Thought Leadership

Publish Date

Feb 04, 2021

Looking Ahead: How PE Portfolio Companies Have Fared Under COVID-19 and the Lingering Impact on Future Deals

Jonathan Nus, Managing Director | Ilka Krieger , Senior Director | Brad Stern, Senior Director

Region: North America

In hopes of turning the corner on COVID in 2021, private equity investors are keen to understand the lingering, and potentially permanent, effects on their portfolio companies. Capital markets participants are adapting their processes in order to address pandemic challenges, which makes it important for investors to stay on the pulse of the rapidly evolving deal environment.

The outlook for M&A activity remains buoyant. While the vaccine roll-out has stoked investor confidence, there’s an acknowledgment that the pandemic’s effects will be felt for years as various sectors of the economy continue to move through phases of recovery. The impact of the pandemic has thrust companies in some industries into survival mode, while others (such as those in the healthcare/life sciences industries) have experienced meaningful growth. In this survey report, we lay out trends and key lessons learned during the pandemic that private equity investors may find insightful as they move forward in recovery.

“The NYPEN Board of Directors is pleased to partner with Alvarez & Marsal to produce this survey which provides insights into COVID-19’s impact on portfolio company performance, negotiations with lenders, as well as new deal pricing and structure in this environment. We hope the results of the survey will inform our members, and the broader PE community, and help them navigate new opportunities in 2021.”

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