Download the October 2020 issue of Unquote
This month in Unquote: LPs could start to feel the weight of the co-investment boom as portfolios bear the strain of Covid-19. But could it be an opportunity for others to up their game and deploy into opportunities arising mid-cycle?
The past few years have seen co-investment on the rise, with LPs eager to share in the upside of continued PE outperformance. But the robustness of an investor's co-investment strategy is being put to the test this year in light of the difficult social and economic conditions in the wake of Covid-19, with some questioning whether this will lead LPs to rethink their strategy.
Says Sam Kay of law firm Travers Smith: "I would expect sophisticated and experienced co-investors will be able to continue their programme throughout the current turmoil and even thrive by having sufficient resources to support portfolio companies (so avoiding dilution) and be able to target high-growth investments. For investors who followed the fashion because everyone was talking about co-investment, they are going to be faced with a heavy dose of realism and some difficult decisions."
Also in this issue:
- UK exits set to drag in Q3
- PE players await DACH carve-outs uptick
- GP Profiles: ArchiMed, Sherpa Capital
- Italian PE players highlight silver linings amid crisis
- Our usual in-depth coverage and statistical analysis of activity in each regional market
To download the latest issue of Unquote in PDF format, please click here
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