Private Equity

The course Private Equity, is a course within the Master of Science programmes at the Graduate School, School of Business, Economics and Law, University of Gothenburg.

To be eligible for the course Private Equity, the participant must fulfil the entrance qualifications for the Master of Science programme in Finance, Master of Science programme in Economics or Master of Science programme in Accounting and Financial Management, with the exception for 7,5 credits in microeconomics on intermediate level. For programme specific entrance requirements, see programme syllabus.

This course is issue oriented. The main question is: What is the contribution of the capital market to innovation in the economy? The focus is on two special purpose financial intermediaries; private equity and venture capital funds. We discuss and analyze the operations of the funds, their relations with the investors, limited partners, and with the users of the funds, entrepreneurs. We also examine the funds in a broader macro-economic and financial context.

The course mixes conceptual presentation, empirical tests and observations, and practical "hands on" techniques. It takes materials from financial economics, from international finance, from development economics and international trade, and from the practice of private equity and venture capital funds. The various papers assigned as readings are not parts of a textbook, most of them are research papers. Yet, in the class we focus on the managerial aspects as well to create an integrated view of what private equity and venture capital finance is all about.

On successful completion of the course, the student will be able to:

1. identify the many dimensions of private equity and venture capital finance
2. demonstrate knowledge and understanding of the macro economics and macro finance environment in which money is transferred from savers to investors in high risk capital
3. demonstrate knowledge and understanding of the financial management aspects of high risk capital, in particular the process of valuation, contracting, financing, and exit
4. demonstrate knowledge and understanding of the modus operandi of the international private equity and venture capital industry.

Lectures and seminars.

Learning outcomes 1-4 are assessed through a written individual exam and group assignments.

Individual exams shall be written individually, cooperation in formulating text, tables, figures etc. is not allowed.

If a student who has been failed twice for the same examination element wishes to change examiner before the next examination session, such a request is to be granted unless there are specific reasons to the contrary (Chapter 6 Section 22 HF).

If a student has received a certificate of disability study support from the University of Gothenburg with a recommendation of adapted examination and/or adapted forms of assessment, an examiner may decide, if this is consistent with the course’s intended learning outcomes and provided that no unreasonable resources would be needed, to grant the student adapted examination and/or adapted forms of assessment.

If a course has been discontinued or undergone major changes, the student must be offered at least two examination sessions in addition to ordinary examination sessions. These sessions are to be spread over a period of at least one year but no more than two years after the course has been discontinued/changed.

The number of examinations is limited to five.

If a student has been notified that they fulfil the requirements for being a student at Riksidrottsuniversitetet (RIU student), to combine elite sports activities with studies, the examiner is entitled to decide on adaptation of examinations if this is done in accordance with the Local Rules Regarding RIU Students at the University of Gothenburg.

The grading scale comprises: Excellent (A), Very good (B), Good (C), Satisfactory (D), Sufficient (E) and Fail (F).

Pass is required on all examination forms. The grade (A-E) corresponds to the total score a student obtains on the individual written exam (60 % of final grade) and the group assignments (40 % of final grade). To receive a pass grade (A-E) >= 50% points is required. The scale is tied to fixed score intervals:

A: 85-100%

B: 75-84%

C: 68-74%

D: 60-67%

E: 50-59%

F: <50%

The course will be evaluated upon completion. The results of and possible changes to the course will be shared with students who participated in the evaluation and students who are starting the course.