Improved capital raising could be positive covid consequence

Not all of the consequences of the covid health crisis have been negative, such as the acceleration in the application of technology and the adoption of ESG principles.

Susheela Rivers, Hong Kong-based global co-chair, real estate sector, DLA Piper believes that there have been implications for capital raising too.

Speaking to Real Asset Insight’s Richard Betts she said that while covid has restricted the global flow of capital and imposed a local or at least regional focus, accelerated technological developments including blockchain could change capital raising.

“Perhaps the distribution ledger technology can provide operational efficiency or certainly new ways of lending which ultimately means you can have greater reach of investors,” Rivers said.

Another “silver lining” effect of covid is the positive impact on the environment of the restrictions and the increased drive for funds to commit to sustainable investment and impact investing. “If currently 25% of investments in a portfolio are [ESG and impact] linked, I think in the next three years that might even increase to 70% or 75%.”

Click on the video above to watch the full interview or listen to the podcast below.