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Fundamentals of Private Equity and Venture Capital - PEI Media

Fundamentals of Private Equity and Venture Capital - PEI Media

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Contents<br />

About the author<br />

iv<br />

Getting the most out <strong>of</strong> this module 5<br />

The evolution <strong>of</strong> venture capital <strong>and</strong> private equity 5<br />

Introduction 5<br />

Evolution <strong>of</strong> the US market 5<br />

Europe 6<br />

Asia 7<br />

The 1990s 8<br />

The dot com bubble 8<br />

<strong>Private</strong> equity today 8<br />

Types <strong>of</strong> private equity 9<br />

The private equity cycle – connecting institutional<br />

investors <strong>and</strong> entrepreneurs 10<br />

The limited partnership 11<br />

Fund manager remuneration 12<br />

Alternatives to pooled funds <strong>and</strong> limited partnerships 12<br />

Single investor funds 12<br />

Fund <strong>of</strong> funds 13<br />

Gatekeepers 13<br />

Secondary funds 13<br />

Why invest in private equity? 13<br />

The modern private equity firm – the shape <strong>of</strong> a GP 13<br />

Type 13<br />

Investment focus 14<br />

Investment style 14<br />

Case study 1: Get big or die; two very different venture capital tales 15<br />

Case Study 2: The management buyout 17<br />

Case study 3: Investor forces an exit 18<br />

Summary 19<br />

COPYING WITHOUT PERMISSION IS UNLAWFUL<br />

THE FUNDAMENTALS OF PRIVATE EQUITY iii

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