Surveys the role private equity and venture capital financial institutions play in the operation of efficient capital markets. Analyzes the legal structure of private equity and venture capital partnerships and the process of raising investment capital, of negotiating equity participations, of contributing to the operation of investee companies and ultimately of divesting on favorable terms the institution’s equity holdings. Applies the due diligence process in a case setting by evaluating investment risks and valuing assets both for acquisition and for sale, practically utilizing the skills developed in courses such as Corporate Finance and International Financial Markets. Prerequisite: Corporate Finance.