Alternative Investments Lab

15.S73 Alternative Investments Lab

This Action Learning lab focuses on diligence expertise in the deals of alternative investment firms. Students are matched with alternative investment (private equity, venture capital and hedge fund) hosts and work during the 6 week course on a deal or project, defined and managed by the host.

Projects are driven by the specific needs of the hosts, and typically cover:

• Private capital (LBO, growth equity, VC)
• Hedge funds (ARB, global macro, equity long/short, quantitative strategy, stressed/distressed debt) 
• Real assets (real estate, commodities, timber)

This course offers an opportunity to have actual diligence expertise in deals by working in tandem as a team with a small group of selected private equity, venture capital or hedge funds. It allows students to develop close relationships with hosting firms, as well as use MIT Sloan resources (e.g., people, available datasets, etc.) to learn how to analyze the viability of a potential investment that an alternative investment fund is considering.

The class

Students will work in groups and will have to aid selected funds in conducting due diligence on deals that the funds are currently reviewing for a potential investment. They will have to apply all of the valuation and diligence techniques that are taught in 15.S72 Valuation Skills and Analytics Required for Alternative Investments in order to analyze the viability of a potential investment being considered by an alternative investment fund. Included in the final report that will be provided to the fund, the student teams will have to review topics like: industry trends, management capability, company strengths and weaknesses, financial projections, valuation, competitor dynamics and exit alternatives.