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Laxman Pai, Opalesque Asia: Most alternatives fund managers appear to be staying the course although fundraising is slowing in the wake of the economic fallout from COVID-19, said a survey. Fund managers are polarized on the long-term impact, but business operations have taken a hit for most, it added.
Preqin survey of more than 180 fund managers in April on the impact of the outbreak on their strategy and operations, revealed that three-quarters do not plan to change their investment strategy for any active funds as a result of the outbreak.
What's more, a significant 90% of managers do not plan to change their valuation method for portfolio companies, either.
Fund managers remain unsure whether the market turmoil caused by COVID-19 will have a lasting impact.
Indeed, 62% of surveyed fund managers believe their targeted returns will be unaffected, while 16% told us that targeted returns will be "slightly lowered" as a result of the virus.
The largest proportion (38%) of surveyed fund managers believe that COVID-19 will have a "slight negative impact" on the alternatives industry.
However, an equal share (11%) of respondents believe that COVID-19 will have either a "significant positive impact" or a "significant negative impact."
Altogether, it suggests that fund managers do not yet have enough clarity on the long-term impact of the virus on the alternative assets industry.
Where fund managers are aligned is the effect of the virus on their busi...................... To view our full article Click here
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