Private Equity

1.5 Credits · Level: Graduate, Juris Doctor, Undergraduate

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, and the overall viability of the PE business model. The course will provide an overview of the 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. The course incorporates elements of corporate strategy, management practice, and entrepreneurship, but the syllabus focuses primarily on financial strategies, deal origination, and execution issues. Before beginning the course, students should have a basic understanding of financial statements (income statements, balance sheets, and cash flow statements) and financial modeling. Course material will be presented primarily through case studies and selected readings. Class participation will be important as students will learn from each other as they discuss the questions presented in each case.