Course Instructor
Prof. LAI, Marvin
Course Description
The course introduces the fundamentals of Venture Capital (VC) and Private Equity (PE), as well as the concepts of private markets. VC and PE are key asset classes within alternative investments. It is crucial for financial investors to assess and comprehend the risks and returns associated with these asset classes, as they have become increasingly important for many institutional investors. The course will be beneficial for students interested in the financial sector, particularly in VC and PE.
The course will cover both academic and practical aspects. Students will learn the foundations of VC/PE, which encompass a broad array of knowledge, including deal structuring, investment selection, due diligence management, valuation methods, terms in term sheets, deal negotiation, risk and return analysis, post-investment activities, and exit strategies. The performance of VC/PE and relevant fund management are also areas of study. In addition, we will learn about the recent developments in VC/PE as well as its future trends, including the impact of AI, to cover a broader scope of relevant knowledge for students.
Students will gain deep knowledge in VC/PE not only through case studies and model simulations but also through experiential learning similar to that of field VC/PE professionals. This will include a team role-play exercise to experience the art of negotiation and deal closing, which aims to mimic real-world situations.
Course Learning Outcomes
CLO1. Define the world of VC/PE investments, including the pre- and post-investment phases, as well as the different stages and types of VC/PE.
CLO2. Conduct appropriate due diligence and evaluation on VC/PE investments, including identifying investment opportunities, tools in portfolio management, and exit strategies.
CLO3. Construct financial model simulations and deal terms for VC/PE cases. Describe the ecosystem of VC and PE, including General Partners (GPs), Limited Partners (LPs), and other stakeholders.
CLO4. Illustrate the management of a VC or PE fund and its governance, and evaluate the performance, risk, and return of GP and LP.
CLO5. Analyze future trends and impacts in VC/PE, including AI and other emerging concepts.
CLO6: Identify variations of PE in private markets and strategies such as buyouts, and experience VC/PE deal negotiation.
Course Prerequisite(s)
FINA2320 Investments and Portfolio Analysis
Offering Semester in 2026-2027
First Semester
Second Semester
Major/Minor (Course Category)
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