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: 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
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