Will covid-19 halt the rise of private equity in Europe?

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The current crisis is a test of the private-equity industry’s staying power on the continent

global financial crisis we devoted all our energy to rescuing companies we already owned,” says Johannes Huth, the European boss of. This time the private-equity firm is well prepared to take advantage of economic calamity, as are many of its rivals. Four-fifths of’s staff are looking after the companies in its portfolio, which range from Acciona, a Spanish renewable-energy firm, to Upfield, a Dutch margarine-maker. The rest are nosing around for opportunities.

Not much is expected to happen until August. Companies will publish earnings figures for the second quarter, when governments’ measures to contain the virus were at their strictest, making the extent of the corporate carnage clearer. Until then’s global portfolio, for instance, sits in the hard-hit leisure and travel industries.might largely be able to weather the crisis. In a world of negligible interest rates, demand for alternative assets will continue to hold up.

 

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