Given the current economic uncertainty due to COVID-19, many investors are concerned about the impact it will have on their private markets portfolios. This potential volatility can be measured in various ways; however, most investors are focused on an industry impact of COVID-19, to evaluate that volatility.
Industry Impact of COVID-19 Classifications
Limited Partners can develop a classification system for identifying the potential impact of COVID-19 on various industries, as defined through GICS classifications. This classification system can be as simple as “positive impact”, “no impact”, “mild impact” and “high impact” based on an LPs expectations for the industry as seen through GP insights, public market performance and historic performance. See below for an example of how you can designate industries impacted by COVID-19: