Most German PE firms say 75% of portfolio unimpaired by Covid-19 – survey

The survey took place in June and includes responses from 40 Germany-based mid-market PE firms.

A minority of the participants (24%) said that at least a quarter of their portfolio companies were facing liquidity shortages, meaning they required external capital injections.

When it comes to cooperation with lenders during the crisis, almost two thirds of managers surveyed rated this as "constructive", while one in 10 described it as "difficult". Comparing the behaviour of banks versus direct lending funds, half of participants declined to make a judgement on which group had behaved more constructively; of those who did respond, a slim majority said that banks had been more constructive.

Of the managers surveyed, 10% said that at least three quarters or all of their portfolio companies were severely affected by the pandemic. According to 30% of the participants, one to three quarters of their portfolio companies were suffering significantly.

In spite of their portfolio difficulties, 78% of participants said that they would be open to investing in resilient businesses, as well as those with temporary liquidity problems caused by the crisis that would otherwise be healthy. Only 22% of participants are willing to make restructuring or reorganisation investments.

The majority of those surveyed expect holding periods to increase; this statement achieved an agreement rating of 8.2 out of 10 on average (with a rating of one being "strongly disagree" and 10 being "strongly agree").

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• GPs
• DACH
• Germany
• Deutsche Beteiligungs AG
• coronavirus