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2022/2023  BA-BHAAV2301U  CANCELLED Private Equity Investing

English Title
CANCELLED Private Equity Investing

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Quarter
Start time of the course Third Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 80
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Carsten Sørensen - Department of Finance (FI)
Main academic disciplines
  • Finance
  • Strategy
Teaching methods
  • Face-to-face teaching
Last updated on 07-09-2022

Relevant links
Learning objectives
The overall objective of the course is to equip students to effectively and in an analytical way evaluate a private equity investment opportunity, and in doing so deliver 1) an LBO / returns model and 2) an investment memo. To prepare students for this exercise, the course will provide an overview of the private equity industry incl. the industry landscape, structure, and participants. Further, the course will provide an introduction to the role as private equity practitioner and aim to teach the students core tools and frameworks used by private equity investors to evaluate investment opportunities. This means that the students should:
  • Demonstrate understanding of how private equity funds are structured and operate
  • Be able to apply frameworks for how PE firms evaluate and structure deals to an investment case
  • Be able to develop a concise and robust value creation plan
Course prerequisites
Please note that the elective course is reserved for HA students, who wish to write their bachelor project in this elective course.
Prerequisites for registering for the exam (activities during the teaching period)
Number of compulsory activities which must be approved (see section 13 of the Programme Regulations): 3
Compulsory home assignments
• question liste (forude for management presentation in class)
• 2-3 page memo on investment case (up to 5 pages)
• LBO model on investment case (excel file)
to be submitted in groups of 3-4 persons.
Examination
Private Equity Investing:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Spring
Aids Limited aids, see the list below:
The student is allowed to bring
  • An approved calculator. Only the models HP10bll+ or Texas BA ll Plus are allowed (both models are non-programmable, financial calculators).
  • Language dictionaries in paper format
The student will have access to
  • basic IT application package
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Course content, structure and pedagogical approach

The course will provide theory and frameworks across key topics, and then apply these to investment cases to be discussed with guest lecturers and in class.The following areas are covered in the course: 

  • Product including analysis and clear articulation of value proposition to customers
  • Market including breakdown of growth drivers and analysis of the value chain incl. supplier risk, competition, and customers
  • Go-to-market (sales strategy) – i.e., how best to capitalize on the opportunity and accelerate growth
  • Evaluation of management
  • Financial analysis incl. analysis of unit economics as well as financial statement analysis
  • Valuation analysis at both entry and exit
  • Structuring considerations including use of debt, structuring of securities, and governance
  • Returns / LBO model incl. sensitivities on key drivers
Description of the teaching methods
In-class sessions, written memos, in-class discussions, guest lectures.

The course consists of lectures where the theory and frameworks are introduced and explained and class discussions where the students will apply the frameworks to relevant investment cases.

Case study materials and financial data will be made available in due time ahead of discussions and hand-in deadlines.
Feedback during the teaching period
Office hours for feedback
Student workload
Student workload Preparation / exam 170 hours
Lectures 38 hours
Expected literature

Indicative literature

 

The following textbooks is indicative and may be changed and/or expanded with academic articles and cases:

7 Powers: The Foundations of Business Strategy, Hamilton Helmer

Venture Capital, Private Equity, and the Financing of Entrepreneurship, Felda Hardymon

 
Last updated on 07-09-2022