NEW 2025 GLOBAL PRIVATE EQUITY CERTIFICATE

NEW 2025 GLOBAL PRIVATE EQUITY CERTIFICATE free download

Private Markets, Alternative Investments, Private Equity, Stock valuation, CFA, Capital Market, M&A

Private Equity

Private Equity or PE is a type of investment fund that invests capital in private companies; or public companies that have financial problems and take them private. In this way, investors with capital in PE funds can take control through shares and make other operational changes to increase capital gains. They can then resell their ownership shares at a higher price.

PE funds are usually small in size with high-quality personnel. They can invest in many businesses in different industries, regardless of the stage of the business's life cycle. PE funds mainly raise capital by calling for external capital, usually from investment companies or individual investors. The target of PE funds in the Vietnamese market is companies with great growth potential, or companies facing financial difficulties and needing management support.

After investing capital in these companies, PE funds will work closely with management to improve the company's operations, cut unnecessary costs and inefficient work-related issues. Unlike hedge funds, PE funds hold their investments for a long time, up to 10 years, before selling them with the goal of making a profit.

Managers of private equity (PE) and venture capital (VC) firms have the same goal in mind: maximizing returns. Yet PE buyout and VC early-stage funds go about it in very different ways. Many prospective investors fail to appreciate that the two most popular alternative asset classes adopt often antithetical methods to drive performance. PE fund managers do not need to diversify as much as their VC counterparts. There are two main reasons for that:

· They control a portfolio asset via majority ownership or contractual terms such as supervoting rights. Unlike VCs, they can take resolute decisions without the need to placate management or co-investors.

· They target mature companies that generally do not face the kind of business and market uncertainty that affects young firms. Consequently, with leveraged buyouts, the probability of failure is much lower.

Private Equity Certificate

Topic 1 Private Markets Essentials

Gain essential skills for the private markets, including fixed income securities analysis, financial statement analysis, and financial modeling. In this Topic, you’ll learn to calculate bond metrics, understand the basics of derivatives for risk mitigation, distinguish business forms, analyze financial reports, forecast performance, and integrate financial statements for strategic forecasts.

Sub-Topic 1: Fixed Income and Derivatives Concepts

Students will be equipped to describe the features, cashflow structures, and market segments of fixed income securities, as well as calculate bond prices, yields, and yield spread measures for both fixed-rate and floating-rate instruments. They will also demonstrate an understanding of interest rate term structures, the basics of derivatives pricing and valuation, and interpret measures to assess risk and return in fixed income investments.

Sub-Topic 2: Accounting Concepts

Students will compare business forms, describe corporate features, and differentiate between public and private entities. They'll demonstrate an understanding of revenue and expense recognition, reporting non-recurring items, and accounting policies, as well as intangible asset, financial instrument, and noncurrent liability reporting. Students will describe financial statement linkage, prepare cash flows, convert methods, contrast IFRS and US GAAP, and calculate ratios for analysis and forecasting.

Sub-Topic 3: Introduction to Financial Modeling

Students will proficiently utilize historical data, ratio analysis, and assumption development to create financial predictions. They will also demonstrate the ability to construct detailed financial models integrating the Income Statement, Balance Sheet, and Cash Flow Statement, while refining forecasts iteratively and resolving circular references to ensure model integrity.

Topic 2 Private Equity

Have a clear understanding of private equity, focusing on value creation and the synergy between private equity firms and portfolio company managers. You'll be equipped to navigate through private equity strategies for different company life stages, including venture capital, growth equity, and buyouts.

Sub-Topic 1: Introduction and Value Creation in Private Equity

Students will be able to explain sources of value creation in private equity and how private equity firms align their interests with those of the managers of portfolio companies.

Sub-Topic 2: PE Strategies, VC, Growth Capital and Buyout Equity

Students will be proficient in discussing private equity strategies over the company life cycle and describing the characteristics of venture capital, growth equity, and buyout equity.

Sub-Topic 3: Valuation of Private Equity Investments

Students will be able to interpret both the LBO model and the output of the VC method effectively.

Sub-Topic 4: Exiting PE and Risks

Students will be capable of explaining alternative exit routes in private equity and their impact on value, while also discussing the risk and return associated with private equity investments compared to other investments within a Strategic Asset Allocation (SAA) framework.

Topic 3 Private Debt for Private Equity Practitioners

Explores private debt instruments and their applications in take-private transactions, focusing on their structures, terms, conditions, and providers, and the broader financial ecosystem. You'll gain a comprehensive understanding of credit risk, methodologies for assessing corporate creditworthiness through both qualitative and quantitative lenses, and the implications for private debt valuation.

Sub-Topic 1: Private Debt Instruments

Students will be able to compare and contrast various private debt instruments available to facilitate take-private transactions.

Sub-Topic 2: Private Debt Structures and Providers (Ecosystem)

Students will be able to explain key private debt structures and describe the ecosystem of private debt providers, demonstrating an understanding of how these elements interact within financial markets.

Sub-Topic 3: Credit Analysis and Valuation of Private Debt

Students will be able to define credit risk and components of the credit valuation adjustment for private debt, explain and use qualitative and quantitative methods to evaluate corporate borrowers' creditworthiness including financial ratios, and discuss the impact of macroeconomic, market, and issuer-specific factors on credit spreads for private debt.

Sub-Topic 4: Risk Management of Private Debt

Students will be able to describe how derivatives instruments and other methods can be used to mitigate various risks in private debt.

Topic 4 Intermediate Financial Modeling

Delve into the intricacies of private equity financial modeling. You’ll advance your skills in constructing financial models that accurately forecast company performance and facilitate effective valuation in a PE context.

Sub-Topic 1: Revenues and Costs

Students will be able to formulate and implement effective revenue forecasting strategies by explaining diverse revenue stream projections and their impacts on financial models, and by assessing the suitability of various forecasting models for different business scenarios.

Sub-Topic 2: Taxes

Students will be able to incorporate, evaluate, and optimize the impact of taxation and deferred taxes on company cash flows, financial forecasts, and valuation, developing tax strategies to enhance financial outcomes.

Sub-Topic 3: Noncurrent Assets, Working Capital and Capital Structure

Students will be able to forecast and assess the long-term financial impact of noncurrent assets, including the effects of depreciation and amortization policies, on business valuation and financial performance indicators.

Sub-Topic 4: Intro to LBO Modeling

Students will be able to develop and apply detailed cost forecasting models that accurately reflect business operations, evaluating different cost structures and their implications on financial forecasts.

Topic 5 General Partner Perspectives

Gain a comprehensive understanding of the roles and responsibilities of a general partner in managing private investment funds. You'll also be adept at discussing the mechanisms and strategies used by private investment firms to align interests with investors, evaluating fund performance, selecting investment opportunities, enhancing value within portfolio companies, and conducting due diligence while establishing business plans in the private investment process.

Sub-Topic 1: GP Roles and Responsibilities

Students will be able to discuss a general partner’s roles and responsibilities in managing private investment funds.

Sub-Topic 2: LP Perspectives

Students will be equipped to discuss the mechanisms and strategies employed by private investment firms to align their interests with those of investors, including governance frameworks, fee structures, and incentive alignments. They will also demonstrate the ability to calculate, interpret, and discuss the impact of management fees and carried interest on private market fund performance from an investor perspective, utilizing methodologies for performance measurement and benchmarking.

Sub-Topic 3: Investment Selection Process and Value Creation Strategies

Students will be able to identify and discuss the criteria and processes utilized by general partners in selecting private investment opportunities, incorporating due diligence methods and evaluating potential for value creation. They will also be proficient in explaining the strategies employed by general partners to enhance value within portfolio companies, encompassing operational improvements, strategic repositioning, and the significance of significant minority positions in these strategies.

Sub-Topic 4: Due Diligence, Strategy Execution and Exit Strategies

Students will be able to understand and discuss the importance of conducting due diligence and establishing a business plan in the private investment process.