FINC-575 Private Equity
Fall for 2016-2017
Since the 1980s, the alternative investment sector, and private equity (PE) in particular, has grown tremendously in terms of committed capital, transaction volume, and strategic importance. During the last decade, global growth in private equity has persisted, but some have raised questions regarding the sustainability of returns, risk dynamics, capital illiquidity, and overall viability of the PE business model. The course will provide an overview of the global private equity market, identify key market participants, explain how funds are formed, assess how target companies are evaluated, examine the mechanics of leveraged buyouts, model typical financing arrangements, review how portfolio companies are managed, and explore standard realization strategies. We will also discuss major industry trends and the role of PE in global capital markets, including the entrance of new participants, such as sovereign wealth funds. The course incorporates elements of corporate strategy, management practice, and entrepreneurship, but the syllabus focuses primarily on financial strategies, deal origination, and execution issues. Although there are no formal prerequisites, this is a quantitatively-rigorous and fast-paced course, where students are expected to be familiar with basic valuation methodologies and financial modeling. Faculty lectures will be supplemented with case studies and presentations from several industry guest speakers.
Prerequisites: MBA Students Only
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