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Private Equity

Proventis Partners-IMAA flash survey: “Private equity as an immediately available vaccine against economic crisis infections”

Munich/New York, March 27, 2020. Half of all private equity companies surveyed in the DACH region appear to be crisis-resistant and want to continue investing, even though the majority of them expect an economic downturn. Two thirds of private equity funds only expect a short-term decline in M&A processes. These are the main results of the private equity flash survey entitled “Private equity reactions to SARS-CoV-2″.

A total of 400 small and mid-cap private equity investors (PEs) from the DACH region were surveyed. Of the 80 answers, half of the companies had an active investment volume of up to 100 million euros, around a third over 100 to 500 million Euros and a fifth of the respondents for more than 500 million euros. Half of the responding private equity companies are closed-end funds, the other half are evergreen funds.

According to private equity investors, the hardest hit sectors include vehicle construction and accessories, mechanical and plant engineering, transport, logistics and tourism, as well as textiles and clothing. According to the private equity companies surveyed, the industries that benefit most from the corona pandemic are the pharmaceutical industry, the food and beverage sectors, telecommunications as well as retail and e-commerce.

“Private equity investors have deep pockets and staying power. In 2019 alone, over 5 billion euros of fresh capital was raised by funds in Germany (almost 100 billion euros in Europe as a whole), plus funds from a large number of family offices,” explains Jan Pörschmann, Managing Partner at Proventis Partners in Munich. “The global dry powder of PE funds is over USD 2 trillion. This means that prudent, long-term private equity investors can make a significant contribution to stabilizing the economy in this situation. “I am all the more pleased that over half of the funds we surveyed want to continue to invest actively and are therefore an immediately available vaccine against economic crisis infections.”

“The results also show how differently the funds seem to be dealing with the current situation,” says Prof. Christopher Kummer, President of the Institute for Mergers, Acquisitions and Alliances. “There will certainly be good deal flow opportunities for individual funds. “It will also be an opportunity to remind the broader public of the useful role of private equity.”

The complete flash survey from Proventis Partners and IMAA “Private Equity Reactions to SARS-CoV-2” can be found hier.

About the Institute for Mergers, Acquisitions and Alliances (IMAA)

The Institute for Mergers, Acquisitions and Alliances (IMAA) is a nonprofit mergers and acquisitions think tank that conducts research and offers educational certificate programs, workshops, resources and M&A expertise. Founded in 2004, the Institute is comprised of faculty and trainers from around the world who contribute to research, resource content, and programs. As a leading academic institution for M&A and a global institute, the programs offer a wealth of experience and know-how and are the most comprehensive and complete educational offering in the world. The M&A certificate programs are the only internationally widely recognized training programs and their content is relevant to both developed and emerging markets. IMAA participants and institute members represent over 70 countries, ranging from students and young professionals to board-level executives and government officials.

About Proventis Partners

Proventis Partners is a partner-led M&A consultancy whose clients are mostly corporations, medium-sized family businesses and private equity funds. With 30 M&A advisors, Proventis Partners is one of the largest independent M&A advisors in the DACH region, with locations in Hamburg, Cologne, Munich and Zurich. The partners’ industry focus includes Industrials, Business Services, Consumer & Retail, TMT, Healthcare and Energy, in which the partners can look back on a total of over 300 successfully completed transactions with a cumulative transaction value of 10 billion euros. Through exclusive membership of the Mergers Alliance – the leading international partnership of M&A specialists who have realized over 800 transactions worldwide since 2010 with a total value of around $40 billion – Proventis Partners offers market coverage in the world’s leading economic centers. Through the 20 members of the Mergers Alliance, with over 200 M&A professionals in 40 offices, Proventis Partners has direct access to local decision-makers in Europe, North America, Latin America, Asia and Africa for mandates.