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Private markets insights on COVID-19

March 31st, 2020

by Andrés Ramos, Content Marketing Specialist – eVestment Private Markets

“What will be the lasting economic impact be of this global pandemic?”  

“How does this affect 2020 fundraising?” 

“Should I still be contacting LPs?” 

Questions like these are on the minds of private markets professionals across the globe. The only certainty for most is, well, a period of uncertainty. 

Having insights into how LPs and investment consultants are thinking about this crisis and how they will react can create major opportunities for GPs while also helping inform their own responses. 

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Market Lens gives users access to these insights through its searchable database of LP and consultant presentations, quarterly documents, and update memoranda, added in real-time and often before official presentations or board meetings happen. 

Since December 2019, nearly 200 documents (and counting) that mention “COVID-19” or “coronavirus” have been added to the Market Lens platform.  

Here are some of the latest soundbites and opinions from LPs and consultants on COVID-19: 

Consultant Meketa's views on a client portfolio

March 26, 2020

“Despite the global economy’s immediate response to the COVID-19 outbreak, we believe it is unlikely that current economic conditions will persist over the medium or long term.

Given the long time horizon of private markets investing, a significant decrease in annual fund commitments is not absolutely necessary, in order for the program to reach and maintain its target allocation to private market asset classes.”

Consultant NEPC's assessment of US Private Equity

March 24, 2020

“Fundraising should slowdown, as many LPs may be facing uncertain liquidity constraints, and many face to face meetings can’t be held to complete diligence.

Opportunities: The current environment could also help us gain access to managers that are normally very capacity constrained.”

LACERA discusses the impact on their investment activity

March 23, 2020

“In turbulent times, such as in recent weeks, we draw guidance from our Investment Policy Statement (including Investment Beliefs), strategic asset allocation and asset category structure reviews. The 2020 Work Plan also informs our actions. While market events and new information may adjust our future activity, our long-term, strategic course remains intact. We will preserve an adequate cash position to pay near-term benefits and further strive to identify investment opportunities that can position the portfolio to grow in the future to support long-term liabilities. “

Real Estate specialist RCLCO's outlook on the sector

March 23, 2020

“The real estate industry will be impacted by a range of disruptions (e.g. supply chain, travel and event cancellations, spooked investors, etc.) due to the Covid-19 outbreak, but despite the uncertainty and heightened nervousness, we expect real estate fundamentals to fare better than in the 2008 Global Financial Crisis (“GFC”) due to:

  • Relatively disciplined and limited excess construction activity.
  • Relatively conservative capital structures (e.g. comparatively lower leverage) employed during the expansion.”

Colorado PERA sees potential opportunities

March 20, 2020

“Global health concerns could impact size and timing of commitments. A prolonged market correction and/or challenged portfolio company fundamentals could lead to interesting opportunities in the distressed and turnaround areas.“

Keeping up-to-date on the reactions, views and actions of both sides of the private markets is imperative as the pandemic continues. 

Get in touch today to schedule a walk-through of Market Lens to see how it can benefit your organization.

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