Fall 2024 Finance B8335 section 001

Private Equity Allocation

Call Number 17131
Day & Time
Location
W 6:00pm-9:15pm
620 Kravis Hall
Points 1.5
Grading Mode Standard
Approvals Required None
Instructors Michael Ewens
Kevin Lu
Type LECTURE
Course Description

The course "Private Equity: Capital Formation, Innovation, and Impact" focuses on the dynamics in private equity between General Partners (GPs) and Limited Partners (LPs), especially through the private equity capital formation process, the market innovations driven by the needs of both GPs and LPs and the increasing emphasis on sustainability and impact. We start with an overview of the investor’s – limited partner’s – problem: allocating capital to private equity managers, funds and co-direct investments. The course covers the major types of limited partners, including both the traditional LPs, such as pensions, endowment, and insurers, and the fastest growing global LP segments, such as sovereign wealth funds in Asia and the Middle East, family offices, and private wealth in Europe and Asia. We will investigate how illiquidity and the absence of periodic mark-to-markets stress the traditional portfolio construction problem. The private equity industry has experienced several financial innovations that have altered the risk-return profile and impacted the set of investors able to access the asset class. We will discuss secondary transactions, evergreen structures, and co-investments. Finally, given their size and political influence, institutional investors are at the forefront of sustainability and ESG initiatives. The course will cover how private equity uniquely addresses these challenges. The course includes lectures, case discussions, and guest speakers. The topics covered in the class include:

- Capital formation: the global landscape of institutional LP capital
- Sovereign wealth funds, private wealth, and family offices
- Secondary transactions for limited partner positions and co-investments
- The role of state-backed capital
- Portfolio construction and management with private equity as a major component
- ESG and other sustainability objectives
- Evergreen funds and fund extension issues

Students interested in careers in any financial industry where they expect to interact with large institutional investors or private equity investors will benefit from this course.

Web Site Vergil
Department Finance
Enrollment 68 students (74 max) as of 12:05PM Sunday, December 8, 2024
Subject Finance
Number B8335
Section 001
Division School of Business
Open To Business, Journalism
Section key 20243FINC8335B001