Private Equity as an Asset Class

✍ Scribed by Fraser-Sampson, Guy

Publisher: John Wiley & Sons
Year: 2010
Tongue: English
Leaves: 282
Series: Wiley finance series
Edition: 2
Category: Library

No coin nor oath required. For personal study only.

✦ Synopsis

Unfairly reviled, and much misunderstood, private equity differs from all other asset classes in various important respects, not least the way in which its fund mechanisms operate, and the way in which its returns are recorded and analysed. Sadly, high level asset allocation decisions are frequently made on the basis of prejudice and misinformation, rather than a proper appreciation of the facts. Guy Fraser-Sampson �Read more...

Abstract:

✦ Table of Contents

Content: Private Equity as an Asset Class
Contents
About the Author
Acknowledgements
Introduction
1 What is Private Equity?
What is Private Equity?
Fund investing versus direct investing
Co-investment
Terminology
Different types of Private Equity investment
Summary
2. What are Private Equity Funds, and How do They Work?
Capital: Allocated, Committed, Drawn Down and Invested
How do Private Equity Funds Work?
Structure
Cash flow
Investment
Fundraising
Private Equity Funds Distinguished from Other Fund Types
Hedge funds
Infrastructure
Private (Equity) Real Estate. A Note on International IssuesSummary
3. Private Equity Returns --
The Basics
Understanding the J-curve and Compound Returns
Upper Quartile Figures
Median Returns
Average Returns
Pooled Returns
Using Vintage Year Returns for Benchmarking Purposes
Time-weighted Returns
Summary
4 Private Equity Returns --
Multiples and Muddles
Multiples
Distributed over paid in (DPI)
Paid in to committed capital (PICC)
Residual value to paid in (RVPI)
Total value to paid in (TVPI)
Use of multiples in industry research
Muddles, Muggles and Markowitz
Returns
Risk
Liquidity
Summary
5 Buyout. Types of Buyout TransactionMBO
MBI
BIMBO
LBO
Take Private (P2P)
Roll-up
Secondary Buyouts
Other 'Buyout' Activity
PIPEs
How do Buyouts Work?
Characteristics of Buyout
Established businesses
Debt
Earnings
Size
Control
Barriers to entry
Summary
6 How to Analyse Buyouts
Earnings
EBIT
EBITDA
Earnings Growth
Multiple
Multiple increase (sometimes called multiple arbitrage)
Leverage
Recapitalisation
Timing
Modelling and Analysing Buyout Funds
Enterprise value
Summary
7 Buyout Returns
US versus European Buyout
Buyout skill bases
Imperfect markets
Earnings multiples. Earnings growthLeverage
Contribution of different drivers
Fund size
Summary
8 Venture Capital
What is Venture Capital?
Backing New Applications, Not New Technology
Classifi cation by Sector
IT
Telecoms
Life Science
Classification by Stage
Seed stage
Early stage
Mid and late stages
Summary
9 How to Analyse Venture
The Fundamentals (1) --
Money Multiples
The Fundamentals (2) --
Valuation
Valuation as an element of stated returns
Differences in valuation approach between Europe and the US
Variability of Venture valuations
Pre-money and post-money valuations
Share classes. The Fundamentals (3) --
Cost and ValueIRRs and multiples
Going in equity (GI%)
Percentage of the holding within the fund
The Impact of Home Runs
Summary
10 Venture Returns
US Outperformance versus Europe
Money multiples drive IRRs
Home runs and the golden circle
Market conditions
European Venture --
Is it as Bad as it Seems?
Returns and Fund Size
Venture returns by stage
What of the Future?
Summary
11. Growth and Development Capital
The PLC and the BCG Growth Matrix
Development Capital
Target companies
Money in deals
Money out deals
Objectives
Growth Capital.

✦ Subjects

Private equity. Venture capital. Investments. Business. BUSINESS & ECONOMICS -- Investments & Securities -- General.

📜 SIMILAR VOLUMES

Private Equity as an Asset Class (The Wi

📁 Private Equity as an Asset Class (The Wiley Finance Series)

✍ Guy Fraser-Sampson 📂 Library 📅 2007 🏛 Wiley 🌐 English

This book was well organized, easy to follow and written by a knowledgeable author. It lays out the basics of what private equity is (venture & buyout considered separately), how returns are generated (at a very high level of detail), historical return analysis of PE, and a very brief overview of h

Aircraft Valuation: Airplane Investments

📁 Aircraft Valuation: Airplane Investments as an Asset Class

✍ David Yu 📂 Library 📅 2020 🏛 Palgrave Macmillan 🌐 English

This book is one of the first to explore aviation and aircraft leasing and its values establishing it as a standalone investable asset class within the larger real assets industry. Airplanes are a crucial but capital-intensive component of the global economy. The author, as an academic, researcher,

Asset Allocation and Private Markets: A

📁 Asset Allocation and Private Markets: A Guide to Investing with Private Equity, Private Debt, and Private Real Assets

✍ Cyril Demaria, Maurice Pedergnana, Remy He, Roger Rissi, Sarah Debrand 📂 Library 📅 2021 🏛 Wiley 🌐 English

The comprehensive guide to private market asset allocation Asset Allocation and Private Markets provides institutional investors, such as pension funds, insurance groups and family offices, with a single-volume authoritative resource on including private markets in strategic

Infrastructure as an asset class : inves

📁 Infrastructure as an asset class : investment strategies, project finance and PPP

✍ Weber, Barbara; Alfen, Hans Wilhelm 📂 Library 📅 2010 🏛 Wiley 🌐 English

The market for infrastructure is vast and, contrary to popular belief, the range of potential infrastructure investments is extremely broad. An investor who does not have a sufficient overview and insight into the infrastructure market or an awareness of the suitable investment opportunities and the

Infrastructure as an Asset Class: Invest

📁 Infrastructure as an Asset Class: Investment Strategy, Sustainability, Project Finance and PPP

✍ Barbara Weber, Mirjam Staub-Bisang, Hans Wilhelm Alfen 📂 Library 📅 2016 🏛 Wiley 🌐 English

Clear, comprehensive guidance toward the global infrastructure investment market Infrastructure As An Asset Class is the leading infrastructure investment guide, with comprehensive coverage and in-depth expert insight. This new second edition has been fully updated to reflect the cu

Islamic Asset Management : An Asset Clas

📁 Islamic Asset Management : An Asset Class on its Own?

✍ Natalie Schoon 📂 Library 📅 2011 🏛 Edinburgh University Press 🌐 English

Islamic asset management has been growing at a similar rate as the Islamic financial industry as a whole and at the time of writing close to 700 funds are incorporated in the major databases with an estimated funds under management of around $70 billion. This book reviews the Islamic asset managemen