Videos

hqdefault (1)1. What are Alternative Investments?

Alternative investments are alternatives to traditional investments such as: Private equity, Venture Capital, Infrastructure, Real estate, Timberland, Managed futures, Credit Instruments and Hedge Funds.

 

hqdefault (2)2. What is Private Equity?

The basic definition of private equity is to invest in private companies (including investing in public companies, and bringing them private).

 

hqdefault (3)3. Who Invests in Private Equity?

Investors in Private equity are Institutions (Pension Funds, Endowments, Foundations) and Individuals (Family Offices and select High Net Worth Individuals). This video also details the different types of private equity investing: Direct Investing, Fund Investing, Co-investing and Secondary Investing.

 

hqdefault (4)4. How do Limited Partnership Agreements Work?

Limited Partnership Agreements are between General Partners and Limited Partners (Investors). Limited Partners are: Institutions (Pension Funds, Endowments, Foundations) and Individuals (Family Offices and select High Net Worth Individuals). A General Partner is a Private equity.

 

hqdefault (5)5. How do Private Equity Firms and its partners make money?

Private equity firms make money primarily through two sets of fees: Management Fees
and Performance Fees.

 

hqdefault (6)6. How do Private Equity Firms find deals?

Private Equity Firms find good deals using Proprietary Deal Flow – using: Connections (Lawyers, Accountants and Private Equity Firms), Industry Knowledge – Focus on a specific industry and Marketing – A good Private Equity brand will attract sellers.

 

hqdefault (7)7. How do Private Equity Firms perform Due Diligence?

Private Equity Firms should never trust a company’s numbers when they are trying to sell.
Due diligence is research which allows for mitigation of risk. Due diligence, however, is rarely simplistic. There are lot’s of considerations in this process.

 

hqdefault (8)8. What Exit Options do Private Equity Firms have for their Portfolio Companies?

As a Private Equity Firm, you have multiple options on how to sell your portfolio company: Sell to the public markets through an IPO, Sell to a strategic buyer, Sell to management(through a management buyout), Sell to another PE Firm or Recapitalize the company and pay itself dividends.

 

hqdefault (9)9. What are the Best Private Equity Books to Read?

As Mark Twain said:
“The man who does not read has no advantage over the man who cannot read.”

 

hqdefault (10)10 .Review: Private Equity, Direct Investing, Fund Investing, Co-investing and Secondary Investing

Investors can invest in Private Equity in four different ways: Direct Investment, Fund Investing, Co-Investing and Secondary Investing.