Private Debt Intelligence – 5/18/2020

Fund Managers Response to COVID-19

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Although fundraising is slowing in the wake of the economic fallout from COVID-19, most alternatives fund managers appear to be staying the course. From a survey conducted by Preqin to fund managers, three-quarters said that they do not plan to change their investment strategy for any active funds as a result of the outbreak. What’s more, a significant 90% of managers said they do not plan to change their valuation method for portfolio companies, either.

Thirty-eight percent of surveyed fund managers believe that COVID-19 will have a “slight negative impact” on the alternatives industry. But there are also significant differences in outlook: an equal share (11%) of respondents believe that COVID-19 will have either a “significant positive impact” or a “significant negative impact.” Altogether, it suggests that fund managers do not yet have enough clarity on the long-term impact of the virus on the alternative assets industry.

Contact: Maria Zapata
maria.zapata@preqin.com