While COVID-19 halted much of deal activity across private equity firms, the aftermath of the pandemic saw a spike in investments across portfolio companies. Although experts assumed the outbreak would result in a strong focus on cost-cutting measures and organizational restructuring, the current trend across the private equity industry is to fund value creation efforts, such as human capital and digitization.
Private equity firms are faced with the challenge of either employing a wait-and-see approach in the event of a second COVID-19 wave or investing existing cash reserves/dry powder in potential opportunities. As a result of ongoing uncertainty, current investment trends include betting on stable companies projected to sustain long-term growth and companies focused on digital transformation.
Cedar consultants hold extensive experience in advising multinational private equity outfits with their investment decisions, particularly in challenging or uncertain circumstances, ensuring we are well-equipped to help you navigate new environments.