26
Please refer to Chapter 3 Growth Equity and Chapter 4 Buyouts for in-depth discussions.
27
Chapter 19 Performance Reporting explains the dynamics of fund-level returns in greater detail.
28
Chapter 18 LP Portfolio Management discusses the decision-making process when allocating to PE in detail.
29
Please refer to Chapter 7 Target Valuation for a worked-out example on VC valuation.
30
Kauffman Foundation; ‘We have met the enemy – and he is us’; (2012).
31
Please refer to Chapter 9 Deal Structuring and to the Glossary in the back of the book for more details on the different share classes used in VC.
32
See Chapter 7 Target Valuation for further details on VC valuation techniques and a worked example.
33
Subtracting invested capital from a post-money valuation establishes the “pre-money” valuation.
34
Club deals are PE investments made by two or three PE funds; they were particularly fashionable for large buyouts during the years leading up to the global financial crisis in 2008.
35
Existing investors often participate in subsequent rounds to maintain their ownership percentage in the business and to signal both their continued support and overall health of the business.
36
More information on deal documentation can be found in Chapter 10 .