INSEAD Library

Includes index

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The Masters of Private Equity and Venture Capital Contents ACKNOWLEDGMENTS ix INTRODUCTION 1 Robert A. Finkel Prism Capital PART I: PRIVATE EQUITY 1 METHOD OVER MAGIC: THE DRIVERS BEHIND PRIVATE-EQUITY PERFORMANCE Steven N. Kaplan University of Chicago Booth School of Business 2 OPERATING PROFITS: USING AN OPERATING PERSPECTIVE TO ACHIEVE SUCCESS Joseph L. Rice III Clayton, Dubilier and Rice 3 SKIN IN THE GAME: INVESTING IN SERVICE BUSINESSES F. Warren Hellman Hellman and Friedman LLC 4 THE PARTNERSHIP PARADIGM: WORKING WITH MANAGEMENT TO BUILD TOWARD SUCCESS Carl D. Thoma Thoma Bravo, LLC and predecessor firms Golder Thoma and Co.; Golder Thoma Cressey Rauner, LLC; and Thoma Cressey Bravo, Inc. 5 BEYOND THE BALANCE SHEET: APPLYING PRIVATE-EQUITY TECHNIQUES TO NOT-FOR-PROFIT WORK Jeffrey Walker JPMorgan Partners/Chase Capital Partners 6 THE INSIDE GAME: MANAGING A FIRM THROUGH CHANGE AFTER CHANGE John A. Canning, Jr. Madison Dearborn Partners PART II: VENTURE CAPITAL 7 THE ENTREPRENEUR AND THE VENTURE CAPITALIST Garth Saloner Graduate School of Business, Stanford University 8 PIONEER INVESTING: TAKING VENTURE CAPITAL FROM SILICON VALLEY TO BANGALORE AND BEYOND William H. Draper III Draper Richards L.P. 17 31 47 73 95 117 141 151 9 CHANGE FOR THE BETTER: MANAGING FOR PROFIT AS MARKETS AND TECHNOLOGY CHANGE C. Richard Kramlich New Enterprise Associates 10 BEYOND THE IVORY TOWER: TAKING LABORATORY RESEARCH TO MARKET Steven Lazarus ARCH Venture Partners 11 FOSTERING INNOVATION: PEOPLE, PRACTICES, AND PRODUCTS MAKE NEW MARKETS Franklin "Pitch" Johnson, Jr. Asset Management Company 12 RISK, THEN REWARD: MANAGING VENTURE INVESTMENT IN RUSSIA Patricia M. Cloherty Delta Private Equity Partners, LLC APPENDICES: TOOLS OF THE TRADE 1 CHECKLIST FOR EVALUATING INVESTMENT OPPORTUNITIES Franklin "Pitch" Johnson, Jr. 2 GUIDELINES FOR TRANSFORMING RESEARCH INTO COMMERCE Steven Lazarus 3 WHAT WE WANT IN A CEO Joseph L. Rice III 4 PORTFOLIO COMPANY VALUATION TEMPLATE Patricia M. Cloherty 5 "WATERFALL ANALYSIS": THE STRESS TEST FOR POTENTIAL PORTFOLIO COMPANY John A. Canning, Jr. 6 MANAGING DIRECTOR SELECTION CRITERIA John A. Canning, Jr. 7 PERFORMANCE METRICS FOR MILLENNIUM VILLAGES Jeffrey Walker 8 "CARLISMS": KEY PRACTICES FOR PRIVATE-EQUITY INVESTORS Carl D. Thoma INDEX 301 173 195 221 243 271 273 277 279 283 289 293 297