The Future of Private Equity

The private equity industry is at a cross-roads. In the easy money years between 2004 and 2008, it was awash with investment, debt was easily obtained and some rash, over-leveraged deals were done by the so-called "mega buyout" funds. Today, fund managers are dealing with the legacy of that era, while also figuring out how best to secure new investment and make attractive returns in the age of deleveraging. Many firms are succeeding, sometimes spectacularly, in both developed and emerging markets. Some have developed innovative new business models, while others have reinvented the old.

This book contains exclusive interviews with the leaders of many of the world's most successful and innovative funds. These include: Steve Klinsky and Ajit Nedungadi of US growth investors New Mountain Capital and TA Associates; Jon Moulton and Wol Kolade of the British turnaround and growth specialists Better Capital and ISIS Equity Partners; Niten Malhan of Warburg Pincus' Indian operation; Derek Sulger, an Anglo-American who transitioned from setting up telecoms businesses in China to founding Lunar Capital, which backs indigenous entrepreneurs; pan-emerging market specialist Actis and innovative investors in Africa and the Middle East such as Citadel Capital's Hisham El-Khazindar and Abraaj's Mustafa Abdel-Wadood.

These in-depth interviews tease out issues such as how private equity managers can best create enterprise value and out-perform public markets without returning to pre-crisis levels of leverage, techniques for differentiating a firm's capital, the sustainability of private equity in emerging markets, the role of the industry in low-income countries and alternatives to the established limited partnership governance model.

The Future of Private Equity: Beyond the Mega Buyout is essential reading for anyone working in or with the private equity industry, anywhere in the world.