| Description |
1 online resource (1 volume) |
| Contents |
Intro -- Private Equity and Venture Capital in Europe: Markets, Techniques, and Deals -- Copyright -- Contents -- Preface -- Acknowledgments -- Introduction -- Part 1: Private equity business: General framework and theories -- Chapter 1: The fundamentals of private equity and venture capital -- 1.1. Introduction -- 1.2. Definition of private equity and venture capital -- 1.2.1. Difference between private equity and public equity -- 1.2.2. Difference between private equity and the banking system -- 1.2.2.1. Certification effect -- 1.2.2.2. Network effect -- 1.2.2.3. Knowledge effect -- 1.2.2.4. Financial effect -- 1.2.3. Main differences between corporate finance and entrepreneurial finance -- 1.3. The map of equity investment: An entrepreneur's perspective -- 1.4. The map of equity investment: An investor's perspective -- Further reading -- Chapter 2: Mechanics of private equity and recent trends -- 2.1. Introduction -- 2.2. The relation between fund, firm, and investors -- 2.3. Recent data -- 2.3.1. Fundraising in the world and in Europe -- 2.3.1.1. World data -- 2.3.1.2. European data -- 2.3.2. Investment in the world and in Europe -- 2.3.2.1. World data -- 2.3.2.2. European data -- 2.3.3. Divestment in the world and in Europe -- 2.3.3.1. World data -- 2.3.3.2. European data -- 2.3.4. The effects of Covid-19 on the private equity business -- Further reading -- Chapter 3: Theoretical foundation of private equity and venture capital -- 3.1. Introduction -- 3.2. Theories about corporation financing -- 3.2.1. Remarks on the approach of Modigliani and Miller -- 3.2.2. Remarks on the trade-off theory approach -- 3.2.3. Remarks on agency theory -- 3.2.4. Remarks on pecking order theory -- References -- Further reading -- Chapter 4: Clusters of investment within private equity -- 4.1. Introduction |
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4.2. Preliminary focus on the different clusters of investment -- 4.2.1. The demand-driven approach -- 4.2.2. The supply-driven approach -- 4.2.3. Comparison between the two approaches -- 4.3. The main issues of investment clusters -- 4.4. Private equity deals -- 4.4.1. Seed financing -- 4.4.2. Start-up financing -- 4.4.3. Early stage financing -- 4.4.4. Expansion financing -- 4.4.5. Replacement financing -- 4.4.6. Vulture financing -- 4.4.7. Private equity managerial involvement -- Further reading -- Part 2: Private equity investment clusters -- Chapter 5: Investing in the early stages of a company: Venture capital -- 5.1. Introduction -- 5.2. General overview of early stage financing -- 5.2.1. Seed financing -- 5.2.2. Start-up financing -- 5.2.3. Early growth financing -- 5.3. Operation phases during early stage financing -- 5.4. Structure of venture capitalists in early stage financing -- 5.5. Selection of the target company -- 5.6. Supporting innovation development -- 5.7. Private investor motivation and criteria -- Further reading -- Chapter 6: The venture capital industry -- 6.1. Introduction -- 6.2. The startup cycle -- 6.2.1. Definition of a start-up business -- 6.2.2. The timeline of the startup cycle -- 6.2.3. Case studies -- 6.2.3.1. Spotify-Sweden -- 6.2.3.2. Grammarly-Ukraine -- 6.3. The startup business innovation matrix -- 6.4. Venture capital business evolution -- 6.4.1. Fintech -- 6.4.2. Healthtech and Medtech -- 6.4.3. Mobiltech -- Further reading -- Chapter 7: Investments in mature companies: Expansion financing -- 7.1. General overview of financing growth -- 7.2. Expansion financing -- Internal growth -- External growth (i.e., acquisition of a target company) -- 7.3. The cluster of expansion growth deals -- 7.4. Characteristics of growth -- 7.5. Internal growth -- 7.6. External growth -- 7.6.1. M & amp -- A motivations |
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7.6.2. M & amp -- A characteristics -- 7.6.3. M & amp -- A in the private equity business -- 7.7. Advantages for venture-backed companies -- 7.8. Disadvantages for venture-backed companies -- 7.9. European trends -- Further reading -- Chapter 8: Investments in mature companies: Replacement financing -- 8.1. Introduction -- 8.2. Replacement financing -- 8.3. Private investment in public equity deals -- 8.4. Public to private deals -- 8.5. Corporate governance deals/turnaround deals -- 8.5.1. Characteristics of turnaround deals -- 8.5.2. Reasons behind turnaround deals -- 8.5.3. Valuation and risk management in turnaround -- 8.6. Buyout and leveraged-buyouts -- 8.6.1. General overview of buyouts -- 8.6.2. Characteristics of a buyout deal -- 8.6.3. LBO as a private equity deal -- 8.7. Final remarks on replacement financing -- Further reading -- Chapter 9: Investing in mature companies: Vulture financing -- 9.1. Introduction -- 9.2. General overview of vulture financing -- 9.3. Characteristics of restructuring financing -- 9.4. Characteristics of distressed financing -- Further reading -- Part 3: Legal and fiscal framework in the private equity business around the world -- Chapter 10: Legal framework in Europe for equity investors -- 10.1. Introduction -- 10.2. Different financial institutions that invest in equity: An introduction to the EU system -- 10.3. Banks and investment firms: Common rules and differences in the EU -- 10.3.1. Banks -- 10.3.1.1. The role of Basel frameworks on private equity investments for banks and investments firms -- 10.3.2. Investment firms -- 10.4. Closed-end funds -- 10.4.1. Funds -- 10.4.2. AMC -- 10.4.2.1. The minimum requisites to operate for AMC -- 10.4.2.2. Governance rules for AMC -- 10.4.2.3. Management rules for AMC -- 10.4.3. Closed-end funds -- 10.4.3.1. General framework for closed-end funds |
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10.4.3.2. Internal code of activities for closed-end funds -- 10.4.3.3. The investment policy for closed-end funds -- 10.4.3.4. Definition of public and ̀̀reserved́́ offer -- 10.5. Reasons for choosing a closed-end fund rather than banks or investment firms -- 10.6. Corporate venture capital -- 10.7. Private equity in Europe -- 10.7.1. The southern Europe model -- 10.7.1.1. Italy -- 10.7.1.2. Spain -- 10.7.2. The Central Europe model -- 10.7.2.1. France and Benelux -- France -- Benelux -- 10.7.2.2. DACH region -- Further reading -- Chapter 11: The private equity legal framework in the United States -- 11.1. Introduction to the US market -- 11.2. Why the United States and the United Kingdom differ from the EU: The common law versus civil law system and the imp ... -- 11.3. Rules for US equity investors -- 11.3.1. Venture capital funds -- 11.3.2. Small business investment companies -- 11.3.3. Corporate ventures -- 11.3.4. Banks -- 11.3.5. Business angels -- 11.4. The venture capital activity in the United States -- Further reading -- Chapter 12: The legal framework in the UK -- 12.1. Introduction -- 12.2. Rules for UK equity investors -- 12.2.1. Venture capital funds -- 12.2.2. Venture capital trusts -- 12.2.3. Merchant banks -- 12.2.4. Business angels -- 12.2.5. Dedicated public institutions -- 12.3. Clauses signed in an limited partnership agreement -- Further reading -- Chapter 13: The remuneration system -- 13.1. Introduction -- 13.2. The relationship between closed-end funds and AMCs -- 13.3. The remuneration mechanisms of the private equity industry -- 13.3.1. General overview of costs and revenues -- 13.3.2. Management fee -- 13.3.3. Carried interest -- 13.4. Case study 1: Remuneration in a closed-end fund -- 13.4.1.1. IRR for private equity -- 13.4.1.2. IRR for investors -- 13.4.1.3. IRR for private equity -- 13.4.1.4. IRR for investors |
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13.5. Case study 2: Metrics to assess the performance of an ongoing fund -- 13.6. Private equity funds performance -- Further reading -- Chapter 14: Taxation framework for private equity and fiscal impact for equity investors -- 14.1. Introduction -- 14.2. Fundamental role of taxation in private equity and venture capital -- 14.3. Taxation and equity investors: Lessons from theory and relevant models -- 14.3.1. Taxation on dividends, earnings, and capital gain -- 14.3.2. Fiscal incentive to startup and to incentivize R & amp -- D expenses -- 14.3.3. Fiscal incentive to increase leverage and/or equity -- 14.4. Taxation players: Investment vehicles, investors, companies demanding capital -- 14.5. Taxation features in Europe: A comparative analysis -- 14.5.1. Taxation in Italy -- 14.5.2. Vehicles: Taxation on dividends and capital gain -- 14.5.3. Investors: Taxation on dividends and capital gain -- 14.5.3.1. Legal entity -- 14.5.3.2. Private individuals -- 14.5.4. VBC: Mechanisms to affect startup expenses, R & amp -- D, and leverage ratio -- 14.5.4.1. Carry forward -- 14.5.4.2. Thin cap -- 14.5.4.3. Tax credit -- 14.5.4.4. Mark-down -- 14.5.4.5. Double income taxation -- 14.5.5. Taxation in France -- 14.5.6. Vehicles: Taxation on dividends and capital gain -- 14.5.6.1. Investors: Taxation on dividends and capital gain -- 14.5.6.2. VBC: Mechanisms to affect startup expenses, R & amp -- D, and leverage ratio -- Thin cap -- Tax credit -- Carry forward -- Carry back -- Mark down -- 14.5.7. Taxation in Germany -- 14.5.7.1. Vehicles: Taxation on dividends and capital gain -- 14.5.7.2. Investors: Taxation on dividends and capital gain -- Legal entity -- Private individuals -- 14.5.7.3. VBC: Mechanisms to affect startup expenses, R & amp -- D, and leverage ratio -- Carry forward -- Carry back -- Thin cap -- 14.5.8. Taxation in Spain |
| Summary |
Private Equity and Venture Capital in Europe: Markets, Techniques, and Deals, Third Edition introduces private equity, investments and venture capital markets while also presenting new information surrounding the core of private equity, including secondary markets, private debt, PPP within private equity, crowdfunding, venture philanthropy, impact investing, and more. Every chapter has been updated with new data, cases, examples, sections and chapters that illuminate elements unique to the European model. With the help of new pedagogical materials, this updated edition provides marketable insights about valuation and deal-making not available elsewhere. As the private equity world continues to undergo many challenges and opportunities, this book presents both fundamentals and advanced topics that will help readers stay informed on market evolution. -- Provided by publisher |
| Notes |
Includes index |
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Print version record |
| Subject |
Venture capital -- Europe
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Private equity -- Europe
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Business enterprises -- Europe -- Finance
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Investments -- Law and legislation -- Europe
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Business enterprises -- Finance
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Investments -- Law and legislation
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Private equity
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Venture capital
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Europe
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| Form |
Electronic book
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| Author |
Negri, Giulia, author.
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| ISBN |
9780323854016 |
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032385401X |
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0323858120 |
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9780323858120 |
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