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2019/20 Undergraduate Module Catalogue

LUBS3116 Private Equity

10 creditsClass Size: 90

Module manager: Abdulkadir Mohamed
Email: A.Mohamed@leeds.ac.uk

Taught: Semester 2 (Jan to Jun) View Timetable

Year running 2019/20

Pre-requisite qualifications

LUBS2205 Corporate Finance OR
LUBS2206 Corporate Financial Management

This module is not approved as a discovery module

Module summary

The objective of this module is to provide you with an overview of the structure of the private equity market, the operation of the various stages of the investment cycle and give you a real insight into how private equity firms can facilitate value creation in the companies in which they invest. We want to help you understand how financial theory is really applied in practice and make this module as realistic as possible. To that end we have worked closely with a prominent Leeds-based private equity firm in developing this module and will be teaching you using specially prepared and bespoke case study examples based on their investment experiences.

Objectives

Private equity is medium to long-term finance provided in return for an equity stake in unquoted companies and is typically used to support management buyouts and management buy-ins in mature companies. The objective of this module is to show how financial theory is applied in practice by providing an insight into the structure of the private equity market, the operation of the various stages of the investment cycle and demonstrate how private equity firms can create value in the companies in which they invest through financing structures and oversight of operational management.

Learning outcomes
Students completing the module will be able to:

1. Identify and evaluate relevant academic theory, operating practice, alternative financing structures and financial models used in the private equity sector;
2. Analyse the various professional and commercial interests operating in the private equity market in its regulatory and social context; and
3. Critically evaluate the importance of private equity in promoting innovation, growth and corporate restructuring for private companies.

Skills outcomes
Students completing the module will have the opportunity to:
- Identify alternative commercial perspectives and opportunities in a private equity context, extract relevant information and define an investment plan from complex structured and unstructured scenarios and data
- Apply their numerical and statistical skills to manipulate and interrogate financial and other numerical data
- Structure and communicate quantitative and qualitative information, ideas, analysis, argument and commentary in the form of a professional quality business report


Syllabus

Indicative topics include:
- Introduction to private equity
- How private equity firms work
- The investment process
- Private equity strategies
- Value creation in portfolio companies
- Exiting investments
- Fund performance and valuation measures
- Commercial, legal, social, ethical and governance issues in private equity
- Current issues in private equity

Teaching methods

Delivery typeNumberLength hoursStudent hours
Lecture101.5015.00
Practical12.002.00
Seminar51.005.00
Private study hours78.00
Total Contact hours22.00
Total hours (100hr per 10 credits)100.00

Private study

Students will be required to undertake specific pre-reading and question/short case study preparation in advance of the one hour seminars based on the material introduced in the lectures. The short case studies are intended to help students understand how financial theory can be applied in a private equity context.

The two hour practical session will involve pre-reading and preparation for a more complex and evolving case study with the discussion focussed on the alternative commercial interests and relationships between the private equity firm, company management and the banks. The practical session will be facilitated by relevant practitioners as well as academic staff.

Opportunities for Formative Feedback

Students will be able to monitor their progress through fortnightly seminar sessions. Outline solution points and answers for the seminar questions and case study examples will be made available.

Methods of assessment


Coursework
Assessment typeNotes% of formal assessment
Report3,000 word Group report100.00
Total percentage (Assessment Coursework)100.00

The resit for this module will be 100% by 3,000 word report.

Reading list

The reading list is available from the Library website

Last updated: 17/02/2020

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