Book description
The practical guide to direct investing strategies and best practicesThe Complete Direct Investing Handbook provides comprehensive guidelines, principles and practical perspectives on this increasingly attractive private equity investment strategy. Interviews with leading family office investors, qualified private equity buyers, and top direct investing advisors provide essential insights, and attention to the nuanced processes of direct investing. The books is a hands-on resource for family offices and those investors interested in generating returns through private company ownership to be more effective in creating returns in a complex market. Direct investing best practices are explored in-depth, with guidance on strategy and the evaluation and assessment of various investment opportunities. The process begins with a codified and specific investment goal, and a robust strategy tailored to the investor's individual needs. Useful insight on 'narrowing the field' helps investors select the appropriate opportunities to meet their investment goals, and practical tools help streamline the process of capital deployment and in turn providing more opportunities to achieve desired returns.
Despite the growing interest in direct investing, there is little public information available to investors and there is a lack of transparency into practical standards. This book bridges the gap between strategy and execution, with comprehensive guidance and real-world insights.
- Define and craft a focused investment thesis and appropriate timeline specific to your needs
- Identify the right type, size, duration, and risk profile aligned to your investment objectives
- Gain perspective on real-world direct investing and a deeper understanding of the risks and rewards
- Better understand best practices and institutional investment rigor to develop bespoke processes and policies that create better outcomes for independent investors
Historically, extraordinary wealth has been created through equity in privately-held enterprise. Today, family offices and direct investors are looking more and more toward large capital deployment in early-stage and growth-oriented private equity investments, but are constrained by a lack of informed, established practices. The Complete Direct Investing Handbook provides the much-needed guidance and tools that can improve direct investment outcomes.
Table of contents
- Cover
- Title Page
- Foreword
- Preface
- Acknowledgments
-
Part I: Direct Investing and the Family Office Test
- Chapter 1: Introduction to Direct Investing
- Chapter 2: The Emerging Presence of Private Capital in Direct Investing
-
Chapter 3: Co-Investment Strategies in Direct Investing
- Defining Co-Investing and Providing Context
- Insights on the Popularity of Co-Investing
- Interest in Co-Investment Strategies
- Roles of the Co-Investor
- Going Solo: Why Co-Investing May Not Be Your Choice
- The Perils and Pearls of Co-Investing
- Vetting Co-Investors
- Club Deals
- Mini Case Study
- Conclusion
- Notes
- Chapter 4: Private Equity Strategies: Characteristics and Implications
-
Part II: Direct Investing in Action
- Chapter 5: Family Office Considerations to the Direct Investment Process
-
Chapter 6: Designing a Direct Investment Thesis
- Defining the Direct Investment Thesis
- Asset Mix and the Direct Investment Thesis
- Family Pathways and the Direct Investment Thesis
- The Barbell Approach and the Direct Investment Thesis
- Entrepreneurial Orientation and the Direct Investment Thesis
- Family Investment Style and the Direct Investment Thesis
- Case Study
- Conclusion
- Notes
- Chapter 7: Sourcing, Deal Flow, Screening, and Deploying Direct Investments
- Chapter 8: Direct Investments: Deal Structures, Terms, and Portfolio Construction
-
Chapter 9: Investment Monitoring, Exit Strategies, and Harvesting Returns
- Introduction
- Alignment of Objectives
- Monitoring Direct Investments as a Minority Stake Owner
- Why Timing of an Investment Exit and Not Just the Investment Return Is Critical
- Importance of Company Lifecycles with Respect to Timing and Harvesting Returns
- Exit Valuations and Multiples
- Maximizing Liquidity of Illiquid Investments through Pre-Negotiated Rights
- Exit Value Drivers
- Common Exit Strategies
- Mergers and Acquisitions
- Working with Investment Bankers and Key Advisors to the Exit Strategy
- Conclusion
- Notes
-
Part III: Direct Investing Perspectives
- Chapter 10: The CIO Perspective
-
Chapter 11: The Millennials and Direct Investing: A Look at Impact Investing
- Who Are the Millennials and What Do They Care About?
- Millennials' Respect for the Senior Generation
- Growing Interest in Impact Investing
- Making the Case for Impact Investing
- How to Source Impact Investments
- Experiential Returns: Intangible Benefits of Impact Investing
- Common Challenges and Barriers to Impact Investing
- Systems Thinking: Creating and Sustaining Family Knowledge
- Conclusion
- Notes
- Chapter 12: SCIE: Sustainable Cycle of Investing Engagement
-
Chapter 13: International Direct Investing
- Why Consider International Direct Investing?
- Key Differences between Investing Abroad versus Investing in the United States
- How to Determine Where to Invest
- How Population Change Can Impact Target Market Opportunities
- Keys to Success in International Direct Investing
- The Role of a Partner in International Investing
- Common Mistakes Made by Investors Venturing Abroad
- Risk Mitigation
- Foreign Families in the United States
- Conclusion
- Notes
- Appendix A: Private Equity Strategies Summary
- Appendix B: Sample Due Diligence Checklist
- Appendix C: Glossary
- About the Author
- About the Chapter Authors
- Index
- End User License Agreement
Product information
- Title: The Complete Direct Investing Handbook
- Author(s):
- Release date: May 2017
- Publisher(s): Bloomberg Press
- ISBN: 9781119094715
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