Report shows private equity landscape is likely to change

An overwhelming majority (92%) of private equity professionals surveyed by Intertrust expect to see a rise in the volume of distressed fund transaction activity over the next 12 months due to the impact of Covid-19. Yet almost half (46%) believe that mismatches in valuation expectations between buyers and sellers will restrict deal flow.

The Channel Islands are specialist centres for servicing PE and the islands’ financial services firms work with some of the world’s biggest PE managers.

Intertrust’s managing director in Guernsey, Marie McNeela, said that the islands’ experience in the funds space will ensure PE remains an active area for practitioners.

‘There’s no doubt the landscape has changed and our results show that PE professionals are cognisant of that,’ she said. ‘But the results also demonstrate confidence that capital will be invested and distressed strategies are likely to be a key area of focus for managers.

‘Both Guernsey and Jersey have huge experience in end-to-end fund administration and that proven quality, coupled with continued growth of the Channel Island funds industry, is likely to result in a continued growth of our PE business. Combine this growth with Intertrust’s emphasis on technological solutions and you have an offering that meets exactly the criteria that our report tells us PE professionals are looking for.’

Intertrust, a global provider of tech-enabled fund and corporate solutions, interviewed 142 private equity professionals across Europe, North America and Asia to identify the risks and opportunities facing the industry in light of the pandemic.