Foundations of valuation is an introductory finance course required for all MBA students. It is designed to cover those areas of finance that are important to all managers, whether they specialize in finance or not. At the end of the course, you will be familiar with the most common financial instruments (stocks, bonds, options) and the methods to value them. More specifically, we will cover the following topics:
1. General framework for valuation (present value formula)
2. Bond and bond valuation (spot rates, yield to maturity, duration, convexity)
3. Stocks (stock valuation, dividend growth model)
4. Basic concepts of risk and return and the CAPM
5. Options (Black-Scholes formula)
The course will be a mix of lectures and cases. Students are expected to come prepared to class since the course relies on several in-class exercises students will solve in excel.
Corporate finance is an introductory course required for all MBA students. It is designed to cover those areas of finance that are important to all managers, whether they specialize in finance or not. At the end of the course, you will be able to value a firm. To reach this goal, the course covers the following topics:
1. Introduction to frameworks for firm valuation (enterprise DCF and multiples)
2. Multiple valuations
3. Free cash flows (definition, projections)
4. Residual value
5. Weighted average cost of capital
6. Optimal capital structure
The course will consist of approximately one‐half lecture and one‐half in‐class case discussions, for which students should prepare carefully. The course aims to provide students with an understanding of sound theoretical principles of finance and the practical environment in which financial decisions are made.
This course is designed to be an applications oriented course and will draw heavily upon real world change of control case studies. The course builds on the prior courses in corporate finance. The course will not introduce significantly new finance principles or analytical techniques other than those to which the student has been exposed to previously in the prerequisite introductory courses in finance at Columbia. The course will seek to apply basic finance principles and analytical techniques to actual problems likely to be encountered by senior management of major corporations or those who are the advisors to such management in the context of an M&A transaction. At the conclusion of the course, the student will have gained an appreciation for the role M&A plays on today's corporate landscape and have formed an opinion as to whether or not an M&A transaction makes sense" for the firm. The student should expect at the conclusion of this course to have gained a level of competency in M&A commensurate with an entry-level investment banking associate in M&A. Whether or not the student "practices" M&A, the course will afford the student with an insider's look into what is an undeniable major force on today's corporate landscape. Accordingly, students who are interested in investment banking, consulting, equity research, corporate development, corporate lending, strategic planning, private equity, leveraged finance, or proprietary trading many wish to consider this course."
While the professors background is investing, this course is to a great extent a study of the elements that make a business great. As a result this class provides a sound intellectual framework to think about business in general, and as such it is equally appropriate for students who will work for a great business, build a great business, or invest.COURSE DETAILS: Value Investing is simply the purchase of any asset at a price that is significantly less than its true value. To learn how to do that when investing in common stocks, Warren Buffet has said investment students need to study two things: How to value a business. How to think about market prices. Through practical work as business analysts, the students in this class will primarily learn and intensely practice the skills and framework necessary to understand (and therefore value) a business.The professor has historically found the most value by investing in great (or future great) businesses. As a result, A SIGNIFICANT part of the course will be spent on: Detailed study of what makes a great business, and how to identify/build great (or future great) businesses Realization that to accomplish anything great", it is enormously helpful to identify, understand and align yourself with certain "truths" (For example the necessity of a broad understanding of people, group dynamics, the importance of independent thinking, basic probability, basic finance and accounting, EVA, the implications of proper focus, etc., etc.)."
NOTE: YOU SHOULD NOT ENROLL IN THIS COURSE IF YOU HAVE TAKEN OR PLAN ON TAKING REAL ESTATE FINANCE (B7331)
The goal of this course is to make you knowledgeable and conversant about the principles of real
estate, with many changes as the world has adjusted to the new circumstances of COVID-19. As both a physical asset and an investment asset with a defined location in space, real estate is strikingly different from other asset classes. Real estate forms part of the alternative investment asset class and institutional investors invest a substantial part of their portfolio in real estate. We will look at the investors in real estate and the investment management firms and how they are investing
internationally. We will give an overview of investing in all major commercial property types: office,
logistics, retail, hotels, and residential, niche sectors like senior housing and student housing, and the purchase of a home and consider how these are changing to a quickly evolving world. The goal is to give an overview of the international real estate market and provide you with the tool set to identify investment opportunities globally, certainly for investing but also to find a place to live and figure out how to work.
This course provides students with a rigorous foundation in capital markets and investments, emphasizing asset valuation from an applied perspective. It covers valuation techniques for financial securities, essential to portfolio management and risk management applications. Key topics include arbitrage, the term structure of interest rates, portfolio theory, diversification, equilibrium asset pricing models such as the CAPM, market efficiency and inefficiencies, performance evaluation, analysis of common pooled investment vehicles, behavioral finance, and tax-aware investment strategies. Through interactive activities, case studies, and simulations utilizing real-world market data, students will acquire analytical skills and foundational knowledge required for advanced finance courses and practical roles within the investment industry.
Note for MBA students: B5300 is a full term course offered only to EMBA students and is not available to MBA students. MBA students must complete B6301, Foundations of Valuation, to satisfy this prerequisite. If you sat the Corporate Finance exemption exam, please note this exam corresponds to B6302, the half term version, which does not fulfill the B5300 or B6301 requirement for this course.
Advanced Corporate Finance develops the art and science of optimal strategic decision-making by applying corporate financial theory to cases of financial policy, financial instruments and valuation. In particular, the following topics are studied: cost of capital and capital budgeting, discounted cash flow valuation and financial multiples, payout policy, equity and debt financing, option pricing theory and applications, corporate control and recapitalizations. The classes are structured to maximize the synergy between theory and practice, providing students portable, durable and marketable tools for their internships and careers.
Successful investing in Equities Markets requires more than just picking stocks given the wide
array of products at a portfolio manager's disposal. Through a combination of lectures, a case
study and guest speakers, this course is intended to provide firsthand experience on how
products like Options, Swaps, Futures, ETFs, and Structured Notes, and are structured, valued,
and used. Although most of the course relates to Equities, there will be some content on
Derivatives on other Asset Classes
In this class, students will be introduced to a variety of hybrid public/private equity investing strategies and situations, including (pre-IPO) crossover funds, tactical opportunity funds, SPACs, PIPEs, take-privates, and more. We will discuss the key similarities and differences between public and private investing, highlighting areas of synergy (and dis-synergy) in the investment process. Teaching methods will include an upfront review of hybrid investment frameworks, hands-on analysis of case studies and real-life situations, and insights from many guest speakers.
Pre-Req: B8306 - Capital Markets & Investments
As the course title implies, we will familiarize students with the tax principles that must be considered by corporate managers and their advisers with respect to transactions that result in a re-alignment of the corporations business activities or its capital structure. In most respects, the course will be taught from the perspective of the outside adviser engaged to provide guidance regarding a major corporate transaction or financing decision. The student will, once the course is completed, secure an ability to recognize common re-structuring/financing scenarios confronting management and be positioned to propose viable solutions to these problems in a manner that minimizes tax outlays, consistent with prudent and, above all, ethical business practice.The course features a final examination and a term paper; typically, but not necessarily, the paper is prepared on a group basis. The readings for the course consist, primarily, of Lehman Brothers Tax and Accounting" Research Reports and "The Willens Report" research pieces and articles from professional taxation journals as well as decided cases and I.R.S. pronouncements.We will supply all such reading materials on the first day of class."
The “Private Equity Lab” offers a distinctive experiential learning opportunity for students to engage directly with private equity firms on real-world projects. This course is a blend of academic instruction and hands-on experience, tailored for those looking to deepen their understanding of private equity (PE) through practical application. Partnering with PE firms identified through the Columbia Business School's (CBS) alumni network in the New York City area, this program supports students who work on specific research projects integral to the firms' current deals, portfolio management, or investment strategy. These projects are screened to be mission-crucial but not mission-critical for the firms. This ensures students will work on meaningful projects while protecting the partner firm’s performance. The course thus facilitates a connection between a student and a PE firm with a self-contained research project that could benefit from the student’s skills.
The course aims to coordinate a collection of such projects that would otherwise be organized as “Field Study Projects” in independent studies and seeks to overcome the challenge of students sourcing these opportunities and identifying faculty advisors to mentor the project. Importantly, this is not an internship arrangement, and students are not paid (thus, the hours worked are capped at the usual amount of total expected class time).
This course applies financial theory to the issues and problems of asset management. In order to understand these issues, we must start with the specific goals, characteristics, and considerations of the asset owner. Asset owners may be individuals (e.g. personal wealth), collective owners (e.g. families or pension funds), charitable endowments and foundations (e.g. Columbia University), corporations, and nations (e.g. sovereign wealth funds). We characterize the properties of asset returns and the nature of various investment strategies to assess how asset management can meet the specific investment goals of asset owners. Asset owners usually delegate management of their portfolios to financial intermediaries, which may invest across a broad array of assets or specialize in a certain investment style or asset class. The delegated nature of investments necessitates understanding the principal-agent issues and market frictions associated with each type of asset class.
This first objective will be achieved via an overview of the industry, overviews of specific subsets of the industry and guest speakers with expertise building and operating businesses in asset management.
The second objective will be to arm students with enough information around the practical aspects of asset management, such that they can put together a reasonable business plan for a start-up asset manager. Students will then present those business plans on the last day of class.
This course studies the evolution of the high yield bond and loan markets, and the behavior of market participants from
peak to trough and back again through various credit cycles. Through lectures, case studies, and guest speakers, we
discuss through-cycle changes in valuation, structure, capital raising, liquidity and other investor considerations.
To provide context, we will use the Caesars/Harrah’s 2006 leveraged buyout as a case study that illustrates each phase
of the credit cycle. Four other case studies (HCA, NXP, Realogy and a contemporary case, TWTR) will be used to highlight
the two extremes of the cycle (“feast” and “famine”), and how they build on the calmer (some might even say boring)
phases of the credit cycle.
Students should leave the course with an understanding of the concept of the credit cycle and the ability to identify peak
and trough conditions and behaviors.
This course studies how private equity sponsors increase the value of their investments from deal closing to exit. Using examples from real-world transactions and guest lectures, students will learn the how of value creation in private equity.The course focuses on three types of value creation strategies: financial engineering, governance engineering, and operational engineering.
The course focuses on the set of concepts and techniques used to analyze and finance income-producing real property. It starts with the characteristics that make real property different, including cash flow uncertainties, debt sources and tax features. It then considers the available strategies and structures of real estate finance, including capital structure choices for construction and permanent financing. Extensive use is then made of cases to illustrate the range of choices and outcomes.
The Real Estate Project Class provides students who intend on pursuing careers in real estate the opportunity to learn how to analyze and execute value-add investments and presentations of same under the guidance of an experienced professor and practitioner, as well as a veteran real estate owner/investor/intermediary sponsor. The course will include instruction in investment conceptualization, analysis, strategy, research and execution. Presentation skills, both oral and written, are integral to the course and project. Two student groups, each group consisting of three or four students, will work with an outside project sponsor to create a transaction presentation based on a real-world sponsor investment.
Personal laptops will NOT be permitted in class. CBS iPads will be permitted only.
Either B8332 RE Transactions or at least 1-year experience of real estate/ transactions experience with instructors permission is required for this course.
This half-term course will introduce students to the fundamentals of global real estate investment from an institutional perspective through an exploration of specific strategies for structuring global real estate portfolios. It will also provide students with an analytical framework and the tools to analyze and value cross-border real estate investments in developed and emerging markets. Given current market conditions, attention will also be paid to asset management strategies.
This advanced course teaches the real-world skills required to finance infrastructure assets, taught from the perspective of industry practitioners. Each week, students will learn how to apply project finance principles to invest in a different infrastructure asset, including utility-scale solar, wind, battery storage, natural gas, and nuclear projects. Classes will feature a mix of lectures, case studies, hands-on modeling, and discussions with industry experts.
Trillions of dollars in investment are needed to build the infrastructure to address climate change and the growing demand for electricity. This course is designed for the students wanting to learn how to make those investments. By the end of the course, students will be prepared to navigate the complexities of infrastructure finance, including the frameworks, tools, and skills to invest in projects driving the global energy transition.
The purpose of this course is to give students an in-depth discussion of academic and policy/practitioner research to be able to address and evaluate the following questions. What are the challenges in measuring poverty? How pervasive is poverty and what are the underlying drivers of poverty? Has economic growth in developing countries (such as Brazil, China and India) helped to alleviate poverty? How pervasive is poverty in the United States? What are informal credit markets? Who participates in them? What are the interest rates and default rates in these markets? What are the challenges to the flow of credit to the poor borrowers? How can they be surmounted? What is the role of microfinance in delivering financial services to the Poor? How successful has been this effort? What are the challenges? What are some of the recent capital market innovations in the markets for the Poor? Can they help to scale up and bring down interest rates? - What are some of the innovations introduced by corporations and governments in this field? With a view to addressing the questions above, the course will begin by examining how poverty is measured, and characterize (using different measures) how pervasive poverty is. In this context, we will pay special attention to simple (exogenous) measures of poverty rates, and multi-dimensional measures of poverty, which link poverty to some underlying deprivations (such as lack of access to education, healthcare, living standards, etc.). We will also examine how the poor organize their lives, budget their consumption expenditures, and survey their access to certain services. After this the course will present evidence on the extent to which poverty has been alleviated in different parts of the world, and how the results compare with the Millennium Development Goals (MDG) set by the United Nations in 2000. Newly established Sustainable Development Goals will be briefly presented. We will also explore the extent to which economic growth in countries has influenced poverty rates. In this context, we will examine the poverty alleviation process and major indicators of poverty in Brazil, China and India before and after these economies began to experience significant economic expansion: this discussion will shed some light on the relationship between economic growth and poverty rates. After characterizing poverty, the course will turn to the role of markets (broadly defined to include private markets, corporate social initiatives, and government initiatives) that address the needs of the poor
The primary objective of this course is to provide you with a comprehensive
understanding of the significant economic, strategic, and regulatory aspects involved in financing
innovations within the healthcare industry. In the ?first half of the course, you will be introduced
to the risk-return pro?les and market failures specific to the biopharma industry. Additionally, we
will explore the integral roles played by various ?financing channels, including government funding,
non-pro?t organizations, venture capital, and mergers and acquisitions, in driving the innovation
process. The second half of the course will focus on examining the distinctive ?financial characteristics of U.S. hospitals and analyzing how external financing impacts healthcare quality and
technology adoption.
Applied Security Analysis I emphases practical application of value investing. Students will work in teams to find an appropriate investment idea, perform thorough primary research, and deliver a pitch to a portfolio manager."The class is integrated with The Pershing Square Value Investing and Philanthropy Challenge. This competition, which began in 2007, signifies the commitment of both Columbia Business School and Pershing Square to produce talented and knowledgeable graduates who are ready to take on leadership roles and to demonstrate the importance of philanthropy to these future leaders in value investing. Winning teams will receive a cash prize with a percentage of those winnings to be donated to a charity of their choice.All student teams will pitch their ideas to investment professionals three times over the course of the semester, simulating the job of the analyst to convince a portfolio manager of the worthiness of an idea. Feedback will be provided on the strength of the idea, the areas of further research required, and presentation skills. *Class attendance is required when outside speakers are present including Bill Ackman, the Philanthropy Discussion, and Finals (takes place off-campus). Grades will be reduced 1 level (ex. H to an HP) for any unexcused absences.**This course will be demanding. Students should expect 20-25 hours of work per week outside of class."
The goal of Distressed Value Investing is to provide students with broad-based exposure to what is one of the most complex and intellectually stimulating areas of the market. The class will introduce distressed investing broadly, touching on many different styles of investing in distressed companies and securities. The class also emphasizes hands-on distressed analysis, teaching students to interpret and learn from dynamic real-life situations. To facilitate this learning process, the class includes the insights of many guest speakers.
This class, taught in Term A, is intended to teach students the fundamentals of the value approach to investment management developed by Graham and Dodd. This will be done through a combination of formal lectures, cases and in-class valuation discussions. The substantive areas covered will include (1) the fundamental assumptions and approaches to value investing, (2) techniques for assessing fundamental value - balance sheet and earnings power approaches, (3) structuring value-based portfolios to control risk and (4) designing strategies for searching efficiently for value investing opportunities.
This class combines B8377 Value Investing in Term A with the Value Investing with Legends lecture series in Term B. Term A is intended to teach students the fundamentals of the value approach to investment management developed by Graham and Dodd. This will be done through a combination of formal lectures, cases and in-class valuation discussions. The substantive areas covered will include (1) the fundamental assumptions and approaches to value investing, (2) techniques for assessing fundamental value - balance sheet and earnings power approaches, (3) structuring value-based portfolios to control risk and (4) designing strategies for searching efficiently for value investing opportunities. The second half of the semester (Term B) is intended to expose students to the practical implementation of Graham and Dodd investing principles. Through presentations by leading value investors, students will learn how individuals develop an investment process to suit their personality and personal biases. Investors will discuss: 1. search strategy, 2. valuation approach, 3. research techniques, and 4. risk management in the context of their own investments.
This will be a demanding class meant for the student intent on entering the investment management industry post-graduation. As such, only students who demonstrate a compelling interest in professional investment management will be admitted, and admission will be limited to 10 students to ensure quality of experience for all involved. This seminar is not open to the bidding process and no auditors will be allowed. The purpose of this section of Advanced Investment Research is to help students learn how to rip apart" a company and draw thoughtful conclusions about whether it might make for a good investment opportunity. Topics will include stock selection, identifying the key investment factors, developing a variant view, and networking with industry contacts to help confirm or refute one's thesis. The class will culminate with students delivering a detailed research recommendation on a single investment idea to a panel of judges. The goal is for students to leave class with an actionable investment idea and a framework for how to develop and research ideas in the future.
This class will be demanding and potentially overwhelming if you are not prepared to dedicate significant time and energy to it. Students should expect 20-25 hours of work per week outside of class, and the work load may be higher if you have not previously done detailed fundamental investment research. We recommend that you do not take this class if you are unable to put in this amount of time because you will not be able to keep up, and you will not be happy with your final grade.
Note: this class will also include a substantial pre-class assignment which will be a material part of the final grade.
This course combines the methods and teachings of security analysis with practical buy-side methodologies to identify and research value investments across the capital structure. Emphasis will be placed on the development and implementation of a disciplined and repeatable research and catalyst-driven evaluation process. This course will leverage your theoretical learning in security analysis plus require you to develop business acumen and industry expertise. A combination of fundamental analysis and assessment of intrinsic value will be balanced with thematic thinking and business judgment. The course should arm you with the tools necessary to identify attractive value investments through a variety of methodologies for several alternative fund strategies, including event-driven investments and merger arbitrage. When reviewing capital structures, potential catalysts, and other elements related to the cross-asset investment process, dislocations, security mispricing, and hedging considerations will surface creating opportunities for the long and short sides. M&A catalysts will be vetted for their quality, timing, likelihood of occurrence, and estimated impact on securities across the capital structure.
This course focuses on the role of venture capital and venture capitalist in selecting, funding, and developing emerging growth companies. Students should expect to complete the course with a basic understanding of the processes employed by those making the risk-reward determinations to fund new and growing companies. The class should be worthwhile for students interested in venture capital, investing in growth companies, working with early stage and growth companies, and entrepreneurship.
This course examines key themes and issues related to investing in alternative assets from the perspective of major asset owners, such as defined benefit pension plans. The course will focus on the investment process and benefits of applying alternative investments, specifically hedge funds and fund-of-funds, to traditional portfolios. The course will also address the role of real estate, timber, venture capital, private equity, hard assets, infrastructure assets and commodities within traditional portfolios.The goals of this course are for participants to: Understand the objectives and constraints of institutional investors, specifically corporate and public pension plans; Appreciate the benefits, and potential drawbacks, of including alternative assets within the context of large institutional portfolios; Gain insight into the analysis and selection of hedge funds, as well as the construction of hedge fund of fund portfolios; Develop an awareness of analysis, selection, and management of alternative asset portfolios including private equity, commodities, currencies, etc.This course will make significant use of practical, real-world examples. Moreover, the professors expect to engage CIOs of pension plans, as well as major hedge fund managers (such as David Einhorn of Greenlight, Scott Bessent of Soros, and others) to participate in the course as guest lecturers.Students who are looking to pursue careers in any traditional or alternative asset class will benefit from this course. Further, students interested in careers at corporate or public pension plans, fund of funds, consultants or research providers should benefit from this course."
This course is not a traditional business law class. This course is an application-oriented class that provides the business professional with an understanding of certain essential legal concepts that are an integral to anyone embarking on a career which involves public or private company transactional activities.
The purpose of this course is to provide the student with a framework that will enable the student to identify legal issues that arise in various circumstances during the deal process and analyze ways to optimize the desired economic outcomes through an (a) understanding of the likely legal implications of a particular strategy and (b) appreciation of the consequences flowing from the deal structure and documentation. This course will focus primarily on the legal regime in the United States, although the laws of other jurisdictions will be noted where appropriate.
The course is highly interactive – legal principles will be imparted as students seek to identify legal issues arising in actual deal situations. Student class participation is a significant element of the course, accounting for 30% of the student grade.
Employers now use these tools in their daily work, and they expect new hires to arrive with
practical experience rather than general familiarity. They need someone who can produce financial
analysis with AI, who knows where the tools fail on financial data, and who takes responsibility
for the result. That expectation falls most directly on the newest members of a team, and this course
is designed to help you meet it.
At the same time, I hope this course helps you build a “brand” of your own. As AI takes over more
of the analysis, the analysis itself will do less to set you apart as the people you compete with will
have the same tools. What sets you apart will inevitably have to be harder to copy: a story about
what you have done and why, a point of view about where the tools help and where they mislead,
and a reputation as someone colleagues want on their team.
Cities are dynamic centers of human achievement where new ideas are generated, industries flourish, and cultures intertwine. Highly skilled workers, creatives, entrepreneurs, and scientists have long been drawn to these dense urban environments due to social and professional networks, industry clustering and the myriad of cultural and public resources cities offer. However, the Covid-19 pandemic disrupted the trend towards increasing urbanization as workers emptied urban downtowns and worked remotely. These disruptions have important consequences for city economies and urban and suburban real estate valuations. Cities are now forced to transform once again and re-imagine their future in a world of hybrid work, AI, and climate change. This course will explore how urban centers are adapting to these seismic challenges and how leaders must reconcile future growth with social and environmental stewardship. This course will explore the process of disruption and transformation using cities as the unit of analysis. It will combine conceptual analysis with real-world strategies pursued by cities such as New York City to effectuate urban regeneration. This includes critical infrastructure underpinning urban mobility, clean energy, and real estate investments in housing, office, industrial and entertainment assets, often through public-private partnerships. This course is meant for MBA students seeking a bigger-picture perspective on the intersection of business and government in the realm of real estate, innovation and infrastructure.
The course "Private Equity" focuses on the essential aspects of corporate finance relevant to the private equity industry. The course follows the "private equity cycle" of selection, valuation, and harvesting. Initially, students learn to evaluate a target company from the perspective of a private equity firm, keeping in mind the needs of investors and management. The course then delves into financial modeling, deal structuring, PE fund raising and private equity investment management. We will cover the basic LBO model used throughout the industry to structure and value deals.
“Advanced Private Equity” expands on the topics learned in “Private Equity” from a PE investment professional's perspective. The course follows the private equity cycle from sourcing to exit. With the help of guest speakers from the PE industry, students will learn about the early stages of the deal process: sourcing and diligence. The class will build a complex three-statement LBO model, learning about how modern deals are structured with private credit, management rollovers, and non-traditional capital structure decisions. The course shifts to the ownership side of PE deals: value creation. We will cover the strategies used by PE owners to grow and improve their portfolio companies, incorporating initiatives into our models. The course uniquely combines lectures and guest speakers on all topics, where the guest speakers bring applications of all key issues to the classroom.
This course is targeted for both business and law school students seeking to develop an understanding of the issues involved in raising capital for entrepreneurial ventures as well as emerging growth companies. The course will combine a brief overview of the fundamentals of securities regulation with a practical analysis of the key business and valuation issues to be considered in raising capital at all stages in a companys evolution from startup to IPO. The course will draw from case studies based on the actual experiences of entrepreneurs and companies in their pursuit of growth capital.
FINCB8421
Corporate valuation and financial modeling covers a wide range of valuation methodologies used in industry. At
the end of the course, students will be able to value a firm or a project. To reach this goal, we will cover the
following topics:
1. The free cash flow method for firm valuation
2. Financial statement modeling
3. The appropriate opportunity cost of capital for the FCF
4. Choice of capital structure
5. The relative valuation approach to firm valuation
6. Other approaches: the APV method, the LBO model
The course will consist of approximately one-half lecture and one-half in-class case discussions, for which students
should prepare carefully.
“Private Equity Capstone” asks students to synthesize their learning, experience, and service during their time at CBS
into a final project. Students identify an area of interest and deliverables before the class starts. They identify a PE firm,
investor, or portfolio company to sponsor their project from their own searches or the PE Program’s network. The
sponsor and student work to refine the details of the project (one of four general options), where the question or issue
is relevant for the sponsor’s current business. The sponsor’s role is to provide the seed of a real-world business or
investment problem faced by a practitioner, while giving the student feedback on the project. The course provides an
opportunity for the student to gain experiential learning beyond internships and networking opportunities.
Financial outcomes depend on far more than selecting investments with attractive risk-adjusted returns. Households, wealthy families, and long-horizon capital owners face taxes, liquidity needs, retirement spending, insurance risks, estate considerations, charitable giving, concentrated positions, and intergenerational objectives. A strong wealth management process brings these decisions together so that capital is managed in service of the client’s broader financial goals rather than in isolation.
This is what distinguishes wealth management from investment planning. Investment planning focuses primarily on portfolio construction, asset allocation, security selection, diversification, and implementation. Wealth management incorporates those disciplines but adds financial planning and, critically, the integration between the two. Each of the decisions above can materially change what the optimal portfolio should be. In that sense, wealth management is about maximizing after-tax, after-fee wealth, not simply maximizing investment returns.
We are in the midst of a historic capital expenditure supercycle driven by artificial intelligence; yet, data centers—the physical “building blocks” of AI—remain comparatively opaque even as they become part of everyday life. This course provides “ground truth” on what data centers are, how they come together, and the perspectives of the developers, customers, utilities, investors, and policymakers who make them happen. This is a practitioner’s course and does not require a specific technical background; it is for students interested in real estate development and investing, energy infrastructure, public policy, and technology.
This will be a demanding class meant for the student intent on entering the investment management
industry post-graduation. As such, only students who demonstrate a compelling interest in professional
investment management will be admitted, and admission will be limited to 12 students to ensure quality of
experience for all involved. This seminar is not open to the bidding process and no auditors will be
allowed. Please see the below for details on admittance.
The key to equity wealth creation is hiding in plain sight. Since 1926, a mere four percent of stocks have
generated all the wealth in the US stock market1. We call these unique companies “compounders.”2
With the exception of a few magic market companies (Facebook, Google), the vast majority of
compounders achieve this distinction in two acts. One product in one market, in most cases, is simply not
enough to become a durable and sustainable large-cap company. A second act is usually an adjacent
product or market. Think of Netflix transitioning from in-home DVD rental to streaming, or Grubhub
moving from marketplace to first party delivery, or Vail Mountain Resorts translating its subscription
season pass into an acquisition platform.
Compounders is a class dedicated entirely to the exploration of these companies. We will start off with an
examination of their core characteristics and life-cycle. We will then delve more deeply into four
compounder patterns, illustrated with case studies and brought to life by the executives who led these
companies to this rare distinction.
Students will be paired with experienced investors and, over the course of the class, will study six recent
compounders with the goal of extracting contemporary patterns that may help us to identify the future
drivers of equity wealth creation. The goal of the class is to understand compounder patterns: what are
the people, processes and systems that allow small companies to become durable and sustainable large
companies over time?
Corporate credit markets are a central part of U.S. capital markets, however they are generally not well understood by MBA graduates, due to a more typical classroom focus on equities. This course will enable students to develop an understanding of the corporate credit markets and build a practical skill set to evaluate and invest in individual credits using a classic Value Investing methodology.
The approach will be a pragmatic one. Throughout the course, we will focus both on learning how to interpret the market as well as on 4 to 5 different companies - all debt issuers of different credit risk profiles - and will utilize class lectures to discuss the factors that shape capital structure and pricing of various securities (debt or equity) issued by these companies. As part of the final project, students are expected to work in teams and analyze and generate a buy or sell recommendation on the securities issued by a U.S.-based corporate issuer. This assignment will provide students with an opportunity to solidify the learnings in a hands-on, experiential manner.
In addition to lectures and student presentations, students will also hear from representatives of private equity, credit and distressed investment management, and investment banking firms. These speaker sessions will enable students to gain access to multiple viewpoints to credit markets and various investing techniques and styles.
Given the importance of credit to companies, we believe that the skill set and knowledge obtained from this class will be valuable whether one becomes an equity (public or private) investor, a credit investor, or an investment banker. We want this course to prepare students for an internship or full-time role in credit research; while we welcome anyone with an interest in the class, the material is targeted towards those with limited corporate credit experience.
The course is very experiential. Learnings will be applied to companies that are currently fundraising and you will assess each company as if you were considering investing. There will be 2-3 guest lecturers (in addition to the startup pitches) from experts in the ecosystem so students get a varied perspective. Real company info will be shared in this class. As a result, class slides will be handed out in class but not shared electronically and class sessions will not be recorded.
Please note that this section of Foundations of VC is application-based only and only open to students enrolled in the Venture Fellows Program. Students interested in taking this course should consider B8439 Foundations of Venture Capital: https://courses.business.columbia.edu/B8439
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Foundations of Venture Capital is very experiential. Learnings will be applied to companies that are currently fundraising and you will assess each company as if you were considering investing. There will be 2-3 guest lecturers (in addition to the startup pitches) from experts in the ecosystem so students get a varied perspective. Real company info will be shared in this class. As a result, class slides will be handed out in class but not shared electronically and class sessions will not be recorded.
This seminar, taught by adjunct practitioners Kristin Gilbertson and Andrew Gundlach 01, focuses on portfolio management for family offices, public endowments and private foundations, and to a lesser extent pension funds. The class will introduce the various investment strategies employed, the development of an investment policy, asset allocation, risk management, the choice between active vs. passive management, consideration in evaluating fees and incentive structures, liquidity management, the manager search process, operational due diligence and ongoing performance monitoring. Public and private equity strategies (long only, hedged, PE, VC and direct investments in equities) will be the primary focus, though macro, event arbitrage and fixed income/credit will also be reviewed. Also to be discussed are asset allocation and implementation are influenced by important considerations such as investor tax status, philanthropic goals, societal values, liabilities and payout ratios. There will be guest speakers, and the final exam will be a semester-long project of relevance in the field. This is an application based course, which is not open to the bidding process.
Whether you want to follow a career in private equity or just want to know how to intelligently analyze investment opportunities, define successful strategies and manage companies, this course will build on concepts learned in the introductory Private Equity course and provide you with the necessary skills to be a successful value-oriented private equity investor, while understanding the particular challenges of investing in Emerging Markets.
Through a combination of lectures, case discussions, real life examples and a Private Equity Game Simulation this course focuses primarily on the two key components of a successful private equity business:
Analyzing & Selecting Investment Opportunities
and
Managing Portfolio Companies, with a special focus on crafting winning marketing strategies
.
The skills & toolkit you’ll learn in this course, go beyond Private Equity. Analyzing & valuating businesses, implementing operational improvements and realizing value for shareholders are key activities for any organization, especially those operating in Emerging Markets.
This course builds on the basics covered in the Private Equity Finance course and
focuses on three main issues: 1) Value creation through strategic marketing analysis of opportunities, 2) Management of portfolio companies
and 3) How these concepts apply in Emerging Markets
Specifically, we will review key models and frameworks used by top world-class PE practitioners and management consultants to evaluate deals, to better understand industries, drivers of value, players and the likelihood of success of different business models.
Additionally, we will focus on how to manage portfolio companies to achieve superior returns and how to diagnose, solve, recommend and implement top strategic corporate decisions.
All of these skills will be developed and discussed through the lens of Emerging Markets, paying particular attention to the added complexity that these markets bring to PE investment, mainly regarding macro risks, information asymmetry, governance and other issues.
The course´s ultimate objective is to develop a disciplined, structured and analytical approach to consistently help you evaluate deals and manage investment opportunities in Emerging Markets.
Learning Objectives & Course Overview: To understand the spectrum of investment theses, from very specific to more opportunistic. To understand the process of developing an investment thesis (different roles, who is involved, what resources are needed). To start to build a perspective on a specific sector as an early stage (Seed / Series A) investor. This course will cover different sectors each time it is taught, and it is not meant to be a deep dive on any one particular sector There will be 2-3 guest lectures where students will hear investors share their firms investment thesis, so students get a varied perspective. Real company info will be shared in this class. As a result, class slides will be handed out in class but not shared electronically and class sessions will not be recorded. Intended Audience: Aspiring investors who want to understand how investors develop an investment thesis Founders who want to understand how seed investors evaluate startups. This course is not intended for students who want to deep dive on a particular sector or who want to specifically focus on growth and later stages of VC investing. This course will not go deep into these topics: Strategic VCs (corporate/government/university), organizational structure (the merits of having a deep platform team) and governance of a fund (compensation, investment decision voting).
B8332 Real Estate Transactions is recommended. The goal of this course is to make you knowledgeable and conversant about the principles of real estate investing as applied to purchasing distressed assets. The Covid crisis is only the most recent example of how changes in the economy or capital markets can have a profound impact on real estate investors. During the Great Recession and the US Savings and Loan crisis before that, real estate assets suffered appreciable losses, and thus also provided an opportunity for investors to find new opportunities to recapitalize and reposition troubled properties and companies. As both a physical asset and an investment asset with a defined location in space, real estate is strikingly different from other asset classes. It is a long-lived asset that depends on attractive financing, rental increases, and long-term appreciation to maintain its value. Real estate forms part of the alternative investment asset class and institutional investors target a substantial part of their alternatives portfolio in real estate. The class will cover both US and international distressed investments and across traditional and niche sectors. The goal is to provide students with the tools to identify and purchase distressed real estate assets globally and to target superior risk-adjusted rates of return.
This course will focus on investing in private credit up and down the debt stack including senior secured, mezzanine, unsecured, and convertible debt from both an origination and secondary market perspective. In addition, there will be an introduction to portfolio construction and management including workouts and loan sales.
Real estate accounts for one third of the capital assets around the world. You simply cannot ignore it in as an investor or in any business, whether the business is called real estate or not. The last few years have seen a rapid increase in the use of Big Data in the real estate industry. Much more data have become available that allow companies to radically improve their decision making and create value in ways that are rapidly transforming the real estate industry. This course will use tools from business analytics and new, large real estate datasets to help shed light on important questions in residential and commercial real estate. The course will foster both conceptual understanding and hands-on skill acquisition through coding in Python. This course is meant both for students with strong programming background who want to learn more about real estate and for students of real estate who want to beef up their data analytics skills.
Python knowledge needs to be demonstrated by passing the CBS Python advanced-proficiency exam (B0002). Anyone who has not taken "Python for MBAs" and woud like to register for that class should email python@gsb.columbia.edu to arrange a special sitting of the advanced qualification exam.
This half semester course provides students with the opportunity to perform due diligence on early-stage social ventures
(nonprofit and for-profit ventures with a social or environmental mission). This course is designed for MBA students
interested in impact investing, social entrepreneurship, or philanthropy. The objective of the course is for students to
learn both the theory of investing in early-stage social ventures and the practice of evaluating early-stage social ventures
through a due diligence process. This course is not designed for the evaluation of larger, well-established social
enterprises.
Students are placed in teams to evaluate social entrepreneurs from the Columbia University community who have applied
for funding from the Tamer Fund for Social Ventures. The course is a combination of in-class lectures and discussion, and
practical application of class lessons outside of the classroom. Major topics covered include: the due diligence process,
assessing venture pitches and teams, due diligence in emerging markets, due diligence of non-profits, impact
measurement and management, and valuations and deal structure.
During the course, each student team completes detailed due diligence on their assigned social venture, including
diligence on applicants, the social venture and the sector. The course concludes with student teams submitting a written
due diligence report and a recommendation for funding to the Investment Board of the Tamer Fund for Social Ventures.