Course Introduction

Private equity is an investment activity in which dedicated funds acquire controlling interests in mature businesses with the objective of improving those businesses and selling them after five years post investment. The private equity buyout industry globally has over €3.5 trillion ($3.8tn) of assets under management and considers a mature asset class with a well-defined role as a financing tool for developed businesses. The industry merits special consideration not only because of its scale but also because of the unique characteristics of the market compared to other sources of equity financing.

Private Equity is becoming an increasingly important alternative to public capital markets and merits investigation based on its increasing size and importance as a source of equity capital for mature businesses. Private equity is of interest also as it is moving in the opposite direction to public capital markets. It is inherently about “stock selection” and “active management”, but active management in public equity markets appears to be becoming increasingly “unfashionable”. This Oxford Management Centre Private Equity Master class is pitch to both individual and institutional investors.

This Private Equity Master Class will highlight:

• The structure of Private Equity Market
• Operation of the Private Equity Industry
• Investment Process of Private Equity Market
• Performance of Private Equity Funds
• Exit routes for Private Equity Funds

Objectives

This Oxford Management Centre training course has been designed to provide you with up-to-date knowledge of Private Equity Industry and Private Equity Fund Performance.

At the end of this Private Equity Masterclass training course, you will learn to:

• An insight of Private Equity Industry
• Financing structures of the Private Equity Funds
• Financial models used in the Private Equity Industry
• Evaluate Private Equity Investment
• Assessing Private Equity Fund Performance and exit routes

Training Methodology

This Private Equity Masterclass will be structured as a highly participative workshop with formal presentations, latest research articles, interactive examples, and case studies. Relevant examples are provided to illustrate the practical application of each of the topics covered and to learn the operation of Private Equity Funds.

Organisational Impact

This Private Equity Master Class will provide participating delegates with the following:

• An understanding of Private Equity Industry
• Up to date knowledge of the Private Equity Market
• Skills of investment selection process.
• Raised awareness of new financial opportunities
• Ability to assess the performance of Private Equity Funds

Personal Impact

Delegates will develop an understanding of:

• Private Equity Market
• Key players in Private Equity Industry
• Investment selection process in Private Equity Industry
• A good assessment of Private Equity Fund Performance
• The importance of exit routes for Private Equity Funds

Who Should Attend?

This would be relevant to all of those involved in (or planning to join) making investment decisions in private equity industry including private individuals, financial and non-financial institutions, non-profit organizations, and government.

This Private Equity Master Class is suitable to a wide range of professionals but will greatly benefit:

• Financial Accounting Team Members
• Financial Planning and Budgeting Professionals
• Strategic Planning and Head Office Team Members
• Corporate Communication and Investor Relations Professionals
• Investment Analysts and Advisers
• Traders
• Investors in general

Course Outline

DAY 1

Overview of Private Equity Industry

• Introduction to private equity market
• Cyclicality of private equity industry
• Statistics on the private equity industry
• Recent regulatory activity
• The outlook of private equity industry
• Benefits and limitations of listed private equity firms

DAY 2

Private Equity Fund Economics

• Private equity firms and general partners
• Investors in private equity funds
• Private equity and limited partnership
• Advisors and agents
• Main types of professional advisors
• Fund due diligence
• LP investment process
• LBO modelling

DAY 3

Performance Measurement In Private Equity

• Measures of private equity fund performance
• Benchmarking private equity performance
• Academic findings on the performance of private equity funds
• Why the performance assessment of private equity remains difficult
• Estimating the risk of private equity investments
• Risks of investing in emerging economies
• Investment characteristics

DAY 4

Early Stage Investing

• What is angle investing
• What motivates business angel
• Angel investment process
• Recent developments and trends
• What is venture capital
• Venture capital investment process
• The venture capital contract
• Alternative source of venture capital finance

DAY 5

Private Equity Exits

• Overview of exit process
• Steps to exiting a private equity investment
• Exit Strategies
• Common exit methods
• International evidence of exit methods
• Academic evidence on exit strategy