The Private Equity Editors’ Podcast 2

In this episode, we discuss:

Key developments over the past week

Talya discusses the main overarching development that she has noticed over the last week and a half or so is the shift from short term contingency planning and business safeguarding to more of a long term view.

Alice discusses recent reports of security issues at video conferencing platform Zoom. Having discussed the matter with cyber security experts, the key message is to stop using the service.

What we’ve published

Alice looks at an article on LP defaults - or rather the lack of them. There had been some reports in PE media over recent weeks that there had been some investor defaults. But in reality, the picture is far more mundane.

Talya highlights recent coverage in the latest issue of Real Deals regarding first time funds and the compelling opportunity the crisis has thrown them.

Stat attack

Alice picks up on ILPA’s recently released report, based on an interactive meeting with its members, as well as further one on one conversations. It rounded up responses and, one of the most interesting findings was:

ILPA asked if LPs have experienced changes to capital calls related to subscription lines. The response was:

• Yes: 49%
• Yes, but no explanation from GPs: 13%
• No: 13%

Talya points to a key finding regarding carve-outs. According to a survey by TMF - a third of carve-outs have failed to go to plan. While carve-out activity is likely to continue to climb as businesses look to restructure following Covid-19 upheaval, a total of 34 per cent senior executives said their most recent cross-border carve-outs failed to meet expectations. A further 24 per cent said that costly overruns significantly impacted the deal.