NEWSLETTER of March 27, 2026

The following content has been added at finexpert:

KfW Research
DEUTSCHE VC-GESELLSCHAFTEN LIEGEN BEIM FUNDRAISING VON ALTERSVORSORGEKAPITAL ZURÜCK
The contribution of pension funds to fundraising by German private equity firms is below average, both by European and international standards. Private equity firms view regulation and risk-bearing capacity as the main obstacles preventing large institutional investors from making capital commitments. However, regulatory constraints do not appear to be the limiting factor in many cases — transparency requirements imposed by investors, on the other hand, certainly are. Current initiatives and measures by public sector actors aim to address the most significant barriers in order to attract these key investors more strongly to the German market. >more

Skadden
ACTIVIST INVESTING IN EUROPE 2026
The 2026 edition of Skadden’s Activist Investing in Europe report, produced in partnership with Mergermarket, reveals significant shifts in the European shareholder activism landscape. Non-local activists are now targeting European corporates more frequently than local ones, while nearly all respondents are observing greater engagement from first-time activists. Activists are also moving toward more assertive and public tactics such as media campaigns, open letters and public demands. In response, a growing number of companies are proactively considering or adopting defensive measures. ESG considerations remain key, with all surveyed activists saying they will prioritize ESG in upcoming campaigns. >more

KPMG
2026 GLOBAL M&A OUTLOOK
Global M&A activity is regaining momentum. Pipelines are rebuilding and financing conditions have stabilized, prompting renewed portfolio action. Yet this recovery is unfolding in a materially more complex environment shaped by geopolitical fragmentation, regulatory volatility, shifting tax policy, and accelerating technological change. This is not a conventional rebound cycle. It reflects a structural recalibration of how portfolios are built, separated, and governed — one in which execution discipline is becoming as critical as strategic intent. >more

DWS
ALTERSVORSORGE-REPORT 2025
The financial future of many women in Germany is uncertain. They face a double pension gap in old age: not only do they receive significantly lower statutory pensions than men, but they also tend to make fewer and more modest private pension contributions. This is one of the findings of the “Pension Report 2025,” which Deutsche Bank and DWS released recently. The causes of financial hardship in old age are deeply rooted in social and occupational structures. Women work part-time far more frequently (49% vs. 12% of men) and take longer parental leave. Combined with the gender pay gap—the difference in earnings between the sexes—this leads to significantly lower contributions to the statutory pension insurance system. >more

ALL YOU NEED IS CASH: CORPORATE CASH HOLDINGS AND INVESTMENT AFTER THE GLOBAL FINANCIAL CRISIS
Andreas Joseph, Christiane Kneer, and Neeltje van Horen
2025
Cash holdings at the onset of a financial crisis are a key determinant of investment by SMEs not only during the crisis but also during the recovery period. Cash-rich SMEs could maintain their capital stock during the global financial crisis, while cash-poor rivals reduced theirs. This gave cash-rich SMEs a competitive advantage during the recovery, resulting in a persistent and growing investment gap. The amplification effect was present for SMEs with both volatile and stable cash holdings and was particularly pronounced for younger and smaller firms. Competition dynamics and borrowing constraints seem to drive this amplification effect. >more

THE COVENANT DEFEASANCE OPTION IN CORPORATE BONDS
Carsten Bienz, Zsuzsanna Fluck, and Karin S. Thorburn
2026
Corporate bonds include restrictive covenants that may prevent firms from pursuing valuable growth opportunities ex post and are virtually impossible to renegotiate. We study a common but little-known contractual provision—the defeasance option—which allows issuers to immediately remove all covenants without retiring the bond. Our theoretical model predicts, and our empirical analysis confirms, that defeasance inclusion is more likely when covenants are numerous and issuers face financial constraints, uncertainty, and growth opportunities. We also show that investors require lower yields when defeasance is included in non-callable bonds, and higher yields in fixed-price callable bonds, where it raises call risk. >more