Real Estate Private Equity Modelling in Excel

Learn how to structure and model Real Estate Private Equity Funds. The course models the link between individual project appraisals taught on our Real Estate Financial Modelling School and the entity that purchases them. The individual property and tenant variables are combined from their NOI and incorporated into a three-statement operating model. You will also learn how to design an incentive scheme, model the distribution of dividends and value the fund. A variety of scenarios are then modelled such as Leveraged Buy-Outs (LBOs) and Venture Capital Contributions. Finally, you will test the key drivers of the underlying assets on overall returns.

On this course you will:

Build a Real Estate Private Equity Fund model
Understand Private Equity market structure and strategies
Understand the basics of Fund Valuation and related metrics
Review accounting principles as applied to Real Estate Funds
Model dividend policy and distributions under various scenarios
Analyse risk using metrics, tables and charts
Use risk analysis techniques to further define fund structures

Who is this course for?

Private Equity Fund Managers
Investment consultants and Financial advisers working with Fund Managers
Finance professionals supporting institutional Investors
Private Bankers and Family office representatives
Real Estate professionals looking to expand their knowledge in corporate finance
Recent Graduates interested in learning how to model private equity deals

Day One

Understanding a Private Equity Fund Model

Layout and key elements of a PE Model
Private equity market and strategies
Understanding the deal structure and interested parties
Understanding the capital structure
Review of the key debt instruments
Review of the key equity instruments (special case of Management Buyout)

Fund valuation methods

The multiples approach to valuation
Discounted Cash Flow (DCF), modelling and core concepts
Private Equity performance metrics
Pre-money vs Post-money valuation
Special Cases

Review of accounting principles

Balance Sheet: Real Estate Valuations and Debt
Profit & Loss: Capital Allowances
Cash Flow statement: Escrow Accounts and Distributions

Day Two

Modelling Fund Dynamics, Drivers and Forecasting

Forecast of revenue and cost drivers
Indirect costs and historical ratios in the working capital schedule
Amortization/Depreciation schedule and capital expenditures
Debt schedule and the cash available to service the debt
Modelling dividend distributions
Shareholder’s equity schedule and completing the income statement
Modelling and Analysing Risk

Performance Analysis

Benchmarking returns within Real Estate and across industries
Analyse leverage and coverage ratios
Calculating Equity Returns Using EBITDA or Net Income

Course Details

Number of days: Two days
Delivery: In-Person & Virtual
Course type: Financial Modelling
Course level:
Pre-requisite: Real Estate Analyst