PE investment during COVID-19: opportunity for some, adverse effects for most

While the ramifications of COVID-19 created opportunities for investments in some specialties, most will be adversely affected, according to a white paper published by Provident Healthcare Partners.

What you should know:

1. COVID-19 has delayed most closing and sale processes, with many private equity firms pausing new investment to repurpose attention, capital and resources toward their existing portfolios.

2. Financial lenders have paused new commitments as they wait for more accurate valuation strategies. Firms like Webster Equity Partners, which recently closed a deal with Memphis, Tenn.-based Gastro One, had to alter deal structure because of the inability to obtain third-party debt financing. Webster opted to use a seller’s note to make up the difference, which Provident believes will become more common.

To access the full article, click on the following link: PE investment during COVID-19: opportunity for some, adverse effects for most

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