Private Equity - An Overview of the Industry

2 credits · GSB

The primary goal of this 2-unit course is to introduce students to the private equity industry and to the buyout business, the largest segment of the PE market and where the industry got its start. The course will examine some of the industry's history and development, and why and how investors allocate capital to private equity. We will consider how PE firms make investments, from identifying a good deal, to valuing it, and winning it in a competitive process. We will discuss the sources of buyout returns, how PE firms add value to their portfolio companies, and some of the common mistakes firms make. Finally, we'll talk about how private equity has grown through innovation and what the future might hold for the industry. We will meet for nine sessions, each for a duration of 90 minutes. Most classes will also include a distinguished visitor who works in the industry and will offer insights into their private equity firm and their career. Written work will focus on a group presentation at the end of the course. The presentation assignment is to pick a hypothetical buyout investment of the group's choosing and describe the investment from beginning to end in a 12-page PowerPoint.