After The Storm: Private equity after COVID-19

05 January 2021

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Mergermarket is pleased to present After the storm: Private equity after COVID-19, published in association with IHS Markit.

As challenges abound for the PE community, our survey of 30 PE executives reveals that most firms are up for the fight. First, PE firms are actively managing downside risk in their portfolio companies – including operational risks associated with COVID-19. Second, a significant proportion of respondents are looking to tap into higher returns by diversifying their asset class exposure. Third, firms are increasingly adopting advanced technologies to acquire a competitive advantage.

Key findings include:

  • 37% of respondents say they will be prioritizing managing downside risk in their portfolio companies over the next 12 months.
  • 57% believe the PE industry should adopt a standardized reporting policy for fund performance to combat instances of fraud and improve transparency.
  • When asked which parts of their businesses have benefited the most from new technologies, the top three answers were regulatory reporting, due diligence and portfolio analysis.