Introduction to Private Equity -

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)

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PE Circle

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

PE is about buying and selling business.

Steve Schwarzmann of Black Stone.

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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)

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Equity Office

Why cannot the Equity Office sell themselves?

• Reputation/competitors/tax issues

Any bubbles?

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