6QQMB312 – Private Equity

Individual Coursework Assessment

Weighting: 100% of module grade
Lead Instructor: Anthony Gahan
Email: anthony.gahan@kcl.ac.uk
Submission Deadline: 10:00, Thursday 18 December 2025 (via KEATS)

Submission Checklist

Before uploading, ensure:

1. File name: ModuleCode_CandidateNumber
2. Word count: 3,500 words total
   • Part 1: up to 2,250 words
   • Part 2: up to 1,250 words
3. Format: .docx

Assessment Overview

The coursework consists of two components:

PART 1 – Investment Paper

Weighting: 75%
Word Limit: up to 2,250 words
Perspective: Act as an executive in a Private Equity (PE) firm.

You will prepare a highly abridged Investment Paper recommending whether your PE firm should proceed with acquiring a specific company.

Key Requirements

You will:

• Describe the business.
• Present the commercial and growth opportunity—including your own original ideas.
• Explain the market context.
• Evaluate:
  • Deal structure
  • Key risks
  • Exit strategy
• Build and present a simple buyout returns model (template provided).

Important Rules

• Early in the module you will receive a list of companies to choose from.
  You must choose from this list only.
• Assume the business is private (not publicly listed).
• Ignore share prices, market cap, dividend yields, etc.
• Assume the deal is a typical PE buyout with:
  • A debt-free acquisition
  • A newly designed capital structure post-transaction
• Include the simple buyout returns model (copy-paste template provided; do not create additional models).

Structure of Part 1

Your investment paper must include:

1. Executive Summary
2. Commercial Opportunity
   (Your proposed post-investment business plan; demonstrate original thought.)
3. Market Context
4. Risks
5. Valuation & Investment Returns
   (Using the basic model discussed in tutorials.)
6. Exit Options

What Matters Most

• Clear understanding of how buyouts work
• Demonstration of commercial judgement
• Original strategic insight
• Precise, concise, professional communication
• Avoid unnecessary words or general descriptions of PE theory

PART 2 – Academic Analysis Essay

Weighting: 25%
Word Limit: up to 1,250 words
Perspective: Academic finance scholar.

This section requires a critical academic evaluation of the buyout you proposed in Part 1.

Select Two Topics from the Four Available

Analyse your deal using any two of the following:

1. Capital Structure & Leverage
2. Creation, Capture & Destruction of Value
3. Corporate Governance:
   Management incentives & Boards
4. Realization of Value:
   Information asymmetry, market timing & PE exits

What This Essay Should Be

• A critical, theory-informed analysis
• Contextualized for your chosen company/sector
• Academically referenced (name–year format)

What This Essay Must Not Be

• Not a generic explanation of Private Equity
• Not a summary of finance theories
• Not a description of how PE works (your lecturer already knows that)

Illustrative Thinking Prompts

• Is the proposed leverage optimal given capital structure theory and market uncertainty?
• How will value be created or captured? Who bears the risks?
• Are management incentives strong enough to control agency problems?
• What external conditions could affect exit timing and valuation?

Module Learning Outcomes Assessed

This coursework evaluates your ability to demonstrate:

1. Understanding of PE and investment approaches
2. Commercial analysis and original insight
3. Academic critical thinking on PE practice

General Submission Notes

• Word count excludes:
  • Tables
  • Diagrams
  • Headings
  • References
• References not needed in Part 1.
• References required in Part 2 (name–year format + bibliography).
• Proofread thoroughly — errors significantly affect grading.

Assessment Support

• Tutorials: technical guidance on modelling, valuation, deal structure, incentives, etc.
• Additional review sessions:
  • 11 November 2025, 6pm – Strand S-2.18
  • 16 December 2025, 4pm – BH Auditorium (N)0

Marking Criteria