Private Equity in Action

Global Best Practice in Private Equity Investing

Private Equity in Action takes you on a tour of the private equity investment world through a series of case studies written by INSEAD faculty and taught at the world's leading business schools. The book is an ideal complement to Mastering Private Equity and allows readers to apply core concepts to investment targets and portfolio companies in real-life settings. The 19 cases illustrate the managerial challenges and risk-reward dynamics common to private equity investment.

The case studies in this book cover the full spectrum of private equity strategies, including:

• Carve-outs in the US semiconductor industry (LBO)
• Venture investing in the Indian wine industry (VC)
• Investing in SMEs in the Middle East
• Turnaround situations in both emerging and developed markets

Written with leading private equity firms and their advisors and rigorously tested in INSEAD's MBA, EMBA and executive education programmes, each case makes for a compelling read.

As one of the world's leading graduate business schools, INSEAD offers a global educational experience. The cases in this volume leverage its international reach, network and connections, particularly in emerging markets.

Private Equity in Action is the companion to Mastering Private Equity: Transformation via Venture Capital, Minority Investments & Buyouts, a reference for students, investors, finance professionals and business owners looking to engage with private equity firms. From deal sourcing to exit, LBOs to responsible investing, operational value creation to risk management, Mastering Private Equity systematically covers all facets of the private equity life cycle.

Autorentext

Claudia Zeisberger is an INSEAD Senior Affiliate Professor of Decision Sciences and Entrepreneurship and Family Enterprise. She is concurrently the Academic Director of INSEAD's Global Private Equity Initiative (GPEI), one of INSEAD's centers of excellence, which she founded in 2008 to focus the school's capabilities & achievements in Private Equity, increase its visibility and cater to specific industry needs in research and education. At INSEAD, she teaches in the MBA and EMBA programmes as well as in multiple Executive Education courses both in Singapore & in Fontainebleau.

Michael Prahl is Adjunct Professor for Entrepreneurship & Family Enterprise at INSEAD, he is also Executive Director GPEI, oversees all research of the initiative and was instrumental in creating all its recent publications, its database project and outreach activities. His specific research interests are in the areas of risk and return in emerging markets, operational value creation and market entry strategies & portfolio allocation for limited partners.

Bowen White is a Research Associate at GPEI. Bowen's research interests include private equity in emerging markets, the institutionalization of SE Asian financial markets, and project finance. Prior to moving to Singapore in 2009, Bowen spent five years in the New York hedge fund industry in trading and business development roles.

Klappentext

Global Best Practice in Private Equity Investing Private Equity in Action takes you on a tour of the private equity investment world through a series of case studies written by INSEAD faculty and taught at the world's leading business schools. The book is an ideal complement to Mastering Private Equity and allows readers to apply core concepts to investment targets and portfolio companies in real-life settings. The 19 cases illustrate the managerial challenges and risk-reward dynamics common to private equity investment. The case studies in this book cover the full spectrum of private equity strategies, including: Carve-outs in the US semiconductor industry (LBO) Venture investing in the Indian wine industry (VC) Investing in SMEs in the Middle East Turnaround situations in both emerging and developed markets Written with leading private equity firms and their advisors and rigorously tested in INSEAD's MBA, EMBA and executive education programmes, each case makes for a compelling read. As one of the world's leading graduate business schools, INSEAD offers a global educational experience. The cases in this volume leverage its international reach, network and connections, particularly in emerging markets. Private Equity in Action is the companion to Mastering Private Equity: Transformation via Venture Capital, Minority Investments & Buyouts, a reference for students, investors, finance professionals and business owners looking to engage with private equity firms. From deal sourcing to exit, LBOs to responsible investing, operational value creation to risk management, Mastering Private Equity systematically covers all facets of the private equity life cycle.

Inhalt

Preface v

Section I GP-LP Relationships 1

Case 1 Beroni Group: Managing GP-LP Relationships 3

Case 2 Going Direct: The Case of Teachers' Private Capital 11

Case 3 Pro-invest Group: How to Launch a Private Equity Real Estate Fund 39

Case 4 Hitting the Target: Optimizing a Private Equity Portfolio with the Partners Group 55

Section II Venture Capital 71

Case 5 Sula Vineyards: Indian Wine?-Ce n'est pas possible! 73

Case 6 Adara Venture Partners: Building a Venture Capital Firm 91

Case 7 Siraj Capital: Investing in SMEs in the Middle East 107

Section III Growth Equity 127

Case 8 Private Equity in Emerging Markets: Can Operating Advantage Boost Value in Exits? 129

Case 9 Slalom to the Finish: Carlyle's Exit from Moncler 155

Case 10 Investor Growth Capital: The Bredbandsbolaget Investment 177

Section IV Leveraged Buyouts (LBOs) 201

Case 11 Chips on the Side (A): The Buyout of Avago Technologies 203

Case 12 Chips on the Side (B): The Buyout of Avago Technologies 229

Case 13 Going Places: The Buyout of Amadeus Global Travel Distribution 245

Section V Turnarounds and Distressed Investing 261

Case 14 Crisis at the Mill: Weaving an Indian Turnaround 263

Case 15 Vendex KBB: First Hundred Days in Crisis 279

Case 16 Turning an Elephant into a Cheetah: The Turnaround of Indian Railways 305

Section VI Private Equity in Emerging Markets 325

Case 17 Rice from Africa for Africa: Rice Farming in Tanzania and Investing in Agriculture 327

Case 18 Private Equity in Frontier Markets: Creating a Fund in Georgia 355

Case 19 Asian Private Equity: A Family Office's Quest for Return 379

Acknowledgements 399

About the Authors 401