Private Equity Module

What is Private Equity and why invest in PE Funds

Difference between PE Funds, Hedge Funds and other Alternative Asset Classes

Venture Capital and Buyout Funds

Private Equity in US, Europe and Emerging Markets

Private Equity Fund Structures; General Partner, Limited Partner, Fee structure, Carried Interest, Drawing and returning capital, lock up period

Investment Process; Business Plan, Due Diligence, Financing Structure, Drawdown, Investing period

Degree of Leverage

Information Deficiency, managing and avoiding conflicts, liquidity concerns, Syndicationand Completion

Performance Measurements and Challenges

Modern Portfolio Theory and Private Equity; return, volatility,correlation and Efficient Frontier

Performance Attribution by Partner, Strategy and Event

Performance Prediction

Sample Selection

Impact of Limited Liquidity

Investment Rationale for Institutional Investors

Asset Allocation, Correlation with other Asset Classes

Managing and Monitoring a Portfolio of PE

Risk Management and PE

Management Fee Structure

Hurdle Rate