2023-2024 a.y.
Course offered to incoming exchange students
20260 - PRIVATE EQUITY AND VENTURE CAPITAL
Course taught in English
Class taught fully online
Insegnamento offerto anche in modalita' e-learning (cl. 33)
Synchronous Blended: Lezioni erogate in modalità sincrona in aula (max 1 ora per credito online sincrona)
It is recommended only the basic knowledge of corporate finance, company valuation issues and methodologies. Personal curiosity and desire to tackle a topic such private equity and venture capital, which is a natural cross-road between finance, investment, strategy/consulting and legal issues, is the real key pre-requisite to enjoy the course and to have a great upside.
The course is devoted to explore a more and more relevant part of the world of illiquid asset, represented by the most well-known one which is private equity & venture capital. Explore means to enter this fascinating business without staying on the surface but understanding the key aspect of deal making and grasping the language, the tone of voice and the metrics practitioners (and deal makers) use in the day-by-day life. Even private equity & venture capital is a deal involving two parties (i.e., the equity investor and the private equity-backed company), the course is mostly focused using the investor perspective. However, the view overall remains holistic and generates benefits for the different students willing to understand (and to play the role in) the position and the job of investors, advisors and consultant, companies looking for a PE or a VC investor too.
The course is based on four building blocks.
The first one is devoted to the analysis of the “pillars” of private equity and venture capital. Pillars mean: a) to set the definition (also comparing the US/UK view vis-à-vis other markets) and the taxonomy, b) to analyse the six clusters/markets composing the puzzle of the private equity and venture capital eco-system and, c) to understand the major trends/innovation of the industry overall.
The second one is devoted to analyse the different vehicles acting as private equity/venture capital investors. To achieve this goal with a first-class knowledge of the business is important: a) to distinguish the key features of the US and UK regulatory framework and of the EU one, moving to all the other markets; b) to analyse the universal denominator of legal entities around the world playing the role of equity investors; c) to screen PE and VC funds as well as SBIC, VCT and closed-end funds; d) to deal with the systems to generate performance (i.e., fees and carried interest), e) to fix the key elements of taxation.
The third one explores and covers the so called deal making process of private equity and venture capital, which is based on four different steps or phases: a) the fundraising activity (which is by definition preliminary to any business activity and it can lead to a successful end or to the end of any ambition), b) the investing phase, which is based on the screening of potential deals and the on the negotiation of the potential deal itself, c) the managing & monitoring activity, which means to manage the stake (with majority or minority) for creating value and, last d) the exiting phase, which involves the decisions to sell the stake throughout different strategies. All these phases are common to any kind of investor in any market of the World.
The fourth one explores the valuation issue within private equity and venture capital settings. Valuation is nothing new and it does not aim at replying and repeating what students know, as it is enough! The challenge is not to add a new theory or a new methodology but it is to understand how common tools (i.e., DCF and multiples) are used in an illiquid setting and when business plans are not solid enough, simply because the company is a start up!
1. Analyse the trend, the main characteristics (i.e., regulation, taxation, key aspects of the demand and the supply of equity) and the dynamics of private equity and venture capital markets within any geographic region
2. Understand the rationale and the key drivers of major private equity and venture capital transactions in the market
3. Analyse and compare the risk and the return profile of different entities investing in private equity and venture capital
4. Valuate the effectiveness of different options to use private equity and venture capital in the perspective of companies
5. Understand the key issues and problems within the different phases of the management of any private equity and venture capital investor
6. Understand and analyse the settings to valuate private equity and venture capital deals
1. Compare the potential upside of different clusters/geographic markets within private equity and venture capital business, and moreover to face any kind of interview vis-à-vis recruiters of the PE & VC industry
2. Identify the key players and rules to organize private equity and venture capital funds
3. Set up a pitch to support a fundraising campaign for private equity and venture capital funds
4. Organize the right setting for an effective managerial process within private equity and venture capital funds
5. Support the negotiation of a private equity and of a venture capital deal
6. Asses the valuation of a private equity and of a venture capital deal
7. Support and advise a company and/or an entrepreneur to chose the right equity investor
- Face-to-face lectures
- Online lectures
- Guest speaker's talks (in class or in distance)
- Exercises (exercises, database, software etc.)
- Case studies /Incidents (traditional, online)
The learning experience of this course is mainly based on on-line lectures. However, each of the four modules set forth in Section 1 is accompanied by case discussions and presentations by external guest speakers. The use of cases and external speakers aims at better connecting the body of knowledge covered in the course with real life examples, typically focused on complex investment banking transactions. Furthermore, the interaction between the instructor and students through on-line live sessions helps students understand how professionals in the field approach a transaction and organize it in a structured process going from the deal origination to the final deal execution. The usage of exercises and sotwares enable students to a better understanding of professional best practices.
| Continuous assessment | Partial exams | General exam | |
|---|---|---|---|
| x |
- Slides and ad hoc readings available in the Bboard Platform.
- The book: S. CASELLI, G. NEGRI, Private equity and venture capital in Europe, Third Edition, Elsevier Academic Press, 2021.
- Videos available in the Bboard Platform.
- Text of case studies available in the Bboard Platform.
- Softwares and exercises available in the Bboard Platform.
Go to modules: E-learning class-group
Advanced: Lezioni erogate in modalità sincrona e asincrona in aula e a distanza
It is recommended only the basic knowledge of corporate finance, company valuation issues and methodologies. Personal curiosity and desire to tackle a topic such private equity and venture capital, which is a natural cross-road between finance, investment, strategy/consulting and legal issues, is the real key pre-requisite to enjoy the course and to have a great upside.
The course is devoted to explore a more and more relevant part of the world of illiquid asset, represented by the most well-known one which is private equity & venture capital. Explore means to enter this fascinating business without staying on the surface but understanding the key aspect of deal making and grasping the language, the tone of voice and the metrics practitioners (and deal makers) use in the day-by-day life. Even private equity & venture capital is a deal involving two parties (i.e., the equity investor and the private equity-backed company), the course is mostly focused using the investor perspective. However, the view overall remains holistic and generates benefits for the different students willing to understand (and to play the role in) the position and the job of investors, advisors and consultant, companies looking for a PE or a VC investor too.
The course is based on four building blocks.
The first one is devoted to the analysis of the “pillars” of private equity and venture capital. Pillars mean: a) to set the definition (also comparing the US/UK view vis-à-vis other markets) and the taxonomy, b) to analyse the six clusters/markets composing the puzzle of the private equity and venture capital eco-system and, c) to understand the major trends/innovation of the industry overall.
The second one is devoted to analyse the different vehicles acting as private equity/venture capital investors. To achieve this goal with a first-class knowledge of the business is important: a) to distinguish the key features of the US and UK regulatory framework and of the EU one, moving to all the other markets; b) to analyse the universal denominator of legal entities around the world playing the role of equity investors; c) to screen PE and VC funds as well as SBIC, VCT and closed-end funds; d) to deal with the systems to generate performance (i.e., fees and carried interest), e) to fix the key elements of taxation.
The third one explores and covers the so called deal making process of private equity and venture capital, which is based on four different steps or phases: a) the fundraising activity (which is by definition preliminary to any business activity and it can lead to a successful end or to the end of any ambition), b) the investing phase, which is based on the screening of potential deals and the on the negotiation of the potential deal itself, c) the managing & monitoring activity, which means to manage the stake (with majority or minority) for creating value and, last d) the exiting phase, which involves the decisions to sell the stake throughout different strategies. All these phases are common to any kind of investor in any market of the World.
The fourth one explores the valuation issue within private equity and venture capital settings. Valuation is nothing new and it does not aim at replying and repeating what students know, as it is enough! The challenge is not to add a new theory or a new methodology but it is to understand how common tools (i.e., DCF and multiples) are used in an illiquid setting and when business plans are not solid enough, simply because the company is a start up!
1. Analyse the trend, the main characteristics (i.e., regulation, taxation, key aspects of the demand and the supply of equity) and the dynamics of private equity and venture capital markets within any geographic region
2. Understand the rationale and the key drivers of major private equity and venture capital transactions in the market
3. Analyse and compare the risk and the return profile of different entities investing in private equity and venture capital
4. Valuate the effectiveness of different options to use private equity and venture capital in the perspective of companies
5. Understand the key issues and problems within the different phases of the management of any private equity and venture capital investor
6. Understand and analyse the settings to valuate private equity and venture capital deals
1. Compare the potential upside of different clusters/geographic markets within private equity and venture capital business
2. Identify the key players and rules to organize private equity and venture capital funds
3. Set up a pitch to support a fundraising campaign for private equity and venture capital funds
4. Organize the right setting for an effective managerial process within private equity and venture capital funds
5. Support the negotiation of a private equity and of a venture capital deal
6. Asses the valuation of a private equity and of a venture capital deal
7. Support and advise a company and/or an entrepreneur to chose the right equity investor
- Face-to-face lectures
- Online lectures
- Guest speaker's talks (in class or in distance)
- Exercises (exercises, database, software etc.)
- Case studies /Incidents (traditional, online)
- Group assignments
The learning experience of this course is mainly based on on-line lectures. However, each of the four modules set forth in Section 1 is accompanied by case discussions and presentations by external guest speakers. The use of cases and external speakers aims at better connecting the body of knowledge covered in the course with real life examples, typically focused on complex investment banking transactions. Furthermore, the interaction between the instructor and students through on-line live sessions helps students understand how professionals in the field approach a transaction and organize it in a structured process going from the deal origination to the final deal execution. The usage of exercises and sotwares enable students to a better understanding of professional best practices.
| Continuous assessment | Partial exams | General exam | |
|---|---|---|---|
| x |
The exam is based on a general exam at the end with sixty multiple choices questions. In both cases, multiple choices cover both small cases, exercizes and theoretical knowledge of the content.
- Slides and ad hoc readings available in the Bboard Platform.
- The book: S. CASELLI, G. NEGRI, Private equity and venture capital in Europe, Third Edition, Elsevier Academic Press, 2021.
- Videos available in the Bboard Platform.
- Text of case studies available in the Bboard Platform.
- Softwares and exercises available in the Bboard Platform.