RESEARCH TRIANGLE PARK – Entrepreneurs, startup execs and investors wanting to know more about how the coronavirus is affecting private equity markets should know this immediately: The PE business is being transformed, says PitchBook.
The private equity and venture capital news site is out with a new report that says the virus is reshaping the global economy, not just in the US.
“The latest research note from our PE analysts details how the outbreak is transforming the market and how the private equity industry is likely to respond as it continues,” PitchBook reports.
“For private equity—in many ways a bet on future economic growth—that means first looking to secure current investments before sourcing new deals.”
Key findings in the report, according to PitchBook:
- Median time to exit will likely be driven up as firms hold companies rather than sell at a discount
- Fundraising will continue its slowdown
- Prospective investors in nascent funds are likely to be more risk-averse
- As the pandemic’s full effects become clearer, GPs are likely to pursue carveouts, divestitures and PIPE deals in greater numbers