The last three decades has seen rapid growth in private equity markets around the world. Private equity investments in the USA and Europe have grown from a few billions dollars in the 1970s to over $750 billion today. In Australia, the private equity market is of more recent vintage, although the last few years have witnessed increased public awareness of private equity associated with public-to-private bids for Qantas, Alinta, Flight Centre and Coles Myer. Emerging market investing in Asia and Latin America is also a recent development. Private equity investments comprise funds and partnerships specializing in venture capital, leveraged buyouts, expansion capital, and distressed debt. Funds also specialize in sectors of the economy - information technology, biotechnology and biosciences, agribusiness, and so forth. Venture capital and private equity funds are increasingly seen as an important component of a well-diversified investment portfolio, and are an important asset class in pension fund investing. Private equity commonly comprises 5% to 7.5% of a pension fund portfolio and involves long term investing and monitoring in order to optimize returns. This course will examine the financial aspects of venture capital and private equity investing.

Topics include the place of private equity in investment portfolios, key institutional features of the private equity market, the structure of venture capital and buyout funds, evaluation and analysis of venture capital and buyout fund investments, exit strategies in private equity, and recent market developments.