CORPORATE FINANCE TRAINING COURSES

LES FONDAMENTAUX DU PRIVATE EQUITY

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 

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

II- The Private Equity Ecosystem 

  1. Start-ups, growth companies, established companies 
  2. Classification of participants 
  3. Management firm vs. fund 
  4. FCP (Joint Investment Fund) vs. SCR (Venture Capital Company) 
  5. LP (Limited Partners) and GP (General Partners) 
  6. Venture capital funds 
  7. Growth capital funds 
  8. LBO (Leveraged Buyout) funds 
  9. 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 

  1. 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 

  1. 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.