Country Life Trending: December 15, 2020 Private equity has thrived since the Global Financial Crisis After declines in March, private equity valuations have recovered Private equity companies have proved resilient This has been a golden decade for private equity. The financial conditions following 2008’s Global Financial Crisis were ideal for the asset class to flourish, with interest rates low and plenty of capital looking for higher growth assets. The question today is whether private equity can continue to thrive in the ‘new normal’ that emerges from the Covid-19 crisis? Over the past decade, private equity has seen a virtuous circle. Returns have been strong, encouraging new capital into the sector, which has allowed good companies to stay private for longer. While companies might have previously listed at an enterprise value of around $500m (e.g. Amazon), today, they have been able to raise the money to grow while remaining in private equity hands (e.g. Airbnb).