Private Equity Wire Newsletter

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NEWSLETTER | 22 May 2020

Widespread uncertainty to subdue PE deal activity until restrictions ease

This week saw a few fund closings, many of them with a healthcare focus, including the announcement of Cowen Healthcare Investments' third fund on USD493 million on Wednesday. James Williams explores how the US discretionary healthcare sector feels the impact of the coronavirus pandemic in his weekly feature.

The travel industry is one of the sectors that have been hit hardest by the crisis, and some holiday destinations in Europe are now trying to see if they can open for business again. Tourist hotspots like Lake Cuomo in the region of Lombardy in the north of Italy – the so-called “red zone” at the peak of the European corona crisis – are getting ready to welcome tourists, as well as Greece, which said it will open the tourism season from mid-June.

In order to help consumers and businesses finance their travel needs, Fly Now Pay Later has launched a financial structure that allows users to book a trip now and pay over a 12-month period. The startup received GBP35 million in a series A round led by Revenio Capital.

The deal was announced the same week the UK Government said it will start imposing a two week quarantine requirement for any passengers entering the country, in a move that is being introduced later than that of several other European countries and the US.

With travel restrictions and businesses facing widespread uncertainty, deal flow is expected to stay flat until we come out of lockdown, according to the UK & Ireland Private Capital Breakdown. The newly released report by data provider Ptchbook covers Covid-19's impact on the private equity industry

One of its key findings is that only when we see substantial easing in lockdown measures will deal activity pick up again, as GPs do not plan on closing investments through an entirely virtual process. Most managers will close deals only once they have met management teams face to face and they’ve seen the business operating in full motion.

Before the global pandemic hit the financial world, there were numerous drivers in motion in the PE space. In our guest feature, “Crisis accelerates changes already underway in PE space”, Audrey Nangle, director of private equity & real assets at MUFG Investor Services, looks at how the necessity to take new paths and build new relationships in the private markets industry will accelerate and reshape the industry in new and indelible ways.

In Nangle’s words: “The PE landscape was already in flux when the novel coronavirus came onto the scene. Now, some funds are experiencing or anticipating major financial disruption, while others are finding unexpected gains and opportunities.”

Karin Wasteson
Editor, Private Equity Wire

Crisis accelerates changes already underway in PE space

Fri | 22 May 2020, 13:12

By Audrey Nangle, director of private equity & real assets at MUFG Investor Services – What happens when you take a part of the investment industry that was already changing and subject it to a profound shock? That’s the question that will challenge private markets for the foreseeable future.

Fri | 22 May 2020, 13:12

While the US healthcare industry has historically been stable throughout economic cycles, it has a large consumer retail component to it, and “foot traffic” has been meaningfully reduced as a result of the coronavirus.

Fri | 22 May 2020, 13:12

Deal flow will remain depressed until the UK lockdown eases, according to the UK & Ireland Private Capital Breakdown, which covers Covid-19’s impact on the private equity industry.

Fri | 22 May 2020, 13:12

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 examined some of the key considerations to building an FX risk program to help managers protect the long-term performance of their fund.

REPLAY NOW >

TA Associates backs Melbourne-based Honan Insurance Group

Fri | 22 May 2020, 13:12

Global growth private equity firm TA Associates has agreed to make a strategic growth investment in Honan Insurance Group, a Melbourne-based commercial insurance broker.

Fri | 22 May 2020, 13:12

Iron Pillar has closed its USD45 million Top Up Fund, which will top-up the Iron Pillar Fund I that held its final close in 2018 with capital commitments of USD90 million.

Fri | 22 May 2020, 13:12

British fintech alternative payment provider start-up Fly Now Pay Later has raised GBP35 million in Series A equity and debt funding round, which will offer a new way to finance travel once restrictions ease.

Fri | 22 May 2020, 13:12

Par Equity has led a GBP750,000 financing round with support from The Scottish Investment Bank into UniKLasers, a manufacturer of high precision scientific laser instrumentation used in industrial applications.

Fri | 22 May 2020, 13:12

Three more panellists – Christopher Sand, Director, Ardian, Piyush Sharma, Associate Partner, McKinsey & Company, and Omar Hassan, Principal, CFO/CCO, Cloverlay Partners – have been confirmed panel discussions at the forthcoming Private Equity Wire LIVE online seminar, which is taking place from 2-4 June.

Omnes supports Biofutur group LBO

Fri | 22 May 2020, 13:12

Omnes has invested EUR60 million in a primary LBO, carried out as a proprietary deal with the Biofutur group, a cluster of medical biology analysis laboratories in Ile-de-France, which is managed by independent medical biologists.

Committed Capital closes EUR55m fund

Fri | 22 May 2020, 13:12

Amsterdam-based Committed Capital has raised EUR55 million in two months for its third investment vehicle from entrepreneurs, family offices and institutional investors, both in and beyond the Netherlands.