Twelve months ago, PitchBook's quantitative analysts provided a playbook for what the private equity industry might face in the then-nascent COVID-19 crisis. A year on, the newest edition of our Quantitative Perspectives report revisits those predictions and considers the impact of a recession unlike any in history.
What felt like a free fall was followed by a recovery lasting just months, rather than the typical years-long struggle to return to normal. 2020's wild ride is setting up private equity for a fascinating future. Highlights from the report include:
- The unprecedented amount of fiscal and monetary stimulus that fueled the speedy recovery will have lasting impacts on financial markets.
- Far from completely disrupting private equity, the pandemic helped accelerate long-term trends and boosted resilience by driving dealmaking in tech and healthcare.
- The record amount of liquidity available to purchase private companies—more than $2.3 trillion—should provide a tailwind for PE-backed exits in 2021.