Team Tyzack

Private Equity in times of Covid

I came across the following article from McKinsey which I thought I should share with you. It makes a number of interesting points and the overall thrust is one with which I agree – there will be more survivors that winners. Private equity firms will start having to make some hard decisions over the next few months about rebalancing their portfolios which will, when combined with the wall of money out there, give rise to a number of very exciting and valuable opportunities.
The other puzzling graph is Exhibit 3. This suggests that of all the countries surveyed, the UK’s change in market capitalisations is the worst in the world. We are the only one which shows no “blue” or “positive”. Is this because we are doing worse or because of the typical British “stiff upper lip” syndrome. In any case, it suggests again that the opportunity for a large rebound is there and that things may not be as bleak as the media would have us believe.https://lnkd.in/d5GfMKu

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A rolling disruption: COVID-19’s implications for private equity and portfolio companies