Ten Predictions for How COVID-19 Will Transform Private Equity

The activism inherent in private equity’s investment-for-control thesis makes it particularly supple when it comes to adapting to crisis situations like that brought on by today’s COVID-19 pandemic. Optimism concerning private equity’s ability (and incentive) to collectively roll up its sleeves and transform challenges created by this crisis into opportunity – often through creative destruction – lie at the heart of these predictions. As stock markets retract and focus increasingly on large-cap index investing, private equity should grow – fueled by spin-offs, strong-arm tactics, the rise of offbeat strategies and remote dealmaking and fundraising.