Exit of Brill and the emptying of Beursplein 5

Brill, the scientific publisher from Leiden, has been taken over by German industry peer, De Gruyter. This has put an end to the listing for this small exchange fund that has been linked to the Amsterdam Exchange since 1896. Brill’s exchange exit is not an isolated event. Eight smaller funds left the exchange or announced their departure throughout 2023 alone. In addition to Brill, drinks company Bols, sleep expert Beter Bed, ski group Snow World and the call centre company Majorel have all been affected. The departures often follow an acquisition by a strategic partner or private equity party.

Some experts see this as a logical consequence of a shift in the market in which an exchange listing is becoming less and less attractive for small companies. Frequently cited reasons for this are the greatly increased regulatory burden, the lack of liquidity and valuation, and the high costs. Companies are therefore increasingly opting for the peace of the private market over the turmoil of the public market.

Although these (possible) departures only involve a relatively limited total market value of €2.8 billion, others are more concerned about this development. They see the emptying of Beursplein 5 as an urgent matter that needs to be resolved quickly. This is important because it mainly relates to small Dutch funds. They are therefore asking for the authorities to take action and are calling on the Amsterdam Exchange to pay more attention to these small (domestic) funds. This would also prevent promising home-grown start-ups from going abroad to ask for financing and therefore being permanently lost to the Dutch capital market.

The recommendation is to change the obligations that small and large funds must meet. The popular opinion is that this would not only benefit the future sustainability and diversity of the exchange, but also significantly contribute to the lasting significance of Beursplein 5 for the Dutch economy. After all, blue chips such as Shell and Heineken were also once listed as small companies. And moreover, there is the question about whether the private equity sector can continue to offer these companies a (safe and risk-free) alternative forever.