CFO Bookshelf
The Private Equity Playbook Keeps Getting Better
Oct 5, 2024
Adam Coffey, author of 'The Private Equity Playbook,' shares his insights as a former CEO in the private equity realm. He discusses the growth of private equity and introduces his intriguing 70-30 rule for success. With the release of his updated book, Adam highlights the importance of committed capital and offers a humorous locksmith story. The conversation also touches on investment returns, explaining key metrics like IRR and MOIC while emphasizing the need for innovation and strategic thinking in this ever-evolving landscape.
46:22
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Quick takeaways
- The second edition of 'The Private Equity Playbook' highlights the sector's significant growth, showcasing an increase from 5,000 to 8,000 firms and rising investments from $2.8 trillion to $6 trillion.
- The 70-30 rule encourages entrepreneurs to take 70% of their sale proceeds while reinvesting 30% back into the business, optimizing wealth diversification and potential growth under private equity.
Deep dives
Importance of Updated Content in Private Equity
The second edition of 'The Private Equity Playbook' includes significant updates that reflect the changing landscape of private equity over recent years. The author highlights the growth of the private equity sector, noting an increase from approximately 5,000 firms to around 8,000, which correlates with total investments rising from $2.8 trillion to $6 trillion. This surge underscores the effectiveness of private equity as an investment strategy, particularly as it continues to provide returns that surpass typical stock market performance. Incorporating fresh insights, the author aims to keep the book relevant and useful for both practitioners and academic settings.
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