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Laxman Pai, Opalesque Asia: The economic interruption and travel restrictions have led investors to delay making fund commitments, and fund managers have faced challenges in fundraising, deal origination, and portfolio company operations, said a survey.
According to a Preqin survey of alternative assets fund managers and investors further, the disruption could be inevitable during the rest of 2020. The survey was conducted in April 2020 to gather industry players' views on the impact of COVID-19 on their business operations and the industry as a whole.
The report revealed that almost half of investors are concerned about the impact of the denominator effect on their portfolio, and a quarter are concerned about their liquidity to fund capital calls, it said.
But in the longer term, the expected impact is more positive. it added.
Significant proportions of both fund managers and investors expect COVID-19 to have a slightly negative long-term impact on returns. But most investors say that the pandemic will have no impact on how much they invest in alternatives, and 29% plan to invest more as a result.
More than 60% of fund managers, meanwhile, say that COVID-19 has not affected the targeted returns of their funds in the market, and 75% say that they will not adjust their investment strategy as a result of the pandemic.
Fifty-eight percent of investors are decreasing their planned number of new commitments in 2020 as a result of COVID-19, and 59...................... To view our full article Click here
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