Tuesday, April 19, 2016

Value Creation 2.0 – A Framework for Measuring Value Creation in Private Equity

ZEISBERGER Claudia, WHITE Bowen, PRAHL Michael
Read the working paper
INSEAD Working Paper 2016/27/EFE/DSC

This report focuses on the question of value creation in private equity and presents a framework to clearly identify the sources of return and operational value creation by the GPs in PE investment.
The framework - IVC 2.0 - deconstructs value creation across various financial and operational drivers and isolates value created through capital structure re-engineering, industry operating performance, and company-specific Alpha.