Asian private equity - Look aheadlabel_outline Private Equity Asia
Picking Winners: An evolving deal environment
Deal Strategies in a Slowdown
In recent years, there has been record levels of dry powder available to GPs and the increase in market volatility has seen a reduction in valuations that have also been at record highs. Now that price multiples have fallen, PE managers are in a strong position to deploy capital and acquire high-quality assets at more attractive valuations.
The rise in distressed companies that require additional support provides an opportunity for managers with experience of turnaround and special situation funds. There is already evidence of domestic Italian GPs exploring these opportunities through the launch of new debt and restructuring funds. One possible lasting impact of this unprecedented health and economic crisis, is a shift in the role that private equity plays in providing support beyond the provision of capital.
Unquote recorded 44 first or final closes of European private equity funds between March and May, a 42% drop on the three-month average seen across 2019. In Italy, GPs are likely to struggle to maintain the strength seen in 2019 when buyout and generalist vehicles raised €6.8bn.
As a result of continued uncertainty, many LPs are putting fund commitments on hold and are re-considering their exposure to certain countries and sectors. A number of GPs in the Italian market have delayed the launch of their next fundraises such as Consilium Private Equity and Green Arrow Capital, among others. Others including Quadrivio, Mandarin Capital and Aksìa Group have postponed the final closes of open funds until the crisis calms.
Keynote panel: Private equity and economic transition
Having endured several months of severe disruption, China’s economy appears to be returning to a version of normal. Curtailed spending and severed supply chains have inflicted wounds on businesses, which will take time to heal. But there are also longer-term challenges around structural reforms and consumption-led growth. PE has contributed to the country’s economic evolution and will continue to do so – the question is how its role might change. Our panellists offer some answers.
- How is macroeconomic uncertainty impacting investment?
- What lessons can be drawn from past difficulties?
- Are there likely to be more distressed opportunities?
- What does China-US decoupling mean for private equity?
A matter of control: Are buyouts coming of age?
Expectations of more buyout opportunities in China are based on well-known factors: succession planning, multinationals that get out when the going gets too tough, and founders who recognise they need help to reach the next level for expansion. But how long will it take for the trickle of deals to become a steady flow, and are private equity firms equipped to respond when this happens? Our panellists discuss the implications of majority ownership.
- What does control mean in a China context?
- How do private equity firms source buyout deals?
- Are take-privates the next big opportunity?
- How are GPs addressing the new norms for businesses and creating value?
GP panel - The new PE playbook
As the pandemic grips the world and economic activity is spiraling down, India exercised the biggest lockdown in the world essentially putting a stop to economic life as we know it. The re-opening of the economy brings unique challenges as fund managers adapt to a new normal that will affect, deal making, portfolio management and fundraising, as well as presenting opportunities for private markets as they look to rebound. A group of leading investors will discuss the key questions front of mind for the community, including:
- What is the impact on Covid-19 on the economy and what deal opportunities will it likely present?
- How are GPs approaching fundraising and investor relations?
- How do you value a company now in a Covid-19 world?
- What will happen to the private equity landscape and how are the LPs reacting
Inside the storm Portfolio management
Fund managers alongside company founders and executives are working together to ensure survival of their portfolio companies that are dealing with liquidity issues in a difficult environment, searching for operational strategies to stay buoyant. Some companies have been forced to change business models, raise additional funds and reposition themselves to take advantage of the new landscape. Our panel of experts will share their experiences and ongoing efforts in steering their portfolio to safety.
LPs’ view on private markets
According to a recent institutional investor survey featuring 100+ LPs, a majority of respondents stated that they do not plan to make any changes to their private market allocations or leave certain geographies in the short term. Despite investors becoming more comfortable with deploying capital to Southeast Asia in recent years, as well as the region being voted the most attractive investment destination by LPs in a 2019 EMPEA survey, are the region’s fragmented markets, succession challenges, and track records set to become a deterrent? Our esteemed panel of local and international LPs will discuss opportunities in Southeast Asia, where they plan to allocate, and their mid- and long-term strategies for the region.
Tipping the ESG balance
With many LPs using the crisis to re-evaluate their portfolios from an ESG perspective, the spotlight for many has shifted towards more sustainable investing. Hear from a senior panel of experts about their ESG investing journeys, whether the Coronavirus pandemic has magnified concerns and the possibility of using the secondaries market to tip the balance towards a more impact-focussed portfolio.
Portfolio Challenges of Repairing a US CLO
With a quarter of US CLOs failing their OC tests there has been plenty of talk about the impact of test-failures, but very little talk about what portfolio management steps a manager can take to fix the problem. As loan-market prices stabilize some test will cure themselves, but other like CCC-buckets will require active steps, complicated by the wide range of other matrices and metrics that need to also be fulfilled.
Private credit: Predicting the post COVID-19 environment
The coronavirus outbreak – and subsequent curtailment of economic activity – triggered a global liquidity crisis. Some companies have already gone bankrupt; others will surely follow. Still more are caught in a financing void, unable to tap banking or capital markets channels. Alternative lenders not already overexposed to subordinated debt can help fill the gap. Distress specialists are pursuing deals, while many growth-oriented credit managers are waiting for the right entry point. Our expert panelists debate the risk-reward of post COVID-19 credit.
Rethinking hospitals in the wake of COVID-19
The shortage of hospital beds in the wake of COVID-19 became painfully obvious as major cities such as Washington DC, Chicago and NYC set up temporary hospital wards at their major convention centres as places to house non-critical patients. This has brought about calls for how hospitals should reshape itself in this country to combat both COVID-19 and future pandemics.
Building a viable future for UK greenfield investment
The UK’s lacklustre greenfield infrastructure investment pipeline, particularly for social and transport PPPs, is a far cry from the deal flow of the 2000s. But this could be changing with the emergence of new sectors such as fibre, water and EV charging. The government may also turn again to the private sector in its quest to boost post COVID-19 investment.
Once a niche corner of private equity, impact investing has recently been thrust into the private market’s limelight. Dedicated pools of capital intended to generate positive, measurable social and environmental impact alongside a financial return have been raised by the world’s largest alternatives managers, whilst the number of smaller niche strategies have also proliferated.
LP and wider societal demands for capital to be invested ethically is higher than ever against the backdrop of a global pandemic. Higher levels of urgency surrounding climate, inequality and the fact that governments can no longer be relied upon to solve these issues have coalesced to create pressure on investors to act.
Watch this live event to hear from European LPs and GPs on their strategies for impact investing and what’s in store for the year ahead.
Will COVID-19 tip the scales for private infrastructure investment
- Will the extended presence of COVID-19 lead to infrastructure being included in some future versions of the stimulus bill if unemployment numbers continue to climb?
- Will states focus more on demand-risk projects such as managed lanes as way to stimulate job growth?
- Or will they focus on more risk demand projects, particularly if the municipal bond market continues to start to loosen up?
- Where and how will digital infrastructure affect this?
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