The practical guide to direct investing strategies and best practices
The 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.
Autorentext
KIRBY ROSPLOCK, PhD, is founder and CEO of Tamarind Partners, a consulting firm that advises family offices, ultra-high-net-worth investors, and the wealth management industry. She is a researcher, scholar, educator, and well-respected speaker around the globe on family wealth, family office, and family business. She is also the author of The Complete Family Office Handbook. For more on Dr. Rosplock and Tamarind Partners, visit www.TamarindPartners.com.
Zusammenfassung
The practical guide to direct investing strategies and best practices
The 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.
Inhalt
Foreword xvii
Preface xxi
Acknowledgments xxi
Part I: Direct Investing and the Family Office Test
Chapter 1 Introduction to Direct Investing 3
2008: A Wakeup Call for Investors 5
Role of the Family Office and Private Investors 6
The Opportunity 9
Best Practices 10
Key Considerations 12
Conclusion 15
Notes 16
Chapter 2 The Emerging Presence of Private Capital in Direct Investing 18
Contributing Authors: Nathan Hamilton and Sara Hamilton
The Family Office Marketplace 19
The Unique Benefits of Private Capital 21
Increased Interest in Private Equity 24
Conclusion 30
Chapter 3 Co-Investment Strategies in Direct Investing 32
Defining Co-Investing and Providing Context 32
Insights on the Popularity of Co-Investing 33
Interest in Co-Investment Strategies 33
Roles of the Co-Investor 35
Going Solo: Why Co-Investing May Not Be Your Choice 40
The Perils and Pearls of Co-Investing 41
Vetting Co-Investors 44
Club Deals 46
Mini Case Study 51
Conclusion 51
Notes 52
Chapter 4 Private Equity Strategies: Characteristics and Implications 54
Contributing Author: David McCombie
What Is Private Equity? 55
Real Estate 58
Venture Capital 62
Growth Capital 72
Buyouts 75
Mezzanine Financing 78
Distressed Assets 81
Conclusion: Putting It All Together 85
Notes 86
Part II: Direct Investing in Action
Chapter 5 Family Office Considerations to the Direct Investment Process 91
Source of Wealth: Lens of the Family Office 92
SWOT Analysis for Direct Investing 93
Three Phases to the Direct Investing Process 94
A Three-Phase Direct Investing Process 97
Case Study 111
Conclusion 113
Notes 114
Chapter 6 Designing a Direct Investment Thesis 115
Defining the Direct Investment Thesis 115
Asset Mix and the Direct Investment Thesis 117
Family Pathways and the Direct Investment Thesis 119
The Barbell Approach and the Direct Investment Thesis 122
Entrepreneurial Orientation and the Direct Investment Thesis 124
Family Investment Style and the Direct Investment Thesis 128
Case Study 132
Conclusion 137
Notes 138
Chapter…