The Essentials Of Private Equity

A time-efficient way to learn the must-knows of private equity!

Last updated 2022-01-10 | 4.6

- Discover the basic
- essential concepts within private equity
- Learn about the different types of private equity
- Understand how the full investment process works from sourcing deals to realising gains

What you'll learn

Discover the basic

essential concepts within private equity

Learn about the different types of private equity

Understand how the full investment process works from sourcing deals to realising gains

Learn how private equity funds operate and what matters most to them today

Understand the best way to break into private equity in traditional and non-traditional markets

* Requirements

* A basic understanding of finance

Description

The Essentials of Private Equity course is designed to provide you with a time-efficient way to learn the most important concepts within private equity.

We are not going to cover every single thing about private equity...but we will cover the essential, need-to-know concepts to make sure you can hit the ground running! The 100% free preview lectures and course outline will give you a feel for the style and level of content that will be covered.

I have worked with some of the leading private equity funds across three continents, having also previously advised numerous private equity funds within investment banking at leading firms such as J.P. Morgan and Citigroup. You should feel confident that you are in good hands!

Course Outline:

Core Principles of Private Equity - discover the absolute essentials of what you need to know to speak confidently about private equity
Sourcing Deals - dive into how private equity funds source deals for both proprietary and process-driven deals
Executing Investments - learn about the full investment process for new deals at private equity funds
Portfolio Management - understand how private equity funds create value within their portfolio
Exiting Investments - use practical examples to understand how private equity funds sell investments and realise profits
Private Equity Fund Considerations - understand the core concepts of how funds are operated and benchmarked
How to Break into Private Equity - learn about the proven ways to maximise your chances of breaking into private equity

If you have absolutely any questions once you get started, do not hesitate to use the embedded Q&A function and we will get back to you shortly to continue your learning journey.

Whether you're brand new to the private equity world or are wanting to just learn more, this is the course for you!

We can't wait to see you inside the course!

Who this course is for:

Professionals who are interested in learning more about private equity
Business owners who are interested in working with private equity
Investment bankers or management consultants preparing to move into private equity
Students who are interested in a career within private equity

Course content

7 sections • 31 lectures

Core Principles of Private Equity 5 lectures

Introduction to the Course Preview 03:08

Covers the course outline, instructor background, goals of the course and key tips.

What is Private Equity? Preview 05:34

Covers the key characteristics of private equity and the goal of private equity funds.

The Inner Workings of a Private Equity Fund Preview 06:10

Covers the private equity business model and typical team structure.

Different Types of Private Equity & The Characteristics of an LBO Preview 07:26

Covers the different types of private equity, with a focus on leveraged buyouts (LBOs).

The Basics of Private Equity

The Investment Lifecycle - Sourcing Deals 4 lectures

The Typical Private Equity Investment Process Preview 04:12

Covers the typical private equity investment process from start to finish.

Sourcing Deals Preview 02:59

Covers how private equity firms source proprietary deals and process-driven deals.

What Makes a Good LBO Target? Preview 03:09

Covers the typical characteristics of LBO targets and why they are important.

Which Are Likely LBO Targets?

Review the information given on three companies to decide whether or not they are likely LBO targets.

The Investment Lifecycle - Entry Transaction 6 lectures

Initial Due Diligence Preview 03:12

Covers the initial stages of due diligence conducted by a private equity fund during their assessment of an investment opportunity.

The Initial Offer Preview 04:35

Covers what is included in an initial offer to a company during a private equity investment process, accompanied by a real-life case study.

How to Sweeten the Deal?

Determine how the PE Fund can improve their offer.

Detailed Due Diligence Preview 06:31

Covers the exclusive stages of due diligence conducted by a private equity fund once their initial offer has been accepted.

The Final Stages Preview 11:54

Covers the final stages of the private equity investment process from confirmatory due diligence to signing and closing of the investment.

Calculate the Indicative Returns of the Deal

Your task is to calculate the indicative returns of a deal, using the Excel file provided.

The Investment Lifecycle - Portfolio Management & Value Creation 4 lectures

How Private Equity Creates Value Preview 03:43

Covers the multiple ways in which private equity funds create value in their portfolio.

The Buy-and-Build Strategy Preview 02:32

Covers one of the most popular private equity strategies to create value in portfolio companies.

Exit Planning Preview 04:07

Covers the key value drivers of a private equity exit and the various options available for the fund to exit an investment.

Value Creation

You are the CEO of 157X, a UK based fintech payments company that is currently receiving unsolicited takeover offers from three LBO funds. Your task is to evaluate which fund can offer the most ‘value’ to your company today and into the future as a portfolio company of the fund

The Investment Lifecycle - Exiting Investments 4 lectures

Recap on Exit Options Preview 02:52

Covers a refresher on exit options with additional information on the respective processes, pros and cons.

The Exit Proceeds Waterfall Preview 03:21

Covers how private equity funds determine the split of proceeds upon the exit of a portfolio company.

Calculating the Final Return Preview 03:09

Covers how the final return for a private equity fund is calculated.

Calculate Returns Under Two Scenarios

Your Fund has been presented with two exit options by its advisor, XJ Investment Bank, for the 100% exit of Adelaide Bakeries Company. Your task is to calculate the returns profile for both scenarios on an IRR and MoM/CoC basis and recommend an exit path to the Investment Committee.

Fund Considerations 4 lectures

Raising a Fund Preview 07:31

Covers the various stages involved in raising a private equity fund, as well as the alternate strategy of deal-by-deal fundraising.

Limited Partners (LPs) Preview 02:56

Covers the identity and motivations of fund investors, otherwise known as Limited Partners.

Fund Performance Preview 06:48

Covers the key metrics used to benchmark private equity funds, with a case study example included.

Choose the Best Fund

You manage a large sovereign wealth fund, which is currently deciding upon a sizeable allocation to a new PE Fund. You are presented with three choices, with details provided on each fund’s historical track record. It is your task to calculate the IRRs of each fund and decide on your allocation.