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Private Equity Courses at Ross

For students with career aspirations in venture capital the Ross School of Business offers a suite of courses and learning initiatives that provide students with the opportunity to develop their finance knowledge, round out their industry experience, and increase their network of institutional VC business leaders, angel investors and executive officers of venture-backed firms.

Unlike investment banking, which is a transaction business done for fees, venture capital or private equity is a principal business done primarily for capital appreciation from funds invested. They differ in that venture capital is focused on technology-based early stage finance while private equity is focused on financing the expansion, turnaround, and acquisition funding of established companies from a broader industry base. Candidates entering these industries must have a well-rounded background in finance, marketing, manufacturing, and corporate strategy.

 Financing Technology Commercialization

FIN/ES 329/629

This course is a practicum, offering an opportunity to apply collective team work of a student/mentor alliance to building a launch pad for a technology-based venture. This course is open to all students in any school at UofM, but students should have basic knowledge of start-up structures and a keen interest in entrepreneurship and finance. Student teams of 5-10 are paired with a pre-vetted local early-stage venture along with a mentor and are guided through the analysis required, and steps needed to create a fundable venture. At the conclusion of the practicum, the students and company CEOs present their newly revised business model and pitch to local venture capitalists and strategic buyout CEOs. The class meets Wednesday night 7-10pm, and teams are expected to meet weekly outside of class.

Entrepreneurial Finance (BBA)

FIN 325

Entrepreneurial Finance — This course is open to all BBA students and presents the fundamentals of venture capital and private equity finance. It is focused on financing startup and early stage, technology-based firms, later stage investment and buyouts. The course covers venture capital and private equity market structure and institutional arrangements and the application of financial theory and methods in a venture capital and private equity setting. Four main aspects of venture capital and private equity are covered: valuation, deal structuring, governance, and harvesting. “Live” case studies are used in demonstrate the practical, hands-on application of techniques following their development in class.

Entrepreneurial Finance (MS-E)

FIN 586

Finance for the Entrepreneurial Firm — In this course, students learn the fundamentals of entrepreneurial finance and apply them to the entrepreneurial startup project their team is developing in the University of Michigan Masters of Entrepreneurship Program (MS-E) practicum. This course is taught from the joint perspective of the entrepreneur and the investor through the several states of new venture development, each state of which involves “private” finance, in which valuation is negotiated between the groups involved instead of through a public market. This characteristic introduces the need for structures of control, monitoring and ultimate disposition of the firm (“investment harvest”) as a public company or by sale to a strategic corporate or institutional investor. Entrepreneurial finance market structure, institutional arrangements, and the application of financial theory and methods provide the core of class discussions. Four main aspects of entrepreneurial finance are covered: valuation, deal structuring, investment monitoring and governance, and harvesting. Case studies and examples are used to demonstrate the practical, hands-on application of financing principles and techniques following their development in class FIN 586 is reserved for Masters of Entrepreneurship students only.

Venture Capital Finance

FIN/ES 623

This course is open to Ross School of Business graduate students and all University of Michigan graduate students. It covers venture capital market structure and institutional arrangements and the application of financial theory and methods in a venture capital finance setting. It presents and applies the fundamentals of venture capital finance, employing “live” case studies to focus on financing startup and early stage, technology-based firms.
The course covers four main aspects of venture capital:
1. Valuation
2. Deal Structuring
3. Governance
4. Harvesting
The case method is used to demonstrate the practical, hands-on application of techniques following their development in class. Current “market” venture capital deal terms and principles of their understanding, as well as a number of state-of-art financing techniques are covered in the course to give students a strong understanding of a VC deal flow from both sides – investor’s and entrepreneur’s. For prerequisite requirements, please contact the instructor.

Private Equity Finance

FIN/ES 624

The course educates UM/Ross students in private equity finance and, in conjunction with the UM Center for Venture Capital and Private Equity Finance at the Ross School of Business, facilitates access to career opportunities for our students in private equity and the related fields of global corporate finance, institutional investment, investment banking, and hedge funds.

Global Private Equity

FIN/ES 626

Venture capital and private equity finance are key drivers and enablers of development and growth around the globe, in both developed and developing economies. In this course, we cover venture capital and private equity finance in different countries and regions of the world. “Live” cases brought to class by private equity investors who are actively involved in various parts of the world provide a deep practical understanding of “ground level” similarities and differences among the various techniques and approaches used in different regions and economies. This enables us to study how the four main aspects of venture capital and private equity – valuation, deal structuring, governance, and harvesting – are conducted in different legal and regulatory settings, under different customs, culture and business practices. The case method is used to demonstrate the practical, hands-on application of techniques following their development in class.