Ten Predictions for How COVID-19 Will Transform Private Equity

Ten Predictions for How COVID-19 Will Transform Private Equity

Managers will increasingly incorporate toehold strategies into existing funds or launch dedicated toehold funds.. The big advantage of toehold funds and private equity is a longer-term value focus than the stock market.. Overall, the number of take privates will rise sharply and the world's increasingly index-focused stock markets will shrink further.. Since the early days of private equity in the 1960s, limited partner agreements have included clauses permitting removal of fund managers.. Expansion into private equity will become a strategic priority for traditional asset managers.. The hands-on control practiced by private equity funds is the only investment style capable of producing returns that significantly outperform public equities.. Watch for the push into private equity by traditional asset managers to accelerate with a wave of acquisitions of alternative investment managers.. Niche funds will become the alpha that investors add on to the beta provided by private equity mega funds.. Source: Triago - In the interest of transparency, this is a private equity fund advisory I founded in 1992.. In 2007 I created Mantra, an investment company focused on listed private equity funds and non-traditional private equity funds..