Why PE’s role in our economy and society is more important than ever

In this episode of the NextWave Private Equity Podcast, Andres Saenz, EY Global Private Equity Leader, shares his observations regarding the evolution of private equity and the role it will play in a post-COVID world.

The initial impact of COVID-19 on the private equity complex echoed what was seen in businesses across all sectors, with workplace safety, remote ways of working, investor and employee communication, liquidity and supply chain being top of mind to triage. In addition, deal markets (with the exception of credit funds) practically shut down overnight.

PE firms are well-positioned for an economic downturn and have been preparing for this type of event in recent years. With over US$750b in dry powder in what is now a favorable buyer’s market, PE is looking to be as active as possible, as soon as possible.

A few impediments to deals have included the inability to travel, a lack of available financing, and valuation disconnect between buyers and sellers in pricing assets. Despite these challenges, firms have become creative around investments in public equities as well as credit opportunities. Barring a resurgence of COVID-19, we anticipate buyers and sellers to converge sooner on valuations and in addition to pursuing opportunities in corporate carve-outs.

PE-backed companies have a real advantage in this volatile environment: not only do funds have greater access to capital, they also have a mix of operating resources, expertise and advisor relationships ready to deploy across the portfolio.

As PE navigates through COVID-19 and prepares for a momentous shift, a few trends will accelerate, including:

  • Investing up and down the capital stack
  • Defining digital transformation and enablement 
  • Refining their value proposition to attract incoming talent
  • Hiring talent with the right skill sets 
  • Elevation of D&I and a broader focus on social responsibility
  • Widening the aperture and representation of stakeholders
  • Pivoting strategy towards long-term value

For your convenience, full text transcript of this podcast is also available. Read the transcript

Presenters

Andres Saenz
EY Global Vice Chair – Industry Markets
Winna Brown
EY Americas Financial Accounting Advisory Services Private Equity Leader

Podcast

Episode 12

Duration 23m 00s

In this series

series overview
(Event List - Manual)

Why PE’s role in our economy and society is more important than ever

In this episode, our speakers explore the evolution of private equity and the role it will play in a post-COVID world.
Podcast

Episode 12

Duration
23m 00s

Presenters

Andres Saenz

EY Global Vice Chair – Industry Markets

Winna Brown

EY Americas Financial Accounting Advisory Services Private Equity Leader

How COVID-19 is transforming the PE operating model

In this episode, our speakers describe how COVID-19 is transforming operating models across the PE portfolio and beyond.
Podcast

Episode 11

Duration
29m 00s

Presenters

Tim Dutterer

EY-Parthenon Americas Private Equity Sector Leader

Why a post-pandemic supply chain will prioritize resilience over efficiency

In this episode, our speakers explain why a post-pandemic supply chain will prioritize resilience over efficiency.
Podcast

Episode 10

Duration
27m 00s

Presenters

Jeff Schlosser

Principal, Strategy and Transactions, Ernst & Young LLP

Winna Brown

EY Americas Financial Accounting Advisory Services Private Equity Leader

Why “cash culture” is a critical lever in today’s PE climate

In this episode, our speakers explore why freeing cash from working capital can allow PE to prolong sustainability, realize value sooner and invest earlier.
Podcast

Episode 09

Duration
27m 00s

Presenters

Sven R. Braun

EY-Parthenon Principal, Ernst & Young LLP

Nick Boaro

EY-Parthenon Partner, Ernst & Young LLP

How PE can manage COVID-19 tax implications in the US and Europe

In this episode, our speakers help PE funds and portfolio companies understand and manage the tax implications of recent coronavirus stimulus packages.
Podcast

Episode 08

Duration
25m 07s

Presenters

Winna Brown

EY Americas Financial Accounting Advisory Services Private Equity Leader

How to navigate a remote close during COVID-19

In this episode, our speakers discuss how to manage a remote close in today’s extremely volatile financial and regulatory environment.
Podcast

Episode 07

Duration
29m 00s

Presenters

Lukas Hoebarth

Principal, Mergers and Acquisitions, Ernst & Young LLP US

Winna Brown

EY Americas Financial Accounting Advisory Services Private Equity Leader

Why the CFO is becoming private equity’s quarterback

In this episode, our speakers explore the evolving role of the private equity CFO.
Podcast

Episode 06

Duration
17m 15s

Presenters

Mike Lo Parrino

EY Americas Financial Services Organization Private Equity Leader

Winna Brown

EY Americas Financial Accounting Advisory Services Private Equity Leader

What 2020 and beyond looks like for global private equity

In this episode, our speakers explore the outlook of private equity and its key focus areas in 2020 and beyond.
Podcast

Episode 05

Duration
18m 26s

Presenters

Andres Saenz

EY Global Vice Chair – Industry Markets

Winna Brown

EY Americas Financial Accounting Advisory Services Private Equity Leader