Private Equity Fund Investments: New Insights on Alignment of Interests, Governance, Returns and Forecasting [Paperback]

This book presents new, advanced, evidence-based guidance on investing in private equity funds: first by assessing the investor's environment and motivations, then by looking into the risks, returns and overall performance of funds and finally, by offering practical solutions to the illiquidity conundrum.1. Introduction 2. Sub-Optimal Risk-Return Profiles in Private Equity 3. Fee Levels, Performance and Alignment of Interests in Private Equity 4. The Predictive Power of the J-Curve 5. Conclusion

Thanks to the exhaustiveness of its references and the rigor of its analysis, this new publication is a must-read for both practitioners and researchers.

No?l Amenc, PhD, Professor of Finance, Director of the EDHEC Risk Institute, CEO ERI Scientific Beta

The author delivers a variety of interesting topics and look-outs in the area of Private Equity (PE) investing. One particular interesting topic is the predictive power of the J-Curve. The author is pointing out interesting aspects which are useful for managing the risks associated with the illiquidity in PE portfolios also supporting a more active management and benchmarking of existing portfolios of PE funds. On the other hand, regulators would get the tools at hand to reduce the cost of capital associated with investing in PE. The illiquidity in PE is not necessarily more risky per se than investing in more liquid investments and the ability to estimate the risk of the PE fund portfolios in terms of VaR or Expected Shortfall of cash flows would allow to get rid of some misconceptions in the risk measurement of illiquid private equity investments.

Ivan Popovic, Partner, Aeris Capital AG

'There appears to be a vicious circle: the perception that private equity (PE) is highly risky results in small allocations to this asset class. The immaterial exposure to PE does not make it worth for institutional investors to look at it specifically. So tl#*