{"product_id":"beyond-the-j-curve-9780470011980","title":"Beyond the J Curve","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003eIn recent times, venture capital and private equity funds have become household names, but so far little has been written for the investors in such funds, the so--called limited partners. There is far more to the management of a portfolio of venture capital and private equity funds than usually perceived.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTrade Review\u003c\/b\u003e\u003cbr\u003e\"...highlights why limited partners are bad performers and provides guidance for investments...\" (\u003ci\u003eFinancial Times\u003c\/i\u003e, 1st August 05)  \u003cp\u003e\"...an interesting book on a fascinating subject\" (\u003ci\u003eProfessional Investor\u003c\/i\u003e, Dec\/Jan 05\/06)\u003c\/p\u003e\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003cp\u003eList of Boxes xv\u003c\/p\u003e \u003cp\u003eAcknowledgements xvii\u003c\/p\u003e \u003cp\u003eDisclaimer xviii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I Private Equity Environment 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Introduction 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e1.1 Routes into private equity 3\u003c\/p\u003e \u003cp\u003e1.2 The limited partner's viewpoint 4\u003c\/p\u003e \u003cp\u003e1.3 The challenge of venture capital fund valuation 4\u003c\/p\u003e \u003cp\u003e1.4 Hard figures or gut instinct? 5\u003c\/p\u003e \u003cp\u003e1.5 Managing with fuzzy figures 5\u003c\/p\u003e \u003cp\u003e1.6 Making the grades 5\u003c\/p\u003e \u003cp\u003e1.7 Outline 7\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Private Equity Market 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e2.1 Funds as intermediaries 10\u003c\/p\u003e \u003cp\u003e2.2 The problem of predicting success 15\u003c\/p\u003e \u003cp\u003e2.3 Broad segmentation of investment universe 18\u003c\/p\u003e \u003cp\u003e2.4 Private equity market dynamics 22\u003c\/p\u003e \u003cp\u003e2.5 Conclusion 26\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Private Equity Fund Structure 27\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e3.1 Key features 29\u003c\/p\u003e \u003cp\u003e3.2 Conflicts of interest 38\u003c\/p\u003e \u003cp\u003e3.3 Finding the balance 38\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Buyout and Venture Capital Fund Differences 41\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e4.1 Valuation 43\u003c\/p\u003e \u003cp\u003e4.2 Business model 44\u003c\/p\u003e \u003cp\u003e4.3 Deal structuring 45\u003c\/p\u003e \u003cp\u003e4.4 Role of general partners 45\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Funds-of-funds 47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e5.1 Structure 47\u003c\/p\u003e \u003cp\u003e5.2 Value added 48\u003c\/p\u003e \u003cp\u003e5.3 Costs 51\u003c\/p\u003e \u003cp\u003e5.4 Private equity investment programme 52\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II Investment Process 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Investment Process 59\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e6.1 Key performance drivers 59\u003c\/p\u003e \u003cp\u003e6.2 Process description 61\u003c\/p\u003e \u003cp\u003e6.3 Risk management 65\u003c\/p\u003e \u003cp\u003e6.4 Tackling uncertainty 68\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Risk Framework 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e7.1 Market value 75\u003c\/p\u003e \u003cp\u003e7.2 Market or credit risk? 77\u003c\/p\u003e \u003cp\u003e7.3 Conclusion 78\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Portfolio Design 81\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e8.1 Portfolio design framework 81\u003c\/p\u003e \u003cp\u003e8.2 Portfolio construction techniques 83\u003c\/p\u003e \u003cp\u003e8.3 Risk–return management approaches 88\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Case Study 95\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e9.1 Looking for the optimal programme size 95\u003c\/p\u003e \u003cp\u003e9.2 Overcoming entry barriers: long-term strategies 104\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 The Management of Liquidity 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e10.1 Liquidity management problem 115\u003c\/p\u003e \u003cp\u003e10.2 Liquidity management approaches 123\u003c\/p\u003e \u003cp\u003e10.3 Investment strategies for undrawn capital 130\u003c\/p\u003e \u003cp\u003e10.4 Cash flow projections 133\u003c\/p\u003e \u003cp\u003e10.5 Conclusion 145\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart III Design Tools 151\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Established Approaches to Fund Valuation 153\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e11.1 Bottom-up approach to private equity fund valuation 154\u003c\/p\u003e \u003cp\u003e11.2 Inconsistency of valuations 157\u003c\/p\u003e \u003cp\u003e11.3 NAVs do not tell the full picture 157\u003c\/p\u003e \u003cp\u003e11.4 Portfolio companies cannot be valued in isolation 159\u003c\/p\u003e \u003cp\u003e11.5 Conclusion 162\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Benchmarking 165\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e12.1 Specific issues 165\u003c\/p\u003e \u003cp\u003e12.2 Individual funds 166\u003c\/p\u003e \u003cp\u003e12.3 Portfolio of funds 170\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 A Prototype Internal Grading System 173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e13.1 Grading of private equity funds 173\u003c\/p\u003e \u003cp\u003e13.2 The NAV is not enough 174\u003c\/p\u003e \u003cp\u003e13.3 Existing approaches 176\u003c\/p\u003e \u003cp\u003e13.4 New approach to internal fund-grading system 180\u003c\/p\u003e \u003cp\u003e13.5 Summary—NAV- and grading-based valuation 188\u003c\/p\u003e \u003cp\u003e13.6 Conclusion 189\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Fund Manager Selection Process 193\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e14.1 Relevance of fund manager selection 193\u003c\/p\u003e \u003cp\u003e14.2 Why due diligence? 194\u003c\/p\u003e \u003cp\u003e14.3 The due diligence process 195\u003c\/p\u003e \u003cp\u003e14.4 Fund manager selection process 197\u003c\/p\u003e \u003cp\u003e14.5 Decision and commitment 201\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Qualitative Fund Scoring 219\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e15.1 Scoring approach 219\u003c\/p\u003e \u003cp\u003e15.2 Scoring dimensions 221\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Grading-based Economic Model 233\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e16.1 Approach 233\u003c\/p\u003e \u003cp\u003e16.2 Internal age adjustment 237\u003c\/p\u003e \u003cp\u003e16.3 Private equity fund IRR projections 238\u003c\/p\u003e \u003cp\u003e16.4 Expected portfolio returns 239\u003c\/p\u003e \u003cp\u003e16.5 Discussion 241\u003c\/p\u003e \u003cp\u003e16.6 Conclusion 242\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Private Equity Fund Discount Rate 253\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e17.1 The capital asset pricing model 253\u003c\/p\u003e \u003cp\u003e17.2 Private equity fund betas 257\u003c\/p\u003e \u003cp\u003e17.3 The alternatives to the capital asset pricing model 264\u003c\/p\u003e \u003cp\u003e17.4 Summary and conclusion 266\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart IV Management Tools 269\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 Monitoring 271\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e18.1 Approach to monitoring 272\u003c\/p\u003e \u003cp\u003e18.2 The monitoring objectives 273\u003c\/p\u003e \u003cp\u003e18.3 Information gathering 276\u003c\/p\u003e \u003cp\u003e18.4 Evaluation 282\u003c\/p\u003e \u003cp\u003e18.5 Actions 285\u003c\/p\u003e \u003cp\u003e\u003cb\u003e19 Case Study: Saving Your Investments—Approaches to Restructuring 287\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e19.1 The valley of tears 288\u003c\/p\u003e \u003cp\u003e19.2 The report to the board 289\u003c\/p\u003e \u003cp\u003e19.3 The terms of the restructuring 291\u003c\/p\u003e \u003cp\u003e19.4 Epilogue 293\u003c\/p\u003e \u003cp\u003e\u003cb\u003e20 Secondary Transactions 297\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e20.1 Sellers and their motivations 297\u003c\/p\u003e \u003cp\u003e20.2 Buyers and their motivations 299\u003c\/p\u003e \u003cp\u003e20.3 Secondary market prices 300\u003c\/p\u003e \u003cp\u003e20.4 Transactional issues 307\u003c\/p\u003e \u003cp\u003e20.5 The fund manager perspective 308\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart V Embracing Uncertainty 311\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e21 Deviating from Top Funds 313\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e21.1 Strategic investments 313\u003c\/p\u003e \u003cp\u003e21.2 Policy objectives 314\u003c\/p\u003e \u003cp\u003e\u003cb\u003e22 Real Options 319\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e22.1 Real options in private equity 319\u003c\/p\u003e \u003cp\u003e22.2 Real option analysis 321\u003c\/p\u003e \u003cp\u003e22.3 An expanded strategy and decision framework 322\u003c\/p\u003e \u003cp\u003e\u003cb\u003e23 Beyond the J-curve 327\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e23.1 Some do it better 327\u003c\/p\u003e \u003cp\u003e23.2 Deadly sins 327\u003c\/p\u003e \u003cp\u003e23.3 Structure instead of \"gut instinct\" 328\u003c\/p\u003e \u003cp\u003e23.4 Patience is a virtue 328\u003c\/p\u003e \u003cp\u003e23.5 Turning water into wine 329\u003c\/p\u003e \u003cp\u003eGlossary 331\u003c\/p\u003e \u003cp\u003eBibliography 341\u003c\/p\u003e \u003cp\u003eAbbreviations 351\u003c\/p\u003e \u003cp\u003eIndex 353\u003c\/p\u003e \u003cp\u003e \u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":49402252230999,"sku":"9780470011980","price":55.1,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9780470011980.jpg?v=1730479840","url":"https:\/\/bookcurl.com\/products\/beyond-the-j-curve-9780470011980","provider":"Book Curl","version":"1.0","type":"link"}