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| Foreword | |
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| Acknowledgements | |
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| About the Author | |
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| Introduction | |
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| A moving target | |
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| A consubstantial lack of information | |
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| Benign neglect, malign consequences | |
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| Knowing the devil to circumvent it | |
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| What is Private Equity? | |
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| Private Equity as an Economic Driver: An Historical Perspective | |
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| Polling interests to identify and exploit sources of wealth | |
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| Identify, control and exploit resources | |
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| Leverage public policies and a favourable business environment | |
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| Championing entrepreneurship | |
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| No private equity without entrepreneurs | |
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| Convert ventures into business successes | |
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| Entrepreneurship and private equity form a specific ecosystem | |
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| Conclusion: an attempt at definition | |
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| A negotiated investment in equity or quasi-equity | |
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| A fixed maximum term | |
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| Implying specific risks | |
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| With high expected returns | |
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| Undertaken on behalf of qualified investors | |
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| Modern Private Equity - A French Invention? | |
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| USA: the foundry of modern private equity | |
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| The strict separation of public policies and public financing | |
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| The separation of public endeavours and private efforts; the subsequent support of the former for the latter | |
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| Governmental input: SBA, DARPA and ERISA | |
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| Universities, defence and disruptive innovation | |
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| Challenges | |
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| Europe: adapting a successful model or creating its own? | |
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| Governmental input: legal changes, tax rebates, infrastructures and EU market | |
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| National champions, information technologies and incremental innovation | |
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| Challenges | |
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| Conclusion: Emerging markets, building castles on sand? | |
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| The Private Equity Ecosystem | |
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| Private Equity: A Business System Perspective | |
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| We are all investors in private equity | |
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| Sources of capital | |
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| Private equity investment rationale | |
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| Organisation and governance of private equity funds | |
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| Private equity fund managers are financial intermediaries | |
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| Incentives and fees | |
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| Conflicts of interest | |
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| Power, checks and balances | |
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| Measuring performance, managing risks and optimising returns | |
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| Measuring performance in an uncertain context | |
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| Managing risks and optimising returns | |
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| Pitfalls and challenges | |
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| Conclusion | |
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| The Universe of Investment | |
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| Venture capital: financing company creation | |
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| Venture capital investment targets | |
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| Actors and structures | |
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| Operational activities | |
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| Challenges | |
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| Limits | |
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| Growth capital: financing companies' expansion | |
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| Growth capital investment targets | |
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| Actors and structures | |
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| Operational activities | |
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| Challenges | |
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| Limits | |
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| Leveraged buy-out: financing companies' transmissions | |
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| LBO investment targets | |
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| Actors | |
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| Operational activities | |
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| Challenges | |
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| Limits | |
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| Other interventions in private equity | |
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| Targeting the stock exchange | |
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| Turn-around capital and special situations | |
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| Distressed debt | |
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| Quasi-equity instruments (mezzanine) and second lien debt | |
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| Merchant banking, investment banking and private equity house intervention | |
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| Secondary market | |
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| Real estate, infrastructure and exotic assets | |
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| Conclusion | |
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| The Process of Investment: A Matter of Trust and Mutual Interest | |
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| Step 1: Preliminary analysis | |
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| Step 2: Valuation | |
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| Step 3: Negotiating | |
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| Step 4: Structuring | |
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| Step 5: Complementary due diligences | |
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| Step 6: Transaction | |
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| Step 7: Monitoring and exit | |
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| Conclusion | |
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| Private Equity in Teenage Time: Trend Setting, Fads and Responsibilities | |
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| Private Equity Evolution: Trends or Buzzes? | |
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| Is private equity going mainstream? | |
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| Is private equity (still) creating value? | |
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| Private equity: between bubbles and crashes | |
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| Conclusion | |
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| There is no such thing as 'capital overhang' | |
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| Private Equity and Ethics: A Culture Clash | |
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| Greed | |
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| Destruction | |
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| Philanthropy | |
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| Transparency | |
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| Confidentiality and self-regulation | |
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| Conclusion | |
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| General Conclusion - Private Equity Today and Tomorrow | |
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| Core target: manage the volatility of performance | |
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| The only valid leitmotiv: long-term thinking | |
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| The impact of the fair market value | |
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| A long-term trend: the attractiveness of private equity | |
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| Private equity: future victim of its own success? | |
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| The impact of a better knowledge of private equity | |
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| Understanding the risk and managing the J-Curve | |
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| Innovating through structuring | |
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| Private equity and universal owners | |
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| Change or die: the pressure on general partners | |
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| Regulation: Damocles' sword looming over private equity | |
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| Glossary | |
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| Bibliography | |
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| Index | |