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PitchBook Analyst Note: COVID-19, the Sell-Everything Trade, and the Impact on Private Markets

Q1 2020

PitchBook Analyst Note: COVID-19, the Sell-Everything Trade, and the Impact on Private Markets

March 16, 2020

PitchBook Analyst Note: COVID-19, the Sell-Everything Trade, and the Impact on Private Markets
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This analyst note assesses what’s in store for PE and VC firms in the wake of recent market volatility and an impending economic slowdown due to the coronavirus.

Dissecting historical performance and fundraising data, our analysts highlight how private markets have fared in past downturns and discuss the key differences in the newest bear market.

The report also discusses how emerging technologies and various startups will help companies and consumers weather the COVID-19 pandemic and its subsequent effects.
 
  • While better capitalized than ever, private markets aren't immune.
 
  • As has been evident for weeks, the global pandemic and resulting economic environment will test virtually every branch of global government and business.
 
  • We’ve experienced a set of capital market events that harken back to prior crises—and reminiscent responses from central banks.
 
  • While the recent—and what we expect to be ongoing—market turbulence has plunged equity prices across all sectors, we think that many large-cap businesses are standing on solid footing to withstand some sort of economic shock.