LISTEN: Private equity in a downturn – the LP view

How will the next downturn affect private equity? Hamilton Lane's Jim Strang discusses the risks investors face.

What does a downturn look like for a private equity investor? The risk is not that a firm loses assets, but that it ends up holding them for a long time, says Jim Strang, managing director and head of EMEA for Hamilton Lane.

While the amount of leverage being applied to portfolio companies looks similar to 2007, “the nature of the lending relationships has changed and covenants are not what they used to be”, says Strang.

Listen to Strang reacting to comments from operating partners at Hg Capital and Partners Group on whether the asset class of private equity is prepared for the next downturn and how it might play out for fund managers and their investors.

Watch the video where Hg Capital, Partners Group, BDC and KPMG discuss lessons from the global financial crisis.