LP’s investment concerns and plans during COVID: Survey, Results and Discussion

This presentation and panel discussion is a snapshot of what is happening at this specific point in this evolving crisis, focused on its impact on the closed-end fund alternative investment market –specifically for funds and co-investments targeting private equity, performing debt, distressed debt, real estate, infrastructure and natural resources.

There are several striking results or issues that pop-up in the survey that the panel will be discussing:

  • Current Investment Status – Where do LPs stand right now and how active are they?
  • Due Diligence Policies and Practices and Differences Between Europe and North America – Due Diligences processes have certainly been affected, but the details are strikingly different depending upon where your office or headquarters is located.
  • Current Interest in Distressed – There has been a significant increase in interest in distressed, but underneath the headline interest in specific sub-sectors is spread out.
  • Liquidity Issues – LPs are not very worried about their own liquidity right now, but a number have fears about other LPs.
  • How Long Will Major Disruptions Go On? – Since our first survey on the topic, LPs forecast of how long things we will be disrupted has stretched out, but the majority seem to have given up definitive forecasts.
  • Investors’ Greatest Fears
    • That the pandemic will progress through a number of local and global waves, resulting in a series lo lockdowns and reopenings that will be disruptive to the economy over a long period of time
    • That the large amount of crisis aid provided by governments are distorting market signals and the overhanging debt may be storing up long-term problems

This content is available to IMDDA members. To join please click here.

If you’re already a member, log in now:

include with Membership

FREE