However, “some PE owners are not well positioned to go shopping for new assets now, as they will just have to pivot more efforts to stabilise their portfolios”, the report noted, citing industry sources.
Danny Lizares, managing partner at Philippines-focused Sierra Madre Private Equity, added in the report:"In addition, deal-making is at a stand-still due to logistical problems caused by the lockdowns, such as delays in conducting due diligence and securing regulatory approvals." However, there are some bright spots, with increasing PE activity in the pharmaceuticals, medical and biotech sectors arising from gaps between healthcare supply and demand, Mergermarket said.
For instance, Quadria Capital, a healthcare-focused PE firm in South-east Asia and South Asia, is targeting up to 10 deals with its newly-closed fund. Meanwhile, a Philippines-based mobile healthcare platform, AIDE, is considering raising fresh capital. However, PE investors also report that it will be important to pick sub-segments carefully. “Within healthcare, for example, telemedicine is a huge beneficiary, but dental chains have taken a hit, and hospitals and medical specialist clinics are also affected due to the postponement of elective surgeries that come with higher profit margins,” the Mergermarket report noted.For daily updates on weekdays and specially selected content for the weekend.
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