Financial Resilience in The Circumstances of COVID : A Panel Data Study of Swedish Private Equity-Backed Firms

With an emerging private equity environment and a unique approach to the COVID-19 pandemic, Sweden serves as an interesting market to study. This thesis assesses the financial resilience of PE-backed firms in Sweden throughout the circumstances of the COVID. Through a quantitative approach, the study examines financial metrics, specifically Return on Assets and leverage, in order to assess the stability and flexibility of firms during the crisis and the years after. The findings point to PE-backed firms not exhibiting greater stability during COVID, but instead, stability was determined by firm-specific characteristics. Furthermore, it was found that PE-backed firms had greater flexibility throughout the circumstances of the pandemic, particularly in the years following the crisis. The study contributes to the understanding of how ownership structures, especially private equity backing, impact firm resilience in times of economic adversity, with implications for investors, policymakers and businesses seeking direction in future crises.