Enewsletter No. 516 | SECA | Swiss Private Equity & Corporate Finance Association

eNewsletter no. 516 Dear Reader 29 November 2019

Dance the Cashless! Do the Cashless! Pass by the bancomat, it is SECA just a one-armed bandit. Banks profit from the bancomats, and there are criminal gangs that manipulate bancomats to deplete Venture Capital their victims‘ accounts. Those days are soon over. Bancomats will Private Equity – Swiss News be as obsolete as telephone cabins. Maybe someone will install aquariums in the holes in the wall. Private Equity – Int. News On the other hand: Swiss banknotes are the most precisely crafted Corporate Finance works of art, and they are true multiples. Some can be had for as Book of the Week little as 10 CHF, and even the biggest of the beautifully colored bits of contemporary design has a market value of 1000 CHF (1000 Jobs USD) only. Collectors take care to have it suitably framed.

Agenda Have a nice week! Editor Maurice Pedergnana

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SECA

Launch of 4th Edition of the regular VC Model Documentation “large”

SECA is pleased to announce that the existing regular VC Model Documentation "large" for sizeable venture capital investments by institutional/international investors has been updated to reflect market feedback and new market trends. The updated 4th Edition is now available for free download on SECA's website. SECA expresses its thanks to each member of the standing working group – Martin Frey, Dieter Gericke, Hannes Glaus, Beat Kühni, Oliver Triebold, Michael Trippel, Ulysses von Salis and Christian Wenger and a separate group of younger practitioners – for their invaluable contributions and the many pro bono hours that went into this new 4th Edition of the VC Model Documentation “large”.

VC Model Documentation

SECA fragt nach...

Was macht die LPX Group?

LPX analysiert seit mehr als 15 Jahren Unternehmen aus den Bereichen Private Equity, Infrastruktur und Debt. Dabei fokussieren wir uns ausschliesslich auf börsengehandelte Unternehmen und bieten Investmentlösungen in alternative Anlagen mit täglicher Liquidität.

Viele Investoren setzen momentan auf ETFs, auch im Bereich Private Equity. Wie erklärst du dir das? Momentan herrscht die Meinung vor, dass Investitionen am Kapitalmarkt fast nichts mehr kosten dürfen. Um jeden Basispunkt wird gekämpft. ETFs bieten einen sehr günstigen Zugang zu allen möglichen Anlageklassen, darunter auch Private Equity. Solange dieser Trend anhält, werden ETFs weiter an Beliebtheit gewinnen. Viele Investoren übersehen dabei aber, dass ETFs im Bereich alternative Investments mit einem Spread gehandelt werden, während ich bei einem klassischen Fonds immer zum NAV handeln kann. Auch sind die ETFs im Bereich Private Equity deutlich volatiler und damit risikoreicher als aktive Anlagestrategien.

Was können wir vom LPActive Value Fonds in einer allfälligen Rezession erwarten? Der LPActive Value Fonds verfolgt eine defensive Anlagestrategie mit einem Value Ansatz. Wir fokussieren uns dabei unter anderem auf Private Equity Unternehmen, die eine gesunde Bilanzstruktur aufweisen. In vergangenen Rezessionen war es stets so, dass diese Unternehmen zu günstigen Bewertungen in KMUs investieren konnten. Das führte dann in folgenden Aufwärtsphasen zu attraktiven Returns. Aber: Kurzfristig bleibt Private Equity korreliert mit der allgemeinen Wirtschaftsentwicklung.

SECA Training Romandie

La SECA (Swiss Private Equity and Corporate Finance Association) et France Invest s’associent pour proposer un cycle de formations en français facilitant la montée en compétences des professionnels intéressés par le capital-investissement (private equity) en Romandie. Nous offrons aux membres et non-membres un cycle de sept formations conçues pour un large public, allant des nouveaux entrants dans les métiers du private equity aux pro-fessionnels plus établis, mais aussi aux chargés d'affaires et acteurs du middle et du back office souhaitant approfondir leurs connaissances, professionnels de la finance, de la banque, des assurances et des caisses de retraites.

Flyer

Informations complémentaires et inscription

SECA Evening Event: Venture capital for family offices, insurance firms and pension funds

Tuesday, 28 January 2020, Geneva

This event, which is organized by the Swiss Private Equity & Corporate Finance Association in cooperation with the venture capital companies btov Partners and VI Partners, is aimed at managers and decision-makers from the investment sector of Swiss family offices, insurance firms and pension funds.

Flyer

more information and registration

3. SECA Workshop Venture Capital

Wir zeigen auf, was Venture Capital im Unterschied zu anderen Assetklassen ist, welche Märkte es gibt, wie Venture Capital funktioniert, welches die wichtigsten Marktplayer und deren Geschäftsmodelle sind, wie VC reguliert ist, welche Gründe für Venture Capital sprechen, wie ein Investor investieren kann und was die Erfolgsfaktoren für Investments sind. Neben diesen Themen dürfen Erfolgsgeschichten aus der jüngsten Vergangenheit aus den Bereichen Innovation, Unternehmertum und Venture Capital nicht fehlen. Zur Verknüpfung von Theorie und Praxis gestalten namhafte Referenten aus der Industrie sowie aus der Forschung und Entwicklung den Workshop mit.

Weitere Informationen und Anmeldung

Venture Capital

Media Monitoring

Fintechs treiben deutschen Venture-Capital-Markt

Investor Klaus Hommels sieht Europa im Rückstand

Nach Wework-Desaster: DiCaprio-Investment sucht vergeblich nach Geldgebern

Roger Federer investiert «unter 10%» in On Das Zürcher Startup ist seit 2014 profitabel und beispielsweise im deutschen Sportschuhmarkt bereits die Nummer 4. Es ist ihm eine Herzensangelegenheit. Aber er hat auch das Gespür fürs gute Wirtschaften.

RoomPriceGenie raises CHF 1m round led by Wingman Ventures

Wingman Ventures, a new VC based in Zurich, has announced a first investment in RoomPriceGenie. The start-up with more than 100 clients around the world developed a pricing solution for smaller hotels and has now closed a pre-seed round.

startupticker.ch

Peerbridge Health™ secures $11 Million of Additional Funding Hot on the Heels of Winning Medical Design Excellence Award

Kinled Holding is delighted to announce that its portfolio company Peerbridge Health Inc, has successfully raised $11mm from New York's largest hospital system, Northwell Health, Ascent Biomedical Ventures, and Kinled Holding Ltd.

Business Creation workshop for Biotech startups

Starting on the 23rd of January 2020 in Basel - Are you about to set up your own Biotech company or have you recently started a new business? In the

Business Creation training module, you will receive specific answers to your questions about your Biotech startup. This module will also help you to improve your plans and consolidate your knowledge.

more information and registration

After WeWork, SoftBank’s Startup Bookkeeping Draws Scrutiny

The WeWork fiasco raises questions about large numbers. The co-working startup’s valuation crested at USD 47 billion this year with SoftBank’s investment, then plummeted to USD 7.8 billion in a bailout engineered by Son. WeWork is slashing jobs and scaling back operations. “WeWork is not just a mistake, it is a signal of weakness in the whole model,” said Aswath Damodaran, a professor of finance at New York University’s Stern School of Business, who has written four books on valuing businesses. “If you screwed up that valuation so badly, what about all of the other companies in your portfolio?“ SoftBank said WeWork is an exception rather than a symptom of broader problems, and it has learned from the experience. EIF Working Paper 2019/060: EIF Business Angels Survey 2019 - Market sentiment, public intervention and EIF’s value added

This working paper presents results of the first EIF Business Angels Survey, a survey among Business Angels (BA) who benefited from the European Angels Fund (EAF), an initiative advised by the EIF and providing equity to BAs for the financing of innovative companies in the form of co-investments. The study provides a detailed overview of the respondents’ state of business and market activity as well as their general perception of the European BA market and the required public intervention.

A new USD 2bn venture capital fund

In the past decade, VC firms have increasingly veered into billion-dollar fundraising territory. The latest example? Norwest Venture Partners closed its Fund XV on USD 2bn. The mega-fund is the 58-year-old firm's largest vehicle ever, and it underscores how venture fundraising is working to keep up with the soaring deal sizes across all stages.

Qnami (Basel) completed a CHF 2.6m seed money round

Qnami uses quantum mechanics to perform nanometer scale surface analysis with its quantum microscope. The Basel start-up has completed a CHF 2.6m with a French VC fund that specialises in deep-tech, as well as investiere, ZKB and the German High-Tech Gründerfonds.

startupticker.ch

Clean Sweep for Enway: 6m EUR Seed Round

While technology is advancing rapidly, many use cases for autonomous mobility are still hard to commercialize due to regulatory restrictions and additional safety requirements in public spaces. Enway, however, is initially targeting a market that can be immediately commercialized: autonomous mobility for special purpose vehicles on private grounds, like warehouses, industrial facilities and private parking lots. Collaborating with traditional manufacturers, the company is building the software and technology to make these vehicles autonomous.

Biotech Raises USD 100m to Test Pig to Human Transplants

EGenesis, a biotech company working to alleviate the shortage of organs available for transplants, raised USD 100m in new funding for its program that genetically edits organs from pigs and other animals so that they can be safely used in humans. The investment, led by Fresenius Medical Care Ventures, brings funding for eGenesis to USD 138m, with participation from new investors including Bayer AG’s investment arm, Leaps by Bayer, and Wellington Partners. Existing investors also participated including Arch Venture Partners and billionaire venture capitalist Vinod Khosla’s Khosla Ventures.

Quadia invests in Poulehouse

Quadia (Geneva, Switzerland) announced its latest investment in Poulehouse alongside investors Normandie Participations and Caisse d'Epargne Normandie Innovation. Founded in 2017 in France, Poulehouse aims to redefine the standards in the production, farming, and distribution of eggs and egg products. The ethical approach of the "egg that does not kill the chick" puts an emphasis on animal wellbeing in the sector while reducing negative environmental impacts.

EU launches EUR 2bn AI and blockchain fund

The European Commission and European Investment Fund are launching a EUR 2bn fund to invest in fundamental technologies amid fears that the US and China are pulling ahead in areas such as AI and blockchain.

Carvolution closes Series B to fuel further growth

Only 9 months after their last financing round Carvolution (Redalpine Capital III) raises a CHF 11m Series B to accelerate growth of their car-subscription service. The round was led by Redalpine and Armada with participations of new strategic investor Mobiliar and current shareholders. Mobiliar is also entering into a strategic partnership with the Bannwil based mobility startup.

Private Equity – Swiss News

Partners Group publishes private markets outlook for 2020

Introducing the report, Stephan Schäli, Partner, Chief Investment Officer, Partners Group, says: "Against a challenging backdrop of low growth and geopolitical uncertainty, we believe offense is the new defense in private markets investing. The main driver of returns in private markets today is growth, therefore we seek opportunities to build resilience instead of buying it by focusing on assets with value creation potential in sub-sectors with above-average growth rates. Paying close attention to market dynamics and applying a hands-on approach to governance and value creation are key to growing these assets during our ownership and positioning them to withstand business cycles."

download a copy of the report

Spice PE - 3Q19 NAV Update

The NAV of Spice Private Equity Ltd. reached USD 191.9m (USD

35.93/share) as of 30 September 2019, compared to 30 June 2019 value of USD 200.3 million (USD 37.53/share). The share price increased by 2.7% from USD 22.00 as of 30 June 2019 to USD 22.60 as of 30 September 2019. As a result, NAV discount decreased to 37.1% from 41.4% in 3Q19.

Click here for the Full Report

Montana Capital Partners zu «Aktivem Portfoliomanagement durch Private Equity Secondaries»

Der Artikel "Aktives Portfoliomanagement durch Private Equity Secondaries" in der Oktoberausgabe des Absolut|report Magazins ist u.a. von Christian Diller, Montana Capital Partners (Baar, Switzerland), verfasst. Er gibt einen Überblick über die neusten Entwicklungen und Trends am Sekundärmarkt und analysiert das Rendite- und Risikoprofil von Sekundärfonds.

Der Private Equity Sekundärmarkt ist mit einer Wachstumsrate von mehr als 20% pro Jahr über die letzten 10 Jahre einer der am stärksten wachsenden Teilmärkte des Private Equity Gesamtmarktes. Einer der Gründe dafür ist das attraktive Rendite- und Risikoprofil von Sekundärfonds. Diese haben durchschnittlich im Vergleich zu Buyout-Fonds historisch einen höheren Nettp-IRR erzielt. Während umgekehrt der Netto-TVPI-Multiple zwar tiefer, das Risiko von Sekundärfonds allerdings signifikant geringer war als jenes von Buyout-Fonds. Quelle für den Artikel: [email protected]

Apax said to consider USD 4.4bn Unilabs sale

Private equity major Apax Partners is said to be mulling over the sale of its Swiss diagnostic services company Unilabs.

SUSI funds solar and battery storage project in Australia

SUSI Partners is investing up to AUD 50m in an Australian solar and battery systems project being developed by Starling Energy Group. The Swiss infrastructure fund manager said its Energy Storage Fund is investing the project which will be deployed gradually, enabling participants from communities across Western Australia to generate and consume their own clean power for up to 90% of their overall needs.

Castle Private Equity AG - October 2019 NAV decreased by 0.5% to USD 14.79 per share

CastlePE's net asset value decreased by 0.5 per cent during October. In a month where few new valuations were considered, the monthly investment result was driven by the mark to market adjustment of public positions. The investment result was improved by the 2.3 per cent increase in the value of the Euro versus the Dollar during the month resulting in an unrealised currency gain of USD 0.9 million.

The monthly report

Private Equity – Int. News

Media Monitoring

Vielzahl an Optionen

Market Conditions to Fuel Private Equity Portfolios, ESG Demand: E&Y Report

Private equity funds can help your portfolio scale heights

Walgreens may get scooped up in the largest private equity deal in history, report says

Good News for Everyone - Private Equity is Set to Grow at the Stock Market's Expense

Private equity has been booming, but public markets are starting to push back

Democrats Call American Investment Council and Ernst & Young Private Equity Report A Sham

Alexandria Ocasio-Cortez weighs in on the Taylor Swift music feud and takes aim at private equity

Could Private Markets Threaten the ETF Industry?

Significant Retail Job Losses At Private-Equity Backed Companies Should Worry Us

Private equity group KKR cashes out completely from Trainline

How Private Equity Firms Are Coping With More Competition

Private equity funds can help your portfolio scale heights

Mind the gap: Bridging Latin America's infrastructure deficit through private capital AIIB expects investment worth USD 100m a year in India's renewable projects

China has nearly 7000 official PPP projects underway

Opinion: Private Equity Is The Enemy Of Working People

SoftBank's Bad Bets Are A Sign That Private Equity Will Lead The Next Meltdown

This Is a Horror Story: How Private Equity Vampires Are Killing Everything

Private Equity Spies Profit in India's Distress

Walgreens reportedly mulling massive private equity buyout

Private Equity als Muss-Investment

Eurazeo Growth eröffnet erstes Deutschlandbüro

Warburg Pincus sieht Brexit als enorme Chance für Deals

How private equity can fund the fight against climate change

Ripe for a fall: private equity debt rush stokes bond market fears

Why private equity is eroding the IPO market

Picking a Private Equity Manager Has Gotten Easier

Permira with a EUR 11bn buyout fund

Permira has closed its latest buyout fund on its EUR 11bn hard cap.

TPG Capital with another large buyout fund

TPG Capital raised USD 14.2bn in the final close of its eighth flagship fund and a sidecar vehicle focused on healthcare investing.

KKR Is Said to Pursue Record USD 2.5bn Buyout Fund for Asia

KKR & Co. is seeking to raise USD 12.5bn for its fourth buyout fund targeting

Asia, a record size for the region, according to a fundraising document seen by Bloomberg. The New York-based firm began marketing the fund this week, the document shows. The proposed amount is about a third greater than its previous USD 9.3bn fund raised in 2017.

KKR raises a USD 15bn target Asia-focused buyout fund KKR has set a USD 15bn target for the firm's next Asia-focused buyout fund, with plans to begin fundraising in 1Q20 and hold a first close by June. The vehicle would be KKR's largest ever raised in Asia and become the largest buyout fund ever raised in the region by a US investor, per PitchBook data. Elsewhere, the KKR just closed its latest flagship Europe fund on EUR 5.8bn recently. Source: Reuters.

Source

3G Capital Is Said to Bid for Thyssenkrupp Elevators

3G Capital, the private equity firm that’s made a name for itself buying food giants from Kraft to Burger King, is eyeing a new frontier: elevators. The Brazilian-American investment firm with a touch of Switzerland is among suitors that submitted bids for Thyssenkrupp AG’s elevator unit by last week’s deadline. The business could fetch more than EUR 15bn.

EQT's excellence in operational growth

EQT Partners has sold a 9.9 per cent stake in Anticimex to

Singapore-governed GIC, giving the global pest control business a valuation of around EUR 3.6bn. EQT used its EUR 4.8bn Fund VI to buy Anticimex back in 2012, and went on to support the company in acquiring over 200 bolt-ons. During EQT's ownership, Anticimex quadrupled its revenue and increased its operating earnings six-fold, according to an official statement. With GIC's backing, EQT has planned to internationalize the company's shareholder base and accelerate its regional expansion in the Asian markets.

Blackstone Takes Controlling Stake in Owner of Dating App Bumble

Blackstone Group is taking a majority stake in the owner of dating app Bumble as part of the private-equity giant's broader push to invest more in fast-growing companies.The deal values dating-site parent company MagicLab at about USD 3bn.

BC Partners Is Said to Weigh Record EUR 8.5bn Fundraising

Private equity firm BC Partners is considering raising its biggest-ever fund as early as next year. The London-based firm has held preliminary talks with investors about raising about 8.5bn for its 11th pool of capital. The firm won’t be the only fund coming to market in 2020. CVC Capital Partners is also targeting to raise a record amount of more than EUR 18bn for its flagship fund, while EQT could raise as much as EUR 14bn.

Former KKR execs pull in nearly €1B for debut infrastructure fund

Asterion Industrial Partners, a Spanish infrastructure investor launched by a group of ex-KKR executives, has surpassed the target for its inaugural fund in less than a year. The vehicle reflects the growing appeal of infrastructure as an asset class across Europe, with the industry raising a record amount of capital by firms this year.

BID Equity closes its debut fund at the EUR 125m hard cap

BID Equity, the DACH-region software buyout specialist, has closed BID Equity Fund II at its hard cap of €125 million in its second and final close, with a significant additional commitment by the BID Equity team.

press release

Private credit investment set to increase

Research conducted by the Alternative Credit Council (ACC), together with global law firm Dechert, has found that private credit is expected to continue to expand across both existing strategies and into new markets. This research, published in the duo’s fifth annual Financing the Economy paper, draws together insights from 30 industry leaders and data from 60 firms managing close to $400 billion in private credit assets and identifies key trends that will define the future of private credit. According to the findings, 68% of survey respondents plan to increase their lending in the SME/mid-market space, despite the sense that this core market is suffering from saturation. Distressed debt, real estate and asset-backed lending are among the other more popular growth strategies.

Italian SMEs receive €3bn of investment

Alternative finance for SMEs continues to grow in Italy, with a total of EUR 3bn invested over the past year - up from EUR 2.3bn a year earlier. Venture capital and private equity funds drove the increase, more than doubling their overall contribution.

Corporate Finance

Valuation Market Essentials Q3

We are pleased to announce the Q3 2019 edition of the EY Valuation Market Essentials, the publication with relevant market data for Switzerland, incl. analyses for the banking and insurance industry.

EY Valuation Market Essentials

Book of the Week

IFZ Retail Banking-Studie 2019: Zukünftige Relevanz von Technologien im Retail Banking unklar

Bei Banken herrscht noch immer Unsicherheit, welche Technologien zukünftig für sie relevant sind. Das zeigt die Studie zum Schweizer Retailbanken-Markt der Hochschule Luzern. Die Studie untersucht zudem Kosten und Auswirkungen der neuen Liquiditätsvorschriften, analysiert die Performance von Retailbanken-Aktien und kürt auch in diesem Jahr die aus Kennzahlensicht beste Retailbank.

weitere Informationen und Bestellung

Jobs

How to publish a job ad

On this place your Job ad could be published.

If you are interested please send an e-mail with your job ad, the company logo and a short description about the Job and/or the Company to [email protected].

for SECA Full Members free of charge

for SECA Associate and Individual Members CHF 100.- / 2 editions

for Non-Members CHF 200.- / 2 Weeks

Agenda

4th Annual Private Wealth Switzerland Forum - Zurich

Tuesday, 10 December 2019

The 4th Annual Private Wealth Switzerland Forum–Zurich brings together more than 250 attendees including 150 leading high-net-worth capital allocators from Switzerland and beyond, including leading private banks, wealth managers and family offices. Our agenda will cover asset allocation, alternative investing, asset protection as well as regulatory compliance and an outlook of the financial markets and the global economy.

SECA members profit from a 20% discount using the code PWSECAEU20. Are you interested? Get your tickets here!

IPEM 2020

IPEM is the world's largest private capital merktplace gathring the industry's complete value chain. As IPEM partner, SECA is pleased to offer our members a special discount of 10% on the participant pass. Registration possebilities will follow soon.

more information

SuperReturn International

25 - 28 February 2020, Berlin

The 2020 agenda boasts brand new formats, illicit candid discussions, brilliant incidental networking, engaging conversations - and insights that are well worth your time. Do not miss it! SECA members profit from a 10% discount using the VIP code FKR2487SECA. For further information and registration, please visit SuperReturn International's website.

Upcoming SECA Events - save the date

SECA Evening Event: Venture capital for family offices, insurance firms and pension funds Tuesday, 28 January 2020, Geneva

SECA Traiing Romandie: Private equity: introduction et approfondissement Mercredi 22 janvier 2020, 09:00-17:30, ISFB, Carouge

SECA Training Romandie: Due diligences financières Mardi 4 février 2020, 09:00-12:45, ISFB, Carouge SECA Training Romandie: Valorisation des entreprises Mardi 4 février 2020, 13:45-17:30, ISFB, Carouge

3. SECA Workshop Venture Capital 15. & 16. Mai 2020, Zürich

Save the Date: SECA Conference Friday, 3 July 2020, SIX ConventionPoint, Zurich

More information will follow in due time. Please see also on www.seca.ch - Events.

Editor

SECA eNewsletter is a free online newsletter published by Maurice Pedergnana, Managing Director of the SECA Swiss Private Equity & Corporate Finance Association, received by more than 3'000 email addresses. More information: www.seca.ch or +41 41 757 67 77 (Andrea Villiger). The eNewsletter archive service is available only for SECA members.