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 FraserSampson draws upon more than twenty years of experience of the private equity industry to provide a practical guide to mastering the intricacies of this highly specialist asset class. Aimed equally at investors, professionals and business school students, it starts with such fundamental questions as what is private equity? and progresses to detailed consideration of different types of private equity activity such as venture capital and buyout. Rapid and significant changes in the environment during the recent financial crisis have prompted the need for a new edition. Separate chapters have been added on growth and development capital, as well as secondary investing. Newly emergent issues are considered, such as lengthening holding periods and the possible threat of declining returns. Particular problems, such as the need to distinguish between private equity and hedge funds, are addressed. The glossary has also been expanded. In short, readers will find that this new edition takes their understanding of the asset class to new heights. from the back cover.
Introduction --- 1. What is private equity? ---
2. What are private equity funds, and how do they work? ---
3. Private equity returns: the basics ---
4. Private equity returns: multiples and muddles ---
5. Buyout ---
6. How to analyze buyouts ---
7. Buyout returns ---
8. Venture capital ---
9. How to analyze venture ---
10. Venture returns ---
11. Growth and development capital ---
12. Secondary private equity fund investing ---
13. Due diligence ---
14. Planning your investment programme ---
15. Trends and issues ---
Glossary of private equity terms --- Index..
