Dry Powder: The Private Equity Podcast
It’s all too tempting to ignore deal flow while we’re all sheltering at home and watching the global economy come to a shuddering halt, but our guest on today’s episode of Dry Powder argues that now is actually the ideal time to rethink how you source your deals.
While PE firms should certainly start triaging their existing portfolio, it’s just as critical to look ahead, argues Bain & Company Partner Graham Elton, chairman of the firm’s Europe, Middle East and Africa Private Equity business.
“You've got to both act now but also plan now,” Graham says. “Which areas do you want to be investing in at the back end of this year, going into next year? What are the investment theses around those?”
I invited Graham on the show to talk about how deal sourcing works in the time of Covid-19. We discussed where to find deals that may be intrinsically undervalued; how to triage through credit markets, equity markets and other areas of the balance sheet; and how to balance the trade-offs between short-term and long-term benefits.
“The opportunities immediately after a crisis can come and go quite quickly,” Graham says, “and staying out of the water too long isn't necessarily a good thing to do.” Listen to how leading firms are getting their feet wet on today’s episode of Dry Powder.
The Private Equity Podcast
In our podcast series, Bain's Hugh MacArthur interviews leading experts on the trends and opportunities that will redefine the private equity industry.
Catch new episodes by subscribing to Dry Powder on Apple Podcasts, Google Podcasts, Spotify or wherever you may listen.
Coronavirus
The global Covid-19 pandemic has extracted a terrible human toll and spurred sweeping changes in the world economy. Across industries, executives have begun reassessing their strategies and repositioning their companies to thrive now and in the world beyond coronavirus.
First published in aprile 2020