89% of PE firms say they expect to deploy capital in the next 3-6 months
Research we have just completed amongst a range of leading private-equity firms suggests that the industry is now advancing rapidly in their response to the Covid-19 crisis.
89% of PE firms polled say they expect to deploy capital in the next 3-6 months. A sudden drop in share prices and valuations in recent weeks means there are opportunities for PE firms to acquire UK businesses at a significant discount to their historical averages.
In addition, PE firms are now poring through proposals from financial advisers and other intermediaries, on behalf of businesses looking to recapitalise by selling strategic or controlling stakes.
71% of the PE firms polled said they also plan to add additional capital to their own investee companies who have seen their trading impacted by coronavirus.
As PE firms get further into the process of refinancing and reengineering those companies hit by the “lockdown” we are expect that demand for Chief Restructuring Officers (CROs) and other experienced CFOs will increase. That trend towards hiring interims with really specialist skills in restructuring was one we saw firmly established after the credit crunch.
Read more from New Street Group in Private Equity News.
For advice on human capital at any stage of the investment lifecycle, please do not hesitate to get in touch. Paul Phillips 07557 746631 firstname.lastname@example.org