NEWSLETTER

PEWlive CFO-COO

This week Private Equity Wire hosted its timely PrivateDebtLive Summit, a virtual event on the state of the dynamic developments within the private debt markets space in today’s fast-changing environment. As the world continues to adjust to the impact of the coronavirus pandemic, private companies are likely to need more support than ever.

The lively two-day event explored key themes including what 2021 might have in store for global private debt players, where the opportunities will present themselves, what the regulatory and risk management considerations that one needs to be aware of are, and whether Covid-19 has finally proven the resilience of the asset class. The discussion also centered around whether fundraising will re-ignite following the height of the pandemic.

Also this week, PitchBook released their new Q1 2021 European Private Equity Breakdown. The report, published on Tuesday, found that European private equity deals and exits surged in the first quarter of the year to mark new quarterly records – picking up the slack from the previous year, as predicted by PitchBook EMEA private equity analyst and author of the report Dominick Mondesir, who said back in January that 2021 would be a record year for European deal activity.

The report indeed revealed that European private equity deal activity value and volume increased to quarterly records spurred by increasing middle-market and micro-cap activity, respectively. Many of the strong private equity tailwinds we saw in the third and fourth quarter of 2020 have either been maintained or extended, including liquid credit markets, historically high public market valuations, and continued low interest rates coupled with public market volatility.

Our guest on this week’s Private Equity Wire Tuesday podcast was Sunaina Sinha, London-based managing partner at Cebile Capital. In this interview Sunaina discusses a recent survey, conducted by Cebile, of 100 global LPs who gave their view on changes that took place in 2020 and their outlook for 2021.

Some of the survey’s findings included the way in which LPs have shifted their modus operandi in 2020, who the winners are in terms of allocation flow during the pandemic, and the fact that 51 per cent of LPs expect to increase commitments to private equity in 2021.

The UK has a well-documented and rich history of scientific discovery and research – of the top 100 prescription medicines used around the world today, around 25 per cent were discovered in the UK, while it also has recognised expertise in sectors like AI and machine learning.

Despite the UK’s obvious strengths in this area however, research & development spending lags behind many of its peers and draws attention to the opportunity to invest smarter and benefit from the economic recovery — Steve Phillips, CFO, and Somil Goyal, Investment Lead, at GovGrant, argue in their second series piece for PEWire that was published this week. Their article looks at how government support, through R&D tax credits for example, could prove to be a timely lever to help drive higher returns.   

 

Karin Wasteson
Editor, Private Equity Wire

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