Private Equity and Venture Capital in Europe

Private Equity and Venture Capital in Europe

by Stefano Caselli
Released November 2009
Publisher(s): Elsevier Science
ISBN: 9780080962948

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Book description

The distinctive nature of the European pe/vc environment is on display in Stefano Caselli’s presentation of its complete conceptual framework, from the volatile (its financial side) to the stable (its legal organization). A Bocconi University professor, Caselli offers a European perspective on market fundamentals, the v.c. cycle, and valuation issues, supporting his observations with recent examples and case studies. Written for investors, his book achieves many "firsts," such as clarifying many aspects of EU and UK financial institutions. Complete with finding aids, keywords, exercises, and an extensive glossary, Private Equity and Venture Capital in Europe is written not just for Europeans, but for everybody who needs to know about this growing market.



* Only book that provides a comprehensive treatment of PE/VC in UK/Europe, ideal for European business schools teaching professionals or pre-professionals who will work in Europe
* Provides a complete analysis of the EU versus US in all areas of PE/VC
* Contains cases and theory, providing both in one package
* Filled with pedagogical support features and online student and instructor resources

Table of contents

  1. Brief Table of Contents
  2. Table of Contents
  3. Dedication
  4. Copyright
  5. Foreword
    1. Building the cycle
  6. Preface
    1. About the book
  7. Acknowledgments
  8. About the Contributor
  9. About the Author
  10. Part 1. General Framework
  11. Chapter 1. The fundamentals of private equity and venture capital
    1. 1.1. Definition of Private Equity and Venture Capital
    2. 1.2. Main Differences Between Corporate Finance and Entrepreneurial Finance
    3. 1.3. The Map of Equity Investment: An Entrepreneur’s Perspective
    4. 1.4. The Map of Equity Investment: An Investor’s Perspective
    5. 1.5. The Private Equity Market in Europe
  12. Chapter 2. Clusters of investment within private equity
    1. 2.1. Preliminary Focus on the Different Clusters of Investment
    2. 2.2. The Main Issues of Investment Clusters
    3. 2.3. The Impact of Private Equity Operations
  13. Chapter 3. Theoretical foundation of private equity and venture capital
    1. Introduction
    2. 3.1. Theories about Corporation Financing
    3. 3.2. A Review of the Venture Capital (and Private Equity) Cycle
    4. 3.3. Fundraising
    5. 3.4. Investment Management and Monitoring
    6. 3.5. The Exit Phase
  14. Chapter 4. Legal framework in Europe for equity investors
    1. Introduction
    2. 4.1. Different Financial Institutions that Invest in Equity: An Introd- duction to the EU System
    3. 4.2. Banks and Investment Firms: Common Rules and Differences in the EU
    4. 4.3. Closed-End Funds and AMCs: Principles and Rules
    5. 4.4. Reasons for Choosing a Closed-End Fund Rather Than Banks or Investment Firms
    6. 4.5. The Relationship Between Closed-End Funds and AMCs: Economic and Financial Links
    7. 4.6. Usable Vehicles for Private Equity Finance in the EU
  15. Chapter 5. Legal framework in the United States and United Kingdom for equity investors
    1. Introduction
    2. 5.1. Why the US and UK Differ from the EU: The Common Law Versus Civil- l Law System and the Impact of Supervision and Regulation
    3. 5.2. Rules for US Equity Investors
    4. 5.3. Rules for UK Equity Investors
    5. 5.4. Carried Interest and Management Fee Scheme: US and UK Systems
    6. 5.5. Clauses Signed in an LP Agreement
  16. Chapter 6. Taxation framework for private equity and fiscal impact for equity investors
    1. Introduction
    2. 6.1. Fundamental Role of Taxation in Private Equity and Venture Capital
    3. 6.2. Taxation and Equity Investors: Lessons from Theory and Relevant Models
    4. 6.3. Taxation Players: Investment Vehicles, Investors, and Companies D- Demanding Capital
    5. 6.4. Taxation Features Around the World: A Brief Comparative Analysis
    6. 6.5. Fiscal Framework for Equity Investors and Vehicles: The EU Condition
  17. Part 2. The Process and the Management to Invest
  18. Chapter 7. The management of equity investment
    1. 7.1. Equity Investment as a Process: Organization and Management
    2. 7.2. The Four Pillars of Equity Investment
    3. 7.3. The Relevance of Expertise and Skills Within the Process
  19. Chapter 8. Fundraising
    1. 8.1. Creation of the Business Idea
    2. 8.2. Venture Capital Organizations
    3. 8.3. Selling Job
    4. 8.4. Debt Raising
    5. 8.5. Calling Plan
    6. 8.6. Key Covenant Setting
    7. 8.7. Types of Investments
  20. Chapter 9. Investing
    1. 9.1. Valuation and Selection
    2. 9.2. The Contractual Package
    3. 9.3. Problems and Critical Areas of Venture Capital Operations
    4. 9.4. The Role of Managerial Resources
    5. 9.5. Possible Unsuccessful Financial Participation
    6. 9.6. Involvement of Venture Capitalists in the Board of Directors
  21. Chapter 10. Managing and monitoring
    1. 10.1. Performance Determination
    2. 10.2. The Managing and Monitoring Phase
  22. Chapter 11. Exiting
    1. 11.1. Exiting and Timing
    2. 11.2. Exit Alternatives
    3. 11.3. Quotation of Private Equity Companies
  23. Part 3. Valuation and The “Art of Deal Making”
  24. Chapter 12. Company evaluation in private and venture capital
    1. 12.1. Company Valuation
    2. 12.2. Five Phases of Company Valuation
    3. 12.3. Valuation of the Company and Market Dynamics
  25. Chapter 13. Techniques of equity value definition
    1. 13.1. Enterprise Value Analysis
    2. 13.2. Choosing a Valuation Method
    3. 13.3. Basic Concepts of Company Valuation
    4. 13.4. The Fundamental of Comparables
    5. 13.5. Discounted Cash Flow Approach
    6. 13.6. Venture Capital Method
  26. Chapter 14. Financing seed and start up
    1. 14.1. General Overview of Early Stage Financing
    2. 14.2. Operation Phases During Early Stage Financing
    3. 14.3. Structure of Venture Capitalists in Early Stage Financing
    4. 14.4. Selection of the Target Company
    5. 14.5. Supporting Innovation Development
    6. 14.6. Private Investor Motivation and Criteria
  27. Chapter 15. Financing growth
    1. 15.1. General Overview of Financing Growth
    2. 15.2. The Cluster of Financing Growth Deals
    3. 15.3. Advantages for Venture-backed Companies
    4. 15.4. Disadvantages for Venture-backed Companies
    5. 15.5. Characteristics of Growth
    6. 15.6. External Growth
  28. Chapter 16. Financing buyouts
    1. 16.1. General Overview of Buyouts
    2. 16.2. Characteristics of a Buyout Deal
    3. 16.3. Valuation and Managed Risk
    4. 16.4. Conditions for a Good and a Bad Buyout
  29. Chapter 17. Turnaround and distressed financing
    1. Introduction
    2. 17.1. General Overview of Turnaround Financing
    3. 17.2. Characteristics of Turnaround or Replacement Financing
    4. 17.3. The Main Reason for Turnaround or Replacement Financing
    5. 17.4. Valuation and Management of Risk
    6. 17.5. Merger and Acquisition
    7. 17.6. General Overview of Distressed Financing
    8. 17.7. Characteristics of Distressed Financing
  30. Chapter 18. Listing a private company
    1. 18.1. General Overview of an IPO
    2. 18.2. Characteristics of a Company Going Public
    3. 18.3. Advantages of an IPO for the Company
    4. 18.4. Advantages of an IPO for Shareholders
    5. 18.5. Advantages of an IPO for Management
    6. 18.6. Disadvantages of an IPO
    7. 18.7. The IPO Process
  31. Chapter 19. Strategies, business models, and perspectives of private equity and venture capital
    1. 19.1. General Overview: A World Between the Golden Age and Uncertainty
    2. 19.2. European Background
    3. 19.3. Strategies and Business Models of Private Equity Firms
    4. 19.4. Perspectives and Destiny of Private Equity and Venture Capital
  32. Glossary
  33. Glossary
  34. Bibliography
    1. References

Product information

  • Title: Private Equity and Venture Capital in Europe
  • Author(s): Stefano Caselli
  • Release date: November 2009
  • Publisher(s): Elsevier Science
  • ISBN: 9780080962948