4/27/2006

Wharton Private Equity Review

In private equity, opportunity can come in the form of distressed companies, wind farms, rapidly developing regions like Asia, or even an artificial stone manufacturer. In this special report from the Wharton School, Wharton faculty and experts from private equity and venture capital firms comment on the investment trends that are shaping the industry. The table of contents from the report is reproduced below:

China or India: Which Is the Better Long-term Investment for Private Equity Firms?

The prospects for investment are strong in both China and India, according to Wharton faculty and industry experts. But the debate over which country is the better venue for investing is less important than knowing how the strengths and weaknesses of each nation would impact a specific investment.

The End of Oil? Venture Capital Firms Raise the Profile of Alternative Energy

Clean technology companies are hoping for blockbuster returns in the capital markets, and venture capital firms are fattening them up with equity infusions in preparation. Will the sector live up to its promise?

‘Early Matters’: Creating Value through Operations at Portfolio Companies

According to speakers at the 2006 Wharton Private Equity Conference, the most important elements of operational performance are selecting the right management team and driving returns through management incentives, tight monitoring and forward-focused strategies.

Bad News Is Good News: Distressed for Control Investing

2005 was a record year for distressed for control transactions, and Wharton faculty and private equity experts say “a growing wave” of bankruptcies is on the horizon, leading to what one fund co-founder calls “an extraordinary market” for distressed for control investors.

Limited Partner Roundtable: Outlook for Private Equity

Four leading limited partners discuss the convergence of private equity and hedge funds, distressed debt, changes in venture capital, and the outlook for general partners.

Case Study in Operations: Eldorado Stone

Graham Partner’s investment in Eldorado Stone is just the kind of situation in which operationsoriented firms can thrive, but not without certain risks, say industry experts. One key consideration: timing the exit.