NEWSLETTER of Januar 15, 2021

The following content has been added at finexpert:

PwC
PRIME TIME FOR PRIVATE MARKETS: THE NEW VALUE CREATION PLAYBOOK
Investment continues to flow into private markets. In the wake of COVID-19, however, private markets managers face challenging economic conditions and a more complex definition of what constitutes value. As private markets come to make up an increasing proportion of the global capital markets, the sector is also becoming more regulated and scrutinised than ever before. How can you reconfigure your value creation playbook to outperform in this tough environment? You’ll need a strategy that focuses more closely on strategic positioning, operational excellence and capital efficiency in your business and the portfolios you manage. >more

McKinsey & Company
DIE NEUE GESETZLICHE FRAUENQUOTE: WORAUF ES JETZT ANKOMMT
The debate about the women's quota in Germany is dividing society. According to a representative McKinsey survey, the majority of Germans (55%) are generally in favor of a women's quota, with 62% of women and only 48% of men. However, only 32% are satisfied with the current draft law. The reasons for this vary: Almost 50% fear that success of women is associated with quotas rather than with skill. 47% think the state should not interfere. 23% think the current quota is too low and not far-reaching enough, and 22% fear that men would be disadvantaged by the quota. >more

HHL | EY
WARUM VIELFALT IN PE-PARTNER-TEAMS ZU BESSEREN ERGEBNISSEN FÜHRT
According to a study by EY and the Center for Corporate Transactions & Private Equity (CCTPE) at HHL, diversity in terms of gender, nationality and age boosts buyout performance. While sociodemographic diversity in lead partner teams has a positive impact on performance, occupational diversity has a detrimental effect. For more complex buyout deals, different rules apply: Here, both diversity dimensions have a positive impact on value creation. >more

EY
STARTUP-BAROMETER DEUTSCHLAND
Despite the Corona crisis, more German startups received fresh capital in 2020 than in the previous year: The number of financing rounds rose by six percent to 743, setting a new record. However, there were significantly fewer large deals with a volume of 100 million euros, so that the investment volume fell relatively sharply: by 15 percent to 5.3 billion euros. Once again, there was particularly brisk activity in Berlin: The number of financing rounds climbed by 20 percent to 314 in the German capital. However, the lack of very large transactions also made itself felt in Berlin: The investment volume decreased by 17 percent to 3.1 billion euros. >more

DOES CORPORATE INVESTMENT RESPOND TO THE TIME-VARYING COST OF CAPITAL? EMPIRICAL EVIDENCE
Yongjin Kim
2020
I examine whether the time-varying cost of capital is considered in firms' capital budgeting decisions. For this test, I measure the conditional cost of equity, using individual equity option prices. I find that corporate investment responds negatively to fluctuations in the option-implied cost of equity and the weighted average costs of capital. Furthermore, through decomposing marginal $q$, I reveal that the cost-of-capital elasticity of empirical investment is almost identical to its productivity elasticity, as theory predicts. These findings suggest that firms' discount rates are updated accurately in practice despite the failure of conventional frameworks, such as factor-based models, in this regard. >more

GENDER GAPS IN VENTURE CAPITAL PERFORMANCE
Paul A. Gompers, Vladimir Mukharlyamov, Emily Weisburst, and Yuhai Xuan
2020
We explore gender differences in performance in a comprehensive sample of venture capital investments in the United States. Investments by female venture capital investors have significantly lower success rates than investments by their male colleagues controlling for personal characteristics including employment and educational history and portfolio companies’ characteristics. The gender differences in investment outcomes are not due to female investors being less skilled but rather largely attributable to female investors receiving less benefit from the track records of their colleagues. Performance differences disappear in older, larger firms and firms with other female investors. This supports the view that formal feedback mechanisms and hierarchies are potentially useful in ameliorating the female performance gap. >more