‘Coronavirus to Hit Deals and Portfolio Companies, Advisors Say’

The spread of the coronavirus is going to affect many private equity deals as buyout groups turn their focus on keeping existing portfolio companies alive. Johnny Colville, Managing Director in Houlihan Lokey’s Financial Sponsors Group, told Private Equity News: “While no one is able to predict the shape of the next few weeks with any credibility, short-term focus will be de facto on value preservation within existing portfolios, including measures such as fully drawing down of RCFs to mitigate any potential liquidity squeeze. There will undoubtedly be opportunities to deploy equity across the whole capital structure, even if ‘traditional’ processes are paused.” Read the article here.