COVID-19 has had a significant impact on global markets, and sponsors are being understandably cautious about how they look to deploy their capital.
But every crisis also presents opportunities.
Private investments in public equity (PIPEs) have not typically seen the volumes of activity in the UK as they have done in the US, largely because of the regulatory challenges associated with them in the UK.
In this briefing, private equity transactions partner Kiran Sharma and associate Tarun Patel consider a change in the attitude of regulators and recent deal activity, which suggests that this trend could be about to change.
Whilst the COVID-19 global pandemic (and the widely predicted economic downturn to follow) will inevitably require investors to be more creative in sourcing investments, there are some areas – such as minority investments in public companies at discounted values – which could provide a more readily available form of investment than has historically been the case. Recent developments in the UK public markets show encouraging signs for UK PIPE deals during the pandemic period.