Introduction to Private Equity - Day 1

Manages a 200m - 6.5b USD fund

What is Private Equity?

  • banking
    retail/commercial(corporate)/investment bank
  • funds
    hedge funds(public)/mutual funds(public)/investment fund/private equity

banks: 16-27 m salary(empolyee)
PE: 102-811 m salary(entrepreneurs)


PE Circle

Fund raising - Deal sourcing - Due Diligence & Structuring - Portfolio management - Exit

PE is about buying and selling business.

Steve Schwarzmann of Black Stone.


Who's who in PE? The people

  • Francis Leung
  • George W. Bush
  • John Browne
  • Nobuyuki
  • Lee Hsien Yang
  • Ferd Hu (Goldman Sachs Greater China)
  • Yao Ming

Who's who in PE? The companies

  • Apollo
  • Bain Capital
  • KKR
  • TPG
  • CVC
  • Inventis

26 billion USD - Hilton
LBO(leveraged buyout)


Equity Office

Why cannot the Equity Office sell themselves?

  • Reputation/competitors/tax issues

Any bubbles?

salary = 2% management fees + carry + dividends + consultation fees

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