Our member, Mazars, has published a survey of the change in investor behaviour in the institutional financial market caused by the Covid-19 pandemic. The survey, conducted in December 2020, analyzes the private equity and private debt sectors primarily in Europe, Asia, North America and South America. 70% of respondents had a fund size of up to £200 million.
The most interesting findings:
- respondents expect a much more modest decline in revenue over the next 12 months than originally expected
- 91% of respondents say they are "very open to business" and looking for new opportunities
- 40% of respondents expect a decline in income at only 0% -10%
- approximately 70% of respondents say they perceive more and more problematic opportunities
- 51% of respondents expect a postponement of the exit strategy in the next 6-12 months and later
Most investors still expect the "U" -shaped economic recovery but they are increasingly expecting a "V" -shaped recovery. The growing optimism is probably the result of the launch of vaccination in the first quarter of 2021, along with government measures to support businesses. The positive outlook for economic recovery is also influenced by governments, which according to the survey responded well.