Index
A
3i Group PLC
AA Corporation
Abbott Capital, account managers
Aberdeen Asset Management
ABN Amro
“abnormal performance”
Abraaj Capital
ABSs see asset-backed securities
ACA see Angel Capital Association
academic findings, performance issues
Accel Partners
account managers
critique
examples
learning curves
roles
accounting
see also financial statements
advisers
complexities
concepts
conventions
interpretation of fund accounts
LPAs
major issues
notes to the accounts
policies
accounting standards
see also FRS …; GAAPs; IFRSs; regulations
accruals
carried interest
concepts
conservatism principle
consolidation requirements
“Other” accounting frameworks
partner’s capital contributions
priority profit shares
responsibility shift from GPs to LPs
tax
“true and fair view” requirements
Accounting Standards Board (ASB)
accredited/unaccredited angel investors
accruals
acquisitions
see also funding structures; trade sales
bolt-on growth by acquisition strategies
stages of LBO
deal transactions
active management
active management/ownership stage of LBO deal transactions
active/passive angel investors
Adams Street Partners
Aditya Birla Group
adjusted DCFs
adjustments, valuations
advisors
see also account managers; consultants; fundraising agents; gatekeepers; legal advisors
due diligence
excessive caution pitfalls
fees
legal risk
secondary markets
types
advisory boards
Afghanistan
Africa
see also Middle East …; sub-Saharan …
agents
see also fundraising agents; investment banks
sales of companies/business divisions
types
AICPA
AIFM see Alternative Investment Fund Manager directive
AIM see Alternative Investment Market
Alchemy Partners
Algeria
Alix Partners
Alliance Boots
alphas
AlpInvest, funds of funds
ALPS Fund Services
Alternative Investment Fund Manager directive (AIFM)
concepts
scope
Alternative Investment Market (AIM)
alternative investments
see also commodities; hedge funds …; private equity; real estate
regulatory changes
types
Altius Associates, funds of funds
altruistic motives of some angel investors
Amadeus Capital Partners
American Capital Ltd
American Research & Development Corporation (ARDC)
Amiga, Yoram
amortization
analysis processes
see also deal analysis
concepts
Anderson, Douglas
Angel Capital Association (ACA)
angel investors
accredited/unaccredited types
active/passive types
altruistic motives
antidilution clauses
BANs
bargaining stage
boards of directors
business plans
common stock
concepts
contract/documentation needs
definition
diversification
due diligence
entrepreneurs
exit strategies
famous recipients
government support
historical background
human capital
investment processes
liquidation clauses
management relationships
motivations
processes
recent developments
returns
roles
screening/selection processes
sectors
statistics
success/failure factors
syndicates
tax
trends
types
valuations
value creation
venture capital
angel networks
Angola
Anson, George
antidilution clauses
AP Software, Bloomsbury Capital
Apax Partners
Apollo Global Mgmt.
Apollo Investment Corp.
Apple Computer
arbitrage
Archangel Informal Investment
ARDC see American Research & Development Corporation
Argentina
articles of association, angel investors
ASB see Accounting Standards Board
Asia
see also China; individual countries
Mekong Capital
performance statistics
statistics
AsiaPacific market, statistics
asset allocations, LP investment processes
asset bases, LBO deal transactions
asset-backed securities (ABSs)
assets
see also balance sheets; current …; fixed …; human capital
classes
post-deal operational improvements
strippers
asymmetrical transactions, Zebra Fund LP financial statements
attribution analysis
auctions
Auditing Practices Board
auditors
disclosure requirements
opinions
reports
roles
Australia
Austria
AXA PE, funds of funds
B
bad debts
Bahrain
Bain Capital
see also Edcon; Seat SpA
historical background
opportunities
overview
balance sheets
see also case studies; financial statements
Baltics/Balkans
Band of Angels
Bangladesh
bankruptcies
banks
Banque Pierre Malland, Bloomsbury Capital
BANs see business angel networks
Barnea, Michael
Baroness Group
barriers to market entry/exit
Basel III
BBAA see British Business Angels Association
BCG
BDCs see business development companies
Bechtolsheim, Andy
Belgium
Belke, Robert
benchmarking
academic findings
alternative approach
cash flow timing issues
challenges
difficulties
funds of funds
ideal benchmarks
industry valuation benchmarks
LPE
multiples
peer groups
public market equivalents
risk adjustments
selection issues
Berk, Ted
Berlusconi, Silvio
Bermuda
Bessemer family
“best of breed” outsourcing strategies
“best efforts” covenants
betas
Bhimavarapu, Ananth Vyas
bid spreads, secondary markets
bidders
see also prices
BIMBOs see buyin management buyouts
biomass technology
black economic empowerment (BEE), South Africa
BlackRock Advisors
Blackstone Group
“blind pool” of capital
Bloomsbury Capital
AP Software
Banque Pierre Malland
historical background
human capital
investment opportunities
Niras Technologies
overview
VI niche fund
BMW
boards of directors
angel investors
IPOs
PE governance models
venture capital
Body Shop
bolt-on growth by acquisition strategies, post-deal operational improvements
bond markets
Bonderman, David
Bonomi, Andrea C.
book value multiples
see also firm value to total assets; price-to-book …
valuations
booming economies
Boots plc
brand names
Brazil
future prospects
overview
statistics
breakups
see also exit strategies
BRIC countries
see also Brazil; China; India; Russia
statistics
British Business Angels Association (BBAA)
British Home Stores (BHS)
British Venture Capital Association (BVCA)
British Virgin Islands
budgets
due diligence
pre-due diligence
Buell
Bulgaria
Burton Group, Debenhams
business angel investors see angel investors
business angel networks (BANs)
business development companies (BDCs)
business expansions
business models
business plans
angel investors
pre-due diligence
business risk
see also operational risk
pre-due diligence
buy-side investment banks, roles
buyback rights
buyers
see also general partners; private equity firms; sellers
buyin management buyouts (BIMBOs), definition
buyouts
see also case studies; leveraged …; management …
adjusted DCFs
definition
exit strategies
future prospects
global credit crisis from 2007
historical background
hostile buyouts
J-curves
rankings
revenues per GP partner
reverse LBOs
secondary market pricing
statistics
successful exits
valuations
BVCA see British Venture Capital Association
C
Cagiva
“calls” for LP capital
see also drawdowns; loan …
definition
CalPERS
see also institutional investors
CalSTRS
see also institutional investors
Cambridge Associates, consultants
Campbell Lutyens
Canada
cap tables, venture capital
capital adequacy requirements
capital allocations, international capital allocations
capital contributions
see also loan …
accounting standards
Capital Dynamics, funds of funds
Capital for Enterprise
see also Enterprise Capital Funds
“equity gap” issues
future prospects
historical background
OTECF fund
overview
capital expenditure
capital gains tax
Capital Southwest
capital-weighted IRRs
critique
definition
CAPM
see also cost of equity
captive private equity funds
Carlyle Group
Carnegie Steel Company
carried interest
see also fees
accounting standards
in the accounts of the carry (founder) LP
in the accounts of the fund
in the accounts of the manager
calculation mechanisms
definition
fair value
IFRSs
tax pressures
term sheets
U.K. GAAP
carried interest partner see carry (founder) LPs
carry (founder) LPs
carry level, definition
carveouts
case studies
Bloomsbury Capital
Capital for Enterprise
Debenhams
Ducati
ECFs
Edcon
FiberNet Communications
Mekong Capital
Optos
overview
Realza Capital
Seat SpA
Styles & Wood
SunRay Renewable Energy
Swicorp
cash balances, balance sheets
cash flow imbalances
cash flow statements
see also case studies; financial statements
cash flows
see also discounted …
benchmarking
deal analysis
LBO deal transactions
performance issues
pre-due diligence
“cash-burn’, venture capital
cash-on-cash returns (COC)
see also multiples
definition
Castiglioni brothers, Ducati
catch-up periods, definition
Cayman Islands
CDH Investments
CDOs see collateralized debt obligations
Cecil, Anthony
Central and Eastern Europe (CEE)
see also individual countries
future prospects
list of countries
statistics
CFOs see collateralized fund obligations
Chariot Skates PLC valuation example
Chile
China
future prospects
historical background
overview
regulations
social capital (guanxi)
statistics
venture capital
China Direct Investment Funds (CDIFs)
“Chinese walls”
Chrysler
churn analysis
CIPs see carry (founder) LPs
CIS see Commonwealth of Independent States
Citigroup
civil code
Clal Industries & Investments Ltd
Clark, Giles
classifications, private equity funds
clawback provisions
clean-tech companies
CLOs see collateralized loan obligations
closed-ended funds
closure
clusters (geographies), venture capital
co-investments
definition
funds of funds
COC see cash-on-cash returns
Cogent Partners
Coles, Jo
collateralized debt obligations (CDOs)
collateralized fund obligations (CFOs)
collateralized loan obligations (CLOs)
see also structured finance
collect data substep, pre-transaction structure model-building steps
Coller Capital
Colombia
commercial due diligence
commingled accounts, funds of funds
commitment levels, limited partnerships
commodities
commoditization
common law systems
common stock
angel investors
venture capital
Commonwealth of Independent States (CIS)
see also Russia
communications
see also reporting …
Companies Acts, U.K.
competition
competition-based optimizations
Optos
Porter’s five-forces model
compliant bids, definition
compound returns
computer technologies
confidentiality issues
conflicts of interest
conservatism principle, accounting standards
consolidated accounts, accounting standards
consolidation requirements
“control” concepts
critique
fair value
“for benefit” questions
IFRSs
U.K. GAAP
U.S. GAAP
within the fund
within the manager or GP
consortiums, Debenhams
construction phase, leveraged buyout modeling
consultants
critique
examples
fees
learning curves
roles
contingency-related adjustments, valuations
“control” concepts, consolidation requirements
control values, valuations
conversion clauses, dilution-related valuation adjustments
Conversus Capital
convertible securities
Cornioley, Pauline
corporate governance
emerging markets
risks
strategic asset allocations
value creation
venture capital
corporate venture capital (CVC)
corruption
cost of capital
see also weighted average …
cost of debt
see also weighted average costs of capital
cost of equity
see also CAPM; weighted average costs of capital
cost of goods sold, Toys R Us
Costeletos, Philippe
costs
see also financial statements
IPOs
limited partners
operational improvements
coupon obligations, debt finance
covenants
credit bubbles
see also global credit crisis from
credit card receivables
credit ratings
Credit Suisse
creditors
see also financial statements
critical success factors
CRM
Croatia
cross-country pitfalls, valuations
cultural issues
see also local knowledge
strategic asset allocations
currency risk
current assets
see also balance sheets
Toys R Us
current liabilities
see also balance sheets
Toys R Us
current portfolio valuations, secondary markets
customer/contractual risk
LBO deal transactions
pre-due diligence
customers
CVC see corporate venture capital
CVC Partners
cyclicality of the private equity industry
Czech Republic
D
data rooms, due diligence
Davies, Neil
days inventory held ratios (DIH)
days payable outstanding ratios (DPO)
days sales outstanding ratios (DSO)
DCFs see discounted cash flows
DDQs, due diligence
de-leveraging effects, value creation
de-listings
deal analysis
definition
due diligence
funding structures
investment thesis
models
ownership plans
ownership structures
sale processes
valuations
deal boxes
deal dynamics, emerging markets
deal-by-deal basis
Debenhams
Baroness Group
bidders
brand mix
Burton Group
financial information
financial statements
historical background
human capital
inducement fees
Laragrove consortium
overview
Permira Advisers Ltd.
post-deal operational improvements
reverse LBOs
statistics
Takeover Panel’s scheme of arrangement
TPG investment committee
debt capacity, transaction structure determination: sources of funds modeling steps
debt finance
see also junior …; leveraged buyouts; mezzanine …; senior …
convertible securities
coupon obligations
coverage ratios
fees
global credit crisis from 2007
optimization/analysis modeling steps
optimized debt structures
post-transaction structure model-building steps
recapitalizations
restructured (workout) debt
revolver facilities
second-lien debt
transaction structure determination: sources of funds modeling steps
types
venture lending
debt schedules, post-transaction structure model-building steps
debt service coverage ratios (DSCRs)
debt-related adjustments, valuations
debt/equity ratios
see also weighted average costs of capital
debtors income, Zebra Fund LP financial statements
degrees of freedom, leveraged buyout modeling
Del Torchio, Gabriele
Delaware
Denham Capital Management
Denmark
Denny, David
denominator effect
Department for Business Innovation and Skills (BIS)
depositaries
depreciation
DCF calculations
Toys R Us
derivatives
dilution-related valuation adjustments
put options
Deshormes, Etienne
Deutsche Bank
developmental capital
developmental finance institutions (DFIs)
DFIs see developmental finance institutions
Digital Equipment Corporation (DEC)
dilution-related adjustments
Dimson, Benjamin
direct control mechanisms, incentive alignments
directory products and services, Seat SpA
disclosure letters, angel investors
disclosure requirements
see also accounting …
auditors
David Walker Guidelines
discounted cash flows (DCFs)
see also net present values
adjustments
concepts
critique
definition
enterprise values
examples
steps
terminal values
values of operations
discounts/premiums to NAVs
distressed investment funds
see also loan-to-own strategies; rescue finance; turnarounds
definition
distressed restructuring (secondarydistressed) sale situations, due diligence
distributed value to paid-in ratio (DVPI)
distributions, accounting standards
diversification
see also portfolio construction; risk
angel investors
emerging markets
funds of funds
future prospects
LP investment processes
LPE
venture capital
divestitures
dividends
Dixon, Andrew
documentation
see also legal issues; limited partnership agreements; side letters; term sheets
DoddFrank Wall Street Reform and Consumer Protection Act 2010
see also Securities & Exchange Commission
Doriot, General Georges F.
dormant angel investors
dotcom bubble burst of 2000
see also Internet …
Dow Jones indexes
Dow Jones STOXX Europe Private Equity 20 index
downturn strategies, future prospects
drag rights, definition
drawdowns
see also “calls” for LP capital
DSCRs see debt service coverage ratios
DTI Capital Fund Program, U.K.
dual-track exit strategies
see also exit strategies
Dubai
Ducati
see also Investindustrial
Cagiva
Castiglioni brothers
due diligence
financial statements
historical background
human capital
improvements (20062008)
June
kaizen method
overview
racing record
statistics
TPG
trade buyers
“wild ride” for the stock
due diligence
see also case studies; pre–due diligence
advisors
angel investors
assessments of GPs
budgets
buyer’s perspective
commercial issues
concepts
data rooms
DDQs
deal analysis
definition
distressed restructuring (secondarydistressed) sale situations
ECFs
emerging markets
environmental risk
exit strategies
face-to-face meetings with GPs
family sale (primary) situations
fees
financial reviews
formal due diligence
go-private sale situations
house-purchasing analogy
human capital
hypothesis approaches
influences
information sources
investment evaluations
investment processes
LBO deal transaction stages
legal issues
legal risk
market standards
matrix approaches
operational due diligence
overview
pension plans
qualitative/quantitative activities
questionnaires
risk assessments
sales of companies/business divisions
secondarynon-distressed sale situations
seller’s perspective
side letters
stages
strategy assessments
tax
term sheets
timescales
track records
types
value creation
venture capital
Dun & Bradstreet
duration
DVPI see distributed value to paid-in ratio
E
Earl, Belinda
Earley, Rory
Early Growth Funding Program (EGFP)
early-stage firms
see also angel investors; venture capital
earnings
see also EBIT …
interest rates
EBAN see European Business Angels Network
EBIT
EBITDA
see also financial statements
growth projections
post-deal operational improvements
EBT
ECFs see Enterprise Capital Funds
economics
emerging markets
funds of funds
Italy
liberalization policies
LPE
private equity funds
U.K.
Edcon
see also Bain Capital
the deal
financial statements
historical background
leverage issues
opportunities
overview
sourcing issues
South African Breweries (19821999)
statistics
Steve Ross (19982007)
Sydney Press (19291982)
Egypt
Electra Private Equity
Elm Capital
emerging markets
see also Asia; Brazil; BRIC …; Central and Eastern Europe; China; India; Latin America …; Middle East …; Russia; sub-Saharan Africa
alternative funding sources
analysis processes
antidilution clauses
attractions
concepts
corporate governance
cultural issues
currency risk
deal dynamics
definition
DFIs
drivers for PE investments
due diligence
economic liberalization policies
Edcon
exit strategies
FiberNet Communications
future prospects
heterogeneous aspects
human capital
hurdles
information risk
intellectual property
investment landscape
IPOs
legal issues
list of countries
local knowledge
macrolevel risks
macrotrends
management risk
market structures
Mekong Capital
microlevel risks
minority positions
monitoring processes
overview
performance issues
political risk
preferred shares
property rights
rankings
regulatory risk
returns
risk
screening/selection processes
statistics
stock markets
strategic buyers
structuring processes
SWFs
Swicorp
valuations
venture capital
Emerging Markets Private Equity Association (EMPEA)
Employee Retirement Income Security Act (ERISA), U.S.
employment laws, headcount reductions
endowments
Enron
Enterprise Capital Funds (ECFs)
see also Capital for Enterprise
critique
due diligence
early years of operation
flow of funds
fund manager selections
future prospects
government loan conditions
historical background
international comparisons
investment restrictions
key questions
launching
legal structures
liquidation conditions
monitoring and licenses
objectives
options
OTECF fund
previous programs
private capital requirements
returns
SBICs
statistics
Enterprise Investment Scheme (EIS), U.K.
enterprise values
see also valuations
definition
examples
entire PE universe, performance issues
entrepreneurs
angel investors
Capital for Enterprise
qualities
salaries
venture capital
environmental risk
due diligence
pre–due diligence
equity finance
see also shares
convertible securities
optimization/analysis modeling steps
transaction structure determination: sources of funds modeling steps
“equity gap” issues
equity puts,
see also put options
ERISA see Employee Retirement Income Security Act
ERP
AP Software
Warburg Pincus
escrow accounts
Estonia
Eurazeo SA
EURIBOR
Europe
see also European Union; IFRSs; individual countries
AIFM
angel investors
Bloomsbury Capital
Ducati
exit strategies
Investindustrial
LPE
performance statistics
Realza Capital
registration requirements
regulatory changes
renewable market in 20062008
Seat SpA
statistics
SunRay Renewable Energy
venture capital
European Business Angels Network (EBAN)
European Commission
European Union (EU)
see also Europe
EVCA
Excel applications, leveraged buyout modeling
excessive caution pitfalls, valuations
exit strategies
see also initial public offerings; recapitalization …; secondary buyouts; share repurchases; strategic buyers
angel investors
breakups
buyouts
concepts
critique
definition
dual-track exit strategies
due diligence
emerging markets
exit determination and returns computation modeling steps
GP/LP perspectives
human capital
IRR criteria
LBO deal transaction stages
liquidations
plans
statistics
steps
strategic considerations
tax
timescales
types
U.S./European contrasts
valuations
venture capital
exit values, secondary market pricing
exit determination and returns computation modeling steps, leveraged buyout modeling
expectations, returns
expenses
experiential knowledge
eye diseases
eye structure
F
face-to-face meetings with GPs, due diligence
failures, private equity
fair value
see also valuations
carried interest
concepts
consolidation requirements
definitions
GAAPs
prices of recent investments
Fairchild Semiconductor
family offices
family status issues, emerging markets
family sale (primary) situations, due diligence
FAS
feasibility studies
see also deal analysis; pre–due diligence
fees
see also carried interest; management …; monitoring/transaction …; remunerations
advisors
consultants
critique
debt finance
due diligence
fundraising agents
funds of funds
legal advisors
transaction structure determination: uses of funds steps modeling
types
FiberNet Communications
see also Warburg Pincus
cable TV industry
competitors
financials
historical background
human capital
opportunities
overview
statistics
television broadcasting market
final IRRs
financial institutions
see also banks; institutional investors; insurance companies
financial reviews, due diligence
Financial Services Authority (FSA)
financial sponsors, roles
financial statements
see also balance sheets; case studies; cash flow statements; notes …; profit and loss accounts
pre-transaction structure model-building steps
Toys R Us
Zebra Fund LP
Fininvest Group
Finland
firm value increases, value creation
firm-value-to-EBITDA multiples
firm-value-to-total-assets valuations
fixed assets
see also balance sheets
Toys R Us
Zebra Fund LP financial statements
fixed coverage ratios
flotations see initial public offerings
follow-on funds
“for benefit” questions, consolidation requirements
forecasts
leveraged buyout modeling
pre–due diligence
pre-transaction structure model-building steps
foreign exchange transactions
see also currency risk
accounting standards
foreign investors, statistics
formal due diligence
see also due diligence
forward mergers
forward yield curves, Hungary
foundations
FPPs see full potential programs
France
fraud
free cash flows
Freedom of Information Act, US
Freund, Chris
“friends and family” investors
FRS 2 (“Accounting for Subsidiary Undertakings’)
FRS 5 (“Reporting the Substance of Transactions’)
FRS 9
FRS 25, capital contributions
FRS 26 (“Financial Instruments Measurement’)
FRSSE
FSA see Financial Services Authority
FTSE indexes
fuel cells
full potential programs (FPPs)
full ratchets, venture capital
fund managers
see also case studies; general partners; private equity firms
analysis processes
powers
rankings
regulatory changes
roles
staff levels
statistics
fund selections, LP investment processes
“fund as a whole” approach
definition
funding structures
see also debt …; equity …
acquisitions stage of LBO deal transactions
concepts
deal analysis
venture capital
fundraising
global credit crisis from
statistics
fundraising agents
examples
fees
roles
fundraising period of a limited partnership
funds of funds
see also gatekeepers
active portfolio management
activity types
benchmarking
co-investments
commingled accounts
conflicts of interest
cost comparisons
critique
definitions
diversification
economics
examples
fees
future prospects
historical background
investment processes
learning curves
limited partnerships
listed funds of funds
monitoring services
outsourcing approaches
performance issues
pooled vehicles
regulations
reputations
research services
risk management services
roles
scaling benefits
secondary markets
selection criteria
separate accounts
statistics
timescales
top teams
track records
value-added services
volumes of funds
G
GAAPs
see also FRS …; U.K. …; U.S. …
concepts
consolidation requirements
fair value
IFRSs
interpretation of fund accounts
types
Gadiesh, Orit
“garbage in, garbage out” principle (GIGO)
gatekeepers
see also account managers; advisors; consultants; fundraising agents; funds of funds
conflicts of interest
in-housing considerations
investment program phases
learning curves
secondary markets
types
Gateway (Somerfield)
GCC see Gulf Cooperation Council
Geary, Michael
general partners (GPs)
see also buyouts; case studies; fund managers; intermediation; private equity firms; venture capital
assessments
“best efforts” covenants
capital contributions
carried interest
confidentiality issues
consolidation requirements
definition
due diligence
exit strategies
experiential knowledge
fees
incentive alignments
loans from LPs
LPE
monitoring by LPs
previous performance assessments
priority profit shares
removal mechanisms
reputations
responsibility shift from GPs to LPs
revenues per partner
roles
secondary markets
skills
specialization factors
team assessments
term sheets
track records
geothermal technology
Gera, Edward M.
Germany
Gimv NV
global credit crisis from
causes
economic recovery rates
Glossop, Mike
Glover, Anne
GLPEI
go-private sale situations, due diligence
going concerns
Goldman Sachs
González del Valle, Martín
Gottschalg, Oliver
governance models
see also corporate governance
value creation
government funds
see also Enterprise Capital Funds; sovereign wealth …
international comparisons
GPs see general partners
Greece
Green, Philip
Green, Terry
gross margins, post-deal operational improvements
Group of Seven (G7)
growth rates DCF calculations
EBITDA growth projections
market growth
GS see Goldman Sachs
GTE
Guernsey
Gulf Cooperation Council (GCC)
see also Middle East and North Africa
H
HAL Trust NV
Hamilton Lane, account managers
HarbourVest Partners
Harley-Davidson
Harvard University
harvesting period of a limited partnership
see also exit strategies
Harvey, Richard
hedge funds
hedging
Helix, fundraising agents
Hewitt Associates, consultants
HgCapital Trust
high-level portfolio maps
high-net-worth individuals (HNWIs)
see also angel investors; limited partners
high-yield bond markets
see also junk bonds
historical cost accounting convention
HIV/AIDS
Ho-Fernández, Enrique
Holmen, Hans
Honda
Hong Kong
Hospital Corporation of America
hostile buyouts
house-purchasing analogy, due diligence
HSBC
human capital
see also case studies; management …
angel investors
due diligence
emerging markets
exit strategies
headcount reductions
Investindustrial
LBO deal transactions
post-deal operational improvements
sales teams
venture capital
Hungary
cable TV industry
FiberNet Communications
historical background
MatávkábelTV
statistics
television broadcasting market
UPC Hungary
yield curves
hurdle rates
definition
NPVs
hybrid securities
hydroelectric technology
hypothesis approaches, due diligence
I
IAS 27 (“Consolidated and Separate Financial Statements’)
IAS 32, capital contributions
IAS 39
IASB see International Accounting Standards Board
IBM
ICP, Mekong Capital
IFRS 8 (“Operating Segments’)
IFRSs
see also IAS …
capital contributions
carried interest
concepts
consolidation requirements
principles-based approach
priority profit shares
U.K. GAAP
illiquidity discounts, valuation adjustments
ILPA see Institutional Limited Partners Association
ILPEI
in-housing contrasts, outsourcing
incentive alignments
Income and Corporations Taxes Act 1988
income statements see profit and loss accounts
indemnification
indemnities
secondary buyouts
trade sales
independent companies, definition
independent private equity funds
indexes
see also Dow Jones …; FTSE …; NASDAQ; S&P …
LPE
secondary markets
India
future prospects
overview
regulations
statistics
venture capital
individual fund selections, LP investment processes
Indonesia
industry factors, LBO deal transactions
industry valuation benchmarks, valuations
inflation levels
information asymmetries
information memorandums, sales of companies/business divisions
information risk, emerging markets
information sources, due diligence
initial public offerings (IPOs)
see also exit strategies
after-market performance failings
concepts
costs
critique
definition
dual-track exit strategies
emerging markets
offering structures
plans
preparations
processes
returns
reverse IPOs
statistics
timescales
underwriting firms
innovations
bidders
Optos
inorganic deals, “abnormal performance”
insider trading
institutional investors
see also financial institutions; foundations; funds of funds; insurance companies; limited partner …; pension funds; sovereign wealth funds
definition
funds of funds
secondary markets
statistics
types
venture capital
institutional IPO offering, definition
Institutional Limited Partners Association (ILPA)
insurance brokers, advisory roles
insurance companies
see also institutional investors
Intaj fund
intangible assets
see also intellectual property; patents
integration (100-day) plans
see also ownership transfers
sales of companies/business-divisions
Intel
intellectual property
emerging markets
Optos
pre–due diligence
interest income
Toys R Us
Zebra Fund LP financial statements
interest rates
earnings
EURIBOR
LIBOR
interest service coverage ratios (ISCRs)
interim IRRs
see also J-curves
Intermediate Capital Group PLC
intermediation
see also advisors; gatekeepers
internal rates of returns (IRRs)
see also final …; interim …; J-curves; modified …; performance issues; pooled …; returns
angel investors
critique
definition
exit strategies
groups of private equity funds
LBO deal transactions
statistics
time value of money
International Accounting Standards Board (IASB)
see also IAS …; IFRS …
international capital allocations
International and Commercial Financial Corporation (3i)
International Finance Corporation
International Private Equity and Venture Capital Valuation Guidelines Board (IPEV)
Internet
dotcom bubble burst of 2000
Seat SpA
interpretation of fund accounts
introductory background
Invesco
invested capital, definition
Investindustrial
see also Ducati
Fund III
Fund IV
historical background
human capital
overview
statistics
investment banks
see also buy-side …; sell-side …
definition
fees
reform packages
regulatory requirements
reviews
roles
investment companies
AICPA
LPE
investment evaluations, due diligence
investment period of a limited partnership
investment processes
angel investors
due diligence
funds of funds
LPs
monitoring processes
portfolio construction
selection processes
strategic asset allocations
venture capital
investment proposals
investment and shareholders’ agreements, angel investors
investment sourcing, fund selections
investment thesis
see also deal analysis
definition
examples
post-deal operational improvements
investment trusts
see also venture capital trusts
investments, accounting policies
Investor AB
investors
see also angel …; case studies; due diligence; intermediation; limited partner …
decisions
dilution-related adjustments
foreign investors
information asymmetries
interpretation of fund accounts
“most favored nation” clause
motivations
types
IPEV see International Private Equity and Venture Capital Valuation Guidelines Board
IPOs see initial public offerings
Iran
Iraq
Ireland
IRRs see internal rates of returns
ISCRs see interest service coverage ratios
Islamic law, common law systems
Israel
issuer limited partnerships
IT
post-deal operational improvements
structures
Italy
directory market
Ducati
economic landscape
Investindustrial
political landscape
privatization processes
Seat SpA
solar PV technology
statistics
ITT
J
J-curves
see also interim IRRs
Jafco Company Ltd.
Japan
Jarvis, Peter
JATE
Jersey
Jet Stores
J.H. Whitney & Company
Jinkens, Brenlen
Jordan
JP Morgan
Juncosa, Oriol
junior debt
see also high-yield bond …; mezzanine …; subordinated …
junk bonds
see also high-yield bond markets
definition
just-in-time cash management
K
kaizen method, Ducati
Katyal, Sonia
Kawasaki
Kenya
key performance indicators (KPIs)
see also performance issues
keyman clauses, concepts
Keynes, John Maynard
“kick-out rights” (removal mechanisms)
Kinko’s
KKR
Kleiner Perkins Caulfield & Byers
KM
knowledge, experiential knowledge
Koertner, Bjoern
Kohlberg Kravis Roberts
Kotibhaskar, Aditya
Kovacs, Norbert
KPIs see key performance indicators
KPMG
KTM
Kumar, Ashish
Kuwait
Kyoto Protocol
L
Lahr, Henry
Lamain, William
Laragrove consortium
Latin America and Caribbean
see also Brazil; individual countries; Mexico
list of countries
statistics
Latvia
Lavine, Jonathan
Lazaar, Kamel
LBOs see leveraged buyouts
learning curves, gatekeepers
Lebanon
Lee, Norman
Leffek, Geoff
legal advisors
fees
roles
legal forms
acquisitions stage of LBO deal transactions
ECFs
LPE
secondary transactions
legal issues
see also limited partnership agreements; protections; regulations
checklists
due diligence
ECFs
emerging markets
side letters
term sheets
venture capital
legal risk
advisors
due diligence
pre–due diligence
lenders
see also banks …; debt …; loans
deal analysis and due diligence
Lerner, Josh
letter of intent, definition
leverage limits
leveraged buyout deal transactions
acquisitions stage
active management/ownership stage
asset bases
cash flows
due diligence
exit strategies
funding structures
human capital
industry factors
IRRs
J-curves
management capabilities
negotiations stage
opportunities’ assessments
ownership structures
regulations
screening/selection processes
stages
value creation
leveraged buyout modeling
assumptions/estimates
concepts
construction phase
definition
degrees of freedom
Excel applications
exit determination and returns computation modeling steps
“garbage in, garbage out” principle (GIGO)
optimization/analysis modeling steps
overview
phases
post-transaction structure model-building steps
pre-transaction structure model-building steps
sensitivity analysis
Toys R Us
transaction structure determination: sources of funds modeling steps
transaction structure determination: uses of funds modeling steps
leveraged buyouts (LBOs)
see also buyouts; case studies
concepts
debt/equity finance
definition
forms
future prospects
global credit crisis from
historical background
secondary-market pricing
stakeholders
statistics
Toys R Us
Lewis, Victor
LIBOR
Libya
licenses, ECFs
life cycles, limited partnerships
lifetime fees, definition
limited liabilities of LPs
limited partners (LPs)
see also case studies; due diligence; funds of funds; institutional investors; intermediation; legal issues
advisory boards
asset allocations
capital contributions
carry (founder) LPs
co-investments
costs
decisions
definition
direct control mechanisms
exit strategies
hurdle rates
incentive alignments
interpretation of fund accounts
investment processes
loans to GPs
“most favored nation” clause
motivations
protections
responsibility shift from GPs to LPs
roles
statistics
types
limited partnership agreements (LPAs)
see also legal issues; term sheets
accounting
due diligence
“most favored nation” clause
limited partnerships
see also case studies; secondary markets
accounting concepts
characteristics
commitment levels
covenants
definition
due diligence
examples
harvesting
historical background
life cycles
“qualifying”/“non-qualifying” distinctions
structural overview
term sheets
terminations
timescales
types of funds
Zebra Fund LP financial statements
liquidation preferences, dilution-related valuation adjustments
liquidations
see also exit strategies
angel investors
definition
ECFs
liquidity risk
listed funds of funds
listed private equity (LPE)
advantages/disadvantages
betas
concepts
critique
de-listings
definition
discounts/premiums to NAVs
economics
funds
heterogeneous aspects
historical background
indexes
largest LPE vehicles
legal forms
organizational forms
performance issues
risk profiles
statistics
types
listings see initial public offerings
Lithuania
“living dead” investments
loan-to-own strategies
see also distressed investment funds
definition
loans
see also “calls” …
statistics
to GPs
local knowledge
see also cultural issues
lockup periods, IPOs
logic trees, hypothesis approach to due diligence
London Seed Capital
London Stock Exchange (LSE)
Long, Charmian
low-cost countries (LCCs), outsourcing
“lower of cost or net realizable value” policy
LPAs see limited partnership agreements
LPE see listed private equity
LPs see limited partners
LPX indexes
Luxembourg
M
M&A boutique advisory firms, roles
M&As
MacArthur, Hugh
McKinsey
macroeconomic environments, strategic asset allocations
Magyar, Istvan
Mahindra & Mahindra
majority control rights
Malaysia
Maloney, John
managed auctions, secondary markets
management arbitrage, definition
management buyins (MBIs)
see also buyouts
management buyouts (MBOs)
see also buyouts
management capabilities
LBO deal transactions
pre–due diligence
management fees
see also fees; priority profit shares
definition
timescales
management perspectives, deal analysis and due diligence
management relationships
angel investors
exit strategies
post-deal operational improvements
venture capital
management risk, emerging markets
management stage of LBO deal transactions
managerial legends, value creation
manufacturing considerations, Optos
manufacturing footprint optimization (MFO)
Maraq Ltd.
market growth
market risk
see also systemic risk
pre–due diligence
market standards, due diligence
market structures, emerging markets
marketing
Martinez, Alba
MatávkábelTV
matrix approaches, due diligence
MBIs see management buyins
Meeran, Rilwan
meetings with LPs
megadeals
“megafunds”
Mekong Capital
2007 search for answers
2009 year-end performance results
AA Corporation
corporate transformation processes
historical background
human capital
ICP
MEF I
MEF II
MEF III
organizational chart
overview
VAF
MENA see Middle East and North Africa
Merrill Lynch
Mexico
Meyer, Thomas
mezzanine funds
see also warrants
definition
emerging markets
MFO see manufacturing footprint optimization
Middle East and North Africa (MENA)
see also Gulf Cooperation Council; individual countries
future prospects
list of countries
overview
statistics
Swicorp
milestones
financing
venture capital
Minoli, Frederico
minority control rights
minority positions
MIRRs see modified IRRs
models
see also leveraged buyout modeling
modified IRRs (MIRRs)
ModiglianiMiller assumptions
monitoring processes
emerging markets
funds of funds
LP investment processes
monitoring/transaction fees
see also fees
definition
Montalto Di Castro project, SunRay Renewable Energy
Morgan Stanley
Morocco
“most favored nation” clause, investors
motorcycle manufacturers
Ducati
statistics
MSCI Europe index
MTV, Hungary
multijurisdictional funds
multiple expansion
definition
Toys R Us
multiples
additional useful information
benchmarking
critique
definition 402 DVPI
examples
prospectuses
RVPI
TVPI
types
valuation methodologies
Murphy, Seán
mutual funds
MV Agusta
MVision
N
Nariman, Fardeen
NASDAQ
National Venture Capital Association (NVCA)
NAVs see net asset values
negotiations stage
angel investors
LBO deal transactions
Nemoto, Kay
net asset values (NAVs)
net assets
net debt, secondary markets
net IRRs
net operating losses (NOLs), adjusted DCFs
net present values (NPVs)
see also discounted cash flows
critique
net working capital
Netherlands
networks
angel networks
venture capital
new companies, legal forms
New Enterprise Associates
New Zealand
nexus analysis, definition
Nigeria
Niras Technologies, Bloomsbury Capital
noisy valuations of residual values, performance issues
NOLs see net operating losses
non–investment grade bonds see junk bonds
“non-qualifying” limited partnerships
Norway
not-for-profit organizations
notes to the accounts
see also financial statements
Zebra Fund LP financial statements
NPVs see net present values
Nunnelly, Mark
NVCA see National Venture Capital Association
NYSE
O
Oak Investment Partners
offshore limited partnerships, accounting standards
Onex Corp.
opco/propco structure, post-acquisitions
operating margins
operational due diligence
operational improvements
EBITDA growth projections
future prospects
post-deal operational improvements
operational risk
see also business risk
due diligence
pre–due diligence
opinions, auditors
opportunities’ assessments
LBO deal transaction stages
post-deal operational improvements
pre–due diligence
opportunity costs of capital
optimization/analysis modeling steps
competition-based optimizations
leveraged buyout modeling
return-based optimizations
optimized debt structures
see also leveraged buyout modeling
options, dilution-related valuation adjustments
Optos
business model
cash flow model
competition
Douglas Anderson’s vision
eye diseases
eye structure
financial statements
funding structure
geographic expansion
historical background
human capital
intellectual property
manufacturing considerations
overview
preventative care markets
product development
“razor/razor blade” concepts
revenue model
Scottish business landscape
statistics
target markets
vision
organic top-line growth strategies, post-deal operational improvements
“Other” accounting frameworks
outsourcing
see also gatekeepers
in-housing contrasts
key issues
low-cost countries
overhead costs, operational improvements
overview of the book
own funds of fund managers
see also “skin in the game”
incentive alignments
regulatory requirements
ownership plans, deal analysis
ownership stakes, venture capital valuation methods
ownership structures
deal analysis
LBO deal transactions
ownership transfers
see also integration (100-day) plans
sales of companies/business divisions
P
P/Es see price-to-earnings ratios
Pagine Utili
Pakistan
Palestinian Territories
Pantheon
parent companies, legal forms
Parry, Richard
partial exits
partner’s capital, accounting standards
Partners Group
passive angel investors
passive (“buy-and-hold”) returns
“passport” system, AIFM
patents
Pathway Capital
account managers
funds of funds
Paul Capital
Paul, Patrick
payment-in-kind securities
peer groups, benchmarking
penetration metrics, strategic asset allocations
pension advisers, roles
pension funds
see also institutional investors
definition
ERISA
statistics
venture capital
pension plans, due diligence
performance issues
see also benchmarking; carried interest; EBIT …; multiples …; returns; valuations; value creation
“abnormal performance”
academic findings
active management/ownership stage of LBO deal transactions
cash flows
challenges
concepts
critique
emerging markets
entire PE universe
funds of funds
KPIs
LPE
measurement factors
noisy valuations of residual values
NPVs
operational improvements
previous performance assessments
secondary markets
selection biases
statistics
Permira Advisers Ltd.
Peru
Pfizermann, Arnold
Philippines
PineBridge Investments, funds of funds
Pitts, Julian
placement agents see fundraising agents
PLUS Market
Poland
Poler, Dwight
political risk
Pons, Alberto
pooled IRRs
pooled vehicles, funds of funds
Porter’s five-forces model
portfolio companies
definition
LPE
portfolio construction
see also diversification
LP investment processes
Portugal
Post Office, U.K.
post-deal banks, roles
post-deal bond investors, roles
post-deal management, roles
post-deal operational improvements
see also operational improvements
assets of the company
bolt-on growth by acquisition strategies
business expansions
business operation models
churn analysis
Debenhams
EBITDA growth projections
governance models
GP skills
gross margin improvements
human capital
investment thesis
IT systems
low-cost countries
management relationships
manufacturing footprint optimization
opportunities’ assessments
organic top-line growth strategies
pricing decisions
prioritized changes
R&D costs
sale and purchase agreements
sales teams
SG&A costs
supply chain management
top-line growth strategies
working capital management
post-deal shareholders, roles
post-realization reviews, valuations
post-transaction structure model-building steps, leveraged buyout modeling
PPPs
pre-deal creditors, roles
pre-deal managers, roles
pre-deal shareholders
see also sellers
roles
pre–due diligence
see also due diligence
management capabilities
opportunities’ assessments
profits
real results
reviews of 3-year to 5-year business/strategic plans
risk assessments
pre-emption rights
pre-transaction structure model-building steps, leveraged buyout modeling
pre/post-money valuations, venture capital
preferred returns see hurdle rates
preferred shares
prepayments
Preqin
Press, Sydney
preventative-care markets, Optos
price-to-book values, valuations
price-to-earnings ratios (P/Es)
prices
see also valuations
leveraged buyout modeling
post-deal operational improvements
secondary markets
transaction structure determination: uses of funds modeling steps
venture capital
prices of recent investments
fair value
valuation methodologies
Prime Infrastructure Holding Ltd.
principles-based approach, IFRSs
prioritized changes, post-deal operational improvements
priority profit shares (PPS)
see also management fees
accounting standards
IFRSs
U.K. GAAP
private equity
see also angel investors; buyouts; case studies; developmental capital; distressed investment funds; fund managers; listed …; mezzanine funds; secondary markets; venture capital
1980s
1990s
2000–2007
challenges
classifications
concepts
cyclicality of the industry
definition
economics
emerging markets
failures
future prospects
global credit crisis from 2007
harvesting
historical background
operational improvements
origins
overview
performance issues
purposes
rankings
registration requirements
statistics
structural overview
talented employees
types
Private Equity Analyst
private equity companies, valuations
private equity firms
see also case studies; fund managers; general partners; intermediation; secondary buyouts
definition
reputations
roles
staff levels
statistics
top-quartile firms
private equity funds see limited partnerships
Private Equity International
private investments in public equity (PIPE), emerging markets
privatizations
pro forma financial statements substeps
post-transaction structure model-building steps
pre-transaction structure model-building steps
Probitas, fundraising agents
procurement functions, post-deal operational improvements
Prodi, Romano
production efficiencies
profit and loss accounts
see also case studies; financial statements
pre–due diligence
Toys R Us
Zebra Fund LP financial statements
profits, pre–due diligence
property rights, emerging markets
prospectuses
multiples of returns
sales of companies/business-divisions
share prospectuses
protections
see also due diligence; legal issues; regulations
PSERS
see also institutional investors
public market equivalents (PMEs), benchmarking
public market indexes
public-to-private deals
Pueblo Clothing SpA valuation example
put options
Q
Qatar
“qualifying” limited partnerships, accounting standards
qualitative/quantitative activities, due diligence
questionnaires, due diligence
Quiligotti, Gerard
R
R&D
Radhakrishnan, Vishal
Raj-Joshi, Tulika
rankings
emerging markets
statistics
ratchets
ratios
P/E ratios
pre-transaction structure model-building steps
Ratos AB
“razor/razor blade” concepts, Optos
Razzano, Dante
RBS
re-invested capital, legal due diligence
real estate
real results, pre–due diligence
realized multiple see distributed value to paid-in ratio
Realza Capital
attractiveness of the Spanish market
competitors
critique
December 2006
December 2008
due diligence materials
Elm Capital
Etienne Deshormes
fund closing
funding structures
fundraising agents
investment strategy
launch
overview
partners
roadshows
recapitalizations
see also exit strategies
concepts
critique
definition
recessions
19901992
global credit crisis from 2007
reconciliation of movements on partners’ funds, Zebra Fund LP financial statements
“red flags”
Red Rocks LPE indexes
references
refinanced debt
reform packages, investment banks
regional venture capital funds (RVCFs)
registration requirements
see also regulations
regulations
see also accounting standards; corporate governance; legal issues
AIFM
Basel III
Companies Acts
DoddFrank Wall Street Reform and Consumer Protection Act 2010
ECFs 6723 employment laws
FSA
funds of funds
LBOs
recent changes
reporting requirements
SarbanesOxley Act 2002
SEC
Solvency II
Volckerr Rule
regulatory risk, emerging markets
re-invested capital
related party transactions, Zebra Fund LP financial statements
Reliance Industries
remunerations
see also fees
regulatory requirements
revenues per GP partner
renewable energy technologies
replacement costs
report of the independent auditors, Zebra Fund LP financial statements
report of the manager, Zebra Fund LP financial statements
reporting requirements
see also accounting …; documentation
valuation examples
repositioning plans
repurchases see share repurchases
reputations
funds of funds
GPs
rescue finance
see also distressed investment funds
research
funds of funds
future prospects
residual value to paid-in ratio (RVPI)
responsibility shifts from GPs to LPs, accounting standards
restructured (workout) debt
results
retail investors, definition
retail IPO offering, definition
retail sector, U.K.
retinal-imaging technology
eye structure
Optos
retirement of existing debts, transaction structure determination: uses of funds modeling steps
return-based optimizations
returns
see also benchmarking; internal rates …; multiples …; performance issues; value creation
academic findings
angel investors
challenges
concepts
critique
ECFs
emerging markets
exit determination and returns computation modeling steps
expectations
IPOs
LBO deal transactions
priority profit shares
risk
statistics
structural returns’ drivers
venture capital
vintage years
revenues
multiples
per GP partner
reverse LBOs
reverse ratchets
reviews of 3-year to 5-year business/strategic plans, pre–due diligence
revolver facilities
risk
see also currency …; information …; legal …; liquidity …; management …; market …; operational …; political …; regulatory …; systemic …
benchmarking adjustments
betas
emerging markets
LPE
returns
types
risk assessments
due diligence
excessive caution pitfalls
pre–due diligence
risk-averse investors
risk management
funds of funds
future prospects
regulatory requirements
RJR Nabisco
roadshows
Roberts, Matthew
Rock, Arthur
Rockefeller family
Romania
Ross, Steve
round financing, venture capital
RTL Klub, Hungary
rules-driven U.S. GAAP
Russia
Rutterford, Mike
RVPI see residual value to paid-in ratio
S
S&P 500 index
Sachidanand, Vijay
Safeway
Sakovska, Tamara
sale and purchase agreements
sales of companies/business divisions
see also deal analysis; due diligence
processes
stakeholders
sales and leasebacks
sales teams, post-deal operational improvements
Salita, Giora
Sallmard, Stephane
Santinon, Francesco
SAP
SarbanesOxley Act 2002, U.S.
Saudi Arabia
savings-and-loan institutions
SBICs see small business investment companies
scaling benefits, funds of funds
scenario analysis
Scientific Data Systems
Scottish Co-Investment Fund
screening/selection processes
angel investors
concepts
emerging markets
LBO deal transaction stages
Sealey, Barry
Seat SpA
see also Bain Capital
business description
chronology of transaction
competition
the deal
due diligence
financial statements
Internet challenges
overview
statistics
second-lien debt
secondary buyouts
see also exit strategies
concepts
critique
definition
dual-track exit strategies
FiberNet Communications
statistics
Styles & Wood (S&W)
secondary markets
bid spreads
bidders
buyers
concepts
confidentiality issues
critique
current portfolio valuations
definition
development factors
discounts/premiums to NAVs
due diligence
funds of funds
GPs
historical background
indexes
intermediaries
key parties
managed auctions
net debt
net IRRs
performance issues
prices
sellers
statistics
transaction volumes
unfunded capital valuations
valuations
secondary transactions
definition
management and execution
origination factors
processes
structuring phase
types
sectors
angel investors
venture capital
secured debt
securities
see also convertible …; preferred …; shares; warrants
Securities & Exchange Commission (SEC)
see also DoddFrank Wall Street Reform and Consumer Protection Act …
securitizations
see also collateralized …
seed capital
see also angel investors; venture capital
selection biases, performance issues
sell-side investment banks, roles
sellers
see also buyers; limited partners; pre-deal shareholders
due diligence perspectives
in secondary markets
semi-captive private equity funds
senior debt
sensitivity analysis
leveraged buyout modeling
valuations
separate accounts, funds of funds
Severiens, Hans
SG&A costs
SG Private Equity Index (Privex)
share and purchase agreements, venture capital
share repurchases
see also exit strategies
critique
definition
share sales, definition
shares
see also equity finance
P/E ratios
preferred shares
prospectuses
venture capital
vesting rights
Sharp, Michael
shopfitting industry
SIATA
side letters
see also legal issues
Silicon Valley
Simonazzi, Luca
Simphal, Thibaud
Singapore
skills
GPs
management skills
“skin in the game”
see also own funds of fund managers
definition
Slovakia
Slovenia
small business investment companies (SBICs)
historical background
regulatory exemptions
small-firm sector
see also angel investors
SMEs
social capital (guanxi), China
solar PV technology
solar thermal technology
Solvency II
sources of funds
see also debt …; equity …; funding structures
South Africa
black economic empowerment (BEE)
currency risk
Edcon
HIV/AIDS
political risk
statistics
South African Breweries, Edcon
South Korea
sovereign wealth funds (SWFs)
see also institutional investors
definition
statistics
SPACs see special purpose acquisition companies
Spain
Realza Capital
solar PV technology
statistics
special purpose acquisition companies (SPACs)
special purpose vehicles (SPVs)
specialization factors, GPs
specific provisions, Zebra Fund LP financial statements
split capital trusts
sponsors
see also captive private equity funds
SPVs see special purpose vehicles
STACs see structured trust acquisition companies
stakeholders
LBOs
motivations
sales of companies/business divisions
types
Standard & Poor’s Listed Private Equity Index
see also S&P …
Standard & Poor’s ratings agency
stapled secondary transactions, definition
“star” fund managers
Starbucks
startups
see also angel investors; venture capital
Capital for Enterprise
definition
statement of total recognized gains and losses, Zebra Fund LP financial statements
Step Carpet Group
STET
stock markets
see also equity capital; shares
crash of October 1987
emerging markets
Strachan, Andrew
Strang, Jim
strategic asset allocations, LP investment processes
strategic buyers
see also exit strategies; trade sales
definition
emerging markets
statistics
strategy assessments, due diligence
stress tests
structural overview, private equity
structural returns’ drivers, strategic asset allocations
structured finance
see also collateralized loan obligations
historical background
structured secondaries, definition
structured trust acquisition companies (STACs)
structuring processes, emerging markets
Styles & Wood (S&W)
3i Group PLC
Aberdeen Asset Management
competition
contractors/subcontractors
customers
financial statements
Gerard Quiligotti
growth strategies
historical background
human capital
investing decisions
management incentives
MBO
Neil Davies
overview
“Premier League” customers
secondary buyouts
service delivery model
statistics
turnaround years
sub-Saharan Africa
see also individual countries
future prospects
list of countries
overview
statistics
subholding companies, legal forms
subordinated debt
see also high-yield bond …; junior …; mezzanine …; second-lien …
“substance over form” concepts
Sudan
Sun Microsystems
Sunflower Private Equity
SunPower
SunRay Renewable Energy
business model
Denham Capital Management
dislocations of capital
European renewable market in 20062008
exit decisions
human capital
lesson-learning experiences
management team
Montalto Di Castro project
overview
private equity umbrella
project finance
statistics
technology decisions
value chain of a solar PV developer
supply chains
supportable assumptions/estimates, valuation pitfalls
Suzuki
Sweden
SWFs see sovereign wealth funds
Swicorp
attractive alliances
deal selection processes
“deep dive” strategy
funding structures
historical background
Intaj fund
investment strategies
JATE
mass customization
the move into PE
overview
risks
Step Carpet Group
SWFs
Switzerland
syndicates
see also angel investors; underwriting firms; venture capital
synergies
synthetic secondaries, definition
Syria
systemic risk
see also market risk
Szepesi, Peter
T
Taglioni, Fabio
“tail-ends” (failing funds)
Taiwan
takedowns see drawdowns
Takeover Panel’s scheme of arrangement, Debenhams
talented employees, private equity
Talmor, Eli
Talmor, Yael
Tata Group
tax
accounting standards
advisors
angel investors
complexities
due diligence
exit strategies
pressures
shields
VAT
team assessments, GPs
technology companies
Telecom Italia
Telecommunications Act 1996, US
Teledyne
television broadcasting market, Hungary
term sheets
see also legal issues; limited partnership agreements
terminal values, DCFs
terminations
see also wind-up clauses
limited partnerships
Texas Pacific Group (TPG)
Thailand
Thomas Lee Partners
Thomson Datastream
Thomson directory products
Thomson Venture Economics
tidal/wave power
time value of money
timescales
due diligence
exit strategies
funds of funds
IPOs
limited partnerships
management fees
term sheets
venture capital
Tobin’s Q
top-quartile firms
total partners’ funds, Zebra Fund LP financial statements
total value to paid-in ratio (TVPI)
Toyota
Toys R Us
balance sheets
cash flow statements
financial statements
financing structure and fees assumptions
leveraged buyout modeling
optimization/analysis modeling steps
profit and loss accounts
transaction summary sheets (LBO model dashboard)
value creation
TPG see Texas Pacific Group
track records
due diligence
funds of funds
GPS
trade sales
see also exit strategies; strategic buyers
concepts
critique
definition
dual-track exit strategies
indemnities
statistics
warranties
tradeoff theory
“Traitorous Eight”
transaction summary sheets (LBO model dashboard), exit determination and returns computation modeling steps
transaction structure determination: sources of funds steps, leveraged buyout modeling
transaction structure determination: uses of funds steps, leveraged buyout modeling
transparency requirements
Triumph
“true and fair view” requirements
Truuvert, Andres
Tunisia
Turkey
turnarounds
see also distressed investment funds
Turner, Richard
TV2, Hungary
TVPI see total value to paid-in ratio
TXU Energy
U
UAE
UBS
U.K.
accounting concepts
angel investors
Bloomsbury Capital
buyouts
capital contributions
Capital for Enterprise
carried interest
Companies Acts
consolidation requirements
David Walker Guidelines
Debenhams
economic landscape
EIS
Enterprise Capital Funds
GAAP 11146 interpretation of fund accounts
LPE
Optos
performance statistics
Post Office
priority profit shares
registration requirements
retail sector
SMEs
Styles & Wood
tax pressures
VCTs
venture capital
underwriting firms
unfunded capital, valuations
unrealized multiple see residual value to paid-in ratio
unsecured debt
see also high-yield bond …; mezzanine …
LBOs
UPC Hungary
upper-quartile returns, definition
U.S.
angel investors
consolidation requirements
DoddFrank Wall Street Reform and Consumer Protection Act 2010
exit strategies
funds of funds
GAAP
LPE
performance statistics
reform packages
regulatory changes
rules-driven U.S. GAAP
SarbanesOxley Act 2002
SEC
statistics
tax pressures
venture capital
uses of funds, transaction structure determination: uses of funds modeling steps
V
VAF, Mekong Capital
valuations
see also enterprise values; fair value; prices
adjusted DCFs
adjustments
angel investors 3478 assumptions/estimates pitfalls
book value multiples
buyouts
Chariot Skates PLC example
contingency-related adjustments
control values
critique
cross-country pitfalls
DCFs
deal analysis
debt-related adjustments
dilution-related adjustments
EBITDA
emerging markets
examples
excessive caution pitfalls
exit strategies
final adjustments
firm-specific factors
firm-value-to-EBITDA multiples
firm-value-to-total-assets valuations
guidelines
illiquidity discounts
implementation of the methods
industry valuation benchmarks
IPEV guidelines
methodologies
metrics
multiples-based methodologies
NAVs
P/Es
pitfalls
Porter’s five-forces model
post-realization reviews
pre/post-money VC valuations
price-to-book values
prices of recent investments
private equity companies
Pueblo Clothing SpA example
regulatory requirements
reporting examples
revenue multiples
secondary markets
sensitivity analysis
steps
strategic asset allocations
“substance over form” concepts
unfunded capital
venture capital
volatility pitfalls
value chain of a solar PV developer, SunRay Renewable Energy
value creation
see also returns
angel investors
de-leveraging effects
due diligence
firm value increases
funds of funds
governance models
LBO deal transactions
managerial legends
operational improvements
post-deal operational improvements
sources of value
Toys R Us
venture capital
Van Laere, Lode
Vandepitte, Matthias
Vanderbilt family
VAT
VC see venture capital
venture capital trusts (VCTs)
see also investment trusts
accounting standards
definition
venture capital valuation method
venture capital (VC)
see also case studies; startups
angel investors
antidilution clauses
ARDC
boards of directors
cap tables
Capital for Enterprise
clusters (geographies)
common stock
concepts
contract/documentation needs
corporate governance
critique 35960 CVC
declining trends
definition
diversification
drivers
due diligence
ECFs
EIS
emerging markets
entrepreneurs
ERISA
exit strategies
failure rates
Fairchild Semiconductor
funding structures
future prospects
historical background
human capital
institutional investors
intangible assets
International and Commercial Financial Corporation (3i)
international comparisons
investment processes
J-curves
liquidation clauses
management relationships
networks
pension funds
pre/post-money valuations
preferred shares
rankings by size of total funds
regulatory exemptions
returns
revenues per GP partner
roles in the VC contract
secondary market pricing
sectors
stages in financing
statistics
successful exits
syndicates
technology companies
timescales
“Traitorous Eight”
U.K.
valuations
value creation
VCTs
venture lending
venture lending
vesting rights, venture capital
Vietnam
Vinatea, Adolfo
vintage years
virgin angel investors
virtual data rooms
vision
volatility, valuation pitfalls
Volckerr Rule
voting rights
W
Walker, David
Warburg Pincus
see also FiberNet Communications
historical background
overview
statistics
warrants
see also mezzanine funds
Washington State Investment Board
“waterfall” provisions
weighted average costs of capital (WACC)
see also discounted cash flows
weighted-average ratchets, venture capital
Welsh, Jack
Wembley Stadium Group
Wendel SA
Westport Private Equity Ltd.
White Pages
wholesale outsourcing strategies
see also funds of funds
wind energy
wind-up clauses
see also terminations
Woolf, Virginia
Woolworths
working capital
DCF calculations
management
World Bank
Worldcom
Y
Yamaha
Yellow Pages
Yemen
yield curves, Hungary
Z
Zavala, Alfredo
Zebra Fund LP financial statements
balance sheet
cash flow statement
notes to the accounts
profit and loss account
report of the independent auditors
report of the manager
statement of total recognized gains and losses
Zimbabwe
Zimmerman, Rebecca
Zurich Capital