Private equity and financing innovation
Etablissement : Faculté de Gestion, Economie & Sciences Masters
Langue : Anglais
Formation(s) dans laquelle/lesquelles le cours apparait :
- Master Finance Responsable Durable [ECTS : 3,00]
Période : S4
This course explores the field of private equity and its essential role in financing and fostering innovation within companies. Private equity involves investing in non-publicly traded companies with the goal of creating value and generating high returns for investors. This form of investment plays a crucial role in the growth of innovative businesses by providing them with the necessary capital to expand, innovate, and compete effectively in the market.
Module 1: Introduction to Private Equity and Investment Strategies
Definition of Private Equity
- Explanation of what private equity is.
- Types of private equity firms and funds.
Fund Structure and Private Equity Operations
- General Partners (GPs) and Limited Partners (LPs).
- How private equity funds operate.
Module 2: Performance Analysis and Risk Management
Fundraising and Performance
- Fundraising processes in favorable market conditions.
- Sensitivity of private equity funds to economic cycles.
Performance Analysis
- Empirical studies on fund performance.
- Performance metrics: IRR, TVPI, DPI.
Risks Associated with Private Equity
- Illiquidity risks.
- Initial volatility.
- Dependence on managers’ expertise.
Module 3: Investment Process and Exit Strategies
Investment Strategies
- Venture Capital (VC)
- Growth Capital
- Leveraged Buyout (LBO)
- Mezzanine Financing
- Secondary Investments
- Distressed Debt
- Infrastructure
Direct Investments vs. Fund of Funds (FoF)
- Advantages and disadvantages of direct investments.
- How Fund of Funds operate.
Exit Methods
- Initial Public Offering (IPO)
- Secondary Sale
- Management Buyout (MBO)
Key Risks and Costs
- Regulatory and tax risks.
- Transaction, administrative, audit, management, and performance costs.
Module 4: Case Studies and Practical Applications
Summary and Future Perspectives
- Importance of private equity in a diversified portfolio.
- Future trends and market outlook.
Through these modules, students will develop a deep understanding of private equity’s role in innovation financing and gain practical skills to manage private equity investments effectively.
