{"id":115734,"date":"2018-05-18T09:10:19","date_gmt":"2018-05-18T13:10:19","guid":{"rendered":"https:\/\/www.bates.edu\/news\/?p=115734"},"modified":"2024-07-01T15:56:52","modified_gmt":"2024-07-01T19:56:52","slug":"with-course-in-private-equity-students-enter-the-world-of-finance","status":"publish","type":"post","link":"https:\/\/www.bates.edu\/news\/2018\/05\/18\/with-course-in-private-equity-students-enter-the-world-of-finance\/","title":{"rendered":"Try this on: a Short Term course on private equity. And it fits!"},"content":{"rendered":"

For Bates students taking a Short Term course on the ins and outs of private equity, Week Three opened with a check-in. Five small groups had been assigned to analyze companies that, hypothetically, were looking for investors. Today, the students were presenting their initial findings. <\/span><\/p>\n

The companies themselves varied widely. One made packaging machines and software. Another supplied about a quarter of U.S. shopping malls with seasonal Santas and Easter bunnies.<\/span><\/p>\n

The course instructor, John Chapman \u201982, had once evaluated the same companies for his own private equity firm, Arcade Partners. Now he was back at his alma mater to teach \u201cPracticum in Private Equity: Corporate Financial Decision Making, From IPOs to LBOs,\u201d one of five Practitioner-Taught Courses<\/a> offered this Short Term.<\/p>\n

\"\"<\/a>

Phillip Simplicio ’20, Monica Luna ’21, and Ryan Corley ’19 present their first analysis of a company that makes machines and software for packaging products. By the end of their Short Term course in private equity, they’ll be able to tell a hypothetical investor if the company is a good bet. (Phyllis Graber Jensen\/Bates College)<\/p><\/div>\n

In one way, Chapman is simply paying it forward. \u201cThe best thing I can do is show them by example what I do every day,\u201d says Chapman, who has more than three decades of experience in private equity.<\/span><\/p>\n

In another way, Chapman is supporting a signature Bates program. He\u2019s among the latest in a growing line of alumni who\u2019ve made the college\u2019s signature Purposeful Work <\/span>program a runaway success<\/span><\/a> by offering students insights, skills, and exposure that most liberal arts students can\u2019t get until after graduation. <\/span><\/p>\n

In fact, thanks to that sensible integration with Purposeful Work, Bates may be the only college of its kind to teach an undergraduate course in private equity,<\/p>\n

On that Monday morning of Week Three, the students in Chapman\u2019s course \u2014 some of them older economics majors with multiple finance internships under their belts, others younger students exploring their interests \u2014 gave presentations that followed the same processes Chapman uses in his work.<\/p>\n

\"\"<\/a>

John Chapman ’82 asks questions during his students’ presentations of businesses under consideration for investment. Chapman, a principal at Arcade Partners in Hartford, has more than three decades of experience in private equity, which he’s brought to the classroom for the first time. (Phyllis Graber Jensen\/Bates College)<\/p><\/div>\n

They examined the financials. They prepared a SWOT analysis, a process that looks at strengths, weaknesses, opportunities, and threats facing a business. They suggested due diligence steps, such as assessing the strength of the company\u2019s management and discerning long-term trends in its industry.<\/span><\/p>\n

By the end of Short Term, they\u2019ll be able to evaluate each company and recommend whether or not a private equity firm should invest in it. <\/span><\/p>\n

Brand-new to the classroom, Chapman has gamely stepped up to the lectern. He has sought to provide a balance, he says, between \u201cgeneral discussions about aspects of private equity \u2014 why certain transactions are structured a certain way and what are some of the pitfalls \u2014 and some real financial scholarship.\u201d<\/span><\/p>\n

That means teaching some hard skills, such as how to read financial statements and how to calculate enterprise values and discounted cash flows. Those lessons proved useful for Eli Cooper \u201919 of Glastonbury, Conn., an economics major who wants to work in private equity and who previously took a Short Term course in accounting. <\/span><\/p>\n

Cooper has studied finance on his own in preparation for internship applications and has gotten advice from several Bates alumni. The private equity course, he says, has reaffirmed his interest in the field and taught him skills he\u2019ll need to work in it. <\/span><\/p>\n

\u201cGetting to work with these models and look at revenue projections and profitability projections is something that\u2019s been totally new,\u201d Cooper says. \u201cSitting there and changing a lot of the numbers in the model and seeing how the bottom line is affected has been interesting.\u201d <\/span><\/p>\n

There\u2019s also plenty of room in the course to learn what the day-to-day of private equity is like. The class has taken field trips to local businesses like Lewiston\u2019s Baxter Brewing Co., an entrepreneurial venture that <\/span>owes its existence and expansion to outside investors<\/span><\/a>.<\/span><\/p>\n

They\u2019ve heard presentations from Bates alumni who work in private equity or other areas of finance. Rob Cramer \u201979, managing director at Oppenheimer & Co., spoke about the role investment banks play in private equity transactions. Elise Chowdhry \u201988, managing principal at Optimum Advisors, discussed due diligence, the steps potential investors can take to understand a business before committing to it.\u00a0<\/span><\/p>\n

\"\"<\/a>

Robert E. Cramer ’79, managing director at Oppenheimer & Co. speaks to students in the course “Private Equity: Corporate Financial Decisionmaking,” taught by John Chapman \u201982. (Phyllis Graber Jensen\/Bates College)<\/p><\/div>\n

For Calvin Johnstone \u201919 of Hopkinton, N.H., \u00a0seeing the success of Bates alumni in finance \u2014 and learning the varied ways they got to where they are \u2014 revealed purposeful work in action. <\/span><\/p>\n

\u201cIt\u2019s nice to see how the hard work that you\u2019re doing at Bates translates into the workplace,\u201d he says. \u201cWhat\u2019s been reassuring for me, as someone who wants to work in this field, is that a lot of people who have visited have a wide range of different majors and backgrounds.\u201d <\/span><\/p>\n

Johnstone himself is evidence that almost any liberal arts major can be a guide to a business career: An environmental studies major, he\u2019s interested in how energy enterprises are funded, and he has interned at utilities and in investment banking. He says the course\u2019s blend of foundational skills and real-world exposure has broadened his sense of his own career path.<\/span><\/p>\n

\"\"<\/a>

Whether they’re seniors with multiple finance internships under their belts or first-years exploring an interest in business, “Practicum in Private Equity” offers students exposure to the world of private equity as well as practical skills. (Phyllis Graber Jensen\/Bates College)<\/p><\/div>\n

It has become \u201cmore complicated, just because of the amount of amazing opportunities that are out there,\u201d he says. \u201cI find myself thinking, how can I explore all of these, whether it be private equity or venture capital or investment banking?\u201d <\/span><\/p>\n

In the meantime, both Johnstone and Cooper are part of a study group analyzing a company that specializes in displays for trade shows. Ahead of their final presentation, they\u2019re studying the company\u2019s past results and projecting its future growth. They\u2019re deciding how much the company is worth and \u2014 if it\u2019s a good idea to invest in it \u2014 exactly how to structure an offer. \u00a0<\/span><\/p>\n

The experience has \u201cdefinitely been a big confidence boost,\u201d Johnstone says. \u201cSometimes, as a liberal arts student, job interviews can be more difficult because you\u2019re not as well-versed in the financial statements or the types of questions that you get at a more business-focused school.<\/span><\/p>\n

\u201cJohn\u2019s assuaged some of those fears and showed us that, yes, there\u2019s the technical side, which can be taught and which he showed us through Short Term \u2014 but there\u2019s also this critical-thinking side that is much more difficult to teach, and it\u2019s nurtured and developed at Bates.\u201d\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

An alum-taught course on the ins and outs of private equity at a liberal arts college? Here’s how Bates made it work. It’s called Purposeful Work.<\/p>\n","protected":false},"author":1005,"featured_media":115836,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_hide_ai_chatbot":false,"_ai_chatbot_style":"","associated_faculty":[],"_Page_Specific_Css":"","_bates_restrict_mod":false,"_table_of_contents_display":false,"_table_of_contents_location":"","_table_of_contents_disableSticky":false,"_is_featured":false,"footnotes":"","_bates_seo_meta_description":"","_bates_seo_block_robots":false,"_bates_seo_sharing_image_id":0,"_bates_seo_sharing_image_twitter_id":0,"_bates_seo_share_title":"","_bates_seo_canonical_overwrite":"","_bates_seo_twitter_template":""},"categories":[4,7],"tags":[12356],"class_list":["post-115734","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-academic-life","category-alumni","tag-center-for-purposeful-work"],"_links":{"self":[{"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/posts\/115734","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/users\/1005"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/comments?post=115734"}],"version-history":[{"count":17,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/posts\/115734\/revisions"}],"predecessor-version":[{"id":115909,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/posts\/115734\/revisions\/115909"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/media\/115836"}],"wp:attachment":[{"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/media?parent=115734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/categories?post=115734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bates.edu\/news\/wp-json\/wp\/v2\/tags?post=115734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}