UK private equity mid-market update

Date 16 April 2020

Type Investment Banking

Over the last three weeks, private equity (PE) houses have been through detailed crisis management planning exercises with their portfolio companies and have a clear plan of action on a worst, base and best-case scenario basis.

Whilst management teams focus on the execution of these plans, attention at the PE houses is now switching to where future investment opportunities will come from. All PE houses would love to see a short, sharp V-shaped recession with the result being a one-off downward correction in valuations in the leveraged buy-out market. Unfortunately, that utopian scenario is unlikely to arise in a market that remains oversupplied in terms of both equity and debt funding and PE houses may need to be more inventive.

In our latest UK PE mid-market update, we share the top three areas where we expect investment opportunities to arise: public companies, buying debt and minority investments.