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

30 Pages Posted: 20 Apr 2016

Date Written: April 19, 2016

Abstract

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.

Keywords: Private Equity, LPs, GPs, Value Creation, Return, Risk, Sources of return, PE Funds

Suggested Citation

Zeisberger, Claudia and White, Bowen and Prahl, Michael, Value Creation 2.0 – A Framework for Measuring Value Creation in Private Equity (April 19, 2016). INSEAD Working Paper No. 2016/27/EFE/DSC, Available at SSRN: https://ssrn.com/abstract=2766896 or http://dx.doi.org/10.2139/ssrn.2766896

Claudia Zeisberger (Contact Author)

INSEAD - Singapore ( email )

Singapore

Bowen White

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

Michael Prahl

INSEAD - Singapore ( email )

Singapore

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