Private Equity Course

Lesson 1 • PE Strategies and Market Segments

Surveys buyout, growth equity, distressed, and secondary strategies. Provides context for why different strategies suit different market conditions.

Lesson 2 • Economics of a PE Fund

Covers management fees, carried interest, hurdle rates, and clawback provisions. Students can calculate basic GP economics and understand LP return expectations.

Lesson 3 • The Private Equity Ecosystem

Maps the full network of participants including GPs, LPs, advisors, and portfolio companies. Students understand how each actor's incentives shape deal flow and outcomes.

Lesson 4 • Fund Structures and Legal Vehicles

Explains the limited partnership structure, fund lifecycle, and governance documents. Connects legal form to economic incentives for GPs and LPs.

Lesson 1 • Reading Financial Statements in PE Context

Reviews income statement, balance sheet, and cash flow statement with a PE lens. Emphasizes items most relevant to deal assessment and value creation.

Lesson 2 • Working Capital and Cash Conversion

Analyzes working capital cycles, cash conversion efficiency, and seasonal patterns. Directly informs debt capacity and free cash flow projections in LBO models.

Lesson 3 • Financial Red Flags and Quality Signals

Identifies accounting manipulations, revenue recognition issues, and margin deterioration patterns. Builds analytical skepticism essential for PE due diligence.

Lesson 4 • Capital Structure and Debt Analysis

Examines existing debt obligations, covenants, and off-balance-sheet liabilities. Students assess refinancing risk and debt capacity before structuring a deal.

Lesson 1 • Sum-of-the-Parts and Asset Valuation

Values conglomerates and asset-heavy businesses by segmenting and valuing each component. Relevant for carve-outs, divestitures, and complex PE targets.

Lesson 2 • Precedent Transaction Analysis

Uses historical M&A deal multiples to establish a control premium benchmark. Connects transaction context to multiple selection for PE pricing decisions.

Lesson 3 • Discounted Cash Flow Valuation

Constructs a DCF model using projected free cash flows and a weighted average cost of capital. Students understand DCF sensitivity and its role in PE investment decisions.

Lesson 4 • Valuation in Practice and Negotiation

Bridges technical valuation to deal pricing, bid strategy, and seller expectations. Students learn how valuation ranges inform offer letters and negotiation positions.

Lesson 1 • Operating Model and Cash Flow Projection

Projects revenue, margins, capex, and working capital over a five-year hold period. Accurate operating projections drive debt paydown and exit valuation.

Lesson 2 • Returns Analysis and Sensitivity

Calculates IRR and MOIC at exit under varying entry multiples, exit multiples, and leverage. Students identify the key value drivers and stress-test the investment thesis.

Lesson 3 • Debt Structuring and Tranches

Covers senior secured, mezzanine, and subordinated debt instruments used in LBOs. Students size each tranche based on leverage ratios and coverage constraints.

Lesson 4 • Debt Schedule and Amortization

Builds a dynamic debt schedule with mandatory amortization, cash sweeps, and interest calculations. Students see how debt paydown accelerates equity value creation.

Lesson 1 • Financial Due Diligence

Verifies historical financials, normalizes earnings, and stress-tests projections. Directly feeds into LBO model assumptions and purchase price negotiation.

Lesson 2 • Deal Sourcing Strategies

Covers proprietary deal sourcing, intermediary relationships, and sector-focused origination. Students understand how sourcing quality affects deal economics and competition.

Lesson 3 • Legal, Tax, and Operational Diligence

Identifies legal liabilities, tax exposures, and operational risks that affect deal structure. Students learn to coordinate specialist advisors and synthesize findings.

Lesson 4 • Commercial Due Diligence

Assesses market size, competitive dynamics, customer concentration, and growth sustainability. Validates the investment thesis before committing to financial modeling.

Lesson 1 • Equity and Governance Terms

Explains preferred equity, liquidation preferences, anti-dilution, and board composition rights. Students understand how governance terms protect PE investors post-close.

Lesson 2 • Transaction Structure Fundamentals

Covers asset vs. stock purchase, merger structures, and their tax and liability implications. Students choose the appropriate structure based on deal context and objectives.

Lesson 3 • Management Incentive Plans

Designs management equity pools, vesting schedules, and performance ratchets to align incentives. Proper incentive design is critical to value creation post-acquisition.

Lesson 4 • Purchase Price Adjustments and Protections

Covers working capital pegs, earn-outs, representations and warranties, and indemnification. Students structure protections that reduce post-close financial surprises.

Lesson 1 • The 100-Day Plan

Structures the post-acquisition integration and quick-win identification process. A strong 100-day plan sets the trajectory for the entire hold period.

Lesson 2 • Value Creation Framework

Decomposes PE returns into revenue growth, margin expansion, multiple expansion, and leverage. Students attribute historical returns and design forward-looking value creation plans.

Lesson 3 • Operational Improvement Initiatives

Covers procurement optimization, pricing strategy, sales force effectiveness, and cost reduction. Students design and prioritize operational initiatives with measurable EBITDA impact.

Lesson 4 • Add-On Acquisitions and Buy-and-Build

Explains how bolt-on acquisitions accelerate growth and create multiple arbitrage. Students evaluate add-on targets and integrate them into the platform thesis.

Lesson 1 • Running a Sale Process

Walks through the structured sale process from teaser to final bid to signing. Students understand each stage, timeline, and the GP's role in managing the process.

Lesson 2 • Exit Preparation and Positioning

Covers vendor due diligence, management presentation preparation, and financial clean-up. Proper exit preparation compresses deal timelines and maximizes sale price.

Lesson 3 • Exit Route Options

Compares strategic sale, secondary buyout, IPO, and recapitalization as exit paths. Students match exit route to company maturity, market conditions, and return objectives.

Lesson 4 • LP Reporting and Fundraising Implications

Covers LP reporting standards, capital account statements, and how track record drives future fundraising. Students connect exit outcomes to GP reputation and LP relationships.