Private Equity
A Casebook
By Paul Gompers
Victoria Ivashina
Richard Ruback
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About This Book
’Private Equity’ is an advanced applied corporate finance book with a mixture of chapters devoted to exploring a range of topics from a private equity investor’s perspective. The goal is to understand why and which practices are likely to deliver sustained profitability in the future. The book is a collection of cases based on actual investment decisions at different stages for process tackled by experienced industry professionals. The majority of the chapters deal with growth equity and buyout investments. However, a range of size targets and investments in different geographical markets are covered as well. These markets include several developed economies and emerging markets like China, Russia, Turkey, Egypt and Argentina. This compilation of cases is rich in institutional details, information about different markets, and segments of the industry as well as different players and their investment practices – it is a unique insight into the key alternative asset class.
Reviews
“Professors Gompers, Ivashina and Ruback have compiled an insightful, thorough and useful compendium of private equity techniques from valuation to structuring to firm management. The thoughtful practitioner will enjoy having this book not only as a reference but also as an opportunity to review case studies where theory is put into practice.”
—Michael S. Berk, Managing Director, TA Associates
“Private Equity is an invaluable tool for understanding how private equity investors conduct their craft with many real-life lessons to draw upon for new and emerging practitioners. The authors provide a road map for learning from many of the premier private equity firms and their landmark deals as well as insights on how the firms themselves execute the continuity of their business.”
—Darren Black, Managing Director, Summit Partners
“Professors Gompers, Ivashina and Ruback bring forth the depth and complexity of the growth equity and private equity deal-making process from the real-life perspectives of important industry participants. The professors’ structured view of the often unstructured and intuitive world of these risk capital providers makes this casebook an essential tool for educators, researchers and others with a professional interest in the industry.”
—Bruce R. Evans, Senior Advisor, Former Managing Director, Summit Partners
“The incisive detail of each case brings alive the complex considerations, both financial and human, that are critical to investment value creation. As we all must embrace continuing education, this is an excellent book for investors, practitioners and students alike. After all, the day we believe we have nothing further to learn is the day we become fools.”
—Dominique Senequier, President, Ardian
“A fabulous resource for the aspiring private equity investment professional. Gompers, Ivashina and Ruback strike a marvelous balance of being comprehensive, pragmatic and nuanced without being overly technical or academic. I wish this book had been around when I was starting out––it would have definitely turbocharged my understanding of how to approach potential opportunities and what makes successful private equity deals work.”
—Andrew S. Janower, Managing Director, Charlesbank
“I have been an enthusiastic used of the authors’ cases for several years now. This compilation, supplemented with several new cases and very useful teaching notes on PE techniques and concepts, is a great resource for anyone wanting to teach a comprehensive and up-to-date course on private equity. PE has come a long way since the ‘Barbarians at the gate’ of the 1980s, and this volume provides a rich and balanced view of the exciting new world of private equity investing.”
—Per Strömberg, SSE Centennial Professor of Finance and Private Equity, Swedish House of Finance
“Private equity investing is both an art and a science and certain investors appear to just have a ‘knack’ for picking winners. But this belies the discipline, diligence and consistently strong processes that almost always inform such successful investors’ wise decisions. Gompers, Ivashina and Ruback use compelling real-world examples to demonstrate the importance of such discipline throughout the ‘life cycle’ of successful private market transactions and provide the reader with many tools to develop their investment edge.”
—Neil Wallack, Founder and Managing Director, 1901 Partners
“It has been difficult for students and practitioners to find good materials on investing in private equity. Until now! In this book, Gompers, Ivashina and Ruback have compiled exciting and clearly written cases and notes on sourcing, valuing, structuring and managing private equity investments.”
—Steven Neil Kaplan, Neubauer Family Distinguished Service Professor of Entrepreneurship and Finance, University of Chicago Booth School of Business
“Private equity is becoming a fundamental topic in finance. Understanding the way in which private equity deals can create value is becoming a necessity for every good MBA student. This casebook provides the basis for a course that illustrates the private equity model from fundraising to exiting.”
—Michael Weisbach, Ralph W. Kurtz Professor of Finance, Ohio State University
Author Information
Paul A. Gompers is the Eugene Holman Professor of Business Administration at Harvard Business School, USA. His research focuses on venture capital and private equity.
Victoria Ivashina is the Lovett-Learned Professor of Business Administration at Harvard Business School, USA. Her research is in the area of applied corporate finance with a primary focus on credit markets and private equity.
Richard S. Ruback is the Willard Prescott Smith Professor of Business Administration at Harvard Business School, USA. His research focuses on applied corporate fi nance, especially corporatecontrol transactions and valuation.
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Table of Contents
Preface; Introduction to Private Equity Finance, Book Overview Note; Private Equity Finance Vignettes: 2016; Section 1: Deal Sourcing and Evaluation; 2. Deal Execution and Structuring; 3. Deal Management; 4. Realizations; 5. PE Firm Strategy and Management; Index.
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