NEWSLETTER of March 11, 2022

The following content has been added at finexpert:

PGIM
2022 Q1 CAPITAL MARKET ASSUMPTIONS
We expect real economic growth in developed economies to continue to moderate over the next decade, as it has for the last 30 years. This is due to limited growth of the developed labor force, which is constrained by domestic demographics, and to an assumption of no significant offset from improved productivity growth. Inflation in developed markets, in contrast, is anticipated to moderate over the next 10 years, relative to the elevated rates of inflation observed in 2021, though is expected to be somewhat higher than that observed in the period following the Global Financial Crisis of 2008, and prior to the COVID-19 induced recession of 2020. >more

KfW Research
FRAUENQUOTE IM MITTELSTAND AUF NIEDRIGEM NIVEAU SOGAR RÜCKLÄUFIG: SIND IMPULSE FÜR ZUWACHS AN CHEFINNEN IN WEITER FERNE?
The proportion of women in SMEs fell to 16% last year. A total of 608,000 small and medium-sized enterprises are headed by a woman. Nine out of ten of these companies are in the service sector. At the same time, the management of a medium-sized company is increasingly attractive to female academics. The degree of academization among female owners has increased enormously. The economic importance of women-owned SMEs should not be underestimated, but remains disproportionately low due to the focus on smaller service companies. >more

Baker Tilly
GLOBAL DEALMAKERS 2022: M&A MARKET UPDATE
There are good reasons to expect healthy levels of M&A going forward. As the global economic recovery continues, many corporates are looking to refocus their strategy for the changed market landscape, particularly in the context of digital transformation. Moreover, new imperatives for M&A have emerged. The need to confront climate change and other societal issues is now firmly on the boardroom agenda. The global battle for talent is forcing many organisations to think again about how they secure the skills they now need. >more

Bain & Company
GLOBAL PRIVATE EQUITY REPORT 2022
In this, Bain’s 13th Global Private Equity Report, we examine the industry’s strengths, its challenges, and the evolutionary path that lies ahead. In addition to the critical statistics that characterize PE industry performance, please look for our assessments of investing in growth equity, the continued rise of Asia, and the new news on ESG—specifically how investors are making it work for them. >more

THE REAL EFFECTS OF BANK LOBBYING: EVIDENCE FROM THE CORPORATE LOAN MARKET
Manthos D. Delis, Iftekhar Hasan, Thomas Y. To, and Eliza Wu
2022
Using corporate loan facilities and hand-matched information on bank lobbying, we show that borrower performance improves after receiving credit from lobbying banks. This especially holds for opaque borrowers, about which the lending bank possesses valuable information, as well as for borrowers with strong standards of corporate governance. We also find that credit from lobbying banks funds corporate capital expenditures that increase the scope of firm operations, thereby leading to sales growth. Our findings are consistent with the information-transmission theory that political lobbying provides regulators with valuable borrower information, which results in improved bank-lending supervisory decisions and corporate borrower performance. >more

ASSET ALLOCATION WITH PRIVATE EQUITY
Arthur G. Korteweg, and Mark M. Westerfield
2022
We survey the literature on the private equity partnership arrangement from the perspective of an outside investor (limited partner). We examine how the partnership arrangement fits into a broader portfolio of investments, and we consider the methods and difficulties in performance measurement, both at the fund level and at the asset class level. We follow with a discussion of performance persistence and the skill and pricing power of both general and limited partners. We continue by examining the limited partner's problem of managing commitments and investments over time while diversifying across funds in light of both idiosyncratic and systematic shocks. We close with a summary of recent work on optimal portfolio allocation to private equity. Throughout, we consider how empirical work and theory match the particular institutional details of private equity, and we identify 27 open questions to help guide private equity research forward. >more