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DRPS : Course Catalogue : Business School : Common Courses (Management School)

Postgraduate Course: Venture Capital and Private Equity (CMSE11580)

Course Outline
SchoolBusiness School CollegeCollege of Arts, Humanities and Social Sciences
Credit level (Normal year taken)SCQF Level 11 (Postgraduate) AvailabilityAvailable to all students
SCQF Credits10 ECTS Credits5
SummaryFinance theory and practice has been developed in the context of listed equities or public equity markets. The availability of vast databases of historic financial information has facilitated the empirical analysis and testing of finance theory. We can observe a falling number of IPOs and listed companies. VC/PE are becoming an increasingly important alternative to public capital markets and merit investigation based on its increasing size and importance as a source of equity capital for businesses, but also because of the unique characteristics of the market compared to other sources of equity financing. The private equity market and its investment process operate in a distinctly different manner to public equity. Building on students' knowledge gained during courses taken in semester 1, this course will aim to provide students with an experience of the venture capital and private equity process, exploring and analysing the perspectives of those who select high risk investments and of those entrepreneurs who use the services of this industry. We shall work with cases from early stage entrepreneurs and with prospective investors with the expectations to leverage the networks of the instructors to host founders and VC/PE fund managers for guest lectures/seminars.
Course description This area of finance is highly specialised, and practitioners strive to operate to international norms, but with a wide distribution of regional variance, and hence the course should give students an additional field within which to apply the tools and understanding provided by many of the quantitative modules.

The objective is to move beyond a descriptive account of the mechanics of the private equity and venture capital industry (though this is important given the unique organisation and contract structures of the market) so that students gain a more complete understanding of why and how the industry operates as it does. These questions can be answered best through the prism of finance theory. We shall identify and discuss the critical stages in the engagement between entrepreneurs soliciting investment, and the VC/PE firms that select, invest in, nurture, and often refinance fast growing new companies or later-stage ventures. Regional and national policies often shape the pathway by which entrepreneurs acquire investment, and the conditions placed on ownership of shares in the new companies.
Entry Requirements (not applicable to Visiting Students)
Pre-requisites Co-requisites Students MUST also take: Corporate Finance (CMSE11342) OR Financial Valuation (CMSE11403) OR Foundations of Finance Theory (CMSE11081)
Prohibited Combinations Other requirements None
Information for Visiting Students
High Demand Course? Yes
Course Delivery Information
Academic year 2023/24, Available to all students (SV1) Quota:  None
Course Start Block 4 (Sem 2)
Timetable Timetable
Learning and Teaching activities (Further Info) Total Hours: 100 ( Lecture Hours 10, Seminar/Tutorial Hours 4, Programme Level Learning and Teaching Hours 2, Directed Learning and Independent Learning Hours 84 )
Assessment (Further Info) Written Exam 0 %, Coursework 100 %, Practical Exam 0 %
Additional Information (Assessment) 30% Coursework (Individual) - Assesses course Learning Outcomes 1, 3

70% Coursework (group) - Assesses all course Learning Outcomes
Feedback Formative: Feedback will be provided throughout the course.

Summative: Feedback will be provided on the assessments within agreed deadlines.

No Exam Information
Learning Outcomes
On completion of this course, the student will be able to:
  1. Identify, critically evaluate and synthesise substantive theories, operating practices, financing structures and financial models, both quantitative and qualitative, which are used in the private equity and venture capital industry.
  2. Use social skills to communicate in written and oral modes, interact and discuss effectively within a professional setting based on group assignments and active participation.
  3. Apply and develop financial models to critically evaluate private equity and venture capital investment decisions and develop hands-on financial analysis skills used in private equity and venture capital, investment banking and related industries.
Reading List
Da Rin, M. & Hellmann, T. (2020). 'Fundamentals of Entrepreneurial Finance', Oxford, ISBN: 978-0-19-974475-6

Metrick, A., & Yasuda, A. (2021).'Venture capital and the finance of innovation'. John Wiley & Sons.

Phalippou, L. (2021), 'Private Equity laid bare', Createspace Independent Publishing Platform. ISBN 979-8596396027
Additional Information
Graduate Attributes and Skills Knowledge and Understanding

After completing this course, students should be able to:

-Demonstrate a thorough knowledge and understanding of contemporary organisational disciplines; comprehend the role of business within the contemporary world; and critically evaluate and synthesise primary and secondary research and sources of evidence in order to make, and present, well informed and transparent organisation-related decisions, which have a positive global impact.

Identify, define and analyse theoretical and applied business and management problems, and develop approaches, informed by an understanding of appropriate quantitative and/or qualitative techniques, to explore and solve them responsibly.

Communication, ICT, and Numeracy Skills

After completing this course, students should be able to:

-Convey meaning and message through a wide range of communication tools, including digital technology and social media; to understand how to use these tools to communicate in ways that sustain positive and responsible relationships.

Critically evaluate and present digital and other sources, research methods, data and information; discern their limitations, accuracy, validity, reliability and suitability; and apply responsibly in a wide variety of organisational contexts.

Cognitive Skills

After completing this course, students should be able to:

Be self-motivated; curious; show initiative; set, achieve and surpass goals; as well as demonstrating adaptability, capable of handling complexity and ambiguity, with a willingness to learn; as well as being able to demonstrate the use digital and other tools to carry out tasks effectively, productively, and with attention to quality.

Practice: Applied Knowledge, Skills and Understanding

After completing this course, students should be able to:

Apply creative, innovative, entrepreneurial, sustainable and responsible business solutions to address social, economic and environmental global challenges.
KeywordsNot entered
Course organiserDr Pia Helbing
Course secretaryMiss Lindsay Hunter
Tel: (0131 6)50 3823
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