Has Pandemic Changed the Private Equity Investment Strategies?

The tremendous impact of COVID’19 has left the PE firms contemplating on the investment patterns. In fact, there are two important factors they ponder upon; salvage the affected investments and look for new emerging companies who can stay ahead in this tide. Of course, the new bets are promising these days, while the existing companies are looking for more investment. The strategies again are dug deep and watched for to decide in such situations.

Factors Considered While Investing in Post-Pandemic Market

One must realize that the pandemic is more complex in its disruptions compared to any disaster that had happened in the past. It not only has the first order difficulty, but the growing difficulty is also making the investors jittery. NYPPEX has done immense research on the aspects to consider while investing on any company in future.

Consumer Behavior: While the Liquidity For Private Equity Funds is readily available for the investors, the firms other than the High Net Worth individuals are persisting the PE firms to research on consumer behaviour. This determines the major part of the business and the PE firms are said to invest in those companies that have a greater impact on the customers even in this situation. The trend that is set now shall go on for the next 4 to 5 years, says experts.

Near term Vs Long Term: This is one factor that has started having an impact on the investments. Mostly, the North American investors are planning for a near term investment against the long term. This has made the PE firms spring into action. Majorly because there is an idea of closing down most of the investments in the longer run. PE firms are persuading the investors for a short term gain which the companies are ready to accept as well.

Measures were taken To Increase Investments

Firstly, the PE firms are looking to stabilize the existing portfolios and NYPPEX Private Markets stand tall on the same. The new investment opportunities are made for the investors are proving to give good results too. At the same time, there are investing companies who are selectively making investments in the new ventures too. But, again for the short term gains.

Focus on investing in health care industries have raised too. At the same time, the competition among the health care firms growing huge and this requires careful analysis of the companies and investments on the same. Of course, the PE firms are right on target in doing so.

While other firms are looked at as a near term gain, the health care industries are given a long term perspective. This is solely due to the pandemic effect and the markets predict the onslaught of this for at least 5 to 7 years.

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