NEWSLETTER of May 17, 2024

The following content has been added at finexpert:

finexpert | ValueTrust
German Takeover Report 2024
The 2024 issue of the finexpert | ValueTrust German takeover report covers all takeover offers and delisting tender offers of the year 2023 according to the German takeover code WpÜG and provides extensive information on relevant variables like bid types, premia offered, market reaction of target’s and (if available) on bidder’s stock prices. 2023 has seen a modest recovery in German public M&A activity from the low values in 2022. While the number of offers is again close to pre-Covid19 levels, deal volume is still far from the corresponding pre-crisis figures. This report contains a detailed description of the takeover offer of EQT X fund for va-Q-tech AG from February 2023. >more

BCG
AI AND THE NEXT WAVE OF TRANSFORMATION
The global asset management industry’s assets rose to nearly $120 trillion in 2023, reverting from a decline the year before. However, asset managers are facing a variety of challenges to their growth. Investors are gravitating to passively managed funds and other products that have lower fees even as asset managers’ costs increase. Their efforts to create new products that would differentiate them from competitors have largely fallen short, with investors sticking mostly to established products with reliable track records. Historically, the industry has been able to weather these pressures thanks to revenue growth that has been largely driven by market appreciation. In the years ahead, however, market appreciation is expected to slow, creating further challenges to the industry. >more

Invest Europe
INVESTING IN EUROPE: PRIVATE EQUITY ACTIVITY 2023
An annual survey, undertaken on behalf of Invest Europe, that collects comprehensive and robust activity data on fundraising, investment and divestment from more than 1,750 private equity and venture capital firms in Europe. >more

Invest Europe
PRIVATE EQUITY AT WORK REPORT (2024)
Detailed evidence and analysis of the European private equity and venture capital industry’s real contribution to employment, in 2022, and job creation, in 2021-22, and the far-reaching impact this has on the people, societies and economies of Europe. >more

International Monetary Fund
GLOBAL FINANCIAL STABILITY REPORT 2024
Chapter 1 highlight the near-term global financial stability risks have receded amid expectations that global disinflation is entering its last mile. However, along it, there are several salient risks and a build-up of medium-term vulnerabilities. Chapter 2 assesses vulnerabilities and potential risks to financial stability in corporate private credit, a rapidly growing asset class—traditionally focused on providing loans to midsize firms outside the realms of either commercial banks or public debt markets—that now rivals other major credit markets in size. Chapter 3 shows that while cyber incidents have thus far not been systemic, the probability of severe cyber incidents has increased, posing an acute threat to macrofinancial stability. >more

FINANCING THE GLOBAL SHIFT TO ELECTRIC MOBILITY
Jan Bena, Bo Bian, and Huan Tang
2024
Using comprehensive auto loan data, we identify a gap in financing terms between Electric Vehicles (EVs) and non-EVs. EVs, compared to their non-electric counterparts in the same make-model or make-model-power category, are financed with higher interest rates, lower loan-to-value ratios, and shorter loan durations. The primary driver of this financing gap is the risk associated with EVs. The rapid and uncertain progress in EV-specific technologies accelerates obsolescence, reducing EVs' resale value and thus increasing the cost associated with loans for these vehicles. Factors such as car buyers' willingness to pay, socioeconomic characteristics, government incentives for EVs, lenders' market power, and macroeconomic conditions play minimal roles in explaining the higher cost of EV loans. Our findings highlight that technological carbon-transition risk is priced in financing terms of green durable assets consumption. >more

THE STARTUP PERFORMANCE DISADVANTAGE(S) IN EUROPE: EVIDENCE FROM STARTUPS MIGRATING TO THE U.S.
Stefan Weik
2024
This paper uses novel data on the migration of European startups to the United States to understand Europe's main disadvantages in startup performance. I use positive sorting in migration as an identification strategy: because of positive sorting, the simple cross-sectional comparison gives an upper bound on the effect of the U.S. ecosystem compared to the European one. Results show that U.S. migrants receive much more venture capital (VC) funding, produce more innovation, and reach much bigger scale by exit than startups staying in Europe. More surprisingly, however, U.S. migrants do not increase revenue for many years after migration, incur higher losses for long time periods, and do not have a higher likelihood of successful exit than European stayers. Furthermore, a large part of the difference in innovation and scale can be explained by the U.S. funding advantage. These results are consistent with the view that technology, product, and exit markets hinder European startups little, if at all, but that Europe’s VC funding market is its major obstacle to startup performance. >more