Two and Twenty

How the Masters of Private Equity Always Win

By: Sachin Khajuria

Narrated by: Will Damron

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.”—Forbes

ONE OF THE BEST BOOKS OF THE YEAR: Next Big Idea Club

Private 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.

Critic reviews

“A true insider’s account of the industry.”—Fortune

“It cannot be stressed enough how much [Two and Twenty] is needed. . . . Private equity investors are not overpaid, nor are they avoiding taxes on our backs. In reality they’re heroes. Read Sachin Khajuria’s excellent and essential book to understand why.”—Forbes

“Khajuria believes private equity deserves to be defended. . . . [Deal] sketches supply helpful information about the structure of private equity funds. . . . The vignettes enable Khajuria to show the wide range of industries and transactions in which private equity now operates. . . . He suggests that private equity is too big and has insinuated itself too deeply into American life to be stopped. That may be the book’s most persuasive point.” —The Wall Street Journal

“[Two and Twenty is] an excellent primer on the industry, from how things work at the very top to the nuts and bolts of its vast influence around the globe.”—Bloomberg Businessweek

“[Sachin Khajuria] demystifies the private equity world.”—Financial Times

well written ans motivational

fascinating look at the inside of the PE investment sector. however one sided, not much objectivity when it comes to the utility of the sector and its externalities... which would have been interesting too to get an understanding.

Really just an infomercial for private equity

This is a primer explaining what the private equity business is all about. The author is a big advocate of the industry and doesn’t get into any of the more serious policy issues associated with the sector until the last few pages of the book, and then it is only to identify them, not discuss them in any detail. I tried to think about who would find a book useful. I think that if you were a student trying to decide whether to seek a job in private equity, this might be worth reading. Other than that group, I am hard-pressed to think of any category of people for whom it would be useful. There does not appear to be any original research reflected in the book and no real names are given. It is all hypothetical and fictional, although clearly based on real life situations. To his credit, the performer has done an excellent job of dramatizing the book.

A candid perspective of Private Equity and Private Capital from an insider

Loved the examples of how PE firms construct deals and investment cases.
Liked the admission that there will be some losses, but the good firms will have a stronger win rate
The narrator was good and I did not put the book down from start to finish

Disappointed by lack of real examples and facts

The author uses hypothetical sketches to walkthrough a series of private equity deals. Although the sketches are modeled on real life case studies, they give the whole project a bit of an artificial and unreal feel.

In my view, the whole book would be much more compelling if anchored on real examples and details. With only sketches, it’s harder to understand if the book’s glowing profile of private equity is justified or if it’s inflated.

It’s also impossible to fact-check or critically explore the examples and learn more about them by checking contemporary news stories or other sources.

Somewhat disappointing.

Great book!

This was one of the best books on how private equity works that I’ve listened to. Definitely a must read !