Private Equity and Venture Capital 2400-ZEWW1003

Course Content (30 hours):
1. Introduction to Private Equity and Venture Capital (4 hours)
o Characteristics of PE and VC funds.
o Differences between VC and PE funds and other forms of business financing.
o Overview of selected PE and VC funds operating in Poland.
o Characteristics and importance of other players operating in the investment sector: limited partners, providers of financing, advisors, etc.
o Case study: What makes a company attractive to a PE or VC fund?
2. The Investment Process (4 hours)
o Identifying attractive investments:
 Investment criteria and strategies of the funds.
 Methods of sourcing new projects.
o Due diligence: key financial, legal, and market aspects.
o Case study: Evaluation of potential acquisition targets.
3. Valuation (4 hours)
o Basic valuation methods: market multiples, VC methods.
o Discussion: What financial and non-financial aspects impact the valuation of the company?
o Key elements considered in company’s valuation:
 Growth and profitability profile
 Cash generation
 EBITDA adjustments
 Transaction structure
o Workshop: Valuation of a company
4. Financial modelling (4 hours)
o Description of the purpose of the financial modelling
o Key elements of financial model:
 Growth assumptions
 Transaction structure
 NWC / Net debt modelling
 Scenario analysis
o Case study: Preparation of the financial model
5. Exit Strategies (2 hours)
o Target return levels for PE/VC funds.
o Methods of generating returns: performance growth, financial leverage, multiple arbitrage.
o Exit routes for the private equity
 Trade sales
 Secondary buyout
 IPO
 Other (MBO, dividend recap, write-off)
o Workshop: Calculating fund returns under different scenarios.
6. Key Elements of an Investment Agreement (2 hours)
o LOI and Term sheet – description of the key clauses (e.g. valuation and transaction structure, liquidation preferences, board rights).
o Description of the key investment documents (SPA, SHA, financing documentation)
o Simulation: Negotiations between investors and sellers.
7. Portfolio monitoring (2 hours)
o Setting up the managerial reporting and KPI tracking
o Value creation plans
o Introduction of the proper Management Board
o Workshop: Evaluation of the asset / portfolio performance
8. Current Trends in the PE and VC Industry (2 hours)
o ESG and sustainability in investments.
o New technologies as an investment area.
o Macroeconomic trends affecting Private Equity industry (interest rates, inflation, geopolitical situation)
o Discussion: What are the most promising directions for the PE and VC market?
9. Team Case Study Presentations (6 hours)