Covid-19 continues to devastate the global economy. The virus has changed investors’ perception on what’s safe and what’s risky. Once-considered safe alternatives such as airports, railways, primary real estate and mezzanine debt in core underlying assets
have become riskier.
With the continuation of the virus, investors are seeking dislocation opportunities such as secondary investments, distressed debt and special situations. Asset owners are also looking to minimise the risk and maintain yield by allocating into alternative assets to fixed income, such as infrastructure—an attractive long-term asset class in an ultra-low rate era. And they are looking to exploit opportunities in technology-based core assets in an increasingly contactless and digitalised world.