Sovereign wealth funds/Private equity

With the ongoing slump in the market, PE and asset managers are concerned about their own as well as their portfolio companies’ financial performance. We can assist in evaluating their current cash situation and optimizing their liquidity, cash management and working capital management.

Other important measures include stress testing, financial planning and scenario modelling.

The Private Equity, Asset Management and Sovereign Wealth sectors are foreseeing increased buyout possibilities during this pandemic along with possibilities to invest in distressed assets. We provide agile and data-driven deal advisory services such as due diligence, valuations, vendor assistance and post deal integration.

Companies in the sector would need sustainable business continuity plans in place. KPMG can provide Business Continuity Management services, so that the impact on business due to unforeseen circumstances is mitigated.

The economic effects of the Covid-19 pandemic will likely lead to an uptick in debt and financial restructuring activity by PE firms and their portfolio companies, providing possibilities to support them with optimizing their capital structure, managing covenant breaches, contingency planning etc.

The Covid-19 pandemic has led to regular changes being announced related to tax requirements, deferrals and incentives across geographies. KPMG can assist entities in monitoring these changes, evaluating tax obligations, tax modelling and other updates related to direct and indirect tax and transfer pricing.

As a growing number of asset management firms are facilitating remote working for their employees, security protocols could potentially weaken and the risk of cyber attacks could surge. KPMG is adept at providing security with respect to data, communication and IT systems and software, secured remote access management, review of security controls, ensuring network security and IT infrastructure upgrades.

PE funds are making it their top priority to ensure the stability of their existing portfolio and KPMG can assist with portfolio prioritization in terms of the financial allocations for portfolio companies in Covid-19 impacted sectors.

KPMG can also support PE firms in managing the performance of their portfolio companies (particularly in distressed sectors), such as by providing restructuring support, capital management, operational improvement strategies etc.

KPMG can provide acquisition tax planning services to PE firms helping them identify tax-efficient structures for completing acquisitions as well as potential tax exposures.

PE firms are already investing in the blocking-and-tackling needed to expand remote technology and back-office infrastructure (by adding VPN access and extending help-desk hours) and migrating systems and information to the cloud. KPMG can support in maintaining both organizational connectedness and ongoing critical activities.

KPMG’s People & Change management solutions and services could assist companies as they operate in remote working conditions and face the reality that the workforce of the future may need to look distinctly different to that of today.