Private Capital Investing

Introduction

The alternative investment industry has grown from $1 trillion in 1999 to nearly $6 trillion in 2018 (source: PreQin) and is expected to more than double to $15 trillion by 2022 (source: PWC AWM Research Center analysis). Within the various alternative asset classes, private debt and private equity already represent a significant share and are expected to grow faster than other asset classes.

The main drivers of growth are represented, on the supply side, by regulatory changes (constraining bank lending). On the demand side, small and mid size companies find it increasingly interesting to be financed by principal investors (alternative lenders and private equity funds) which are not only mere providers of specialised capital but – from due diligence to monitoring and value creation – also support entrepreneurs in their strategic, business and financial decisions.

Alternative assets classes are also an appealing investment opportunity for institutional investors because they offer both income and capital appreciation.

These dramatic changes in the financial landscape have been only partially accompanied by adequate educational tools: no handbook on private debt is available, whilst private equity textbooks take a very partial view (the financial analysis one) of investment decisions.

The book Private Capital Investing. Handbook of Private Debt and Private Equity (henceforth Private Capital Investing) is a practical handbook on investing in the most common alternative ...