|This course uses the case method to study entrepreneurial and private equity finance. The course is motivated by increases in both the supply of and demand for private equity. On the supply side, the amount of private equity under management - by partnerships investing in venture capital, leveraged buyouts, distressed companies, etc. - has increased substantially in the last two decades. On the demand side, an increasing number of MBAs and others are interested in starting and managing their own businesses. The supply and demand for funds have also grown substantially outside of the U.S.
The primary objective of the course is to provide an understanding of the concepts and institutions involved in entrepreneurial finance and private equity markets. To do this, the course has been designed to be broad and comprehensive. We will explore private equity from a number of perspectives, beginning with the entrepreneur/issuer, moving to the private equity - venture capital and leveraged buyout - partnerships, and finishing with investors in private equity partnerships. For each class meeting, study questions will be assigned concerning a case study. We will discuss these questions and the material in the case for most of the class period. Before each case discussion, each student will be required to submit a memorandum (up to two pages) of analysis and recommendations. Group work is encouraged, but not required on these short memoranda. Memoranda with up to three names on them are acceptable. We will use journal articles and some lectures to supplement and enhance the case discussions. All required cases and supplementary readings will be in the CoursePack.
Preassignment: Students are responsible for a memorandum for each case we discuss in the first class. The first class assignment is detailed in the CoursePack. Students who are not registered, but are trying to add the course must attend and prepare the first week.