Private Equity Simulation

In this Private Equity Simulation, participants step into the role of investors, evaluating deals, structuring transactions, and driving value creation while balancing financial performance, strategic alignment, and exit opportunities under pressure.

Private Equity Simulation Overview

Participants act as private equity professionals navigating the deal cycle from sourcing to exit. Each round introduces challenges such as target company evaluation, deal structuring, leverage choices, portfolio management, or exit timing.

They must balance risk and return, negotiate with management teams, and manage limited partner expectations. The simulation emphasizes both analytical skills and judgment in building long-term value.

This simulation is ideal for MBA programs, executive education, and corporate finance training. It makes private equity tangible by mirroring real-world pressures, from investor negotiations to portfolio oversight.

Private Equity Simulation Concepts

Participants work through realistic scenarios, which can be customized to emphasize or exclude specific topics depending on learning goals. This modular structure allows the simulation to be tailored to any type of session. Key concepts include:

Deal sourcing and target screening
Valuation methods and financial modeling
Leveraged buyouts (LBOs) and capital structure optimization
Negotiation with management and co-investors
Portfolio company monitoring and operational improvements
Governance and board oversight
Risk-return trade-offs in private equity
Limited partner (LP) reporting and relationship management
Exit strategy design and timing
ESG and long-term value creation in private equity

Gameflow

What Participants Do

In the simulation, participants act as private equity professionals managing deals and portfolios. They:

Evaluate target companies and build valuation models
Negotiate transaction terms with management and other investors
Design capital structures balancing debt and equity
Make operational and strategic improvements in portfolio companies
Manage LP relationships and reporting expectations
Decide on exit timing through IPO, sale, or secondary buyout

Learning Objectives

By the end of the simulation, participants will be able to:

Understand the private equity deal lifecycle
Apply valuation and modeling skills to investment decisions
Structure deals with optimal financing mixes
Manage portfolio companies to drive operational improvements
Balance LP expectations with portfolio performance
Develop negotiation and stakeholder management skills
Assess risks and returns in private equity deals
Design exit strategies aligned with market conditions
Explore ESG’s role in private equity decision-making
Gain confidence in private equity strategy and execution

The simulation’s flexible structure ensures that these objectives can be calibrated to match the depth, duration, and focus areas of each program, whether in higher education or corporate learning.

How the Private Equity Simulation Works

The simulation can be delivered individually or in teams, across classrooms or executive training sessions. Each cycle mirrors a stage of the private equity process.

1. Receive a Scenario or Brief: Participants are introduced to a new investment opportunity or portfolio challenge.

2. Analyse the Situation: They review financials, industry context, and strategic options.

3. Make Strategic Decisions: Participants decide whether to pursue deals, structure terms, or optimize portfolio performance.

4. Collaborate Across Roles: Teams may role-play as investors, management, or lenders negotiating terms.

5. Communicate Outcomes: Participants present investment memos, deal pitches, or portfolio updates.

6. Review and Reflect: Feedback highlights portfolio performance, investor trust, and exit outcomes. Participants refine strategies across rounds.

Frequently Asked Questions

Do participants need prior PE experience? No. The simulation is accessible while still challenging for advanced learners.
What roles are included? Investors, management teams, lenders, and LPs.
Does it include LBO modeling? Yes. Leveraged buyouts and financing structures are central to the simulation.
Can it be customized by industry? Yes. Scenarios can reflect manufacturing, tech, healthcare, and more.
How long does it run? It can be a 4-hour workshop or extended into multi-day programs.
Is teamwork required? Yes. Teams role-play investors, managers, and other stakeholders.
Does it cover exit strategies? Yes. IPOs, sales, and secondary buyouts are included.
Is it suitable for executives? Absolutely. It’s widely used in PE training and executive programs.
Can it run online? Yes. The simulation supports online, hybrid, and in-person delivery.
How is success measured? By deal returns, portfolio health, and LP trust.

Assessment

Assessment can be tailored to focus on financial analysis, strategy, or negotiation. Participants may be evaluated on:

Quality of valuations and deal structuring
Effectiveness in portfolio company decision-making
Balance between LP expectations and performance outcomes
Communication clarity in pitches and reports
Collaboration and negotiation effectiveness

You can also include memo writing and debrief presentations as part of the assessment structure. Additionally, you can also add a built-in peer and self-assessment tool to see how participants rate themselves. This flexibility allows the simulation to be easily integrated by professors as graded courses at universities and by HR at assessment centres at companies.