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Inside Private Equity
The Professional Investor's Handbook

James M. Kocis (Author), James C. Bachman, IV (Author), Austin M. Long, III (Author), Craig J. Nickels (Author)

9780470421895, Wiley

Hardback, published 29 April 2009

288 pages, Charts: 51 B&W, 0 Color; Tables: 71 B&W, 0 Color
23.2 x 16.2 x 2.5 cm, 0.511 kg

Inside Private Equity explores the complexities of this asset class and introduces new methodologies that connect investment returns with wealth creation. By providing straightforward examples, it demystifies traditional measures like the IRR and challenges many of the common assumptions about this asset class. Readers take away a set of practical measures that empower them to better manage their portfolios.

Foreword xi

Preface xvii

Acknowledgments xxi

How to Use This Book xxiii

About the Authors xxv

Part One Setting the Foundation

Chapter 1 Background 3

Chapter 2 Private Equity Perspectives 13

Chapter 3 Managing the Investment Process 29

Chapter 4 Capturing a Portfolio 51

Chapter 5 Tracking Portfolio Holdings 63

Part Two Measurements and Comparisons

Chapter 6 Standard Measures 79

Chapter 7 The IRR 89

Chapter 8 Universe Comparisons 111

Chapter 9 Flawed Research Methodologies 129

Chapter 10 Visualizing Private Equity Performance 137

Chapter 11 The IRR and the Public Markets 153

Part Three Topics on Risk

Chapter 12 Performance Attribution 165

Chapter 13 The Concentration of Wealth 175

Chapter 14 The Diversification of Portfolios 185

Chapter 15 Cash Management Models 193

Part Four Conclusions

Chapter 16 The Private Equity Professional 211

Chapter 17 Summary 217

Appendix A Proposed Venture Capital Portfolio Valuation Guidelines 221

Appendix B On-Site GP Audit Program Guide 223

Appendix C Qualitative Due Diligence: Structured Interview 225

Appendix D Qualitative Due Diligence: Structured Reference Calls 229

Appendix E Request for Information (RFI) 231

Appendix F Advanced Topics: Duration of Performance 235

Appendix G Advanced Topics: Correlation and Opportunity Costs 239

Appendix H Patent Summaries 249

References 253

Index 257

Subject Areas: Finance & accounting [KF]

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