Wall Street Journal - Private-Equity Valuations Stressed by Coronavirus Crash

April 1, 2020

Wall Street Journal - Private-Equity Valuations Stressed by Coronavirus Crash

Chris Cumming of The Wall Street Journal details the impact that the Coronavirus pandemic is having on private equity valuations. The article features a recessionary valuation model created by MSCI, leveraging Burgiss data, stating: “One estimate suggests the value of private-equity investments has been hit even harder than the broader stock market because the deals typically involve high amounts of leverage. Index company MSCI Inc. estimated last week that the value of large U.S. buyouts had declined 35% from their high point in the first quarter, based on data from Burgiss Group LLC.”