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Uncertainty spurred by the deadly coronavirus could create an investible edge for private equity firms in the months ahead, according to BTIG.
The Wall Street firm estimates private equity firms are sitting on about $1.5 trillion of "dry powder," looking for smart places to put the cash to work.
"This uncertainty is what has consistently created opportunity for patient, long-term investors over the last two generations," the firm's analyst Julian Emanuel told clients.
To find potential acquisition targets, BTIG looked for beaten down stocks from the coronavirus market rout that would be a discounted price.
BTIG screened for stocks that have a history of private equity or venture capital backing, that are trading below their initial public offering price or more than 50% below their all-time high. All the listed stocks have gone public since 2009 and have a market value greater than $2 billion.
The firm further refined its list by adding a "familiarity" element. All of the listed stocks have comparatively low leverage and are run by the same CEO or founder as during their market debut.
"Uncertainty could be mitigated by an element of familiarity as an investible edge for PE in the months ahead," added Emanuel.
Take a look at BTIG's list here.
