Private Equity in Action - by Claudia Zeisberger & Michael Prahl & Bowen White (Hardcover) (2024)

About the Book

"Global Best Practice in Private Equity Investing Private Equity in Action takes you on a tour of the private equity investment world through a series of case studies written by INSEAD faculty and taught at the world's leading business schools. The book is an ideal complement to Mastering Private Equity and allows readers to apply core concepts to investment targets and portfolio companies in real-life settings. The 19 cases illustrate the managerial challenges and risk-reward dynamics common to private equity investment. The case studies in this book cover the full spectrum of private equity strategies, including: Carve-outs in the US semiconductor industry (LBO) Venture investing in the Indian wine industry (VC) Investing in SMEs in the Middle East Turnaround situations in both emerging and developed markets Written with leading private equity firms and their advisors and rigorously tested in INSEAD's MBA, EMBA and executive education programmes, each case makes for a compelling read. As one of the world's leading graduate business schools, INSEAD offers a global educational experience. The cases in this volume leverage its international reach, network and connections, particularly in emerging markets. Private Equity in Action is the companion to Mastering Private Equity: Transformation via Venture Capital, Minority Investments & Buyouts, a reference for students, investors, finance professionals and business owners looking to engage with private equity firms. From deal sourcing to exit, LBOs to responsible investing, operational value creation to risk management, Mastering Private Equity systematically covers all facets of the private equity life cycle"--

Book Synopsis

Global Best Practice in Private Equity Investing

Private Equity in Action takes you on a tour of the private equity investment world through a series of case studies written by INSEAD faculty and taught at the world's leading business schools. The book is an ideal complement to Mastering Private Equity and allows readers to apply core concepts to investment targets and portfolio companies in real-life settings. The 19 cases illustrate the managerial challenges and risk-reward dynamics common to private equity investment.

The case studies in this book cover the full spectrum of private equity strategies, including:

  • Carve-outs in the US semiconductor industry (LBO)
  • Venture investing in the Indian wine industry (VC)
  • Investing in SMEs in the Middle East
  • Turnaround situations in both emerging and developed markets

Written with leading private equity firms and their advisors and rigorously tested in INSEAD's MBA, EMBA and executive education programmes, each case makes for a compelling read.

As one of the world's leading graduate business schools, INSEAD offers a global educational experience. The cases in this volume leverage its international reach, network and connections, particularly in emerging markets.

Private Equity in Action is the companion to Mastering Private Equity: Transformation via Venture Capital, Minority Investments & Buyouts, a reference for students, investors, finance professionals and business owners looking to engage with private equity firms. From deal sourcing to exit, LBOs to responsible investing, operational value creation to risk management, Mastering Private Equity systematically covers all facets of the private equity life cycle.

From the Back Cover

GLOBAL BEST PRACTICE IN PRIVATE EQUITY INVESTING

Private Equity in Action takes you on a tour of the private equity investment world through a series of case studies written by INSEAD faculty and taught at the world's leading business schools. The book is an ideal complement to Mastering Private Equity and allows readers to apply core concepts to investment targets and portfolio companies in real-life settings. The 19 cases illustrate the managerial challenges and risk-reward dynamics common to private equity investment.

The case studies in this book cover the full spectrum of private equity strategies, including:

  • Carve-outs in the US semiconductor industry (LBO)
  • Venture investing in the Indian wine industry (VC)
  • Investing in SMEs in the Middle East
  • Turnaround situations in both emerging and developed markets

Written with leading private equity firms and their advisors and rigorously tested in INSEAD's MBA, EMBA and executive education programs, each case makes for a compelling read.

Private Equity in Action is the companion to Mastering Private Equity: Transformation via Venture Capital, Minority Investments & Buyouts, a reference for students, investors, finance professionals and business owners looking to engage with private equity firms. From deal sourcing to exit, LBOs to responsible investing, operational value creation to risk management, Mastering Private Equity systematically covers all facets of the private equity life cycle.

As one of the world's leading graduate business schools, INSEAD offers a global educational experience. The cases in this volume leverage its international reach, network and connections, particularly in emerging markets.

About the Author

Claudia Zeisberger is an INSEAD Senior Affiliate Professor of Decision Sciences and Entrepreneurship and Family Enterprise. She is concurrently the Academic Director of INSEAD's Global Private Equity Initiative (GPEI), one of INSEAD's centers of excellence, which she founded in 2008 to focus the school's capabilities & achievements in Private Equity, increase its visibility and cater to specific industry needs in research and education. At INSEAD, she teaches in the MBA and EMBA programmes as well as in multiple Executive Education courses both in Singapore & in Fontainebleau.

Michael Prahl is Adjunct Professor for Entrepreneurship & Family Enterprise at INSEAD, he is also Executive Director GPEI, oversees all research of the initiative and was instrumental in creating all its recent publications, its database project and outreach activities. His specific research interests are in the areas of risk and return in emerging markets, operational value creation and market entry strategies & portfolio allocation for limited partners.

Bowen White is a Research Associate at GPEI. Bowen's research interests include private equity in emerging markets, the institutionalization of SE Asian financial markets, and project finance. Prior to moving to Singapore in 2009, Bowen spent five years in the New York hedge fund industry in trading and business development roles.

Private Equity in Action - by  Claudia Zeisberger & Michael Prahl & Bowen White (Hardcover) (2024)

FAQs

Why is private equity controversial? ›

Private equity funds are illiquid and are risky because of their high use of debt; furthermore, once investors have turned their money over to the fund, they have no say in how it's managed. In compensation for these terms, investors should expect a high rate of return.

What really is private equity What do private equity firms actually do? ›

Private equity operates with investors and uses funds to invest in private companies or buy out public companies. By doing so, general partners can obtain control over management and other operational changes to increase profitability in hopes to later sell at a successful rate.

Who owns the private equity fund? ›

Private equity firms are, as their name suggests, private — meaning they're owned by their founders, managers, or a limited group of investors — and not public — as in traded on the stock market.

What is the most common private equity deal? ›

Common types of private equity deals
  • Take private – A take private involves buying out a company that is publicly listed on a stock exchange. ...
  • Private company buyout – In a private company buyout, a private equity firm purchases a controlling stake in a privately owned company.

What is private equity and why is it killing? ›

The hallmark of a private-equity deal is the so-called leveraged buyout. Funds take on massive amounts of debt to buy companies, with the goal of reselling in a few years at a profit.

Why are people in private equity so rich? ›

Private equity owners make money by buying companies they think have value and can be improved. They improve the company or break it up and sell its parts, which can generate even more profits.

How much do private equity people make? ›

Private Equity Salary, Bonus, and Carried Interest Levels: The Full Guide
Position TitleTypical Age RangeBase Salary + Bonus (USD)
Associate24-28$150-$300K
Senior Associate26-32$250-$400K
Vice President (VP)30-35$350-$500K
Director or Principal33-39$500-$800K
2 more rows

What is private equity in simple terms? ›

Private equity describes investment partnerships that buy and manage companies before selling them. Private equity firms operate these investment funds on behalf of institutional and accredited investors.

Is private equity a risky job? ›

Private equity investors also face greater market risk with their investments compared to traditional investments since there's no guarantee that any of the small companies in which private equity firms invest will grow at all.

Who is the mother of private equity? ›

Renuka Ramnath is an Indian private equity fund manager, and the founder and CEO of Multiples Asset Management Ltd. She is also an independent director of the apparel manufacturer Arvind Ltd., chairperson of the board at Tata Communications, and chairperson of the Indian Private Equity and Venture Capital Association.

What is the largest private equity fund in the US? ›

What Are the Biggest U.S. PE Firms?
Top U.S. Private Equity FirmsAUM
The Carlyle Group$381 billion
Bain Capital$165 billion
TPG Capital$137 billion
Thoma Bravo$127 billion
6 more rows
Mar 21, 2024

What happens when private equity buys your company? ›

Integrating a newly acquired business into a PE portfolio is a major transformation, requiring professionals who can align teams to a common vision, establish a strategic direction, manage diverse stakeholders, and guide employees to achieve the company's goals, even if some employees are skeptical or uncertain.

What is the 2 20 rule in private equity? ›

This is also known as the “2 and 20” fee structure and it's a common fee arrangement in private equity funds. It means that the GP's management fee is 2% of the investment and the incentive fee is 20% of the profits. Both components of the GPs fees are clearly detailed in the partnership's investment agreement.

What is the most successful private equity firm? ›

Blackstone Inc.

Is there good money in private equity? ›

Benefits / Advantages: High salaries and bonuses at all levels, with the potential for carry to boost senior-level compensation far beyond what investment bankers earn. More interesting work than investment banking and other sell-side roles.

Is private equity unethical? ›

Additionally, private equity firms often use aggressive tactics to increase profits, such as cutting costs and laying off employees, which can have a negative impact on the communities where these companies operate. Despite these concerns, private equity remains a popular investment option for many investors.

What is the curse of private equity? ›

It's known as the “winner's curse.” In private equity investing, it's when a winning bid to acquire a company exceeds its intrinsic value or worth.

What is the main disadvantage of private equity investment? ›

Higher risk: Private equity investments often involve significant risks, including the potential loss of your entire investment, which must be part of the individual investors' consideration process.

What is the disadvantage of working in private equity? ›

Drawbacks / Disadvantages:

Still fairly long hours and an intense work environment, and significant travel may be required, especially as you advance. There may not be a clear path to advancement at your firm, depending on the firm's size and policies and your level.

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