{"product_id":"private-capital-investing-isbn-9781119526162","title":"Private Capital Investing","description":"\u003cp\u003e\u003cb\u003eA step-by-step, comprehensive approach to private equity and private debt\u003c\/b\u003e \u003c\/p\u003e \u003cp\u003e\u003ci\u003ePrivate Capital Investing: The Handbook of Private Debt and Private Equity\u003c\/i\u003e is a practical manual on investing in the two of the most common alternative asset classes (private equity and private debt) and provides a unique insight on how principal investors analyze investment opportunities. Unlike other textbooks available in the market, \u003ci\u003ePrivate Capital Investing \u003c\/i\u003ecovers the various phases that principal investors follow when analyzing a private investment opportunity. \u003c\/p\u003e \u003cp\u003eThe book combines academic rigor with the practical approach used by leading institutional investors. Chapters are filled with practical examples, Excel workbooks (downloadable from the book website), examples of legal clauses and contracts, and Q\u0026amp;A. Cases are referred at the end of every chapter to test the learning of the reader. Instructors will find referrals to both third-party cases or cases written by the author.\u003c\/p\u003e \u003cp\u003e•          Covers analytical tools \u003cbr\u003e •          Includes the most common methods used to structure a debt facility and a private equity transaction\u003cbr\u003e •          Looks at the main legal aspects of a transaction\u003cbr\u003e •          Walks readers through the different phases of a transaction from origination to closing\u003c\/p\u003e \u003cp\u003eBridging the gap between academic study and practical application\u003ci\u003e, Private Capital Investing \u003c\/i\u003eenables the reader to be able to start working in private equity or private debt without the need for any further training. It is intended for undergraduates and MBA students, practitioners in the investment banking, consulting and private equity business with prior academic background in corporate finance and accounting.\u003c\/p\u003e \u003cp\u003eAbout the Author xi\u003c\/p\u003e \u003cp\u003eAcknowledgements xiii\u003c\/p\u003e \u003cp\u003eAbout the Companion Site xv\u003c\/p\u003e \u003cp\u003eIntroduction 1\u003c\/p\u003e \u003cp\u003eThe Rise of Private Markets (Alternative Assets) in the Investors’ Allocation 2\u003c\/p\u003e \u003cp\u003eThe Rise of Private Markets as a Favoured Alternative Source of Company Financing 4\u003c\/p\u003e \u003cp\u003ePrivate Equity 6\u003c\/p\u003e \u003cp\u003ePrivate Debt 8\u003c\/p\u003e \u003cp\u003eDeal Phases and Book Organisation 10\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Closed End Funds 13\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Close Up on Private Equity and Private Debt Partnerships 13\u003c\/p\u003e \u003cp\u003eCash Flows, J Curve, and Returns 16\u003c\/p\u003e \u003cp\u003eFinancial Returns 19\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 22\u003c\/p\u003e \u003cp\u003eSuggested Cases 22\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Debt Products 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 23\u003c\/p\u003e \u003cp\u003eDefinition and Some Useful Classifications 24\u003c\/p\u003e \u003cp\u003ePure Debt Instruments 29\u003c\/p\u003e \u003cp\u003eHigh-yield Bonds 37\u003c\/p\u003e \u003cp\u003eMezzanine 39\u003c\/p\u003e \u003cp\u003eUnitranche 43\u003c\/p\u003e \u003cp\u003eA Close Up on Syndicated Lending 50\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 52\u003c\/p\u003e \u003cp\u003eSuggested Cases 52\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Equity Products 53\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 53\u003c\/p\u003e \u003cp\u003eOrdinary Shares 54\u003c\/p\u003e \u003cp\u003ePreference Shares 55\u003c\/p\u003e \u003cp\u003eConvertibles 57\u003c\/p\u003e \u003cp\u003eOther Equity Instruments 64\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 70\u003c\/p\u003e \u003cp\u003eSuggested Cases 70\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Business Due Diligence 71\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 71\u003c\/p\u003e \u003cp\u003eMacro Factors 71\u003c\/p\u003e \u003cp\u003eIndustry Risk Analysis 73\u003c\/p\u003e \u003cp\u003eCompany Analysis 83\u003c\/p\u003e \u003cp\u003eSummary Steps for a Strategic Analysis of a Business Plan 90\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 91\u003c\/p\u003e \u003cp\u003eSuggested Cases 91\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Accounting Due Diligence 93\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 93\u003c\/p\u003e \u003cp\u003eQuality of Earnings 93\u003c\/p\u003e \u003cp\u003eRatio Analysis 101\u003c\/p\u003e \u003cp\u003eCash Flow Analysis 106\u003c\/p\u003e \u003cp\u003eCreative Accounting 115\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 123\u003c\/p\u003e \u003cp\u003eSuggested Cases 123\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Business Plan 125\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 125\u003c\/p\u003e \u003cp\u003ePro-forma Financials 125\u003c\/p\u003e \u003cp\u003eProfit and Loss Projections 126\u003c\/p\u003e \u003cp\u003eBalance Sheet Projections 127\u003c\/p\u003e \u003cp\u003ePutting it all Together: Modelling Cash, Short-term Debt, Net Income, and Shareholders’ Equity 128\u003c\/p\u003e \u003cp\u003eSensitivity Analysis 128\u003c\/p\u003e \u003cp\u003eConsistency Checks 129\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 133\u003c\/p\u003e \u003cp\u003eSuggested Cases 133\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Valuation 135\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 135\u003c\/p\u003e \u003cp\u003eFundamentals #1: Price and Value 135\u003c\/p\u003e \u003cp\u003eFundamentals #2: Enterprise Value and Equity Value 136\u003c\/p\u003e \u003cp\u003eFundamentals #3: Market Values vs. Book Values 140\u003c\/p\u003e \u003cp\u003eDiscounted Cash Valuation Method 140\u003c\/p\u003e \u003cp\u003eDiscounted Cash Valuation: WACC Approach 140\u003c\/p\u003e \u003cp\u003eDiscounted Cash Flow Valuation: Adjuster Present Value Method 144\u003c\/p\u003e \u003cp\u003eComparables Valuation Method 147\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 156\u003c\/p\u003e \u003cp\u003eSuggested Cases 156\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Growth Equity 157\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 157\u003c\/p\u003e \u003cp\u003eDifferences between Venture Capital, Growth Equity, and LBO 157\u003c\/p\u003e \u003cp\u003eInstruments 159\u003c\/p\u003e \u003cp\u003eFundamentals #1: Pre-money and Post-money Valuation 160\u003c\/p\u003e \u003cp\u003eFundamentals #2: Capitalisation Table 165\u003c\/p\u003e \u003cp\u003eFundamentals #3: Dilution and Equity Stake Calculation 165\u003c\/p\u003e \u003cp\u003eFundamentals #4: Anti-dilution Provisions 167\u003c\/p\u003e \u003cp\u003eFundamentals #5: Structuring for Exit (Ordinary Shares vs. Other Instruments) 169\u003c\/p\u003e \u003cp\u003eFundamentals #6: Redemption 172\u003c\/p\u003e \u003cp\u003eFundamentals #7: The Growth Capital Method (Adapted from the Venture Capital Method) 173\u003c\/p\u003e \u003cp\u003eFundamentals #8: Calculation of the Price per Share 176\u003c\/p\u003e \u003cp\u003eFundamentals #9: Put and Call Options 176\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 184\u003c\/p\u003e \u003cp\u003eSuggested Cases 184\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Leveraged Buyout 185\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 185\u003c\/p\u003e \u003cp\u003eLBO: Key Concepts 187\u003c\/p\u003e \u003cp\u003eLBO Analysis 199\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 215\u003c\/p\u003e \u003cp\u003eSuggested Cases 215\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Management of the Portfolio Companies and Exit 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 217\u003c\/p\u003e \u003cp\u003eReporting 217\u003c\/p\u003e \u003cp\u003eMonitoring 218\u003c\/p\u003e \u003cp\u003eValue Creation 218\u003c\/p\u003e \u003cp\u003eExit 220\u003c\/p\u003e \u003cp\u003eIPO 222\u003c\/p\u003e \u003cp\u003eTrade Sale 223\u003c\/p\u003e \u003cp\u003eSecondary\/Tertiary Sale to Financial Buyers 223\u003c\/p\u003e \u003cp\u003eOther Exit Routes (Share Buyback, Options, Recap) 224\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 225\u003c\/p\u003e \u003cp\u003eSuggested Cases 225\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Private Debt 227\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 227\u003c\/p\u003e \u003cp\u003eStructuring a Credit Facility 227\u003c\/p\u003e \u003cp\u003eSanity Checks 240\u003c\/p\u003e \u003cp\u003eStructuring a Loan Facility: A Modelling Example 246\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 246\u003c\/p\u003e \u003cp\u003eSuggested Cases 246\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Legal Documentation 247\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 247\u003c\/p\u003e \u003cp\u003ePrivate Debt Legal Documentation 249\u003c\/p\u003e \u003cp\u003ePrivate Equity Legal Documentation 256\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 264\u003c\/p\u003e \u003cp\u003eAppendix 12.1: Example of an Equity Term Sheet 265\u003c\/p\u003e \u003cp\u003eAppendix 12.2: Example of a Debt Term Sheet 277\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Distress Symptoms and Remedies 287\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEarly Warning Signals 287\u003c\/p\u003e \u003cp\u003eCauses 288\u003c\/p\u003e \u003cp\u003eRestructuring Options 290\u003c\/p\u003e \u003cp\u003eFinancing Solutions 291\u003c\/p\u003e \u003cp\u003eLegal Alternatives 294\u003c\/p\u003e \u003cp\u003eReferences and Further Reading 297\u003c\/p\u003e \u003cp\u003eSuggested Cases 298\u003c\/p\u003e \u003cp\u003eIndex 299\u003c\/p\u003e \u003cp\u003e\u003cb\u003eROBERTO IPPOLITO\u003c\/b\u003e is Managing Partner of a leading Italian Hybrid Capital (private equity and private debt) fund and Professor of Principal Investing at Università degli Studi Guglielmo Marconi. He has 20 years’ private capital experience in sourcing, structuring and investing in all parts of the capital structure (senior debt, junior debt and private equity) of Italian SMEs across several industries and three years’ management consulting experience (with a focus on business due diligence and performance improvement).\u003c\/p\u003e \u003cp\u003eFormer Head of Leverage Finance at General Electric Capital Italy, Roberto has held managerial roles at European Bank for Reconstruction and Development, DAM Capital (Anschutz Group), Bain \u0026amp; Co. and junior positions at Goldman Sachs (Merchant and Investment Banking) and Istituto Mobiliare Italiano (Merchant Banking). He is a Fulbright scholar and a British Chevening scholar.  \u003c\/p\u003e\u003cp\u003eRoberto received a MBA from the University of Chicago, a MSc in Economics from the University of Warwick and a Summa Cum Laude BSc in Business from LUISS University. He is a CFA and CPA in Italy and FSA registered in the UK.  \u003c\/p\u003e\u003cp\u003eA step-by-step, comprehensive approach to private equity and private debt\u003c\/p\u003e \u003cp\u003e\u003ci\u003ePrivate Capital Investing: The Handbook of Private Debt and Private Equity\u003c\/i\u003e is a practical manual on investing in the most common alternative asset classes and provides a unique insight on how principal investors analyze investment opportunities. Unlike other textbooks available in the market, \u003ci\u003ePrivate Capital Investing\u003c\/i\u003e covers the various phases that principal investors follow when analyzing a private investment opportunity. \u003c\/p\u003e\u003cp\u003eThis book combines academic rigor with the practical approach used by leading investors. Every chapter is filled with practical examples, Excel workbooks (downloadable on the book website), examples of legal clauses and contracts, and Q\u0026amp;A. Cases are referred at the end of every chapter to test the learning of the reader. \u003c\/p\u003e\u003cul\u003e\n\u003cli\u003eCovers analytical tools \u003c\/li\u003e \u003cli\u003eIncludes the most common methods used to structure a debt facility and a private equity transaction\u003c\/li\u003e \u003cli\u003eLooks at the main legal aspects of a transaction\u003c\/li\u003e \u003cli\u003eWalks readers through the different phases of a transaction from origination to closing\u003c\/li\u003e\n\u003c\/ul\u003e \u003cp\u003eBridging the gap between academic study and practical application, \u003ci\u003ePrivate Capital Investing\u003c\/i\u003e enables the reader to be able to start working in private equity or private debt without the need for any further training.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989855977701,"sku":"NP9781119526162","price":48.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119526162.jpg?v=1761785691","url":"https:\/\/k12savings.com\/products\/private-capital-investing-isbn-9781119526162","provider":"K12savings","version":"1.0","type":"link"}