Postgraduate Coursework Units of Study

ECON6024 - Private Equity

Semester 1, 2012  |  Credit Points: 6

Coordinator: Mark Melatos

Description

As a source of private equity, venture capital (VC) plays a crucial role in the development of new business ventures and the promotion of innovation. Over the last twenty years, the VC industry has boomed. This course investigates how VC firms operate, analysing the key strategic issues they face during the fundraising, investing and exit stages of the VC cycle. Topics covered include: the determinants and types of VC fundraising, the organisational structure of VC firms and how venture capitalists are compensated. Next, the VC firm's investment decision is examined, as is its relationship with the investee company. The role of VC in the broader economy is also discussed. Regarding the exit stage of the VC cycle, the design of exit strategies (e.g. initial public offerings) is analysed. Finally, we introduce some of the ethical issues which venture capitalists face.

Assessments

assignments (20%), mid-semester test (30%) and 2hr final exam (50%)

Classes

1x3-hr seminar/week

Prerequisites

ECON5001 or ECOF5806 or ECOF6080

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