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 2016 to 2018
• Semester: summer
• E-Credits: 4
• Examination process: summer s.:
• Hours per week, examination: summer s.:1/1, Ex [HT]
• Capacity: 194 / unknown (97)
• Min. number of students: unlimited
• 4EU+: no
• Virtual mobility / capacity: no
• State of the course: taught
• Language: English
• Teaching methods: full-time
• 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; Mgr. Dominik Herman
• Class: Courses for incoming students

Aim of the course

Last update: Mgr. Dominik Herman (20.02.2020)

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.

Syllabus

Last update: Mgr. Dominik Herman (14.02.2021)

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