Course 2022-2023 a.y.

The course is divided into four different sessions aiming to give a whole and deep understanding of the private equity and venture capital business:

1. Private equity and venture capital in the financial system.
   • The special role of private equity and venture capital industry: why are they necessary in a modern economy?
   • Market trends in Europe and in US.
   • Competitive models of private equity and venture capital: angels and informal investors; incubators; start-up financer; closed-end funds; merchant banks; vulture funds.
2. Regulatory and legal issues.
   • Regulations and supervision towards investing in non financial firms.
   • The functioning of private equity fund: management fee and carried interest; managers and investors.
   • Legal and fiscal issues for venture capital investment schemes: European versus US and UK patterns (closed-end fund, venture capital fund, Sbic, VCT, angel investing).
3. Management of a private equity and a venture capital fund.
   • Introduction to different categories of investment: new ventures, start up, young firms, high potential firms, family owned firms and turnaround involved companies.
   • The value chain of investing in firms: a broad vision.
4. The valuation of the target company: how to evaluate and how to manage the deal?
   • Management issues: managing the single investment, funding process, managing the portfolio of investments, exit way process.

• Recognize how the different equity investors in the investment banking and financial markets activities are reshaping their investment strategies to gain a strong competitive advantage and an effective performance.
• To identify, among the different investment strategies put in place by private equity and venture capital investors, which are the main investment structure utilised into different legal and fiscal framework.
• To identify the phases of a deal – origination, implementation and execution – in the different segments of the equity investment.

• Analyze the needs of a corporate client and to identify the best financial solution available to tackle them by using equity capital.
• Analyze the needs of start-ups and to identify the best financial solution to support the launching of the company
• Structure a private equity transaction or a venture capital transaction and coordinate the different parties involved in the transaction itself.
• Set up the best approach to pitch a potential customer for an advisory mandate.
• Demonstrate organizational skills in collecting the relevant information necessary to the deal structuring.
• Being ready to invest into private equity and venture capital asset class
• Being ready to face an interview within the private equity and venture capital industries.

• Face-to-face lectures
• Online lectures
• Guest speaker's talks (in class or in distance)
• Exercises (exercises, database, software etc.)
• Case studies /Incidents (traditional, online)

The learning experience of this course is mainly based on on-line lectures. However, each of the four modules set forth in Section 1 is accompanied by case discussions and presentations by external guest speakers. The use of cases and external speakers aims at better connecting the body of knowledge covered in the course with real life examples, typically focused on complex investment banking transactions. Furthermore, the interaction between the instructor and students through on-line live sessions helps students understand how professionals in the field approach a transaction and organize it in a structured process going from the deal origination to the final deal execution. The usage of exercises and sotwares enable students to a better understanding of professional best practices.

The exam is based on two different options: a) two partial exams with thirty multiple choices questions each, b) a general exam at the end with sixty multiple choices questions. In both cases, multiple choices cover both small cases, exercizes and theoretical knowledge of the content. Moreover, both for partial exams and for general exam, a group assignment will be valuated.

• Slides and ad hoc readings available in the Bboard Platform.
• The book: S. CASELLI, G. NEGRI, Private equity and venture capital in Europe, Third Edition, Elsevier Academic Press, 2021.
• Videos available in the Bboard Platform.
• Text of case studies available in the Bboard Platform.
• Softwares and exercises available in the Bboard Platform.

The course is divided into four different sessions aiming to give a whole and deep understanding of the private equity and venture capital business:

1. Private equity and venture capital in the financial system.
   • The special role of private equity and venture capital industry: why are they necessary in a modern economy?
   • Market trends in Europe and in US.
   • Competitive models of private equity and venture capital: angels and informal investors; incubators; start-up financer; closed-end funds; merchant banks; vulture funds.
2. Regulatory and legal issues.
   • Regulations and supervision towards investing in non financial firms.
   • The functioning of private equity fund: management fee and carried interest; managers and investors.
   • Legal and fiscal issues for venture capital investment schemes: European versus US and UK patterns (closed-end fund, venture capital fund, Sbic, VCT, angel investing).
3. Management of a private equity and a venture capital fund.
   • Introduction to different categories of investment: new ventures, start up, young firms, high potential firms, family owned firms and turnaround involved companies.
   • The value chain of investing in firms: a broad vision.
4. The valuation of the target company: how to evaluate and how to manage the deal?
   • Management issues: managing the single investment, funding process, managing the portfolio of investments, exit way process.

• Recognize how the different equity investors in the investment banking and financial markets activities are reshaping their investment strategies to gain a strong competitive advantage and an effective performance.
• To identify, among the different investment strategies put in place by private equity and venture capital investors, which are the main investment structure utilised into different legal and fiscal framework.
• To identify the phases of a deal – origination, implementation and execution – in the different segments of the equity investment.

• Analyze the needs of a corporate client and to identify the best financial solution available to tackle them by using equity capital.
• Analyze the needs of start-ups and to identify the best financial solution to support the launching of the company
• Structure a private equity transaction or a venture capital transaction and coordinate the different parties involved in the transaction itself.
• Set up the best approach to pitch a potential customer for an advisory mandate.
• Demonstrate organizational skills in collecting the relevant information necessary to the deal structuring.
• Being ready to invest into private equity and venture capital asset class
• Being ready to face an interview within the private equity and venture capital industries.

• Face-to-face lectures
• Online lectures
• Guest speaker's talks (in class or in distance)
• Exercises (exercises, database, software etc.)
• Case studies /Incidents (traditional, online)
• Group assignments

The learning experience of this course is mainly based on on-line lectures. However, each of the four modules set forth in Section 1 is accompanied by case discussions and presentations by external guest speakers. The use of cases and external speakers aims at better connecting the body of knowledge covered in the course with real life examples, typically focused on complex investment banking transactions. Furthermore, the interaction between the instructor and students through on-line live sessions helps students understand how professionals in the field approach a transaction and organize it in a structured process going from the deal origination to the final deal execution. The usage of exercises and sotwares enable students to a better understanding of professional best practices.

The exam is based on two different options: a) two partial exams with thirty multiple choices questions each, b) a general exam at the end with sixty multiple choices questions. In both cases, multiple choices cover both small cases, exercizes and theoretical knowledge of the content. Moerover, a group assignment will be evaluated.

• Slides and ad hoc readings available in the Bboard Platform.
• The book: S. CASELLI, G. NEGRI, Private equity and venture capital in Europe, Third Edition, Elsevier Academic Press, 2021.
• Videos available in the Bboard Platform.
• Text of case studies available in the Bboard Platform.
• Softwares and exercises available in the Bboard Platform.