The impact of coronavirus on the UK private equity market

The UK private equity mid-market rallies post crisis to support SMEs.

As with many sectors, coronavirus is having significant and at times, surprising repercussions in financial markets.

In May, RSM conducted a survey of 151 private equity (PE) professionals representing 84 different PE funds active in the UK mid and lower-mid market to enhance understanding of sentiment in the UK PE market. The results showed that PE firms are determined to continue investing through 2020 – both to support existing investments that are impacted and/or able to make acquisitions, and to make new investments in UK SMEs.

This should come as welcome news to companies that anticipate having to raise funding this year. It is also a reassuring note of support for companies that are already PE backed; that their investors intend to support them through near-term trading difficulties.

The report below details how PE firms have worked to support their portfolio companies, how they expect to resume deal making and the challenges they envisage when investing.

If you would like to get in touch, please contact Charlie Jolly.