Private Equity Master

In this master class we introduce different Private Market investments and their unique characteristics before delving into Private Equity investing. We discuss why investors should consider Private Equity, how they can invest, and the challenges of building a Private Equity allocation. We work through a case study to understand the importance of private equity capital in the lifecycle of a company. Then we explain the structure of a typical closed-end fund, along with the commitment-based investing approach and the resulting cashflow pattern known as the J-curve. We then discuss the different return measures such as multiples or IRR and work through examples to understand their advantages and limitations. Finally we compare different valuation approaches used in private equity and provide examples.