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Private Equity Market Landscape
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Private Equity Market Landscape

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  • 1. Presented by:Frances Cheng, CFA, MBA (Finance), CAIA, FRM, CFP
  • 2.  Venture Capital (VC) Funds  Progressive technology or fast-growing sectors  Seed, start-up, and expansion  Industry know-how, product development, and commercialization.  Company building & finding follow-on investors
  • 3.  Venture Capital (VC) Funds Buyout Funds  Established industry focus  Stable and mature growth  Corporate restructuring, financial engineering.  Company building and leverage
  • 4.  Venture Capital (VC) Funds Buyout Funds Mezzanine Funds  Established privately held and/or below investment grade  Subordinated debt, warrants/rights
  • 5. VC FUNDS Small capital in a large number of new businesses. Few successes, many write-offs
  • 6. VC FUNDS BUYOUTS Small capital in a large  Small number of large number of new businesses. investments in established businesses. Few successes, many  High successes, limited write-offs write-offs
  • 7. VC FUNDS Equity financing Limited due diligence – product/sector Syndications / IPO
  • 8. VC FUNDS BUYOUTS Equity financing  Debt financing Limited due  Extensive due diligence diligence Syndications / IPO
  • 9. VC FUNDS Traditional techniques. Existing market multiples, not on CF. Overvaluation. No outside oversight. Financing: limited investment, several rounds
  • 10. VC FUNDS BUYOUTS Traditional techniques.  CF projections. Existing market  Leverage. multiples, not on CF. Overvaluation. No outside oversight.  Oversight by lenders. Financing: limited  Large investment, club investment, several deals. rounds
  • 11. VC FUNDS GP – key drivers, entrepreneurs. LP
  • 12. VC FUNDS BUYOUTS GP – key drivers,  Buyout managers entrepreneurs. LP  LP – investors, little influence