Mazars, the international audit and advisory firm, has published the results of a survey of private equity firms and investors. The results form part of a study the firm has undertaken in order to understand the challenges of private equity and investor contacts, gauge their levels of optimism, and hear about their response strategies as a result of the Covid-19 crisis.
Overall, survey respondents expect a drop in revenues for portfolio companies over the next twelve months; unsurprisingly, there has been a clear decline in levels of activity as a result of the situation. In the meantime, while the majority of investors are open to new investments, there seems to be a smaller pool of available opportunities to choose from, and this will make completing deals more challenging. On the other hand, survey responses indicate a general sense of optimism that there will be an appetite to invest and pursue new opportunities, with firms confirming that they are ‘open for business’ as much as ever. However, there was also consensus in that things will not be back to normal until 2021.
According to Mazars Malta Managing Partner Anthony Attard “the survey results confirm that these are challenging times for those in the world of private equity.” He explained that “deal flow has been reduced, and lockdown and confinement restrictions make it challenging to complete deals when the players cannot meet physically. Moreover, there are increased demands in terms of managing portfolio companies. However, despite these potentially significant challenges, there is a level of optimism and resilience within the private equity community, and our experience tells us that quality transactions will still be delivered.”
The full report can be accessed through the following link: www.mazars.com.mt/Covid-19 and clicking on the ‘Covid-19 – Managing the crisis’ tab.