Praise for Private Equity
"Private Equity: History, Governance, and Operations is an invaluable guide to understanding the world of private equity investing. Harry Cendrowski and his colleagues have drawn on their extensive experience and expertise to produce a book that is remarkably comprehensive and authoritative."
—Robert Larson, Chairman, Lazard Real Estate Partners LLC and Larson Realty Group Managing Director, Lazard Alternative Investments
"Private Equity: History, Governance, and Operations is an essential text for any business/finance professional's library. Applicable to both seasoned private equity gurus and students of the industry, its in-depth analysis of 'Best Practices' is well researched and clearly written."
—William Campbell, Managing Director, W.Y. Campbell & Company
"This is an interesting and very well-written book. It not only clearly describes the history and techniques of private equity investing, it also provides a thorough examination of the rarely appreciated relationships among internal control design and operation, corporate governance and sound investment decision-making and management. It is an important contribution to the literature of finance."
—Barry Epstein, PhD, CPA, Partner, Russell Novak & Company, LLP, and author of Wiley GAAP 2008, The Handbook of Accounting and Auditing, and Wiley IFRS 2008
"Harry Cendrowski really hits a homerun with his newest book about the private equity (PE) industry. A definitive, authoritative text on the subject, it answered all my questions, plus some, and gave me a complete frame of reference where I now feel well informed on PE. I would recommend this book to anyone connected to the PE industry, business advisors, academics, and business owners."
—Parnell Black, MBA, CPA, CVA, Chief Executive Officer, National Association of Certified Valuation Analysts (NACVA)
"The timing could not be better to learn more about the current best practices and governance in the world of private equity. What was once an exclusive asset class reserved for the largest, most sophisticated investors has now become a mainstream alternative investment option for investors of all sizes. Still, many investors do not fully understand how the business works. Private Equity: History, Governance, and Operations endows its readers with an A-to-Z education on this emerging asset class, irrespective of their previous experiences."
—Maribeth S. Rahe, President and Chief Executive Officer, Fort Washington Investment Advisors, Inc. & Fort Washington Capital Partners
"As a private equity practitioner in the financial services space, I found this book to be a comprehensive-and comprehendible-resource covering all relevant aspects of the business of private equity. This book provides valuable 'how-to's' for improving the likelihood of having successful portfolio companies, with successful exits. Furthermore, both veteran and prospective PE investors now have a resource available to help them screen PE opportunities that best fit with their risk and return objectives."
—Scott B. McCallum, Principal, Resource Financial Institutions Group, Inc.
"For years, private equity has been a misunderstood asset class. Harry Cendrowski's book defines private equity in clear, concise terms. Anyone in the financial world will benefit from the insights, guidelines, and experiences detailed in Private Equity: History, Governance, and Operations."
—Bob Clone, Senior Portfolio Manager, Alternative Investments Division, Michigan Department of Treasury
"This comprehensive guide provides insight into a once-exclusive form of investing that is now an integral part of the world economy, with a focus on venture capital financing and buyout transactions." (Journal of Accountancy
, April 1st, 2009)
"This book would be valuable to a widely varied audience. Both prospective and seasoned PE investors, PE professionals, students of business and finance, and general readers would learn much from the different modules of this work." (Legal Information Alert, January 2009)
From the Inside Flap
History, Governance, and Operations
Soaring from the depths of its all-time low in the late 1970s, private equity (PE) investment is now a staple of the world economy: it reshapes "tired" companies into more agile organizations, while also financing the world's newest and best ideas so that they may come to market. Although once demeaned by outsiders, private equity has now earned its place in the investment community as an asset class that generates wealth for both investors and the employees of companies it reshapes. Written by an investment dream team of authors, Private Equity: History, Governance, and Operations skillfully describes the mechanisms by which private equity achieves these goals.
Here, you'll discover a goldmine of information centered on private equity, including a thorough overview of the history of PE, how governance structures differ between private equity portfolio companies and those of public corporations, and how the operations of PE portfolio companies can be improved. The text provides valuable information for a broad spectrum of readers, including high- net-worth individuals, accountants and auditors, private equity portfolio managers, entrepreneurs, and public company managers.
Presenting a novel framework for the analysis of private equity investments, Private Equity: History, Governance, and Operations is divided into four modules aimed at expanding the reader's knowledge of PE investment strategy and fund management. The handbook begins with a comprehensive introduction to the private equity process, describing in depth the key players, terms of investment, and historical trends. From there, the authors introduce the harvesting mechanisms of the initial public offering (IPO) and the sale to a strategic or financial buyer (an M&A deal). All of this information is included in the book's first module, "The History of Private Equity." In the second module, "Governance Structures in Private Equity," the unique governance structures that the PE model imparts on portfolio companies, applicable professional standards, models of internal control, and contemporary business and competitive intelligence are discussed. The third module, "Understanding Operations," provides the reader with information centered on assessing and improving the operations of portfolio companies while introducing a philosophical framework that facilitates a detailed understanding of the complexities of today's organizations. The final module, "Special Considerations in Private Equity Investments," highlights the intricacies of PE fund and portfolio company investment, legal considerations in exit strategies, and raising capital through exempt offerings of securities.
Loaded with rich details on the PE industry, Private Equity contains all the information you need to know to become a better investor by employingsound governance practices and operations know-how.