Private Equity Crash Course

Lesson 1 • PE Firm Structure and Organization

Explains how PE firms are internally organized across investment, operations, and investor relations. Connects firm structure to deal execution capacity.

Lesson 2 • Key Players and Stakeholders

Maps the roles of GPs, LPs, portfolio companies, and advisors. Clarifies accountability and incentive structures across the ecosystem.

Lesson 3 • PE Strategies and Sub-Asset Classes

Distinguishes buyouts, growth equity, distressed, and secondary strategies by risk-return profile. Enables students to categorize deals and funds accurately.

Lesson 4 • The PE Fund Lifecycle

Traces a fund from fundraising through investment, management, and exit. Provides the temporal framework referenced throughout the course.

Lesson 1 • LP Investor Types and Motivations

Profiles pension funds, endowments, sovereign wealth funds, and family offices as LP archetypes. Links investor type to allocation strategy and return expectations.

Lesson 2 • Management Fees and Fund Expenses

Explains how management fees are calculated, stepped down, and offset. Connects fee structures to GP incentives and LP net returns.

Lesson 3 • Carried Interest Mechanics

Details how carry is earned, distributed, and clawed back. Demonstrates the alignment of GP and LP interests through profit sharing.

Lesson 4 • Fund Performance Metrics

Introduces IRR, MOIC, DPI, RVPI, and TVPI as standard performance measures. Equips students to evaluate and compare fund performance accurately.

Lesson 1 • Company-Level Screening Criteria

Defines financial and qualitative filters used to shortlist targets from a broad universe. Builds efficiency into the early-stage evaluation process.

Lesson 2 • Industry and Sector Screening

Applies top-down sector analysis to identify attractive investment themes. Connects macro trends to specific deal opportunities.

Lesson 3 • Preliminary Investment Thesis

Structures the initial investment rationale before full diligence begins. Ensures deal teams align on value creation logic early.

Lesson 1 • Cash Flow Statement Interpretation

Distinguishes operating, investing, and financing cash flows to assess true cash generation. Links cash flow quality to leverage capacity and returns.

Lesson 2 • Quality of Earnings Analysis

Identifies adjustments, one-time items, and accounting choices that distort reported earnings. Produces a normalized earnings base for valuation.

Lesson 3 • Balance Sheet Analysis

Examines working capital, asset quality, and debt structure from a buyer's perspective. Highlights items that affect purchase price and deal structure.

Lesson 4 • Income Statement Deep Dive

Analyzes revenue recognition, gross margin drivers, and EBITDA build-up. Provides the foundation for all valuation and modeling work.

Lesson 1 • LBO-Based Valuation

Uses the LBO model to back-solve for maximum entry price at a target return. Uniquely PE-specific and directly tied to deal structuring decisions.

Lesson 2 • Discounted Cash Flow Valuation

Builds a DCF model using projected free cash flows and a weighted average cost of capital. Anchors intrinsic value independent of market sentiment.

Lesson 3 • Valuation Synthesis and Judgment

Triangulates outputs from multiple methods into a defensible value range. Develops the analytical judgment required for investment committee presentations.

Lesson 4 • Precedent Transaction Analysis

Analyzes historical deal multiples to capture control premiums and market cycle effects. Provides the M&A market reference for entry price negotiation.

Lesson 1 • Commercial Due Diligence

Validates the investment thesis through market sizing, competitive analysis, and customer research. Stress-tests revenue assumptions underpinning the financial model.

Lesson 2 • Legal and Regulatory Due Diligence

Identifies contractual, litigation, and compliance risks that affect deal structure or price. Informs representations, warranties, and indemnity negotiations.

Lesson 3 • Due Diligence Framework and Planning

Designs the diligence workplan, workstream ownership, and timeline management. Ensures systematic coverage of all material risk areas before exclusivity.

Lesson 4 • Operational and ESG Due Diligence

Assesses operational efficiency, technology infrastructure, and ESG risk exposure. Identifies post-close value creation and risk mitigation priorities.

Lesson 1 • Management Equity and Incentive Plans

Structures management equity pools, option plans, and ratchets to align incentives. Connects management compensation design to deal returns and retention.

Lesson 2 • Equity Returns Analysis

Calculates IRR and MOIC under multiple exit scenarios and operating assumptions. Demonstrates how leverage, growth, and multiple expansion drive returns.

Lesson 3 • Deal Structuring Considerations

Addresses purchase price adjustments, earn-outs, and representations and warranties. Bridges financial modeling to negotiated deal terms.

Lesson 4 • Debt Structuring and Tranches

Explains senior, mezzanine, and subordinated debt instruments and their pricing. Connects capital structure choices to cost of capital and return outcomes.

Lesson 1 • The 100-Day Plan

Structures the immediate post-close priorities across people, process, and performance. Sets the foundation for sustained value creation throughout the holding period.

Lesson 2 • Revenue Growth Initiatives

Identifies organic and inorganic levers to accelerate top-line growth. Connects revenue strategy to exit multiple expansion and IRR improvement.

Lesson 3 • Financial Engineering and Capital Structure

Manages debt repayment, refinancing, and dividend recapitalizations to optimize capital structure. Balances financial risk with return enhancement throughout the holding period.

Lesson 4 • Margin Improvement and Cost Optimization

Applies operational improvement techniques to expand EBITDA margins. Quantifies cost reduction opportunities without impairing growth capacity.