【正文】 本科畢業(yè)論文外文原文 外文題目： Private Equity 出 處： Investment Banking,2020:1943,DOI:6542 作 者： Professor Giuliano Iannotta 原 文： 1. Introduction One may wonder why a book about investment banking includes a chapter on private equity. I can provide two different answers. First, private equity funds are increasingly important clients of investment banks. Fruhan (2020) reports that private equity firms account for about 25% of total revenues for major investment banks. In 2020 about 20% of total US Mamp。As volume was related to private equity. In Germany the percentage was even higher (about 35%). In the 2020–2020 period out of the 701 US IPOs about 70% were private equity backed. Second, investment banks are increasingly important players of the private equity industry. Virtually all major investment banks manage some private equity funds. For example, Morrison and Wilhelm (2020) reports that Goldman Sachs has more capital invested in private equity than any other private equity player. These two reasons also explain the increasing mobility of human resources from investment banks to the private equity industry. This chapter aims at analyzing the main technical aspects of the private equity business. The chapter proceeds as follows. Section provides a classification of the private equity activity. Section analyzes the agreement between the investors, who put the money, and the professionals who manage that money. Section describes how to measure the performance of private equity funds. Section summarizes the main features of the term sheet that regulate private equity investments. Sections and illustrate the valuation methods used by private equity professionals to decide about their investments. Section concludes. Within the private equity industry it is possible to classify two main areas: (a)venture capital (VC) and (b) buyout. The key feature defining VC is expected rapid “internal growth” of the backed panies: that is proceeds are used to build new business, not to acquire existing business. The VC industry can be further broken down into: (a) earlystage, (b) expansionstage, and (c) latestage. Earlystage investments include everything through the initial mercialization of a product. A pany might not even be existent yet. Within the early stage two kinds of investments are usually identified: (a) seed investments through which a small amount of capital is provided to prove a concept and to qualify for startup financing。 (b) startup investments, aimed at pleting the product development, market studies, assembling key management, developing a business plan. Truly early stage investments are generally financed by “angels” rather than venture capitalist. Angels are wealthy individuals who, differently from venture capitalists, use their own money and are not formally organized. Megginson (2020) reports that less than 2% of VC investments are truly earlystage. Expansion investments finance fixed and working capital. The pany may or may not be showing a profit. Finally, at late stage, fairly stable growth should be reached. Again, it may or may not be profitable, but the likelihood of profit is higher than in previous stages. Moreover, at this stage a plausible exit should be visible on the horizon. Buyout investing is the largest