Break into the finance world

The lecture delves into the distinctions between public and private markets, highlighting PE/VC's economic impact, societal benefits such as ESG and innovation, and the specific landscape of the Baltic/Lithuania ecosystem. Through exploring the roles of various investors, the economic advantages of VC/PE, and government support mechanisms like ILTE.

This engaging lecture demystifies Venture Capital (VC) strategies across various funding stages — from pre-seed to Series A and beyond — linking them to a company's life stage, risk profile, and specific situations. It contrasts common myths with the realities of VC, covering the economics of a portfolio approach, the power law, and the risk/return profile. Investment criteria such as team quality, market opportunity, and product-market fit, alongside financial instruments like equity, convertible notes, and SAFEs, are examined.

We'll examine PE from both company and investor perspectives, discussing growth and buyout strategies, and the risk management involved. Additionally, the stages of PE investment will be outlined, setting the stage for a deeper exploration of the investment process. Before a deal is struck, we explore the formulation of investment theses, focusing on megatrends, specialization, and observed inefficiencies, alongside deal origination/sourcing tactics.

This lecture navigates the complexities of valuing Private Equity (PE) and Venture Capital (VC) deals, highlighting the dominant methods and how valuation trends have evolved across different cycles and industries. We delve into the structuring of deals, focusing on capital structure, financing options, co-investments, and the vehicles used in PE/VC transactions. Additionally, the session covers key legal and tax considerations from the perspectives of sellers, buyers, and management, detailing essential documents.

This lecture delves into the intricacies of typical fund structures, highlighting the roles and responsibilities of Limited Partners (LPs), General Partners (GPs), investment managers, and the investment committee. We will dissect the governance framework, focusing on the Limited Partnership Agreement (LPA) and the critical LP/GP relationship, fiduciary duties, and reporting requirements. The session will also cover the operational mechanics of a fund, including fundraising, committed capital, drawdowns, fee structures, carried interest, fund lifetime, and the phases of investment and divestment, along with capital distribution.

Case study on buy-and-build strategy