UCL School of Management

Module Fact Sheet

MSIN0164: Private Equity and Venture Capital

Taught by
Level
Masters, level 7
Terms
2
Delivery method
The module will be delivered over 5 weeks in 3-hour blocks.
Assessment
Group coursework 70%, Examination 30%
Previous Module Code
N/A

Course overview

Private Equity and Venture Capital (PEVC) aims to explore the application of principles of private equity (PE) and venture capital (VC) to the financing of leveraged buyouts and early-stage ventures. It covers different private equity strategies and focuses notably on leveraged buyouts (LBOs) and VC. The module deals with topics such as the structuring and financing of deals, exiting investments, calculating investments’ internal rate of return (IRR) and multiple of money (MoM), as well as the distribution of returns to the partners at a PE fund. The module then moves on to VC investments, and considers topics like term sheets, successive rounds of financing, and the role that angel investors can play in financing new ventures. The module will look at the range of risks faced by the general partners and limited partners of PE firms. Other topics may include growth equity funds, alternative PE investments such as distressed PE and real asset investing.

Learning outcomes

Learn how private equity and venture capital investments are analyzed and made Look at the financial structuring of an LBO understanding value creation in a deal Explore the VC funding cycle and the early-stage investment process Learn about pre-money and post-money valuation, liquidation preferences and dilution Differentiate between the different forms of exit from PE & VC investments, notably via an Initial Public Offering

Assessment summary

Group coursework 70%, Examination 30%

Essential reading

Textbook:

Zeisberger, C.; Prahl, M.; White, B.; “Mastering Private Equity: Transformation via Venture Capital, Minority Investments and Buyouts”. 2017. Wiley. 1ed.

Suggested Reading:

Timmons, J.; Adams, R.;‎ Spinelli, S.; “New Venture Creation: Entrepreneurship for the 21st Century”. 2014. Pearson Education Limited .7ed

Past versions of this module

MSIN0164 18/19

Last updated Thursday, 27 June 2019