Money Games - 2nd Edition by Weijian Shan (Paperback)

About the Book

"To private equity investors, the making of a deal, no matter how big, complex or high profile, is only the beginning. The success or failure of the investment can only be ascertained when the investor fully exits. In between, teams of private equity professionals expend great amounts of energy and resources to create value with the acquired company, to transform it and to grow it. To exit from a big investment is often as complicated a deal as the initial acquisition -- if not more so. Any mistake in this deal cycle can lead to disaster and financial financial losses, erasing whatever satisfaction the closing of the transaction brought years prior, and possibly ending the careers of the dealmakers themselves. A seasoned private equity investor knows that in every deal, he is walking on thin ice with a heavy load on his shoulders, taking great care with every step to avoid falling into darkness. He can celebrate only after reaching the far shore and delivering his load to his investors."--

Book Synopsis

Money Games is a riveting tale of one of the most successful buyout deals ever: the acquisition and turnaround of what used to be Korea's largest bank by the American firm Newbridge Capital.

Full of intrigue and suspense, this insider's account is told by the chief architect of the deal itself, the celebrated author and private equity investor Weijian Shan. With billions of dollars at stake, and the nation's economic future on the line, Newbridge Capital sought to become the first foreign firm in history to take control of one of Korea's most beloved financial institutions.

In a proud country still reeling from a humiliating International Monetary Fund bailout in the Asian Financial Crisis, Newbridge Capital had to muster every ounce of skill, determination, and patience to bring the deal to closing.

Shan takes readers inside the battle to win control of the bank--a delicate, often exasperating process that meant balancing the goals of Newbridge with those of the government, bank employees, and Korea's powerful industrial titans.

Finally, the author describes how Newbridge transformed and rebuilt the struggling bank into a shining example of modern banking--as well as a massively profitable investment. In the secret world of private equity, few buyouts have been written about with such clarity, detail, and insight--and none with such completeness, covering not only the dealmaking but also the transformation and eventual exit of the investment.

For anyone who has ever wondered how private equity investors strike bargains, turn around businesses, and create immense value--or anyone interested in a captivating story of high-stakes money-making--this book is a must-read.

From the Back Cover

Praise for MONEY GAMES

"Dealmaker Weijian Shan has given us the full story of one of the most profitable acquisitions and successful turnarounds of the Asian Financial Crisis, as well as intimate and valuable personal insights. I recommend it for everyone who has ever wondered how the acquisitions we read about are accomplished."
--Howard Marks, Founder and Co-Chairman, Oaktree Capital Management; author, Mastering the Market Cycle: Getting the Odds on Your Side

"Weijian Shan's story of a banking takeover launched in the depths of the Asian Financial Crisis is a great yarn, told with intelligence and wit. But it's also the best account I've read of the daring and sheer tenacity it takes to get such a massive deal done--qualities that have made Shan one of Asia's most respected investors."
--Steven Rattner, Chairman and CEO, Willett Advisors; lead advisor (a.k.a. the "Car Czar"), Presidential Task Force on the Auto Industry, 2009; author, Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry

"Money Games is the anatomy of one of the most iconic transactions of the Asian Financial Crisis and its aftermath. Shan has created one of the most candid, compelling, and insightful accounts of a crisis whose scars still linger years later. It is also a salutary reminder that investment is not a zero-sum game: a good deal, well-executed, can have benefits for investors, industries, and taxpayers alike."
--Henny Sender, Chief Correspondent, International Finance, Financial Times

"Money Games is more than just a clear-eyed retelling of a major take-over and corporate turn-around tale. It's a story about how the worlds of business, politics, and culture collided at a critical moment in history and a treasure trove of deal-making lessons learned from the trenches."
--Bruce Kogut, Sanford C. Bernstein & Co. Professor of Leadership and Ethics, Columbia University

"'I had been up for 43 continuous hours . . . I did not feel tired. I was exhilarated . . .' This sentiment captures the extraordinary tenacity and stamina Shan and his team needed to win this landmark investment and subsequent world-class turnaround. Shan's detailed narration brings the reader right into the heart of a world we rarely see beyond the headlines. An essential book for anyone involved in private investment, and a fascinating read for curious outsiders as well."
--Mark Machin, President and CEO, Canada Pension Plan Investment Board

"Weijian Shan gives readers a fascinating behind-the-scenes tour of one of Asia's most politically sensitive and economically complex bank rescues by a foreign private equity firm, full of dramatic personalities, negotiating tricks, and financial insight. Money Games is a must-read for anyone who wants to learn what it takes to close a deal, rescue a company, and then exit with a profit--anywhere in the world."
--Pete Sweeney, Asia Economics Editor and Columnist, Reuters Breakingviews

"Weijian Shan succeeds in telling the story of a highly complex, multidimensional transaction in an incredibly accessible style without sacrificing any of the detail and educational value. Along the way, the reader gets a fantastic account of private equity and how the buyout world works via an exciting deal with a happy ending. I can't wait to see the movie!"
--Joshua Rosenbaum, Managing Director and Head of the Industrials and Diversified Services Group, RBC Capital Markets; co-author of the bestselling Investment Banking and Little Book of Investing Like the Pros

About the Author

WEIJIAN SHAN is Chairman and CEO of PAG, a leading private equity firm. Previously, he was a partner at the private equity firm TPG and co-managing partner of TPG-Asia (formerly known as Newbridge Capital), a managing director at JP Morgan, and a professor at the Wharton School. He holds an MA and a PhD from the University of California, Berkeley, and an MBA from the University of San Francisco. He is the author of the bestselling memoir Out of the Gobi: My Story of China and America.