Alternative InvestmentsModule 2 of 3

Private Capital: Equity and Debt

Concepts

Formulas

Decisions

Quiz Questions

Key Concepts

4 concepts covered in this module.

Early-stage funding: seed, Series A/B/C. High risk, high return. J-curve: negative returns early, positive later.

Acquire company using significant debt. Improve operations, sell for profit. Target: stable cash flows, undervalued assets.

Direct lending, mezzanine financing, distressed debt. Higher yields than public bonds. Less liquid.

IPO, sale to strategic buyer, secondary sale, recapitalization. Time horizon typically 5-10 years.

Visual overview of how concepts connect in this module.

Private Capital

Private Equity

Venture capital

Growth equity

Leveraged buyouts

Exit strategies

Private Debt

Direct lending

Mezzanine

Distressed debt

Higher yield, less liquid

J-Curve

Negative early returns

Fees and investments

Returns in later years

Vintage year matters

This module has 4 flashcards and 2 quiz questions to test your knowledge.

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Alternative Investment Features, Methods, and Structures

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Real Estate, Infrastructure, and Hedge Funds