1. Edition - November 2007
83.90 Euro
2007. 476 Pages, Hardcover
ISBN-10: 0-470-03327-4
ISBN-13: 978-0-470-03327-2 - John Wiley & Sons






Sample Chapter

Detailed description
Building on the success of the authors' previous book Beyond the J Curve:Managing a Portfolio of Venture Capital and Private Equity Funds, this work covers new and additional material and offers advanced guidance on the practical questions faced by institutions when setting up and managing a successful private equity investment programme. Written from the practitioner's viewpoint, the book offers private equity and venture capital professionals an advanced guide that will make high return targets more realistic and sustainable.


Factors that can sometimes cause institutions to shy away from venture capital are the industry's opaque track record, unclear valuations and risks, perceived lack of transparency as well as the significant entry barriers to overcome before tangible results show. These issues are all addressed in details with practical solutions to the problems. J-Curve Exposure includes discussions of:
* Experiences with the adoption of the International Private Equity and Venture Capital Valuation Guidelines to address fair value under IFRS.
* Approaches for splitting and prioritizing distributions from private equity funds.
* Techniques for track record analysis and other tools to help limited partners in their due diligence.
* Approaches to dealing with uncertainty, the relevance of real options, and co-investments and side funds as advanced portfolio management techniques.
* Questions related to limited partner decision making fallacies and how to manage portfolios of VC funds.
* Securitization backed by portfolios of investments in private equity funds.


Real life case studies illustrate the issues relevant for the practitioner.

From the contents
List of Boxes

Foreword

Acknowledgments

Abbreviations

Disclaimer

PART I PRIVATE EQUITY LANDSCAPE

1 Introduction

2 Institutional Investing in Private Equity

3 Private Equity Environment

4 Risk Management Lessons from a Listed Private Equity Fund-of-Funds

Appendix 4A Adjusted current ratio methodology

PART II THE ECONOMICS OF PRIVATE EQUITY FUNDS

5 Venture Capital Fund Fair Value

6 Model-Based Approach to VC Fund Valuation

7 Private Equity Fund Valuation Approaches

8 Distribution Waterfall

9 Break-even Analysis

10 Track Record Analysis

Appendix 10A Performance spread between best and worst manager

PART III MANAGING UNDER UNCERTAINTY

11 Grading and Fitness Landscapes

12 Private Equity Funds and Real Options

13 Co-investing

14 Side Funds

15 Limited Partner Decision-Making Fallacies

PART IV MANAGING PORTFOLIOS OF PRIVATE EQUITY FUNDS

16 Portfolio Construction Principles

17 Portfolio Construction Rules of Thumb

18 Guidelines, Monitoring and Corrective Actions

19 Securitization

20 J Curve Exposure

References

Index