This course examines the financial, economic, and legal strategies that underlie private equity transactions in the United States and other countries. The course begins by examining how private equity firms raise money from institutional and individual investors and structure private equity funds. We will discuss the legal, financial, and economic motivation for the different types of private equity fund structures. The course then turns to how private equity funds select, invest, and manage their portfolio companies. We will discuss how venture capital firms, a particular (and very important) type of private equity investor, provide capital to start-up firms, and how other private equity firms provide capital to help more established companies, both public and private, grow and restructure. One common theme that runs through this course is how financial instruments and legal contracts between the parties involved in private equity transactions address predictable conflicts of interest. The course will center on the study of cases that highlight important concepts and issues in private equity transactions using actual historical situations. Students are expected to do fundamental analysis of the companies and transactions presented in the cases as well as to discuss how the legal environment at the time of the case affects their recommendations. Prerequisite: MGT 432a. 
Please Note: Not all courses are scheduled each semester. Complete class schedules are available upon enrollment.