JJUA54036U Private Equity

Volume 2015/2016
Content

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.

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

The course is a joint University of Copenhagen Department of Economics/Faculty of Law graduate venture introducing students to key aspects of private equity. Students completing this course will have gained an understanding of the workings and practices of private equity as well as regulatory, economic, corporate governance and public policy implications of the growth of the alternative investment industry.

Students will also have had an opportunity to study with fellow students from other departments and/or academic fields within departments, as well as gaining insights and perspectives from external speakers from the alternative investment industry, portfolio companies and regulators.
To obtain a 12 grade, students should demonstrate through their written project work a thorough understanding of micro and/or macro aspects of the alternative investment industry, in particular 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 private equity funds, 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 LPs and GPs and in relation to portfolio companies and management thereof.
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

Private Equity as an Asset Class, CH 1-8, Guy-Fraser-Sampson, Wiley Finance, 2007, pages 180
Contracts & Incentives, THR, NA, pages 23
Capital Structure, Stewart C. Myers, Journal of Economic Perspectives, spring 2001, pages 21
A Survey of Corporate Governance, Andrei Shleifer; Robert W. Vishny, The Journal of Finance, Vol. 52, No. 2. (Jun., 1997), pp. 737-783., pages 46
Limited Partnership Agreements, NA, BVCA, pages 27

Suggested supplementary material
The Economics of the Private Equity Market, George W. Fenn and Nellie Liang, Dallas FED, pages 72
Relevant legal acts, Public acts, Plesner (law firm), pages n/a

  • Category
  • Hours
  • Preparation
  • 241
  • Seminar
  • 34
  • Total
  • 275
Credit
10 ECTS
Type of assessment
Written assignment
The exam is a written paper in English on a subject written within the course outline. The subject is chosen by the student, and the student may ask the lecturers for prior approval of the subject. The paper should be of 8 - 12 pages (max. 31,000 characters incl. space) excl. index and appendixes. Submission of the paper is done electronically at the course homepage. The deadline for submission is late May, early June (a more precise date is disclosed later).
Marking scale
7-point grading scale
Censorship form
No external censorship
Exam period

The Faculty of Social Sciences plans this exam.