Private Equity – Recessions and Deals

by David Williams MBA - Valyrian Consultancy Limited (MD & Founder)
 
Private Equity as it’s probably recognised today started circa 1946 in the post-war US. Since its inception, Private Equity has become a global phenomenon, which has grown at an exponential rate. In 2019, UK based funds accounted for $68.4Bn of deal investment. The UK was third only to the US and China whose deals accounted for $372.06Bn and $84.07Bn respectively (Value of global private equity deals 2019, by target country).
Private Equity investment is typically predicated on a simple proposition, this being the acquisition of a business using capital funds provided by investors and or loans. Using a strategy of change, the traditional Private Equity objective is to improve performance and therefore overall business value. After a period of time (typically 5 to 6-years), the business is sold and a sale profit achieved.

In this current coronavirus time when short-term uncertainty prevails, there are busine...