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The

Private Equity Associate

Micro-Degree

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If you’re considering a career in the buy-side, this upgraded private equity course will teach you everything you need to succeed.

Master the core technical skills, from in-depth financial statement analysis to structuring complex add-on acquisitions in a leveraged buyout.

Buy 2, Get 40% Off!
Use coupon 2MD4LESS - see courses

£679 (Inc Tax)

Add to Cart

30-Day Money-Back Guarantee T&C apply

3000+ students enrolled

Hours

Topics

365

Practical exercises

Direct instructor help

Micro-Degree

Lifetime access

Rated 4.3 From
764 Reviews

If you’re considering a career in the buy-side, this upgraded private equity course will teach you everything you need to succeed.

Master the core technical skills, from in-depth financial statement analysis to structuring complex add-on acquisitions in a leveraged buyout.

Buy 2, Get 40% Off!
Use coupon 2MD4LESS - see courses

£679 (Inc Tax)

Add to Cart

30-Day Money-Back Guarantee T&C apply

3000+ students enrolled

The Private Equity Associate includes

Foundation Skills

5 STARS

About

Increase your Excel efficiency and master the mathematical fundamentals that future courses rely upon.

Completion time

3 Hours

Level

Completion Certificate

About

Increase your Excel efficiency and master the mathematical fundamentals that future courses rely upon.

Completion time

3 Hours

Level

Completion Certificate

Module

Video Minutes

Excel Exercises

Foundation Skills

131

Video minutes131

Excel Exercises10

Excel Efficiency – Menu and shortcut basics
Excel Efficiency – Basic formatting
Excel Efficiency – Basic formulas and calculations
Excel Efficiency – More formulas and calculations
Excel Efficiency – Naming cells and references
Basics of financial math – Present and future value
Basics of financial math – Annuities and Perpetuities
Basics of financial math – Yields and internal rate of return
Statistics – Basic concepts
Statistics – Portfolio concepts
Statistics – Analytic methods

The PE Fund

About

Gain a detailed understanding of how PE funds work and the core activities that take place inside these firms.

Completion time

1.5 Hours

Level

Skills Certificate

About

Gain a detailed understanding of how PE funds work and the core activities that take place inside these firms.

Completion time

1.5 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

What is a PE Fund

Video minutes9

Excel Exercises0

Private equity versus other forms of private market assets
Summary of the different types of private equity sub-asset classes
The forms private equity firms take and their characteristics
What are private equity funds
The differences that exist between private equity funds

PE firm sources of income

Video minutes75

Excel Exercises4

Limited partnership agreements
Carried interest calculation, promoted interest, or “promotes”, for real estate transactions
Distribution waterfall
IRR, MoM, and splits

How does a PE Fund work

Video minutes22

Excel Exercises0

Structuring a fund and the different parties involved
The life cycle of a PE firm and what the different stages are
The incentive structure of PE funds including management fees and carry
Who and how is a PE firm run and a review of what the respective functions are

The PE Accountant

4.3 STARS

About

The PE Accountant provides a comprehensive understanding of the techniques required to accurately present a company’s financial results. Participants will be able to quickly and confidently interpret financial data and statements, evaluate them and use the calculated information to build high quality reports. Real company data and the latest rules are covered to ensure the methods used and skills developed are immediately applicable in the workplace. You will also review how and why legal structures are set up in order for a private equity acquisition to take place in the most advantageous manner from a funding and tax perspective.

Completion time

21 Hours

Level

Skills Certificate

About

Completion time

21 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Financial Accounting Review

Video minutes30

Excel Exercises3

Making entries and ensuring the balance sheet balances
Preparing a balance sheet
Preparing an income statement from the entries to retained earnings
Preparing a cash flow statement from the entries to the cash account
A review of the different categorizations on the income statement, balance sheet, and the cash flow statement

Income Statements

Video minutes59

Excel Exercises15

Revenue recognition issues
Cost recognition issues
Identifying non-recurring items from the income statement, the MD&A, the notes to the accounts and the financial statement press release
Calculating EBIT and EBITDA for the historical year, and on an LTM basis
Understand the difference between basic and diluted earnings per share and calculate recurring diluted earnings per share
Review company profitability compared to its peer group

Working Capital

Video minutes56

Excel Exercises12

Inventory accounting including the impact on EBIT of LIFO and FIFO accounting choices (where relevant)
Accounts receivable and bad debts (identifying when companies are manipulating sales)
Accounts payable and accruals and the difference between them from a due diligence perspective
Other items including taxes payable, deferred revenue, and pre-paid items
Working capital and operating working capital and the cash impact of changes in operating working capital
Credit implications of working capital movements
Day ratios

Non-Current Assets

Video minutes39

Excel Exercises11

Gross PP&E, accumulated depreciation, depreciation expense and net PP&E
Building a simple forecast of fixed assets
Establishing the age of a company’s fixed asset base
Finite, and infinite intangibles including goodwill
A review of key methods of accounting for financial investments
At fair value through the income statement
Available for sale
Associate (equity method) accounting

Capital Structure

Video minutes50

Excel Exercises14

Debt issues and repurchases
Simple yield to maturity and all in cost calculations and understanding Original Issuer Discounts
Calculating net debt
Equity issuance and repurchases
The difference between authorized, issued and outstanding shares and multiple share classes
Other capital items: preference shares and convertible bonds
Leverage ratios
Debt liability maturity analysis

Accounting Ratios

Video minutes41

Excel Exercises15

Profitability ratios, including margins
Liquidity ratios, including operating working capital
EBIT and EBITDA for the historical year, and on an LTM basis
Leverage ratios, including net debt and interest coverage
Asset ratios

Cash Flow Statements

Video minutes25

Excel Exercises3

Understanding how to categorize cash flows between operating, investing, and financing
Deriving a cash flow statement from two balance sheets and an income statement
Deriving a balance sheet from a cash flow statement and an income statement
Different cash flow statement presentations

Equity Method Investments

Video minutes9

Excel Exercises5

What are equity method investments?
- Equity affiliates/associates
- Joint ventures
Equity method accounting
- Income statement
- Balance sheet
- Cash flow statement
- Financial statement integration

Intro to Full Consolidation

Video minutes68

Excel Exercises21

M&A accounting overview
Balance sheet consolidation
Sources and uses of funds
Goodwill calculation
Income statement consolidation
Non controlling interests – NCI

Deferred Taxes

Video minutes33

Excel Exercises8

Taxes in the financial statements
Tax expense, ETR, and MTR
Tax authority numbers vs accounting numbers
Permanent differences
Temporary differences
Deferred tax assets and liabilities
Deferred tax over time
Deferred tax footnote

Tax Losses

Video minutes12

Excel Exercises1

Losses offset against profits
Loss utilization
Carry back
Carry forward
Loss utilization restrictions

Valuing Deferred Tax And Losses

Video minutes15

Excel Exercises1

Issues in valuing losses
Valuation impact

Tax In M&A

Video minutes14

Excel Exercises0

Inside and outside basis
Sale of shareholding
Sale of assets followed by corporate liquidation
Double taxation – vendor
Stock vs asset deals

Structuring an Acquisition

Video minutes8

Excel Exercises0

What is an acquisition structure in private equity
How is a structure put together with SPVs and which parties are involved
Diagram of a simple private equity structure with equity and debt
The main reasons for structures in private equity deals

Completion Mechanisms

Video minutes49

Excel Exercises8

Completion accounts introduction
Completion accounts calculations
Issues with the completion accounts mechanism
Locked box mechanism introduction
Locked box mechanism calculations
Comparing completion accounts and locked box mechanisms

The PE Modeler

4.3 STARS

About

Financial modeling is one of the most useful skills in the world of finance. Knowing how to build models quickly and error-free is critical for the decisions and recommendations that they underpin. The PE Modeler provides the perfect introduction to financial modeling, developing multiple techniques for a comprehensive and practical understanding of the topic. The course then builds simple, followed by more in-depth, LBO models that allow us to assess an initial view of cash flow performance, debt ratios, and returns to the private equity fund.

Completion time

26.5 Hours

Level

Skills Certificate

About

Completion time

26.5 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Introduction to Modeling

Video minutes63

Excel Exercises13

Key settings
Formatting and layout standards
Building a simple income statement and balance sheet model, on one sheet, then across sheets
Balancing the balance sheet using the cash flow statement
Preparing the model for handover
Key formatting and putting the output into a pitch book

Three Statement Modeling with Iterations

Video minutes67

Excel Exercises10

Income statement construction and highlighting key numbers
Calculation schedules (PP&E, retained earnings, operating working capital, and debt)
Balancing the balance sheet with a cash sweep
Calculating interest using average balances
Circular references and iterations
Working with a circular reference switch
Preparing the model for handover
Key formatting and putting the output into a pitch book

Three Statement Model Editing

Video minutes35

Excel Exercises5

Steps before editing
Inserting a new item
Removing an old item
After editing
Relevant keyboard shortcut keys

Three Statement Model with Estimates

Video minutes70

Excel Exercises12

Cleaning up the income statement and balance sheet and simplifying the line items
Getting estimates for revenues and EBIT
Building multiple scenarios into a model’s assumption
Modeling a forecast debt repayment schedule from the notes
Key ratios
Checking the model for reasonableness
Formatting and putting the output into a pitch book

Building a Model with Cash Sweep

Video minutes71

Excel Exercises18

Why banks want to be repaid early
Cash sweep mechanisms
How to model cash sweeps
Building a three statement model with a cash sweep

Checking a Model for Integrity and Errors

Video minutes36

Excel Exercises11

Top ten errors
Auditing and error checking toolkit
Checking your own model
Checking someone else’s model

Financial Forecasting

Video minutes86

Excel Exercises21

Techniques for forecasting revenue growth
Considerations for forecasts margins, working capital, PP&E and capital structure
Incorporating scenario analysis into the model
Benchmarking forecasts against consensus numbers
Using check ratios to sense check the model outputs

LBO

Video minutes75

Excel Exercises18

LBO – definition
Internal Rate of Return (IRR) and Value Analysis
LBO analysis models
LBO analysis model map
Assumptions
Sources and uses of funds
Sources of funds
Operating forecasts and cash sweeps
Model outputs
Levered valuation
Acquisition Financing and Debt Capacity Analysis
Participants understand how to structure an acquisition using debt financing.
Multiple based debt capacity analysis
Dangers of using multiples
Cash flow-based debt capacity analysis
Calculating free cash flows
Debt tranching
Seniority and subordination

Advanced LBO Modeling

120

Video minutes120

Excel Exercises26

Sources and uses of funds
Original issuer discount
Fees (arrangement and commitment)
Pro-forma balance sheet
Term loans and revolving credit facilities, including cash sweep switches
Bond issues (senior and junior)
Mezzanine financing and PIK interest
Returns to mezzanine holders
Leveraging the equity via preference shares
Calculating pre and post money valuation
Returns to common equity holders

LBO Modeling Complexities

147

Video minutes147

Excel Exercises26

Sources and uses of funds
Original issuer discount
Fees (arrangement and commitment)
Pro-forma balance sheet
Term loans and revolving credit facilities, including cash sweep switches
Bond issues (senior and junior)
Mezzanine financing and PIK interest
Returns to mezzanine holders
Leveraging the equity via preference shares
Returns to common equity holders

The Valuer

4.5 STARS

About

Learn how and when to utilize key valuation methodologies and their supporting calculations.

Completion time

12 Hours

Level

Skills Certificate

About

Learn how and when to utilize key valuation methodologies and their supporting calculations.

Completion time

12 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Equity to Enterprise Value Bridge

Video minutes33

Excel Exercises8

Calculating equity value
Calculating enterprise value
Non-core items, debt equivalent items, and non-controlling interests
Calculating simple multiples
Illustrating the impact of leverage
Understand how growth rates, returns and multiples interrelate

Trading Comparables

Video minutes69

Excel Exercises17

Review choosing a comparable set of companies
Calculating enterprise value
Calculating LTM EBITDA and EBIT
Forward multiples and issues with consensus data
Understanding which operational ratios are important for the analysis

Transaction Comparables

Video minutes30

Excel Exercises11

Reviewing data sources
Understanding different deal contexts
Calculating enterprise value and LTM EBITDA
Calculating premiums paid based on offer prices where appropriate
Calculating the synergies from the transactions as a % of target sales

WACC Analysis

Video minutes27

Excel Exercises8

Capital Asset Pricing Model
Calculating the WACC for the peer group
Interpreting the results
Establish a reasonable cost of capital for the target company
WACC approach

Discounted Cash Flow Valuation

Video minutes50

Excel Exercises14

Calculating free cash flows
Understanding how the operational ratios should develop over the financial forecast
Calculating the steady state and making relevant adjustments to the steady state cash flows
Making reasonable assumptions for long-term growth rates
Discounting to a deal date
Converting the enterprise value into an implied share price, making relevant adjustments for share options and restricted stock units

Pulling the Analysis Together

Video minutes43

Excel Exercises13

Reviewing different valuation methods
Preparing valuation ranges for each valuation method
Summarizing the valuation ranges and interpreting the results

The Lawyer

About

Get to grips with the main legal documents that are needed in a private equity acquisition.

Completion time

1 Hour

Level

Skills Certificate

About

Get to grips with the main legal documents that are needed in a private equity acquisition.

Completion time

1 Hour

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

PE Deal Process Documents

Video minutes27

Excel Exercises1

The main legal documents that are needed in a private equity acquisition
The format and content of an NDA
The use of offer letters, including what they contain, in a private equity transaction
What an SPA is, why it is used and what is included
Important clauses in an SPA and what they contain
Funding documentation including equity and debt commitment letters for a PE deal to close

Earnouts

Video minutes15

Excel Exercises1

Contingent consideration – structures
Accounting for deferred consideration
Examples of earnouts

Closing Documentation

Video minutes13

Excel Exercises0

What are the main equity documents needed to close
What the main debt documents are for a PE deal to close
What the Shareholder Agreement is and what it includes
What the other closing documents are such as Articles of Incorporation, filing documents and regulatory paperwork

Debt Products - Documentation

Video minutes20

Excel Exercises0

Typical contracts
Credit Agreement
Indenture
Regulatory Documents
Collateral Contracts
Typical Clauses:
Cashsweep Clauses
Cross Default Clauses: Triger Event
Pari-passu
Repayment / Redemption

The PE Deal

About

Master everything you need to complete a private equity deal from start to finish, including due diligence, debt products, and post-acquisition.

Completion time

2.5 Hours

Level

Skills Certificate

About

Master everything you need to complete a private equity deal from start to finish, including due diligence, debt products, and post-acquisition.

Completion time

2.5 Hours

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

The PE Process

Video minutes13

Excel Exercises11

The various steps in a private equity acquisition process
How sourcing and evaluation of potential PE deals happens
How due diligence is done during the PE acquisition process
A review of how to close a PE process and what is needed to do so

Internal Requirements

Video minutes10

Excel Exercises0

Memos, meetings and internal steps during:

An acquisition process
The monitoring period of a PE deal
The exit period for a private equity deal
Who are the key people involved in each step of the internal PE process
The format and content of the various different internal meetings and documents

Due Diligence

Video minutes13

Excel Exercises0

The reasons for due diligence in PE deals
The different types of due diligence and what they include
How due diligence is carried out included what needs to be prepared or looked for
Who is involved in due diligence and their respective roles

Debt Products - Financing Instruments

Video minutes13

Excel Exercises0

Types of Debt: Senior Debt – Revolving Credit Facility, Term Loan A-C / Subordinated Debt – 2nd Lien Term Loan, HY Bond, Mezzanine
Preferred Stocks and Equity Injection
Management Rachet
Debt Providers / Holders: Banks, Insurance Corps, CLOs, Hedge Fund, Pension Fund
Covenants
Collateral: 1st vs 2nd, All assets or Bifucated
Financing Fees: Upfront Fee, Commitment Fee, Interest Rate, PIK, OID, etc.
Key Considerations: Interest Rate (PIK, OID), Typical Term (1 year, 5 years, 7 years), Repayment (Bullet, Amortization)

Debt Products - Financing Consideration Process

Video minutes11

Excel Exercises0

Financing Consideration: Process Overview
Addressing Existing Debt
Evaluating Debt Capacity
Analyzing Collateral Base
Considering Minimum Equity Contribution
Simulating Expected Ratings Outcome
Analyzing Financial Ratios

Debt Products - Credit Committee in Banking

Video minutes10

Excel Exercises1

What Is Credit Committee
Composition of Credit Committee Materials
Transaction Background / Deal Summary
Company Overview
Sponsor Company Overview
Financial Analysis
Risk Analysis and Mitigants

Private Bank Debt Markets

Video minutes37

Excel Exercises5

Short term bank financing
- Revolving credit facilities
Long term bank lending
- Asset backed lending
- Cash flow lending
- Relationship lending
- Syndicated loans and different tranches of term loans

Acquisition Finance Debt Capacity

Video minutes32

Excel Exercises5

Cash flow based debt capacity analysis
Multiple based debt capacity analysis
Structuring a transaction
Structuring a transaction with different debt tranches

Post Acquisition

Video minutes8

Excel Exercises0

Creating value in private equity investments
Reporting requirements for portfolio companies
Role of the private equity firm with regards to portfolio companies
Process for exiting an investment
Overview of the different ways of exiting a PE investment

The PE Interview

4.3 STARS

About

Learn what to expect in the interview process, how to tackle tough questions and more. Plus, this course features example videos of successful answers.

Completion time

29 Minutes

Level

Skills Certificate

About

Learn what to expect in the interview process, how to tackle tough questions and more. Plus, this course features example videos of successful answers.

Completion time

29 Minutes

Level

Skills Certificate

Module

Video Minutes

Excel Exercises

Expert Interview - Private Equity Partner

Video minutes4

Excel Exercises0

Meet the interviewer
Investment Banking vs Private Equity
Key Skills
A day in the life
Career Tips

NEW | Expert Interview - Private Equity Recruiter

Video minutes8

Excel Exercises0

When is the right time to move to a fund
How to find the right fund for you
PE interview process
What makes a standout PE candidate
What to avoid in a PE interview

Private Equity Interview

Video minutes17

Excel Exercises0

The PE interview process
How to prepare for a PE Interview
Interview questions
Example PE interview – questions, answers, and feedback

Get Certification Recognized on Wall Street

Upgrade your résumé with certification recognized by the top 4 investment banks.

The Private Equity Associate is made up of 8 online courses. Pass each one to unlock your micro-degree. Our Private Equity Certification can easily be added to LinkedIn, demonstrating your achievement which will be recognized by the most prestigious firms on Wall Street.

Certification Discover our prestigious alumni on LinkedIn

THIS MICRO-DEGREE HAS BEEN REVIEWED BY

Colin Evans

Managing Director at J.P. Morgan

Colin Evans is a Managing Director at J.P. Morgan and leads the financial institutions coverage team globally for Corporate Banking

Dr. Bridget Lyons

Professor of Finance

Professor of Finance at the Jack Welch College of Business at Sacred Heart University and Associate Instructor

Chris Bishko

CFO

CFO with over 25 years experience as an operator, investor and investment banker in technology and financial services.

Our Alumni

DEMONSTRATE YOU'RE AS GOOD AS THE BEST

By completing our private equity course, you will be able to join our prestigious alumni on LinkedIn alongside hires at the top 4 investment banks. After becoming a member of this elite community, you can unlock exclusive benefits such as course discounts and more.

Explore our Alumni

testimonials

what our students say

Individuals

Julian Santibanez

The Accountant

The Accountant package offered by Financial Edge is a stepping stone at understanding the logic behind investment banking operations.

Corporate clients

Summer Intern 2020

The Modeler

The Modeler by Financial Edge gives the student an opportunity to learn hands-on experience in financial modeling. From short cuts and revision techniques to Three Model Statement creation. Certainly an insightful experience.

Frequently Asked Questions

What tech do I need?

Access your course across desktop, laptop, tablet or phone; either via our web portal or the dedicated mobile app. While we have optimized our video quality and size, we recommend a broadband connection to enable uninterrupted video playback. A PDF reader and spreadsheet application are required to open the supporting resources.

Is it right for me?

The PE Associate covers both the fundamentals of accounting, modeling and valuation, as well as the specific tools needed to excel as a junior in private equity. Whether you’re a student, management consultant or investment banker looking to break into the industry, this is the perfect course for you.

Are Financial Edge's courses credible?

The 4 leading investment banks, as rated by the FT, hire us to train their incoming analysts. If you are looking to join the best analysts in the world, challenge yourself with the same content and certification with the same Wall Street instructors ready to answer your questions.

Will this course help me get a job in private equity?

Absolutely. Develop practical skills your can use to impress at interviews, whether you’re looking to break into private equity or change roles.

How long do I have to complete this private equity course?

We are delighted to announce that we now offer lifetime access on all online courses! Fit studying around your schedule. Learn at your own pace with on-demand video, practical examples to download and expert instructor support.

Are there any hidden costs?

No. Everything you need to earn your micro-degree is included, from instructor-led videos and Excel exercises to the exam.