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? ›

Skeptics contend that some private equity firms prioritize short-term gains over long-term value creation, leading to cost-cutting measures, layoffs, and divestitures that may erode the long-term viability of portfolio companies and harm employees and communities.

What is private equity in a nutshell? ›

Private equity is ownership or interest in entities that aren't publicly listed or traded. A source of investment capital, private equity comes from firms that buy stakes in private companies or take control of public companies with plans to take them private and delist them from stock exchanges.

Why is private equity so famous? ›

Private equity firms can access large amounts of capital, which is attractive to business owners, especially as bank loans are becoming harder to access.

Who owns private equity? ›

Private equity funds are generally backed by investments from large institutional investors: pension funds, sovereign wealth funds, endowments and very wealthy individuals. Private equity firms manage these funds, using both investors' contributions and borrowed money.

What brands are destroyed by private equity? ›

Remember Payless Shoes, KB Toys, Gymboree, Radio Shack, Brookstone, Sears — all tenants of the mall a few years ago, but now all gone thanks to the destructive practices of private equity's business model.

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.

Is BlackRock private equity? ›

Private equity is a core pillar of BlackRock's alternatives platform. BlackRock's Private Equity teams manage USD$41.9 billion in capital commitments across direct, primary, secondary and co-investments.

What is the difference between a hedge fund and a PE? ›

Hedge funds are alternative investments that use pooled money and a variety of tactics to earn returns for their investors. Private equity funds invest directly in companies, by either purchasing private firms or buying a controlling interest in publicly traded companies.

How does private equity make money? ›

Private equity firms buy companies and overhaul them to earn a profit when the business is sold again. Capital for the acquisitions comes from outside investors in the private equity funds the firms establish and manage, usually supplemented by debt.

What are the disadvantages of private equity? ›

However, private equity also comes with notable drawbacks. These investments typically require a long-term commitment, often locking up capital for several years, and they tend to be less liquid than public equities.

What is the average return on private equity? ›

Average returns
PeriodAverage annualised returnTotal return
Last year38.1%38.1%
Last 5 years15.8%107.9%
Last 10 years15.0%303.1%

What is the largest company in private equity? ›

Blackstone Inc.

Does Warren Buffett do private equity? ›

Warren Buffett is known for his successful investments in the stock market, but he has also made significant investments in private equity firms. In fact, in 2008, Buffett invested $5 billion in Goldman Sachs, which was struggling during the financial crisis.

Who is the mother of private equity? ›

Renuka Ramnath (born 14 September 1962) is an Indian private equity fund manager, and the founder and CEO of Multiples Asset Management Ltd.

How many hospitals are PE owned? ›

Just how popular is PE? The researchers found that PE firms own at least 460 US hospitals. More than a quarter (26%) of the hospitals are located in rural areas, with Texas having the most of all 50 states (97).

Why not to go into private equity? ›

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 is the downside 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 are the political risks of private equity? ›

Political risk can come in many forms, including nationalisation, expropriation, forced abandonment, war and embargo. As a result, private equity investors typically adjust the internal cost of capital to compensate for political risk, which can threaten the competitiveness of a bid as a result.

What is the biggest challenge in private equity? ›

Slow economic growth, labor issues, high interest rates, inflation, geopolitical tensions, potential recessionary pressures, and instability could all dampen fundraising and exit opportunities. Despite the slowdown in 2023, private equity firms remain optimistic.

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