Private Equity: Insights and Outlook
Private equity funding has been a driving force behind deal activity and growth in our sectors in recent years, and despite COVID-19 the private equity capital available is at record levels. Structural change will always create opportunity as well as challenges, and private equity is well placed to help businesses emerge strongly and take advantage of the opportunities.
Feedback from private equity indicates they will continue to deploy funds and back ambitious entrepreneurs through 2020, both through direct investments (‘platform’ investments) and by funding existing portfolio companies in making acquisitions.
We can’t ignore however that COVID-19 and any prolonged downturn will have an impact on the private equity market, whether that’s in deal volumes, the characteristics that private equity look for, or deal structures.
We caught-up with Maurice Hernandez, Principal at Accel-KKR, and Christian Hamilton, Managing Partner at Tenzing, to get their perspectives on how private equity is responding to the current situation. Specifically, how they are supporting their portfolio companies and their advice for entrepreneurs considering the private equity route.