Private Equity: History, Governance, and Operations
Soaring from the depths of its all-time low in the late 1970s, private equity (PE) investment is now a staple of the world economy: it reshapes "tired" companies into more agile organizations, while also financing the world's newest and best ideas so that they may come to market. Although once demeaned by outsiders, private equity has now earned its place in the investment community as an asset class that generates wealth for both investors and the employees of companies it reshapes. Written by an investment dream team of authors, Private Equity: History, Governance, and Operations skillfully describes the mechanisms by which private equity achieves these goals.
Here, you'll discover a goldmine of information centered on private equity, including a thorough overview of the history of PE, how governance structures differ between private equity portfolio companies and those of public corporations, and how the operations of PE portfolio companies can be improved. The text provides valuable information for a broad spectrum of readers, including high- net-worth individuals, accountants and auditors, private equity portfolio managers, entrepreneurs, and public company managers.
Presenting a novel framework for the analysis of private equity investments, Private Equity: History, Governance, and Operations is divided into four modules aimed at expanding the reader's knowledge of PE investment strategy and fund management. The handbook begins with a comprehensive introduction to the private equity process, describing in depth the key players, terms of investment, and historical trends. From there, the authors introduce the harvesting mechanisms of the initial public offering (IPO) and the sale to a strategic or financial buyer (an M&A deal). All of this information is included in the book's first module, "The History of Private Equity." In the second module, "Governance Structures in Private Equity," the unique governance structures that the PE model imparts on portfolio companies, applicable professional standards, models of internal control, and contemporary business and competitive intelligence are discussed. The third module, "Understanding Operations," provides the reader with information centered on assessing and improving the operations of portfolio companies while introducing a philosophical framework that facilitates a detailed understanding of the complexities of today's organizations. The final module, "Special Considerations in Private Equity Investments," highlights the intricacies of PE fund and portfolio company investment, legal considerations in exit strategies, and raising capital through exempt offerings of securities.
Loaded with rich details on the PE industry, Private Equity contains all the information you need to know to become a better investor by employing sound governance practices and operations know-how.