How are PE Firms Gearing Up for a Potential Recession?
Private equity is one such sector that has endured the adversities of the COVID-led economic downturn quite well, compared to any other industry. Since the great recession of 2008, private equity in the US, had been on an alert for facing a situation just like this. Remember, that the year previous to 2020 had been highly successful for private equity wherein, it raked in $800 billion in varied deals. It’s literally sitting on a huge pile of dry powder. As per a recent Statista survey, financial services sector, and especially, private equity, had been found among the least-affected in terms of bearing business loss and facing the heat of the corona-led crisis. While, the worst-affected business domains were the manufacturing, and travel. Preparation Measures Enforced by the PE Firms Against Economic Slowdown Cautious Selection of Industries to Invest Into PE firms, in the times of the corona pandemic, have started refocusing on non-cyclical industries that are less vulnerable to any