Private Capital Fundamentals - Due Diligence of Companies

The module examines the business model of private capital funds. We start by looking at what investing in private capital in emerging markets looks like. We then clarify the role of the fund manager and examine key characteristics of the private capital fund model. We explore venture capital ecosystems and conclude by contrasting the benefits and constraints of private capital.

The module explores due diligence of funds, starting with explaining the need for due diligence. We will then explore the key elements and processes involved in performing due diligence. We will highlight some red flags to look out for when doing due diligence on funds and conclude by providing useful due diligence tools

The module will focus on private capital as a powerful force for development. We will explore private capital’s role in delivering the Sustainable Development Goals (SDGs) and discover how the SDGs can be implemented in a private capital fund. The value of digital innovations in transformation will be discussed along with the development impact of venture capital investments.

The module explores how to choose a successful fund management firm and team. We will start by discussing the expectations that investors have of fund managers and define the characteristics of successful fund managers. We will then examine the characteristics of a winning fund management team, including factors to look out for in a team’s track record.

The module will examine the components of successful funds. We will discover what investors look for in a fund design and explore the Coherence Triangle. We will then learn about the defining factors and key success factors for private capital funds. Returns strategy options will be explored along with the key drivers and sources of returns. We will conclude by analysing investor red flags when considering an investment in a fund.

The module focuses on setting clear guidelines for the implementation of sound environmental and social management (ESM) practices. We will first understand the context of why ESM has become critical for funds and portfolio investors to implement in their investment evaluations. We will then explore some case studies to understand how to apply an ESM lens to different environmental and social challenges.

The will focus on the growth path of a typical privately-owned company and describe the different sources of funding a company might acquire as it grows and prospers. The benefits of private capital funds and other types of funds are also covered. Emerging markets are defined and the latest trends in private equity in Africa and other emerging markets are explored by visualising the latest data.

This module examines the ideal portfolio management approach designed to ensure the highest possible performance of portfolio companies. Monitoring and risk management is described, and different exit strategies are analysed. You will also learn how to interpret performance measurements and report to investors.

This module focuses on corporate governance and explains how it relates to the fund management process. We will define corporate governance and describe the value of good governance for business. We will discuss the structure, parameters, and types of corporate governance. We conclude by analysing examples of governance risks.

One of the most important steps when planning to invest and manage private equity and venture capital funds is fundraising. Successful fundraising depends on two overarching processes, correctly designing your fund, and targeted marketing of the fund. The course will provide you with the knowledge you require to do this successfully. Participants will gain both practical and theoretical insights into all areas of fundraising including fund strategies and teams, deal flows and structures, effective marketing, and pitching.

This module, we will explore the intricacies of constructing portfolios within private capital funds. Learners will gain insights into the key steps involved in crafting a private capital fund portfolio, understanding the contributing factors to achieve optimal returns, and navigating the trade-offs inherent in portfolio construction. The module also explores asset allocation strategies, considerations, and tools, emphasizing the role of diversification in managing risk. Special attention is given to private capital funds, the advantages of the secondaries market, and the complexities of risk assessment in emerging markets.

In this module, we will be exploring how to screen, structure a deal and discuss the various exit options. Risk and return profiles as well as common investment instruments will be covered.

In this module, we will be exploring how the fund management team adds value to the companies in which they invest and grow profitable and sustainable companies. Portfolio company exits, including Gross-Net Gaps, planning, exit options and failed investments will be covered.

This module will provide an overview for global limited partners to understand portfolio construction and asset allocation. We will engage in content about diversification and private capital, including the ways to invest in private capital. Lastly, we will discuss how to establish a portfolio construction strategy.

This module focuses on the governing bodies that oversee the governance of a fund. We will investigate the relationships between each of these governing bodies and study their respective roles and responsibilities. We will investigate a case study to apply our decision-making based on good fund governance practice.

This module explores alignment and incentives in private equity funds. We will start by discussing the need for alignment and incentives, including its role in principal-agent relationships. We will then analyse the key pillars of alignment and incentives – personal and team motivation, GP commitment, carried interest, management fees and remuneration.

The module will help investors to better understand how to better invest in companies by considering human capital. The course will help learners to determine the skills, knowledge, and experience needed as an individual and a team. In this module, participants will learn about the role of the fund manager and the fund management team, investor expectations, the fund manager's value add, issues faced by fund managers, and how to manage risk.

This module focuses operational due diligence process of private capital investment funds. We will begin by exploring the basic structure and relevant parties associated with investment funds. Then, we will explore the governance of the general partner who is responsible for the management of the fund. We will discuss best practices in terms of the compliance function of a private equity fund. We will address operational aspects such as finance, auditing, and reporting. Finally, we will consider important administrative functions and controls that ensure the fund’s compliance.

This module investigates common fund structures and the constitutive bodies that govern the terms of a fund. The limited partnership structure is detailed to demonstrate the roles of the general partner and the limited partner. Common fund terms are covered and their provision to provide insight into how funds may be structured based on stakeholder agreements.

This module focuses on how to source, filter, and select good investment deals by understanding the investment pipeline funnel. We will learn to identify different seller motivations to improve our selection capabilities and detail the investment process to prospective investors.

This module explores the importance of valuation and details the steps of how to value assets accurately. The valuation process and procedures are described, focusing on three different valuation approaches which include the market approach, the income approach, and the cost approach. The valuation standards and principles which inform the valuation process are also discussed.