RSM2314 Private Equity and Entrepreneurial Finance Alexander Dyck [email protected] TARGET AUDIENCE Students interested in consulting, investment banking, entrepreneurship, venture capital, private equity, and funds management (e.g. as an institutional investor) should find this course of interest. The course is recommended for students following the corporate finance/investment banking major. This course is also useful for those involved in the CDL, highlighting financial issues and how they can and are addressed. COURSE MISSION The last decades have revealed a significant increase in the demand for and supply of private equity (e.g. venture capital and Leveraged Buyout Funds). The course aims to improve students’ ability to understand concepts and institutions in entrepreneurial finance or private equity. The course will provide students with skill sets so they can analyze and understand entrepreneurial financing opportunities and private equity from multiple perspectives: the perspective of the individual/firm seeking and receiving private equity financing for their project; the perspective of the private equity fund; and the perspective of the limited partners that provide finance for private equity funds. The course utilizes tools and frameworks from economics, finance, strategy, accounting and law, applying them to case situations. COURSE SCOPE The course will be divided into three sections: Users of private equity – This section focuses on the challenges entrepreneurs/managers face in attracting finance to fund their ideas. Students will be required to apply a qualitative framework to assess an idea; to apply a quantitative framework to value the opportunity; and to understand the role of contracts to align incentives for value creation. Private equity partnerships – This section focuses on issues private equity partnerships face when they evaluate, choose and manage private equity investments. This section evaluates methodologies as well as possible ways to improve them. Private Equity investors - This section focuses on the challenges facing private equity investors, be they endowments, pension plans, family offices, or fund managers. The section highlights issues in performance measurement and the evolution of the industry. REQUIRED RESOURCES Course package of case studies and textbook, “Venture Capital and the Finance of Innovation,” by Andrew Metrick and Ayako Yasuda, second edition. COURSE FORMAT Case discussions, lecture, and general class discussion, with occasional professional visitors. EVALUATION AND GRADE DISTRIBUTION Component Due Date Weight Class Participation Ongoing 30% Case Write-ups, Ongoing 20% Problem Sets and Quiz Investment Committee 25% Project Exam 25% .