Inside Private Equity explores the complexities of this asset class and introduces new methodologies that connect investment returns with wealth creation. By providing straightforward examples, it demystifies traditional measures like the IRR and challenges many of the common assumptions about this asset class. Readers take away a set of practical measures that empower them to better manage their portfolios.
About the Author
JAMES M. KOCIS is the founder and President of the BurgissGroup, one of the leading software and financial service providersto the private equity industry. He and his team designed Private i,the world's most popular program for private equity portfoliomanagement. Private i is used to manage in excess of $1 trillion ofprivate equity investments.
JAMES C. BACHMAN IV, CAIA, is the Head of Research at theBurgiss Group. In this role, he is principally responsible forresearch-related initiatives as well as expanding the technologyplatform's portfolio management capabilities.
AUSTIN M. LONG III, JD, CPA, is the Head of AlignmentCapital, a private equity consultancy. He has been active in theprivate markets since 1987, when he cofounded what was to becomethe University of Texas Investment Management Company (UTIMCO)private investment group.
CRAIG J. NICKELS, CFA, is the Director of Private Marketsfor Washington University in St. Louis, where his responsibilitiesinclude the oversight and management of the university's privatemarket investments within the multi-billion endowment.
Table of Contents
How to Use This Book.
About the Authors.
PART ONE: Setting the Foundation.
CHAPTER 1: Background.
CHAPTER 2: Private Equity Perspectives.
CHAPTER 3: Managing the Investment Process.
CHAPTER 4: Capturing a Portfolio.
CHAPTER 5: Tracking Portfolio Holdings.
PART TWO: Measurements and Comparisons.
CHAPTER 6: Standard Measures.
CHAPTER 7: The IRR.
CHAPTER 8: Universe Comparisons.
CHAPTER 9: Flawed Research Methodologies.
CHAPTER 10: Visualizing Private Equity Performance.
CHAPTER 11: The IRR and the Public Markets.
PART THREE: Topics on Risk.
CHAPTER 12: Performance Attribution.
CHAPTER 13: The Concentration of Wealth.
CHAPTER 14: The Diversification of Portfolios.
CHAPTER 15: Cash Management Models.
PART FOUR: Conclusions.
CHAPTER 16: The Private Equity Professional.
CHAPTER 17: Summary.
APPENDIX A: Proposed Venture Capital Portfolio ValuationGuidelines.
APPENDIX B: On-Site GP Audit Program Guide.
APPENDIX C: Qualitative Due Diligence: Structured Interview.
APPENDIX D: Qualitative Due Diligence: Structured ReferenceCalls.
APPENDIX E: Request for Information (RFI).
APPENDIX F: Advanced Topics: Duration of Performance.
APPENDIX G: Advanced Topics: Correlation and OpportunityCosts.
APPENDIX H: Patent Summaries.