Executive Master in Private Equity and Other Alternative Asset Classes

Programme content

PROGRAMME

COMPULSORY COURSE

Module 1 - Private Equity & Other Alternative Asset Classes - 5 ECTS

Session 1 - Fundamentals of alternative asset classes:

• Definitions, Market overview,
• Rationale,
• Market players.

Session 2 - Structure and organisation of a Pe Fund:

• Regulations,
• Terms,
• Fund documentation,
• Governance clauses.

Session 3a - Pe Fund raising:

• Investors and investor relations,
• Marketing.

Session 3b - Family offices:

• Strategies,
• Differences to Pe Firms.

Session 4 - Pe transactions and investment phase:

• Origination,
• Bidding process,
• Due diligence,
• Structuring,
• Financing,
• Signings and closings,
• Monitoring of investments.

Session 5 - Tax structuring:

• Why Luxembourg,
• Overview of Luxembourg's Tax System,
• Substance rules,
• Double taxation,
• Transfer pricing.

Session 6 - Fund and investment valuation:

• Methodologies,
• Accouting rules,
• Lux Gaap an Ifrs,
• Fund reporting.

Session 7 - Value creation and exit strategies:

• Operational value creation,
• Financial engineering,
• Governance,
• Exit options and structuring.

Session 8a - Esg considerations:

• Why Esg,
• Compliance and risk,
• Reporting.

Session 8b - Duties & responsibilities of board directors:

• Regulatory framework.

Session 9 - Venture capital:

• Focus,
• Stages of investments,
• Differences to a Pe Fund,
• Investors,
• Case study.

Session 10 - Fund of funds:

• Definition,
• Structure,
• Risk and return profile,
• Diversification,
• Valuation and reporting,
• Co-investments and secondaries.

Session 11 - Private Debt:

• Differences to Pe Funds,
• Strategies,
• Investors,
• Risk and return profile,
• Credit facilities.

Session 12 - Real assets, real estate and infrastructure:

• Differences to Pe Funds,
• Strategies,
• Risk and return profile,
• Case studies.

ELECTIVE COURSES

Module 2 - Corporate finance - 5 ECTS

• Corse overview; goals and governance of the corporation; financial markets and institutions; time value of money (part 1/2);
• Time value of money (part 2/2);
• Bonds;
• Stocks;
• Net present value and other investment criteria;
• Using disounted cash-flow analysis to make investment decisions; projects analysis;
• Mid-term exam; measuring corporate performance;
• Introduction to risk, return and the opportunity cost of capital; risk, return and capital budgeting;
• Weigthed average cost of capital and company valuation;
• Working capital Management;
• Review and wrap up;
• Final exam.

Module 3 - Financial management - 5 ECTS

• Financial forecasting,
• Financial modelling; valuation,
• Capital budgeting,
• Real options,
• Funding the business: from start-up to IPO,
• Optimal capital structure,
• Distribution policy,
• Mergers & Acquisitions,
• Project financing,
• Wrap up,
• Student group project presentations,
• Kick-off final exam.

Module 4 - Portfolio management - 5 ECTS

• Investment background and financial markets,
• Security markets, mutual funds & other companies,
• Risk and return,
• Efficient diversification,
• Capital asset pricing theroy,
• Efficient market hypothesis, and behavioural analysis,
• Mid-term exam, equity and bond valuation,
• Derivative markets and risk management,
• Portfolio performance evaluation,
• International investing,
• Hedge funds, Private Equity, LBOs and SPACS,
• Final exam.

Module 5 - Advanced risk management - 5 ECTS

• Introduction and quick refresher on quantitative analysis;
• Capital markets - assets and derivatives (Part 1/3);
• Capital markets - assets and derivatives (Part 2/3);
• Capital markets - assets and derivatives (Part 3/3);
• Valuation and risk models - Introduction to risk (VAR, CVAR, tracking error risk budgeting, etc.);
• Valuation and risk models - Practice and limitations;
• Mid-term exam, credit risk;
• Operational and integrated risk management (Part 1/2);
• Operational and integrated risk management (Part 2/2);
• Portfolio risk management and Hedge Fund risk management;
• Main lessons of financial crisis for risk managers and recent developments;
• Final exam.

Module 6 - Mergers & Acquisitions - 5 ECTS

• M&A strategy Part 1 - lessons from CISCO,
• M&A strategy Part 2 - impact other corporate finance decisions,
• Valuation,
• Financing the deal,
• Leveraged buyouts
• Closing the deal (M&A in Wine coutry V2, simulation exercise),
• Assessing the risks (agreement terms),
• Target search and due diligence,
• Post-Merger integration,
• Wrap up,
• Student group project presentations
• Kick-off final exam.

Module 7 - Sustainable finance - 3 ECTS

• Introduction, definition of sustainable finance,
• Capital flows in the financial system, role of central banks,
• Sustainability regulation,
• Sustainable finance instruments: Greenbonds,
• Sustainable finance instruments: Private Equity, Infra and Impact funds,
• Sustainable finance instruments: Banking and loans,
• Reporting and measurement for impact and public actors,
• Student presentation, Final test.

Module 8 - Fundamental investing - 2 ECTS

• Compounded interest and the stock market machinery; price vs value and behavioural finance;
• Determining the moat; profit & loss and balance sheet analysis;
• Quiz 1; working capital, net Debt, and accounting shenanigans; DCF and market multiples valuations;
• Quiz 2; transaction multiples, book value, ratio analysis;
• Quiz 3; putting it all together.

Module 9 - Blockchain & Big Data/Cryptocurrencies - 5 ECTS

• Bitcoin, Blockchain and Big Data use cases,
• Consensus algorithms (Part 1/2),
• Consensus algorithms (Part 2/2),
• Ethereum programming,
• Security and privacy,
• Applied programming techniques,
• Introduction to relevant languages and protocols,
• Mid-term test,
• Business case / Technology session,
• Code development (Part 1/2),
• Code development (Part 2/2),
• Final project pitch presentation.

Learning outcomes

Module 1 - Private Equity and other alternative asset classes (compulsory)

• Understand the characteristics fo different alternative asset classes including Private Equity, Venture Capital, Real Estate, Infrastructure and Private Debt, their strategies, actors and structures, and how they are applied;
• Appreciate the key elements of fundraising, typical transaction valuation, value creation, exit strategies, and tax structuring;
• Gain access to practitioners such as fund managers, lawyers, and auditors, who will participate in the class discussion as guest speakers;
• Either build or advance their careers in Private Equity and other covered alternative asset classes;
• Gain a broad understanding and in-depth knowledge of the industry.

Module 2 - Corporate finance (elective)

• Discuss fundamental concepts of corporate finance;
• Understand the sources, uses and cost of capital in operating a business;
• Apply techniques based on costs of debt and equity financing in capital budgeting, analysis of investment opportunities and risk;
• Assess company performance applying Ratio Analysis;
• Appreciate key concepts regarding Working Capital management for the day-to-day operations of an organisation.

Module 3 - Financial management (elective)

• Apply the concepts of maximisation of firm value and risk analysis to a variety of management decisions;
• Demonstrate the importance of identifying key value drivers and performing sensitivity analysis in support of decision making;
• Analyse alternative financial decisions using financial models;
• Appreciate the role of corporate finance supporting decision making in the areas of capital budgeting, capital structure and distributions;
• Make financial decisions to create value for the organisation (within the framework of value-based management).

Module 4 - Portfolio management (elective)

• Apply basic techniques to analyse securities and build portfolios,
• Utilise statistical principles to the management of the portfolio,
• Understand how to diversify portfolios to reduce risk,
• Appreciate the limits of traditional financial theories through behavioural finance.

Module 5 - Advanced risk management (elective)

• Understand the types of financial risk various institutional market participants are facing;
• Measure and evaluate risk;
• Propose effective risk management techniques;
• Appreciate relevant international regulations such as Basel I-III in their historical development as well as most recent modifications aiming to prevent further financial crises;
• Discuss the rapidly growing relevance of Environmental, Social and Governance (ESG) - related risk factors.

Module 6 - Mergers & Acquisitions (elective)

• Appreciate the role M&A strategy can play within corporate strategy, and will be able to differentiate good-, from bas reasons for M&A;
• Apply basic valuation techniques (DCF, trading-, and transaction multiples) to serve as guidelines to establish the price range for negotiation;
• Discuss different methods of deal financing, including LBOs, and participants will learn to identify their advantages and disadvantages in the specific circumstances of the transaction;
• Understand the importance of risk assessment, both legal and business, during the search process and negociations;
• Experience the psychological pressures of negotiations through an in-class multi-party negotiation simulation, and through the group project of the class;
• Identify critical challenges of post-merger integration. The importance of post-merger integration as an integral part of the transaction will be made clear.

Module 7 - Sustainable finance (elective)

• Identify key actors, both public and private;
• Appreciate the complexities and impact of key regulation in the field;
• Understand the role and main characteristics of the principal financial instruments employed;
• Interpret and apply to investment decisions the fundemental metrics used to measure sustainability impact.

Module 8 - Fundamental investing (elective)

• Understand the principles of value investing (as promoted by famous investors such as Warren Buffet and Howard Marks);
• Evaluate a company's performance and financial health based on available financial and operating information;
• Apply a wide range of value investment valuation techniques such as discounted cash flow type analysis, and multiples valuation methods;
• Differentiate between price and value to be able to identify potentially undervalued companies.

Module 9 - Blockchain & Big Data/Cryptoccurencies (elective)

• Understand the opportunities but also limits of blockchain technology and big data;
• Understand the elements of writing simple blockchain applications using the Ethereum platform;
• Appreciate the basic theory on consensus protocols;
• Develop basic monitoring tools;
• Understand the economic issues and inventives of decentralised applications and big data;
• Discuss governance approaches for blockchain based applications;
• Advanced topics time allowing: Ripple Interledger protocol, Tezos governance model.