Private Equity Investing
This course will concern itself with the central issues related to private equity investing. Topics to be covered include the following: valuation, pricing and structuring of private investments; leveraged buyouts and other transactions involving multitiered capital structures; the structure and governance of pe funds; conceptual issues (such as option theory, asymmetric information and bounded rationality) relevant in this realm; and private equity as a distinct asset class. The primary pedagogical objective is to have students learn skills and tools used in the private equity arena including, inter alia, financial analysis, conducting a multipronged due diligence process, spreadsheet modeling and the crafting of legal documents. Case studies requiring the assessment of actual transactions will be utilized. We will have a number of guest speakers during the term, and will use various materials illustrative of what one would encounter in private equity deals and funds. Special Instructions: In order to enroll in Private Equity Investing students must concurrently enroll in PEI: Quantitative Skills Seminar (Law 721; 1 unit). In other words, no student may enroll in either Law 522 or Law 721 without also enrolling in the other. CONSENT APPLICATION: To apply for this course, students must complete and e-mail the Consent Application Form available on the SLS Registrar's Office website (see Registration and Selection of Classes for Stanford Law Students) to the instructors. See Consent Application Form for submission deadline. Elements used in grading: Class attendance, participation and written assignments.