Portfolio Company Preservation in a Pandemic World – Ensuring the Survival of PE Portfolio Companies in Asia

As the COVID-19 pandemic continues to disrupt everything from stock prices to supermarket shelves, the world is facing a diverse array of unprecedented challenges. Against this backdrop, there is a common thread throughout the entire PE industry at the moment: portfolio company preservation. Private equity investors are focused on ensuring that their portfolio companies not only survive the pandemic, but are also competitively positioned to capitalise on the post-pandemic uptick in business activity and opportunities that arise when life inevitably returns to normal.

This Legal Update discusses the two key areas of Banking & Finance and Supply Chain & Distribution in which Mayer Brown has been actively supporting the portfolio companies of our PE clients, and provides an overview of certain relief measures from economic stimulus packages across a number of Asian jurisdictions in the key areas of wage subsidies and employment, tax relief, sector-specific relief and liquidity, which PE investors and their portfolio companies should be aware of as they continue to weather the current pandemic.