Two and Twenty: How the Masters of Private Equity Always Win

"The first true insider's account of private equity, revealing how the world's most aggressive and successful financial animals spot opportunities and win deals, and the mindset it takes to thrive in this high-stakes, rapidly evolving and often misunderstood field. Private equity was once an investment niche, with the industry managing just $500 billion. No more. Today that number exceeds $7 trillion for all forms of private capital, with leading firms directing more money than some countries' entire GDPs. The industry has overtaken investment banking-and well-known names like Goldman Sachs, JP Morgan, Morgan Stanley, and Citi-as the premier destination for ambitious financial talent, as well as the investment dollars of some of the world's largest pension funds, sovereign wealth funds, and endowments. At private equity's pinnacle are the firms' partners, happy to earn "two and twenty"-that is, a flat yearly fee of 2 percent of a fund's capital, on top of 20 percent of the investment spoils. The private equity industry has succeeded in near-stealth-until now. In Two and Twenty, Sachin Khajuria, a former partner at the elite private equity firm Apollo, takes an unapologetic yet critical look in the mirror, giving readers an unprecedented view inside an opaque and rapidly expanding engine of the global economy. From how to "think like a principal, not an advisor" to "respond, don't react," Khajuria brings the habits of the industry's leading practitioners to life through a series of vivid and unvarnished deal sketches, illuminating how their traits, culture and temperament lead to consistent market-beating returns. Two and Twenty is an unflinching examination of the mindset that drives the most influential and least understood center of financial power anda call to action for people to start paying closer attention to a key industry underpinning global retirement systems-a field that has become a punching bag for some and the source of envy for countless others"--
In this first true insider’s account of private equity, a former partner at the elite private equity firm Apollo examines the mindset that drives the most influential and least understood center of financial power.
The first true insider’s account of private equity, revealing what it takes to thrive among the world’s hungriest dealmakers“Brilliant . . . eloquently takes readers inside the heroic world of private equity . . . (an] essential read.”—ForbesONE OF THE MOST ANTICIPATED BOOKS OF THE SUMMER—BloombergPrivate equity was once an investment niche. Today, the wealth controlled by its leading firms surpasses the GDP of some nations. Private equity has overtaken investment banking—and well-known names like Goldman Sachs and Morgan Stanley—as the premier destination for ambitious financial talent, as well as the investment dollars of some of the world’s largest pension funds, sovereign wealth funds, and endowments. At the industry’s pinnacle are the firms’ partners, happy to earn “two and twenty”—that is, a flat yearly fee of 2 percent of a fund’s capital, on top of 20 percent of the investment spoils.Private equity has succeeded in near-stealth—until now. In Two and Twenty, Sachin Khajuria, a former partner at Apollo, gives readers an unprecedented view inside this opaque global economic engine, which plays a vital role underpinning our retirement systems. From illuminating the rituals of firms’ all-powerful investment committees to exploring key precepts (“think like a principal, not an advisor”), Khajuria brings the traits, culture, and temperament of the industry’s leading practitioners to life through a series of vivid and unvarnished deal sketches.Two and Twenty is an unflinching examination of the mindset that drives the world’s most aggressive financial animals to consistently deliver market-beating returns.