From the Editors
The COVID-19 pandemic has dealt the private equity industry a slew of fundamental challenges, including the liquidity constraints of limited partners and portfolio companies, the interpretation of key contract clauses, and eligibility for pandemic-related government assistance. In addition to adapting to the current disruption, the private equity industry must look ahead to the post-pandemic world. How will due diligence need to evolve? What will the new expectations be for employee health and safety at portfolio companies?
Sponsors and investors navigating this terrain must balance business and financial considerations with the complex legal issues that invariably arise when contracts, regulations and benchmarks are applied in new and wholly unforeseen circumstances. In this issue of the Debevoise’s Private Equity Report, we have collected a variety of recent client communications from our COVID-19 Resource Center that we hope provide clarity in this uncertain time.
Debevoise is proud to have been a trusted advisor to the private equity industry for over forty years—a span that includes the moratorium on leveraged buyouts in 1990, the dot-com collapse in 2000 and the global financial crisis in 2008. We are confident that the private equity industry will demonstrate its ability to respond quickly and effectively to this current crisis, as it has in the past, and the support that firms will provide to their portfolio companies will deliver economy-wide benefits. Here at Debevoise, we will do all we can to help you meet the challenges of today, and prepare for the opportunities of tomorrow.
We hope you find these perspectives helpful in navigating the various legal and market considerations that inform private equity investing today.