Sebastien Canderle is a private capital advisor. He has worked as an investment executive for multiple fund managers. He is the author of several books, including The Debt Trap and The Good, the Bad and the Ugly of Private Equity. Canderle also lectures on alternative investments at business schools. He is a fellow of the Institute of Chartered Accountants in England and Wales and holds an MBA from The Wharton School.
The essence of maximizing the internal rate of return (IRR) lies in the total amount of leverage contracted to finance a transaction.
The performance of alternative asset managers is encapsulated in the formula: Wealth = Controls + Economics. Here, we outline the economics component of the equation.
While analytical judgment is considered universal in science, in finance investment decisions are derived from mental heuristics.