The year 2020 will be remembered as a time of “disconnection” for financial markets, as the Covid-19 pandemic has cut many of the traditional links among people and their nations.

However, capital flows have continued throughout the year, and financial investors are still actively trading despite a decrease in merger and acquisitions deals, which has helped companies to cope with the economic fallout from the pandemic.

Private equity (PE) firms have been particularly active in leading big-ticket deals in a period when most companies are hesitant in making new investments and focusing on liquidity.

They have been particularly active in restructuring processes led by the big conglomerates. Hahn & Company acquired Korean Air Lines’ in-flight businesses and Sky Lake Equity Partners and Well to Sea Investment purchased Doosan Solus and Doosan Mottrol Corporation, respectively.

Megazone Cloud’s fundraising, in which JKL Partners and Stonebridge Capital participated, has attracted strong attention from market insiders, with many companies implementing non-face-to-face business relations and working-from-home protocols. Content distribution company JTBC Studios’ valuation also has increased thanks to the pandemic. Praxis Capital is likely to invest in the content distributor.

It has to be seen whether the PE firms will be able to earn hefty returns despite their bold investment decisions at a difficult time. They have played a vital role in providing cash-strapped conglomerates with liquidity and backed companies that need money to start their new businesses.

“We met a master who could help us with a decision making,” said an official at a firm which recently raised funds from a financial investor.

Financial investors’ efforts to bridge their money and companies in need of finance this year will be memorable, regardless of their investment returns. (Reporting by Ar-rum Rho)