Covid-19 | Sept-20, Check-in
In the period from March-May, the prevalent idea seemed to be that if “this” lockdown continued until 2021, there may be repercussions.
However, we have seen quite strong CapMarkets activity (not M&A) and demand for RX. HY markets (buy-out) funding has been fairly dry but overall, the markets have functioned in the sense of staving off some liquidity crises (others not so much).
Not just a point about the govt intervention, but going forward till the end of Q1 2021, with vaccine looking unlikely soon, what does everyone see? This is a pretty broad question so I will break it down:
BB/MM with balance sheets (lenders) etc.
Pure Advisory shops WITHOUT RX (is it mostly equity raises you are doing?)
EB/Advisory shops
Non-elite boutiques
Private Debt Funds
(Buy-out) PE
Office real estate/commercial
In terms of sectors from what little I have gauged it looks like HC, TMT, PUI have mostly been fine. Lending/CapMarkets for O&G/E&P not sure? Industrials (Pretty broad I know)? C&R has seen the R part, which was dying a slow death, more or less put out of its misery.
For context: I am based at an MM in EMEA, covering Generalist Advisory. At least in EMEA it looks like further disruptions and lockdowns are imminent and a LOT of customer-facing businesses will need to continue operating at c. 50% capacity.
