The effects of Covid-19 on the private equity and alternative sector will be significantly felt by sector participants. The truth is, there are companies who have the economic right to live and ones who do not have an economic right to live. Covid-19 will expose those companies that have been operating on benefits and patronage. The business landscape is changing and after several lockdowns by various countries, consumers and businesses will notice the services they need and services that were just a bonus and a drag on expense budgets.
There has never been a better time for companies to show their relevance and showcase their solutions to the pain points of customers. Customers need to see that life was better with their suppliers, partners and stakeholders or else they will move on and find new players in the market. A real business cannot rely on patronage and goodwill. We are entering a new age where all stakeholders need to show their worth, including employees. If a business can operate with all its staff at home then, how many people are required to keep a business operational, has innovation been the centre of operations and does it have the right management.
The private equity and alternative sector will take such issues into cognisance in allocating new capital, as this will be imperative in creating real Limited Partner shareholder value. Covid-19 has proven that technology is the future of business continuity and innovation will drive the survival of profitable enterprise.