COVID-19 has halted the start of a promising new decade for private equity. However – the private equity market could still find itself in a strong position throughout the second half of the decade.

According to Natasha Head, Business Development Manager at Maitland, post pandemic, private equity markets can expect a shift in private equity operational behaviours. While there was a bright path ahead, focusing on: operating models ESG, diversity and growth of secondary markets to bring liquidity into private equity, there a new behaviour trends that could emerge from lockdown.

Some these include:

General partners (GPs) more nurturing to their portfolio companies – As the crisis has encouraged stronger communications between GPs and portfolio companies, GPs will likely now have a deeper understanding which should encourage effective communication going forward

A change in perspective for limited partners (LPs) – LPs have are focusing on how GPs are responding to the pandemic and helping portfolio companies stabilise. They are also opening up communications with each other, examining if there are ways the can collaborate

Enhanced Business Continuity Plan (BCP) – Covid-19 has highlighted their importance, so BCPs should come out stronger from the pandemic and encourage more rigour and consistent testing in future.

Greater focus on ESG – This will become more integral to the investment process as GPs look to adapt to chance, stay resilient and proactively support their portfolio companies