Private Equity Certificate Program

The foundation for your learning experience is an overview of the private equity asset class and how private equity firms function

• History & Evolution of Private Equity as an Asset Class
• Fund Structure, Management & the General Partner /Limited Partner Relationship
• Private Equity within the Private Market and Alternatives Ecosystem
• Current State of Private Equity in Emerging Markets

Learn the investment approach, value creation strategies, and valuation methods deployed by private equity.

• Common Investment Strategies
• LBO Analysis, Hurdle Rates and Returns
• Leverage as Tool for Value Creation in Private Equity
• Introduction to Valuation Methods: DCF, Comparables, and Multiples Analysis

Practical exercises, real life examples and case studies bring the private equity deal process to life. In this module, we explore the practical aspects of the key stages of an investment.

• Anatomy of the Deal Process: Stages, Workstreams & Responsibilities
• The Role of Third Parties & Their Functions
• Deal Docs: NDAs, Teaser/CIMs, IOIs/LOIs, SPA/APA, Credit Agreements
• Key Terms and Points of Negotiation in a Transaction

Explore and contrast common PE deal structures and the competing motivations and perspectives of the buyer and seller. Understand the various tax and financial considerations associated with each structure.

• Deal Structuring: Asset sales/338(h)(10) vs Stock Sales
• M&A Accounting, Purchase Price Allocation and Tax Implications
• Impact of Deal Structure on Seller Proceeds, Cash Flow and Sponsor Returns
• Leveraged Finance and Private Credit
• EBITDA, Working Capital and the Quality of Earnings

Using real case studies of both private and public investments, learn how to construct the financial models deployed by PE firms to evaluate investments.

• Private vs. Public Company Analysis
• Valuation Methodologies: DCF, Comparables and Presentation
• Middle Market Transaction Simulation & Case Study
• Defining & Calculating EBITDA
• Financial Modeling Best Practices
• Income Statement and Balance Sheet Projections

Through the completion of the middle market transaction simulation & case study, this module walks through a detailed LBO model build and explores the role and limits of the LBO model in the investment decision making process.

• Bottom-Up LBO Model Build
• Operating Model Build & LBO Integration
• Developing Transaction & Model Assumptions
• Using the LBO Model to Inform Investment Recommendations

This module begins to explore how private equity professionals think about investment opportunities, in the context of the due diligence process.

• Understanding Industries and TAMs
• Barriers to Entry & Competitive Advantage
• The Data Room Loop: Working with Management Data
• Drivers of Value in an Operating Model
• Business Segmentation & Modeling Common Revenue Builds

This module expands on \operating model builds to cover cost structures, expense modeling, and data analysis. The module concludes with a case interview and LBO build to prepare you for the private equity interview process after program completion.

• Cost Structures & Common Expense Build Modeling
• Unit Economics & Operating Leverage
• Modeling Add-Ons and Acquisitions
• The SaaS Model, Recurring Revenue Builds and Cohort Analysis
• PE Case Interview & LBO Model Build