Private Equity: Investing and Creating Value

The Wharton School

Finance and Wealth Management

About Programme

Private equity is a critically important asset that investors cannot afford to exclude from their portfolios. With its potential for high returns that can outperform other asset classes — such as conventional stocks, bonds, and mutual funds — private equity offers a competitive edge to sophisticated investors.

Private Equity: Investing and Creating Value is designed for institutional investors as well as investment professionals aspiring to be better private equity managers. The program delivers the latest concepts investors need to know to confidently evaluate investment opportunities in the private equity space and to build optimal investment processes.

Programme Content

Private equity is riding a wave of money that has come its way in the past decade, but it faces a growing list of challenges — they include an overheated investment environment, difficulties conducting due diligence (especially in emerging markets), federal investigations into client fee disclosures, and (some might argue) a contraction in the business.

This innovative program provides an ideal combination of lectures by Wharton finance faculty and Wharton alumni who are leaders in the private equity industry. Participants will have an opportunity to focus on areas of individual interest, such as the limited partners’ perspective, middle markets, distressed private equity, and private equity emerging markets. There will also be case study and group presentation time.

The program will also explore the foundations of asset pricing and teach you how to forecast cash flows while accounting for country risk. Participants will learn how to identify and manage special issues when investing or partnering with companies based in emerging or frontier markets.

Overall, participants will learn the landscape of the private equity space and be exposed to concepts and tools — shaped by the ongoing research of Wharton Private Equity Professor Bilge Yilmaz — that are used by private equity managers today.

Case studies are current, relevant, and designed to maximize peer and faculty interaction. During this program, you will have an opportunity to hear firsthand from Wharton alumni who are experts in the private equity space. As guest speakers, they will discuss their backgrounds and experiences, as well as their perspectives on the PE industry and the current economy.

Session topics include:

Fund Structure

The Leveraged Buyout Model

Deal Origination, Transaction, and Execution

Value Creation and Operational Improvement

Advanced and Best Practices in Private Equity

Commercial Due Diligence

The Limited Partners’ Perspective

Middle-Market Private Equity

Distressed Private Equity

DCF Valuation in Emerging Markets

Private Equity in Emerging Markets

Private Equity Professor Bilge Yilmaz and Mitchell Hollin, WG’89, appeared on Wharton Business Radio, SiriusXM. Listen to this extract of an interview where they talked about Private Equity: Investing and Creating Value.

Programme Audience

Private Equity — Who Should Attend

Private Equity: Investing and Creating Value is designed for institutional investors as well as investment professionals aspiring to be better private equity managers. A minimum of three years of investment industry experience is recommended. This program will enable participants to better understand opportunities and strategies, and develop their toolkit to be effective in investing in private equities.

The roles and job titles of participants might include:

Chief investment officers and asset managers responsible for a firm’s portfolio

Institutional investors with an interest in private equity funds

Entrepreneurs in the process of receiving and/or structuring capital funds

Investment consultants, accountants, family office representatives, and private bankers

Actuaries and quantitative analysts

Investor relations and investment professionals in private equity

Investors in private equity, venture capital, and distressed assets

Fluency in English, written and spoken, is required for participation in Wharton Executive Education programs unless otherwise indicated.

Participants by Industry

Participants by Job Function

Participants by Region

This program is held at the Steinberg Conference Center located on the University of Pennsylvania campus in Philadelphia. Meals and accommodations are included in the program fees. Learn more about planning your stay at Wharton’s Philadelphia campus .

To further leverage the value and impact of this program, we encourage companies to send cross-functional teams of executives to Wharton. We offer group enrollment benefits to companies sending four or more participants.

Programme Benefits

Learn the various stages of investment, from deal origination through harvesting returns

Study tools that private equity firms use to structure and finance a deal, create value, and determine exit timing

Understand the key drivers in the private equity market and key differences between funds’ strategies

Analyze a deal from the different points of view of a private equity firm and a bank

Work in teams to review actual deal scenarios, both middle market and megafund, and debate recommendations with faculty and peers for a new perspective

Gain experience in navigating the complex arena of global private equity and emerging markets

Testimonials

"As the chair of a public pension fund and a trustee of a public deferred compensation plan, the board members and I are presented with numerous offers to invest in various funds. I enrolled in Wharton’s Private Equity program endeavoring to gain a more thorough understanding of private equity investments; understand how best to evaluate these proposals — to become familiar with the standard terms, structures, and responsibilities contained in partnership agreements; and learn how one might become more attuned to bogus, pie-in-the-sky’ promises contained in some proposals. The program was more than I hoped for. It provided concrete information that addressed my questions and concerns and then some. The program was quite comprehensive, covering topics such as the historical framework for private equity investing, leveraged buyouts, commercial due diligence, the anatomy of a deal, the roles of the general partners and limited partners, and key terms in PE partnership agreements. The program was fast paced, relevant, thought provoking, current, and intellectually stimulating. This was due in large part to Wharton’s extraordinary professors who are extremely knowledge and proficient in the world of finance, and who have the unique ability to convey very technical knowledge in a readily accessible manner. It was a tremendously enjoyable educational experience enhanced by interactive exercises; opportunities to problem solve and puzzle through case studies and valuation models; and insight gained from very accomplished participants around the globe with careers, backgrounds, and perspectives that were as diverse as their nationalities. I highly recommend Wharton’s Private Equity program and found the education and experience so useful that I enrolled in Wharton’s Advanced Finance Program ."

Terryl L. Brown

Chief Legal Counsel, Fire Department of New York

"Whartons Private Equity course exceeded my expectations. My background is in private equity operations and I was interested to learn more about the investment side of PE. The course has a comprehensive curriculum covering a wide range of helpful topics, including: the LBO model, FE fund structure, managing for value, DCF in emerging markets, and practical case studies. I learned a lot from faculty, PE industry professionals, guest speakers, and peers from all around the world with diverse backgrounds."

Alex Lizcano

Senior Vice President, Partners Group

"At GlaxoSmithKline, I lead the negotiation of deals with smaller biotech companies so we can bring innovative new science and medicines into our internal R&D pipeline which we ultimately develop into medicines. Our company’s R&D budget in 2016 was over $3.6 billion, but as cost pressures on R&D budgets continue to mount, we need to find creative ways to source capital. Taking Wharton’s program was ideal for me because I’ve been looking at alternative ways to finance our R&D pipeline through private equity sources, and through the course I gained critical insights to the inner workings of the private equity sector. In addition to negotiating business development deals, I also oversee the making of investments into venture capital funds who in turn invest in new biotech start-ups in this space. The course had a module covering the venture capital sector which proved valuable to me in this regard. I am a finance person by training but the investment side of things was never covered in any detail in any of the schooling Id had previously, so it’s always been a gray area. There are very limited executive education offerings out there that deal with private equity. Before attending Wharton’s course, I didn’t really appreciate how to approach private equity investors nor who the players were. A big value driver of the course for me was pulling back the curtain of what private equity is — that knowledge is very valuable and I don’t think most people have it. Thanks to the Wharton course, I have much more confidence now when engaging with private equity investors, because now I understand it from the inside."

Carly Xiao

U.S. Investment Lead, Midea Group

"Wharton’s Private Equity program really hit the mark. Our main instructor was very knowledgeable. The class had 17 different countries represented with people from all over the world and all different backgrounds. Best of all, Wharton brought in several guest speakers who were super-relevant for me — people from KKR & Co., Bain Capital, American Securities and other firms. The program hit all the topics I wanted to learn and having exposure to all those external PE people was excellent. The program gave me a better understanding of why they buy companies, how they structure deals, use of debt, leverage, role of due diligence, and other aspects of private equity. We are thinking of sending one member of my team to Wharton’s Private Equity program later this year, and I definitely plan to take another Wharton class next year either in San Francisco or Philadelphia."

Brian McVeigh

Vice President, Worldwide Business Development Transactions & Investment Management, GSK

"Private equity and venture capital are new concepts in Pakistan’s financial markets that can serve as an important trigger to kick-start the economic engine in Pakistan. Very recently, the Securities and Exchange Commission of Pakistan (SECP) has approved the launch of the first-ever Private Equity Fund in Pakistan with locally generated funds. Being a part of the supervisory team for private equity, I can apply almost everything I learned at Wharton. I expect the program’s value to increase manifold with the advent of several new private equity funds and will enable us to move forward and apply the fundamentals of private equity at Wharton. It will greatly help in assessing analysis like NPV, IRR etc. when evaluating potential deals. This course also has helped me better understand and assess the assumptions made by general partners of private equity funds. Wharton emphasized the fact that proper assessment with regard to a potential acquisition makes a significant difference in a deal and you have to get it as close to right as possible. Now if my colleagues and I ever get diverted from those factors highlighted during the program at Wharton, I will be in a position to steer the discussion back to what really matters. SECP has a vision of the development of modern and efficient corporate sector and capital market, based on sound regulatory principles that provide impetus for high economic growth and foster social harmony in the country. Those challenges are evolving all the time — so, as a regulator, SECP has to be very creative and come up with new ideas. Over and above that promise, SECP is striving to introduce and promote new financial products to broaden the scope of capital markets in Pakistan and private equity is among one of the most significant products evolving in the country. With the introduction of an enabling regulatory framework, supervision of these funds is viewed as a challenge and Wharton has sharpened my skills as I can identify risks for the stakeholders and different aspects of deal negotiation for private equity funds. I can honestly say that I was very impressed that the program attracted such a diverse group of participants in terms of geographical locations, gender and professions. I personally like to build relationships with such a diverse group of participants from across the world. We have stayed in touch after the course and I treat (each relationship) as an opportunity to share our experiences and opportunities for mutual benefits."

Christopher Quinley

Liang & Quinley Wealth Management

"The mechanics of the private equity world can be mysterious, even to many executives in other sectors of the financial services market. The way Wharton laid out the curriculum for this course really shed light on what private equity is, how it works, and where it’s going. The program also helped me to better understand the PE framework and decision-making process as well as the sector’s focus on using leverage and creating value. The week at Wharton provided an interesting peek under the tent, learning from active participants and pioneers in private equity. One of the real benefits you get from going through a class at Wharton is the networking with other participants, alumni, and professors. I have walked away with interesting new relationships that I intend to keep."

Jon Reeves

Vice President, Managing Director for Private Equity, SAP

"undefined"

Aamir Qureshi

Additional Joint Director, Securities and Exchange Commission of Pakistan

"undefined"

Jonathan W. Roberts

Banking Executive

Testimonial Source