CORPORATE FINANCE TRAINING COURSES

Essentials of Private Equity

Join our intensive private equity training course to explore its intricate world, from raising capital to understanding its distinct characteristics compared to the stock market.

Learn about the ecosystem, including start-ups, venture capital, and the roles of LPs and GPs. Participants will analyze real case studies and learn to evaluate the success of venture capital funds using performance indicators.

Training objectives

Understand the different types of private equity players and the role of investment managers
Understand the concepts of leverage and cost of capital
Make the legal distinction between a management company and a fund
Understand the different investment phases
Understand the different types of due-diligence
Understand the different methods of valuing an unlisted company
Understand the main shareholder clauses and their role
Understand how a venture capital fund works, and the relationship between LPs (limited partners) and GPs (general partners).
Understand and know how to interpret the different ratios used to determine the performance of a venture capital fund.

Who Should Attend

Aspiring and Current Private Equity Professionals
Corporate Executives and Business Owners
Financial Advisors and Consultants
Investment Bankers
Legal Professionals
Accountants and Auditors
Institutional Investors and Wealth Managers
Entrepreneurs
Students and Academics
Government and Regulatory Officials

Duration

2 days (14 hours)

Training fees

€2050 + VAT for one participant.
€1640 + VAT each for a group of 2 or 3 participants, only with group registration.
€1310 + VAT each for groups of more than 3, only with group registration.

Tailored Training Solutions

We offer the option to collaboratively develop customized programs.
If you don't find precisely what you're looking for, we are here to assist you in constructing the perfect solution for your organization.
Any of our courses can be delivered just for your team at a time and place that suits you. We can also co-create bespoke programmes, so if you can't find exactly what you need, we can help you build the right solution for your organisation.

Training Agenda

I- Definition, Characteristics, and the Private Equity Ecosystem

Definition and key features of private equity
Private equity vs. stock market
The role and expense of raising capital: equity cost vs. debt cost
Leverage
Minority vs. majority ownership
Active vs. passive involvement (hands-on vs. hands-off)

II- The Private Equity Ecosystem

Start-ups, growth companies, established companies
Classification of participants
Management firm vs. fund
FCP (Joint Investment Fund) vs. SCR (Venture Capital Company)
LP (Limited Partners) and GP (General Partners)
Venture capital funds
Growth capital funds
LBO (Leveraged Buyout) funds
A day in the life of an investment manager

Practical Case:
- Analysis of a French venture capital fund prospectus.

III- The Private Equity Investment Process

The Pre-Investment Phase:

Business plan analysis
Meeting the management
Operational review
Financial audit
Financial package proposal
Valuation

2. Investment Phase:

The multiples approach

Conventional financial restatements

Discounted cash flow approach: IRR and the selection of a discount rate

Financial structuring

Shareholder agreements and key clauses

3. The Post-Investment Phase:

Monitoring the investment
- Shareholder meetings
- Board meetings

4. Exit routes: Trade Sale, IPO, Secondary Sale

Practical Case:
- Examination of real-world cases: hits and misses.

IV- Performance Measurement Indicators for Venture Capital Funds

The Life Cycle of a Venture Capital Fund:

J-curve
Capital calls
Managing cash drag

2. LP and GP Relationships:

Clawback" clause

Distribution patterns

No fault divorce" clause

Compensation Structures in a Venture Capital Fund:

Carried interests

Management fees

Transaction fees

Oversight fees

Compensation adjustment mechanisms:

Ratchets

Hurdle rates

Practical Case:
- Calculation of carried interest.

3. Key Performance Indicators for Private Equity Funds:

Net asset value
Invested capital
Committed capital
PIC (Paid-In Capital)
Return on invested capital metrics
DPI (Distributed to Paid-In)
Unrealized gains performance metric:
RVPI (Residual Value to Paid-In)

Practical Case:
- Analyzing the performance indicators of a private equity fund.