PGDM Core Subject

Private Equity & Venture Capital

Course Objective

Primary PO Mapping: PO5 (Innovation, Entrepreneurship & Value Creation).

Strategic Focus: Term sheets, valuation, and managing equity dilution.

Mandatory Textbook: Venture Capital and the Finance of Innovation by Andrew Metrick and Ayako Yasuda.

Internal Assessment Scheme (70 Marks)

Component	Marks	Description	Mapped CO
Simulation	20	The Startup Cap Table: Managing 3 rounds of funding.	CO2, CO3
Case Study	10	"The Unicorn Exit": Analysis of a PE exit via M&A or IPO.	CO4
Presentation	10	"The Shark Tank Pitch": Pitching a deal to a mock GP panel.	CO5
Mid Term	10	Internal written exam covering PE/VC cycle.	CO1
Project	10	"Term Sheet Audit": Identifying aggressive vs. founder-friendly clauses.	CO3
Class Participation	10	Active participation in deal-sourcing workshops.	All

20-Session Plan

Session	Topic	Pre-Reading (Metrick & Yasuda)	Daily Assignment
1	The PE/VC Ecosystem: Fund Structure	Ch 1: The VC Cycle
2	Limited Partners (LPs) & General Partners (GPs)	Ch 2: Fund Economics	A1: Waterfall Logic
3	Deal Sourcing and Due Diligence	Ch 3: Sourcing Deals
4	Startup Valuation: Pre-Money vs. Post-Money	Ch 4: Valuation Methods	A2: VC Method
5	Term Sheets - I: Economic Clauses	Ch 5: Term Sheet Basics
6	Term Sheets - II: Control Clauses	Ch 6: Preferred Stock	A3: Liquidation Pref
7	The Startup Cap Table Management	Technical Note: Cap Tables
8	Anti-Dilution Provisions	Ch 7: Down Rounds	A4: Weighted Average
9	Staging and Syndication	Ch 8: Financing Stages
10	Mid-Term Internal Exam	Review Sessions 1–9	Mid-Term (10M)
11	Growth Equity vs. Buyout Strategies	Technical Note: PE Styles
12	Corporate Venture Capital (CVC)	Technical Note: CVC Goals	A5: CVC Map
13	Exit Strategies: IPOs and Strategic Sales	Ch 9: Exit Strategies
14	Secondaries and GP-Led Restructuring	Technical Note: Liquidity	A6: Exit Multiples
15	Simulation Lab: The Startup Cap Table	Manual: Round A/B/C Sim	Simulation (20M)
16	Legal and Regulatory Environment in India	Technical Note: AIF Regs
17	Social Impact Investing & ESG	Technical Note: ESG in PE
18	Crisis Management in Portfolio Companies	Case Study: WeWork/Byju’s
19	Presentation: The Shark Tank Pitch	Manual: Deal Defense	Presentation (10M)
20	Course Synthesis & Final Portfolio Review	Review of Innovation Cycles

Course Code: FI-402 | Term: 4 | Credits: 3 (30 Hours)

Primary PO Mapping: PO1 (Tech Integration) & PO2 (Critical Thinking).

Strategic Focus: Utilizing advanced modeling and derivatives to evaluate and mitigate complex industrial financial risks.

Mandatory Textbook: Options, Futures, and Other Derivatives by John C. Hull.

Component	Marks	Description	Mapped CO
Simulation	20	The Hedging Challenge: Using derivatives to protect a corporate portfolio from market volatility.	CO2, CO4
Case Study	10	"The Derivatives Disaster": Forensic analysis of a major financial failure (e.g., Barings Bank). +1	CO4
Presentation	10	"The Risk Mitigation Plan": Defending a strategy to manage currency or interest rate risk.	CO5
Mid Term	10	Internal written exam covering Forward, Futures, and Options basics.	CO1, CO2
Project	10	"Monte Carlo Simulation": Building a risk model in Excel to predict potential losses.	CO3
Class Participation	10	Active participation in financial modeling labs.	All

20-Session Plan

Session	Topic	Pre-Reading (Hull)	Daily Assignment
1	Introduction to Financial Risk & Engineering	Ch 1: Introduction
2	Mechanics of Futures Markets	Ch 2: Futures Markets
3	Hedging Strategies Using Futures	Ch 3: Hedging with Futures	A1: Basis Risk Analysis
4	Interest Rates & Duration Gap Analysis	Ch 4: Interest Rates
5	Determination of Forward & Futures Prices	Ch 5: Forward Prices	A2: Arbitrage Modeling
6	Swaps: Interest Rate & Currency	Ch 7: Swaps
7	Mechanics of Options Markets	Ch 10: Options Markets	A3: Put-Call Parity Lab
8	Properties of Stock Options	Ch 11: Stock Options
9	Trading Strategies Involving Options	Ch 12: Trading Strategies	A4: Option Greek Matrix
10	Mid-Term Internal Exam	Review Sessions 1–9	Mid-Term (10M)
11	Binomial Trees for Valuation	Ch 13: Binomial Trees
12	Black-Scholes-Merton Model	Ch 15: Black-Scholes	A5: Volatility Surface
13	Value at Risk (VaR) & Expected Shortfall	Ch 22: Value at Risk
14	Greek Letters & Delta Hedging	Ch 19: Greek Letters	A6: Dynamic Hedging
15	Simulation Lab: The Hedging Challenge	Manual: Trading Volatility	Simulation (20M)
16	Volatility Smiles & Credit Risk	Ch 20 & 24
17	Real Options in Capital Budgeting	Ch 34: Real Options
18	Ethical Governance: Avoiding Sunk Costs	Case Study: Concorde Fallacy
19	Presentation: Risk Mitigation Plan	Manual: Strategic Defense	Presentation (10M)
20	Course Synthesis & Review	Review of Risk Frameworks