F-Private Equity & Hedge Funds
Planned to be offered: Spring 09
Chronology: M.Sc.
ECTS: 10 ECTS
Teacher:
Department of Economics:
• Peter Norman Sørensen, email: peter.norman.sorensen@econ.ku.dk
• Søren Hovgaard (course coordinator), email: soren.hovgaard@econ.ku.dk,
Faculty of Law:
• Jesper Lau Hansen, email: jesper.lau.hansen@jur.ku.dk
Academic Aims
To obtain a 12 grade, students should demonstrate a thorough understanding of micro and/or macro aspects of the alternative investment industry, in particular private equity and hedge funds, in broad terms and/or a thorough understanding of a particular topic within the overall framework of the course.
On a macro level, students should demonstrate a thorough understanding of industry drivers, such as the growth in savings deployable, the effects of corporate governance and regulation on the attractiveness of private versus public capital as well public policy issues such as transparency, any systemic risks associated with financial innovation and in particular the trading and transfer of risks and taxation.
On a micro level, students should demonstrate a thorough understanding of the structures and workings of private equity funds, in particular on the screening, investment, value creating and exit cycle, on capital structure issues as related to the stage and risk profile of portfolio companies, on the control and agency issues related to governance as well as of the contracts used to regulate principal/agent relations and to ensure alignment of interest, both in relation to LPs and GPs and in relation to portfolio companies and management thereof.
As this is a multi disciplinary course, students may select a topic of their own choosing within law, economics, finance and public policy for their project work. Students may choose to submit a paper with a more narrow focus within one of the areas described above and achieve a 12 grade based on a through understanding of the subject matter in question and an overall understanding of the course material.
Course Content
The course is a joint University of Copenhagen Department of Economics/Faculty of Law graduate venture introducing students to key aspects of private equity and hedge funds. The course is designed to be of interest to students of law, economics, finance and public policy, emphasizing the interrelationships between academic disciplines within this field.
Syllabus
Literature Faculty Author Publisher Pages
Required reading
Private Equity as an Asset Class, CH 1-5 SPH Guy-Fraser-Sampson Wiley Finance, 2007 114
Contracts & Incentives THR THR NA 23
Capital Structure Stewart C. Myers Journal of Economic Perspectives, spring 2001 21
A Survey of Corporate Governance JG Andrei Shleifer; Robert W. Vishny The Journal of Finance, Vol. 52, No. 2. (Jun., 1997), pp. 737-783 46
Limited Partnership Agreements TKA NA BVCA 27
Hedge Funds: An Industry in Its Adolescence PNS Fung & Hsien Atlanta FED 40
Hedge Funds - lecture notes PNS PNS NA 6
Total 277
Suggested supplementary material
The Economics of the Private Equity Market THR George W. Fenn and Nellie Liang Dallas FED 72
Relevant legal acts JLH Public acts Plesner (law firm) n/a
Language: English
Prerequisites:
Formal training and practical experience in finance, business strategy, corporate governance and contract law may be helpful. Students should have en interest in financial markets, financial innovation, regulation and contracts seen mainly from a practical perspective. Basic theories and concepts from finance and law will be introduced during the course to facilitate learning for students of economics and finance as well as for law students.
Teaching and Work Forms:
The course is structured as follows:
Part 1 - introduction to Private Equity (12 double lectures corresponding to 6 weeks)
• Faculty of Law and Department of Economics instructors
• Guest speakers: (last year’s speakers included; Poul Nyrup Rasmussen, former prime minister of Denmark, Steen Thomsen, CBS, as well as industry experts from Nordic Capital, Axcel, Quartz, Enskilda, Danske Capital)
Part 2 - independent project work (approx. 8 weeks)
• Topic of own choosing related to course objectives, subject to instructor approval.
Formal Requirements: None
Examination
- Econ students (10 ECTS points): Take home paper (format rules for the economic seminars apply. For detailed requirements, see student handbook - seminars).
- Law students (10 ECTS points): Take home paper (max. 23,400 characters; front page, index and list of references excluded).
Papers should be submitted in English. Students may submit in Danish if indicated upon registration for the course.
Please observe rules on plagiarism stated in the Study Handbook at www.econ.ku.dk/polit