Introduction to Private Equity is a critical yet grounded guide to the private equity industry. Far more than just an introductory guide, the book blends academic rigor with practical experience to provide a dynamic perspective on this sector of the financing industry. The book highlights the factors necessary to the emergence of a viable private equity sector, its development and also the specific geographical factors. It delivers a comprehensive and objective perspective from a professional who has worked at all the levels of the industry, from portfolio companies, to funds, to funds of funds and institutional investors. The book provides a wealth of practical experience, combined with a synthetic approach. The author fosters objectivity and offers an approach which goes beyond the usual and formatted speeches from industry lobbies, practitioners or disconnected academia. The book covers the private equity industry as a whole, in a dynamic approach combining historical perspective with recent developments. The book hence covers the organization of the private equity sector, its governance and functions, details the segments of the industry (such as leveraged buy-outs, venture capital, growth capital, special situations, funds of funds, mezzanine financing, secondary investments and beyond). This framework is used to draw perspectives on the future development of the industry. A balanced perspective on the current challenges faced by private equity, the book also addresses issues such as valuing private businesses (sometimes without revenues); the methods and audits used to acquire these businesses; the due diligences and the negotiations. It is a valuable insight to a rather opaque market.
Book Details:
- Author: Cyril Demaria
- ISBN: 9781118571897
- Year Published: 2013
- Pages: 408
- BISAC: BUS017010, BUSINESS & ECONOMICS/Corporate Finance / Private Equity
About the Book and Topic:
Introduction to Private Equity is a critical yet grounded guide to the private equity industry. Far more than just an introductory guide, the book blends academic rigor with practical experience to provide a dynamic perspective on this sector of the financing industry. The book highlights the factors necessary to the emergence of a viable private equity sector, its development and also the specific geographical factors. It delivers a comprehensive and objective perspective from a professional who has worked at all the levels of the industry, from portfolio companies, to funds, to funds of funds and institutional investors. The book provides a wealth of practical experience, combined with a synthetic approach. The author fosters objectivity and offers an approach which goes beyond the usual and formatted speeches from industry lobbies, practitioners or disconnected academia. The book covers the private equity industry as a whole, in a dynamic approach combining historical perspective with recent developments. The book hence covers the organization of the private equity sector, its governance and functions, details the segments of the industry (such as leveraged buy-outs, venture capital, growth capital, special situations, funds of funds, mezzanine financing, secondary investments and beyond). This framework is used to draw perspectives on the future development of the industry. A balanced perspective on the current challenges faced by private equity, the book also addresses issues such as valuing private businesses (sometimes without revenues); the methods and audits used to acquire these businesses; the due diligences and the negotiations. It is a valuable insight to a rather opaque market.
Private equity is the business of financing private businesses (i.e., not listed on the stock exchange) at every stage of their development (from seed to venture, to growth, to leveraged buy-out and distressed debt/restructuring). Increasingly, this definition has to be interpreted widely and as encompassing also quasi-equity (and even debts in the context of distressed companies), public companies taken private (or even sometimes remaining public) and this definition evolves constantly and rapidly. Private equity and private finance are recent sectors of the financial world. Private equity emerged as a modern sector in the decades 1970-1980. In Europe, these financial techniques were imported in the decades 1990-2000. The rest of the world started adopting them in the late 2000s. This evolution is only matched by hedge funds (as of 2012, private equity funds are managing collectively an estimated amount of USD 1.8 trillion, and hedge funds 2.1 trillion). Changes (regulations, business practices, activities, strategies) affecting the sector have been rapid, numerous and difficult to follow and interpret. This book is the first step to understand this sector, and later be able to follow its developments.
UPDATED AND EXPANDED CONTENT: 30% of the content updated and a further 30% added to the text. MARKET SIZE private equity represented 45.5 billion invested in Europe in 2010. Funds raised actually exceeded 39 billion (+80% year-on-year). SUCCESSFUL FRENCH EDITION book is now in its fourth edition in France (01/2013), and has been adapted for the Swiss market, with a second edition (07/2012). Spanish version (published by Piramide), Portuguese version (published by Atlas) and Chinese versions are under way. PROVEN AREA Wiley has had great success with its Private Equity stable, including Fraser Sampson and Meyer & Mathonet. This book will add a new angle.
About the Author
Cyril Demaria (Zurich, Switzerland) is an Associate Professor of Finance at ESSCA (France and Budapest), at the Université Catholique de Paris, in France and at EADA, Barcelona, where he teaches Private Equity, LBO, Money and Finance and International Finance. Before moving to academia, he worked in multi strategy fund of funds at Pionat Viable investments, and previously in Adveq in Zurich. He has also held positions as a portfolio equity manager at Maaf Gestion, where he managed assets in excess of $60 Million, and was also head of Corporate Development at Externall in Paris. He is also on the Advisory Board of the Eurosif Committee, and collaborates regularly with the European Venture Capital Association (EVCA). Cyril Holds 2 Masters Degrees and a Diploma from HEC.