BEIJING, CHINA - FEBRUARY 09: A Chinese woman wears a protective mask as she has her temperature checked before entering a park with her child on February 9, 2020 in Beijing, China. The number of cases of a deadly new coronavirus rose to more than 37000 in mainland China Sunday, days after the World Health Organization (WHO) declared the outbreak a global public health emergency. China continued to lock down the city of Wuhan in an effort to contain the spread of the pneumonia-like disease which medicals experts have confirmed can be passed from human to human. In an unprecedented move, Chinese authorities have put travel restrictions on the city which is the epicentre of the virus and municipalities in other parts of the country affecting tens of millions of people. The number of those who have died from the virus in China climbed to over 810 on Sunday, mostly in Hubei province, and cases have been reported in other countries including the United States, Canada, Australia, Japan, South Korea, India, the United Kingdom, Germany, France and several others. The World Health Organization has warned all governments to be on alert and screening has been stepped up at airports around the world. Some countries, including the United States, have put restrictions on Chinese travelers entering and advised their citizens against travel to China. (Photo by Kevin Frayer/Getty Images) The world’s largest private equity and venture capital event, boasting over 3,000 attendees, turned into a slightly muted affair as many Italian and east Asian investors stayed at home. A few big name guests didn’t turn up, while some withdrew attendees overnight. And others, including some CD&R employees, just dropped out at the last minute.
“This year people are not shouting from the roof top -- it’s a more measured mood in comparison with recent years and the coronavirus is weighing on the atmosphere,” said Richard Hope, head of EMEA at Hamilton Lane.
The organizers, however, said there had been no significant impact on attendance. And to be sure, two of the biggest names in the industry, Apollo Global Management’s Leon Black and Carlyle Group Inc.’s co-founder David Rubenstein did show up.
A Kiss Is Just a Kiss Except When It Spreads the Coronavirus
But the potential impact of the disease was never far from attendees’ thoughts.
After a decade-long tear of blockbuster returns and trillions in new capital from institutional investors, there are now concerns that the China-originated virus will upend global growth -- dealing damage to some of the thousands of firms now owned by the likes of Blackstone Group Inc. and KKR & Co.
Some firms are more vulnerable than others. Portfolio companies dependent on China, reliant on foot-traffic in retail stores, or in the travel industry will be among those impacted badly, Christophe De Vusser, partner at Bain & Co. said in an interview at the conference.
Kewsong Lee, co-chief executive officer at Carlyle, told attendees the short-term economic impact of coronavirus would be greater than people think. He added that in the long run, the global economy would see steady growth.
“You can’t have 40% to 50% of the world’s second largest economy be sequestered in the way it has been and not have an impact,” he said, a reference to quarantine measures in parts of China that have seen factories closed and whole city populations confined to their homes.
--With assistance from Sarah Syed.