Gen II Fund Services, a global private equity fund administrator, has conducted a survey on how COVID-19 is affecting private equity portfolio investments.
Throughout the month of April, Gen II surveyed more than 150 private equity investors that are principally invested in energy/infrastructure, buy-out, real estate, credit and funds of funds.
The findings show approximately 80 percent of private equity sponsors believe there could be up to a 25 percent reduction in the value of portfolio investments in their first quarter valuations. The survey also shows there is still a high degree of uncertainty regarding the long-term effects of COVID-19 on investments and, as a result, traditional methodologies for valuing portfolio investments are less reliable. Approximately 70 percent of respondents, however, still believe the effects of COVID-19 will not impact their fund economics.
“The survey gives our clients important insights into how private equity sponsors ar
