DR. STEFAN W. HEPP, a finance veteran since the late 1980s, started his career at Salomon Brothers and Morgan Stanley, where he served on Bank Morgan Stanley's Management Committee before he founded and led SCM Strategic Capital Management, a global private markets investment firm with about ten billion dollars in assets. After SCM was acquired by Marsh & McLennan Company, he became the Global Business Leader for Private Markets at Mercer. He serves on the boards of several financial institutions. Stefan has been a consultant for international organizations such as the World Bank and the American Enterprise Institute. He received his Ph.D. in Economics from the University of St. Gallen and an MBA from the University of Chicago Booth School of Business, where he also teaches in the full-time MBA program.

Abbreviations ix

Introduction 1

Part I The Beginning 9

Chapter 1 Funding Private Enterprise 11

Chapter 2 Enterprise Financing in the USA from WWII to the 1960s 67

Chapter 3 How Silicon Valley Came to Be 77

Chapter 4 US Private Equity During the 1960s and 1970s 111

Part II Booms and Busts 157

Chapter 5 Private Equity During the 1980s 159

Chapter 6 The 1990s: Dotcom Boom and Bust 193

Chapter 7 A Private Markets Boom Between Two Crises 261

Part III Becoming Indispensable 355

Chapter 8 The GFC and the Surge of Private Markets 357

Chapter 9 Responding to Shifting Dynamics: Intermediaries, VC, and Growth Financing 435

Chapter 10 Buyouts, Private Debt, and Real Assets During the Post-GFC Boom 517

References 607

Acknowledgments 671

About the Author 675

Index 677