Venture Capital & Private Equity - Introduction

Overview

This two-day course explains the working of the PE industry including VC & LBO transactions with practical knowledge in analysing and structuring such transactions including buy-outs and buy-ins. This will be an interactive session focused on reviewing, discussing and analysing role played by VC and PE firms in acquiring, re-structuring and re-sale of start-ups, mezzanine and semi-mature companies across a wide range of economic sectors and market segments.

An explanation of the working of the venture capital and private equity industry, this course gives practical instructions on analysing and structuring transactions, including buy-outs and buy-ins.

Basic understanding of financial concepts and financial statement analysis is helpful but no prior experience of VC or PE asset class investing is necessary.

Who is this for?

This course will be of benefit to financial advisers, accountants, lawyers, corporate executives and others who need to have a comprehensive understanding of the workings of Venture Capital (VC) funds, Leveraged Buy Out (LBO) funds and the PE industry in general. It will also be of benefit to those working in PE backed firms.

What will you learn?

• The venture capital/private equity industry
  • Origins, history and development of the industry
  • Participants in the industry
  • Fund raising and structures using an example fundraising document
  • Transaction types – VC, growth capital & LBO
• Investment process overview and analysis of transactions
  • Risk analysis and mitigation
  • Management team assessment
  • Business plan assessment
  • Due diligence - types and typical outputs
• Internal rate of return (IRR) and its calculation; relationship to Multiples of Money Invested (Multiple Of Invested Capital - MOIC)
• Introduction to deal structuring
  • VC deals – pre & post money valuation
  • Exit routes and exit planning
• Deal Structuring
  • Overview of LBO structuring & the use of leverage to increase IRR
  • Senior, mezzanine, loan stock and other debt – characteristics & use
  • Ordinary, preference and other share capital – sweet & sweat (management) equity
  • Other sources of finance
  • Ratchets
  • Determining an appropriate deal structure
• Investor agreements
  • Overview of key legal documents using model VC documents
  • Key terms such as liquidation preference, drag along & tag along, anti-dilution, board rights, permitted matters

It is helpful to have a basic understanding of financial concepts and financial statements. No prior experience of VC or PE is assumed.

Other related courses

Fund Accounting

Mergers & Acquisitions

Risk Management - Introduction