Skip to main content
Knowledge and Training for Financial Decision Making!

NEWSLETTER of November 19, 2021


The following content has been added at finexpert:


Studies > Performance

Deloitte
CFO SURVEY HERBST 2021
The Deloitte CFO Survey reflects the assessments and expectations of CFOs of large German companies on macroeconomic, corporate strategy and financial topics. The survey is published semi-annually and aims to identify trends and trend breaks. In the CFO Survey Fall 2021, participants continue to paint a positive overall picture in the context of recovery from the aftermath of the pandemic, although risks are on the rise again. The new edition focuses on the topics of digital investments, climate protection and sustainability management: these are currently of particularly high importance to companies. >more

Studies > Performance

Bain & Company
INSURANCE 2030: AS RISKS MOUNT, INSURERS AIM TO AUGMENT PROTECTION WITH PREVENTION
Climate change, disease, and technological disruptions are combining to produce more risks—and different types of risk. Insurers can look beyond just reimbursing for damages to incentivizing behaviors in ways that will reduce risks. Broader use of new technologies will likely help reduce costs and create value for all parties involved, spurring global premiums to $10 trillion by 2030. Five core strategic questions around loss prevention, embedded insurance, direct distribution, a China strategy, and alternative capital options will help insurers navigate an uncertain future. >more

Studies > Alternative Investments

Invest Europe | Arthur D. Little
THE INSIGHT: HOW EUROPE’S PRIVATE EQUITY INDUSTRY IS ANCHORING LONG-TERM INVESTORS
Invest Europe in collaboration with Arthur D. Little, the international management consulting firm, conducted this year a pan-European, forward-looking Market Sentiment Survey capturing the views of 250 private equity managers and investors on the future of the industry in the context of COVID-19. Far from simply embracing a return to business as usual, the responses from our market sentiment survey indicate that private equity is also treading a new path. As the outlook improves, the industry is concentrating ever more attention on delivering higher sustainability standards and more ethical practices. Some 95% of general partners stated they intend to increase their focus on Environmental, Social, and Governance (ESG) issues in the near future. >more

Studies > Alternative Investments

Invest Europe
H1 2021 EUROPEAN PRIVATE EQUITY ACTIVITY
The H1 2021 activity data report provides a semi-annual review of fundraising, investment and divestment trends for European private equity and venture capital activity. Preliminary H1 2021 fundraising figures for Europe reached €52.4bn. This is in line with the median amount raised during H1 over the past five years (2016-2020). Preliminary figures show that €57.3bn of equity was invested into European companies throughout H1 2021. This is the highest level of investment ever seen in any half year period to date and is a significant (38%) increase in the amount invested in H1 2020. >more

Studies > Alternative Investments

PwC
EMERGING TRENDS IN REAL ESTATE: EUROPE 2022
This report is a joint survey by PwC and the Urban Land Institute. Now in its 19th edition, the survey provides an outlook on real estate throughout Europe for the near-term and 2022. As European economies have started to recover from the pandemic, there is a clear upturn in confidence among property industry leaders although many are still coming to terms with the radical changes to the business of real estate brought about or accelerated by COVID-19. >more


Research Papers > Corporate Finance

SHOULD SPAC FORECASTS BE SACKED?
Michael Dambra, Omri Even-Tov, and Kimberlyn George
2021
In 1995 Congress passed the Private Securities Litigation Reform Act (PSLRA), which grants public companies a safe harbor from liability for forward-looking statements (FLS). Because investors cannot reasonably assess the legitimacy of forward-looking information for initial public offerings (IPOs), these companies are excluded from the act’s provision. However, companies that go public through a special acquisition company (SPAC) are defined as merger targets of an already-public firm, and as such, their FLS are protected under the PSLRA safe harbor. In this paper, we offer the first large-scale study on revenue forecasts disclosed in investor presentations given by SPAC targets. We document a positive association between the compound annual growth rate (CAGR) in projected revenue and both market returns and abnormal retail trading during the five-day event window around the investor presentation. We also show that higher revenue growth projections are more likely to be optimistically biased and that firms with higher projections tend to underperform comparable firms during the two-year span following the SPAC merger. Overall, our results attest to the recent concerns expressed by both the SEC and the financial press, that SPAC firms’ aggressive revenue projections compel retail investors, who end up faring worse on their investment. >more

Research Papers > Alternative Investments

AN ECONOMIC CASE FOR TRANSPARENCY IN PRIVATE EQUITY: DATA SCIENCE, INTEREST ALIGNMENT AND ORGANIC FINANCE
Ashby Monk, Sheridan Porter, and Rajiv Sharma
2021
The private equity asset class has grown rapidly since 2008, attracting institutional investors in need of higher returns than those expected from public markets. But while most investors would say they have been rewarded with good performance, this success is hard to objectively demonstrate due to intransitive metrics and unmeasured risks. It is our belief that there is a pressing need to substantiate the economic case for private equity. In this article, we describe a new transparency framework, which we situate in our research agenda on ‘organic finance’. The framework uses data science technology to operationalize private equity data and institute a scientific approach to performance measurement. We elucidate what scientific measurement should look like in private equity, incorporating examples of technologies in use today. We also reveal how bringing new levels of transparency into the asset class can, on its own, create significant value. Finally, we look at the effect of organic finance on the industry, connecting greater transparency to a structural shift that enables efficiencies, expansion, and innovation. The magnitude and sustainability of this shift reinforces the economic case for private equity, albeit with far more transparency than is practiced today. >more

You are not a member?

Sign up here

Login

Forgot your password?