Venture Capital and Private Equity Module (Intermediate) Practice Exam
Venture Capital and Private Equity Module (Intermediate) Practice Exam
Venture Capital and Private Equity Module (Intermediate) Practice Exam
In recent years, small and medium enterprises (SMEs) have gained increasing recognition for their vital role in driving economic growth. However, they often encounter greater financial challenges compared to larger firms. Venture capital and private equity have become essential in addressing these challenges by providing crucial funding, especially to innovative SMEs, thereby promoting economic development and innovation. Private equity has established itself as a core element of a strong entrepreneurial ecosystem, serving as a significant funding source for startups, expanding businesses, and acquisition deals.
The Venture Capital and Private Equity Module (Intermediate) exam aims to equip candidates with a clear understanding of the role of private equity in the economy, the differences between various early-stage financing options, the structure and operations of private equity funds, and the range of post-investment support services that come with private equity capital.
Who should take the exam?
The exam is beneficial for:
Students
Finance Professionals
Entrepreneurs
Employees of SMEs
Anyone having in interest in this subject
Exam Details
Exam Name: Venture Capital and Private Equity Module (Intermediate)
Exam Languages: English
Exam Questions: 70 Questions
Time: 120 minutes
Passing Score: 60%
Exam Course Outline
The Venture Capital and Private Equity Module (Intermediate) Exam covers the given topics:
Topic 1: Understand Private Equity Background
Evolution of Finance for Business
VC Funds and PE Funds
Fund Structure
Leveraging in Funds
Forms of Investment by Funds
J Curve
Measuring the Performance of Investments and PE Fund
Topic 2: Getting Ready for Growth Capital from Funds
PE Investment Criteria
Role of Facilitators
Resource Mobilization, Valuation & Dilution
Topic 3: Learn about Business Model, Business Plan & Financial Model
Business Model
Business Plan
Financial Model
Background o Assumptions
Cost of Project & Means of Financing
Projected Profit & Loss Account
Projected Balance Sheet
Projected Funds Flow
Project IRR
Equity IRR
Loan Servicing Capability
Valuation
Sensitivity Analysis
Building Scenarios
Topic 4: Understand Buyouts and other Transactions
LBO
MBO
Project-based Funding Transactions
Distressed Assets Funding Transactions
Topic 5: Learn about PE Investment Process
Sourcing of Proposals
Initial contact / Flier
Non-Disclosure Agreement (NDA)
Information Memorandum
Management Presentation
Initial Due Diligence
Preliminary Investment Note
Non-binding Letter of Intent
Final Due Diligence
Final Investment Memorandum
Signing the Term Sheet
Closure of the Deal
Topic 6: Learn about Documentation and Typical Investment Conditions
Typical Investment Conditions
Subscription Agreement
Shareholders’ Agreement
Topic 7: Understand Tax Aspects of PE Investment
Section 10(23FB) of Income Tax Act, 1961
Section 10(47) of Income Tax Act, 1961
Income Types
Securities Transaction Tax (STT)
Tax on Distributed Profit (Dividend Distribution Tax)
Taxability of Interest
Taxability of Short Term Capital Gains on Debt
Taxability of Long Term Capital Gains on Debt
Taxability of Short Term Capital Gains on Equity
Taxability of Long Term Capital Gains on Equity
Taxation of Non-Residents
Topic 8: Understand Post-Investment Support, Monitoring and Exit