eNewsletter no. 521

21 May 2020
   

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Dear Reader

You really have to remember the old fairy tale these days: The princess pricked her finger while she was stitching a nice pattern on her handkerchief. A blood drop fell, and immediately the world came to a standstill. The princess went rigid and with her everything else. The fire stopped burning, the fish stopped swimming, the pigs stopped grunting, the flowers stopped growing, the bees fell silent in mid-air, the cook’s hand never touched the head of the kitchen boy.

A thorny thicket of rose bushes grew around the palace, and it took a hundred years before a prince slashed his way through it and renewed life.

What happened after the long shutdown? People and animals and flowers went back to their business, the bees buzzed on, the kitchen boy got slapped, and the fire resumed its burning.

Have a nice weekend,
Maurice Pedergnana

 
 
 

SECA

 
   

SECA Webinar: Blockchain - Finding Diamonds in the Rough: Four Use Cases

Tuesday, 26 May 2020, 5pm, Online

In times of crisis and radical uncertainty, the search for alternatives that can improve everyday life intensifies. The coronavirus pandemic and its severe social, political and economic repercussions give digital solutions one more chance to shine. This SECA webinar, offered in cooperation with the Crypto Valley Association and Rock Lake Advisors, provides insights into this emerging asset class, including four investible opportunities.

 
 

36th SECA Annual General Meeting - Online

Thursday, 28 May 2020, 17.30 - 18.00, Online

We are glad to invite you to the 36th SECA Annual General Meeting. This year's AGM takes place online on the platform Zoom.

 
 

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.

 
 

3. SECA Workshop Venture Capital

Bitte beachten Sie, dass der 3. SECA Workshop Venture Capital auf Grund der aktuellen Lage in den Herbst 2020 oder Frühling 2021 verschoben wird. Die neuen Daten werden so bald wie möglich bekannt gegeben.

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.

 
 

SECA Seminar: Private Markets

Diverse Daten - Bern, Genf, Rotkreuz, Vaduz, Zürich

Institutionelle Investoren können Private Markets nutzen, um ihre Rendite zu steigern und durch zusätzliche Diversifikation ihr Risiko zu optimieren. Doch wie funktionieren Investitionen in Privatmarktanlagen? Das SECA Seminar gibt einen Einblick in diese breite, vielfältige Anlageklasse.

Sollte es zu gegebener Zeit nicht möglich sein, das Seminar physisch anzubieten, werden wir ein verkürztes Webinar durchführen.

 
 
 
 

Venture Capital

 
   

Media Monitoring

 
 

Berner Start-ups, die Sie kennen müssen!

Der Start-up-Standort Bern hat ebenfalls so einiges zu bieten. Die aktuelle Bernpunkt-Ausgabe gibt einen Einblick in die Start-up-Szene Bern , indem sie 20 erfolgreiche Berner Start-ups vorstellen.

 
 

Standorte & Regionen 2020 – Mehr als nur Krise

Die Sonderausgabe des VentureCapital Magazins ist eben erschienen.

 
 

Die Kachexie-Erkennung von Adiposs und die Roboterhandschuhe für Personen mit Behinderung von Emovo Care gewinnen jeweils 150’000 CHF

Adiposs und Emovo Care, zwei Unternehmen mit Sitz in Genf bzw. Lausanne, wurden letzte Woche in der Schlussphase des ersten Life Sciences Special Tracks mit je 150’000 CHF ausgezeichnet. Die Jury von Venture Kick unterstützt die beiden Schweizer Startups in der Entwicklung ihrer Innovationen: neuartige Scan- und Nanotechnologien, die die Überlebensraten von Millionen von Krebspatienten erhöhen sollen sowie eine Roboter-Orthese, die Menschen unterstützt, die Schwierigkeiten haben, ihre Hände zu benutzen.

 
 

Meet industry leaders and top fintech investors

Venture Leaders Fintech brings 10 innovative Swiss fintech startups to Hong Kong from November 1st to 7th, 2020 for a week of intensive networking, business development and investor pitching. The participation at the Hong Kong Fintech week will also be included. Hence, this will be an exclusive opportunity to get to know investors and international industry experts as a member of the "Swiss National Startup team". Until July 15th, 2020 startups will be able to apply for one of the 10 highly coveted slots. The program (worth about 10.000CHF) is co-organized by Venturelab and swissnex China and supported by EPF Lausanne, ETH Zurich, IMMOMIG, PostFinance, walderwyss and Canton Zurich, facilitating the participation free of charge for the startups.

 
 

PXL Vision secures CHF 4.6 Million seed round

ETH spin-off PXL Vision has developed an AI-based software platform to deliver secure, automated identity verification. The company has now received CHF 4.6 million in a seed financing round to expand its technology and grow internationally. SIX Fintech Ventures led the round.

 
 

Zenjob secures USD 30 million in Series C funding

When Redalpine first invested in Zenjob (Redalpine Capital  III), the vision they shared with the founders was to bring a fully automated solution to a huge and largely off-line market that would outperform existing offerings in speed and ease for customers and quality of personnel supplied. Now, more than three years on, Zenjob is active in 14 German cities and has just successfully secured a Series C funding round of USD 30m. The lead investor is Forestay Capital, who is joined by existing investors Redalpine, Acton Capital, Axa Venture Partners, and Atlantic Labs.

 
 

Silicon Valley Bank's latest market report

Growth came to a halt as COVID-19 became a global pandemic, says the latest market report of Silicon Valley Bank. Private markets moderated as investors continue to assess the damage and triage portfolios. With a tougher fundraising environment ahead and the IPO window closed for now, investors have urged founders and entrepreneurs to cut expenses, revise forecasts and utilize debt to extend the cash runway to weather the storm.

Read Silicon Valley Bank's latest State of the Markets report to learn more from the bank’s assessments and outlooks.

 
 

Who shall survive, and who shall fail?

Hundreds, if not thousands, of venture-backed companies are staring at dire conditions—and a real threat of running out of money. Revenue has been challenged, and cash reserves are dwindling. This is the cohort of startups confronting whether to rely on venture capitalists for a lifeline or request a hand from the government. It's sobering to step back and take note of just how many companies could soon be on the brink of collapse. To get a sense of the enormity of the problem, take a look at those facing the most pressure to shore up cash on hand:

  • Startups usually line up funding rounds to last them 12 to 24 months. Assuming that fundraising cycle, it turns out there are roughly 7,200 US companies that are due to recharge their bank accounts with fresh capital, based on my culling of PitchBook's data. A majority of them did their last fundraising 12 to 18 months ago.
  • Companies whose latest financing was largely arranged or secured in the past six months are seemingly at an advantage vs. the ones that are just now returning to the well.
  • But raising new funding in this climate has gotten much harder as the pandemic crisis drags on. Venture capitalists are getting ever more selective about where they place bets now, and more of them are demanding more protections for the few deals they're willing to make.
  • Each month that the public health emergency drags on results in a dramatically higher risk of startups flaming out from a cash crunch, according to Ilya Strebulaev, a finance professor at the Stanford Graduate School of Business. Most economists say we're entering the worst decline in generations.
  • "If it continues like it continued in 2001, more than a year," Strebulaev said, "there will be a lot of startup failures—a lot of them."
 
 

Start-up financing in crisis

European start-ups are expected to see a funding slump in 2020. The continent's VCs are sitting on record levels of dry powder, having raised EUR 20bn in the past two years, however, these groups only make up around a third of the total investment in start-ups. You will hear more about the situation in Europe and in Switzerland on our SECA AGM from Michael Sidler, head of the SECA Chapter Venture Capital and Managing Director of Redalpine Capital.

 
 

N26 extends its Series D funding round by more than $100M

N26 (Redalpine Capital II) announced an extension of its Series D funding round to $570M, with a further increase of more than $100M. Today at a valuation of $3.5B, the challenger bank is one of the highest valued and most well-funded FinTech companies globally. The funds will be used to accelerate N26’s product development and strengthen its footprint in its 24 European markets and the US, where the demand for mobile banking is higher than ever before. The Mobile Bank is also laying the groundwork for its next market entry and is in the process of applying for a local FinTech license in Brazil.

 
 
 
 

Private Equity – Swiss News

 
   

Swissbit continues its growth trend with Ardian as a strong partner

The Swissbit management team and Ardian, a world leading private investment house, announced today that they have signed an agreement to acquire Swissbit Holding AG (“Swissbit”) based in Bronschhofen, Switzerland. The company is a leading global manufacturer of storage and embedded IoT solutions with its own production facilities in Germany.

 
 

Liechtensteiner LGT wird aufgespalten

Der Liechtensteiner Finanzdienstleister LGT wird Anfang 2021 in drei eigenständige Unternehmen mit Schwerpunkten in Private Banking, Asset Management und Impact Investing aufgeteilt. LGT Private Banking, LGT Capital Partners und LGT Lightstone würden in Zukunft direkt von der Stiftung Fürst Liechtenstein gehalten, teilte das Unternehmen nimmt.

 
 

Small and Mid-Market Private Equity: The calm during the storm

  • COVID-19 is set to send the global economy into a recession deeper than that seen during the GFC.
  • During a crisis or recession, small and mid-market companies have historically been more resilient than their larger counterparts.
  • History shows that it is at the small end of the market, rather than among the biggest companies, that private equity deals with the highest return potential are to be found and we expect this to continue to be the case.
 
 

Patrimonium mit neuem Auftritt

Seit März 2020 und damit nach fast 15 Jahren des Bestehens präsentiert sich Patrimonium mit einer überarbeiteten Corporate Identity, einem neuen Slogan und einer neuen Website. «Your Partner in Private Markets» drückt perfekt unsere Positionierung und die Rolle aus, die Patrinomium auf dem Markt spielen wollen. Seit der Gründung und durch Höhen und Tiefen hindurch hat die Gesellschaft nie aufgehört, alle wichtigen Anlageklassen auf Privatmärkten in der Schweiz, Deutschland und Österreich zu durchsuchen, um Hunderte von Investment-Gelegenheiten zu identifizieren, zu strukturieren und zu verwalten – und sie selbst für anspruchsvollste Anleger geeignet zu machen.

 
 

ppcmetrics: COVID 19 and Private Equity

PPCmetrics hält den Einfluss des Coronavirus auf Private Equity in kurzen Worten fest. Die beiden wichtigsten Folgerungen sind: (1) Je nach Phase des Fonds sind die Herausforderungen unterschiedlich. Hohe offene Kapitalzusagen stellen im aktuellen Umfeld eine Chance dar, insbesondere bei jüngeren Fonds, welche es einfacher haben, mittelfristig gute Investments zu finden und von der Opportunität von möglichen Fehlbewertungen zu profitieren vermögen. (2) Für die Langfrist-Investoren führt die positive Eigenschaft der Illiquidität von Private Equity wie bei Immobilien zu einer Glättung der Bewertungen und damit zu einer Stabilisierung des Gesamtportfolios.

 
 

HBM Healthcare Investments erzielt im Geschäftsjahr 2019/2020 einen Jahresgewinn von CHF 183 Millionen

HBM Healthcare Investments erzielte im Geschäftsjahr 2019/2020 eine anhaltend hohe Wertsteigerung mit einem Gewinn von CHF 183 Millionen und einem Anstieg des inneren Werts um 14 Prozent. Der Aktienkurs nahm überproportional um 17 Prozent zu.

 
 
 
 

Private Equity – Int. News

 
   

Media Monitoring

 
 

Investing in Europe: Private Equity activity 2019

With data on more than 1,400 European private equity firms, covering 86% of the €782bn in capital under management in Europe, Invest Europe offers the most comprehensive review of fundraising, investment and divestment trends for European private equity and venture capital activity.

 
 

The Historical Impact of Economic Downturns on Private Equity

In light of recent market volatility, Neuberger Berman’s Private Equity and Institutional Solutions teams analyzed historical private equity performance during two recent periods of market distress. This analysis is to gain perspective on current conditions with the understanding that the dynamics behind COVID-19-related volatility may be quite different from the past. Given the historical experiences, they believe that private equity broadly is positioned to weather the storm and take advantage of opportunities that arise,

 
 

AAC Capital sells Corilus to Gilde Buy Out Partners

AAC Capital (“AAC”), Gilde Buy Out Partners (“Gilde”), and the management of Corilus, a leader in medical software solutions for the primary care market in Belgium, are pleased to announce that Gilde has reached an agreement to acquire Corilus from AAC. Financial terms of the transaction are not disclosed.

 
 

Serie A as an investment?

European private equity giant CVC Capital Partners is in talks to buy a minority stake worth up to EUR 2bn in Serie A, the top Italian soccer league. The deal could reportedly value Serie A at some EUR 10bn, providing an influx of cash to a league that has been on hiatus for nearly two months amid the coronavirus pandemic.

 
 

EQT extends runway for EUR 14.8bn fund as virus batters fundraising in Europe

In its Q1 earnings report, Sweden's EQT revealed that it may take the firm longer than first expected to finish raising its ninth flagship fund, which has a target of EUR 14.75bn. Fundraising isn't just slowing down at EQT, either. Three months into the year, private equity fundraising in Europe was just over 10% of the way to reaching last year's record-setting figure, according to PitchBook's Q1 2020 European PE Breakdown.

 
 

What Happens When Private-Equity Firms Start Making Deals Again?

The coronavirus has caused much of the world to press a giant pause button—on social gatherings, on routine medical procedures, on sitting in classrooms. And private equity is no exception. Deals have been halted as firms reassess the business landscape and their own finances, and concentrate on the health of their portfolio companies. “The focus has shifted away from deal making to crisis mode,” explains Alex Schneider, cofounder of Clover Capital Partners, a private-equity firm that specializes in acquiring and investing in small businesses. He is also an adjunct lecturer of innovation and entrepreneurship at the Kellogg School. “PE firms are trying to focus on providing resources, advice, contingency planning, and liquidity to their existing businesses rather than on new opportunities.”

 
 

GCA Altium MidCapMonitor: Strong start of the year in Q1 for German LBO market, corona-related reluctance expected for Q2 and Q3

Despite the first quarter of the year traditionally performing weaker, the German LBO market has this year started off strongly, with 22 transactions continuing the positive trends of the previous quarters. Adverse effects from the coronavirus and the Europe-wide lockdown stipulated to contain the spread of the virus will only be visible from the second quarter onwards.

 
 

Capital Dynamics Completes Acquisition of Puerto Real 1 Solar Project

Capital Dynamics, an independent global private asset management firm, today announced that its Clean Energy Infrastructure ("CEI") business completed the acquisition of a 100 percent equity stake in the 133 MW Puerto Real 1 project from WElink Group ("WElink"), a leading global developer of renewable energy solutions. Terms of the transaction were not disclosed.

 
 

US Treasurer bans listed fund commissions

US  Treasurer Josh Frydenberg has announced he is closing a loophole to prevent mis-selling of listed investment funds to retail investors, by banning sales commissions paid by fund managers to financial advisers and stockbrokers. Retail investors bought so-valley LICs and LITs with exposure to equities, hedge funds, private equity, direct loans and leveraged junk bonds. One of the final LITs to list in November was global investment giant KKR's listed debt fund, which paid stockbrokers and advisers total selling fees of more than $20 million. KKR's high yield debt fund has lost 31 per cent from its $2.50 float price.

 
 

NAVs - more truth after Q2/20 or probably after Q4/20

A large number of companies in the LPE sector have published actual NAVs with valuation estimates as at 31/3/20, bit what do these figures really mean? Some of the US PE managers like KKR, Apollo, Carlyle have disclosed their underlying PE fund performance in Q1/20. There is a wide range from 58% at Riverstone Energy to just 2% at Healthcare focused Investor AB. Blackstone, one of the biggest PE managers, reported a fall of 22% in its core PE funds although ex Energy, the core PE funds were down 11% overall, pretty like The Partners Fund run by Partners Group.

Pantheon is the only fund of funds to have announced. Fund of Funds usually have a three or four month lag before they have received all the underlying manager valuations and Pantheon has helpfully estimated what it thinks the likely Q1/20 impact will be, though we will not know how accurate its estimates are for a few months, but its proactive approach is to be welcomed.

 
 
 
 

Corporate Finance

 
   

Covenant-Brüche: «Das Härteste kommt noch»

Bei einbrechenden Umsätzen saugen sich viele Unternehmen mit Liquidität voll. Die Folgen für die Finanzierungsstruktur können verheerend sein. Was CFOs bei Covenants und Sicherheiten jetzt unbedingt im Blick haben müssen, ist hier umschrieben.

 
 
 
 

Mergers & Acquisitions

 
   

SS&C Intralinks Deal Flow Predictor for Q3 2020

This special work from home edition of Intralinks report considers the impacts of the COVID-19 virus on dealmaking and also features:

  • A spotlight on the rise of M&A-related shareholder activism
  • An interview with JD Capital’s director of global fund management Sen Zhang on the current private capital boom
 
 

European M&A Report

The latest edition of the European M&A Report captures the market before the pandemic froze the world's economy. The analysts look beyond Q1 M&A data to the future of 2020 and how dealmakers might proceed as they shift priorities and navigate challenged logistical processes.

 
 

Dealmaking in April Drops to Lowest Point Since 2004

April was the worst month for deals globally since 2004, with a smaller volume announced even than during the financial crisis. Mergers, acquisitions and related investments totaled USD 93.54 billion for the month, according to data compiled by Bloomberg. That was barely a third of the total from March when the coronavirus pandemic took hold, and the worst month since September 2004, the data show.

 
 
 
 

Management Buyout

 
   

Dätwyler verkauft das Civil-Engineering-Geschäft an Management Team

Dätwyler hat am 28. April 2020 das Civil-Engineering-Geschäft an Vertreter des bestehenden Managements verkauft. Unterstützt wird der Management Buy-out durch die Hamburger Beteiligungsgesellschaft BPE, die seit über 20 Jahren auf Transaktionen im deutschen Mittelstand spezialisiert ist. Der Vollzug des Vertrags ist am 4. Mai 2020 vorgesehen.

 
 
 
 

Book of the Week

 
   

NEW SECA Booklet - Anlageklasse Private Markets - Sammelband

Diverse Factsheets von Unternehmungen geben eine Übersicht in die verschiedenen Anlageklassen.

Private Markets (oder Privatmarktanlagen) sind ein Überbegriff für Kapitalanlagen, die nicht über eine Börse öffentlich verfügbar sind. Zu Private Markets zählen Investitionen in Firmen, die nicht an einer Börse kotiert sind (Private Equity), Anleihen, die nicht an einer Börse kotiert sind (Private Debt), sowie nichtkotierte Infrastrukturanlagen (Private Infrastructure) und Immobilienprojekte (Private Real Estate).

 
 
 
 

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 info@seca.ch.

  • 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

 
   

Webinar: Impacts of COVID-19 on the DACH M&A market

Tuesday, 26 May, 13.30 CET time

The outbreak of the Coronavirus continues to spread throughout the globe, directly impacting the European and DACH M&A market. Join Intralinks for this online M&A briefing event, where they will explore the impacts of the pandemic in the DACH M&A Market,

 
 

Private Debt Germany Forum 2020

8 & 9 October 2020, München

We are delighted to be partnering with the leading regional conference focused on private debt investment for investors in the DACH region and wider Europe, the PDI Germany Forum, on 8-9 October in Munich. SECA members save 10% by using the exclusive discount code Germany20-SECA.

 
 

Investor Summit Liechtenstein 2020

25. November 2020, Schaan

Der Investor Summit Liechtenstein vernetzt seit zehn Jahren Investoren und Entscheidungsträger mit innovativen Startups und Wachstumsunternehmen. Die nächste Ausgabe am 25. November 2020 bietet zwei Top-Speaker: Der bekannte Investor Carsten Maschmeyer, Geschäftsführer der Maschmeyer Group und Mentor in der TV-Sendung „Höhle der Löwen“, und S.D. Prinz Max von und zu Liechtenstein, CEO der LGT Group, geben exklusive Einblicke in ihre Investmenttätigkeit.

Der Ticketpreis beträgt 290 Franken. Early-Bird-Tickets sind bis zum 31. Mai zum Preis von 230 Franken erhältlich (begrenztes Angebot).

 
 

Swiss Private Equity Conference

2 December 2020, Zürich

The 10th Anniversary of the Swiss Private Equity Conference provides the most unrivalled networking opportunities in the Swiss Private Equity market. On May 14th, 2020, Limited Partners, General Partners and CxOs will meet in Zurich for a day focused on deal origination. Join us and meet the top of the private equity community. Our network has access to an exclusive promotional code SECA_Loyalty for you to secure your ticket at a 20% discount. For more information, please contact info@pe-insights.com.

 
 

Upcoming SECA Events - save the date

SECA Education

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

 
 
 
 

Editor

 
   

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.

 
 
 
 

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