Introduction to Private Equity Investments

In this one-day course, students learn the role of private equity investments. Starting with a basic description of private equity, this course shows the potential rewards and risks within the context of portfolio theory. In addition to discussing the investment characteristics, students compare private equity investments to traditional stock and bond investments. Also, comparisons are made to commodities and real estate investments. The course also covers key regulatory requirements, marketing issues, and client reporting practices.

19-Jul-2012 -- 20-Jul-2012New YorkUSD$2475
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ V.John Palicka, CFA; ] Thu Fri Level: Intermediate

CPE CREDITSCFP CREDITS
7.07.0
Private equity relationship managers, alternative investment and private equity portfolio managers, consultants and gatekeepers to asset allocation, private client financial service providers, individual investors and others involved directly or indirectly in the development of, offering of, marketing of and investing in alternative investments.
No advance preparation required.
Students will be able to:
  • Demonstrate a practical understanding of the core concepts of private equity investments
  • Know the suitability requirements for investors and calculate their utility curves
  • Explain the appeal of private equity investments in client equity investments in client portfolio construction
  • Explain the appeal of middle market investing
  • Understand J-Curve Angst strategies
  • Differentiate private equity from venture capital and hedge funds
  • Calculate returns using various valuation methods. This will be applied to venture, commoeidites, real estate, buyout opportunities.
  • Evaluate key considerations in making a private equity investment
  • Calculate appropriate returns for a private equity fund
  • Explain key exit strategies of a private equity investment
  • Know the key reporting measures of a private equity fund
  • Introduce financial engineering methods to replicate private equity
  • Knowledge of their interactions will be discussed in valuing private equity assets
  • Know how buyouts are structured
  • Know behavioral and technical analysis issues in private equity investing
A background in finance and accounting. Financial calculator (TI BA II Plus) required.
"Great course!"
"Clear examples."
"Instructor was very experienced."
"This course presented a broad overview, which provided a foundation for future courses."
  • Essentials of Corporate Finance
  • Portfolio Management - Theory & Practice
  • Hedge Funds
  • Fusion Analysis
  • Stock Investing for Professionals
    • Day 1
    • Industry Background
    • Portfolio Theory Simulation
    • Suitability and Utility Curve Considerations
    • Venture Capital and Valuation
    • Closed End Funds
    • NAV and Fee Considerations
    • Special Risks and Liquidity Concerns
    • Distressed Securities
    • Private Equity IRR calculations
    • Private Equity Reporting Standards
    • Altering the Model to Value Exotic Options
    • J-Curve Angst Considerations
    • Evaluation of Industry Returns
    • SPACS and PIPES
    • Leveraged buyout calculations
    • Comparisons of Private Equity to Hedge Funds
    • Investments in Alternative Investments
    • Exit strategies

    Day 2

    • Commodity risk and returns and uses in private equity
    • Commodity valuation: fundamental and technical approaches
    • Margin calculations
    • Real estate risk and returns and uses in private equity
    • Analysis of various real estate strategies
    • Comparisons of private equity to hedge funds
    • Entertainment financing
    • Blending alternative investments
    • Discussion of Financial engineering
    • Calculation of various risk measures

    Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

    Lunch is included for all students taking day classes.