In the newly revised second edition of Venture Capital, Private Equity, and the Financing of Entrepreneurship, a dedicated team of researchers and professionals delivers an authoritative and comprehensive account of the world of active investing. This important work demonstrates how venture capitalists and private equity investors do business and create value for entrepreneurs, shareholders, and other stakeholders.
The authors, drawing on decades of combined experience studying and participating in the private equity markets, discuss the players, dynamics, and the incentives that drive the industry. They also describe various possibilities for the future development of private equity. This latest edition is perfect for advanced undergraduate students of finance and business, as well as MBA students seeking an insightful and accessible textbook describing the private equity markets.
Table of Contents
Preface vii
Acknowledgments ix
About the Authors xi
1. Introduction 1
2. The Private Equity Cycle - Fundraising and Fund Choosing 20
3. Deal Sourcing and Evaluation - Not as Easy as It Looks! 65
4. Assigning Value 101
5. Deal Structuring - Private Equity Securities and Their Motivation 131
6. After the Money Arrives 175
7. Getting Liquid: Exits and Distributions 204
8. The Globalization of Venture Capital and Private Equity 246
9. Risk and Return 285
10. The Impact of Private Equity on Society - Does This Really Matter Anyway? 313
11. People, Positions, and Culture: The Management of the Private Equity Firm 345
12. Scaling and Institutionalization 374
13. Boom and Bust 404
14. Wrapping Up 435
Glossary G- 1
Index I- 1
