Reporting by Shivani Tanna in Bengaluru; Editing by Susan Fenton
Taiwan-based Foxconn, the world’s largest contract manufacturer of electronics, has rapidly expanded its presence in India by investing in manufacturing facilities in the south of the country as the company seeks to move away from China.
V Lee, Foxconn’s representative in India, in a LinkedIn post to mark Indian Prime Minister Narendra Modi’s 73rd birthday, said the company was “aiming for another doubling of employment, FDI (foreign direct investment), and business size in India” by this time next year.
He did not give more details.
Foxconn already has an iPhone factory in the state of Tamil Nadu, which employs 40,000 people.
In August, the state of Karnataka said Foxconn will invest $600 million for two projects in the state to make casing components for iPhones and chip-making equipment.
The company’s Chairman Liu Young-way said in an earnings briefing last month that he sees a lot of potential in India, adding: “several billion dollars in investment is only a beginning”.
Our Standards: The Thomson Reuters Trust Principles.
Foreign Investment in Europe’s Big Startups ‘Grinding to a Halt’ – BNN Bloomberg
(Bloomberg) — Overseas investment into Europe’s latter-stage technology startups dropped to a four-year low, according to a report from venture capital firm Atomico.
That drawback came primarily from major investment funds, such as Tiger Global, Coatue Management and SoftBank Group Corp.’s Vision Fund, which in recent years plowed record amounts into startups across the globe. In 2021, these “crossover” funds — firms that invest in public and private companies — made 82 new investments in Europe, according to the report. So far this year, they’ve made four.
“You’ve seen a dramatic pullback, almost a grinding to a halt of their activity,” said Tom Wehmeier, an Atomico partner who helped prepare the report released Tuesday.
Venture capital has dried up everywhere for more established startups, held down by rising interest rates and sluggish public markets. The report estimates that Europe is on pace for $45 billion in tech investing in 2023, a “steep drop” from the $82 billion injected in 2022.
That decline is particularly noticeable for growth-stage companies. North American funds accounted for a quarter of the total invested into these European startups so far in 2023, down from 39% in 2021, according to the report. (The report excluded biotech startups, debt investment and secondary transactions.)
Still, the report found that Europe forms more new startups than in the US and hosts more “highly skilled artificial intelligence professionals.” While exit opportunities for European startups are “muted,” the report estimates that more companies are ready for acquisitions or public offerings in 2024 than in the last five years combined.
Many of those companies will not have the foreign capital that flowed so freely a few years ago. “It emphasizes the need for Europe to build its own base of dedicated and stable capital,” Wehmeier said. “There’s clearly a gigantic opportunity here.”
–With assistance from Mark Bergen.
©2023 Bloomberg L.P.
Norway's $1.5 Trillion Wealth Fund Recommends Adding Private Equity – Financial Post
(Bloomberg) — Norway’s $1.5 trillion wealth fund recommended that private equity be added to its investment portfolio, reflecting a broader shift among large pension and sovereign funds to diversify beyond public assets.
“An increasingly larger share of global value creation takes place in the unlisted market,” Norges Bank Governor Ida Wolden Bache said Tuesday. “We believe that such an opening could give higher returns for the fund over time. We think it will be possible to invest in unlisted equities in a way that meet our expectations on transparency and responsibility.”
The wealth fund, which owns about 1.5% of listed stocks globally, has asked the finance ministry numerous times – most recently in 2018 – to consider adding unlisted companies to its existing portfolio of stocks, bonds, real estate and renewable energy infrastructure. Previous governments have declined to let the fund in on the global private equity market, citing concerns about transparency and management costs.
Read More: Norway Wealth Fund CEO Wants to Invest in Private Equity
It is possible to regulate investments in unlisted equities “in the same way as the fund’s existing unlisted investments,” the fund said in a letter sent to the ministry. If given the green light to proceed, the fund would aim to gradually build up a portfolio of unlisted equity assets, it said.
In March, the government asked the central bank, which oversees the fund, to examine various aspects of unlisted equities as a basis for further consideration. Finance Minister Trygve Slagsvold Vedum will use this feedback, as well as input from parliament, to assess the issue, with a final decision likely to come in the annual white paper early next year.
Read More: Norway’s $1.4 Trillion Fund Mulls Private Equity Options
Speaking to lawmakers in April, the fund’s Chief Executive Officer Nicolai Tangen cited Canada’s pension fund and Singapore’s Temasek Holdings, as examples of other large investors with holdings in unlisted companies.
Assets under management by private equity have grown more than 12% annually since 2010, the fund said in a discussion note published in September. Leverage buyouts, in particular, have outperformed public equities by between 3% and 4% annually on average, the fund said.
“If the fund is permitted to invest in unlisted equities, we will invest primarily in mid-sized and large buyout funds,” Wolden Bache and Tangen said in the letter published Tuesday. “This will enable us to develop good relationships with a select few partners.”
Elsewhere in the world, funds similar to Norges Bank Investment Management invest anywhere between 8% to 30% of assets in private equity, Blackstone Inc.’s global head of private equity Joseph Baratta said in September. The sector also offers new opportunities for influencing how companies tackle sustainability goals, a key priority for the fund, he said at the time.
Still, there are those that argue that private equity adds cost, without offering higher risk-adjusted returns. If lawmakers want to diversify the portfolio and push for higher returns, they would be better served by resetting the 70-30 split of publicly-listed stocks to fixed income, according to finance professor Karin Thornburn, who teaches at both the Norwegian School of Economics and Wharton School of the University of Pennsylvania.
“The success of the oil fund is based on its disciplined investing, holding a broadly diversified portfolio at a low cost,” Thornburn said in an interview Friday. “The fund was early to adopt a passive index strategy that has now become the gold standard of investing,” she said. “Why change a successful concept without a good reason?”
Read More: Biggest Wealth Fund Urged to Explain Formula One Investment
While, politicians and the public has come to understand swings in the global stock market, they have little tolerance for risks they can’t see or judge, she said.
“The risk in private equity investments is not symmetric for the fund: the downside is potentially much costlier than the upside gains,” she said.
UK’s Investment Minister Targets Chinese, Mideast Investment
(Bloomberg) — The British government’s minister for investment says political tensions between Beijing and Washington don’t mean the UK is closed to Chinese money.
While the geopolitical picture remains fraught, Dominic Johnson says he’s still looking to attract Chinese investors, particularly electric vehicle manufacturers.
“I welcome strong business collaboration between the UK and China,” Johnson said on the sidelines of the UK’s Global Investment Summit in London. “China has a very powerful electric car industry. I’d much rather they made great cars in the UK that we could then capitalize from and export,” noting one of his ambitions is “to attract a Chinese car manufacturer.”
While some lawmakers in his governing Conservative party have expressed concern about the prospect of a United Arab Emirates-backed investment vehicle taking over the Telegraph newspaper, Johnson welcomes such interest.
“The UAE is a great partner for the UK,” he said. “We’re an open and liberal economy and where it is possible I welcome their investment.”
Read More: Sunak’s Courting of Business Can’t Hide Shift to Labour
This Vancouver compassion club was saving lives. Then things got political – Vancouver Sun
Parthenon marbles row derails talks between UK’s Sunak, Greece’s Mitsotakis – Al Jazeera English
Foreign Investment in Europe’s Big Startups ‘Grinding to a Halt’ – BNN Bloomberg
Silver investment demand jumped 12% in 2019
Search for life on Mars accelerates as new bodies of water found below planet’s surface
Global Media Markets, 2015-2020, 2020-2025F, 2030F – TV and Radio Broadcasting, Film and Music, Information Services, Web Content, Search Portals And Social Media, Print Media, & Cable – GlobeNewswire
Art22 hours ago
A New Show in L.A. Will Explore the Combination of Art and Fine Dining in the Islamic World
Art19 hours ago
An Ancient Art Form Topples Assumptions about Mathematics
Real eState21 hours ago
Why Plaza Condo Buyers Are Feeling Regret
Tech19 hours ago
OnePlus 12 With Better Camera Gets Teaser Video, Pics Ahead of Dec. 5 Launch
Tech21 hours ago
New OnePlus 12 teaser reveals color options and a relocated alert slider
Tech20 hours ago
Swift 5.9 Backtracer is Now Concurrency-Aware, Improves Readability and Linux Support
Tech18 hours ago
Microsoft Brings AI to Logic Apps (Standard) with Workflow Assistant in Public Preview
Health18 hours ago
This commonly prescribed cancer drug was supposed to help save his life. Instead, it killed him