NextWave Private Equity8 Juni 2020

How covid is transforming the PE operating model

Tim Dutterer, EY-Parthenon Head of Private Equity, and Greg Schooley, EY US Value Creation Leader, discuss how COVID-19 is transforming operating models across the PE portfolio and beyond.

Visit ey.com to read our latest private equity perspectives.

After the economy recovered from the Great Financial Crisis of 2008, economic activity and growth were steady and predictable. As a result, private equity-owned companies optimized their operating models for efficiency, anticipating the next economic cycle would a more modest recession. No one, publicly traded corporates or PE-owned companies, was prepared for the sudden and complete secession of economic activity caused by COVID.

However, PE investors reacted very quickly, understanding the severity of the crisis and mobilizing to increase liquidity across the portfolio. While a few sectors were spared from the sudden economic collapse, a wide spectrum of both impacts and actions can be observed across the vast majority of the US economy.

We believe that the COVID-induced economic collapse will greatly accelerate several ongoing trends:

Global supply chains will fragment as companies look for more resiliency
Continued reconsideration of extent of reliance on China compared to lower-cost and lower-profile countries
Automation will be more widely deployed in a range of activities and sub-functions
Back-office functions will be increasingly outsourced
The value of office real estate will diminish due to large-scale adoption of remote ways of working
Assessing the impact "black swan" events will become the norm in scenario planning

Det här avsnittet är hämtat från ett öppet RSS-flöde och publiceras inte av Podme. Det kan innehålla reklam.

Avsnitt(82)

PE Pulse: key takeaways from Q1 2026

Private equity started 2026 with strong momentum, but fresh market volatility shifted dynamics toward greater selectivity. Investors are now focusing on high-quality, well-structured deals, particular...

30 Apr 7min

PE Pulse: key takeaways from Q4 2025

Private equity entered 2026 with renewed momentum following a strong rebound in 2025, marked by a 57% rise in deal value and a significant recovery in exits. Strategic buyers and secondaries helped un...

4 Feb 8min

PE Pulse: key takeaways from Q3 2025

In Q3 2025, private equity activity surged, achieving a record US$310b in deal value as firms capitalized on narrowing valuation gaps and renewed market confidence. With 156 deals announced, including...

23 Okt 20258min

PE Pulse: key takeaways from Q2 2025

In the first half of 2025, private equity exits reached their highest levels in three years. Corporate acquirers became active buyers, and firms showed increased flexibility on valuations to facilitat...

30 Juli 20257min

PE Pulse: key takeaways from Q1 2025

In Q1 2025, private equity firms saw a 45% rise in deal volume compared to the previous year. However, rising trade tensions are creating caution among investors. Many firms may limit capital deployme...

1 Maj 20257min

Talent's role as a strategic differentiator

Matt Breitfelder, Partner, and Global Head of Human Capital at Apollo in conversation with Bridget Walsh, EY Global Head of Private Equity. In this episode Matt shares his insights about the role of t...

4 Mars 202515min

Differentiated Opportunities for Special Situations Investing

Angelo Rufino, Partner and Head of Special Situations in North America and Head of Corporate Special Situations in Europe for Bain Capital, joins Bridget Walsh, EY Global Head of Private Equity. In th...

13 Feb 202517min

PE Pulse: key takeaways from Q4 2024

Private equity enters 2025 with strong expectations amid favorable market conditions. In 2024, PE firms announced US$565b in deals, a 25% increase in value and 20% in volume from the previous year. Co...

28 Jan 20258min