Private Equity

Private equity funds face 10% hit to returns from coronavirus

Simulations for 2020 and 2021 also forecast liquidity stress in the industry

The coronavirus outbreak is expected to cut down private equity’s long-term return multiples by 10%, according to a new study by investment analytics company Cepres.

The prediction - based on the multiple on invested capital - comes as the industry is forced to asses the long-term impact of the crisis, which has severely disrupted supply chains, on its portfolio companies.

WSJ Logo
U.S.’s Biggest Asian Allies Ready Last-Ditch Trade Appeal to TrumpExternal link

U.S.’s Biggest Asian Allies Ready Last-Ditch Trade Appeal to Trump