The impact of Covid-19 has begun to weigh on private equity
as the buyside and the sellside adapt to their new
In part, this has meant that deal terms and conditions are
changing. There is a case for new covenants to be used when
signing deals and making acquisitions – considering
the new risks that they carry.
"Many new private equity deals have gone on hold or
haven’t started yet. On the buyside, people are
hesitant, and don’t want to go to their investment
committees," said Clifford Chance partner Anselm Raddatz.
"People don’t know how to price. Firms are waiting
for stability and until they know how this will pan out for
different industries. On the sellside it’s still
relatively calm – though they could be waiting for a
couple of months."
Concerns have revolved around how new deals will be
undertaken as well as how to...