Download or read book The Return Risk and Value Added of Private Equity Fund Sponsors written by Frank A. Shepard and published by . This book was released on 2013 with total page 238 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Private Equity Funds written by James M. Schell and published by Law Journal Press. This book was released on 2023-08-28 with total page 864 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The best guide to private equity funds. Insight and explanations for both fund sponsors and investors. The gold standard." --Andrew Zalasin, General Partner and CFO: RRE Ventures Best Practices for Organizing and Managing a Fund With nearly $7 trillion invested in more than 20,000 funds, investor interest in the private equity industry has returned, despite the economic turmoil of recent years. Still, guidance about the organization and administration of these funds is tough to find. This 1,400+ page resource, will equip corporate lawyers, investment professionals, and tax practitioners and with best practices to manage these funds effectively. Private Equity Funds: Business Structure and Operations covers a wide range of important issues, such as: the key economic differences between various types of funds; structuring the private equity fund to meet economic expectations and investment goals; securing maximum tax benefits for the sponsor of the fund; duties of the fund's General Partner and Investment Advisor; the major regulatory issues affecting the private equity fund; and much more. Private Equity Funds: Business Structure and Operations reflects the aftermath of the financial crisis of 2007 to 2009. The authors also focus on cyber risk and the compliance obligations of investment advisers.

Download or read book Risk and Return of Private Equity written by Ludovic Phalippou and published by . This book was released on 2009 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: I cover the different methods to measure risk and return of investing into private equity (also called buyout). However, the reader may bear in mind that the challenges and methods are very similar for other assets classes such as venture capital, real estate or mezzanine. In terms of vocabulary, I call a (portfolio) company the entity receiving the financing from a private equity fund, and private equity firm the organization running private equity funds (e.g. KKR funds, Bain capital funds). The capital committed to private equity funds increased from $3.5 billion in 1984 to over $300 billion in 2007 and more than $1 trillion of assets are estimated to be in the hand of private equity funds in 2007. This growth has often been attributed to a widespread belief of stellar performance and low risk but no rate of return has even been shown in support of this belief (only some multiples or IRRs) and no risk measure has been computed. Recent academic evidence which I document below is at odd with this belief.In this chapter, I review studies of risk and return of private equity which I complement with original empirical work. I distinguish between four types of data. Each represents a different level of challenge for measuring risk and return. From the easiest to the most difficult: i) publicly traded vehicles, ii) round valuation data [the econometrician knows the initial and final value of the investment but does not know the time-series of investment values; there is no intermediary cash-flows], iii) investment level [cash flows realized by the fund from an investment], and iv) fund level [cash flows faced by investors for their stake in a fund]. In the last two cases, the econometrician does not have a correspondence between each amount distributed and invested. These two cases require the same method, are most challenging and are the most relevant in practice.

Download or read book The Endowment Model of Investing written by Martin L. Leibowitz and published by John Wiley & Sons. This book was released on 2010-03-02 with total page 313 pages. Available in PDF, EPUB and Kindle. Book excerpt: A cutting-edge look at the endowment model of investing Many larger endowments and foundations have adopted a broadly diversified asset allocation strategy with only a small amount of traditional U.S. equities and bonds. This technique, known as the "endowment model of investing," has demonstrated consistent long-term performance and attracted the attention of numerous institutional and individual investors. With The Endowment Model of Investing Leibowitz, Bova, and Hammond take a closer look at the endowment model with customary research sophistication and attention to detail. Throughout the book, they examine how the model provides truly outstanding real returns, while keeping a close eye on the risks associated with this method of investing. Along the way, the authors offer practical advice on incorporating the endowment model into your own investment endeavors and reveal what it takes to make this method work in the real world. Details the growing debate about the endowment model of investing and discusses how to use it successfully Written by an authority on endowment investing and non-traditional asset allocation strategies Offers expert insights on understanding risk and return in non traditional asset allocation If you want to gain a better grasp of one of the most successful forms of investing, then The Endowment Model of Investing is a book you need to read.

Download or read book Investing in Private Equity Partnerships written by Kay Müller and published by Springer Science & Business Media. This book was released on 2008-06-17 with total page 334 pages. Available in PDF, EPUB and Kindle. Book excerpt: Kay Müller provides insight into the monitoring activities of private equity fund investors and explores their information requirements. He analyzes the reporting of private equity fund managers, reveals information gaps and provides guidance on how to improve investor relations.

Download or read book The Cash Flow Return and Risk Characteristics of Private Equity written by Alexander Ljungqvist and published by . This book was released on 2014 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using a unique dataset of private equity funds over the last two decades, this paper analyzes the cash flow, return, and risk characteristics of private equity. Unlike previous studies, we have detailed cash flow data for each fund, rather than aggregate or accounting returns. We also know the exact timing of investments and capital returns to investors and the number and types ofcompanies each fund invested in. We document the draw down and capital return schedules for the typical private equity fund, and show that it takes several years for capital to be invested, and over ten years for capital to be returned to generate excess returns. We provide several determining factors for these schedules, including existing investment opportunities and competition amongst private equity funds. In terms of performance, we document that private equity generates excess returns on the order of five to eight percent per annum relative to the aggregate public equity market. Moreover, while we estimate the betas of the private equity funds portfolios to be greater than one, we show that on a risk-adjusted basis the excess value of the typical private equity fund is on the order of 24 percent relative to the present value of the invested capital. One interpretation of this magnitude is that it represents compensation for holding a 10-year illiquid investment.

Download or read book Value creation in Middle Market Private Equity written by John A. Lanier and published by Gower Publishing, Ltd.. This book was released on 2015-02-28 with total page 327 pages. Available in PDF, EPUB and Kindle. Book excerpt: Value-creation in Middle Market Private Equity by John A. Lanier holistically examines the ecosystem relationships between middle market private equity firms and their portfolio companies. Small business is the job creating engine in the US economy, and consequently is a prime target market for private equity investment. Indeed, private equity backs over six of each 100 private sector jobs. Both the small businesses in which private equity firms invest, and the private equity firms making the investments, face inter- and intra-company fiduciary leadership challenges while implementing formulated strategy. The architecture of each private equity firm-portfolio company relationship must be uniquely crafted to capitalize on the projected return on investment that is memorialized in the investment thesis. Given the leveraged capital structure of portfolio companies, the cost of a misstep is problematic. Individual private equity professionals are typically members of multiple investment teams for the firm. Not only may each investment team have its own unique leadership style, but its diverse members have to assimilate styles for each team in which they participate relative to a specific portfolio company. Acquisitions and their subsequent integrations add exponential complexity for both private equity investment and portfolio company leadership teams; indeed, cultural integration ranks among the most chronic acquisition obstacles. Accordingly, the stakeholders of private equity transactions do well to embrace leadership best practices in applying value-creation toolbox best practices. The perspectives of both the private equity investment team and the portfolio company leadership team are within the scope of these chapters.

Download or read book Introduction to Private Equity Debt and Real Assets written by Cyril Demaria and published by John Wiley & Sons. This book was released on 2020-06-15 with total page 469 pages. Available in PDF, EPUB and Kindle. Book excerpt: Fully revised and updated to reflect changes in the private equity sector Building on and refining the content of previous editions, Introduction to Private Equity, Debt and Real Assets, Third Edition adopts the same logical, systematic, factual and long-term perspective on private markets (private equity, private debt and private real assets) combining academic rigour with extensive practical experience. The content has been fully revised to reflect developments and innovations in private markets, exploring new strategies, changes in structuring and the drive of new regulations. New sections have been added, covering fund raising and fund analysis, portfolio construction and risk measurement, as well as liquidity and start-up analysis. In addition, private debt and private real assets are given greater focus, with two new chapters analysing the current state of these evolving sectors. • Reflects the dramatic changes that have affected the private market industry, which is evolving rapidly, internationalizing and maturing fast • Provides a clear, synthetic and critical perspective of the industry from a professional who has worked at many levels within the industry • Approaches the private markets sector top-down, to provide a sense of its evolution and how the current situation has been built • Details the interrelations between investors, funds, fund managers and entrepreneurs This book provides a balanced perspective on the corporate governance challenges affecting the industry and draws perspectives on the evolution of the sector.

Download or read book German Buyouts Adopting a Buy and Build Strategy written by Nils Hoffmann and published by Springer Science & Business Media. This book was released on 2008-02-29 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt: Within the frame of a case study and questionnaire-based research, Nils Hoffmann investigates the key characteristics of buy and build strategies affected by private equity investors in Germany between 1998 and 2003. The author analyzes which value drivers and management strategies financial sponsors use to generate the return targeted. Furthermore, the research presented provides evidence concerning key success factors of the most profitable buy and build strategies.

Download or read book Risk and Expected Returns of Private Equity Investments written by Narasimhan Jegadeesh and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: We estimate the risk and expected returns of private equity investments based on the market prices of exchange-traded funds of funds that invest in unlisted private equity funds. Our results indicate that the market expects unlisted private equity funds to earn abnormal returns of approximately 1% per year. We also find that the market expects listed private equity funds to earn zero or marginally negative abnormal returns net of fees. Both listed and unlisted private equity funds have market betas close to one and positive factor loadings on the Fama-French SMB factor. Private equity fund returns are positively related to GDP growth and negatively related to the credit spread. In addition, we find that market returns of exchange traded funds of funds and listed private equity funds predict changes in self-reported book values of unlisted private equity funds

Download or read book Real Estate Finance and Investments written by Peter Linneman and published by . This book was released on 2020-02 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Effects of Leveraged Buyouts on Productivity and Related Aspects of Firm Behavior written by Frank R. Lichtenberg and published by . This book was released on 1989 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Risk and Expected Returns of Private Equity Investments written by Narasimhan Jegadeesh and published by . This book was released on 2016 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt: We estimate the risk and expected returns of private equity using market prices of publicly traded funds of funds holding unlisted private equity funds and publicly traded private equity funds participating directly in private equity transactions. Based on the performance of these two types of listed vehicles, private equity has a market loading close to one and a significantly positive loading on the Fama-French SMB factor. Private equity performance is also negatively related to the credit spread in addition to the substantial exposure to stock market risk. The performance for listed vehicles exhibits greater systematic risk than the private equity performance index, an index based on the self-reported net asset value of unlisted private equity funds, because this index does not reflect market valuation changes in a timely manner. Finally, we find that the market expects unlisted private equity funds to earn annual abnormal returns between -0.5% and 2%.

Download or read book Private Equity Fund Risk Management written by Mohsen Mazaheri and published by . This book was released on 2019 with total page 5 pages. Available in PDF, EPUB and Kindle. Book excerpt: The focus of this paper is how the risk function can add value to PE funds in every stage of the investment process. It is meant as a blueprint of how the function should be set up at a private equity firm.

Download or read book Private Equity in Action written by Claudia Zeisberger and published by John Wiley & Sons. This book was released on 2017-06-09 with total page 418 pages. Available in PDF, EPUB and Kindle. Book excerpt: Global Best Practice in Private Equity Investing Private Equity in Action takes you on a tour of the private equity investment world through a series of case studies written by INSEAD faculty and taught at the world's leading business schools. The book is an ideal complement to Mastering Private Equity and allows readers to apply core concepts to investment targets and portfolio companies in real-life settings. The 19 cases illustrate the managerial challenges and risk-reward dynamics common to private equity investment. The case studies in this book cover the full spectrum of private equity strategies, including: Carve-outs in the US semiconductor industry (LBO) Venture investing in the Indian wine industry (VC) Investing in SMEs in the Middle East Turnaround situations in both emerging and developed markets Written with leading private equity firms and their advisors and rigorously tested in INSEAD's MBA, EMBA and executive education programmes, each case makes for a compelling read. As one of the world's leading graduate business schools, INSEAD offers a global educational experience. The cases in this volume leverage its international reach, network and connections, particularly in emerging markets. Private Equity in Action is the companion to Mastering Private Equity: Transformation via Venture Capital, Minority Investments & Buyouts, a reference for students, investors, finance professionals and business owners looking to engage with private equity firms. From deal sourcing to exit, LBOs to responsible investing, operational value creation to risk management, Mastering Private Equity systematically covers all facets of the private equity life cycle.

Download or read book A New Method to Estimate Risk and Return of Non traded Assets from Cash Flows written by Joost Driessen and published by . This book was released on 2008 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: "We develop a new GMM-style methodology with good small-sample properties to assess the abnormal performance and risk exposure of a non-traded asset from a cross-section of cash flow data. We apply this method to a sample of 958 mature private equity funds spanning 24 years. Our methodology uses actual cash flow data and not intermediary self-reported Net Asset Values. In addition, it does not require a distributional assumption for returns. For venture capital funds, we find a high market beta and significant under-performance. For buyout funds, we find a low beta and no abnormal performance, but the sample is small. Larger funds have higher returns due to higher risk exposures and not higher alphas. We also find that Net Asset Values significantly overstate fund market values for the subset of mature and inactive funds"--National Bureau of Economic Research web site

Download or read book Risk and expected returns of private equity investments evidence based on market prices written by Narasimhan Jegadeesh and published by . This book was released on 2009 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: We estimate the risk and expected returns of private equity investments based on the market prices of exchange-traded funds of funds that invest in unlisted private equity funds. Our results indicate that the market expects unlisted private equity funds to earn abnormal returns of approximately 1% per year. We also find that the market expects listed private equity funds to earn zero or marginally negative abnormal returns net of fees. Both listed and unlisted private equity funds have market betas close to one and positive factor loadings on the Fama-French SMB factor. Private equity fund returns are positively related to GDP growth and negatively related to the credit spread. In addition, we find that market returns of exchange traded funds of funds and listed private equity funds predict changes in self-reported book values of unlisted private equity funds.