Investment funds are a little more optimistic but remain cautious. This is what emerges from the third edition of the Chausson Finance firm’s barometer measuring the impact of the coronavirus crisis on the morale and behavior of funds. In terms of good news for the ecosystem, three quarters of funds say they are confident to make at least one investment over the next six months. At the same time, almost 60% of funds believe that their LPs (fund subscribers) will not ask them to slow down the pace of investing over the next twelve months. A share that even climbs to 70% in the United Kingdom.
At the level of the treatment of the deal flow, 81% of the funds continue to process it, but more than half delay, in line with what was expressed last week. A renewed optimism is even beginning to emerge since 60% of the funds closed to the deal flow two weeks ago are again open to its treatment, but with caution. Two-thirds of funds estimate that the analysis of the deal flow will not be disrupted for more than two months.
30 operations per week
Since March 15, the Chausson Finance firm notes that the funds have made 90 investments, an average of 30 investments per week. In France, barely 34 transactions were recorded in March for a total amount of 174 million euros, far from the 801 million euros of investments for the month of January, according to our Decode Invest.
Given the economic consequences of the current situation, which are already starting to be felt, 88% of Partners believe that the coronavirus crisis will have a strong or very strong impact on the valuations of start-ups. They are 68% to think that the way out of the crisis will take the shape of a U, which is neither the most optimal nor the worst. It would then be a recovery of the economy slower than its fall. This situation could last for several months or even a few years.