Private Capital Investing

Table of contents

1. Cover
2. About the Author
3. Acknowledgements
4. About the Companion Site
5. Introduction
   1. THE RISE OF PRIVATE MARKETS (ALTERNATIVE ASSETS) IN THE INVESTORS' ALLOCATION
   2. THE RISE OF PRIVATE MARKETS AS A FAVOURED ALTERNATIVE SOURCE OF COMPANY FINANCING
   3. PRIVATE EQUITY
   4. PRIVATE DEBT
   5. DEAL PHASES AND BOOK ORGANISATION
   6. NOTE
6. CHAPTER 1: Closed End Funds
   1. A CLOSE UP ON PRIVATE EQUITY AND PRIVATE DEBT PARTNERSHIPS
   2. CASH FLOWS, J CURVE, AND RETURNS
   3. FINANCIAL RETURNS
   4. REFERENCES AND FURTHER READING
   5. SUGGESTED CASES
   6. NOTES
7. CHAPTER 2: Debt Products
   1. INTRODUCTION
   2. DEFINITION AND SOME USEFUL CLASSIFICATIONS
   3. PURE DEBT INSTRUMENTS
   4. HIGH-YIELD BONDS
   5. MEZZANINE
   6. UNITRANCHE
   7. A CLOSE UP ON SYNDICATED LENDING
   8. REFERENCES AND FURTHER READING
   9. SUGGESTED CASES
8. CHAPTER 3: Equity Products
   1. INTRODUCTION
   2. ORDINARY SHARES
   3. PREFERENCE SHARES
   4. CONVERTIBLES
   5. OTHER EQUITY INSTRUMENTS
   6. REFERENCES AND FURTHER READING
   7. SUGGESTED CASES
   8. NOTES
9. CHAPTER 4: Business Due Diligence
   1. INTRODUCTION
   2. MACRO FACTORS
   3. INDUSTRY RISK ANALYSIS
   4. COMPANY ANALYSIS
   5. SUMMARY STEPS FOR A STRATEGIC ANALYSIS OF A BUSINESS PLAN
   6. REFERENCES AND FURTHER READING
   7. SUGGESTED CASES
   8. NOTES
10. CHAPTER 5: Accounting Due Diligence
    1. INTRODUCTION
    2. QUALITY OF EARNINGS
    3. RATIO ANALYSIS
    4. CASH FLOW ANALYSIS
    5. CREATIVE ACCOUNTING
    6. REFERENCES AND FURTHER READING
    7. SUGGESTED CASES
    8. NOTES
11. CHAPTER 6: Business Plan
    1. INTRODUCTION
    2. PRO-FORMA FINANCIALS
    3. PROFIT AND LOSS PROJECTIONS
    4. BALANCE SHEET PROJECTIONS
    5. PUTTING IT ALL TOGETHER: MODELLING CASH, SHORT-TERM DEBT, NET INCOME, AND SHAREHOLDERS' EQUITY
    6. SENSITIVITY ANALYSIS
    7. CONSISTENCY CHECKS
    8. REFERENCES AND FURTHER READING
    9. SUGGESTED CASES
12. CHAPTER 7: Valuation
    1. INTRODUCTION
    2. FUNDAMENTALS #1: PRICE AND VALUE
    3. FUNDAMENTALS #2: ENTERPRISE VALUE AND EQUITY VALUE
    4. FUNDAMENTALS #3: MARKET VALUES VS. BOOK VALUES
    5. DISCOUNTED CASH VALUATION METHOD
    6. DISCOUNTED CASH VALUATION: WACC APPROACH
    7. DISCOUNTED CASH FLOW VALUATION: ADJUSTER PRESENT VALUE METHOD
    8. COMPARABLES VALUATION METHOD
    9. REFERENCES AND FURTHER READING
    10. SUGGESTED CASES
    11. NOTES
13. CHAPTER 8: Growth Equity
    1. INTRODUCTION
    2. DIFFERENCES BETWEEN VENTURE CAPITAL, GROWTH EQUITY, AND LBO
    3. INSTRUMENTS
    4. FUNDAMENTALS #1: PRE-MONEY AND POST-MONEY VALUATION
    5. FUNDAMENTALS #2: CAPITALISATION TABLE
    6. FUNDAMENTALS #3: DILUTION AND EQUITY STAKE CALCULATION
    7. FUNDAMENTALS #4: ANTI-DILUTION PROVISIONS
    8. FUNDAMENTALS #5: STRUCTURING FOR EXIT (ORDINARY SHARES VS. OTHER INSTRUMENTS)
    9. FUNDAMENTALS #6: REDEMPTION
    10. FUNDAMENTALS #7: THE GROWTH CAPITAL METHOD (ADAPTED FROM THE VENTURE CAPITAL METHOD)
    11. FUNDAMENTALS #8: CALCULATION OF THE PRICE PER SHARE
    12. FUNDAMENTALS #9: PUT AND CALL OPTIONS
    13. REFERENCES AND FURTHER READING
    14. SUGGESTED CASES
    15. NOTE
14. CHAPTER 9: Leveraged Buyout
    1. INTRODUCTION
    2. LBO: KEY CONCEPTS
    3. LBO ANALYSIS
    4. REFERENCES AND FURTHER READING
    5. SUGGESTED CASES
    6. NOTES
15. CHAPTER 10: Management of the Portfolio Companies and Exit
    1. INTRODUCTION
    2. REPORTING
    3. MONITORING
    4. VALUE CREATION
    5. EXIT
    6. IPO
    7. TRADE SALE
    8. SECONDARY/TERTIARY SALE TO FINANCIAL BUYERS
    9. OTHER EXIT ROUTES (SHARE BUYBACK, OPTIONS, RECAP)
    10. REFERENCES AND FURTHER READING
    11. SUGGESTED CASES
16. CHAPTER 11: Private Debt
    1. INTRODUCTION
    2. STRUCTURING A CREDIT FACILITY
    3. SANITY CHECKS
    4. STRUCTURING A LOAN FACILITY: A MODELLING EXAMPLE
    5. REFERENCES AND FURTHER READING
    6. SUGGESTED CASES
    7. NOTE
17. CHAPTER 12: Legal Documentation
    1. INTRODUCTION
    2. PRIVATE DEBT LEGAL DOCUMENTATION
    3. PRIVATE EQUITY LEGAL DOCUMENTATION
    4. REFERENCES AND FURTHER READING
    5. APPENDIX 12.1: EXAMPLE OF AN EQUITY TERM SHEET
    6. APPENDIX 12.2: EXAMPLE OF A DEBT TERM SHEET
18. CHAPTER 13: Distress Symptoms and Remedies
    1. EARLY WARNING SIGNALS
    2. CAUSES
    3. RESTRUCTURING OPTIONS
    4. FINANCING SOLUTIONS
    5. LEGAL ALTERNATIVES
    6. REFERENCES AND FURTHER READING
    7. SUGGESTED CASES
19. Index
20. End User License Agreement