Investors look to solutions for businesses crippled by COVID-19

European asset owners, along with the banking sector and governments, are providing liquidity to keep their portfolio companies operating during the COVID-19 pandemic, attendees heard Thursday during a Pensions & Investments webinar.

During the webinar, titled "Time to Futureproof Retirement: A new approach for a new decade — what can pensions do now?" a panel of investors agreed that institutional investors should help businesses hurt by the crisis to recover by providing capital.

"A lot of companies are in survival mode and we have every interest to make them succeed," said Thijs Knaap, senior strategist at APG Asset Management, the manager of €420 billion ($466 billion) Stichting Pensioenfonds ABP, Heerlen, Netherlands.

APG offers emergency cash to portfolio companies and does not pressure companies to meet long-term engagement goals as they are battling the immediate impact of the pandemic, Mr. Knapp said.

"We are not here to collect every penny, if by doing so we create a (crisis)," Mr. Knaap said.

"We need to continue to keep an eye on solutions," he added. "There are a lot of demands on capital providers to make sure that things don't derail, but in the long term other parties have to chip in as well."

Simon Pilcher, the CEO of investment management at Universities Superannuation Scheme, London, noted that businesses impacted by the crisis need a range of support.

"We provide advice — for example, (we) meet with some boards two or three times a week — and financial support," he said. "We provide a liquidity facility alongside banks to ensure our commitment to the businesses so they can continue operating."

Mr. Pilcher said the fund wants to ensure companies have resources as the economy revives. He added that the £70 billion ($86.4 billion) fund is focusing on opportunities in private debt, where people's needs are.

"We are looking at a number of private debt opportunities (that are) about helping businesses through (the pandemic)," he said. "Some of the companies that we think can come back are looking for long-term capital."