Introduction to Private Equity

1

Selectively, some investors may add secondary items on their agenda, which can vary from gaining a foothold in the market/in a given company (corporate investors), to monitoring technical progress, achieving social recognition and other specific issues. However, viable investment programmes usually put financial returns at the top of their list (at least in order to achieve self-sustainability within a certain period of time).

2

Today, this would qualify as a transition from ‘research and development’ mode to ‘go to market’ mode.

3

Andy Bechtolsheim, co-founder of Sun Microsystems and Vice President at Cisco Systems; and Ram Shriram, former President of Junglee and Vice President of Business Development at Amazon.com.

4

This preferred return is then paid to the management team (catch up), if the performance is sufficient. Beyond this, the allocation of performance is done pro-rata with the 80 % and 20 % mentioned earlier.

5

A.L. Hahn, ‘The Feast Goes On’, Investment Dealer’s Digest Magazine.

6

August 18, 2006.

7

KPMG Private Equity/Manchester Business School, ‘Insight to Deal Origination’, 2006, 16 pages - http://www.hedgeweek.com/download/2106/KPMG%20-%20Private%20Equity%20-%20Insight%20into%20Deal%20Origination.pdf.

8

Hedge funds have begun to recruit some private equity professionals with regard to some of their holding companies.

9

Financial Times, October 10, 2006. The deal to make Hertz private is under investigation. The FSA has followed suit with an investigation. ...