Student-run private equity funds?
Do any schools have student-run private equity funds that manage real money? I know most schools have regular funds with stocks.
Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
Do you even fucking know what private equity is?
Hate all you want but look at this student ran PE Fund. https://www.ugrowthfund.com/investment-portfolio/
Pinterest
Postmates
Lyft
Airbnb
Snapchat
Spotify
Kinda hard to argue with that.....
Utah actually has two of the largest student ran PE funds. Both place very well.
holy shit
https://www.ugrowthfund.com/team/
The leftmost guy is wearing deal sleds hahaha, I love this
I currently work as an associate at University Growth Fund (UGF), the largest independent student-run PE firm in the US. It has been the single most valuable experience in all of my college career because of the deal exposure and extremely smart people you meet. From day 1 you get to work on all sorts of VC deals but PE deals as well (although way more VC than PE and Growth Equity). UGF is a $50M fund that's led by 2 general partners, both are incredibly talented investors as you can see in the portfolio, one of them even studied at Harvard Business School. The fund is entirely run by mainly undergrad students but also some MBAs & PhDs from colleges in Utah & San Diego, California. It's game-changing because you get to work with the smartest students you'll meet on real live venture deals, making you way more competitive in recruiting during college; making students from UGF place at top bulge brackets banks and PE funds regularly. I have landed an IB Technology coverage SA 2021 offer in San Francisco at a bulge bracket (think JPM/CS/BofA) thanks to all the experience and training I received at UGF and I couldn't be happier. The only downside is that it is unpaid, but the experience and opportunities make up for it in the long term.
something like this?
https://www.thecreatorfund.com/
or this
https://entrepreneurship.rice.edu/about-the-student-led-venture-fund
I remember my school had at least 2 PE mini funds for various investments. so yeah, they are pretty common I think. not sure how many there are though.
Your two links are wannabe VC funds
I know what the links are, I posted them.
Well, what exactly is the expectation here? That there is a 10 billion dollar fund run by students who have no actual work experience? I would say, no, have never heard of such a fund.
What is your point prospect?
This sounds like a horrible idea
Imagine having your job and livelihood depend on the competency of a bunch of inexperienced 21 year olds running a over leveraged company.
What, like 2007 Bear Stearns?
Who the fuck would want to be a lender to these companies.
This could be a great idea. Maybe I'll start getting the LBO questions right on superdays
Do you know how risky and downright stupid it would be for a bunch of undergrads with no experience and limited knowledge of the financial and legal risks to run a pe fund and call up a business owner to pitch the standard " Control supply chain, vertically integrate, off shore your employees and dividend recap".
Can you explain to me what will happen when you lever a company up to Lehman Bro levels circa 2007 in order to get those fees, juicy returns, flex the IRR and it collapses because your greed is good circle jerk does not know how to adequately adapt to the competition or industry headwinds and your "insight" is a bunch of academic bs.
How are you going to explain that financial stress to creditors, how are you going to explain that a business is now royally fucked to the owner that wanted to exit into doing coke off a models asshole in Ibiza after listening to Avicii for the 10th time in a row?
I think the fact that you have to even ask this question pretty much answers it. Private equity investing is esoteric, risky, and illiquid; so why the FUCK would an investor willingly fork over a few mil to some dumbass college kids who don't know the first thing about navigating a sale, debt issuance, or managing a company. Do you think a bunch of 20 year olds are fit to handle millions of investor equity? HA!! Student run "funds" are usually >$1mm AUM long-only equity pools with no leverage that invest in blue chip stocks and ETFs. Chump change in a bunch of highly liquid constituents. Rich alums will throw in a few thou here and there for shits and giggles.
Lmao I’d pay to watch a bunch of undergrad chads lever the shit out of a POS company and then navigate a RX process. Would be great fun to see. Why don’t you just go out and raise a quick $100mm for your college “PE fund” so we can watch OP??
Kenan-Flagler has a real PE fund but it's nearly impossible to join.
Yeah its mostly MBA students with only like 5 very top senior undergrads getting in each year.
https://www.kfpefund.com/
I go to UNC and all these students are really respected, definitely the top of the top out of anyone finance focused. I also think its the same amount of MBAs and undergrads usually and you enter as a second semester junior (or first year for MBAs I guess).
Without digging in myself other than looking at their portfolio, I'm guessing they co-invest as a minority on transactions associated on the majority with larger more seasoned PE firms? Still good analytical experience for top students with lesser risk / need for a strong reputation / likely tied to deals w alum in PE is my guess. Who knows though, I'm always surprised in this world
^someone mentioned it but Kenan-Flagler has a pretty amazing but selective program for undergrads and MBAs. A coworker of mine (at UMM) was in it. It lasts 3 semesters (get class credit for it) and you coinvest with legit sponsors. It's no BX, but they raise a few million every couple of years which is impressive.
Wait sorry, what can you do with a few million dollars? Not trolling, srs.
Also, I love the caveat "it's no BX." It's a bit disingenuous..
many schools have departments or outlets for student’s entrepreneurial ventures that some of these student-PE funds invest in. Other than that I’m not sure. Really great way to boost university offerings to students on two fronts
"The Kenan-Flagler Private Equity Fund will offer you a unique learning experience. Launched in 2007, this fund has more than $6 million in committed capital under management and was the first student-run fund associated with a top-tier global business school that seeks to provide real returns to its limited partners. Working for the private equity fund, you’ll receive course credit while you manage all aspects of the investment cycle — raising capital, sourcing deals, performing due diligence, making investment decisions, and presenting decisions to the faculty/advisory committees and the board of directors."
Didn't go to UNC but it looks like it's more about the learning experience. Obviously they're not generating massive returns but coinvesting a small amount gives you insight into the process. Seems like an interesting club/class, that's it.
Lets LBO the lemonade stand on Campus - I am sure that if you follow the advice from Billy right here there is no way that this goes sideways
Tbh not super unheard of. Know a few schools that have funds that are more focused on small businesses/VC and some real estate PE. Lot of times they invest in like a 5% equity stake with a "real" sponsor that is affiliated with the school (usually alums or have a strong connection to a particular professor). Those deals could probably still be done without the students, but its a way for sponsors to give back to the school. Sure- they aren't really true PE sponsors, but it's cool and super educational to be part of those processes.
Duke has one but it's mostly seed-staged and impact-focused: https://www.dukeimpact.org/
...
The LSE has a pretty interesting one, would definitely check it out. A lot of these deal with student ventures and similar things that require smaller, seed-stage investments.
never heard of one, mostly student funds that invest in stocks along with their endowments or separately via alumni donations
Yeah no
A student run investment fund that trades public equities and options are more suitable for undergrads. But in PE you have to actually talk with the business owner, take stakes, do proper DD, etc.
Check out University Growth Fund. It's ~$50M AUM and has offices in Utah and California. It's mostly growth equity but participates in the occasional control investment.
It's run by two partners (one an ex Merril banker). All of the diligence is done by college students, who research and pitch deals.
Typically, it invests in growth-stage deals (Series B through Pre-IPO). Since it's a co-investment firm, it gets access to great deal-flow (check out the portfolio).
Note: it is NOT affiliated with any one university; it's called "University Growth Fund" because the diligence is done by university students.
the college class of 2024 is so fucking cringe.
I as the class of 2023 can 10000% say without a reasonable doubt that the cringe started in 2024. All classes before that, especially the class of 2023, where never, EVER, cringy. #CO2023Supremacy
Class of 2023 >>>>
Everyone talking about VC/Early stage funds don't really understand that rather than the finance perspective colleges mostly do this to create and nurture the startup/creativity more than finance side of things.
Some Ivy League schools, like Dartmouth, has school-run, but student-supported venture and growth organizations.
Quidem corrupti omnis exercitationem cupiditate ut voluptatem porro. Atque odit minus quae tenetur odit. Et molestiae architecto aut assumenda laudantium exercitationem eligendi. Est sunt quos iure et natus sit vitae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Et modi doloribus non earum. Quas sed et molestiae unde iusto omnis voluptatem. Dolore at optio cumque nesciunt blanditiis atque.
In et quis consequatur qui placeat eos. Molestias eveniet consectetur officiis adipisci quod. Qui quod quia est omnis est enim et aspernatur.
Iusto dignissimos perferendis sit. Voluptas ut omnis eligendi natus quis unde et.
Autem id perferendis minus deserunt est ex aut molestiae. Culpa beatae laborum error officia numquam quia. Saepe quidem nihil fugit cumque omnis. Quidem quasi sint id nulla ex. Asperiores veniam velit architecto officiis eius qui rerum eum.
Repellendus quam optio praesentium. Placeat minus maxime itaque voluptatibus velit. Sequi a delectus omnis non et dolores quibusdam. Beatae dolor dolor recusandae quia assumenda ipsum qui vel. Sed maiores quidem a vitae. Fuga veniam est id temporibus voluptatem ut dolorem hic.