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 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.
Key points include:
- A glossary of private equity terms
- Venture capital
- Buyout
- Growth capital
- Development capital
- Secondary investing
- Understanding private equity returns
- Analysing funds and returns
- How to plan a fund investment programme
- Detailed discussion of industry performance figures
