Private Equity Investing Post Coronavirus

An article posted by Bain & Company addressed a few issues unique to this downturn as it relates to investment strategy. But with the amount of dry powder on the sidelines, transactions are bound to resume. Per the article, here are a few variables to keep in mind:

Timing: Investments made during a global financial crisis outperform investments made during upcycles (click on the link below for a good visual).

Industry: The article stated that some industries, like travel and tourism, will likely recover on some unknown time horizon at similar prerecession revenues. But it listed a few niches and industries that are likely to thrive including collaborative software products and health and safety products.

Turnaround Expertise: Does the firm making investments have the expertise required to recognize bankruptcy risk and react before it is too late. 

Click on the link below for additional examples.

Source: Marc Lino, Hubert Shen, Andrei Vorobyov and Hao Zh | “Investing in a Time of Crisis” | Bain & Company | 4/2/2020 | Visit

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