(Formerly Law 522) This course will focus on the central issues involved in private equity investing. Topics will include: pricing, structuring and valuation of private equity and venture capital investments; buyouts and other transactions involving multitiered capital structures; the structure and governance of PE and VC funds; conceptual issues relevant in this realm such as option theory, asymmetric information and bounded rationality; and private equity as a distinct asset class. There are no required prerequisites. Students will develop skills and tools used in the private equity arena, including financial analysis (e.g., "deal arithmetic" fundamentals, spreadsheet modeling and forecast preparation); the drafting and negotiation of transaction documents; and the ability to conduct comprehensive due diligence examinations of prospective acquisitions and investments. We will have a number of guest speakers during the term, and will draw on various materials illustrative of what one would encounter in private equity deals and funds. Elements Used in Grading: Periodic problem sets, a final case study and class participation. (The case study will be completed in a small group, and it will give students the opportunity to analyze a real-world transaction from a number of perspectives.) A Final Note: While a 3-credit course, Private Equity Investing will meet during only the first two-thirds of the Winter quarter. The final class session will be on February 28th (rather than March 12th). Students must attend the initial class session on January 10th in order to be eligible to enroll in the course.
Private Equity Investing LAW 522 Section 01 Class #16094
Notes: PS -Professional Skills Requirement for Law Degree.