Value Creation 2.0 – A Framework for Measuring Value Creation in Private Equity

Abstract

This report focuses on the question of value creation in private equity and presents a framework to clearly identify the sources of return and operational value creation by the GPs in PE investment.The framework - IVC 2.0 - deconstructs value creation across various financial and operational drivers and isolates value created through capital structure re-engineering, industry operating performance, and company-specific Alpha.