Inside Private Equity: The Professional Investor's Handbook
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 money—the endowments, foundations, pension funds, family offices, and others—learning 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 professionals—James Kocis, James Bachman, Austin Long, and Craig Nickels—share their broad range of private equity experience to help demystify this asset class.Divided into four comprehensive parts—Setting the Foundation, Measurements and Comparisons, Topics on Risk, and Conclusions—Inside 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:Provides an exhaustive review of internal rate of return (IRR) calculationsOutlines various peer universes and benchmarksPresents tools that will help you uncover both how and where wealth was gained and lostExamines the effect portfolio size has on performance expectationsExplores two different modeling techniques for cash managementAnd much moreBy 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 assets—as well as your time.