2020/21 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 2020/21

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 type	Number	Length hours	Student hours
Lecture	10	1.50	15.00
Practical	1	2.00	2.00
Seminar	5	1.00	5.00
Private study hours			78.00
Total Contact hours			22.00
Total hours (100hr per 10 credits)			100.00

Private study

This could include a variety of activities, such as reading, watching videos, question practice and exam preparation.

Opportunities for Formative Feedback

Your teaching methods could include a variety of delivery models, such as face-to-face teaching, live webinars, discussion boards and other interactive activities. There will be opportunities for formative feedback throughout the module.

Methods of assessment

Coursework

Assessment type	Notes	% of formal assessment
Report	3,000 word Group report	100.00
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: 10/08/2020 08:41:47

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