UK private equity mid-market update
Date 16 April 2020
Type Investment Banking
Over the last three weeks, private equity (PE) houses have been
through detailed crisis management planning exercises with their portfolio
companies and have a clear plan of action on a worst, base and best-case
scenario basis.
Whilst management teams focus on the execution of these plans, attention at the
PE houses is now switching to where future investment opportunities will come
from. All PE houses would love to see a short, sharp V-shaped recession with
the result being a one-off downward correction in valuations in the leveraged
buy-out market. Unfortunately, that utopian scenario is unlikely to arise in a
market that remains oversupplied in terms of both equity and debt funding and
PE houses may need to be more inventive.
In our latest UK PE mid-market update, we share the top three areas where
we expect investment opportunities to arise: public companies, buying debt and
minority investments.
