J-Curve Exposure: Managing a Portfolio of Venture Capital and Private Equity Funds

Building on the success of the author’s previous book Beyond the J Curve:Managing a Portfolio of Venture Capital and Private Equity Funds, this work covers new and additional material and offers advanced guidance on the practical questions faced by institutions when setting up and managing a successful private equity investment programme. Written from the practitioner’s viewpoint, the book offers private equity and venture capital professionals an advanced guide that will make high return targets more realistic and sustainable.

Factors that can sometimes cause institutions to shy away from venture capital are the industry’s opaque track record, unclear valuations and risks, perceived lack of transparency as well as the significant entry barriers to overcome before tangible results show. These issues are all addressed in details with practical solutions to the problems. Among other topics J-Curve Exposure includes discussions of:

• Experiences with the adoption of the International Private Equity and Venture Capital Valuation Guidelines to address fair value under IFRS.
• Approaches for splitting and prioritizing distributions from private equity funds.
• Techniques for track record analysis and other tools to help limited partners in their due diligence.
• Approaches to dealing with uncertainty, the relevance of real options, and co-investments and side funds as advanced portfolio management techniques.
• Questions related to limited partner decision making fallacies and how to manage portfolios of VC funds.
• Securitization backed by portfolios of investments in private equity funds.

Real life case studies illustrate the issues relevant for the practitioner.