Jacopo Ponticelli

Private Equity Finance (FINC-942-0)

Private equity and private credit markets have grown into one of the largest segments of the financial system, with more than $10 trillion in assets under management globally. An increasing number of companies are choosing to remain private, growing through privately arranged equity and debt financing. At the same time, regulators and asset managers are debating whether to broaden access to private markets for retail investors, raising important questions about liquidity, transparency, investor protection, and the democratization of returns that have historically been available only to large institutional investors and high-net-worth-individuals. The objective of this course is to provide students with a broad understanding of private markets. The course exposes students to the opportunities and challenges of this industry, and it equips them with the institutional knowledge, valuation methods, and data analysis skills needed to operate in private markets. Students will also be introduced to new analytical tools, including artificial intelligence, for deal sourcing and valuation. The course is built around an individual project. During the quarter, each student develops an original investment thesis, identifies a sector niche, screens real targets, and builds a deal pipeline, mirroring the process that defines how specialized PE funds invest. Ideally, students emerge from the class with a broad institutional knowledge of the industry, a training in valuation frameworks, an exposure to how AI can improve their workflow, and a first experience in designing an investment thesis.

Finance II (FINC-431-0)

Finance II: Corporate Finance covers the financial knowledge you need to run a firm, whether the firm is a multi-billion international conglomerate or a three-person start up. You will learn how to answer the three fundamental question of corporate finance: (1) Capital structure or the funding decision: which source(s) of capital should you use to fund the firm's project? (2) Capital budgeting or the investment decision: which projects should you invest in? (3) Dividend decision: how should you deploy the capital that the project returns?

We will cover the three fundamental methods for valuing projects and firms: discounted cash flow (or net present value), real options, and multiples analysis. The class begins with a theoretical framework. The world of finance is very complex. Without a logical structure that you can use to frame and answer questions, you will rapidly become lost and will be unable to defend your position. The theoretical framework is valuable, however, only if you can use it to examine real world decisions. Thus the majority of class time will be devoted to applying the logical framework.

This course is important for anyone who plans to run a firm or a division, who hopes to be involved in the investment or funding decisions of the firm, who plans to work for a service provider who will assist the firm in analyzing these decisions (e.g., banking and consulting), or who plans to invest in firms or advise clients who will invest in firms. Even if you initially specialize in a different functional area, you want to understand how the finance function works. The most brilliant idea isn't useful if you cannot get it funded.

Recommended Prerequisites: ACCT-430 and MECN-430