Syllabus MGMT E-2790 Private Equity Spring 2017 Post
Syllabus MGMT E-2790 Private Equity Spring 2017 Post
Syllabus MGMT E-2790 Private Equity Spring 2017 Post
Viney Sawhney
<[email protected]>
Course objectives
The main objective of the course is to provide students with the necessary theoretical and
conceptual tools used in private equity deals. The course provides the intellectual framework
used in the private equity process, valuation in private equity settings, creating term sheets, the
process of due diligence and deal structuring. Other learning objectives include building an
understanding of harvesting through IPO or M&A, public-private partnerships and sovereign
wealth funds. The final objective of this course is to show how corporate governance, ethics and
legal considerations factor into private equity deals.
Main Topics
1) Private Equity Process
2) Valuation and Term Sheets
3) Deal Structuring
4) Harvesting
5) Due Diligence
6) Public-Private Partnerships
7) Sovereign Wealth Funds
8) Legal, Ethical and Governance Issues in Private Equity Settings
Evaluation of Course Grade
The grading of the course will be based on the following weighting scheme:
20% Class Participation
20% Homework and Quizzes
30% Mid-term Exam (in-class)
30% Final Project
The course will be taught in the form of lectures together with case studies intended for in class
discussion. Each week students shall be e-mailed three select articles from leading financial
publications, e.g., Financial Times, Wall Street Journal, New York Times.
Each student will be part of a study group made up of at least three members. Weighting for
class participation will be derived from individual assignments and class discussion on case
studies.
Teaching Method
This course will have a number of different dimensions including:
• Lectures
• Case analysis
• Discussion of financial articles
• Guest speakers from industry and academia
Required reading
In addition to the assigned Case Studies, Industry Notes and textbook chapters, reading of
leading financial articles is required for the interactive class discussions of current events.
Academic Integrity
You are responsible for understanding Harvard Extension School policies on academic integrity
(www.extension.harvard.edu/resources-policies/student-conduct/academic-integrity) and how to
use sources responsibly. Not knowing the rules, misunderstanding the rules, running out of time,
submitting the wrong draft, or being overwhelmed with multiple demands are not acceptable
excuses. There are no excuses for failure to uphold academic integrity. To support your learning
about academic citation rules, please visit the Harvard Extension School Tips to Avoid
Plagiarism (www.extension.harvard.edu/resources-policies/resources/tips-avoid-plagiarism),
where you'll find links to the Harvard Guide to Using Sources and two free online 15-minute
tutorials to test your knowledge of academic citation policy.
The tutorials are anonymous open-learning tools.
Disabilities Services
The Extension School is committed to providing an accessible academic community.
The Accessibility Office offers a variety of accommodations and services to students with
documented disabilities. Please visit www.extension.harvard.edu/resources-
policies/resources/disability-services-accessibility for more information.
Disability Services Coordinator
51 Brattle Street
Cambridge, MA 02138
voice: (617) 495-0977
TTY: (617) 495-9419
fax: (617) 495-3662
e-mail: [email protected]"
SYLLABUS
Session 1: THE PRIVATE EQUITY PROCESS
This session introduces the private equity process, the terms and how value is created. This session
covers the private equity process from initially determining the size of the fund, through fund raising,
sourcing portfolio investments, acquiring the portfolio companies and converting equity value back to
cash by liquidating portfolio holdings. The means by which private equity firms create value and enhance
the valuation of their portfolio is also covered.
Required Reading:
Cendrowski, Harry, Martin, James P., Petro, Louis W., and Wadecki, Adam A, Private Equity, History,
Governance, and Operations, John Wiley & Sons (New York, NY, 2012), Chapter 1
Notes:
“The Basics of Private Equity Funds” Darden Business Publishing UV6986, Rev. Sept 15, 2015
“A Note on Private Equity Fund-Raising,” 2000, HBS Publication # 9-201-042
Case:
“Yale University Investments Office: February 2015,” 2015, HBS Case # 9-815-124
The Yale Investments Office must decide whether to continue to allocate the bulk of the university's
endowment to illiquid investments-hedge funds, private equity, real estate, and so forth. This case
considers the risks and benefits of a different asset allocation strategy and highlights the choice
between different subclasses, e.g., between venture capital and leveraged buyout funds.