Letter from
the Editors
The first half of 2020 has, of course, been dominated by the pandemic. Public
markets have been up and down, M&A activity dramatically slowed, and
the outlook for new fundraisings is less clear than it has been for many
years. As we report in this edition of Private Equity Report’s Mid Year Review
and Outlook, sponsors have been focused on supporting the liquidity and
business requirements of portfolio companies. During the second half of the
year, we expect some innovative refinancing transactions alongside an uptick
in restructuring activity. At the same time, many dealmakers have been
creative, with take-privates and strategic investments in public companies
seeing something of a resurgence in Asia and the United States respectively.
It is not yet certain what the longer-term implications of the crisis will be,
but some are already becoming clear. The many episodes of racial violence
and injustice over the last few months are a sharp reminder to us all of
continuing racial inequalities, while the pandemic itself highlighted many
social issues that are often hidden from view. Private equity firms and their
portfolio companies have been among those in the business community
responding positively to these events. As highlighted in this edition, we
believe that this focus on business integrity will continue in the years ahead
—as policy-makers and asset-owners continue to demand more deliberate
attention to the social, environmental and governance agenda from all
quarters of the investment community.
We hope that you find the insights that follow to be helpful as we all
navigate the new terrain. To this end, we are also pleased to inform
you that Debevoise’s Private Equity Group has launched a new digital
channel—the Private Equity Report Webcast Briefing series. This is a
supplement to our quarterly Debevoise & Plimpton Private Equity Report,
now approaching its 20th year of publication. This new platform provides
timely insights into developing legal issues that impact our private equity
sponsor and portfolio company clients. We hope you join us for these
webcasts, and we encourage you to access the on-demand recordings
provided on our website.
In the meantime, we wish you and your families a safe, healthy and rapid
return to the “new normal!”