Bain’s Pagliuca Says U.S. Economy at 80% Until Vaccine for Covid

(Bloomberg) -- Bain Capital’s Stephen Pagliuca said the U.S. economy will remain at about 80% of its capacity until there is more progress toward a vaccine or therapeutics for Covid-19.

“I’m much more optimistic about the progress with therapeutics and vaccines,” Pagliuca said in a Bloomberg Television interview on Wednesday. “Until then, we’re going to be an 80% economy, an economy shifting toward an e-economy.”

Pagliuca, co-chairman of the Boston-based global alternative asset manager, also said that instead of a V-shaped economic recovery, he expects a “series of Ws” as coronavirus cases rise in Southern and Western U.S. states. The private equity veteran is helping lead an effort to reopen businesses in Massachusetts.

Bain has been raising capital for its flagship buyout fund, targeting $9 billion from external investors as well as an additional 10% to 15% from partners at the firm. It recently closed on $3.2 billion for a distressed debt and special situations fund. The firm has about $100 billion under management.

Pagliuca is also part of a growing list of financiers in the owners’ boxes of professional sports franchises, serving as managing general partner and member of the executive committee of the Boston Celtics. He said the focus on the plan for the shortened basketball season in Orlando, Florida, is to make sure people remain safe.

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