Hope you had a nice weekend.
Listen: We recorded a new cross-asset podcast for your listening pleasure. I touch on some of the fund term amendments we’re starting to see from GPs looking to do things like, expand their investment scope, invest in the debt of portfolio companies and recycle proceeds from investment sales back into portfolio companies that need more capital.
Sarah gives us an update on healthcare investing in the downturn. Investors are especially focusing on behavioral health, which, unfortunately, may grow in popularity as more people seek treatment for addiction and depression from the economic pain caused by the pandemic. We also hear from senior editors in venture capital, infrastructure, private debt and the rise of ‘dislocation strategies’, private real estate and agricultural investments. Check it out here.
Interns: Vista Equity, Carlyle Group and General Atlantic are among firms preparing to host summer internships remotely as the global pandemic continues to lock down big population centers, writes Milana Vinn on PE Hub. Most programs are figuring out how to adapt their programs for a virtual format and host summer hires over Zoom meetings and calls. Others are still working through the logistics, Milana writes.
Losing the in-person aspect of a professional internship may render these experiences less impactful. However, some feel that, because of the downturn environment and the need to adapt work practices to this new reality, these internships may become even more useful for young professionals. These interns will be getting a unique experience that generations of prior interns did not have, and hopefully those in the future won’t have again (fingers crossed).
What are hearing along these lines? Reach me at email@example.com.
LPs: Public systems are starting to flex their muscles in regards to private markets investors. Last week we had Pennsylvania’s state workers pensions questioning long-standing fundraising practices in public, and rejecting a recommended commitment after a discussion about liquidity as well as other concerns.
Bloomberg reported that Pennsylvania’s teachers pension, and Alaska’s sovereign fund, have warned hedge fund and private equity managers against taking government emergency loans meant to support portfolio companies. The emergency loan program, Paycheck Protection Program that is part of the CARES Act, ran out of money in mid-April amid public pushback against large businesses taking emergency aid. Congress approved $484 billion in new aid to refresh the program, which kicks off today.
Jim Grossman, chief investment officer at the Pennsylvania school pension system, said in an April 14 letter to its managers that it agreed with consulting firm Aksia LLC, which had said managers applying for the program showed “poor moral judgment” and were “probably crowding out struggling workers and businesses severely impacted by Covid-19,” according to Bloomberg.
The idea seems to be that most managers the system backs are large and have enough capital to ride out the downturn. What’s not clear from the article is whether these systems have problems with portfolio companies of private investment firms applying for government assistance.
Portfolio companies, btw, should be able to access government assistance if they need it. Just being backed by private equity should not exclude a small-businesses from getting emergency help to ride out the downturn.
Bain Capital’s largest distressed and special situations fund collected nearly $2.1 billion, on its way to a $3 billion target, writes Kirk Falconer on Buyouts. The GP will kick in at least 3.33 percent of commitments, Kirk said. Read the full story here.
Jeremy Holland, managing partner at Riverside Company, has found the work-from-home transition fairly smooth thanks to a dedicated office space and eight years of remote-working experience, writes Karishma Vanjani on PE Hub. The same cannot be said of the family, which is now under new rules.
“I’ve created a new game called: ‘When Dad’s office door is closed, come in quietly,’” said Holland. “So far, my eight and 11-year-old kids are both doing quite well. It’s the 45-year-old (my wife) that doesn’t seem to get it.” Read more.
Have a great Monday! Stay safe and healthy. Hit me up as always with tips n’ gossip, feedback or just to chat at firstname.lastname@example.org, on Twitter or find me on LinkedIn.