This course offers a comprehensive introduction to the fundamentals of private equity investing - focusing on private, illiquid, leveraged, and long-term investments. It is especially suited for students with little or no prior experience in private equity. Using a single real-world case study, students will follow the full investment lifecycle of an actual company - from the initial private equity investment through its IPO and eventual exit. Along the way, students will analyze and engage with key aspects of the investment process, including industry dynamics, company evaluation, valuation methodologies, and capital structure decisions. Midway through the course, as part of their midterm evaluation, student teams will present a buyout proposal to an investment committee that includes the company's CEO and its lead private equity investors. The course will also examine how the company navigated unexpected crises, such as the COVID-FINANCE 19 pandemic, and the strategic decisions that enabled resilience and value creation. As the company prepares for a public market exit, we will explore the IPO process from both the company's and the public investors' perspectives. Throughout the course, industry experts and practitioners will share real-world insights and experiences. In the final class, the CEO and private equity investors will discuss the ten-year journey from buyout to exit and reflect on the key lessons learned. For their final project, each student will select a public company they believe is an attractive acquisition target and present a detailed investment thesis -- including industry outlook, company assessment, valuation, and capital structure recommendations. By the end of the course, students will have developed the skills and confidence to evaluate and execute private equity investments using practical, real-world frameworks. A working knowledge of corporate finance and accounting is required, but prior private equity experience is not. The students who will get the most out of the course are those interested in private equity investing, who have little or no direct experience in these areas.
2 units · GSB Letter Graded
This course offers a comprehensive introduction to the fundamentals of private equity investing - focusing on private, illiquid, leveraged, and long-term investments. It is especially suited for students with little or no prior experience in private equity. Using a single real-world case study, students will follow the full investment lifecycle of an actual company - from the initial private equity investment through its IPO and eventual exit. Along the way, students will analyze and engage with key aspects of the investment process, including industry dynamics, company evaluation, valuation methodologies, and capital structure decisions. Midway through the course, as part of their midterm evaluation, student teams will present a buyout proposal to an investment committee that includes the company's CEO and its lead private equity investors. The course will also examine how the company navigated unexpected crises, such as the COVID-19 pandemic, and the strategic decisions that enabled resilience and value creation. As the company prepares for a public market exit, we will explore the IPO process from both the company's and the public investors' perspectives. Throughout the course, industry experts and practitioners will share real-world insights and experiences. In the final class, the CEO and private equity investors will discuss the ten-year journey from buyout to exit and reflect on the key lessons learned. For their final project, each student will select a public company they believe is an attractive acquisition target and present a detailed investment thesis -- including industry outlook, company assessment, valuation, and capital structure recommendations. By the end of the course, students will have developed the skills and confidence to evaluate and execute private equity investments using practical, real-world frameworks. A working knowledge of corporate finance and accounting is required, but prior private equity experience is not. The students who will get the most out of the course are those interested in private equity investing, who have little or no direct experience in these areas.