NEWSLETTER of August 7, 2026

The following content has been added at finexpert:

KfW Research
GERMAN PRIVATE EQUITY BAROMETER Q2 2026
Investor sentiment in the German private equity market deteriorated during the spring quarter. The business climate indicator for the segment of the private equity market focused on investments in established companies fell by 17.4 points to -32.2 points in the second quarter of 2026. Investor sentiment has now remained in negative territory for four and a half years, with only sporadic fluctuations toward the long-term average. >more

Evercore
H1 2026 SECONDARY MARKET REVIEW
The private-capital secondary market reached a record $121 billion in H1 2026, up 19% year-over-year, according to Evercore's H1 2026 Secondary Market Review. GP-led volume surged 35% to $65 billion, private credit secondaries hit $20 billion, and secondary dry powder dropped to $194 billion, tightening the capital overhang multiple to roughly 1.0x. >more

Allianz Research
CRACKING FINANCE: WHY THE QUANTUM THREAT COULD ARRIVE BEFORE THE REWARD
Most technologies create value before they create problems, but quantum computing may break that pattern. Imagine two clocks ticking side by side: one measures the time until quantum computers become economically useful, the other the time until they can break the cryptography that underpins the financial system. Which clock strikes first is a genuinely open race. >more

Deutsche Bank Research
MAPPING THE WORLD'S PRICES 2026
Deutsche Bank Research Institute's Mapping the World’s Prices 2026 report, released in July 2026, compares costs, rents, and net monthly salaries across 69 global cities. It reveals that US cities now rival Swiss hubs in expensiveness, Tokyo has become surprisingly affordable by developed-market standards, and Zurich leads the world in net monthly pay. >more

EXTERNAL LEGAL COUNSELS AS TRANSACTION COST ENGINEERS IN SYNDICATED LOAN CONTRACTING
Roberto Vincenzi, Peter F. Pope, and Peeyush Taori
2025
We report new evidence that external legal counsels (ELCs) are important in shaping the terms of syndicated loan contracts. Using a dataset of ELCs representing borrowers and lenders, we find that ELCs explain significant variation in loan contract characteristics. We then investigate the channel through which ELCs are influential, introducing their role as transaction cost engineers (TCEs) who reduce information asymmetries between lenders and borrowers. Loans involving a connected ELC who advises a lender (borrower) while having a recent working relationship with the borrower (lender) have lower interest spreads, lower covenant intensity, and less strict covenants. The connected ELC contracting effects are stronger when information asymmetry is higher. Furthermore, loans with connected ELCs are less likely to be downgraded or default, suggesting that the involvement of connected ELCs provides ex post loan performance benefits. Our evidence supports an additional role of ELCs as transaction cost engineers who reduce information asymmetries between loan contracting parties. >more

BIODIVERSITY ENTREPRENEURSHIP
Sean Cao, George Andrew Karolyi, William W. Xiong, and Hui Xu
2025
We study an emerging class of start-up organizations focused on biodiversity conservation and the challenges they face in financing these ventures. By fine-tuning a large language model (LLM), we identify 630 biodiversity-linked start-ups in PitchBook and compare their financing dynamics with those of other ventures. Biodiversity start-ups raise less capital but attract a broader coalition of investors, including not only venture capitalists (“value investors”) but also mission-aligned impact funds and public institutions (“values investors”). Values investors provide incremental capital rather than substituting value investors, but funding gaps persist. We show biodiversity-linked start-ups use social media (Twitter) activity to help connect with value investors. Our findings can inform policy and practice for mobilizing private capital toward biodiversity preservation, emphasizing hybrid financing models and strategic communication. >more