This class exists in these courses :
• IÉSEG > IESEG Degree - Programme Grande École > Semester 1 > 2,00 ECTS

Prerequisites

The students should be able to understand all the basics of finance with a focus on cash flow generation and forecasts. They should also be able to value a company with the main methods (DCF and multiples).

Learning outcomes

At the end of the course, the student should be able to:
The students should be able to :
a- understand the purpose of private equity in financing companies and how it works;
b- realise that there are different type of private equity funds depending on the maturity of the companies raising funds;
c- understand the main issues for the PE funds when they invest as well as for the companies when they raise funds;
d- master the financial engineering of deals such as LBOs;
e- master the main legal contracts between equity funds and companies raising funds.

Course description

a) Introduction
b) What is Private Equity ? (figures on the industry, different types of funds)
c) The different steps before a deal
d) How it works during a deal
e) The different exits from a deal

Class type

Class structure

Teaching methods

• Interactive class
• Project work
• Research

Assessment

The assesment will be divided in three : 1) a participation grade, based on the way students interact and exercises done during the class, 2) a written assignment based on real life cases and more general comments on the industry and 3) a final exam.

Recommended reading

• Mastering the VC Game : a venture capitalist insider reveals how to get from a start-up to IPO on your terms by Jeffrey Bussgang (Penguin) -

• Venture capitalists at work by Tarang Shah (Wiley) -

• The business of Venture Capital : Insights from practioners on the art of raising a fund, deal structuring, value creation, and exit strategies by Mahendra Ramsinghani (Wiley) -