{"product_id":"the-complete-direct-investing-handbook-isbn-9781119094715","title":"The Complete Direct Investing Handbook","description":"\u003cb\u003eThe practical guide to direct investing strategies and best practices\u003c\/b\u003e \u003cp\u003e\u003ci\u003eThe Complete Direct Investing Handbook\u003c\/i\u003e provides comprehensive guidelines, principles and practical perspectives on this increasingly attractive private equity investment strategy. Interviews with leading family office investors, qualified private equity buyers, and top direct investing advisors provide essential insights, and attention to the nuanced processes of direct investing. The books is a hands-on resource for family offices and those investors interested in generating returns through private company ownership to be more effective in creating returns in a complex market. Direct investing best practices are explored in-depth, with guidance on strategy and the evaluation and assessment of various investment opportunities. The process begins with a codified and specific investment goal, and a robust strategy tailored to the investor's individual needs. Useful insight on 'narrowing the field' helps investors select the appropriate opportunities to meet their investment goals, and practical tools help streamline the process of capital deployment and in turn providing more opportunities to achieve desired returns. \u003c\/p\u003e\u003cp\u003eDespite the growing interest in direct investing, there is little public information available to investors and there is a lack of transparency into practical standards. This book bridges the gap between strategy and execution, with comprehensive guidance and real-world insights. \u003c\/p\u003e\u003cul\u003e \u003cli\u003eDefine and craft a focused investment thesis and appropriate timeline specific to your needs\u003c\/li\u003e \u003cli\u003eIdentify the right type, size, duration, and risk profile aligned to your investment objectives\u003c\/li\u003e \u003cli\u003eGain perspective on real-world direct investing and a deeper understanding of the risks and rewards\u003c\/li\u003e \u003cli\u003eBetter understand best practices and institutional investment rigor to develop bespoke processes and policies that create better outcomes for independent investors\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eHistorically, extraordinary wealth has been created through equity in privately-held enterprise. Today, family offices and direct investors are looking more and more toward large capital deployment in early-stage and growth-oriented private equity investments, but are constrained by a lack of informed, established practices. \u003ci\u003eThe Complete Direct Investing Handbook\u003c\/i\u003e provides the much-needed guidance and tools that can improve direct investment outcomes. \u003c\/p\u003e\u003cp\u003eForeword xvii\u003c\/p\u003e \u003cp\u003ePreface xxi\u003c\/p\u003e \u003cp\u003eAcknowledgments xxi\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I: Direct Investing and the Family Office Test\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction to Direct Investing 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2008: A Wakeup Call for Investors 5\u003c\/p\u003e \u003cp\u003eRole of the Family Office and Private Investors 6\u003c\/p\u003e \u003cp\u003eThe Opportunity 9\u003c\/p\u003e \u003cp\u003eBest Practices 10\u003c\/p\u003e \u003cp\u003eKey Considerations 12\u003c\/p\u003e \u003cp\u003eConclusion 15\u003c\/p\u003e \u003cp\u003eNotes 16\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 The Emerging Presence of Private Capital in Direct Investing 18\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eContributing Authors: Nathan Hamilton and Sara Hamilton\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe Family Office Marketplace 19\u003c\/p\u003e \u003cp\u003eThe Unique Benefits of Private Capital 21\u003c\/p\u003e \u003cp\u003eIncreased Interest in Private Equity 24\u003c\/p\u003e \u003cp\u003eConclusion 30\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Co-Investment Strategies in Direct Investing 32\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDefining Co-Investing and Providing Context 32\u003c\/p\u003e \u003cp\u003eInsights on the Popularity of Co-Investing 33\u003c\/p\u003e \u003cp\u003eInterest in Co-Investment Strategies 33\u003c\/p\u003e \u003cp\u003eRoles of the Co-Investor 35\u003c\/p\u003e \u003cp\u003eGoing Solo: Why Co-Investing May Not Be Your Choice 40\u003c\/p\u003e \u003cp\u003eThe Perils and Pearls of Co-Investing 41\u003c\/p\u003e \u003cp\u003eVetting Co-Investors 44\u003c\/p\u003e \u003cp\u003eClub Deals 46\u003c\/p\u003e \u003cp\u003eMini Case Study 51\u003c\/p\u003e \u003cp\u003eConclusion 51\u003c\/p\u003e \u003cp\u003eNotes 52\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Private Equity Strategies: Characteristics and Implications 54\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eContributing Author: David McCombie\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eWhat Is Private Equity? 55\u003c\/p\u003e \u003cp\u003eReal Estate 58\u003c\/p\u003e \u003cp\u003eVenture Capital 62\u003c\/p\u003e \u003cp\u003eGrowth Capital 72\u003c\/p\u003e \u003cp\u003eBuyouts 75\u003c\/p\u003e \u003cp\u003eMezzanine Financing 78\u003c\/p\u003e \u003cp\u003eDistressed Assets 81\u003c\/p\u003e \u003cp\u003eConclusion: Putting It All Together 85\u003c\/p\u003e \u003cp\u003eNotes 86\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II: Direct Investing in Action\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Family Office Considerations to the Direct Investment Process 91\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSource of Wealth: Lens of the Family Office 92\u003c\/p\u003e \u003cp\u003eSWOT Analysis for Direct Investing 93\u003c\/p\u003e \u003cp\u003eThree Phases to the Direct Investing Process 94\u003c\/p\u003e \u003cp\u003eA Three-Phase Direct Investing Process 97\u003c\/p\u003e \u003cp\u003eCase Study 111\u003c\/p\u003e \u003cp\u003eConclusion 113\u003c\/p\u003e \u003cp\u003eNotes 114\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Designing a Direct Investment Thesis 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDefining the Direct Investment Thesis 115\u003c\/p\u003e \u003cp\u003eAsset Mix and the Direct Investment Thesis 117\u003c\/p\u003e \u003cp\u003eFamily Pathways and the Direct Investment Thesis 119\u003c\/p\u003e \u003cp\u003eThe Barbell Approach and the Direct Investment Thesis 122\u003c\/p\u003e \u003cp\u003eEntrepreneurial Orientation and the Direct Investment Thesis 124\u003c\/p\u003e \u003cp\u003eFamily Investment Style and the Direct Investment Thesis 128\u003c\/p\u003e \u003cp\u003eCase Study 132\u003c\/p\u003e \u003cp\u003eConclusion 137\u003c\/p\u003e \u003cp\u003eNotes 138\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Sourcing, Deal Flow, Screening, and Deploying Direct Investments 141\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eContributing Author: Euclid Walker\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIndustry Professionals and Thought Leaders 142\u003c\/p\u003e \u003cp\u003eInvestment Bankers\/Business Brokers 143\u003c\/p\u003e \u003cp\u003eProfessional Service Providers 144\u003c\/p\u003e \u003cp\u003eCommercial Banks 144\u003c\/p\u003e \u003cp\u003ePrivate Equity Funds\/Family Offices 145\u003c\/p\u003e \u003cp\u003eScreening Process 146\u003c\/p\u003e \u003cp\u003eDue Diligence 151\u003c\/p\u003e \u003cp\u003eInvestment Memorandum 154\u003c\/p\u003e \u003cp\u003eInvestment Decision Process 155\u003c\/p\u003e \u003cp\u003eConclusion 156\u003c\/p\u003e \u003cp\u003eNotes 156\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Direct Investments: Deal Structures, Terms, and Portfolio Construction 157\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eContributing Author: Jolyne Caruso\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eHow to Get Started 158\u003c\/p\u003e \u003cp\u003ePortfolio Construction 159\u003c\/p\u003e \u003cp\u003eThe Capital Stack 160\u003c\/p\u003e \u003cp\u003eEquity Transactions 162\u003c\/p\u003e \u003cp\u003eTypes of Debt Instruments 165\u003c\/p\u003e \u003cp\u003eMezzanine Debt 166\u003c\/p\u003e \u003cp\u003eCase Study: Early-Stage Solar Energy Finance Company 168\u003c\/p\u003e \u003cp\u003eA Primer on Important Term Sheet Items 170\u003c\/p\u003e \u003cp\u003eConclusion 175\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Investment Monitoring, Exit Strategies, and Harvesting Returns 177\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eContributing Author: Adam Goodfriend\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 177\u003c\/p\u003e \u003cp\u003eAlignment of Objectives 178\u003c\/p\u003e \u003cp\u003eMonitoring Direct Investments as a Minority Stake Owner 178\u003c\/p\u003e \u003cp\u003eWhy Timing of an Investment Exit and Not Just the Investment Return Is Critical 179\u003c\/p\u003e \u003cp\u003eImportance of Company Lifecycles with Respect to Timing and Harvesting Returns 181\u003c\/p\u003e \u003cp\u003eExit Valuations and Multiples 184\u003c\/p\u003e \u003cp\u003eMaximizing Liquidity of Illiquid Investments through Pre-Negotiated Rights 186\u003c\/p\u003e \u003cp\u003eExit Value Drivers 188\u003c\/p\u003e \u003cp\u003eCommon Exit Strategies 189\u003c\/p\u003e \u003cp\u003eMergers and Acquisitions 192\u003c\/p\u003e \u003cp\u003eWorking with Investment Bankers and Key Advisors to the Exit Strategy 192\u003c\/p\u003e \u003cp\u003eConclusion 194\u003c\/p\u003e \u003cp\u003eNotes 195\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart III: Direct Investing Perspectives\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 The CIO Perspective 199\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eContributing Author: Robert G. Blabey\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eSourcing Top CIOs to Oversee Direct Investing in the SFO 200\u003c\/p\u003e \u003cp\u003eWhat’s the Edge? 202\u003c\/p\u003e \u003cp\u003eWhat Defines Success for the CIO? 203\u003c\/p\u003e \u003cp\u003eThe CIO Fit 207\u003c\/p\u003e \u003cp\u003eRisk Management at the Investment Level and Portfolio Level 209\u003c\/p\u003e \u003cp\u003eCIO Compensation 211\u003c\/p\u003e \u003cp\u003eConclusion 216\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 The Millennials and Direct Investing: A Look at Impact Investing 218\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eContributing Author: Temple Fennell\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eWho Are the Millennials and What Do They Care About? 219\u003c\/p\u003e \u003cp\u003eMillennials’ Respect for the Senior Generation 220\u003c\/p\u003e \u003cp\u003eGrowing Interest in Impact Investing 222\u003c\/p\u003e \u003cp\u003eMaking the Case for Impact Investing 222\u003c\/p\u003e \u003cp\u003eHow to Source Impact Investments 227\u003c\/p\u003e \u003cp\u003eExperiential Returns: Intangible Benefits of Impact Investing 231\u003c\/p\u003e \u003cp\u003eCommon Challenges and Barriers to Impact Investing 232\u003c\/p\u003e \u003cp\u003eSystems Thinking: Creating and Sustaining Family Knowledge 235\u003c\/p\u003e \u003cp\u003eConclusion 238\u003c\/p\u003e \u003cp\u003eNotes 239\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 SCIE: Sustainable Cycle of Investing Engagement 242\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eContributing Author: Temple Fennell\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eThe Purpose of SCIE 244\u003c\/p\u003e \u003cp\u003eThe SCIE Framework 246\u003c\/p\u003e \u003cp\u003eFamily Purpose, Values, and Mission 247\u003c\/p\u003e \u003cp\u003eFraming Strategy 249\u003c\/p\u003e \u003cp\u003eDeveloping Strategy 253\u003c\/p\u003e \u003cp\u003eImplementing Strategy 259\u003c\/p\u003e \u003cp\u003eCapture and Communicate Learning 264\u003c\/p\u003e \u003cp\u003eConclusion 269\u003c\/p\u003e \u003cp\u003eNotes 269\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 International Direct Investing 271\u003cbr\u003e \u003c\/b\u003e\u003ci\u003eContributing Author: Anna Nekoranec\u003c\/i\u003e\u003c\/p\u003e \u003cp\u003eWhy Consider International Direct Investing? 272\u003c\/p\u003e \u003cp\u003eKey Differences between Investing Abroad versus Investing in the United States 274\u003c\/p\u003e \u003cp\u003eHow to Determine Where to Invest 276\u003c\/p\u003e \u003cp\u003eHow Population Change Can Impact Target Market Opportunities 278\u003c\/p\u003e \u003cp\u003eKeys to Success in International Direct Investing 282\u003c\/p\u003e \u003cp\u003eThe Role of a Partner in International Investing 284\u003c\/p\u003e \u003cp\u003eCommon Mistakes Made by Investors Venturing Abroad 286\u003c\/p\u003e \u003cp\u003eRisk Mitigation 288\u003c\/p\u003e \u003cp\u003eForeign Families in the United States 290\u003c\/p\u003e \u003cp\u003eConclusion 291\u003c\/p\u003e \u003cp\u003eNotes 292\u003c\/p\u003e \u003cp\u003eAppendix a Private Equity Strategies Summary 293\u003c\/p\u003e \u003cp\u003eAppendix b Sample Due Diligence Checklist 299\u003c\/p\u003e \u003cp\u003eAppendix c\u003c\/p\u003e \u003cp\u003eGlossary 306\u003c\/p\u003e \u003cp\u003eAbout the Author 316\u003c\/p\u003e \u003cp\u003eAbout the Chapter Authors 318\u003c\/p\u003e \u003cp\u003e\u003cb\u003eKIRBY ROSPLOCK, PhD,\u003c\/b\u003e is founder and CEO of Tamarind Partners, a consulting firm that advises family offices, ultra-high-net-worth investors, and the wealth management industry. She is a researcher, scholar, educator, and well-respected speaker around the globe on family wealth, family office, and family business. She is also the author of \u003ci\u003eThe Complete Family Office Handbook\u003c\/i\u003e. For more on Dr. Rosplock and Tamarind Partners, visit www.TamarindPartners.com. \u003c\/p\u003e  \u003cp\u003eToday there are countless choices for investors interested in private equity; however, a dearth of practical guidance exists when it comes to understanding the perks and perils of deploying capital into direct investments, or investing in privately-held operating companies. Although the private equity (PE) landscape is broad and varied, direct investing, a nuanced subset of PE, has caught the attention of several accredited investors and family offices. Historically, most investors learned the hazards of direct investing from their own mistakes, but now readers have access to insights, case studies, and leading research from the best and brightest direct investors and advisors. \u003ci\u003eThe Complete Direct Investing Handbook\u003c\/i\u003e provides logical steps, sanguine advice, and tools to help both the novice and sophisticated investor regarding the decision making that goes into this bespoke area of PE. \u003c\/p\u003e \u003cp\u003e Authored by Kirby Rosplock, PhD, the thought-leader who wrote \u003ci\u003eThe Complete Family Office Handbook\u003c\/i\u003e, this new, specialized guide leads you through pre- and post-considerations of direct investing. Several chapters are contributed by leading practitioners in the field who share their insights and experiences of using this specialized investment strategy. The book provides a solid foundation for investors at every stage considering their options for investing in direct investments. Relevant case examples and research bring the material to life and shed light on the current realities of direct investing globally. With this resource, you can:  \u003c\/p\u003e\u003cul\u003e\n\u003cli\u003eDiscover a practitioner’s lens to sourcing, screening, and ultimately deploying capital into direct investments individually or as a co-investor\u003c\/li\u003e \u003cli\u003eLearn how to create a direct investment thesis and to strategically execute, monitor, and exit a direct investment\u003c\/li\u003e \u003cli\u003eUnderstand the structuring, terms, and preferences for minority or lead investors investing in directs\u003c\/li\u003e \u003cli\u003eGlean new insights on Millennials’ perspectives on direct investing and impact investing\u003c\/li\u003e\n\u003c\/ul\u003e \u003cp\u003e\u003ci\u003eThe Complete Direct Investing Handbook\u003c\/i\u003e is the first comprehensive text to outline the opportunities and pitfalls of direct investing and to reveal how this competitive strategy applies to accredited investors and the family office.\u003c\/p\u003e","brand":"Bloomberg Press","offers":[{"title":"Default Title","offer_id":47990192308453,"sku":"NP9781119094715","price":79.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119094715.jpg?v=1761786859","url":"https:\/\/k12savings.com\/es\/products\/the-complete-direct-investing-handbook-isbn-9781119094715","provider":"K12savings","version":"1.0","type":"link"}