Real Estate Private Equity explores, in depth, the analysis, decision-making and challenges private equity investors face when:
1. making and structuring highly leveraged investments,
2. managing investments through turbulence if market difficulties emerge,
3. developing superior, differentiated portfolio strategies and successfully aligning these with institutional capital,
4. procuring and managing sources of equity and debt capital,
5. negotiating institutional investor, local partner and transaction agreements,
6. successfully building and managing their organizations for long-term sustainability in the midst of having to compete in an environment fraught with constant risk, uncertainty and geo-political and economic fluctuation.
The course will be structured in a format using actual business cases, where each case will tackle a situation and specific set of challenges faced by private equity investment groups. Cases will typically be 20 to 30 pages in length with a number of subsidiary agreements and schedules. Students will need to lay out the problems being addressed, probe the situation, develop the right questions to focus on, analyze the relevant data, and evaluate the best courses of action along with their anticipated outcomes. Case situations will be viewed from multiple perspectives: the private equity investor, their institutional capital sources, local operating partners, lending institutions, tenants, and many times public authorities and their representatives.
This course is rigorous with weekly case write-ups and active discussion required for each case. Students are required to have completed 5275 and 5276, or similar courses with comparable learnings prior to matriculating into this course. Students must also demonstrate that they can actively engage in class, be able to analyze complicated quantitative data sets and financial information and reach informed conclusions.
Students completing this course will gain a deep understanding of how the best and worse private equity investors respond to risky market opportunities and associated challenges. The course will also provide strategic industry insight to students interested in pursuing a real estate investment career.