Top Private Equity firms face slight hiccups amid coronavirus crisis, otherwise faring better than any other industry. Read on to know more…
The global pandemic brought the entire world’s economy to a sudden halt leaving numerous business high and dry. While the financial world was reeling under the impact of COVID-19, the other side of the financial world i.e. PE firms and Venture Capitalists were just playing the wait and watch game.
Didn’t the pandemic affect the private equity industry?
Not much – the industry experts reveal.
Here’s what the reports from the various financial experts say.
Pitchbook – the Private Equity data provider had recently released their second quarter report for the year 2020. The report talked about the state of the private equity industry and venture capital. The report offered an interesting insight into the state of private equity firms and venture capital before and during the COVID crisis.
The report stated that top private equity firms was fairing quite fine as public still needed finance and businesses were happening even during the pandemic.
However, the pandemic situation had put even the top Private equity firms into a hot fire. The PwC report recently shared some of the concerns of US Private Equity Firms along with the steps they could take to cover those.
According to the report some of the issues that private equity firms might face include –
- Crisis management and response
- Their workforce
- Operations and supply chain
- Finance and liquidity
- Tax and trade
As private equity firms battle the slight hiccup amid the coronavirus crisis, the professionals aspiring for private equity careers should keep themselves abreast with all the happenings related to the global economy and financial industry.
This is the time to showcase your eagerness to work in the best private equity firms and you can use this opportunity to brush up on your practical skills to create a financial plan that will help resolve the above-mentioned issues.
For those working in private equity firms, understand that your firm might be facing a situation where they may have various companies where numerous employees might be seeking guidance as well as direction amid the crisis.
While private equity firms battle the cybercrime with cybersecurity their prime concern and top notch priority, this is the time when they need to be extra vigilant as they may face additional threats and vulnerabilities amid the crisis.
Reason: Considerably higher levels of remote access to core systems. In addition to the management and employees who also could be more vulnerable to social engineering efforts amid the coronavirus crisis.
While the picture looks glum, private equity industry with loads of dry powder currently is applying a wait and watch tactic. However, at the same time they also don’t want to repeat the mistakes of 2008-2009 economic downturn.
Result: while they are waiting for the situation to improve a bit, private equity firms are not such affected by the global pandemic as there are small businesses that need help and this is where private equity firms come into play.