PE Partnership valuation
PE
(Senior Chimp, 19
Points)
on 11/3/11 at 12:37pm
What are some of the quantitative and qualitative ways you can value a private equity partnership as a whole given the limited amount of information available.
Lets say a UHNW client is looking to commit to a fund...





Not sure if I understand the
Not sure if I understand the question. If the partnership is doing fundraising now, and none of the commitments have been drawn, there's no value yet, but there may be a contingent liability since you have to pony up the money when the GP asks for it.
Are you talking about a investing in the management firm (ie the GP)?
Or maybe in a secondary-market LP interest for a fund that's drawn some of its commitments?
There have been many great comebacks throughout history. Jesus was dead but then came back as an all-powerful God-Zombie.
Sorry, my American is bad so
Sorry, my American is bad so I don't know how to phrase this best.
From a fund-of-funds perspective, how does a FoFs go about choosing the specific PE partnerships to invest in?
This is what I'm thinking so far...
Previous Fund performance - hit ratio analysis (maybe take out the top performing portfolio company to see if it's just one company holding up the whole fund...)
Benchmark returns against relevant indexes/etfs to look for abnormal returns
Profile of management team - backgrounds, deal sourcing, etc
Geographic exposure? currency exposure?
Analyze the competition - is the market saturated with many shops?
Macro view of the sector/country
Anything else I can add to the screening?