Deal value (total value of private equity investments) fell 26% year on year and contracted 16% versus the previous five-year average. Many general partners discovered in the midst of the pandemic that their portfolios were not sufficiently prepared to withstand and recover from sudden shocks. Bain & Company research shows more than 60% of general partners investing in the Asia-Pacific say they are willing to invest at least 5% of a portfolio company’s short-term profit to build long-term resilience. Close to one-third say their portfolio companies are still in the experimental or even earlier stages of building resilience capabilities into their strategy and operations. Asia-Pacific general partners cite three areas of portfolio risk that they worry about most: competitive position, balance-sheet risk and organisational agility.

Source: The Edge Markets July 17, 2021 03:33 UTC