Private Equity - JEM161

• Title: Private Equity
• Czech title: Private Equity
• Guaranteed by: Institute of Economic Studies (23-IES)
• Faculty: Faculty of Social Sciences
• Actual: from 2015 to 2015
• Semester: summer
• E-Credits: 4
• Examination process: summer s.:
• Hours per week, examination: summer s.:1/1, Ex [HT]
• Capacity: 35 / unknown (35)
• Min. number of students: unlimited
• 4EU+: no
• Virtual mobility / capacity: no
• State of the course: taught
• Language: English
• Teaching methods: full-time
• Note: course can be enrolled in outside the study plan; enabled for web enrollment; priority enrollment if the course is part of the study plan
• Guarantor: Ing. Tomáš Fencl, MBA; Bc. Jan Šmejkal
• Teacher(s): Ing. Tomáš Fencl, MBA; Bc. Jan Šmejkal
• Class: Courses for incoming students

Aim of the course

The course’s objective is to provide an introduction to the private equity investment process and its analytical framework. Theoretical concepts are explained using real-life examples and actual market data. Industry practitioners are invited to present guest lectures and participate in Q&A.

Last update: Herman Dominik, Mgr. (20.02.2020)

Syllabus

IES UK Private Equity Class, 2020 Syllabus

 

This is the syllabus for the condensed version of the course, taught in two days – the scope of the lectures however is the same as the original 13-week class (excl. team presentations).

 

SCHEDULE MODIFIED DUE TO THE COVID-19 OUTBREAK:

Conference-call lectures via MS Teams:

https://teams.microsoft.com/l/meetup-join/19%3ameeting_NmY1YjMzNGQtOWIzMS00NTdkLWJiMDktODFlN2U0NTg1NGNi%40thread.v2/0?context=%7b%22Tid%22%3a%226cf6af7e-d496-4042-a432-18f5faad34de%22%2c%22Oid%22%3a%22eaf728f7-ff0e-4899-9f30-cd4513500a7e%22%7d

May 11 (MS Teams): 18:30-20:30, Lecture 1
May 12 (MS Teams): 18:55-20:30, Lecture 2
May 13 (MS Teams): 18:55-20:30, Lecture 3
May 14 (MS Teams): 18:55-20:30, Lecture 4
May 15 (MS Teams): 18:55-20:30, Lecture 5

May 18 (MS Teams): 18:55-20:30, Lecture 6
May 19 (MS Teams): 18:55-20:30, Lecture 7
May 22 (MS Teams): 14:15-16:30, Panel Discussion

 

My Mission:

The topic of private equity (and venture capital) is not only interesting, but I believe highly relevant to IES graduates. I hope you find the course useful in one (or more) of these three use cases – you learn how: 

1. investment professionals approach PE/VC investments, 

2. you can apply the learning to “entrepreneurship via acquisition”, and 

3. the topics covered apply to broader corporate strategy

 

Lecture 1: What is Private Equity (and Venture Capital)?

• Some historical perspective (or what do Crusades have to do with any of this?) 

• How do PE/VC funds work

• Lifecycle of a fund: Institutional fund raising / asset management 

• VC vs. PE; What is a “Family Office”, a “Search Fund”   

 

Lecture 2: Investment strategies & opportunity screening 

• How do PE firms make money?

• How is VC different from PE?

• PE Investment strategies and Investment criteria

• Auctions vs. proprietary sourcing

 

Lecture 3: Role of Debt

• Debt capacity (how much debt can you raise?) and leverage ratios 

• Cost of debt (hint: not just the interest you pay)

• Alternative sources of debt – an overview

• Capitalization table & liquidation preference

 

Lecture 4: Valuation in PE/VC Context

• Price vs. Value

• Value to who? Stakeholders’ perspective 

• Overview of basic valuation techniques: pro’s and con’s

• Difference between PE and VC approach to valuation

 

Lecture 5: Acquisition Process

• From the first contact to a Deal

• Key parties to the table

• Difference between an auction and negotiated transaction

• Due diligence

 

Lecture 6: Acquisition Agreement

• Transaction structure: What you buy (assets or shares) and how you pay (cash or shares) and how much (fixed price vs formulae)

• Buying whole business vs control vs minority stake (PE vs VC)

• Deal protection: Representation & Warranties and Remedies (Baskets, de minimis, caps)

• Conditions precedent & Closing

 

Lecture 7: Monitoring & Exiting investments

• Monitoring: Management vs. Board roles

• Monitoring: The Good, the Bad and the Ugly

• Timing the exit: determinants 

• Ways to exit: Trade sale, secondary LBO, IPO, Recap 

Panel with Industry Practitioners 

• Speakers to be announced 

Last update: Herman Dominik, Mgr. (14.02.2021)