OFIN 33A15 - Demystifying Private Equity and Venture Secondaries

**Course Description** What happens when private companies need liquidity in a world where IPOs are no longer the default exit strategy? Welcome to the booming market of private equity secondaries, a transformative segment offering innovative solutions to liquidity challenges! As the secondaries market matures in the United States, its rapid expansion across Europe brings new opportunities and challenges, making it a pivotal time to understand this dynamic and fast-evolving space. This course invites students to demystify the mechanisms, players, and key trends of the secondaries market while analyzing its growing role within the private equity ecosystem. Through a blend of theoretical insights and practical applications, the course offers a deep dive into how secondary transactions unlock value, sustain growth, and redefine liquidity pathways for private companies and funds. Inspiring guest speakers—including CFOs of scale-ups, private equity fund managers, and founders who have successfully navigated the secondaries landscape—will enrich the learning experience with real-world perspectives. By the end of the course, students will not only gain a comprehensive understanding of the secondaries market but also acquire critical skills directly applicable to careers in investment banking, private equity, and related fields. This journey into a market in full expansion provides a unique lens through which to view the financial innovations shaping tomorrow's global economy. **Course Structure and Key Themes** The course spans six sessions, each focusing on a pivotal aspect of the private equity secondaries market: 1. Introduction to Private Equity Secondaries: This session sets the stage by exploring the private equity lifecycle, the macroeconomic drivers behind the rise of secondaries, and their growing significance. 2. Direct Secondaries: A detailed exploration of bilateral transactions, company-led deals, and hybrid structures, illustrating their role in addressing liquidity needs for private firms. 3. GP-Led Transactions: Examining the dynamics of liquidity at the fund level, including portfolio transactions and continuation funds, and their implications for private equity players. 4. Valuation in Secondaries: A practical session on building valuation models specific to secondary transactions, with a focus on the unique challenges they present compared to traditional methods. 5. The Role of Investment Bankers: A walkthrough of the banker's role in secondary transactions, including deal structuring, legal frameworks, and timeline management. 6. Conclusion and Industry Insights: A final assessment and a guest speaker session to consolidate learning and provide inspiration for careers in the secondary market.

Pierre LEROY,David LAROQUE

Séminaire

English

Spring 2024-2025

**Course Format and Assessment** Participation: 30% (active involvement in discussions and interactive sessions). Press Review Presentations: 20% (group presentation on recent secondary transactions). Final Quiz: 50% (testing theoretical and practical knowledge acquired).