NEWSLETTER of August 20, 2021

The following content has been added at finexpert:

KPMG
PULSE OF FINTECH H1 2021
After a rather weak year, global investments in startups from the financial sector have increased significantly again in 2020. This is the result of the "KPMG Pulse of Fintech", for which data from Pitchbook was analyzed. According to the report, the volume of all venture capital, M&A and private equity investments in fintechs rose to $98 billion in the first half of 2021; 2,456 deals were made worldwide. By comparison, $121.5 billion was invested in 3,520 deals in all of 2020. >more

Oliver Wyman
DIE ZUKUNFT VON INSURTECH IN DACH
What are the trends and changes in the InsurTech industry? We examine this in our "InsurTech Radar 2021" and highlight the developments that have taken place since our last Radar in summer 2019. For the radar, German InsurTechs were subjected to a detailed analysis for the fourth time. For the first time, startups from Austria and Switzerland were also included in the analysis. Even if the total number has no longer increased despite new start-ups, the market has matured: InsurTechs have established themselves as a permanent fixture in the insurance industry. The pandemic has even accelerated this development: 70 percent of InsurTechs specializing in end-customer solutions have been able to strongly expand their new business in the last 18 months. >more

Deloitte
ANNUAL REVIEW OF FOOTBALL FINANCE 2021
For the 30th time, Deloitte presents the English edition of the "Annual Review of Football Finance" with the most important financial figures of international professional soccer in the 2019/2020 financial year. The latest study highlights the economic impact of COVID-19 on the European soccer industry in the 2019/20 season, which was initially interrupted from spring 2020 and finally played to a close in front of empty stands. In addition, the study offers a detailed look at the English soccer leagues and highlights, among other things, the 2019/20 women's soccer season and current developments in the investment and technology sectors in further special chapters. >more

PwC
CASH TO DRIVE THE SHIFT: AUTOMOTIVE SECTOR WORKING CAPITAL REPORT 2021
Supply chain disruptions, fluctuations in demand and the shutdown of production during the first lockdown in spring 2020 put the automotive industry to the test last year. As a result, passenger car production declined 16 percent between 2019 and 2020. However, the pandemic also had an impact on the working capital management (WCM) of OEMs and suppliers: for example, the capital lockup period temporarily rose to 60 days in the second quarter of 2020, but leveled off again at 33 days by the end of the year - four days higher than in 2016. In this context, the working capital performance of manufacturers in particular deteriorated, while suppliers were able to improve their WCM. These are the findings of a PwC analysis of more than 800 companies in the automotive industry. >more

VALUING PRIVATE EQUITY INVESTMENTS STRIP BY STRIP
Arpit Gupta, and Stijn Van Nieuwerburgh
2020
We propose a new valuation method for private equity investments. It first constructs a cash-flow replicating portfolio using cash-flows on various listed equity and fixed income instruments (strips). It then values the listed strips using a flexible asset pricing model that accurately captures the systematic risk in bonds of different maturities and a broad cross-section of equity factors. The method delivers a risk-adjusted profit on each PE investment and a time series for the expected return on each PE fund category. It avoids using realized discount rates and has good small-sample properties. We apply the method to the universe of PE funds. Under our more comprehensive risk model, we find negative risk-adjusted profits for the average fund in most PE categories. Substantial cross-sectional variation and persistence in performance suggests some funds outperform. Expected returns and risk-adjusted profit decline in the later part of the sample. >more

WHY ARE BIDDER TERMINATION PROVISIONS INCLUDED IN TAKEOVERS?
Zhiyao Chen, Hamed Mahmudi, Aazam Virani, and Xiaofei Zhao
2020
We present a rationale for bidder termination provisions that considers their effect on bidders' and targets’ joint takeover gains. The provision’s inclusion can create value by enabling termination when the target becomes less valuable to the bidder than on its own, but creates a trade-off because termination may also occur when the target is more valuable to the bidder than on its own. This trade-off explains why the provision is included in only some deals, and explains variation in termination fees. Inclusion of the provision is associated with larger combined announcement returns, provided that the termination fee is priced appropriately. >more