DRAFT 10/11/11 SUBJECT TO CHANGE Private Equity and Entrepreneurship in Africa Professors Paul Tierney and Murray Low

Fall 2011 All sessions held on Monday, 9 12:15 in 140 Uris Hall Entrepreneurship and Private Equity in Africa (EA) examines how entrepreneurs and those who invest in them design, negotiate and execute ventures that make use of resources and opportunities in the challenging environments of Northern and sub-Saharan Africa. The Africa context will be compared and contrasted with that of other emerging markets and the developed world. The course has two specific learning objectives which we frame as questions: First, what does it take to be a successful entrepreneur in Africa? We will place significant emphasis on the challenges of raising financing. Second, what does it take to run a successful venture capital or private equity fund in Africa? We will view these funds themselves as entrepreneurial ventures. Through case studies, lectures and guest speakers, students learn about successful and unsuccessful entrepreneurs and financiers. Students work in teams to complete a major project. The project can be either a consulting assignment negotiated with an African entrepreneur or investment company, or a case study about an entrepreneur or investment company that can be used for teaching purposes. The best of the completed case studies will be edited by Columbia Case Works and will be made available to other business schools in Africa and the west. Development of African case studies is an important part of Columbias African Initiative. Students choosing to the case study option will also write a confidential memo to the entrepreneur or investment company providing observations and advice based upon their research. All students are expected to travel to Africa at their own expense for two weeks during the winter break to conduct field research. A comprehensive draft of the final project is due December 1. The final project is due late January 2012. During the semester, students are requested to keep a journal and record insights from each of the speakers on the two key questions: 1) What does it take to be a successful entrepreneur in Africa? 2) What does it take to run a successful venture capital or private equity fund in

Africa? At the end of the term (12/12/2011) students are required to submit an individual 2-3 page paper that summarizes key learnings.

Grading:
Class Participation: 40% Final review paper & quizzes: 20% Final project: 40% + Beatles (mutual evaluation of team members contribution to final project)

Session 1
9/12 Part One Introduction and Overview Review of potential projects Lecture: Reading: Countries Part Two Case Study: Continental Outdoor Case Study Investment Proposal Outdoor Advertising What is Private Equity in Africa? A Note on Private Equity in Developing

Guest Speaker: Mark Hartmann, CIO Helios Capital African PE Fund

Session 2
9/19 Part One Project Selection Lecture: Reading: Private Equity Terms and Structure

Private Equity Glossary A Note on Private Equity Partnership Agreements

Case Study: Part Two

Computer Warehouse

Guest Speaker: Kofi Bucknor, Managing Partner Kingdom Zephyr Africa Management

Session 3
9/26 Part One Lecture: Fundraising Process Readings: Process Case Study: Part Two Case Study: Equity Bank: The Real Thing? Metalex Private Equity Securities and the A Note on Private Equity Securities A Note on the Private Equity Fundraising

Guest Speaker: James Mwangi, Managing Director & CEO Equity Bank Limited

Session 4
10/3 Part One Teams meet individually with Professors. Balance of class time to be used by teams for project work Part Two Case Study: Imara/Batian PE for SMEs

Guest Speaker: Mark Tunmer, CEO Imara Holdings

Session 5
10/10 Part One Guest Speaker: Ram Karuturi, CEO Karuturi Global Part Two Reading: Deals A Note on Valuation in Private Equity Settings Case Study: Karma Oil A Note on Valuation of Venture Capital

Guest Speaker: Jeff Harris, Partner Warburg Pincus

Session 6
10/17 Part One Lecture: Reading: Process Case Study: Part Two Update on Student Projects Due Diligence Helios Investment Partners Investment Banana Investments

Session 7
10/31 Part One Case Study: Business Reading: Express: How Work? Donor? Myths East of Africa (and West of China): Chinese in Africa The Dragons Gift Chapter 5: Orient Does Chinese Aid and Engagement The Dragons Gift Chapter 11: Rogue and Realities

Guest Speaker: Jack Perkowski Founder & Managing Partner JFP Holdings Part Two Case Study: Data Bank

Guest Speaker: Ken Ofori-Atta MD, Data Bank

Session 8
11/14 Part One Lecture: Reading: Private Equity / Cross-Over Investors A Note on Venture Leasing Industry

Guest Speaker: Bruce McNamer Pres. & CEO TechnoServe, Inc. Part Two Guest Speaker: Joe Kawkabani MD, Algebra Capital

Session 9
11/21 Part One Case Study: Mezzanine Fund Part Two Case Study: Aureos Makalani Growing a South African

Guest Speaker: Sev Vettivetpillai, CEO Aureos Capital

Session 10
11/28 Part One Student Presentations Part Two Case Study: Gray Security

Guest Speaker: Tom Barry Pres. & CEO Zephyr Management

Session 11
12/05 Part One Case Study: Part Two Student Presentations Busy Internet

Session 12
12/12 Part One Guest Speaker: Valentine Chitalu Chairman, MTN (Zambia),

Lomax & Phatisa Part Two Student Presentations