Private Equity Investing

Course Overview

This course offers an exhaustive dive into the multifaceted world of private equity, covering everything from the foundational concepts and segmentation of the market to the intricacies of due diligence, valuation techniques, and legal documentation. Beginning with an introduction that outlines the market’s size, growth, and key participants, including venture capital, growth capital, and leveraged buy-outs, the course then delves into fundamental concepts such as the structure of closed-end funds, partnership dynamics, and the economics of private equity.

The programme emphasises the critical role of thorough due diligence, from business and accounting perspectives to strategic company analysis. The course also offers detailed insights into valuation methods and private equity instruments, alongside practical modelling examples and case studies to bridge theory with real-world application.

Participants will explore growth equity, learn the differences between various private equity strategies, and examine the steps and structures involved in a leveraged buy-out, including post-investment monitoring, value creation, and exit strategies.

Learning Objectives

• Understand the segmentation, definition, and various strategies within the private equity market, including venture capital, growth capital, and leveraged buy-outs, alongside a grasp of the market size, growth, and the roles of key participants.
• Gain comprehensive knowledge of the fundamentals of private equity investing, such as the structures of closed-end funds, partnership dynamics, economic considerations (including management fees, hurdle rates, and carried interest), and the significance of cash flows and J curves in performance measurement.
• Master the due diligence process for private equity investments, encompassing business and accounting due diligence, macro and industry analysis using Porter’s 5 forces model, and strategic company analysis to assess cyclicity, seasonality, and competitor positioning.
• Acquire valuation techniques specific to private equity, including Discounted Cash Flow (DCF), Adjusted Present Value (APV), and Multiples, with practical modelling examples to enhance understanding and application in real-world scenarios.
• Explore the intricacies of private equity transactions, from growth equity, venture capital, and leveraged buy-outs to the construction of capitalization tables, understanding dilution and equity stake calculations, and structuring for exit strategies including IPOs, trade sales, and secondary sales.
• Navigate the legal and documentation aspects of private equity investments, understanding the importance of confidentiality agreements, term sheets, shareholder agreements, and the comprehensive set of legal documents that govern private equity transactions and investor relationships.