It’s going to be fine!: Further to yesterday’s email (in which I reiterated that most people aren’t worried about a flood of LP defaults), sister title Private Equity International conducted a survey of 77 institutional investors, and only one in five said the current crisis will result in them decreasing their commitments in 2020 compared to last year (as of the dates 25-27 March). Only 5 percent said the denominator effect would cause them to be sellers in the secondaries market.
There’s more in Isobel Markham’s write-up that will interest you, so read on. We’ll have more from this survey in coming days, but the picture this portion of the survey paints indicates institutional LPs are pretty sanguine and taking this in stride, which is what our reporting so far largely tells us.
SEC exams: A lot of people were wondering what was going to happen with OCIE exams as the pandemic intensified. One law firm advised its clients recently that the Securities and Exchange Commission had already included questions regarding sponsor responses to covid-19 in both new and ongoing exams. Sister title Regulatory Compliance Watch obtained a copy of an OCIE sweep exam letter prompted by the virus, so here’s what you need to know.
Bain & Co: Connor Hussey brings us this look at Bain & Co’s guidance to CFOs dealing with the fallout from the pandemic. We’ve written a lot about how the role of CFOs, and their finance teams, have evolved from pure back office experts to strategic partners, but Bain & Co says this crisis is bound to test the limits of that progress by putting strain on the systems supporting that evolution. The firm gives some step-by-step guidance, with an emphasis on identifying and mending inefficient or broken processes to create value when things settle down.
Checklist: Along not dissimilar lines, mid-market human capital advisors 29Bison have this ‘Human Capital Checklist’ for private equity portfolio companies. These are uncharted waters for many PE firms and their portfolio companies, and the company provides some guidance on how to lead employees through it.
Email prepared by Graham Bippart