Private Equity Finance (MBA)
The course “Private Equity Finance” focuses on the essential aspects of corporate finance relevant to the private equity industry. It covers topics that are critical for interviews and practice in PE investing. The course follows the “private equity cycle” of selection, valuation, and harvesting. Initially, students learn to evaluate a target company from the perspective of a private equity firm, keeping in mind the needs of investors and management. The course then delves into funding negotiations, deal structuring, and private equity investment management. Classic valuation techniques such as DCF, comparables, and APV are reviewed, along with models specific to private equity transactions (for example, the LBO model). Additionally, students will gain insight into the legal and regulatory frameworks that govern private equity finance and the ethical considerations that arise in this field. Finally, the course concludes with a study of investment exit strategies.
Current Topics in Private Equity (MBA)
Spring 2023, 2024
This course provides students an overview of recent and emerging topics in private equity that influence industry decision-makers and capital providers. Understanding the political, regulatory, and macroeconomic issues that are covered in the course is critical for private equity practitioners’ success in their deal evaluation, valuation, asset allocation and post-deal integration activities. Discussion and analysis of these topics also ensures that students entering the private equity industry are prepared for conversations about critical topics with their colleagues. The topics for this term are:
- Allocating private equity in the institutional investor’s portfolio and changes to risk and return.
- Blurring the lines between public and private equity: new fund structures and emerging regulation.
- Private equity as venture capital: growth equity and the changing investment model.
- Private equity in emerging markets.
- Does private equity matter? Exploring the impacts of private equity in firms and industries.
Research in Entrepreneurial Finance (PhD)
Spring 2023, 2024
Research in Entrepreneurial Finance explores academic research covering the formation, financ- ing, growth and outcomes of entrepreneurial firms. These firms differ from those traditionally studied in finance and economics. Such differences include ownership structure (private vs. public), size, severity of financing constraints, and the role of financial intermediaries. This course aims to understand the sources and implications of these differences. The course will not follow the traditional approach that emphasizes literature reviews. Much like one must understand how bank balance sheets work before embarking on a banking paper or how mutual fund disclosures are regulated before studying ETFs, successful entrepreneurial finance researchers are required to understand a host of rules, norms and other institutional details. Thus, the majority of lectures will focus on the background material behind the literature’s major results such as regulations, data sources, actor norms and industry trends.
Each course module/week focuses on two to three academic papers, with two goals in mind. First, students will first learn about the major research questions, facts and methods used in the literature. Papers will be both empirical and theoretical, with an emphasis on the former. Second, the course will include background or institutional setting lectures. Here, we will evaluate each week’s major paper with the following question in mind: “What major institutional setting do I need to understand to successfully replicate this paper or understand the economic phenomenon tested?”
Venture Capital [Undergraduate]
Empirical Methods in the Social Sciences [PhD]
Corporate Finance [Undergraduate]
Introduction to Financial Accounting [Undergraduate]
2010-2014 (CMU Tepper)
Empirical Methods in Corporate Finance and Accounting [PhD]
Private Equity Finance [MBA]
Venture Capital Finance [MBA]
Introduction to Entrepreneurial Finance [Undergrad] Entrepreneurial Finance: Valuation and Deal Structure [Undergrad]