eFront: What private equity funds can expect in terms of performance, capital calls and distributions in 2020 and beyond

eFront: What private equity funds can expect in terms of performance, capital calls and distributions in 2020 and beyond

May 5, 2020

Private Equity
Onderzoek

eFront, a financial software and solutions provider dedicated to Alternative Investments, has published a retrospective analysis of private equity performance, capital calls and distributions over the past 20 years, offering insight into the likely impact on the asset class of the downturn caused by the Covid-19 pandemic.

Key findings
  • NAVs under-react to the evolution of market indexes of listed assets, both in terms of downside and during the subsequent recovery periods
  • Capital calls are expected to fall in the short term but should pick up rapidly throughout the year as cash-rich private equity funds begin bargain hunting.
  • Funds of vintage years 2016-2018 are likely to be most severely impacted by the Covid-19 pandemic, suffering deep NAV reductions in 2020.
  • Funds of vintage years 2019-21, conversely, should deliver strong returns, benefiting from improved market dynamics and ample investment opportunities.