This is a time of rapid contraction for the PE industry. While General Partners are focused on stabilizing their existing portfolios and zeroing in on the present and future challenges, sellers are keeping their assets intact. Banks are reluctant to offer new loans and underwriters are minutely scrutinizing their fund distributions. Together these withdrawals adding to the market volatility.

But contraction cannot be a far-sighted strategy. PE industry had a sound footing in the past decade. It saw a surge in valuations, transaction volumes, and fundraising.

PE industry leaders are reinventing themselves to address the COVID-19 challenge and to brace for the impending global recession. PE firms can follow their lead this way. Read here how.