Coronavirus

Joncarlo Mark, a former senior portfolio manager at CalPERS, gives his take on the current market: how LP co-investments will fare, what the opportunity set looks like and whether LPs will have to ‘walk away’ from some capital commitments.

Co-investment opportunities have dried up along with the broader deal environment, but many LPs continue to seek ways to invest alongside GPs into deals.

Foreign PE firms looking to acquire healthcare-related companies in Europe can expect another three months of FDI review added to the deal process.

An exclusive investor survey conducted by PEI reveals three quarters of LPs will not reduce their target allocations to private markets in the face of the denominator effect.

LPs will consider the amount of capital raised and deployed, and whether any investments are already underwater when granting GPs more time to raise funds during the coronavirus crisis.

All foreign transactions will be subject to FIRB review, a process that will now take six months instead of 30 days.

A number of GPs are using flush balance sheets to seed their own distressed debt funds, according to firm head Michael Rees.

The firm held the final close on Carlyle Japan Partners IV last week on around $2.4bn, more than double its 2013-vintage predecessor.

Two European LPs have already defaulted on capital calls, and more are rumoured, as LPs get hit with a one-two punch of large, often early capital calls and drying up distributions.

Although public market volatility doesn't have to weigh heavily on companies' December NAVs, GPs ignore it at their peril.