Impact of COVID-19 on Private Equity
Next week I'll be interviewing with a PE firm (via Skype), and they might ask me about COVID-19 and its effects on PE's and their portfolio companies. Of course I've been doing some research on this, but was wondering if any of you have any reports/articles/etc that might be worth reading?
Thanks a lot!
To help answer your question, can you provide more information on the firm? Latest fund size and any industry focus? I think COVID is going to impact certain businesses more than others depending on their size and industry, but overall once the credit materials stabilize, I think activity will continue but with different risk levels and activity depending on sector / focus
You'd say e.g. lower leverage, tighter covenants, etc.?
It’s also worth noting that vintage will play a part in assessing COVID-19’s impact on the fund.
Yeah indeed!
Vintage typically refers to years when capital is raised and put toward investment(s). Funds with more recent vintages (2019) should be able to weather volatility whereas funds with older vintages closer to (2015/2016) are having to rethink exit strategies for many of their holdings.
I'm not an English native speaker if that's what you mean.
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