The Impact of the COVID-19 on Private Equity

Abstract

The COVID-19 are disruptive events that have profound consequences for the global economy. Based on this starting point, this paper aims to present an analysis of the economic impact of the COVID-19 on the private equity (PE) firms and the industry and discuss what adjustments they have adopted to respond to the crisis actively. The literature reference in this paper draws from the latest research and provides a wealth of ideas for the economic impact of the pandemic. Our paper suggests that the epidemic has greatly changed financing and due diligence, which helps the future development of PE institutions. In addition, the epidemic has also stimulated the development of some investable market segments, such as healthcare and online service. Therefore, this paper may provide a wealth of ideas for further investigations on the long-term economic impact of the pandemic and the adjustment system of PE firms formed by the risk.