It's a kind of magic
Welcome to the Elephant's page of the BOOST private equity firm!
As you may observe, BOOST delivers returns that are much higher than the market comparables. We outperform the market and all top-tier high performers from our peers. That's why we often get asked how we do that and what tools we use to manage the value of portfolio companies, how to evaluate businesses, how to manage large-scale cross-border projects, why we don't use debt, how to run legally compliant private equity business that delivers profit, and how to deal with all this toxic stuff which we have on our balance. We attest that we use black color for our design, however, not black magic. And we do sustainable, compliant, white, transparent business. In response, we would like to clean up your doubts by creating this handy list shared with you. These are all things that we use daily and love. And they are explaining how we make money and generate our high returns. This page is a work in progress. We will add materials and update them regularly. Follow that to watch trendy posts and new articles. We eliminate all communications on social media, so our website the only place from where you can get the materials and publications.
Essential things to run your portfolio
In the private equity business, there is always much data that you need to have for assets management and deals making. It concerns deals valuation, fund management, business organization, statistics, and much other stuff. We share the sources of information, that we used to utilize for our daily operations, valuation, strategic development. Also, we give you some links that may be useful for you. These are the sources of information that we use in 99% of the cases. We don't read secondary analytical reports and don't buy any marketing or IB reports. We always do our data collection and analysis. Why? Below is the answer.
1. Conflict of expertise.
Analytical reports are prepared by analysts, not by private equity managers. The mindset, background, experience, and logic of a portfolio manager at the PE firm are very different from an analyst. Data that are important for you are useless for analysts. Analysts can reshape the focus of the analysis. That makes the data and the conclusion opposite to the real situation. And opposite to the right decision as well.
2. Conflict of interest.
Banks prepare their analytical reports considering in the researches those companies who are the clients of these reports-makers. The conclusion is simple - the recommendation buy, hold or sell (which is issued to the market and commented on public media) is made based on an engagement letter signed between the bank (or expecting to sign that), prepared the report, and the client. The same we can say about reports of consulting companies and rating agencies. We solve this problem simpler. We don't read them.
3. Low data reliability.
Internet is the largest source of data and information. Hence, it was never a trustful data provider. You never know the reference source of the data for the prepared analytical report bought or downloaded. However, in the vast majority of the cases, these are the data from open internet sources and sometimes previously gathered by somebody else. These "reports" study the internet, not the market. You don't want to make your decision on well-blended trash, don't you?
PE industrial statistics, peers, benchmarks
BOOST possesses industrial insights which we are going to publish and disclose as soon as our сomprehensive knowledge base transformed into clear concise communication and well-designed form. However, we are not the whole market, and we are not the representative sample. We share the following "must-have" sources of raw data that you may find quite helpful for your decision-making process. They are necessary if you are working in PE or VC industries.
PitchBook is a financial data and software company with offices in London, New York, San Francisco, and Seattle. Serving clients in 19 languages and provides thousands of global business professionals with comprehensive data on the private and public markets, helping discover and execute opportunities with confidence. PitchBook covers the vast majority of PE funds that deserving have the name PE or VC fund. If your company is not on the list - you are not a PE firm. Or maybe you are a top-secret fund. Subscribe and provide Pitchbook with your data.
EMPEA is the global industry association for private capital in emerging markets. An independent, non-profit organization, the association brings together 300+ firms—including institutional investors, fund managers, and industry advisors—who manage more than USD5 trillion in assets across 130 countries. EMPEA supports its members globally through authoritative research and intelligence, investor meetings, education, and advocacy. They publish free data and reports. The advanced statistics are available only for members. Membership is rather expensive.
Investors rely on Crunchbase data to track portfolio companies and investment opportunities. Crunchbase is directly related to TechCrunch - internet media writing about startups and venture investments, especially in the IT and technology sector. If you have a tech startup, but TechCrunch didn't write about it - you don't have a tech startup. You can add into Crunchbase your company, yourself if you are a founder and fellow organizations that are interesting for you. There are free and premium versions.
TechCrunch reports on the business of technology, startups, venture capital funding, and Silicon Valley.
Market data: public securities, indexes, commodities
This expensive professional solution is vital for fundamental analysis, deals and business valuation, management decisions, and scenario modeling. Hence, there are some problems with data download for further utilization. Bloomberg is the essential data source for an investment modeling process - beta calculation, multiples, comparable benchmarks.
Simple, fast access to the high-level market data. Enough for the express decision-making process and covers 80% of daily PE management. We use them basically to understand the fair stock price and make an assumption about overpricing. There are all data essentials - EPS, current stock price, multiples, valuation, high-level financials, and quite detailed ownership structure.
Aswath Damodaran is a Professor of corporate finance and valuation at the Stern School of Business at New York University. On his website, you may find much helpful information for your calculations and financial modeling. Data include breakdowns by emerging/developed countries and by geography. We use these data as a redline to test/match our assumptions. There is much detailed, well-structured information about multiples, margins, TSR, ROE, beta, capital structure. Here you may find most of the initial assumptions that you need for your financial modeling at a basic level.
We use data of stock exchanges to get a rough overview of stock movement trajectory during a definite period but first and foremost for the news explaining the concrete stock movement. So if you do not have Bloomberg, use stock exchange data but keep in mind that it may take a little bit more time to download all information necessary for you. Below are the links to the stock exchanges covering the majority of business activity.
The Private Equity Institute was founded in 2009 to provide a forum to promote research, education, and networking, in private equity. Oxford Saïd ran its first Private Equity elective in 2000 and introduced the Private Equity Forum in 2006. At the moment, SBS is the only educational center combining sound theoretical knowledge with scientific R&D in a very opaque private equity industry.
Tim Jenkinson is one of the leading authorities on private equity, IPOs, and institutional asset management. Tim is renowned for his ability to collect critical, previously inaccessible data by building strong links with institutional investors, regulators, and other players in the financial industry. His research is widely quoted and has been published in the top academic journals. Tim is Director of the Oxford Private Equity Institute and one of the founders of the Private Equity Research Consortium.
Ludovic Phallipou is a professor of financial economics at the University of Oxford, Saïd business school. He is the author of the bestseller "Private Equity Laid Bare," and professor of Financial Economics at Saïd Business School, University of Oxford. He specializes in private market investments focusing on fee tracking, interest alignment, and return benchmarking. Named as one of “The 40 Most Outstanding Business School Profs Under 40 in the World” in 2014, and as one of the 20 most influential individuals in private equity in Europe in 2016, Ludovic has strong links with senior practitioners in the industry.
PE industrial market makers
We don't read analytical reports. We are watching on the investment funds that have PE segments. We watch on these funds, but we do not copy/paste what they are doing. We take into consideration their activities.
VC industrial market makers
Global asset management
These funds are not private equity funds in their pure form. Hence, they manage a variety of different funds - PE, REIT, fixed-income funds. Also, they are investing abroad and can affect the public securities market.
Global economy and industrial statistics
The best sources of information about the industry and the global economy are governmental organizations that gather the statistics and process this. For local data, visit governmental websites per country.
Follow this section and our blog to learn how PE organize themselves, types of PE/VC organizational structure, which competencies you need to maintain in-house, which competencies you can easily outsource, and many other aspects of fund organization.
Policies and procedures
Follow this section to get the templates of operational, legal documents, templates of financial models, scenario analysis, pitch decks, and others.
If you are running a PE/VC fund and looking for LPs or plan to follow market trends, register your company on Crunchbase and Pitchbook platforms.
Local website for your country coming soon!
This is a list in progress. Follow us to see what's new here. Where to buy: Amazon, Waterstones.
1. The Alternative Oxford Private Equity Dictionary Paperback by Ludovic Phalippou
2. Private Equity Laid Bare by Ludovic Phalippou
3. Institutional Investors and Equity Markets: On mutual fund liquidity management, performance of private equity funds, and the value premium by Ludovic Phalippou
4. Barbarians At The Gate: The Fall of RJR Nabisco by Bryan Burrough, John Helyar
5. King of Capital: The Remarkable Rise, Fall, and Rise Again of Steve Schwarzman and Blackstone by David Carey, John E. Morris
6. The Masters of Private Equity and Venture Capital: Management Lessons from the Pioneers of Private Investing - Robert Finkel, David Greising
7. By Andrew Ross Sorkin Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save the Financial System - And Themselves (1st Edition) by Andrew Ross Sorkin
8. Leveraged Buyouts: A Practical Guide to Investment Banking and Private Equity + Website (Wiley Finance) by Paul Pignataro
9. Valuation: Measuring and Managing the Value of Companies (Wiley Finance) by McKinsey & Company Inc. (Author), Tim Koller, Marc Goedhart, David Wessels
10. Investment Valuation: Tools and Techniques for Determining the Value of any Asset, University Edition (Wiley Finance) by Aswath Damodaran
11. Private Equity Funds: Formation and Operations Kindle Edition by Stephanie R. Breslow, Phyllis A. Schwartz
12. Private Equity: History, Governance and Operations (Wiley Finance) by Harry Cendrowski, James P. Martin, Louis W. Petro, Adam A. Wadecki
13. Private Equity: The Professional Investor's Handbook: 495 (Wiley Finance) by Kocis, Bachman IV, Long III
14. Inside Private Equity: Thrills, spills and lessons by the author of Nothing Ventured, Nothing Gained by Bill Ferris
15. Venture Capital 101 by Bill Snow (2015-05-29) by Bill Snow (Author)
16. Private Equity Secrets Revealed: From the Coalface by Peter Cartier (Author)
17. The New Tycoons: Inside the Trillion Dollar Private Equity Industry That Owns Everything: 163 (Bloomberg) by Jason Kelly
18. From Zero to Sixty on Hedge Funds and Private Equity 3.0 Paperback – 21 Aug. 2015 by Jonathan Stanford Yu (Author)
19. Private Equity Operational Due Diligence: Tools to Evaluate Liquidity, Valuation, and Documentation + Website: 731 (Wiley Finance) by Jason A. Scharfman
20. Private Equity: History, Governance, and Operations:738 (Wiley Finance) by Louis W. Petro (Author), James P. Martin, Harry Cendrowski, Adam A. Wadecki
21. Emerging Markets: A Practical Approach: 134 (Wiley Finance) by Pereiro
Our blog is dedicated to industrial insights into PE daily activities and to express our opinion on market trends meaningful for the global economy and private equity industry.