AØKA08093U  Private Equity – From Venture Capital to Buyouts

Volume 2013/2014
Education
MSc in Economics
Content
The course is a joint University of Copenhagen Department of Economics/Faculty of Law graduate course introducing students to key aspects of private equity. The course is designed to be of interest to students of law, economics, finance and public policy, emphasizing the interrelationships between academic disciplines within this field.
Learning Outcome
To obtain a 12 grade students should demonstrate a thorough understanding of micro and/or macro aspects of private equity in broad terms and/or a thorough understanding of a particular topic within the overall framework of the course.
On a macro level, students should demonstrate a thorough understanding of industry drivers, such as the growth in savings deployable, the effects of corporate governance and regulation on the attractiveness of private versus public capital as well public policy issues such as transparency, any systemic risks associated with financial innovation and in particular the trading and transfer of risks and taxation.

On a micro level, students should demonstrate a thorough understanding of the structures and workings of venture capital and private equity firms, in particular on the screening, investment, value creating and exit cycle, on capital structure issues as related to the stage and risk profile of portfolio companies, on the control and agency issues related to governance as well as of the contracts used to regulate principal/agent relations and to ensure alignment of interest, both in relation to limited partners and general partners and in relation to portfolio companies.

As this is a multi disciplinary course, students may select a topic of their own choosing within law, economics, finance and public policy for their project work. Students may choose to submit a paper with a more narrow focus than described above and achieve a 12 grade based on a thorough understanding of the subject matter in question and an overall understanding of the course material
Syllabus
Literature Faculty Author Publisher Pages

Required reading
Private Equity as an Asset Class, Ch 1-8, SPH, Guy-Fraser-Sampson, Wiley Finance, 2010, 180p.
Contracts & Incentives THR, THR, NA, 23p.
Capital Structure PNS Stewart C. Meyers, Journal of Economic Perspectives, spring 2001, 21p.
A Survey of Corporate Governance, JG, Andrei Schleifer, Robert W. Vishny , TheJournal of Finance, Vol. 52, No.2. (Jun., 1997), pp.737-783, 46p.
Limited Partnership Agreements, TKA, NA, BVCA ,27p.
Total 297 pages

Suggested supplementary material
The Economics of the PrivateÉquity Market, PNS, George W. Fenn and Nellie Liang, Dallas FED, 72p.
Relevant legal acts. JLH. Public acts. Plesner (law form) n/a

Formal training at a bachelor and/or master level and practical experience in finance, business strategy, corporate governance and contract law would be helpful. Students should have en interest in financial markets, management, innovation, regulation and contracts seen mainly from a practical perspective. Basic theories and concepts from finance and law will be introduced during the course to facilitate learning for students of economics and finance as well as for law students.
3 hours of lectures per week for 14 weeks.

The course is structured as follows:
Part 1 - introduction to Private Equity (8 weeks of lectures)
• Faculty: Jesper Lau Hansen (Law) Jan Gunnarson (Econ) Peter Norman Sorensen (Econ), Soren Hovgaard (Econ), Tomas K. Andersen (Law)
• Guest speakers from the venture capital and private equity industries, advisors and regulatory authorities. Previous speakers have included; Poul Nyrup Rasmussen, former prime minister of Denmark, Steen Thomsen, professor at CBS, as well as industry experts from Nordic Capital, Axcel, EQT, Northzone Ventures, ATKearney, SEB Enskilda, Plesner Law Firm and McKinsey & Co.
Part 2 - independent project work (approx. 8 weeks)
Credit
10 ECTS
Type of assessment
Written assignment, 8 weeks
Econ students (10 ECTS points): Take home paper (format rules for the economic seminars apply. For detailed requirements, see the Student Handbook.)

Law students (10 ECTS points): Take home paper (max. 35,100 characters; front page, index and list of references excluded).

General rules applicable for both Econ and Law students:
Papers should be submitted in English. Students may choose to submit papers in Danish provided if so indicated upon registration for the course.
Aid
All aids allowed
Marking scale
7-point grading scale
Censorship form
External censorship
100 % censurship
Exam period
Will be updated before the start of the semester
Re-exam
Same as ordinary. But if only a few students have registered for the re-exam, the exam might change to an oral exams with a synopsis to be handed in. This means that the examination date also will change.
Criteria for exam assesment
The Student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.
  • Category
  • Hours
  • Lectures
  • 42
  • Preparation
  • 209
  • Exam
  • 24
  • Total
  • 275