The goal of the PE module is to introduce the students to the PE industry and to give them the tools to analyse and understand the PE industry in all its aspects, including the investment cycle, the fundraising cycle as well as legal and institutional aspects.

The objectives of the course are to give students

• understanding of and competence in Private Equity in general, and its overall relevance from a financial perspective
• the ability to identify the specific risks and opportunities that arise from investing into Private Equity
• actionable capabilities when addressing ESG-issues whether in a corporate or a portfolio investor role, or on behalf of a financial institution. 

Active participation in lectures and group work will give students a useful network after completion of the programme. 

After completing the programme, candidates are expected to have achieved the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The candidate has in-depth knowledge of:

• the Private Equity industry at a macro level
• the PE cycle, from fundraising to investing and final divestment.
• Relevant PE laws and regulation in Norway, the EEA and EU
• Different types of PE deals and strategies

Skills

The candidate is capable of:

• structuring and pricing both Leveraged Buyout and Venture Capital deals and contracts.
• selecting an appropriate exit strategy for PE deals;
• Evaluating fund performance, both on quantitative and qualitative level;
• Can negotiate fund terms;
• dealing with sustainability issues within the PE industry;
• understanding new developments within the PE industry.

General competence

The candidate is capable of:

• communicating at an advanced level with specialists in both academia and practice about complex issues pertaining to the PE industry.

Session 1: (4 days)
Module 1: Introduction to PE and the GP-LP Relationship
We introduce the industry and its key features. We proceed by looking at the fee structure the GPs (or managers of PE funds) charge and delve deeper into the relationship between the GP and the LPs (investors).

Module 2: Performance Evaluation and Contracts + Legal Matters
In this module we learn how to interpret and analyse the performance of PE funds, given the difficulties the industry poses. We then broaden our scope and look at the contracts between the GPs and LPs and also touch upon the regulatory rules.

Session 2 (3 days)
Module 3: Valuation and Deal Structures
In this module we learn valuation techniques suited towards PE investments, both for start-ups and mature firms. We learn how to structure complex debt structures and how to structure the contracts between the GP and the firms they acquire.

Module 4: Value Generation, ESG and Exiting the Investments
In the final module we discuss how PE firms can maximise the value of the firms they acquired and how to do that in a responsible manner. We also discuss how to exit these investments given the temporary nature of the PE industry.

Session 3 (2 days)
Module 5: Assessment
In this module the students present the results of their reports and receive critical feedback.

The group report

The programme is concluded by the students’ preparing an independent group report which represents 7.5 ECTS. The report may include a company case or a more generic topic within the scope of PE, addressing one of the specific learning objectives. The choice of topic is to be approved by the course responsible, and the groups will also receive limited supervision when working on the reports.

The students are assessed on their group reports, and how these are presented and defended. The report also contributes to the requirement for an independent assignment as part of the Executive Master in Applied Finance.