Private Equity Industry and Funding Instrument Analysis in the Post-Covid-19 Pandemic Era

Research Article
Open access

Private Equity Industry and Funding Instrument Analysis in the Post-Covid-19 Pandemic Era

Jiayu Yu 1*
  • 1 University of Toronto Scarborough    
  • *corresponding author atroposyu@gmail.com
Published on 10 November 2023 | https://doi.org/10.54254/2754-1169/27/20231248
AEMPS Vol.27
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-075-2
ISBN (Online): 978-1-83558-076-9

Abstract

A rising number of academic papers have analyzed the negative impacts of the COVID-19 epidemic on the financial markets. However, the thorough research of the pandemic's effects on financial markets and lifestyle changes remains relatively unexplored. Based on research and data from the world's major economies, including Europe and North America, this paper empirically analyses, forecasts, and assesses the worldwide private equity business and its prevalent financing techniques, as well as emerging financing methods. Due to the influence of the COVID-19 pandemic, the results indicate that some leveraged or stable companies have favorable medium-term prospects, but the long-term impact may be little. In addition, the pandemic has altered the way people live in certain regions and accelerated the growth of certain sectors, such as online education and artificial intelligence. The author also concludes that, despite the fact that the new finance methods may partially replace the traditional ones, their inadequacies are revealed.

Keywords:

private equity, financing instruments, COVID-19, crowdfunding, security token offering

Yu,J. (2023). Private Equity Industry and Funding Instrument Analysis in the Post-Covid-19 Pandemic Era. Advances in Economics, Management and Political Sciences,27,169-176.
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References

[1]. Saratoga Investment Corp. (n.d.). Mezzanine Debt & Financing: The complete guide. Mezzanine Debt & Financing: The Complete Guide | Saratoga Investment Corp. Retrieved August 15, 2022, from https://saratogainvestmentcorp.com/articles/mezzanine- debt/

[2]. Saratoga Investment Corp. (n.d.). Growth financing: Benefits & available options. Growth Financing: Benefits & Available Options | Saratoga Investment Corp. Retrieved August 15, 2022, from https://saratogainvestmentcorp.com/articles/growth-financing/

[3]. Garcia, L. (2021, September 20). Private-equity firms use more debt to score midmarket deals. The Wall Street Journal. Retrieved August 15, 2022, from https://www.wsj.com/articles/private-equity-firms-use-more-debt-to-score-midmarket-deals- 1163 2135601

[4]. Ziegler, V., Leung, D., Balasubramanian, A. C., Akkawi, M. F. E., Gotfrit, S., & Spina, A.C. J. (2020). Current observations of covid-19's impact on Private Fund sponsors and limited partners: Insights: Torys LLP. Torys. Retrieved from https://www.torys.com/our-latest-thinking/publications/2020/05/current-observations-of-covid-19s-impact-on-private-fund-sponsors-and-limited-partners

[5]. Remes, J., Manyika, J., Smit, S., Kohli, S., Fabius, V., Dixon-Fyle, S., & Nakaliuzhnyi, A. (2021, December 15). The consumer demand recovery and lasting effects of COVID-19. McKinsey & Company. Retrieved August 15, 2022, from https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the- consumer-dema nd-recovery-and-lasting-effects-of-covid-19

[6]. Miguel, A. B. de, Connolly, J., Edlich, A., Oxman, A., Pandit, V., Seghers, L., & Skovira, E. (2020, September 16). Private equity and the new reality of coronavirus. McKinsey & Company. Retrieved August 15, 2022, from https://www.mckinsey.com/industries/private- equity-and-principal-investors/our-insights/private- equity-and-the-new-reality-of-coronavirus

[7]. Chen, J., Vetterli, J. (2021, March 8). Global ipos hit back strongly after covid-19 crash: White& Case LLP. Retrieved from https://www.whitecase.com/insight-our-thinking/global-ipos-hit-back-strongly-after-covid-19-crash

[8]. Baig, A. S., & Chen, M. (2022). Did the COVID-19 pandemic (really) positively impact the IPO market? an analysis of information uncertainty. Finance Research Letters, 46, 102372. https://doi.org/10.1016/j.frl.2021.102372

[9]. Grabow, J. (2022, February 9). Venture Capital continues to exhibit immunity to the COVID-19 pandemic. EY. Retrieved August 13, 2022, from https://www.ey.com/en_us/growth/venture-capital-continues-to-exhibit-immunity-to-the-covid-19-pandemic

[10]. Peterson, E. R., Toland, T., & Huddart, G. (2020, May). Read @kearney: Robots vs. covid-19: How the pandemic is accelerating automation. Global Business Policy Council (GBPC). Retrieved August 13, 2022, from https://www.kearney.com/web/global-business-policy-council/article/-/insights/robots- vs-covid-1 9-how-the-pandemic-is-accelerating-automation

[11]. Zribi, S. (2022). Effects of social influence on crowdfunding performance: Implications of the COVID-19 pandemic. Humanities and Social Sciences Communications, 9(1). https://doi.org/10.1057/s41599-022-01207-3

[12]. Eckart, K. (2021, June 16). Pandemic-era crowdfunding more common, successful in affluent communities. UW News. Retrieved August 13, 2022, from https://www.washington.edu/news/2021/06/16/pandemic-era-crowdfunding-more- common-successful-in-affluent-communities/

[13]. Zhang X, Liu X, Wang X, Zhao H, Zhang W (2022) Exploring the effects of social capital on crowdfunding performance: a holistic analysis from the empirical and predictive views. Comput Hum Behav 126:1–17

[14]. Amoils, N. (2021, February 2). Security token industry in 2021. Forbes. Retrieved August 13, 2022, from https://www.forbes.com/sites/nisaamoils/2021/01/25/ security-token-industry- in-2021/?sh=261e67 3d61cb

[15]. Deloitte. (2020, October 19). Security token offerings: The next phase of financial market evolution? deloitte-cn-audit-security-token-offering-en-201009. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/audit/ deloitte-cn-audit- security-to ken-offering-en-201009.pdf

[16]. Allen, D. E. (2022). Cryptocurrencies, diversification and the covid-19 pandemic. Journal of Risk and Financial Management, 15(3), 103. https://doi.org/10.3390/jrfm15030103

Cite this article

Yu,J. (2023). Private Equity Industry and Funding Instrument Analysis in the Post-Covid-19 Pandemic Era. Advances in Economics, Management and Political Sciences,27,169-176.

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About volume

Volume title: Proceedings of the 7th International Conference on Economic Management and Green Development

ISBN：978-1-83558-075-2(Print) / 978-1-83558-076-9(Online)
Editor：Canh Thien Dang
Conference website: https://www.icemgd.org/
Conference date: 6 August 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.27
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Saratoga Investment Corp. (n.d.). Mezzanine Debt & Financing: The complete guide. Mezzanine Debt & Financing: The Complete Guide | Saratoga Investment Corp. Retrieved August 15, 2022, from https://saratogainvestmentcorp.com/articles/mezzanine- debt/

[2]. Saratoga Investment Corp. (n.d.). Growth financing: Benefits & available options. Growth Financing: Benefits & Available Options | Saratoga Investment Corp. Retrieved August 15, 2022, from https://saratogainvestmentcorp.com/articles/growth-financing/

[3]. Garcia, L. (2021, September 20). Private-equity firms use more debt to score midmarket deals. The Wall Street Journal. Retrieved August 15, 2022, from https://www.wsj.com/articles/private-equity-firms-use-more-debt-to-score-midmarket-deals- 1163 2135601

[4]. Ziegler, V., Leung, D., Balasubramanian, A. C., Akkawi, M. F. E., Gotfrit, S., & Spina, A.C. J. (2020). Current observations of covid-19's impact on Private Fund sponsors and limited partners: Insights: Torys LLP. Torys. Retrieved from https://www.torys.com/our-latest-thinking/publications/2020/05/current-observations-of-covid-19s-impact-on-private-fund-sponsors-and-limited-partners

[5]. Remes, J., Manyika, J., Smit, S., Kohli, S., Fabius, V., Dixon-Fyle, S., & Nakaliuzhnyi, A. (2021, December 15). The consumer demand recovery and lasting effects of COVID-19. McKinsey & Company. Retrieved August 15, 2022, from https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the- consumer-dema nd-recovery-and-lasting-effects-of-covid-19

[6]. Miguel, A. B. de, Connolly, J., Edlich, A., Oxman, A., Pandit, V., Seghers, L., & Skovira, E. (2020, September 16). Private equity and the new reality of coronavirus. McKinsey & Company. Retrieved August 15, 2022, from https://www.mckinsey.com/industries/private- equity-and-principal-investors/our-insights/private- equity-and-the-new-reality-of-coronavirus

[7]. Chen, J., Vetterli, J. (2021, March 8). Global ipos hit back strongly after covid-19 crash: White& Case LLP. Retrieved from https://www.whitecase.com/insight-our-thinking/global-ipos-hit-back-strongly-after-covid-19-crash

[8]. Baig, A. S., & Chen, M. (2022). Did the COVID-19 pandemic (really) positively impact the IPO market? an analysis of information uncertainty. Finance Research Letters, 46, 102372. https://doi.org/10.1016/j.frl.2021.102372

[9]. Grabow, J. (2022, February 9). Venture Capital continues to exhibit immunity to the COVID-19 pandemic. EY. Retrieved August 13, 2022, from https://www.ey.com/en_us/growth/venture-capital-continues-to-exhibit-immunity-to-the-covid-19-pandemic

[10]. Peterson, E. R., Toland, T., & Huddart, G. (2020, May). Read @kearney: Robots vs. covid-19: How the pandemic is accelerating automation. Global Business Policy Council (GBPC). Retrieved August 13, 2022, from https://www.kearney.com/web/global-business-policy-council/article/-/insights/robots- vs-covid-1 9-how-the-pandemic-is-accelerating-automation

[11]. Zribi, S. (2022). Effects of social influence on crowdfunding performance: Implications of the COVID-19 pandemic. Humanities and Social Sciences Communications, 9(1). https://doi.org/10.1057/s41599-022-01207-3

[12]. Eckart, K. (2021, June 16). Pandemic-era crowdfunding more common, successful in affluent communities. UW News. Retrieved August 13, 2022, from https://www.washington.edu/news/2021/06/16/pandemic-era-crowdfunding-more- common-successful-in-affluent-communities/

[13]. Zhang X, Liu X, Wang X, Zhao H, Zhang W (2022) Exploring the effects of social capital on crowdfunding performance: a holistic analysis from the empirical and predictive views. Comput Hum Behav 126:1–17

[14]. Amoils, N. (2021, February 2). Security token industry in 2021. Forbes. Retrieved August 13, 2022, from https://www.forbes.com/sites/nisaamoils/2021/01/25/ security-token-industry- in-2021/?sh=261e67 3d61cb

[15]. Deloitte. (2020, October 19). Security token offerings: The next phase of financial market evolution? deloitte-cn-audit-security-token-offering-en-201009. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/audit/ deloitte-cn-audit- security-to ken-offering-en-201009.pdf

[16]. Allen, D. E. (2022). Cryptocurrencies, diversification and the covid-19 pandemic. Journal of Risk and Financial Management, 15(3), 103. https://doi.org/10.3390/jrfm15030103

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