Private equity, the business of investing in private companies, has quickly grown from a cottage industry to a mature asset class. For those that supply the moneythe endowments, foundations, pension funds, family offices, and otherslearning the business of private equity can be one of its principle challenges. Inside Private Equity was written for this audience to help provide a general understanding of how to invest in, monitor, and measure the performance and risk of private equity.
With Inside Private Equity, four experienced financial professionalsJames Kocis, James Bachman, Austin Long, and Craig Nickelsshare their broad range of private equity experience to help demystify this asset class.
Divided into four comprehensive partsSetting the Foundation, Measurements and Comparisons, Topics on Risk, and ConclusionsInside Private Equity opens with a brief introduction to this discipline and sets the stage for more technical discussions to follow. Here, you'll become familiar with everything from traditional industry measurements to a structured approach to portfolio management.
To discover this more structured approach, Inside Private Equity:
Outlines various peer universes and benchmarks
Presents tools that will help you uncover both how and where wealth was gained and lost
Examines the effect portfolio size has on performance expectations
Explores two different modeling techniques for cash management
And much more
By providing straightforward explanations and detailed examples of the concepts covered, Inside Private Equity demystifies many of the common assumptions about this asset class and puts the various pieces of the private equity puzzle in perspective.
A growing number of financial institutions and professionals are investing in private equity for its diversification benefits and the opportunity to participate in substantial long-term gains. But many are finding it difficult to manage things they can't always measure. Filled with in-depth insights and expert advice, Inside Private Equity focuses on what you can measure and how this process will allow you to better manage these assetsas well as your time.
"This handbook is essential reading for all investors in the private markets. It is especially helpful in understanding the mechanics of portfolio construction and challenges of performance measurement of private equity and venture capital investing."
Susan J. Carter, President and CEO, Commonfund Capital, Inc.
"An invaluable handbook."
Sir Ronald Cohen, Chairman of The Portland Trust, Portland Capital LLP, and Bridges Ventures
"Private equity fund investing is often viewed as more art than science, though in reality it requires an even blend of both skills. This book focuses on the science behind the art. It covers all the major concepts while introducing some great new ones, and must be required reading for serious private equity market participants."
Chihtsung Lam, founder and Managing Director of Axiom Asia Private Capital
"The authors have created a simple and pragmatic handbook for a very complex asset class. Their collective experience is invaluable. This is a fantastic read for new private equity investors as well as experienced portfolio managers looking for additional tools that can be used in monitoring their current investments and in the process of screening new opportunities. Inside Private Equity is a great foundation for investors looking to improve their analysis of an exciting asset class."
Timothy B. Moore, Director of Alternative Investments, PERA of Colorado
"A real practitioner-focused contribution bringing performance measurement down from the theoretical to the practical."
Jesse E. Reyes, Reyes Analytics
"Inside Private Equity clearly explains, without oversimplifying, the hard work of managing private equity portfolios. Full of cogent advice from an experienced team. Great work!"
Lawrence M. Unrein, Managing Director and Head of the Private Equity Group for J.P. Morgan Asset Management
"A handy guide to address the pitfalls and issues of investing in private equity that most institutional investors have wrongly ignored. Well done!"
Dory Wiley, President and CEO of Commerce Street Capital and Trustee and Chairman of the Investment Committee at Teachers Retirement System of Texas