Course Details

Survey of Private Equity

This two-credit course will introduce students to the legal and financial aspects of private equity transactions, a category of high-risk, high-reward investing. There are no prerequisites for the class, and no prior knowledge of business or financial matters is required. The intended audience for this course includes any student who would like to know more about private equity and the private equity industry, regardless of their prior backgrounds or future career interests. There will be a scheduled two-hour final exam. Students in this class this class cannot enroll in Private Equity Transactions; students who have previously taken Private Equity Transactions cannot enroll in this class. As of year-end 2016, private equity was a $4 trillion industry. As of mid-2017, there was approximately $1.5 trillion of capital currently available to fund managers for private equity investments, including $842 billion (as of March 2017) for leveraged acquisitions. Although the industry was primarily a United States domestic activity when it originated approximately 40 years ago, private equity has now expanded to the rest of the civilized world, and includes investing activities in emerging markets as well as developed countries. Topics covered in the class include an introduction to private equity, private equity funds and the private equity industry, the history and development of the private equity industry, investments in entrepreneurial business ventures (including angel and venture capital investing), leveraged acquisitions, initial public offerings, distressed debt and troubled company turnaround investing, debt and equity financing of business enterprises, and an insider’s look at the principal players involved in private equity investing activities, including private equity investment professionals, lawyers, accountants, investment bankers, business managers and business owners. The class will refer to relevant legal, tax, accounting, securities law and governmental regulatory issues, in each case from the perspective of the relevant participants in private equity activities, In this class, I expect that students will expand their core competencies in business and financial matters, in each regardless of their prior backgrounds or future career interests. I also expect that students will gain a better appreciation of financial market behavior, and the roles and incentives of various professionals who work on significant business transactions. I also anticipate that students will gain a better appreciation of international and cross border transactions, and the critically important role of cultural considerations in business transactions.

Catalog Number: BUSCOM 728


Course History

Spring 2018
Title: Survey of Private Equity
Faculty: Lutz, Karl E. (courses | profile)
Section: 1     Credits: 2.0
Capacity: 70     Actual: 66