reopen economies crippled by lockdowns.

Returning to business as usual seems increasingly unlikely, but as Jon Mowll, responsible investment analyst at EdenTree Investment Management explains in a guest piece this week, that might not necessarily be a bad thing.

The pandemic has revealed underlying inequalities within our society and Mowll explores whether it's time to rethink capitalism and how businesses can become more socially aware - by focusing on the “S” in ESG.

And finally, preparations for our online summit PEWLive US continue apace this week, with three more panellists joining our roster of industry experts for what promises to be an unmissable event. Click here to secure your place…

Karin Wasteson,
Editor, Private Equity Wire

The consequences of LP defaults due to capital calls

Fri | 15 May 2020, 13:02

By Jeffrey M Bronheim, Daniel H Mathias, James R Mossetto, Cohen & Gresser – The current global Covid-19 pandemic continues to have a major impact on a wide variety of economic activities. For private equity funds, investor uncertainty and the need to preserve cash may drive LPs to question their obligations to fund capital calls.

Fri | 15 May 2020, 13:02

By Jon Mowll, responsible investment analyst at EdenTree Investment Management – The global spread of Covid-19 has increased awareness of systemic issues that predate and have been exacerbated by the pandemic. The virus has raised questions of who and what we – or rather, our economic systems – value, as well as questions around the nature of work, our collective humanity and the role of business in society.

Fri | 15 May 2020, 13:02

The alternative fund management industry is witnessing a huge rise in the volume and diversity of data being ingested, as technology innovation facilitates firms in their research and portfolio construction activities; not to mention using advanced analytical tools to improve the quality of fund reporting.

Fri | 15 May 2020, 13:02

Capital calls are expected to fall in the short term but should pick up rapidly throughout the year as cash-rich PE funds begin bargain hunting, according to new research by eFront.

Fri | 15 May 2020, 13:02

Swiss company Creoptix, which received series C funding in September and focuses on next-generation bioanalysis, is supporting Professor Adriano Aguzzi, Professor for Neuropathology at University of Zurich, in developing Covid-19 antibody tests.

Three Hills Capital Partners partially finances Agfa-Gevaert’s healthcare business deal

Fri | 15 May 2020, 13:02

Three Hills Capital Partners has completed a EUR67 million investment round to partially finance the acquisition of Agfa-Gevaert’s healthcare software business by Dedalus Holding.

Fri | 15 May 2020, 13:02

Wellth, a platform designed to improve treatment adherence using behavioural economics, has received USD10 million in Series A funding round.

AMC exits Optimapharm

Fri | 15 May 2020, 13:02

CEE-focused Mezzanine Management has fully exited its investment in European contract research organisation Optimapharm by selling it to The Rohatyn Group.

Fri | 15 May 2020, 13:02

In a recent white paper entitled Evolution in Asset Management, SEI pointed out that 70 per cent of US fund managers are currently looking to deploy advanced analytics in the front-office. The field of data science and machine learning-based data analysis is helping to transform how fund managers think about data to gain a competitive edge.