On this course you will:
- Build a Real Estate Private Equity Fund model
- Understand Private Equity market structure and strategies
- Understand the basics of Fund Valuation and related metrics
- Review accounting principles as applied to Real Estate Funds
- Model dividend policy and distributions under various scenarios
- Analyse risk using metrics, tables and charts
- Use risk analysis techniques to further define fund structures
Who is this course for?
- Private Equity Fund Managers
- Investment consultants and Financial advisers working with Fund Managers
- Finance professionals supporting institutional Investors
- Private Bankers and Family office representatives
- Real Estate professionals looking to expand their knowledge in corporate finance
- Recent Graduates interested in learning how to model private equity deals
Course Outline
Day One:
Understanding a Private Equity Fund Model
- Layout and key elements of a PE Model
- Private equity market and strategies
- Understanding the deal structure and interested parties
- Understanding the capital structure
- Review of the key debt instruments
- Review of the key equity instruments (special case of Management Buyout)
Fund valuation methods
- The multiples approach to valuation
- Discounted Cash Flow (DCF), modelling and core concepts
- Private Equity performance metrics
- Pre-money vs Post-money valuation
- Special Cases
Review of accounting principles
- Balance Sheet: Real Estate Valuations and Debt
- Profit & Loss: Capital Allowances
- Cash Flow statement: Escrow Accounts and Distributions
Day Two:
Modelling Fund Dynamics, Drivers and Forecasting
- Forecast of revenue and cost drivers
- Indirect costs and historical ratios in the working capital schedule
- Amortization/Depreciation schedule and capital expenditures
- Debt schedule and the cash available to service the debt
- Modelling dividend distributions
- Shareholder’s equity schedule and completing the income statement
- Modelling and Analysing Risk
Performance Analysis
- Benchmarking returns within Real Estate and across industries
- Analyse leverage and coverage ratios
- Calculating Equity Returns Using EBITDA or Net Income
