Pandemic’s impact on fund administration

  • The pandemic caused difficulty for first-time funds, as few investors looked to sponsor such funds. In a survey by Preqin, 82% of investors surveyed said travel restrictions and social distancing affected their ability to make new investments because they viewed face-to-face meetings as either fairly important or essential to decision-making.
  • Lack of recent transaction data to support valuations. The limited availability of recent transaction data makes it harder to infer valuations of portfolio companies. Pre-pandemic transactions may not be useful in the current environment because transaction multiples are typically based on historical financial metrics.

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Acuity Knowledge Partners

Acuity Knowledge Partners

We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/