[The Typing Baker] Secrets of Private Equity Investment and Management

There is a book that deals with the work of private equity funds, which still feels somewhat unfamiliar to the general public, in an easy and entertaining way. "Secrets of Private Equity Investment and Management" is a book filled with humor and knowledge that even those who know nothing about the investment banking (IB) industry can quickly immerse themselves in.

When you think of private equity funds, the typical image that comes to mind is usually corporate raiders who acquire struggling companies at low prices, then lay off large numbers of employees and dismantle the business to sell off the parts.

In fact, among private equity funds, "Vulture Capital" makes money in that way. However, this is only a small part of the various forms and methods of private equity funds.

Typical private equity (PE) acquires management control of companies or invests in new businesses to increase the value of those companies, then generates profits by selling shares or the entire company.

The business of private equity involves revitalizing struggling companies by strengthening their fundamentals and improving efficiency in inefficient business operations to normalize management, then selling the enhanced companies or business units to larger institutions or corporations for substantial profits.

Naturally, private equity managers need the insight to recognize the intrinsic value of companies targeted for acquisition and the management capability to realize that value. Alternatively, they require the talent management skills to select and appoint people with such capabilities, as well as the ability to persuade and negotiate with counterparties during acquisition and sale. Specialists in management and negotiation?that is the true identity of private equity.

The author, Kim Taeyeop, CEO of Apalma Capital Korea, has acquired, merged, and sold companies of various fields and sizes in the private equity industry for nearly 20 years. He joined the private equity industry as an early member of Shinhan Private Equity. From early 2008, he worked at Standard Chartered PE's Hong Kong office, and in 2019, he acquired shares from SC Bank to become independent as Apalma Capital, investing in private equity across Asia, the Middle East, and Africa. He shares the investment and management knowledge he has acquired, as well as know-how on forming management teams and selecting talent, in this book.

Private equity is more deeply embedded in our lives than we think. It covers all areas of daily life?from what we eat, ride, wear, and apply, to what we listen to, the phones we look at, the computers we use, the semiconductors inside them, and even the waste and garbage we discard every day. Companies produce and sell all the products and services we consume, and private equity buys and sells those companies. No company, regardless of country or size, is free from the view of private equity.

The book covers a wide range of topics including how to find and nurture suitable companies for investment, how to remove bubbles and realistically evaluate company value, bolt-on strategies to increase corporate value, effective use of advisory firms, how private equity profits from declining industries, discovering investment insights, selecting, utilizing, and replacing appropriate management, qualifications and qualities needed for those who want to work in private equity, and how to join a private equity-invested company at the C-level.

Secrets of Private Equity Investment and Management | Written by Kim Taeyeop | Seikorea | 383 pages | 27,000 KRW